Essay on Group 1 Project WaMu

Submitted By ocman4
Words: 8189
Pages: 33

Group 1 Project:

Washington Mutual Bank

Professor Summer
Management 5

Mazi Soltani
Brandon Goei
Hao Huynh
Ashwin Yenaman
Chad Evans
I. Stated Mission

There are two main parts in WaMu’s stated mission. These are its vision and mission statement. Washington Mutual’s stated vision is “to be the nation’s leading retailer of financial services for consumers and small business” while its mission is “to build strong, profitable relationships with a broad spectrum of consumers and business by delivering products and services that offer great value and friendly service, and by adhering to our core values of being fair, caring, human, dynamic, and driven.” Washington Mutual displays a clear and unique mission statement. They are detailed in that they are seeking to build strong and profitable relationships with consumers and business, going further to add their key competencies in customer service and human interest. (1)
II. Product Mix and Product Lines
Washington Mutual’s product mix includes retail banking, home loans, insurance services, commercial banking, and credit card services. The Retail Banking and Financial Services division product line includes checking accounts, savings accounts, money markets, personal loans, and auto loans along with additional services such as ATM, deposit, payroll, and cash management. This division also carries an investment product line with individual retirement accounts, fixed annuities, life insurance, retirement plans, estate planning, stock and bond investments, and mutual funds. The Home Loans and Insurance Services division has a home loan product line including fixed-rate home loans, adjustable-rate home loans, hybrid home loans, and government insured or guaranteed home loans. Another product line the Home Loans and Insurance Services division carries is its insurance product line including private mortgage insurance, mortgage life insurance, flood, homeowners’ earthquake and other property and casualty insurance. Next, the Commercial Group has a product line consisting of multi-family lending, commercial real estate, community lending and investment, and mortgage banker finance products. Multi-family lending products include adjustable and fixed financing products for purchase or refinancing of existing multi-family properties. Commercial real estate products include construction, acquisition, rehab and term financing for office, retail and industrial properties, and new multi-family construction. Community lending and investment products include programs for multi-family community lending and investments for credit. Mortgage banker finance products consist of credit for mortgage loans, early purchase facilities, and deposit and treasury management services for mortgage bankers. The last WaMu product line is offered by the Card Services division. This product line includes a variety of credit card options such as basic credit cards and rewards cards. Credit cards became a part of Washington Mutual’s product mix with WaMu’s Providian Financial Corporation acquisition in 2005. WaMu is now one of the top ten largest credit card companies in the US. (2)
III. Organization Type
In 1889, Washington Mutual was founded as the Washington National Building Loan and Investment Association in order to assist in reconstruction financing efforts after the destruction of the Seattle downtown district by fire. It was registered under the Office of Thrift Supervision. Washington Mutual still operates under a charter as a savings and loan institution rather than a commercial bank. Washington Mutual converted from a mutual form of ownership to a capital stock savings bank and was incorporated in 1983. (3)
IV. Performance Measurements WaMu’s performance is measured by a Quarterly Earnings Report including measures for return on average common equity, earnings per share, efficiency ratio, nonperforming assets/total assets, and tangible equity/total tangible