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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: November 8, 1999
Washington Mutual, Inc.
(Exact Name of Registrant as specified in its charter)
Washington 1-14667 91-1653725
(State or Other Jurisdiction of (Commission File (I.R.S. Employer
Incorporation or Organization) Number) Identification No.)
1201 Third Avenue, Seattle, Washington 98101
(Address of Principal Executive Offices) (Zip Code)
(206) 461-2000
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
On November 8, 1999, Washington Mutual, Inc. issued a press release announcing
2000-2004 financial targets and new business initiatives at an investors
conference in New York.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits
99.1 Press release dated November 8, 1999.
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SIGNATURES
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 hereunto duly authorized.
WASHINGTON MUTUAL, INC.
Date: November 8, 1999 By: /s/ Fay L. Chapman
-----------------------
Fay L. Chapman
Senior Executive Vice President
and General Counsel
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EXHIBIT 99.1
[WASHINGTON MUTUAL LETTERHEAD]
NEWS RELEASE
Media Contact: Libby Hutchinson
(425) 269-3452 (Mobile)
(206) 461-2484
1-800-228-WAMU (9268)
Investor Contact: JoAnn DeGrande November 8, 1999
(206) 461-3186 FOR IMMEDIATE RELEASE
WASHINGTON MUTUAL TELLS INVESTORS, "WHAT'S NEXT?"
COMPANY UNVEILS 2000-2004 FINANCIAL TARGETS AND
ANNOUNCES NEW BUSINESS INITIATIVES AT INVESTORS CONFERENCE
SEATTLE -- Washington Mutual, Inc. (NYSE: WM) today detailed plans to
diversify its business over the next five years and announced several new
business initiatives at an upbeat management presentation held at the World
Trade Center in New York.
"The past five years for Washington Mutual were highlighted by rapid
growth as we built one of the nation's premier banking franchises," Washington
Mutual Chairman, President and CEO Kerry Killinger told investors. "Our focus
for the next five years will be diversifying our balance sheet and revenue
sources, developing new and innovative ways to reach new markets and profitably
expand all of our business lines, and maximizing the power of our franchise to
create additional shareholder value."
2000-2004 FINANCIAL TARGETS
The company's executive management team announced the revision of
several of the company's key financial targets as Washington Mutual enters the
new millennium.
The revised targets and the company's previous financial goals follow:
<TABLE>
<CAPTION>
Target 1995 - 1999 2000 - 2004
- -------- ----------- -----------
<S> <C> <C>
Return on Equity >18% >20%
Operating EPS Growth >15% >13%
Operating Efficiency <50% <45%
Nonperforming Assets/Assets <1% <1%
Return on Common Equity/Assets >5% >5%
</TABLE>
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WASHINGTON MUTUAL - 2
"Washington Mutual has consistently met or exceeded our previous
five-year financial targets while simultaneously and successfully integrating
the operations of American Savings, Great Western and H.F. Ahmanson," Killinger
said. "As our company enters a new era, we're adjusting our key targets to
reflect what we believe to be the kind of performance that will be required of a
premier financial services company of our size in the future.
COMPANY TO FOCUS ON BALANCE SHEET AND REVENUE DIVERSIFICATION
A key focus over the next five years will be re-mixing the balance sheet
with a greater percentage of consumer loans, business and commercial real estate
loans and consumer finance loans. At the end of the third quarter of 1999, these
types of higher-margin assets comprised approximately 25 percent of the
company's $118.8 billion loan portfolio with the balance of the portfolio in
residential mortgages. By the end of 2004, the company expects consumer,
commercial real estate and consumer finance loans to rise to approximately 40
percent of the portfolio as a result of increasing internal origination capacity
as well as potential acquisitions and correspondent lending partnerships with
other originators.
Likewise, Killinger expects the company to increase the percentage of
noninterest income to total income by significantly increasing the number of
fee-generating checking accounts, insurance and securities commissions, and
sales of mortgage loans to the secondary market. "Our business strategy has
generated double-digit growth in noninterest income in recent years, but we
believe that there is still significant untapped potential."
NEW CONCEPT BRANCHES TO DEBUT IN LAS VEGAS THIS SPRING
Deanna Oppenheimer, president of the company's Consumer Banking Group,
announced plans to bring banking - Washington Mutual style - to Las Vegas by
opening of 15 financial centers (branches) in the Spring of 2000. Five
additional locations will open later in the year.
"Las Vegas is a growing, vibrant market and we're excited by the
opportunity to bring our brand of high-touch, personal customer service to
Southern Nevada," Oppenheimer said. "Research shows that nearly one out of every
four individuals in the area are dissatisfied with their current bank and desire
a consumer-friendly alternative. We intend to provide that alternative to Las
Vegas residents."
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WASHINGTON MUTUAL - 3
The Las Vegas expansion will feature a completely new retail-oriented
branch with four distinct sales areas focusing on personal loans, securities and
insurance sales, checking and savings accounts, and home loans. A concierge will
greet patrons at the entry and sales staff will not sit at desks. Instead, they
will come to customers to offer assistance. Customers who wish to shop on their
own can use one of several self-service interactive touch screens. Direct
Internet access will also be available.
In addition, the branch has eliminated linear teller stations in favor
of circular work stations that promote interaction between customers and service
representatives. A children's play area is also available to allow parents to
focus on their banking business.
"We believe the time is long overdue for banks to be a place where
people want to go, rather than a necessity of having to go," Oppenheimer said.
"Our new financial centers are a giant step in the right direction."
E-BUSINESS VENTURE CAPITAL FUND TO BE ESTABLISHED
Craig Tall, vice chair of corporate development, detailed the company's
plans to its own WM Strategic Capital Fund. With initial funding of $150
million, the venture capital fund will be a "search engine" for eBusiness
opportunities for Washington Mutual.
"The fund will serve as a vehicle for equity investments in private,
eBusiness companies that focus on delivering financial products, services or
technologies that can be used by Washington Mutual or our customers," said Tall.
"The capital fund provides an effective way to match investment opportunities
with specific business needs."
Earlier this year, Washington Mutual invested in Seattle-based Keystroke
Financial Inc. As a capital partner, Keystroke provided the technology and
development assistance for Washington Mutual's online mortgage application site,
wamumortgage.com.
COMPANY TO PARTNER WITH ORGANIC, INC.
Craig Davis, president of the Mortgage Banking Group, announced that
Washington Mutual has partnered with San Francisco-based Organic, Inc., to
provide strategic support of online media and marketing for wamumortgage.com,
the company's Internet mortgage lending site.
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WASHINGTON MUTUAL - 4
Organic focuses on building commercial web sites through an extensive
process that includes return on investment-based research and analysis, business
plan development, site engineering and media planning. In addition to Washington
Mutual, Organic's client list includes Compaq, Blockbuster, CDNOW and
DaimlerChrysler.
"Our research shows that those who would apply for a mortgage on the
Internet want a full range of lending products to choose from, backed up by
first-class customer service," Davis said. With the help of the Organic team, we
will bring convenience, security, flexibility and personalized service to the
online mortgage application experience."
CONSUMER FINANCE UNIT TO BE RENAMED
The company also announced that its Aristar consumer finance unit will
change its name to Washington Mutual Finance with the new name and logo
introduced at more than 500 offices throughout the country over the next seven
months. The subsidiary currently does business under a variety of names,
including Blazer Financial, City Finance and Public Finance Corp. "The power of
the Washington Mutual name is indisputable and we look forward to extending the
brand and all that it stands for in our markets," said Craig Chapman, president
and CEO of Washington Mutual Finance.
With a history dating back to 1889, Washington Mutual is the nation's
eighth largest financial services company and provides a diversified line of
products and services to consumers and small- to mid-sized businesses. At Sept.
30, 1999, Washington Mutual and its subsidiaries had consolidated assets of
$180.80 billion. The company operates nearly 2,000 offices throughout the
nation.
# # #
EDITOR'S NOTE: Washington Mutual's press releases are available at no charge
through the company's News On Demand Plus System. For a menu of Washington
Mutual press releases or to retrieve a specific release, call 1-800-329-6236. On
the Internet, press releases may be accessed at
www.businesswire.com/cnn/wamu.htm
