EXHIBIT 99.2
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Slide 1
Lehman Brothers
Financial Services Conference
Kerry Killinger
Chairman and Chief Executive Officer
September 10, 2007
Slide 2
Key Messaging
• WaMu is a leading consumer and small business bank
• Key strategic actions have diversified the business, reduced market risk and lowered expenses
• Top-tier Retail Bank and Card Services businesses deliver the bulk of earnings
• Proactive steps were taken to mitigate an anticipated decline in housing prices; however, current conditions are worsening and will increase near term credit costs
• We are well positioned with strong liquidity and capital to support long-term growth
Slide 3 Vision
To be the national leader in consumer and small business banking
Slide 4
Strategic Actions since end of 2005
• Diversified the business through Providian and CCBI acquisitions
• Opportunistically reduced our balance sheet by $31 billion through the end of Q2 ’07 and repurchased 142 million shares or 14 percent of shares outstanding as of 12/31/05
• Reduced FHLB advances by $47 billion, or approximately 70 percent, through Q2 ‘07
• Sold $2.5 billion of mortgage servicing rights
• Sold our retail mutual fund group, WM Advisors
• Implemented productivity initiatives
- Reduced employee count by over 10,000
- Reduced annualized expense run rate by approximately $560 million (Q4 ’05 vs. Q2 ’07)
Slide 5 Leading Player in All Business Lines
National Rankings Q2 2006 Q2 2007
Retail Banking
Total deposits and retail banking stores 6th 6th
Debit cards outstanding 3rd 4th
Bank credit card issuer1 6th 6th
Commercial Group
Multi-family portfolio holdings 1st 1st
Home Loans
Home lending originations2 3rd 6th
Home lending servicing2 3rd 5th
Home equity loans 5th 4th
1 Nilson Report, 1/07, 2006 ranking
2 Inside Mortgage Finance
Slide 6 Diversified Business Model
Retail Banking
Card Services
Commercial Group
Home Loans
Slide 7
Diversification of Revenue
2005
Home Loans Commercial Group Card Services Retail Banking Portfolio Management Retail Banking Noninterest Income Retail Banking net interest income without portfolio management
$4,411 $926 $997 $1,033 $2,539 $3,898
YTD 6/30/07
Home Loans Commercial Group Card Services Retail Banking Portfolio Management Retail Banking noninterest income Retail Banking net interest income without portfolio management
$1,013 $471 $2,181 $374 $1,567 $2,188
Slide 8 Strong and Diversified Funding Sources
$316.3 billion as of 12/31/05
Retail Deposits 44% Retail Broker Deposits 2% Institutional Brokered Deposits 7% Commercial & Escrow Deposits 7% FHLB Advances 22% Liquidity Funds 7% Other Borrowings 8% Other Liabilities 3%
$288.0 billion as of 6/30/07
Retail Deposits 51% Retail Broker Deposits 6% Institutional Brokered Deposits 4% Commercial & Escrow Deposits 10% FHLB Advances 7% Liquid Funds(1) 4%Covered Bonds 3%Other Borrowings 11% Other Liabilities 4%
(1) Includes Federal Funds purchased, commercial paper and securities sold under agreements to repurchase
Slide 9
GDP and Housing Price Indices1
GDP % change Case-Shiller Index OFHEO Index
1987q1 | 87Q1 | 1987 | 2.63% |
| 8.39% |
1987q2 | 87Q2 |
| 4.40% |
| 8.05% |
1987q3 | 87Q3 |
| 3.63% |
| 7.75% |
1987q4 | 87Q4 |
| 6.99% |
| 6.78% |
1988q1 | 88Q1 | 1988 | 1.96% | 11.71% | 6.34% |
1988q2 | 88Q2 |
| 5.09% | 10.70% | 6.58% |
1988q3 | 88Q3 |
| 2.14% | 10.87% | 6.06% |
1988q4 | 88Q4 |
| 5.28% | 10.68% | 6.18% |
1989q1 | 89Q1 | 1989 | 4.06% | 10.89% | 5.70% |
1989q2 | 89Q2 |
| 2.62% | 10.94% | 4.89% |
1989q3 | 89Q3 |
| 2.85% | 8.41% | 6.15% |
1989q4 | 89Q4 |
| 1.02% | 6.67% | 6.03% |
1990q1 | 90Q1 | 1990 | 4.62% | 4.67% | 5.05% |
1990q2 | 90Q2 |
| 1.02% | 1.93% | 3.63% |
1990q3 | 90Q3 |
| 0.03% | -0.26% | 1.65% |
1990q4 | 90Q4 |
| -3.02% | -2.80% | 0.24% |
1991q1 | 91Q1 | 1991 | -2.04% | -5.34% | 0.62% |
1991q2 | 91Q2 |
| 2.60% | -5.71% | 1.10% |
1991q3 | 91Q3 |
| 1.93% | -3.64% | 0.73% |
1991q4 | 91Q4 |
| 1.88% | -2.22% | 2.59% |
1992q1 | 92Q1 | 1992 | 4.14% | -0.32% | 2.48% |
1992q2 | 92Q2 |
| 3.86% | 0.31% | 1.81% |
1992q3 | 92Q3 |
| 3.92% | -1.15% | 2.86% |
1992q4 | 92Q4 |
| 4.41% | -1.60% | 1.89% |
1993q1 | 93Q1 | 1993 | 0.48% | -1.64% | 1.06% |
1993q2 | 93Q2 |
| 2.03% | -1.95% | 2.13% |
1993q3 | 93Q3 |
| 2.05% | -1.72% | 1.71% |
1993q4 | 93Q4 |
| 5.38% | -1.41% | 2.08% |
1994q1 | 94Q1 | 1994 | 4.07% | -0.73% | 2.71% |
1994q2 | 94Q2 |
| 5.22% | 0.52% | 2.20% |
1994q3 | 94Q3 |
| 2.24% | 1.28% | 1.86% |
1994q4 | 94Q4 |
| 4.69% | 1.65% | 0.84% |
1995q1 | 95Q1 | 1995 | 1.11% | 1.22% | 0.74% |
1995q2 | 95Q2 |
| 0.72% | 0.15% | 2.16% |
1995q3 | 95Q3 |
| 3.26% | -0.19% | 3.48% |
1995q4 | 95Q4 |
| 2.93% | -0.36% | 4.52% |
1996q1 | 96Q1 | 1996 | 2.82% | -0.15% | 5.42% |
1996q2 | 96Q2 |
| 6.56% | 0.89% | 3.72% |
1996q3 | 96Q3 |
| 3.35% | 1.15% | 2.52% |
1996q4 | 96Q4 |
| 4.68% | 1.65% | 2.61% |
1997q1 | 97Q1 | 1997 | 3.09% | 2.12% | 2.29% |
1997q2 | 97Q2 |
| 6.08% | 2.79% | 3.00% |
1997q3 | 97Q3 |
| 4.98% | 3.84% | 4.12% |
1997q4 | 97Q4 |
| 2.95% | 4.86% | 4.59% |
1998q1 | 98Q1 | 1998 | 4.43% | 6.55% | 5.22% |
1998q2 | 98Q2 |
| 2.65% | 7.99% | 5.20% |
1998q3 | 98Q3 |
| 4.61% | 9.39% | 5.09% |
1998q4 | 98Q4 |
| 6.08% | 9.45% | 4.98% |
1999q1 | 99Q1 | 1999 | 3.40% | 8.87% | 4.44% |
1999q2 | 99Q2 |
| 3.31% | 9.26% | 5.02% |
1999q3 | 99Q3 |
| 4.67% | 9.32% | 5.18% |
1999q4 | 99Q4 |
| 7.11% | 10.23% | 5.10% |
2000q1 | 00Q1 | 2000 | 1.01% | 11.48% | 6.20% |
2000q2 | 00Q2 |
| 6.28% | 12.97% | 6.57% |
2000q3 | 00Q3 |
| -0.46% | 13.17% | 7.00% |
2000q4 | 00Q4 |
| 2.08% | 13.80% | 7.54% |
2001q1 | 01Q1 | 2001 | -0.49% | 14.41% | 8.09% |
2001q2 | 01Q2 |
| 1.23% | 12.30% | 8.18% |
2001q3 | 01Q3 |
| -1.41% | 10.88% | 7.88% |
2001q4 | 01Q4 |
| 1.58% | 9.76% | 7.53% |
2002q1 | 02Q1 | 2002 | 2.72% | 7.95% | 6.51% |
2002q2 | 02Q2 |
| 2.18% | 9.56% | 6.59% |
2002q3 | 02Q3 |
| 2.36% | 12.25% | 7.13% |
2002q4 | 02Q4 |
| 0.20% | 14.20% | 7.40% |
2003q1 | 03Q1 | 2003 | 1.20% | 15.23% | 7.10% |
2003q2 | 03Q2 |
| 3.42% | 13.63% | 6.47% |
2003q3 | 03Q3 |
| 7.29% | 12.25% | 5.99% |
2003q4 | 03Q4 |
| 2.63% | 12.98% | 7.77% |
2004q1 | 04Q1 | 2004 | 2.93% | 14.92% | 8.22% |
2004q2 | 04Q2 |
| 3.44% | 18.49% | 9.79% |
2004q3 | 04Q3 |
| 3.55% | 20.29% | 12.63% |
2004q4 | 04Q4 |
| 2.52% | 19.15% | 11.76% |
|
| 2005 |
|
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|
Case Shiller (10 metro composite) Quarterly(Seasonally adjusted annual rates)
GDP in billions of chained 2000 dollars
Jan-87 | 62.82 |
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Jan-87 | 62.82 |
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| Quarterly GDP in billions | (Seasonally adjusted annual rates) of chained 2000 dollars |
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Feb-87 | 63.39 |
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|
| 1987q1 | 6365 |
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Mar-87 | 63.87 | 63.4 | 63.36 |
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| 1987q2 | 6435 |
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Apr-87 | 64.57 |
| 65.57 |
|
| 1987q3 | 6493.4 |
|
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May-87 | 65.56 |
| 68.22 |
|
| 1987q4 | 6606.8 |
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Jun-87 | 66.59 | 65.6 | 69.80 |
|
| 1988q1 | 6639.1 |
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Jul-87 | 67.54 |
| 70.78 | 11.71% |
| 1988q2 | 6723.5 |
|
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Aug-87 | 68.25 |
| 72.59 | 10.70% |
| 1988q3 | 6759.4 |
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Sep-87 | 68.87 | 68.2 | 75.64 | 10.87% |
| 1988q4 | 6848.6 |
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Oct-87 | 69.42 |
| 77.25 | 10.68% |
| 1989q1 | 6918.1 |
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Nov-87 | 69.76 |
| 78.49 | 10.89% |
| 1989q2 | 6963.5 |
|
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Dec-87 | 70.22 | 69.8 | 80.53 | 10.94% |
| 1989q3 | 7013.1 |
|
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Jan-88 | 70.45 |
| 82.00 | 8.41% |
| 1989q4 | 7030.9 |
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Feb-88 | 70.77 |
| 82.41 | 6.67% |
| 1990q1 | 7112.1 |
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Mar-88 | 71.12 | 70.8 | 82.15 | 4.67% |
| 1990q2 | 7130.3 |
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Apr-88 | 71.65 |
| 82.08 | 1.93% |
| 1990q3 | 7130.8 |
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May-88 | 72.48 |
| 81.78 | -0.26% |
| 1990q4 | 7076.9 |
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Jun-88 | 73.63 | 72.6 | 80.10 | -2.80% |
| 1991q1 | 7040.8 |
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Jul-88 | 74.81 |
| 77.77 | -5.34% |
| 1991q2 | 7086.5 |
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Aug-88 | 75.70 |
| 77.40 | -5.71% |
| 1991q3 | 7120.7 |
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Sep-88 | 76.40 | 75.6 | 78.81 | -3.64% |
| 1991q4 | 7154.1 |
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Oct-88 | 76.90 |
| 78.33 | -2.22% |
| 1992q1 | 7228.2 |
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Nov-88 | 77.28 |
| 77.52 | -0.32% |
| 1992q2 | 7297.9 |
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Dec-88 | 77.58 | 77.3 | 77.64 | 0.31% |
| 1992q3 | 7369.5 |
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Jan-89 | 77.99 |
| 77.90 | -1.15% |
| 1992q4 | 7450.7 |
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Feb-89 | 78.36 |
| 77.07 | -1.60% |
| 1993q1 | 7459.7 |
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Mar-89 | 79.12 | 78.5 | 76.25 | -1.64% |
| 1993q2 | 7497.5 |
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Apr-89 | 79.83 |
| 76.13 | -1.95% |
| 1993q3 | 7536 |
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May-89 | 80.52 |
| 76.56 | -1.72% |
| 1993q4 | 7637.4 |
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Jun-89 | 81.24 | 80.5 | 75.98 | -1.41% |
| 1994q1 | 7715.1 |
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Jul-89 | 81.66 |
| 75.69 | -0.73% |
| 1994q2 | 7815.7 |
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Aug-89 | 82.08 |
| 76.52 | 0.52% |
| 1994q3 | 7859.5 |
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Sep-89 | 82.25 | 82.0 | 77.54 | 1.28% |
| 1994q4 | 7951.6 |
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Oct-89 | 82.44 |
| 77.24 | 1.65% |
| 1995q1 | 7973.7 |
|
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Nov-89 | 82.43 |
| 76.61 | 1.22% |
| 1995q2 | 7988 |
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Dec-89 | 82.35 | 82.4 | 76.63 | 0.15% |
| 1995q3 | 8053.1 |
|
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Jan-90 | 82.29 |
| 77.39 | -0.19% |
| 1995q4 | 8112 |
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Feb-90 | 82.15 |
| 76.96 | -0.36% |
| 1996q1 | 8169.2 |
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Mar-90 | 82.02 | 82.2 | 76.50 | -0.15% |
| 1996q2 | 8303.1 |
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Apr-90 | 82.05 |
| 77.32 | 0.89% |
| 1996q3 | 8372.7 |
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May-90 | 82.01 |
| 78.28 | 1.15% |
| 1996q4 | 8470.6 |
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Jun-90 | 82.19 | 82.1 | 78.24 | 1.65% |
| 1997q1 | 8536.1 |
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Jul-90 | 82.10 |
| 78.12 | 2.12% |
| 1997q2 | 8665.8 |
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Aug-90 | 81.86 |
| 79.48 | 2.79% |
| 1997q3 | 8773.7 |
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Sep-90 | 81.39 | 81.8 | 81.28 | 3.84% |
| 1997q4 | 8838.4 |
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Oct-90 | 80.84 |
| 82.04 | 4.86% |
| 1998q1 | 8936.2 |
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Nov-90 | 80.09 |
| 83.23 | 6.55% |
| 1998q2 | 8995.3 |
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Dec-90 | 79.38 | 80.1 | 85.83 | 7.99% |
| 1998q3 | 9098.9 |
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Jan-91 | 78.53 |
| 88.91 | 9.39% |
| 1998q4 | 9237.1 |
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Feb-91 | 77.77 |
| 89.79 | 9.45% |
| 1999q1 | 9315.5 |
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Mar-91 | 77.00 | 77.8 | 90.62 | 8.87% |
| 1999q2 | 9392.6 |
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Apr-91 | 76.86 |
| 93.78 | 9.26% |
| 1999q3 | 9502.2 |
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May-91 | 77.31 |
| 97.19 | 9.32% |
| 1999q4 | 9671.1 |
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Jun-91 | 78.02 | 77.4 | 98.98 | 10.23% |
| 2000q1 | 9695.6 |
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Jul-91 | 78.61 |
| 101.02 | 11.48% |
| 2000q2 | 9847.9 |
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Aug-91 | 78.93 |
| 105.94 | 12.97% |
| 2000q3 | 9836.6 |
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Sep-91 | 78.88 | 78.8 | 110.00 | 13.17% |
| 2000q4 | 9887.7 |
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Oct-91 | 78.68 |
| 112.64 | 13.80% |
| 2001q1 | 9875.6 |
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Nov-91 | 78.31 |
| 115.57 | 14.41% |
| 2001q2 | 9905.9 |
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Dec-91 | 77.99 | 78.3 | 118.97 | 12.30% |
| 2001q3 | 9871.1 |
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Jan-92 | 77.74 |
| 121.96 | 10.88% |
| 2001q4 | 9910 |
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Feb-92 | 77.51 |
| 123.63 | 9.76% |
| 2002q1 | 9977.3 |
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Mar-92 | 77.31 | 77.5 | 124.77 | 7.95% |
| 2002q2 | 10031.6 |
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Apr-92 | 77.36 |
| 130.35 | 9.56% |
| 2002q3 | 10090.7 |
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May-92 | 77.62 |
| 136.90 | 12.25% |
| 2002q4 | 10095.8 |
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Jun-92 | 77.94 | 77.6 | 141.19 | 14.20% |
| 2003q1 | 10126 |
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Jul-92 | 77.95 |
| 143.76 | 15.23% |
| 2003q2 | 10212.7 |
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Aug-92 | 77.99 |
| 148.11 | 13.63% |
| 2003q3 | 10398.7 |
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Sep-92 | 77.76 | 77.9 | 153.68 | 12.25% |
| 2003q4 | 10467 |
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Oct-92 | 77.45 |
| 159.51 | 12.98% |
| 2004q1 | 10543.6 |
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Nov-92 | 77.09 |
| 165.21 | 14.92% |
| 2004q2 | 10634.2 |
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Dec-92 | 76.68 | 77.1 | 175.49 | 18.49% |
| 2004q3 | 10728.7 |
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Jan-93 | 76.56 |
| 184.85 | 20.29% |
| 2004q4 | 10796.4 |
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Feb-93 | 76.28 |
| 190.05 | 19.15% |
| 2005q1 | 10878.4 |
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Mar-93 | 75.91 | 76.3 | 196.14 | 18.72% |
| 2005q2 | 10954.1 |
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Apr-93 | 75.83 |
| 205.71 | 17.22% |
| 2005q3 | 11074.3 |
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May-93 | 76.04 |
| 214.18 | 15.87% |
| 2005q4 | 11107.2 |
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Jun-93 | 76.51 | 76.1 | 220.60 | 16.07% |
| 2006q1 | 11238.7 |
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Jul-93 | 76.61 |
| 223.20 | 13.79% |
| 2006q2 | 11306.7 |
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Aug-93 | 76.59 |
| 225.76 | 9.75% |
| 2006q3 | 11336.7 |
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Sep-93 | 76.47 | 76.6 | 225.60 | 5.33% |
| 2006q4 | 11395.5 |
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Oct-93 | 76.22 |
| 223.69 | 1.40% |
| 2007q1 | 11412.6 |
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Nov-93 | 76.02 |
| 220.48 | -1.22% |
| 2007q2 | 11523.8 |
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Dec-93 | 75.71 | 76.0 | 218.10 | -3.39% |
| 1967q3 | 3491.8 |
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Jan-94 | 75.71 |
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| 1967q4 | 3518.2 |
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Feb-94 | 75.63 |
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| 1968q1 | 3590.7 |
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Mar-94 | 75.73 | 75.7 |
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| 1968q2 | 3651.6 |
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Apr-94 | 76.03 |
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| 1968q3 | 3676.5 |
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May-94 | 76.49 |
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| 1968q4 | 3692 |
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Jun-94 | 77.04 | 76.5 |
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| 1969q1 | 3750.2 |
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Jul-94 | 77.40 |
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| 1969q2 | 3760.9 |
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Aug-94 | 77.64 |
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| 1969q3 | 3784.2 |
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Sep-94 | 77.57 | 77.5 |
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| 1969q4 | 3766.3 |
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Oct-94 | 77.50 |
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| 1970q1 | 3760 |
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Nov-94 | 77.23 |
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| 1970q2 | 3767.1 |
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Dec-94 | 76.99 | 77.2 |
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| 1970q3 | 3800.5 |
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Jan-95 | 76.82 |
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| 1970q4 | 3759.8 |
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Feb-95 | 76.64 |
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| 1971q1 | 3864.1 |
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Mar-95 | 76.38 | 76.6 |
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| 1971q2 | 3885.9 |
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Apr-95 | 76.36 |
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| 1971q3 | 3916.7 |
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May-95 | 76.60 |
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| 1971q4 | 3927.9 |
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Jun-95 | 76.94 | 76.6 |
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| 1972q1 | 3997.7 |
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Jul-95 | 77.26 |
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| 1972q2 | 4092.1 |
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Aug-95 | 77.47 |
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| 1972q3 | 4131.1 |
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Sep-95 | 77.43 | 77.4 |
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| 1972q4 | 4198.7 |
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Oct-95 | 77.26 |
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| 1973q1 | 4305.3 |
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Nov-95 | 76.95 |
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| 1973q2 | 4355.1 |
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Dec-95 | 76.68 | 77.0 |
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| 1973q3 | 4331.9 |
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Jan-96 | 76.56 |
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| 1973q4 | 4373.3 |
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Feb-96 | 76.44 |
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| 1974q1 | 4335.4 |
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Mar-96 | 76.49 | 76.5 |
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| 1974q2 | 4347.9 |
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Apr-96 | 76.84 |
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| 1974q3 | 4305.8 |
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May-96 | 77.33 |
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| 1974q4 | 4288.9 |
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Jun-96 | 77.78 | 77.3 |
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| 1975q1 | 4237.6 |
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Jul-96 | 78.10 |
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| 1975q2 | 4268.6 |
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Aug-96 | 78.36 |
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| 1975q3 | 4340.9 |
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Sep-96 | 78.37 | 78.3 |
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| 1975q4 | 4397.8 |
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Oct-96 | 78.36 |
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| 1976q1 | 4496.8 |
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Nov-96 | 78.23 |
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| 1976q2 | 4530.3 |
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Dec-96 | 78.12 | 78.2 |
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| 1976q3 | 4552 |
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Jan-97 | 78.08 |
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| 1976q4 | 4584.6 |
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Feb-97 | 77.98 |
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| 1977q1 | 4640 |
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Mar-97 | 78.29 | 78.1 |
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| 1977q2 | 4731.1 |
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Apr-97 | 78.76 |
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|
|
| 1977q3 | 4815.8 |
|
|
|
May-97 | 79.42 |
|
|
|
| 1977q4 | 4815.3 |
|
|
|
Jun-97 | 80.25 | 79.5 |
|
|
| 1978q1 | 4830.8 |
|
|
|
Jul-97 | 80.86 |
|
|
|
| 1978q2 | 5021.2 |
|
|
|
Aug-97 | 81.41 |
|
|
|
| 1978q3 | 5070.7 |
|
|
|
Sep-97 | 81.57 | 81.3 |
|
|
| 1978q4 | 5137.4 |
|
|
|
Oct-97 | 81.83 |
|
|
|
| 1979q1 | 5147.4 |
|
|
|
Nov-97 | 81.98 |
|
|
|
| 1979q2 | 5152.3 |
|
|
|
Dec-97 | 82.31 | 82.0 |
|
|
| 1979q3 | 5189.4 |
|
|
|
Jan-98 | 82.70 |
|
|
|
| 1979q4 | 5204.7 |
|
|
|
Feb-98 | 83.13 |
|
|
|
| 1980q1 | 5221.3 |
|
|
|
Mar-98 | 83.87 | 83.2 |
|
|
| 1980q2 | 5115.9 |
|
|
|
Apr-98 | 84.69 |
|
|
|
| 1980q3 | 5107.4 |
|
|
|
May-98 | 85.77 |
|
|
|
| 1980q4 | 5202.1 |
|
|
|
Jun-98 | 87.03 | 85.8 |
|
|
| 1981q1 | 5307.5 |
|
|
|
Jul-98 | 88.14 |
|
|
|
| 1981q2 | 5266.1 |
|
|
|
Aug-98 | 89.01 |
|
|
|
| 1981q3 | 5329.8 |
|
|
|
Sep-98 | 89.58 | 88.9 |
|
|
| 1981q4 | 5263.4 |
|
|
|
Oct-98 | 89.80 |
|
|
|
| 1982q1 | 5177.1 |
|
|
|
Nov-98 | 89.76 |
|
|
|
| 1982q2 | 5204.9 |
|
|
|
Dec-98 | 89.82 | 89.8 |
|
|
| 1982q3 | 5185.2 |
|
|
|
Jan-99 | 90.06 |
|
|
|
| 1982q4 | 5189.8 |
|
|
|
Feb-99 | 90.48 |
|
|
|
| 1983q1 | 5253.8 |
|
|
|
Mar-99 | 91.31 | 90.6 |
|
|
| 1983q2 | 5372.3 |
|
|
|
Apr-99 | 92.55 |
|
|
|
| 1983q3 | 5478.4 |
|
|
|
May-99 | 93.69 |
|
|
|
| 1983q4 | 5590.5 |
|
|
|
Jun-99 | 95.10 | 93.8 |
|
|
| 1984q1 | 5699.8 |
|
|
|
Jul-99 | 96.28 |
|
|
|
| 1984q2 | 5797.9 |
|
|
|
Aug-99 | 97.31 |
|
|
|
| 1984q3 | 5854.3 |
|
|
|
Sep-99 | 97.99 | 97.2 |
|
|
| 1984q4 | 5902.4 |
|
|
|
Oct-99 | 98.48 |
|
|
|
| 1985q1 | 5956.9 |
|
|
|
Nov-99 | 98.94 |
|
|
|
| 1985q2 | 6007.8 |
|
|
|
Dec-99 | 99.51 | 99.0 |
|
|
| 1985q3 | 6101.7 |
|
|
|
Jan-00 | 100.00 |
|
|
|
| 1985q4 | 6148.6 |
|
|
|
Feb-00 | 100.81 |
|
|
|
| 1986q1 | 6207.4 |
|
|
|
Mar-00 | 102.24 | 101.0 |
|
|
| 1986q2 | 6232 |
|
|
|
Apr-00 | 104.01 |
|
|
|
| 1986q3 | 6291.7 |
|
|
|
May-00 | 105.98 |
|
|
|
| 1986q4 | 6323.4 |
|
|
|
Jun-00 | 107.83 | 105.9 |
|
|
|
|
|
|
|
|
Jul-00 | 109.02 |
|
|
|
|
|
|
|
|
|
Aug-00 | 110.07 |
|
|
|
|
|
|
|
|
|
Sep-00 | 110.90 | 110.0 |
|
|
|
|
|
|
|
|
Oct-00 | 111.75 |
|
|
|
|
|
|
|
|
|
Nov-00 | 112.60 |
|
|
|
|
|
|
|
|
|
Dec-00 | 113.56 | 112.6 |
|
|
|
|
|
|
|
|
Jan-01 | 114.58 |
|
|
|
|
|
|
|
|
|
Feb-01 | 115.45 |
|
|
|
|
|
|
|
|
|
Mar-01 | 116.69 | 115.6 |
|
|
|
|
|
|
|
|
Apr-01 | 117.94 |
|
|
|
|
|
|
|
|
|
May-01 | 118.94 |
|
|
|
|
|
|
|
|
|
Jun-01 | 120.03 | 119.0 |
|
|
|
|
|
|
|
|
Jul-01 | 121.01 |
|
|
|
|
|
|
|
|
|
Aug-01 | 121.99 |
|
|
|
|
|
|
|
|
|
Sep-01 | 122.89 | 122.0 |
|
|
|
|
|
|
|
|
Oct-01 | 123.46 |
|
|
|
|
|
|
|
|
|
Nov-01 | 123.78 |
|
|
|
|
|
|
|
|
|
Dec-01 | 123.64 | 123.6 |
|
|
|
|
|
|
|
|
Jan-02 | 123.93 |
|
|
|
|
|
|
|
|
|
Feb-02 | 124.45 |
|
|
|
|
|
|
|
|
|
Mar-02 | 125.92 | 124.8 |
|
|
|
|
|
|
|
|
Apr-02 | 127.95 |
|
|
|
|
|
|
|
|
|
May-02 | 130.33 |
|
|
|
|
|
|
|
|
|
Jun-02 | 132.76 | 130.3 |
|
|
|
|
|
|
|
|
Jul-02 | 135.04 |
|
|
|
|
|
|
|
|
|
Aug-02 | 137.04 |
|
|
|
|
|
|
|
|
|
Sep-02 | 138.62 | 136.9 |
|
|
|
|
|
|
|
|
Oct-02 | 140.12 |
|
|
|
|
|
|
|
|
|
Nov-02 | 141.26 |
|
|
|
|
|
|
|
|
|
Dec-02 | 142.18 | 141.2 |
|
|
|
|
|
|
|
|
Jan-03 | 142.86 |
|
|
|
|
|
|
|
|
|
Feb-03 | 143.59 |
|
|
|
|
|
|
|
|
|
Mar-03 | 144.84 | 143.8 |
|
|
|
|
|
|
|
|
Apr-03 | 146.45 |
|
|
|
|
|
|
|
|
|
May-03 | 148.17 |
|
|
|
|
|
|
|
|
|
Jun-03 | 149.70 | 148.1 |
|
|
|
|
|
|
|
|
Jul-03 | 151.65 |
|
|
|
|
|
|
|
|
|
Aug-03 | 153.61 |
|
|
|
|
|
|
|
|
|
Sep-03 | 155.77 | 153.7 |
|
|
|
|
|
|
|
|
Oct-03 | 157.71 |
|
|
|
|
|
|
|
|
|
Nov-03 | 159.55 |
|
|
|
|
|
|
|
|
|
Dec-03 | 161.27 | 159.5 |
|
|
|
|
|
|
|
|
Jan-04 | 162.90 |
|
|
|
|
|
|
|
|
|
Feb-04 | 164.82 |
|
|
|
|
|
|
|
|
|
Mar-04 | 167.91 | 165.2 |
|
|
|
|
|
|
|
|
Apr-04 | 171.58 |
|
|
|
|
|
|
|
|
|
May-04 | 175.43 |
|
|
|
|
|
|
|
|
|
Jun-04 | 179.45 | 175.5 |
|
|
|
|
|
|
|
|
Jul-04 | 182.69 |
|
|
|
|
|
|
|
|
|
Aug-04 | 184.95 |
|
|
|
|
|
|
|
|
|
Sep-04 | 186.91 | 184.9 |
|
|
|
|
|
|
|
|
Oct-04 | 188.65 |
|
|
|
|
|
|
|
|
|
Nov-04 | 190.08 |
|
|
|
|
|
|
|
|
|
Dec-04 | 191.42 | 190.1 |
|
|
|
|
|
|
|
|
Jan-05 | 193.35 |
|
|
|
|
|
|
|
|
|
Feb-05 | 195.87 |
|
|
|
|
|
|
|
|
|
Mar-05 | 199.21 | 196.1 |
|
|
|
|
|
|
|
|
Apr-05 | 202.51 |
|
|
|
|
|
|
|
|
|
May-05 | 205.76 |
|
|
|
|
|
|
|
|
|
Jun-05 | 208.86 | 205.7 |
|
|
|
|
|
|
|
|
Jul-05 | 211.65 |
|
|
|
|
|
|
|
|
|
Aug-05 | 214.13 |
|
|
|
|
|
|
|
|
|
Sep-05 | 216.77 | 214.2 |
|
|
|
|
|
|
|
|
Oct-05 | 219.07 |
|
|
|
|
|
|
|
|
|
Nov-05 | 220.81 |
|
|
|
|
|
|
|
|
|
Dec-05 | 221.91 | 220.6 |
|
|
|
|
|
|
|
|
Jan-06 | 222.46 |
|
|
|
|
|
|
|
|
|
Feb-06 | 223.38 |
|
|
|
|
|
|
|
|
|
Mar-06 | 223.75 | 223.2 |
|
|
|
|
|
|
|
|
Apr-06 | 224.99 |
|
|
|
|
|
|
|
|
|
May-06 | 226.00 |
|
|
|
|
|
|
|
|
|
Jun-06 | 226.29 | 225.8 |
|
|
|
|
|
|
|
|
Jul-06 | 226.17 |
|
|
|
|
|
|
|
|
|
Aug-06 | 225.54 |
|
|
|
|
|
|
|
|
|
Sep-06 | 225.09 | 225.6 |
|
|
|
|
|
|
|
|
Oct-06 | 224.74 |
|
|
|
|
|
|
|
|
|
Nov-06 | 223.94 |
|
|
|
|
|
|
|
|
|
Dec-06 | 222.39 | 223.7 |
|
|
|
|
|
|
|
|
Jan-07 | 221.32 |
|
|
|
|
|
|
|
|
|
Feb-07 | 220.46 |
|
|
|
|
|
|
|
|
|
Mar-07 | 219.66 | 220.5 |
|
|
|
|
|
|
|
|
Apr-07 | 219.00 |
|
|
|
|
|
|
|
|
|
May-07 | 218.23 |
|
|
|
|
|
|
|
|
|
Jun-07 | 217.07 | 218.1 |
|
|
|
|
|
|
|
|
1 Housing price indices represent year-over-year percentage changes
2 GDP % has been annualized
3 S&P/Case-Shiller® Home Price Indices are based on index values
4 OFHEO House Price Index is based on repeat sales index
Slide 10
We Have Been Preparing for a Housing Downturn
• Right-sized home loans business
- Reduced staffing by 28% from Q4 ’05 to Q2 ‘07
- Exited low margin correspondent channel
• Sold virtually all 2004 and 2005 subprime residuals
• Tightened underwriting guidelines across all products
• Limited asset growth due to below target risk adjusted returns
- Reduced loan volume through tighter subprime underwriting guidelines and increased pricing
- Sold majority of Option ARM originations in 2005, 2006 and 2007
- Total assets of $312 billion at 6/30/07 down from $351 billion at 6/30/06
Slide 11
WaMu Exposure to Markets
• No leveraged buyout obligations
• No liquidity extended to third party asset backed commercial paper conduits
• No investment in asset backed commercial paper, structured investment vehicles (SIVs), or similar arbitrage vehicles
• No ABS collateralized debt obligations (CDOs)
• Minimal exposure to subprime mortgage, home equity and Alt-A residuals
• Minimal exposure to warehouse mortgage lending
Slide 12
Credit Quality: Estimated Loan-to-Value
TOTAL PORTFOLIO |
|
|
|
|
| ||
|
|
|
|
| |||
June 30, 2007 | Current FICO | ||||||
>=660 | 620-659 | 580-619 | <580 | Total | |||
Home Loans |
|
|
|
|
| ||
<=80% | 66% | 10% | 6% | 10% | 92% | ||
>80-90% | 4% | 1% | 1% | 1% | 7% | ||
>90% | 1% | 0% | 0% | 0% | 1% | ||
Total | 71% | 11% | 7% | 11% | 100% | ||
Home Equity Loans |
|
|
|
| |||
<=80% | 65% | 5% | 2% | 2% | 74% | ||
>80-90% | 14% | 3% | 1% | 1% | 19% | ||
>90% | 4% | 1% | 1% | 1% | 7% | ||
Total | 83% | 9% | 4% | 4% | 100% |
NONACCRUAL LOANS |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Current FICO | ||||
|
|
|
| >=660 | 620-659 | 580-619 | <580 | Total |
|
| Estimated Current Loan-to-Value | Home Loans |
|
|
|
|
|
|
| <=80% | 4% | 4% | 9% | 68% | 85% | |
|
| >80-90% | 0% | 0% | 1% | 11% | 12% | |
|
| >90% | 0% | 0% | 1% | 2% | 3% | |
|
| Total | 4% | 4% | 11% | 81% | 100% | |
|
| Estimated Current Combined Loan-to-Value |
|
|
|
|
|
|
|
| Home Equity Loans |
|
|
|
|
| |
|
| <=80% | 2% | 3% | 6% | 46% | 57% | |
|
| >80-90% | 0% | 1% | 2% | 21% | 24% | |
|
| >90% | 1% | 0% | 2% | 16% | 19% | |
|
| Total | 3% | 4% | 10% | 83% | 100% |
1 Includes home loans in the subprime mortgage channel
2 Estimated loan-to-value calculations based on OFHEO March 2007 data
3 Includes the HELOC and HEL portfolios and home equity loans in the subprime mortgage channel
4 Estimated combined loan-to-value calculations based on OFHEO March 2007 data
Slide 13
GDP and Housing Price Indices1
|
|
| GDP % change | Case-Shiller Index | OFHEO Index |
1987q1 | 87Q1 | 1987 | 2.63% |
| 8.39% |
1987q2 | 87Q2 |
| 4.40% |
| 8.05% |
1987q3 | 87Q3 |
| 3.63% |
| 7.75% |
1987q4 | 87Q4 |
| 6.99% |
| 6.78% |
1988q1 | 88Q1 | 1988 | 1.96% | 11.71% | 6.34% |
1988q2 | 88Q2 |
| 5.09% | 10.70% | 6.58% |
1988q3 | 88Q3 |
| 2.14% | 10.87% | 6.06% |
1988q4 | 88Q4 |
| 5.28% | 10.68% | 6.18% |
1989q1 | 89Q1 | 1989 | 4.06% | 10.89% | 5.70% |
1989q2 | 89Q2 |
| 2.62% | 10.94% | 4.89% |
1989q3 | 89Q3 |
| 2.85% | 8.41% | 6.15% |
1989q4 | 89Q4 |
| 1.02% | 6.67% | 6.03% |
1990q1 | 90Q1 | 1990 | 4.62% | 4.67% | 5.05% |
1990q2 | 90Q2 |
| 1.02% | 1.93% | 3.63% |
1990q3 | 90Q3 |
| 0.03% | -0.26% | 1.65% |
1990q4 | 90Q4 |
| -3.02% | -2.80% | 0.24% |
1991q1 | 91Q1 | 1991 | -2.04% | -5.34% | 0.62% |
1991q2 | 91Q2 |
| 2.60% | -5.71% | 1.10% |
1991q3 | 91Q3 |
| 1.93% | -3.64% | 0.73% |
1991q4 | 91Q4 |
| 1.88% | -2.22% | 2.59% |
1992q1 | 92Q1 | 1992 | 4.14% | -0.32% | 2.48% |
1992q2 | 92Q2 |
| 3.86% | 0.31% | 1.81% |
1992q3 | 92Q3 |
| 3.92% | -1.15% | 2.86% |
1992q4 | 92Q4 |
| 4.41% | -1.60% | 1.89% |
1993q1 | 93Q1 | 1993 | 0.48% | -1.64% | 1.06% |
1993q2 | 93Q2 |
| 2.03% | -1.95% | 2.13% |
1993q3 | 93Q3 |
| 2.05% | -1.72% | 1.71% |
1993q4 | 93Q4 |
| 5.38% | -1.41% | 2.08% |
1994q1 | 94Q1 | 1994 | 4.07% | -0.73% | 2.71% |
1994q2 | 94Q2 |
| 5.22% | 0.52% | 2.20% |
1994q3 | 94Q3 |
| 2.24% | 1.28% | 1.86% |
1994q4 | 94Q4 |
| 4.69% | 1.65% | 0.84% |
1995q1 | 95Q1 | 1995 | 1.11% | 1.22% | 0.74% |
1995q2 | 95Q2 |
| 0.72% | 0.15% | 2.16% |
1995q3 | 95Q3 |
| 3.26% | -0.19% | 3.48% |
1995q4 | 95Q4 |
| 2.93% | -0.36% | 4.52% |
1996q1 | 96Q1 | 1996 | 2.82% | -0.15% | 5.42% |
1996q2 | 96Q2 |
| 6.56% | 0.89% | 3.72% |
1996q3 | 96Q3 |
| 3.35% | 1.15% | 2.52% |
1996q4 | 96Q4 |
| 4.68% | 1.65% | 2.61% |
1997q1 | 97Q1 | 1997 | 3.09% | 2.12% | 2.29% |
1997q2 | 97Q2 |
| 6.08% | 2.79% | 3.00% |
1997q3 | 97Q3 |
| 4.98% | 3.84% | 4.12% |
1997q4 | 97Q4 |
| 2.95% | 4.86% | 4.59% |
1998q1 | 98Q1 | 1998 | 4.43% | 6.55% | 5.22% |
1998q2 | 98Q2 |
| 2.65% | 7.99% | 5.20% |
1998q3 | 98Q3 |
| 4.61% | 9.39% | 5.09% |
1998q4 | 98Q4 |
| 6.08% | 9.45% | 4.98% |
1999q1 | 99Q1 | 1999 | 3.40% | 8.87% | 4.44% |
1999q2 | 99Q2 |
| 3.31% | 9.26% | 5.02% |
1999q3 | 99Q3 |
| 4.67% | 9.32% | 5.18% |
1999q4 | 99Q4 |
| 7.11% | 10.23% | 5.10% |
2000q1 | 00Q1 | 2000 | 1.01% | 11.48% | 6.20% |
2000q2 | 00Q2 |
| 6.28% | 12.97% | 6.57% |
2000q3 | 00Q3 |
| -0.46% | 13.17% | 7.00% |
2000q4 | 00Q4 |
| 2.08% | 13.80% | 7.54% |
2001q1 | 01Q1 | 2001 | -0.49% | 14.41% | 8.09% |
2001q2 | 01Q2 |
| 1.23% | 12.30% | 8.18% |
2001q3 | 01Q3 |
| -1.41% | 10.88% | 7.88% |
2001q4 | 01Q4 |
| 1.58% | 9.76% | 7.53% |
2002q1 | 02Q1 | 2002 | 2.72% | 7.95% | 6.51% |
2002q2 | 02Q2 |
| 2.18% | 9.56% | 6.59% |
2002q3 | 02Q3 |
| 2.36% | 12.25% | 7.13% |
2002q4 | 02Q4 |
| 0.20% | 14.20% | 7.40% |
2003q1 | 03Q1 | 2003 | 1.20% | 15.23% | 7.10% |
2003q2 | 03Q2 |
| 3.42% | 13.63% | 6.47% |
2003q3 | 03Q3 |
| 7.29% | 12.25% | 5.99% |
2003q4 | 03Q4 |
| 2.63% | 12.98% | 7.77% |
2004q1 | 04Q1 | 2004 | 2.93% | 14.92% | 8.22% |
2004q2 | 04Q2 |
| 3.44% | 18.49% | 9.79% |
2004q3 | 04Q3 |
| 3.55% | 20.29% | 12.63% |
2004q4 | 04Q4 |
| 2.52% | 19.15% | 11.76% |
2005q1 | 05Q1 | 2005 | 3.04% | 18.72% | 12.78% |
2005q2 | 05Q2 |
| 2.78% | 17.22% | 13.64% |
2005q3 | 05Q3 |
| 4.39% | 15.87% | 12.51% |
2005q4 | 05Q4 |
| 1.19% | 16.07% | 12.96% |
2006q1 | 06Q1 | 2006 | 4.74% | 13.79% | 12.38% |
2006q2 | 06Q2 |
| 2.42% | 9.75% | 9.98% |
2006q3 | 06Q3 |
| 1.06% | 5.33% | 7.70% |
2006q4 | 06Q4 |
| 2.07% | 1.40% | 6.10% |
2007q1 | 07Q1 | 2007 | 0.60% | -1.22% | 4.45% |
2007q2 | 07Q2 |
| 3.90% | -3.39% | 3.19% |
Case Shiller (10 metro composite) |
| Quarterly | (Seasonally adjusted annual rates) |
| OFHEO - National |
|
|
| ||||||||
Jan-87 | 62.82 |
|
|
|
| GDP in billions of chained 2000 dollars |
|
| USA | 1975 | 1 | 61.63 |
| |||
Feb-87 | 63.39 |
|
|
|
| 1987q1 | 6365 |
|
|
|
| USA | 1975 | 2 | 62.69 |
|
Mar-87 | 63.87 | 63.4 | 63.36 |
|
| 1987q2 | 6435 |
|
|
|
| USA | 1975 | 3 | 62.26 |
|
Apr-87 | 64.57 |
| 65.57 |
|
| 1987q3 | 6493.4 |
|
|
|
| USA | 1975 | 4 | 63.26 |
|
May-87 | 65.56 |
| 68.22 |
|
| 1987q4 | 6606.8 |
|
|
|
| USA | 1976 | 1 | 64.3 |
|
Jun-87 | 66.59 | 65.6 | 69.80 |
|
| 1988q1 | 6639.1 |
|
|
|
| USA | 1976 | 2 | 66.17 |
|
Jul-87 | 67.54 |
| 70.78 | 11.71% |
| 1988q2 | 6723.5 |
|
|
|
| USA | 1976 | 3 | 66.91 |
|
Aug-87 | 68.25 |
| 72.59 | 10.70% |
| 1988q3 | 6759.4 |
|
|
|
| USA | 1976 | 4 | 68 |
|
Sep-87 | 68.87 | 68.2 | 75.64 | 10.87% |
| 1988q4 | 6848.6 |
|
|
|
| USA | 1977 | 1 | 70.13 |
|
Oct-87 | 69.42 |
| 77.25 | 10.68% |
| 1989q1 | 6918.1 |
|
|
|
| USA | 1977 | 2 | 72.69 |
|
Nov-87 | 69.76 |
| 78.49 | 10.89% |
| 1989q2 | 6963.5 |
|
|
|
| USA | 1977 | 3 | 74.65 |
|
Dec-87 | 70.22 | 69.8 | 80.53 | 10.94% |
| 1989q3 | 7013.1 |
|
|
|
| USA | 1977 | 4 | 76.92 |
|
Jan-88 | 70.45 |
| 82.00 | 8.41% |
| 1989q4 | 7030.9 |
|
|
|
| USA | 1978 | 1 | 79.45 |
|
Feb-88 | 70.77 |
| 82.41 | 6.67% |
| 1990q1 | 7112.1 |
|
|
|
| USA | 1978 | 2 | 82.34 |
|
Mar-88 | 71.12 | 70.8 | 82.15 | 4.67% |
| 1990q2 | 7130.3 |
|
|
|
| USA | 1978 | 3 | 84.8 |
|
Apr-88 | 71.65 |
| 82.08 | 1.93% |
| 1990q3 | 7130.8 |
|
|
|
| USA | 1978 | 4 | 87.37 |
|
May-88 | 72.48 |
| 81.78 | -0.26% |
| 1990q4 | 7076.9 |
|
|
|
| USA | 1979 | 1 | 91.43 |
|
Jun-88 | 73.63 | 72.6 | 80.10 | -2.80% |
| 1991q1 | 7040.8 |
|
|
|
| USA | 1979 | 2 | 94.04 |
|
Jul-88 | 74.81 |
| 77.77 | -5.34% |
| 1991q2 | 7086.5 |
|
|
|
| USA | 1979 | 3 | 96.09 |
|
Aug-88 | 75.70 |
| 77.40 | -5.71% |
| 1991q3 | 7120.7 |
|
|
|
| USA | 1979 | 4 | 98.01 |
|
Sep-88 | 76.40 | 75.6 | 78.81 | -3.64% |
| 1991q4 | 7154.1 |
|
|
|
| USA | 1980 | 1 | 100 |
|
Oct-88 | 76.90 |
| 78.33 | -2.22% |
| 1992q1 | 7228.2 |
|
|
|
| USA | 1980 | 2 | 100.93 |
|
Nov-88 | 77.28 |
| 77.52 | -0.32% |
| 1992q2 | 7297.9 |
|
|
|
| USA | 1980 | 3 | 104.33 |
|
Dec-88 | 77.58 | 77.3 | 77.64 | 0.31% |
| 1992q3 | 7369.5 |
|
|
|
| USA | 1980 | 4 | 104.69 |
|
Jan-89 | 77.99 |
| 77.90 | -1.15% |
| 1992q4 | 7450.7 |
|
|
|
| USA | 1981 | 1 | 105.8 |
|
Feb-89 | 78.36 |
| 77.07 | -1.60% |
| 1993q1 | 7459.7 |
|
|
|
| USA | 1981 | 2 | 107.93 |
|
Mar-89 | 79.12 | 78.5 | 76.25 | -1.64% |
| 1993q2 | 7497.5 |
|
|
|
| USA | 1981 | 3 | 109.25 |
|
Apr-89 | 79.83 |
| 76.13 | -1.95% |
| 1993q3 | 7536 |
|
|
|
| USA | 1981 | 4 | 109.67 |
|
May-89 | 80.52 |
| 76.56 | -1.72% |
| 1993q4 | 7637.4 |
|
|
|
| USA | 1982 | 1 | 111.12 |
|
Jun-89 | 81.24 | 80.5 | 75.98 | -1.41% |
| 1994q1 | 7715.1 |
|
|
|
| USA | 1982 | 2 | 111.67 |
|
Jul-89 | 81.66 |
| 75.69 | -0.73% |
| 1994q2 | 7815.7 |
|
|
|
| USA | 1982 | 3 | 111.18 |
|
Aug-89 | 82.08 |
| 76.52 | 0.52% |
| 1994q3 | 7859.5 |
|
|
|
| USA | 1982 | 4 | 112.12 |
|
Sep-89 | 82.25 | 82.0 | 77.54 | 1.28% |
| 1994q4 | 7951.6 |
|
|
|
| USA | 1983 | 1 | 114.04 |
|
Oct-89 | 82.44 |
| 77.24 | 1.65% |
| 1995q1 | 7973.7 |
|
|
|
| USA | 1983 | 2 | 115.31 |
|
Nov-89 | 82.43 |
| 76.61 | 1.22% |
| 1995q2 | 7988 |
|
|
|
| USA | 1983 | 3 | 116.08 |
|
Dec-89 | 82.35 | 82.4 | 76.63 | 0.15% |
| 1995q3 | 8053.1 |
|
|
|
| USA | 1983 | 4 | 116.49 |
|
Jan-90 | 82.29 |
| 77.39 | -0.19% |
| 1995q4 | 8112 |
|
|
|
| USA | 1984 | 1 | 118.22 |
|
Feb-90 | 82.15 |
| 76.96 | -0.36% |
| 1996q1 | 8169.2 |
|
|
|
| USA | 1984 | 2 | 120.3 |
|
Mar-90 | 82.02 | 82.2 | 76.50 | -0.15% |
| 1996q2 | 8303.1 |
|
|
|
| USA | 1984 | 3 | 121.47 |
|
Apr-90 | 82.05 |
| 77.32 | 0.89% |
| 1996q3 | 8372.7 |
|
|
|
| USA | 1984 | 4 | 122.75 |
|
May-90 | 82.01 |
| 78.28 | 1.15% |
| 1996q4 | 8470.6 |
|
|
|
| USA | 1985 | 1 | 124.56 |
|
Jun-90 | 82.19 | 82.1 | 78.24 | 1.65% |
| 1997q1 | 8536.1 |
|
|
|
| USA | 1985 | 2 | 126.65 |
|
Jul-90 | 82.10 |
| 78.12 | 2.12% |
| 1997q2 | 8665.8 |
|
|
|
| USA | 1985 | 3 | 128.98 |
|
Aug-90 | 81.86 |
| 79.48 | 2.79% |
| 1997q3 | 8773.7 |
|
|
|
| USA | 1985 | 4 | 130.75 |
|
Sep-90 | 81.39 | 81.8 | 81.28 | 3.84% |
| 1997q4 | 8838.4 |
|
|
|
| USA | 1986 | 1 | 133.34 |
|
Oct-90 | 80.84 |
| 82.04 | 4.86% |
| 1998q1 | 8936.2 |
|
|
|
| USA | 1986 | 2 | 136.3 |
|
Nov-90 | 80.09 |
| 83.23 | 6.55% |
| 1998q2 | 8995.3 |
|
|
|
| USA | 1986 | 3 | 138.85 |
|
Dec-90 | 79.38 | 80.1 | 85.83 | 7.99% |
| 1998q3 | 9098.9 |
|
|
|
| USA | 1986 | 4 | 141.41 |
|
Jan-91 | 78.53 |
| 88.91 | 9.39% |
| 1998q4 | 9237.1 |
|
|
|
| USA | 1987 | 1 | 144.53 | 8.39% |
Feb-91 | 77.77 |
| 89.79 | 9.45% |
| 1999q1 | 9315.5 |
|
|
|
| USA | 1987 | 2 | 147.27 | 8.05% |
Mar-91 | 77.00 | 77.8 | 90.62 | 8.87% |
| 1999q2 | 9392.6 |
|
|
|
| USA | 1987 | 3 | 149.61 | 7.75% |
Apr-91 | 76.86 |
| 93.78 | 9.26% |
| 1999q3 | 9502.2 |
|
|
|
| USA | 1987 | 4 | 151 | 6.78% |
May-91 | 77.31 |
| 97.19 | 9.32% |
| 1999q4 | 9671.1 |
|
|
|
| USA | 1988 | 1 | 153.7 | 6.34% |
Jun-91 | 78.02 | 77.4 | 98.98 | 10.23% |
| 2000q1 | 9695.6 |
|
|
|
| USA | 1988 | 2 | 156.96 | 6.58% |
Jul-91 | 78.61 |
| 101.02 | 11.48% |
| 2000q2 | 9847.9 |
|
|
|
| USA | 1988 | 3 | 158.67 | 6.06% |
Aug-91 | 78.93 |
| 105.94 | 12.97% |
| 2000q3 | 9836.6 |
|
|
|
| USA | 1988 | 4 | 160.33 | 6.18% |
Sep-91 | 78.88 | 78.8 | 110.00 | 13.17% |
| 2000q4 | 9887.7 |
|
|
|
| USA | 1989 | 1 | 162.46 | 5.70% |
Oct-91 | 78.68 |
| 112.64 | 13.80% |
| 2001q1 | 9875.6 |
|
|
|
| USA | 1989 | 2 | 164.63 | 4.89% |
Nov-91 | 78.31 |
| 115.57 | 14.41% |
| 2001q2 | 9905.9 |
|
|
|
| USA | 1989 | 3 | 168.43 | 6.15% |
Dec-91 | 77.99 | 78.3 | 118.97 | 12.30% |
| 2001q3 | 9871.1 |
|
|
|
| USA | 1989 | 4 | 170 | 6.03% |
Jan-92 | 77.74 |
| 121.96 | 10.88% |
| 2001q4 | 9910 |
|
|
|
| USA | 1990 | 1 | 170.66 | 5.05% |
Feb-92 | 77.51 |
| 123.63 | 9.76% |
| 2002q1 | 9977.3 |
|
|
|
| USA | 1990 | 2 | 170.61 | 3.63% |
Mar-92 | 77.31 | 77.5 | 124.77 | 7.95% |
| 2002q2 | 10031.6 |
|
|
|
| USA | 1990 | 3 | 171.21 | 1.65% |
Apr-92 | 77.36 |
| 130.35 | 9.56% |
| 2002q3 | 10090.7 |
|
|
|
| USA | 1990 | 4 | 170.41 | 0.24% |
May-92 | 77.62 |
| 136.90 | 12.25% |
| 2002q4 | 10095.8 |
|
|
|
| USA | 1991 | 1 | 171.72 | 0.62% |
Jun-92 | 77.94 | 77.6 | 141.19 | 14.20% |
| 2003q1 | 10126 |
|
|
|
| USA | 1991 | 2 | 172.48 | 1.10% |
Jul-92 | 77.95 |
| 143.76 | 15.23% |
| 2003q2 | 10212.7 |
|
|
|
| USA | 1991 | 3 | 172.46 | 0.73% |
Aug-92 | 77.99 |
| 148.11 | 13.63% |
| 2003q3 | 10398.7 |
|
|
|
| USA | 1991 | 4 | 174.82 | 2.59% |
Sep-92 | 77.76 | 77.9 | 153.68 | 12.25% |
| 2003q4 | 10467 |
|
|
|
| USA | 1992 | 1 | 175.98 | 2.48% |
Oct-92 | 77.45 |
| 159.51 | 12.98% |
| 2004q1 | 10543.6 |
|
|
|
| USA | 1992 | 2 | 175.6 | 1.81% |
Nov-92 | 77.09 |
| 165.21 | 14.92% |
| 2004q2 | 10634.2 |
|
|
|
| USA | 1992 | 3 | 177.39 | 2.86% |
Dec-92 | 76.68 | 77.1 | 175.49 | 18.49% |
| 2004q3 | 10728.7 |
|
|
|
| USA | 1992 | 4 | 178.13 | 1.89% |
Jan-93 | 76.56 |
| 184.85 | 20.29% |
| 2004q4 | 10796.4 |
|
|
|
| USA | 1993 | 1 | 177.85 | 1.06% |
Feb-93 | 76.28 |
| 190.05 | 19.15% |
| 2005q1 | 10878.4 |
|
|
|
| USA | 1993 | 2 | 179.34 | 2.13% |
Mar-93 | 75.91 | 76.3 | 196.14 | 18.72% |
| 2005q2 | 10954.1 |
|
|
|
| USA | 1993 | 3 | 180.42 | 1.71% |
Apr-93 | 75.83 |
| 205.71 | 17.22% |
| 2005q3 | 11074.3 |
|
|
|
| USA | 1993 | 4 | 181.83 | 2.08% |
May-93 | 76.04 |
| 214.18 | 15.87% |
| 2005q4 | 11107.2 |
|
|
|
| USA | 1994 | 1 | 182.67 | 2.71% |
Jun-93 | 76.51 | 76.1 | 220.60 | 16.07% |
| 2006q1 | 11238.7 |
|
|
|
| USA | 1994 | 2 | 183.28 | 2.20% |
Jul-93 | 76.61 |
| 223.20 | 13.79% |
| 2006q2 | 11306.7 |
|
|
|
| USA | 1994 | 3 | 183.77 | 1.86% |
Aug-93 | 76.59 |
| 225.76 | 9.75% |
| 2006q3 | 11336.7 |
|
|
|
| USA | 1994 | 4 | 183.35 | 0.84% |
Sep-93 | 76.47 | 76.6 | 225.60 | 5.33% |
| 2006q4 | 11395.5 |
|
|
|
| USA | 1995 | 1 | 184.02 | 0.74% |
Oct-93 | 76.22 |
| 223.69 | 1.40% |
| 2007q1 | 11412.6 |
|
|
|
| USA | 1995 | 2 | 187.24 | 2.16% |
Nov-93 | 76.02 |
| 220.48 | -1.22% |
| 2007q2 | 11523.8 |
|
|
|
| USA | 1995 | 3 | 190.16 | 3.48% |
Dec-93 | 75.71 | 76.0 | 218.10 | -3.39% |
| 1967q3 | 3491.8 |
|
|
|
| USA | 1995 | 4 | 191.63 | 4.52% |
Jan-94 | 75.71 |
|
|
|
| 1967q4 | 3518.2 |
|
|
|
| USA | 1996 | 1 | 193.99 | 5.42% |
Feb-94 | 75.63 |
|
|
|
| 1968q1 | 3590.7 |
|
|
|
| USA | 1996 | 2 | 194.2 | 3.72% |
Mar-94 | 75.73 | 75.7 |
|
|
| 1968q2 | 3651.6 |
|
|
|
| USA | 1996 | 3 | 194.96 | 2.52% |
Apr-94 | 76.03 |
|
|
|
| 1968q3 | 3676.5 |
|
|
|
| USA | 1996 | 4 | 196.63 | 2.61% |
May-94 | 76.49 |
|
|
|
| 1968q4 | 3692 |
|
|
|
| USA | 1997 | 1 | 198.43 | 2.29% |
Jun-94 | 77.04 | 76.5 |
|
|
| 1969q1 | 3750.2 |
|
|
|
| USA | 1997 | 2 | 200.03 | 3.00% |
Jul-94 | 77.40 |
|
|
|
| 1969q2 | 3760.9 |
|
|
|
| USA | 1997 | 3 | 203 | 4.12% |
Aug-94 | 77.64 |
|
|
|
| 1969q3 | 3784.2 |
|
|
|
| USA | 1997 | 4 | 205.65 | 4.59% |
Sep-94 | 77.57 | 77.5 |
|
|
| 1969q4 | 3766.3 |
|
|
|
| USA | 1998 | 1 | 208.79 | 5.22% |
Oct-94 | 77.50 |
|
|
|
| 1970q1 | 3760 |
|
|
|
| USA | 1998 | 2 | 210.43 | 5.20% |
Nov-94 | 77.23 |
|
|
|
| 1970q2 | 3767.1 |
|
|
|
| USA | 1998 | 3 | 213.33 | 5.09% |
Dec-94 | 76.99 | 77.2 |
|
|
| 1970q3 | 3800.5 |
|
|
|
| USA | 1998 | 4 | 215.89 | 4.98% |
Jan-95 | 76.82 |
|
|
|
| 1970q4 | 3759.8 |
|
|
|
| USA | 1999 | 1 | 218.06 | 4.44% |
Feb-95 | 76.64 |
|
|
|
| 1971q1 | 3864.1 |
|
|
|
| USA | 1999 | 2 | 220.99 | 5.02% |
Mar-95 | 76.38 | 76.6 |
|
|
| 1971q2 | 3885.9 |
|
|
|
| USA | 1999 | 3 | 224.38 | 5.18% |
Apr-95 | 76.36 |
|
|
|
| 1971q3 | 3916.7 |
|
|
|
| USA | 1999 | 4 | 226.9 | 5.10% |
May-95 | 76.60 |
|
|
|
| 1971q4 | 3927.9 |
|
|
|
| USA | 2000 | 1 | 231.59 | 6.20% |
Jun-95 | 76.94 | 76.6 |
|
|
| 1972q1 | 3997.7 |
|
|
|
| USA | 2000 | 2 | 235.51 | 6.57% |
Jul-95 | 77.26 |
|
|
|
| 1972q2 | 4092.1 |
|
|
|
| USA | 2000 | 3 | 240.08 | 7.00% |
Aug-95 | 77.47 |
|
|
|
| 1972q3 | 4131.1 |
|
|
|
| USA | 2000 | 4 | 244.01 | 7.54% |
Sep-95 | 77.43 | 77.4 |
|
|
| 1972q4 | 4198.7 |
|
|
|
| USA | 2001 | 1 | 250.33 | 8.09% |
Oct-95 | 77.26 |
|
|
|
| 1973q1 | 4305.3 |
|
|
|
| USA | 2001 | 2 | 254.77 | 8.18% |
Nov-95 | 76.95 |
|
|
|
| 1973q2 | 4355.1 |
|
|
|
| USA | 2001 | 3 | 258.99 | 7.88% |
Dec-95 | 76.68 | 77.0 |
|
|
| 1973q3 | 4331.9 |
|
|
|
| USA | 2001 | 4 | 262.39 | 7.53% |
Jan-96 | 76.56 |
|
|
|
| 1973q4 | 4373.3 |
|
|
|
| USA | 2002 | 1 | 266.62 | 6.51% |
Feb-96 | 76.44 |
|
|
|
| 1974q1 | 4335.4 |
|
|
|
| USA | 2002 | 2 | 271.57 | 6.59% |
Mar-96 | 76.49 | 76.5 |
|
|
| 1974q2 | 4347.9 |
|
|
|
| USA | 2002 | 3 | 277.46 | 7.13% |
Apr-96 | 76.84 |
|
|
|
| 1974q3 | 4305.8 |
|
|
|
| USA | 2002 | 4 | 281.81 | 7.40% |
May-96 | 77.33 |
|
|
|
| 1974q4 | 4288.9 |
|
|
|
| USA | 2003 | 1 | 285.55 | 7.10% |
Jun-96 | 77.78 | 77.3 |
|
|
| 1975q1 | 4237.6 |
|
|
|
| USA | 2003 | 2 | 289.14 | 6.47% |
Jul-96 | 78.10 |
|
|
|
| 1975q2 | 4268.6 |
|
|
|
| USA | 2003 | 3 | 294.08 | 5.99% |
Aug-96 | 78.36 |
|
|
|
| 1975q3 | 4340.9 |
|
|
|
| USA | 2003 | 4 | 303.7 | 7.77% |
Sep-96 | 78.37 | 78.3 |
|
|
| 1975q4 | 4397.8 |
|
|
|
| USA | 2004 | 1 | 309.03 | 8.22% |
Oct-96 | 78.36 |
|
|
|
| 1976q1 | 4496.8 |
|
|
|
| USA | 2004 | 2 | 317.46 | 9.79% |
Nov-96 | 78.23 |
|
|
|
| 1976q2 | 4530.3 |
|
|
|
| USA | 2004 | 3 | 331.22 | 12.63% |
Dec-96 | 78.12 | 78.2 |
|
|
| 1976q3 | 4552 |
|
|
|
| USA | 2004 | 4 | 339.43 | 11.76% |
Jan-97 | 78.08 |
|
|
|
| 1976q4 | 4584.6 |
|
|
|
| USA | 2005 | 1 | 348.52 | 12.78% |
Feb-97 | 77.98 |
|
|
|
| 1977q1 | 4640 |
|
|
|
| USA | 2005 | 2 | 360.76 | 13.64% |
Mar-97 | 78.29 | 78.1 |
|
|
| 1977q2 | 4731.1 |
|
|
|
| USA | 2005 | 3 | 372.65 | 12.51% |
Apr-97 | 78.76 |
|
|
|
| 1977q3 | 4815.8 |
|
|
|
| USA | 2005 | 4 | 383.41 | 12.96% |
May-97 | 79.42 |
|
|
|
| 1977q4 | 4815.3 |
|
|
|
| USA | 2006 | 1 | 391.65 | 12.38% |
Jun-97 | 80.25 | 79.5 |
|
|
| 1978q1 | 4830.8 |
|
|
|
| USA | 2006 | 2 | 396.75 | 9.98% |
Jul-97 | 80.86 |
|
|
|
| 1978q2 | 5021.2 |
|
|
|
| USA | 2006 | 3 | 401.36 | 7.70% |
Aug-97 | 81.41 |
|
|
|
| 1978q3 | 5070.7 |
|
|
|
| USA | 2006 | 4 | 406.81 | 6.10% |
Sep-97 | 81.57 | 81.3 |
|
|
| 1978q4 | 5137.4 |
|
|
|
| USA | 2007 | 1 | 409.07 | 4.45% |
Oct-97 | 81.83 |
|
|
|
| 1979q1 | 5147.4 |
|
|
|
| USA | 2007 | 2 | 409.4 | 3.19% |
Nov-97 | 81.98 |
|
|
|
| 1979q2 | 5152.3 |
|
|
|
|
|
|
|
|
|
Dec-97 | 82.31 | 82.0 |
|
|
| 1979q3 | 5189.4 |
|
|
|
|
|
|
|
|
|
Jan-98 | 82.70 |
|
|
|
| 1979q4 | 5204.7 |
|
|
|
|
|
|
|
|
|
Feb-98 | 83.13 |
|
|
|
| 1980q1 | 5221.3 |
|
|
|
|
|
|
|
|
|
Mar-98 | 83.87 | 83.2 |
|
|
| 1980q2 | 5115.9 |
|
|
|
|
|
|
|
|
|
Apr-98 | 84.69 |
|
|
|
| 1980q3 | 5107.4 |
|
|
|
|
|
|
|
|
|
May-98 | 85.77 |
|
|
|
| 1980q4 | 5202.1 |
|
|
|
|
|
|
|
|
|
Jun-98 | 87.03 | 85.8 |
|
|
| 1981q1 | 5307.5 |
|
|
|
|
|
|
|
|
|
Jul-98 | 88.14 |
|
|
|
| 1981q2 | 5266.1 |
|
|
|
|
|
|
|
|
|
Aug-98 | 89.01 |
|
|
|
| 1981q3 | 5329.8 |
|
|
|
|
|
|
|
|
|
Sep-98 | 89.58 | 88.9 |
|
|
| 1981q4 | 5263.4 |
|
|
|
|
|
|
|
|
|
Oct-98 | 89.80 |
|
|
|
| 1982q1 | 5177.1 |
|
|
|
|
|
|
|
|
|
Nov-98 | 89.76 |
|
|
|
| 1982q2 | 5204.9 |
|
|
|
|
|
|
|
|
|
Dec-98 | 89.82 | 89.8 |
|
|
| 1982q3 | 5185.2 |
|
|
|
|
|
|
|
|
|
Jan-99 | 90.06 |
|
|
|
| 1982q4 | 5189.8 |
|
|
|
|
|
|
|
|
|
Feb-99 | 90.48 |
|
|
|
| 1983q1 | 5253.8 |
|
|
|
|
|
|
|
|
|
Mar-99 | 91.31 | 90.6 |
|
|
| 1983q2 | 5372.3 |
|
|
|
|
|
|
|
|
|
Apr-99 | 92.55 |
|
|
|
| 1983q3 | 5478.4 |
|
|
|
|
|
|
|
|
|
May-99 | 93.69 |
|
|
|
| 1983q4 | 5590.5 |
|
|
|
|
|
|
|
|
|
Jun-99 | 95.10 | 93.8 |
|
|
| 1984q1 | 5699.8 |
|
|
|
|
|
|
|
|
|
Jul-99 | 96.28 |
|
|
|
| 1984q2 | 5797.9 |
|
|
|
|
|
|
|
|
|
Aug-99 | 97.31 |
|
|
|
| 1984q3 | 5854.3 |
|
|
|
|
|
|
|
|
|
Sep-99 | 97.99 | 97.2 |
|
|
| 1984q4 | 5902.4 |
|
|
|
|
|
|
|
|
|
Oct-99 | 98.48 |
|
|
|
| 1985q1 | 5956.9 |
|
|
|
|
|
|
|
|
|
Nov-99 | 98.94 |
|
|
|
| 1985q2 | 6007.8 |
|
|
|
|
|
|
|
|
|
Dec-99 | 99.51 | 99.0 |
|
|
| 1985q3 | 6101.7 |
|
|
|
|
|
|
|
|
|
Jan-00 | 100.00 |
|
|
|
| 1985q4 | 6148.6 |
|
|
|
|
|
|
|
|
|
Feb-00 | 100.81 |
|
|
|
| 1986q1 | 6207.4 |
|
|
|
|
|
|
|
|
|
Mar-00 | 102.24 | 101.0 |
|
|
| 1986q2 | 6232 |
|
|
|
|
|
|
|
|
|
Apr-00 | 104.01 |
|
|
|
| 1986q3 | 6291.7 |
|
|
|
|
|
|
|
|
|
May-00 | 105.98 |
|
|
|
| 1986q4 | 6323.4 |
|
|
|
|
|
|
|
|
|
Jun-00 | 107.83 | 105.9 |
|
|
|
|
|
|
|
|
|
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|
|
Jul-00 | 109.02 |
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Aug-00 | 110.07 |
|
|
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|
1 Housing price indices represent year-over-year percentage changes
2 GDP % has been annualized
3 S&P/Case-Shiller® Home Price Indices are based on index values
4 OFHEO House Price Index is based on repeat sales index
Slide 14
Rising LIBOR and Nonconforming Loan Rates
08/31/2006 09/30/2006 10/31/06 11/30/06 12/31/06 01/31/2007 02/28/2007 03/31/2007 04/30/2007 05/31/2007 06/30/2007 07/31/2007 08/31/2007
5/1 Hybrid Jumbo 6.52% 6.46% 6.57% 6.48% 6.39% 6.55% 6.53% 6.41% 6.57% 0.0671 0.07101 0.07095 0.07483
5/1 Hybrid Conforming 6.50% 6.40% 6.46% 6.29% 6.26% 6.44% 6.28% 6.17% 6.30% 0.06426 0.06714 0.06595 0.0675
3M LIBOR 5.40% 5.37% 5.37% 5.37% 5.36% 5.36% 5.35% 5.35% 5.36% 0.0536 0.0536 0.05359 0.05621
Fed Funds 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525 0.0525
Slide 15
Strong Liquidity Position Enables
Balance Sheet Growth in Q3 ’07
• Conforming loans generally designated as held for sale
• Nonconforming loans now designated as held for investment
• New originations are high quality at attractive yields
- Option ARMs
- Hybrids
- Home Equity
• Subprime mortgage portfolio flat, originations down
• Cash and cash equivalents up
Slide 16
High Quality Loans at Higher Returns1
Jumbo Option ARMs
'07/06/07 Aug 31 '07
8.00% 8.60%
5/1 Jumbo Hybrids
07/06/2007 Aug 31 '07
6.50% 7.40%
Increase of 0.90%
1 Weighted average coupon, ROA and ROE based on current loss estimates
2 Based on loan rate locks during 8/29-31/07
Slide 17
Implications of the Current Environment
What’s Changed
Housing prices flat or declining in most markets
Lack of secondary market liquidity for nonconforming loans
Interest rates and spreads
Impact
Higher nonperforming loans
Higher level of charge-offs
Increased provision
Nonconforming loans moved from held for sale to held for investment
Opportunistic portfolio growth leading to increased provision
Higher interest rates leading to much slower loan prepayments and higher MSR valuation
Higher cost of funds will negatively impact net interest margin
Reduction in Fed Funds rate would be favorable, but LIBOR must fall also
Slide 18
Key Takeaways
• WaMu is a leading consumer and small business bank
• Key strategic actions have diversified the business, reduced market risk and lowered expenses
• Top-tier Retail Bank and Card Services deliver the bulk of earnings
• Proactive steps were taken to mitigate an anticipated decline in housing prices; however, current conditions are worsening and will increase near term credit costs
• We are well positioned with strong liquidity and capital to support long-term growth
Slide 19
Cautionary 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,” or words of similar meaning, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may” 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 “Factors That May Affect Future Results” in Washington Mutual’s 2006 Annual Report on Form 10-K and “Cautionary Statements” in our Forms 10-Q for the quarters ended March 31, 2007 and June 30, 2007 which include:
- Volatile interest rates and their impact on the mortgage banking business;
- Credit risk;
- Operational risk;
- Risks related to credit card operations;
- Changes in the regulation of financial services companies, housing government-sponsored enterprises and credit card lenders;
- Competition from banking and nonbanking companies;
- General business, economic and market conditions;
- Reputational risk; and
- Liquidity risk.
There are other factors not described in our 2006 Form 10-K and Forms 10-Q for the quarters ended March 31, 2007 and June 30, 2007 which are beyond the Company’s ability to anticipate or control that could cause results to differ.
Slide 20 Questions?