WaMu Reports Profit Surge

Washington Mutual Inc., Seattle, has reported earnings of $844 million ($0.95 per share) for the second quarter, up 73% from $489 million ($0.55 per share) a year earlier.Net income for the home loans business segment (which excludes purchased specialty mortgage finance and Long Beach Mortgage Co.) totaled $209 million in the second quarter, compared with $242 million in the first quarter and a loss of $59 million in the second quarter of 2004, WaMu said. Originations of home loans totaled $44.86 billion for the quarter, up from $38.50 billion in the first quarter but down from $56.22 billion a year earlier. "A year ago we acknowledged our challenges in integrating our mortgage banking acquisitions effectively into our operations and enhancing the risk management of our mortgage servicing asset," said Kerry Killinger, WaMu's chairman and chief executive officer. "I said we would face those challenges head on and build a mortgage team that is one of the industry's best. I am proud to say that we have done exactly that, and after four consecutive quarters of solid performance, our Home Loans Group is now positioned for growth." WaMu can be found online at http://www.wamu.com.