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WaMu Reports Third Quarter Earnings Per Share of $0.23

Declares Cash Dividend of 56 Cents

SEATTLE--(BUSINESS WIRE)--Oct. 17, 2007--WaMu (NYSE:WM) announced today third quarter 2007 net income of $210 million, or $0.23 per diluted share, compared with net income of $748 million, or $0.77 per diluted share, in the third quarter of 2006. The company attributed the decline to a weaker housing market and disruptions in the capital markets.

"We're disappointed with our third quarter results but they reflect the increasingly difficult market conditions that are challenging the banking industry," said WaMu Chairman and Chief Executive Officer Kerry Killinger. "Despite these challenges, our Retail Banking, Card Services and Commercial businesses delivered good operating performance during the quarter, and we continued to adapt our Home Loans business to meet market conditions." Killinger added that the company remains focused on executing its long-term growth plans.

The company also announced its Board of Directors declared a quarterly cash dividend on the company's common stock of 56 cents per share.

THIRD QUARTER FINANCIAL SUMMARY AND HIGHLIGHTS
----------------------------------------------------------------------
Selected Financial Information
                                          Three Months Ended
                                 -------------------------------------
(in millions, except per share   September 30, June 30,  September 30,
 data)                               2007        2007        2006
                                 ------------- --------- -------------
Income Statement
Net interest income                  $  2,014  $  2,034      $  1,947
Provision for loan and lease
 losses                                   967       372           166
Noninterest income                      1,379     1,758         1,570
Noninterest expense                     2,153     2,138         2,184
Net income                                210       830           748

Diluted earnings per common
 share                               $   0.23  $   0.92      $   0.77

Balance Sheet
Total assets, end of period          $330,110  $312,219      $348,877
Average total assets                  320,475   316,004       349,542
Average interest-earning assets       283,263   279,836       312,827
Average total deposits                198,649   206,765       208,912

Performance Ratios
Return on average common equity          3.45%    13.74%        11.47%
Net interest margin                      2.86      2.90          2.53
Efficiency ratio                        63.42     56.38         62.09
Nonperforming assets/total
 assets                                  1.65      1.29          0.69
Tangible equity/total tangible
 assets                                  5.61      6.07          5.86
    --  Net interest margin of 2.86 percent reflects change in funding
        mix. The 4 basis point decline in the net interest margin from
        the second quarter was driven by an increase in the level of
        interest-earning assets funded by higher-cost wholesale
        borrowings. The increase in the margin from 2.53 percent in
        the third quarter of last year was primarily due to the upward
        repricing of the loan portfolio, which reflected the $17.5
        billion sale of lower yielding, medium-term adjustable-rate
        home loans in the first quarter of 2007.

    --  Increase in provision reflects further weakness in the housing
        market. The quarter's provision increased to $967 million from
        $372 million in the prior quarter in response to higher
        delinquencies and impacts from recent house price trends, as
        well as the $22.1 billion, or 10 percent, growth in the
        company's loan portfolio during the quarter. The increase in
        the non-card portion of the provision to $644 million from
        $143 million in the second quarter was driven by further
        weakening in the housing market, primarily as it affects
        subprime and home equity loans.

    --  The company also increased the provision for loan losses for
        credit cards to $323 million from $229 million in the second
        quarter reflecting a higher level of delinquencies and a lower
        level of anticipated recoveries.

    --  Depositor and other retail banking fees continue to grow at
        double-digit pace. During the third quarter, the company added
        310,000 net new checking accounts for year-to-date growth of
        over 1.0 million net new accounts, achieving in nine months
        its stated goal of adding more than one million net new
        checking accounts in 2007. The growth in WaMu Free
        Checking(TM) helped drive, along with higher transaction fees,
        an increase in depositor and other retail banking fees of 13
        percent from last year's third quarter.

    --  Noninterest income reflects capital markets disruption.
        Noninterest income during the third quarter was impacted by
        the following:

    --  Downward adjustments of $147 million related to $17 billion in
        home, multi-family and other commercial real estate loans that
        were transferred from held for sale to the company's
        investment portfolio;

    --  Net losses of $153 million in the company's trading securities
        portfolio, including market valuation adjustments on capital
        markets assets, retained interests on credit cards and other
        residual interests; and,

    --  Impairment losses of $104 million on investment grade
        mortgage-backed securities designated as available for sale.

    --  Included in other noninterest income for the third quarter
        were losses, resulting from the decrease in interest rates, on
        derivatives economically hedging commercial real estate loans
        held for sale. The decline in total noninterest income was
        partially offset by strong third quarter results from MSR
        valuation and risk management.

    --  Disciplined expense management continues. The slight increase
        in third quarter's noninterest expense to $2.2 billion
        reflects increasing foreclosure related expenses offset by
        continuing productivity improvements.
THIRD QUARTER OPERATING SEGMENT RESULTS
Retail Banking Group
Selected Segment Information
                                           Three Months Ended
                                  ------------------------------------
(in millions, except accounts and September 30, June 30, September 30,
 households)                          2007        2007       2006
                                  ------------- -------- -------------
Net interest income                 $     1,302 $  1,283  $      1,260
Provision for loan and lease
 losses                                     318       91            53
Noninterest income                          833      819           738
Noninterest expense                       1,155    1,137         1,079
Net income                                  453      559           555

Average loans                       $   147,357 $149,716  $    180,829
Average retail deposits                 144,921  145,252       139,954
Net change in number of retail
 checking accounts                      310,360  406,243       307,433
Net change in retail households         161,000  228,000       256,000
    --  Solid operating results with a higher provision. The Retail
        Bank continued to perform well, which led to an increase in
        net interest income and a 13 percent year over year increase
        in depositor fees. The decline in net income was due to the
        increase in the provision related to both the home loan and
        home equity portfolios.

    --  Number of checking accounts up during the quarter. During the
        third quarter, the company added 310,000 net new checking
        accounts for year-to-date growth of over 1.0 million net new
        accounts, achieving in nine months its stated goal of adding
        more than one million net new checking accounts in 2007. The
        growth in WaMu Free Checking(TM) also contributed to an
        increase in the number of retail households, up 2 percent from
        the end of the prior quarter and up 8 percent from a year
        earlier.
Card Services Group (managed basis)
Selected Segment Information
                                           Three Months Ended
                                  ------------------------------------
(in millions)                     September 30, June 30, September 30,
                                      2007        2007       2006
                                  ------------- -------- -------------
Net interest income                 $      689  $   660    $      633
Provision for loan and lease
 losses                                    611      523           345
Noninterest income                         399      393           343
Noninterest expense                        320      300           294
Net income                                 102      141           207

Average managed receivables         $   25,718  $24,234    $   21,706
Period-end managed receivables          26,227   24,987        22,234
30+ day managed delinquency rate          5.73%    5.11%         5.53%
Managed net credit losses                 6.37     6.49          5.68
    --  Results reflect strong growth in receivables despite market
        disruption. Noninterest income was up slightly from the second
        quarter. The increase in fee income from larger receivables
        balances was mostly offset by a $65 million downward
        adjustment to the company's retained interests resulting from
        disruption in the capital markets. The increase in net
        interest income compared with prior periods reflected higher
        net finance charges from the higher balance of managed
        receivables. The increase in noninterest expense was driven by
        higher marketing costs which helped support the quarter's
        record account openings.

    --  Record new account growth. During the quarter, Card Services
        opened a record 945,000 new credit card accounts. Marketing to
        WaMu customers continues to be an important growth opportunity
        for Card Services and accounted for approximately one third of
        production. Period-end managed receivables of $26.2 billion
        were up 5 percent from the second quarter and up 18 percent
        from the prior year.

    --  Credit quality reflects higher level of delinquencies. Net
        credit losses of 6.37 percent were down slightly from the
        second quarter as the third quarter's substantial growth in
        managed receivables more than offset an increase in losses. At
        5.73 percent of period-end managed receivables, the 30+ day
        managed delinquency rate was up from the prior quarter, due in
        part to seasonal trends. The quarter's strong growth in
        period-end managed receivables, higher level of delinquencies,
        and a lower level of anticipated recoveries led to the
        increase in the quarter's provision.
Commercial Group
Selected Segment Information
                                           Three Months Ended
                                  ------------------------------------
(in millions)                     September 30, June 30, September 30,
                                      2007        2007       2006
                                  ------------- -------- -------------
Net interest income                    $   193   $   195      $   159
Provision for loan and lease
 losses                                     12         2           (2)
Noninterest income                         (34)       62           25
Noninterest expense                         67        74           60
Net income                                  54       113           78

Loan volume                            $ 4,054   $ 4,348      $ 3,104
Average loans                           38,333    38,789       32,414
    --  Decline in net income reflects capital markets pressure. Net
        income of $54 million was down from the prior quarter due to
        the decline in noninterest income and increase to the
        provision for loan losses. The $34 million loss in noninterest
        income was primarily due to a $21 million loss on sale of
        loans, net of hedging, compared with net gains in the second
        quarter of $63 million due to favorable hedging results. The
        increase in the provision was primarily due to the transfer of
        $2 billion of loans out of held for sale and into portfolio.

    --  Loan volume remains strong. Loan volume of $4.1 billion
        remained strong, down slightly from the record level in the
        second quarter as the company increased pricing in response to
        market conditions. The quarter's lower level of loan
        production contributed to the decline in noninterest expense
        from the second quarter.
Home Loans Group
Selected Segment Information
                                           Three Months Ended
                                  ------------------------------------
(in millions)                     September 30, June 30, September 30,
                                      2007        2007       2006
                                  ------------- -------- -------------
Net interest income                    $   183  $   215       $   276
Provision for loan and lease
 losses                                    323      101            84
Noninterest income                         184      391           314
Noninterest expense                        554      548           528
Net income (loss)                         (348)     (37)          (23)

Loan volume                            $26,434  $35,857       $41,241
Average loans                           43,737   43,312        45,407
    --  Housing weakness and capital markets disruption challenge Home
        Loans' profitability. The decline in net income was driven by
        lower noninterest income and higher credit costs.

    --  The company's gain on sale of home mortgage loans decreased
        from a gain of $192 million in the second quarter to a loss of
        $222 million. During the quarter, the company recorded a $139
        million downward adjustment on the $15 billion of loans
        transferred from held for sale into the segment's portfolio.

    --  In addition, the company recorded a decrease in the value of
        its subprime residuals by $43 million to a balance of $37
        million at the end of the quarter and recorded a loss of $62
        million on trading securities associated with the company's
        capital markets activities as the position was marked down due
        to widening credit spreads and the market's reduced liquidity.

    --  Partially offsetting these items were strong results from MSR
        valuation and risk management of $222 million for the third
        quarter compared with a loss of $21 million in the prior
        quarter, reflecting the disruption in the capital markets and
        a slowdown in expected prepayments related to a weaker housing
        market, tighter underwriting standards across the industry,
        and higher nonconforming mortgage rates.

    --  The provision for loan losses increased to $323 million in the
        third quarter from $101 million in the prior quarter; the
        increase reflects rising delinquencies, home price trends, and
        the impact of nonconforming loans moved or added to the loan
        portfolio. The company retained most prime nonconforming loans
        in this segment rather than selling them.

    --  Drop in home loan volume reflects slowdown in housing and
        further credit tightening. Prime home loan volume was down 22
        percent from the second quarter as refinance activity fell
        during the third quarter. Subprime mortgage production for the
        third quarter of only $483 million was down 80 percent from
        $2.4 billion in the prior quarter and down 95 percent from
        $9.4 billion a year ago.

    COMPANY UPDATES

    --  On Oct. 16, Washington Mutual Bank consented to the issuance
        of an order by the Office of Thrift Supervision requiring the
        Bank to comply with the Bank Secrecy Act and to strengthen and
        improve its programs and controls for compliance with the Act
        and related laws and regulations. The order does not impose
        any fines or restrictions on the Bank's business activities or
        growth initiatives.

    --  On Oct. 16, WaMu's Board of Directors declared a cash dividend
        of 56 cents per share on the company's common stock. Dividends
        on the common stock are payable on Nov. 15, 2007 to
        shareholders of record as of Oct. 31, 2007. In addition to
        declaring a dividend on the company's common stock, the
        company will pay a dividend of $0.4041 per depository share of
        Series K Preferred Stock to be payable on Dec. 17, 2007 to
        holders of record on Dec. 3, 2007.

    --  On Oct. 1, WaMu implemented industry leading standards for
        mortgage brokers. The new program includes enhanced disclosure
        and a direct call program to every borrower who is represented
        by a broker prior to closing to review the key loan terms.

    --  On Sept. 24, John P. McMurray joined WaMu to serve as the
        company's Chief Credit Officer. He reports to Ron Cathcart,
        Chief Enterprise Risk Officer. McMurray, a mortgage industry
        veteran, most recently was Senior Managing Director and Chief
        Risk Officer at Countrywide Financial Corporation.

    --  On Nov. 7, WaMu will hold its 2007 Investor Day for analysts
        and institutional investors. The event, scheduled to begin at
        8:00 a.m. and conclude by 12:30 p.m. ET, will be held in New
        York at the Sheraton New York Hotel and Tower.

    ABOUT WAMU

WaMu, through its subsidiaries, is one of the nation's leading consumer and small business banks. At Sept. 30, 2007, WaMu and its subsidiaries had assets of $330.1 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate approximately 2,700 consumer and small business banking stores throughout the nation. WaMu's press releases are available at http://newsroom.wamu.com.

WEBCAST INFORMATION

A conference call to discuss the company's financial results will be held on Wednesday, Oct. 17, 2007, at 5:00 p.m. ET and will be hosted by Kerry Killinger, chairman and chief executive officer and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-889-1955. Participants calling from outside the United States may dial 210-234-0002. The passcode "WaMu" is required to access the call. Via the Internet, the conference call is available on the Investor Relations portion of the company's web site at www.wamu.com/ir. A transcript of the prepared remarks will be available on the company's web site prior to the call and archived for at least 30 days. A recording of the conference call will be available from 7:00 p.m. ET on Wednesday, Oct. 17, 2007, through 11:59 p.m. ET on Friday, Oct. 26, 2007. The recorded message will be available at 800-584-7315. Callers from outside the United States may dial 203-369-3816.

CAUTIONARY STATEMENTS

This document 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.

WM-1
                       Washington Mutual, Inc.
                    Selected Financial Information
             (dollars in millions, except per share data)
                             (unaudited)


                                     Quarter Ended
---------------------------------------------------------------------
                   Sept. 30,  June 30,  Mar. 31,  Dec. 31,  Sept. 30,
                        2007      2007      2007      2006       2006
---------------------------------------------------------------------
PROFITABILITY
  Net income       $     210  $    830  $    784  $  1,058  $     748
  Net interest
   income              2,014     2,034     2,081     1,998      1,947
  Noninterest
   income              1,379     1,758     1,541     1,592      1,570
  Noninterest
   expense             2,153     2,138     2,105     2,257      2,184

  Diluted earnings
   per common
   share:
    Income from
     continuing
     operations    $    0.23  $   0.92  $   0.86  $   0.66  $    0.76
    Income from
     discontinued
     operations            -         -         -      0.44       0.01
    Net income          0.23      0.92      0.86      1.10       0.77

  Diluted weighted
   average number
   of common
   shares
   outstanding
  (in thousands)     876,002   893,090   899,706   955,817    967,376
  Net interest
   margin               2.86%     2.90%     2.79%     2.58%      2.53%
  Dividends
   declared per
   common share    $    0.56  $   0.55  $   0.54  $   0.53  $    0.52
  Book value per
   common share
   (period end)(1)     27.21     27.27     27.30     28.21      27.65
  Return on
   average assets       0.26%     1.05%     0.95%     1.20%      0.86%
  Return on
   average common
   equity               3.45     13.74     12.99     16.03      11.47
  Efficiency
   ratio(2)(3)         63.42     56.38     58.13     62.87      62.09

ASSET QUALITY
  Nonperforming
   assets(4) to
   total assets         1.65%     1.29%     1.02%     0.80%      0.69%
  Allowance as a
   percentage of
   loans held in
   portfolio            0.80      0.73      0.71      0.72       0.64

CREDIT PERFORMANCE
  Provision for
   loan and lease
   losses          $     967  $    372  $    234  $    344  $     166
  Net charge-offs        421       271       183       136        154

CAPITAL ADEQUACY
  Capital Ratios
   for WMI:
    Tangible
     equity to
     total
     tangible
     assets(5)          5.61%     6.07%     5.78%     6.04%      5.86%
    Total risk-
     based capital
     to total
     risk-weighted
     assets(6)         10.53     11.04     11.17     11.77      11.10
    Tier 1 capital
     to average
     total
     assets(6)          5.86      6.09      5.87      6.35       6.28
  Capital Ratios
   for WMB (well-
   capitalized
   minimum)(7):
    Tier 1 capital
     to adjusted
     total assets
     (5.00%)            6.40      7.02      6.70      6.79       6.47
    Adjusted tier
     1 capital to
     total risk-
     weighted
     assets
     (6.00%)            7.47      8.14      7.88      8.28       8.12
    Total risk-
     based capital
     to total
     risk-weighted
     assets
     (10.00%)          11.07     12.17     11.94     12.16      11.30

SUPPLEMENTAL DATA
  Average balance
   sheet:
    Total loans
     held in
     portfolio     $ 227,348  $216,004  $222,617  $239,265  $ 242,165
    Total
     interest-
     earning
     assets(2)       283,263   279,836   295,700   314,784    312,827
    Total assets     320,475   316,004   331,905   353,056    349,542
    Total deposits   198,649   206,765   210,764   214,801    208,912
    Total
     stockholders'
     equity           23,994    24,436    24,407    26,700     26,147
  Period-end
   balance sheet:
    Total loans
     held in
     portfolio,
     net             235,243   213,434   215,481   223,330    240,215
    Total assets     330,110   312,219   319,985   346,288    348,877
    Total deposits   194,280   201,380   210,209   213,956    210,882
    Total
     stockholders'
     equity           23,965    24,210    24,578    26,969     26,458
    Common shares
     outstanding
     at the end of
     period (in
     thousands)(8)   868,802   875,722   888,111   944,479    945,098
    Employees at
     end of period    49,748    49,989    49,693    49,824     51,056


                       Nine Months Ended
--------------------------------------------
                      Sept. 30,    Sept. 30,
                           2007         2006
--------------------------------------------
PROFITABILITY
  Net income        $     1,825  $     2,501
  Net interest
   income                 6,131        6,123
  Noninterest
   income                 4,678        4,786
  Noninterest
   expense                6,396        6,551

  Diluted earnings
   per common
   share:
    Income from
     continuing
     operations     $      2.02  $      2.51
    Income from
     discontinued
     operations               -         0.03
    Net income             2.02         2.54

  Diluted weighted
   average number
   of common
   shares
   outstanding
  (in thousands)        889,534      981,997
  Net interest
   margin                  2.85%        2.64%
  Dividends
   declared per
   common share     $      1.65  $      1.53
  Book value per
   common share
   (period end)(1)        27.21        27.65
  Return on
   average assets          0.75%        0.96%
  Return on
   average common
   equity                 10.10        12.68
  Efficiency
   ratio(2)(3)            59.18        60.05

ASSET QUALITY
  Nonperforming
   assets(4) to
   total assets            1.65%        0.69%
  Allowance as a
   percentage of
   loans held in
   portfolio               0.80         0.64

CREDIT PERFORMANCE
  Provision for
   loan and lease
   losses           $     1,574  $       472
  Net charge-offs           876          375

CAPITAL ADEQUACY
  Capital Ratios
   for WMI:
    Tangible
     equity to
     total
     tangible
     assets(5)             5.61%        5.86%
    Total risk-
     based capital
     to total
     risk-weighted
     assets(6)            10.53        11.10
    Tier 1 capital
     to average
     total
     assets(6)             5.86         6.28
  Capital Ratios
   for WMB (well-
   capitalized
   minimum)(7):
    Tier 1 capital
     to adjusted
     total assets
     (5.00%)               6.40         6.47
    Adjusted tier
     1 capital to
     total risk-
     weighted
     assets
     (6.00%)               7.47         8.12
    Total risk-
     based capital
     to total
     risk-weighted
     assets
     (10.00%)             11.07        11.30

SUPPLEMENTAL DATA
  Average balance
   sheet:
    Total loans
     held in
     portfolio      $   222,007  $   239,037
    Total
     interest-
     earning
     assets(2)          286,221      311,300
    Total assets        322,753      347,310
    Total deposits      205,348      200,131
    Total
     stockholders'
     equity              24,278       26,308
  Period-end
   balance sheet:
    Total loans
     held in
     portfolio,
     net                235,243      240,215
    Total assets        330,110      348,877
    Total deposits      194,280      210,882
    Total
     stockholders'
     equity              23,965       26,458
    Common shares
     outstanding
     at the end of
     period (in
     thousands)(8)      868,802      945,098
    Employees at
     end of period       49,748       51,056

_______________________

(1) Excludes six million shares held in escrow.

(2) Based on continuing operations.

(3) The efficiency ratio is defined as noninterest expense divided by
     total revenue (net interest income and noninterest income).

(4) Excludes nonaccrual loans held for sale.

(5) Excludes unrealized net gain/loss on available-for-sale securities
     and derivatives, goodwill and intangible assets (except MSR) and
     the impact from the adoption and application of FASB Statement
     No. 158, Employers' Accounting for Defined Benefit Pension and
     Other Postretirement Plans. Minority interests of $2.94 billion
     for September 30, 2007 and June 30, 2007, $2.45 billion for March
     31, 2007 and December 31, 2006 and $1.96 billion for September
     30, 2006 are included in the numerator.

(6) The capital ratios are estimated as if Washington Mutual, Inc.
     were a bank holding company subject to Federal Reserve Board
     capital requirements.

(7) Capital ratios for Washington Mutual Bank ("WMB") at September 30,
     2007 are preliminary.

(8) Includes six million shares held in escrow.
WM-2
                       Washington Mutual, Inc.
                  Consolidated Statements of Income
             (dollars in millions, except per share data)
                             (unaudited)


                                        Quarter Ended
----------------------------------------------------------------------
                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                            2007     2007     2007     2006      2006
----------------------------------------------------------------------
Interest Income
  Loans held for sale   $    248 $    421 $    562 $    515  $    435
  Loans held in
   portfolio               3,992    3,786    3,900    4,053     4,012
  Available-for-sale
   securities                392      351      332      392       379
  Trading assets             108      108      113      102       140
  Other interest and
   dividend income           116       82      101      148       139
----------------------------------------------------------------------
    Total interest
     income                4,856    4,748    5,008    5,210     5,105
Interest Expense
  Deposits                 1,650    1,723    1,772    1,843     1,739
  Borrowings               1,192      991    1,155    1,369     1,419
----------------------------------------------------------------------
    Total interest
     expense               2,842    2,714    2,927    3,212     3,158
----------------------------------------------------------------------
      Net interest
       income              2,014    2,034    2,081    1,998     1,947
  Provision for loan
   and lease losses          967      372      234      344       166
----------------------------------------------------------------------
      Net interest
       income after
       provision for
       loan and lease
       losses              1,047    1,662    1,847    1,654     1,781
Noninterest Income
  Revenue from sales
   and servicing of
   home mortgage loans       161      300      125      164       118
  Revenue from sales
   and servicing of
   consumer loans            418      403      443      372       355
  Depositor and other
   retail banking fees       740      720      665      692       655
  Credit card fees           209      183      172      182       165
  Securities fees and
   commissions                67       70       60       54        52
  Insurance income            29       29       29       30        31
  Gain (loss) on
   trading assets           (153)    (145)    (108)     (81)       68
  Gain (loss) from
   sales of other
   available-for-sale
   securities                (99)       7       35       (1)       (1)
  Other income                 7      191      120      180       127
----------------------------------------------------------------------
    Total noninterest
     income                1,379    1,758    1,541    1,592     1,570
Noninterest Expense
  Compensation and
   benefits                  910      977    1,002      945       939
  Occupancy and
   equipment                 371      354      376      476       408
  Telecommunications
   and outsourced
   information services      135      132      129      133       142
  Depositor and other
   retail banking
   losses                     71       58       61       64        57
  Advertising and
   promotion                 125      113       98      107       124
  Professional fees           52       55       38       89        57
  Other expense              489      449      401      443       457
----------------------------------------------------------------------
    Total noninterest
     expense               2,153    2,138    2,105    2,257     2,184
  Minority interest
   expense                    53       42       43       34        34
----------------------------------------------------------------------
       Income from
        continuing
        operations
        before income
        taxes                220    1,240    1,240      955     1,133
       Income taxes           10      410      456      315       394
----------------------------------------------------------------------
          Income from
           continuing
           operations        210      830      784      640       739
----------------------------------------------------------------------
Discontinued
 Operations(1)
       Income from
        discontinued
        operations
        before income
        taxes                  -        -        -        2        14
       Gain on
        disposition of
        discontinued
        operations             -        -        -      667         -
       Income taxes            -        -        -      251         5
----------------------------------------------------------------------
          Income from
           discontinued
           operations          -        -        -      418         9
----------------------------------------------------------------------
Net Income              $    210 $    830 $    784 $  1,058  $    748
======================================================================
Net Income Available to
 Common Stockholders    $    202 $    822 $    777 $  1,050  $    748
======================================================================

Basic Earnings Per
 Common Share:
  Income from
   continuing
   operations           $   0.24 $   0.95 $   0.89 $   0.68  $   0.78
  Income from
   discontinued
   operations                  -        -        -     0.45      0.01
                        ----------------------------------------------
    Net Income              0.24     0.95     0.89     1.13      0.79

Diluted Earnings Per
 Common Share:
  Income from
   continuing
   operations           $   0.23 $   0.92 $   0.86 $   0.66  $   0.76
  Income from
   discontinued
   operations                  -        -        -     0.44      0.01
                        ----------------------------------------------
    Net Income              0.23     0.92     0.86     1.10      0.77

Dividends declared per
 common share               0.56     0.55     0.54     0.53      0.52
Basic weighted average
 number of common
 shares outstanding (in
 thousands)              857,005  868,968  874,816  931,484   941,898
Diluted weighted
 average number of
 common shares
 outstanding (in
 thousands)              876,002  893,090  899,706  955,817   967,376




__________________

(1) Represents WM Advisors, Inc., the Company's retail mutual fund
     management business, which was sold in the fourth quarter of
     2006.
WM-3
                       Washington Mutual, Inc.
                  Consolidated Statements of Income
             (dollars in millions, except per share data)
                             (unaudited)

                                                    Nine Months Ended
----------------------------------------------------------------------
                                                   Sept. 30, Sept. 30,
                                                       2007      2006
----------------------------------------------------------------------
Interest Income
  Loans held for sale                              $  1,232  $  1,292
  Loans held in portfolio                            11,678    11,480
  Available-for-sale securities                       1,075     1,068
  Trading assets                                        329       503
  Other interest and dividend income                    299       354
----------------------------------------------------------------------
    Total interest income                            14,613    14,697
Interest Expense
  Deposits                                            5,145     4,420
  Borrowings                                          3,337     4,154
----------------------------------------------------------------------
    Total interest expense                            8,482     8,574
----------------------------------------------------------------------
      Net interest income                             6,131     6,123
  Provision for loan and lease losses                 1,574       472
----------------------------------------------------------------------
      Net interest income after provision for loan
       and lease losses                               4,557     5,651
Noninterest Income
  Revenue from sales and servicing of home
   mortgage loans                                       586       603
  Revenue from sales and servicing of consumer
   loans                                              1,264     1,155
  Depositor and other retail banking fees             2,125     1,875
  Credit card fees                                      564       456
  Securities fees and commissions                       197       161
  Insurance income                                       87        97
  Loss on trading assets                               (406)      (74)
  Loss from sales of other available-for-sale
   securities                                           (58)       (8)
  Other income                                          319       521
----------------------------------------------------------------------
    Total noninterest income                          4,678     4,786
Noninterest Expense
  Compensation and benefits                           2,889     2,992
  Occupancy and equipment                             1,102     1,235
  Telecommunications and outsourced information
   services                                             396       421
  Depositor and other retail banking losses             190       165
  Advertising and promotion                             337       335
  Professional fees                                     145       138
  Other expense                                       1,337     1,265
----------------------------------------------------------------------
    Total noninterest expense                         6,396     6,551
  Minority interest expense                             138        71
----------------------------------------------------------------------
        Income from continuing operations before
         income taxes                                 2,701     3,815
        Income taxes                                    876     1,341
----------------------------------------------------------------------
          Income from continuing operations           1,825     2,474
----------------------------------------------------------------------
Discontinued Operations(1)
        Income from discontinued operations before
         income taxes                                     -        42
        Income taxes                                      -        15
----------------------------------------------------------------------
          Income from discontinued operations             -        27
----------------------------------------------------------------------
Net Income                                         $  1,825  $  2,501
======================================================================
Net Income Available to Common Stockholders        $  1,802  $  2,501
======================================================================

Basic Earnings Per Common Share:
  Income from continuing operations                $   2.08  $   2.59
  Income from discontinued operations                     -      0.03
                                                   -------------------
    Net Income                                         2.08      2.62

Diluted Earnings Per Common Share:
  Income from continuing operations                $   2.02  $   2.51
  Income from discontinued operations                     -      0.03
                                                   -------------------
    Net Income                                         2.02      2.54

Dividends declared per common share                    1.65      1.53
Basic weighted average number of common shares
 outstanding (in thousands)                         866,864   954,062
Diluted weighted average number of common shares
 outstanding (in thousands)                         889,534   981,997
_________________________

(1) Represents WM Advisors, Inc., the Company's retail mutual fund
     management business, which was sold in the fourth quarter of
     2006.
WM-4
                       Washington Mutual, Inc.
            Consolidated Statements of Financial Condition
                        (dollars in millions)
                             (unaudited)

                     Sept. 30,  June 30,  Mar. 31,  Dec. 31, Sept. 30,
                         2007      2007      2007      2006      2006
----------------------------------------------------------------------
Assets
  Cash and cash
   equivalents       $ 11,370  $  4,167  $  4,047  $  6,948  $  6,649
  Federal funds sold
   and securities
   purchased under
   agreements to
   resell               4,042     3,267     8,279     3,743     5,102
  Trading assets        3,797     5,534     5,290     4,434     5,391
  Available-for-sale
   securities, total
   amortized cost of
   $28,725, $28,934,
   $22,921, $25,073
   and $29,136:
    Mortgage-backed
     securities        20,562    20,393    16,543    18,601    22,847
    Investment
     securities         7,844     7,947     6,296     6,377     6,170
----------------------------------------------------------------------
      Total
       available-
       for-sale
       securities      28,406    28,340    22,839    24,978    29,017
  Loans held for
   sale                 7,586    19,327    26,874    44,970    23,720
  Loans held in
   portfolio          237,132   214,994   217,021   224,960   241,765
  Allowance for loan
   and lease losses    (1,889)   (1,560)   (1,540)   (1,630)   (1,550)
----------------------------------------------------------------------
      Loans held in
       portfolio,
       net            235,243   213,434   215,481   223,330   240,215
  Investment in
   Federal Home Loan
   Banks                2,808     1,596     2,230     2,705     3,013
  Mortgage servicing
   rights               6,794     7,231     6,507     6,193     6,288
  Goodwill              9,062     9,056     9,052     9,050     8,368
  Other assets         21,002    20,267    19,386    19,937    21,114
----------------------------------------------------------------------
      Total assets   $330,110  $312,219  $319,985  $346,288  $348,877
======================================================================
Liabilities
  Deposits:
    Noninterest-
     bearing
     deposits        $ 31,341  $ 33,557  $ 34,367  $ 33,386  $ 34,667
    Interest-bearing
     deposits         162,939   167,823   175,842   180,570   176,215
----------------------------------------------------------------------
      Total deposits  194,280   201,380   210,209   213,956   210,882
  Federal funds
   purchased and
   commercial paper     2,482     3,390       563     4,778     5,282
  Securities sold
   under agreements
   to repurchase        4,732     9,357     8,323    11,953    13,665
  Advances from
   Federal Home Loan
   Banks               52,530    21,412    24,735    44,297    47,247
  Other borrowings     40,887    40,313    39,430    32,852    33,883
  Other liabilities     8,289     9,212     9,694     9,035     9,501
  Minority interests    2,945     2,945     2,453     2,448     1,959
----------------------------------------------------------------------
      Total
       liabilities    306,145   288,009   295,407   319,319   322,419
Stockholders' equity
  Preferred stock         492       492       492       492       492
  Capital surplus -
   common stock         2,575     2,715     3,121     5,825     5,761
  Accumulated other
   comprehensive
   loss                  (390)     (568)     (268)     (287)     (180)
  Retained earnings    21,288    21,571    21,233    20,939    20,385
----------------------------------------------------------------------
      Total
       stockholders'
       equity          23,965    24,210    24,578    26,969    26,458
----------------------------------------------------------------------
      Total
       liabilities
       and
       stockholders'
       equity        $330,110  $312,219  $319,985  $346,288  $348,877
======================================================================
WM-5
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                      Quarter Ended
----------------------------------------------------------------------
                    Sept. 30, June 30, Mar. 31,   Dec. 31,   Sept. 30,
                        2007     2007     2007       2006        2006
----------------------------------------------------------------------
Stockholders'
 Equity Rollforward
Balance, beginning
 of period           $24,210  $24,578  $26,969    $26,458     $26,131
Net income               210      830      784      1,058         748
Cumulative effect
 from the adoption
 of new accounting
 pronouncements            -        -       (6)(1)   (157)(2)       -
Other comprehensive
 income (loss), net
 of income taxes         177     (300)      19         50         419
Cash dividends
 declared on common
 stock                  (485)    (484)    (476)      (496)       (497)
Cash dividends
 declared on
 preferred stock          (8)      (8)      (7)        (8)          -
Common stock
 repurchased and
 retired(3)             (199)    (500)  (2,797)         -        (930)
Common stock issued       60       94       92         64          95
Preferred stock
 issued                    -        -        -          -         492
----------------------------------------------------------------------
Balance, end of
 period              $23,965  $24,210  $24,578    $26,969     $26,458
======================================================================


_________________________

(1) As of January 1, 2007, the Company adopted FASB Interpretation No.
     48, Accounting for Uncertainty in Income Taxes.

(2) On December 31, 2006, the Company adopted Statement of Financial
     Accounting Standards ("Statement") No. 158, Employers' Accounting
     for Defined Benefit Pension and Other Postretirement Plans.
     Statement No. 158 requires an entity to recognize the overfunded
     or underfunded status of its defined benefit postretirement plans
     as an asset or liability in its statement of financial condition
     and to recognize changes, through comprehensive income, in that
     funded status in the year in which the changes occur. The
     cumulative effects, net of income taxes, resulted in a $274
     million decrease to December 31, 2006 other assets and a $117
     million decrease to December 31, 2006 other liabilities.

(3) The Company repurchased 7.2 million, 13.5 million, 61.4 million,
     1.7 million and 18.8 million shares of its common stock in the
     three months ended September 30, 2007, June 30, 2007, March 31,
     2007, December 31, 2006 and September 30, 2006. At September 30,
     2007, the total remaining common stock repurchase authority was
     47.5 million shares.
WM-6
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                      Quarter Ended
----------------------------------------------------------------------
                    Sept. 30,  June 30,  Mar. 31,  Dec. 31, Sept. 30,
                        2007      2007      2007      2006      2006
----------------------------------------------------------------------
RETAIL BANKING
 GROUP
  Condensed income
   statement:
    Net interest
     income         $  1,302  $  1,283  $  1,275  $  1,239  $  1,260
    Provision for
     loan and lease
     losses              318        91        62        47        53
    Noninterest
     income              833       819       751       774       738
    Inter-segment
     revenue              14        21        22        17        17
    Noninterest
     expense           1,155     1,137     1,074     1,100     1,079
----------------------------------------------------------------------
    Income from
     continuing
     operations
     before income
     taxes               676       895       912       883       883
    Income taxes         223       336       342       337       337
----------------------------------------------------------------------
      Income from
       continuing
       operations        453       559       570       546       546
      Income from
       discontinued
       operations          -         -         -        12         9
----------------------------------------------------------------------
        Net income  $    453  $    559  $    570  $    558  $    555
======================================================================
  Performance and
   other data:
    Efficiency
     ratio             53.75%    53.56%    52.43%    54.22%    53.55%
    Average loans   $147,357  $149,716  $155,206  $172,013  $180,829
    Average assets   157,196   159,518   165,047   182,240   191,288
    Average
     deposits:
      Checking
       deposits:
      Noninterest
       bearing        22,860    23,107    22,331    21,873    21,440
      Interest
       bearing        28,406    30,282    31,739    33,010    34,792
----------------------------------------------------------------------
      Total
       checking
       deposits       51,266    53,389    54,070    54,883    56,232
      Savings and
       money market
       deposits       43,524    43,814    43,103    41,442    38,317
      Time deposits   50,131    48,049    46,857    47,188    45,405
----------------------------------------------------------------------
        Average
         deposits    144,921   145,252   144,030   143,513   139,954
    Loan volume        6,469     5,753     5,079     5,331     4,965
    Employees at
     end of period    28,263    28,131    27,837    27,629    27,998
CARD SERVICES GROUP
 Managed basis(1)
  Condensed income
   statement:
    Net interest
     income         $    689  $    660  $    653  $    664  $    633
    Provision for
     loan and lease
     losses              611       523       388       555       345
    Noninterest
     income              399       393       474       451       343
    Inter-segment
     expense               5         5         4         2         2
    Noninterest
     expense             320       300       325       316       294
----------------------------------------------------------------------
    Income before
     income taxes        152       225       410       242       335
    Income taxes          50        84       154        92       128
----------------------------------------------------------------------
        Net income  $    102  $    141  $    256  $    150  $    207
======================================================================
  Performance and
   other data:
    Efficiency
     ratio             29.56%    28.68%    28.96%    28.40%    30.16%
    Average loans   $ 25,718  $ 24,234  $ 23,604  $ 22,875  $ 21,706
    Average assets    28,206    26,762    26,039    25,472    24,236
    Employees at
     end of period     2,878     2,827     2,579     2,611     2,667

 Securitization
  adjustments
  Condensed income
   statement:
    Net interest
     income         $   (456) $   (459) $   (414) $   (437) $   (411)
    Provision for
     loan and lease
     losses             (288)     (294)     (282)     (280)     (220)
    Noninterest
     income              168       165       132       157       191
  Performance and
   other data:
    Average loans    (14,488)  (13,888)  (12,507)  (12,811)  (12,169)
    Average assets   (12,841)  (12,287)  (10,961)  (11,035)  (10,330)

 Adjusted basis
  Condensed income
   statement:
    Net interest
     income         $    233  $    201  $    239  $    227  $    222
    Provision for
     loan and lease
     losses              323       229       106       275       125
    Noninterest
     income              567       558       606       608       534
    Inter-segment
     expense               5         5         4         2         2
    Noninterest
     expense             320       300       325       316       294
----------------------------------------------------------------------
    Income before
     income taxes        152       225       410       242       335
    Income taxes          50        84       154        92       128
----------------------------------------------------------------------
        Net income  $    102  $    141  $    256  $    150  $    207
======================================================================
  Performance and
   other data:
   Average loans    $ 11,230  $ 10,346  $ 11,097  $ 10,064  $  9,537
   Average assets     15,365    14,475    15,078    14,437    13,906


                       Nine Months Ended
-------------------------------------------
                      Sept. 30,   Sept. 30,
                          2007        2006
-------------------------------------------
RETAIL BANKING
 GROUP
  Condensed income
   statement:
    Net interest
     income          $   3,861  $    3,929
    Provision for
     loan and lease
     losses                471         120
    Noninterest
     income              2,404       2,140
    Inter-segment
     revenue                57          47
    Noninterest
     expense             3,367       3,268
-------------------------------------------
    Income from
     continuing
     operations
     before income
     taxes               2,484       2,728
    Income taxes           901       1,043
-------------------------------------------
      Income from
       continuing
       operations        1,583       1,685
      Income from
       discontinued
       operations            -          27
-------------------------------------------
        Net income   $   1,583  $    1,712
===========================================
  Performance and
   other data:
    Efficiency
     ratio               53.26%      53.44%
    Average loans    $ 150,731  $  179,216
    Average assets     160,559     189,587
    Average
     deposits:
      Checking
       deposits:
      Noninterest
       bearing          22,768      21,072
      Interest
       bearing          30,130      37,531
-------------------------------------------
      Total
       checking
       deposits         52,898      58,603
      Savings and
       money market
       deposits         43,482      37,967
      Time deposits     48,358      42,706
-------------------------------------------
        Average
         deposits      144,738     139,276
    Loan volume         17,301      16,274
    Employees at
     end of period      28,263      27,998
CARD SERVICES GROUP
 Managed basis(1)
  Condensed income
   statement:
    Net interest
     income          $   2,004  $    1,866
    Provision for
     loan and lease
     losses              1,523       1,092
    Noninterest
     income              1,267       1,076
    Inter-segment
     expense                14           4
    Noninterest
     expense               946         884
-------------------------------------------
    Income before
     income taxes          788         962
    Income taxes           288         368
-------------------------------------------
        Net income   $     500  $      594
===========================================
  Performance and
   other data:
    Efficiency
     ratio               29.06%      30.08%
    Average loans    $  24,527  $   20,762
    Average assets      27,010      23,354
    Employees at
     end of period       2,878       2,667

 Securitization
  adjustments
  Condensed income
   statement:
    Net interest
     income          $  (1,330) $   (1,249)
    Provision for
     loan and lease
     losses               (865)       (662)
    Noninterest
     income                465         587
  Performance and
   other data:
    Average loans      (13,635)    (11,947)
    Average assets     (12,036)    (10,101)

 Adjusted basis
  Condensed income
   statement:
    Net interest
     income          $     674  $      617
    Provision for
     loan and lease
     losses                658         430
    Noninterest
     income              1,732       1,663
    Inter-segment
     expense                14           4
    Noninterest
     expense               946         884
-------------------------------------------
    Income before
     income taxes          788         962
    Income taxes           288         368
-------------------------------------------
        Net income   $     500  $      594
===========================================
  Performance and
   other data:
   Average loans     $  10,892  $    8,815
   Average assets       14,974      13,253


(This table is continued on "WM-7.")
__________________________

(1) The managed basis presentation treats securitized and sold credit
     card receivables as if they were still on the balance sheet. The
     Company uses this basis in assessing the overall performance of
     this operating segment. The managed basis presentation of the
     Card Services Group is derived by adjusting the GAAP financial
     information to add back securitized loan balances and the related
     interest, fee income and provision for credit losses. Such
     adjustments are eliminated as securitization adjustments when
     reporting GAAP results.
WM-7
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                       Quarter Ended
----------------------------------------------------------------------
(This table is
 continued from
 "WM-6.")              Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                           2007     2007     2007     2006      2006
----------------------------------------------------------------------
COMMERCIAL GROUP
  Condensed income
   statement:
    Net interest
     income             $   193  $   195  $   200  $   189   $   159
    Provision for
     loan and lease
     losses                  12        2      (10)     (69)       (2)
    Noninterest
     income                 (34)      62       14       40        25
    Noninterest
     expense                 67       74       74       72        60
----------------------------------------------------------------------
    Income before
     income taxes            80      181      150      226       126
    Income taxes             26       68       56       86        48
----------------------------------------------------------------------
      Net income        $    54  $   113  $    94  $   140   $    78
======================================================================
  Performance and
   other data:
    Efficiency
     ratio                41.88%   28.77%   34.52%   31.49%    32.21%
    Average loans       $38,333  $38,789  $38,641  $37,552   $32,414
    Average assets       40,661   41,181   41,001   40,216    34,560
    Average
     deposits             7,851    6,160    3,762    3,609     2,323
    Loan volume           4,054    4,348    3,671    4,019     3,104
    Employees at
     end of period        1,421    1,404    1,351    1,409     1,242
HOME LOANS GROUP
  Condensed income
   statement:
    Net interest
     income             $   183  $   215  $   245  $   273   $   276
    Provision for
     loan and lease
     losses                 323      101       49       47        84
    Noninterest
     income                 184      391      162      126       314
    Inter-segment
     expense                  9       16       18       15        15
    Noninterest
     expense                554      548      521      534       528
----------------------------------------------------------------------
    Income (loss)
     before income
     taxes                 (519)     (59)    (181)    (197)      (37)
    Income taxes
     (benefit)             (171)     (22)     (68)     (75)      (14)
----------------------------------------------------------------------
      Net income
       (loss)           $  (348) $   (37) $  (113) $  (122)  $   (23)
======================================================================
  Performance and
   other data:
    Efficiency
     ratio               154.63%   92.82%  133.90%  138.93%    92.00%
    Average loans       $43,737  $43,312  $53,254  $51,048   $45,407
    Average assets       61,068   60,314   71,367   71,503    70,563
    Average
     deposits            13,745   17,506   16,767   19,788    20,659
    Loan volume          26,434   35,857   34,022   37,532    41,241
    Employees at
     end of period       12,167   12,666   12,952   12,941    13,857
CORPORATE
 SUPPORT/TREASURY
 AND OTHER
  Condensed income
   statement:
    Net interest
     income
     (expense)          $   (35) $     2  $   (15) $   (64)  $  (107)
    Provision for
     loan and lease
     losses                  (9)     (51)      27       44       (94)
    Noninterest
     income                (108)      43       81      142        75
    Noninterest
     expense                 57       79      111      235       223
    Minority
     interest
     expense                 53       42       43       34        34
----------------------------------------------------------------------
    Loss from
     continuing
     operations
     before income
     taxes                 (244)     (25)    (115)    (235)     (195)
    Income taxes
     (benefit)              (58)     (40)     (71)    (103)      (90)
----------------------------------------------------------------------
      Loss from
       continuing
       operations          (186)      15      (44)    (132)     (105)
      Income from
       discontinued
       operations             -        -        -      406         -
----------------------------------------------------------------------
         Net income
          (loss)        $  (186) $    15  $   (44) $   274   $  (105)
======================================================================
  Performance and
   other data:
    Average loans       $ 1,420  $ 1,367  $ 1,345  $ 1,310   $ 1,245
    Average assets       47,570   41,817   40,891   46,233    40,825
    Average
     deposits            32,132   37,847   46,205   47,891    45,976
    Loan volume             113       72      107      144        58
    Employees at
     end of period        5,019    4,961    4,974    5,234     5,292


                      Nine Months Ended
-----------------------------------------
(This table is
 continued from
 "WM-6.")            Sept. 30,  Sept. 30,
                         2007       2006
-----------------------------------------
COMMERCIAL GROUP
  Condensed income
   statement:
    Net interest
     income          $    588  $     488
    Provision for
     loan and lease
     losses                 5        (12)
    Noninterest
     income                41         54
    Noninterest
     expense              214        184
-----------------------------------------
    Income before
     income taxes         410        370
    Income taxes          150        141
-----------------------------------------
      Net income     $    260  $     229
=========================================
  Performance and
   other data:
    Efficiency
     ratio              34.03%     33.92%
    Average loans    $ 38,586  $  31,774
    Average assets     40,946     33,997
    Average
     deposits           5,939      2,274
    Loan volume        12,073      8,835
    Employees at
     end of period      1,421      1,242
HOME LOANS GROUP
  Condensed income
   statement:
    Net interest
     income          $    644  $     904
    Provision for
     loan and lease
     losses               474        141
    Noninterest
     income               736      1,176
    Inter-segment
     expense               43         43
    Noninterest
     expense            1,622      1,765
-----------------------------------------
    Income (loss)
     before income
     taxes               (759)       131
    Income taxes
     (benefit)           (261)        50
-----------------------------------------
      Net income
       (loss)        $   (498) $      81
=========================================
  Performance and
   other data:
    Efficiency
     ratio             121.30%     86.65%
    Average loans    $ 46,733  $  46,419
    Average assets     64,212     73,199
    Average
     deposits          15,995     19,120
    Loan volume        96,312    134,037
    Employees at
     end of period     12,167     13,857
CORPORATE
 SUPPORT/TREASURY
 AND OTHER
  Condensed income
   statement:
    Net interest
     income
     (expense)       $    (49) $    (210)
    Provision for
     loan and lease
     losses               (34)      (207)
    Noninterest
     income                16        137
    Noninterest
     expense              247        450
    Minority
     interest
     expense              138         71
-----------------------------------------
    Loss from
     continuing
     operations
     before income
     taxes               (384)      (387)
    Income taxes
     (benefit)           (170)      (197)
-----------------------------------------
      Loss from
       continuing
       operations        (214)      (190)
      Income from
       discontinued
       operations           -          -
-----------------------------------------
         Net income
          (loss)     $   (214) $    (190)
=========================================
  Performance and
   other data:
    Average loans    $  1,377  $   1,063
    Average assets     43,450     38,865
    Average
     deposits          38,676     39,461
    Loan volume           292        163
    Employees at
     end of period      5,019      5,292


(This table is continued on "WM-8.")
WM-8
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                      Quarter Ended
----------------------------------------------------------------------
(This table is
 continued from
 "WM-7.")           Sept. 30,  June 30,  Mar. 31,  Dec. 31, Sept. 30,
                        2007      2007      2007      2006      2006
----------------------------------------------------------------------
RECONCILING
 ADJUSTMENTS
  Condensed income
   statement:
    Net interest
     income(1)      $    138  $    138  $    137  $    134  $    137
    Noninterest
     income
     (expense)(2)        (63)     (115)      (73)      (98)     (116)
----------------------------------------------------------------------
    Income before
     income taxes         75        23        64        36        21
    Income taxes
     (benefit)(3)        (60)      (16)       43       (22)      (15)
----------------------------------------------------------------------
        Net income  $    135  $     39  $     21  $     58  $     36
======================================================================
  Performance and
   other data:
    Average
     loans(4)       $ (1,385) $ (1,301) $ (1,479) $ (1,573) $ (1,600)
    Average
     assets(4)        (1,385)   (1,301)   (1,479)   (1,573)   (1,600)

TOTAL CONSOLIDATED
  Condensed income
   statement:
    Net interest
     income         $  2,014  $  2,034  $  2,081  $  1,998  $  1,947
    Provision for
     loan and lease
     losses              967       372       234       344       166
    Noninterest
     income            1,379     1,758     1,541     1,592     1,570
    Noninterest
     expense           2,153     2,138     2,105     2,257     2,184
    Minority
     interest
     expense              53        42        43        34        34
----------------------------------------------------------------------
    Income from
     continuing
     operations
     before income
     taxes               220     1,240     1,240       955     1,133
    Income taxes          10       410       456       315       394
----------------------------------------------------------------------
      Income from
       continuing
       operations        210       830       784       640       739
      Income from
       discontinued
       operations          -         -         -       418         9
----------------------------------------------------------------------
        Net income  $    210  $    830  $    784  $  1,058  $    748
======================================================================
  Performance and
   other data:
    Efficiency
     ratio             63.42%    56.38%    58.13%    62.87%    62.09%
    Average loans   $240,692  $242,229  $258,064  $270,414  $267,832
    Average assets   320,475   316,004   331,905   353,056   349,542
    Average
     deposits        198,649   206,765   210,764   214,801   208,912
    Loan volume       37,070    46,030    42,879    47,026    49,368
    Employees at
     end of period    49,748    49,989    49,693    49,824    51,056


                      Nine Months Ended
----------------------------------------
(This table is
 continued from
 "WM-7.")            Sept. 30, Sept. 30,
                         2007      2006
----------------------------------------
RECONCILING
 ADJUSTMENTS
  Condensed income
   statement:
    Net interest
     income(1)       $    413  $    395
    Noninterest
     income
     (expense)(2)        (251)     (384)
----------------------------------------
    Income before
     income taxes         162        11
    Income taxes
     (benefit)(3)         (32)      (64)
----------------------------------------
        Net income   $    194  $     75
========================================
  Performance and
   other data:
    Average
     loans(4)        $ (1,388) $ (1,591)
    Average
     assets(4)         (1,388)   (1,591)

TOTAL CONSOLIDATED
  Condensed income
   statement:
    Net interest
     income          $  6,131  $  6,123
    Provision for
     loan and lease
     losses             1,574       472
    Noninterest
     income             4,678     4,786
    Noninterest
     expense            6,396     6,551
    Minority
     interest
     expense              138        71
----------------------------------------
    Income from
     continuing
     operations
     before income
     taxes              2,701     3,815
    Income taxes          876     1,341
----------------------------------------
      Income from
       continuing
       operations       1,825     2,474
      Income from
       discontinued
       operations           -        27
----------------------------------------
        Net income   $  1,825  $  2,501
========================================
  Performance and
   other data:
    Efficiency
     ratio              59.18%    60.05%
    Average loans    $246,931  $265,696
    Average assets    322,753   347,310
    Average
     deposits         205,348   200,131
    Loan volume       125,978   159,309
    Employees at
     end of period     49,748    51,056

__________________________

(1) Represents the difference between mortgage loan premium
     amortization recorded by the Retail Banking Group and the amount
     recognized in the Company's Consolidated Statements of Income.
     For management reporting purposes, certain mortgage loans that
     are held in portfolio by the Retail Banking Group are treated as
     if they are purchased from the Home Loans Group. Since the cost
     basis of these loans includes an assumed profit factor paid to
     the Home Loans Group, the amortization of loan premiums recorded
     by the Retail Banking Group reflects this assumed profit factor
     and must therefore be eliminated as a reconciling adjustment.

(2) Represents the difference between gain from mortgage loans
     recorded by the Home Loans Group and gain from mortgage loans
     recognized in the Company's Consolidated Statements of Income.

(3) Represents the tax effect of reconciling adjustments.

(4) Represents the inter-segment offset for inter-segment loan
     premiums that the Retail Banking Group recognized upon transfer
     of portfolio loans from the Home Loans Group.
WM-9
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                                  Quarter Ended
----------------------------------------------------------------------
                                                 Sept. 30, 2007
                                            ------------------------
                                                            Interest
                                                            Income/
                                             Balance  Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets(1):
   Federal funds sold and securities
    purchased under
      agreements to resell                  $  4,349  5.43%   $   60
   Trading assets                              4,509  9.54       108
   Available-for-sale securities(2)           28,536  5.49       392
   Loans held for sale                        13,344  7.41       248
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(3)(4)                     97,398  6.48     1,579
         Home equity loans and lines of
          credit(4)                           57,469  7.56     1,094
         Subprime mortgage channel(5)         20,405  6.63       338
         Home construction(6)                  2,056  6.90        35
         Multi-family                         30,058  6.63       498
         Other real estate                     7,418  6.99       131
----------------------------------------------------        --------
           Total loans secured by real
            estate                           214,804  6.83     3,675
      Consumer:
         Credit card                          10,332 10.28       268
         Other                                   233 14.83         8
      Commercial                               1,979  8.25        41
----------------------------------------------------        --------
           Total loans held in portfolio     227,348  7.01     3,992
  Other                                        5,177  4.33        56
----------------------------------------------------        --------
           Total interest-earning assets     283,263  6.84     4,856
Noninterest-earning assets:
   Mortgage servicing rights                   6,901
   Goodwill                                    9,056
   Other assets                               21,255
----------------------------------------------------
           Total assets                     $320,475
====================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits    $ 28,492  2.36       169
      Savings and money market deposits       57,377  3.32       480
      Time deposits                           80,719  4.92     1,001
----------------------------------------------------        --------
           Total interest-bearing deposits   166,588  3.93     1,650
   Federal funds purchased and commercial
    paper                                      2,991  5.40        41
   Securities sold under agreements to
    repurchase                                 8,617  5.34       116
   Advances from Federal Home Loan Banks      34,128  5.39       464
   Other                                      40,567  5.60       571
----------------------------------------------------        --------
           Total interest-bearing
            liabilities                      252,891  4.46     2,842
                                                            --------
Noninterest-bearing sources:
   Noninterest-bearing deposits               32,061
   Other liabilities                           8,584
   Minority interests                          2,945
   Stockholders' equity                       23,994
----------------------------------------------------
           Total liabilities and
            stockholders' equity            $320,475
====================================================
   Net interest spread and net interest
    income                                            2.38    $2,014
                                                            ========
   Impact of noninterest-bearing sources              0.48
   Net interest margin                                2.86

                                                  Quarter Ended
----------------------------------------------------------------------
                                                 June 30, 2007
                                           -------------------------
                                                            Interest
                                                            Income/
                                             Balance  Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets(1):
   Federal funds sold and securities
    purchased under
      agreements to resell                  $  3,964  5.39%   $   53
   Trading assets                              4,995  8.67       108
   Available-for-sale securities(2)           26,559  5.28       351
   Loans held for sale                        26,225  6.43       421
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(3)(4)                     90,818  6.44     1,462
         Home equity loans and lines of
          credit(4)                           54,431  7.59     1,031
         Subprime mortgage channel(5)         20,152  6.80       343
         Home construction(6)                  2,043  6.72        34
         Multi-family                         29,419  6.63       488
         Other real estate                     6,843  7.03       120
----------------------------------------------------        --------
           Total loans secured by real
            estate                           203,706  6.83     3,478
      Consumer:
         Credit card                          10,101 10.44       263
         Other                                   254 12.44         8
      Commercial                               1,943  7.73        37
----------------------------------------------------        --------
           Total loans held in portfolio     216,004  7.02     3,786
  Other                                        2,089  5.47        29
----------------------------------------------------        --------
           Total interest-earning assets     279,836  6.79     4,748
Noninterest-earning assets:
   Mortgage servicing rights                   6,782
   Goodwill                                    9,054
   Other assets                               20,332
----------------------------------------------------
           Total assets                     $316,004
====================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits    $ 30,373  2.51       190
      Savings and money market deposits       58,969  3.33       490
      Time deposits                           84,330  4.96     1,043
----------------------------------------------------        --------
           Total interest-bearing deposits   173,672  3.98     1,723
   Federal funds purchased and commercial
    paper                                      2,169  5.36        29
   Securities sold under agreements to
    repurchase                                 8,416  5.35       112
   Advances from Federal Home Loan Banks      22,063  5.36       295
   Other                                      39,886  5.57       555
----------------------------------------------------        --------
           Total interest-bearing
            liabilities                      246,206  4.42     2,714
                                                            --------
Noninterest-bearing sources:
   Noninterest-bearing deposits               33,093
   Other liabilities                           9,610
   Minority interests                          2,659
   Stockholders' equity                       24,436
----------------------------------------------------
           Total liabilities and
            stockholders' equity            $316,004
====================================================
   Net interest spread and net interest
    income                                            2.37    $2,034
                                                            ========
   Impact of noninterest-bearing sources              0.53
   Net interest margin                                2.90

                                                   Quarter Ended
----------------------------------------------------------------------
                                                   Sept. 30, 2006
                                             -------------------------
                                                              Interest
                                                              Income/
                                               Balance  Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets(1):
   Federal funds sold and securities
    purchased under
      agreements to resell                    $  5,085  5.38%   $   70
   Trading assets                                6,264  8.92       140
   Available-for-sale securities(2)             28,398  5.33       379
   Loans held for sale                          25,667  6.75       435
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(3)(4)                      123,355  5.94     1,830
         Home equity loans and lines of
          credit(4)                             52,646  7.53       998
         Subprime mortgage channel(5)           20,207  6.26       316
         Home construction(6)                    2,059  6.41        33
         Multi-family                           27,100  6.42       435
         Other real estate                       5,696  6.76        98
------------------------------------------------------        --------
           Total loans secured by real estate  231,063  6.41     3,710
      Consumer:
         Credit card                             9,058 11.39       260
         Other                                     284 12.57         9
      Commercial                                 1,760  7.33        33
------------------------------------------------------        --------
           Total loans held in portfolio       242,165  6.61     4,012
  Other                                          5,248  5.21        69
------------------------------------------------------        --------
           Total interest-earning assets       312,827  6.51     5,105
Noninterest-earning assets:
   Mortgage servicing rights                     7,201
   Goodwill                                      8,339
   Other assets                                 21,175
------------------------------------------------------
           Total assets                       $349,542
======================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits      $ 34,866  2.90       255
      Savings and money market deposits         49,144  3.19       396
      Time deposits                             90,001  4.76     1,088
------------------------------------------------------        --------
           Total interest-bearing deposits     174,011  3.95     1,739
   Federal funds purchased and commercial
    paper                                        7,382  5.31        99
   Securities sold under agreements to
    repurchase                                  15,676  5.39       216
   Advances from Federal Home Loan Banks        52,886  5.28       711
   Other                                        27,815  5.59       393
------------------------------------------------------        --------
           Total interest-bearing liabilities  277,770  4.48     3,158
                                                              --------
Noninterest-bearing sources:
   Noninterest-bearing deposits                 34,901
   Other liabilities                             8,765
   Minority interests                            1,959
   Stockholders' equity                         26,147
------------------------------------------------------
           Total liabilities and
            stockholders' equity              $349,542
======================================================
   Net interest spread and net interest
    income                                              2.03    $1,947
                                                              ========
   Impact of noninterest-bearing sources                0.50
   Net interest margin                                  2.53

_______________________________

(1) Nonaccrual assets and related income, if any, are included in
     their respective categories.

(2) The average balance and yield are based on average amortized cost
     balances.

(3) Capitalized interest recognized in earnings that resulted from
     negative amortization within the Option ARM portfolio totaled
     $345 million, $344 million and $296 million for the three months
     ended September 30, 2007, June 30, 2007 and September 30, 2006.

(4) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

(5) Represents mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name and held in the investment portfolio.

(6) Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale and construction loans made directly to the
     intended occupant of a single-family residence.
WM-10
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                                Nine Months Ended
---------------------------------------------------------------------
                                                  Sept. 30, 2007
                                             -------------------------
                                                             Interest
                                                             Income/
                                             Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets(1):

  Federal funds sold and securities
   purchased under
  agreements to resell                       $  4,083  5.41%  $   165
  Trading assets                                5,029  8.73       329
  Available-for-sale securities(2)             26,593  5.39     1,075
  Loans held for sale                          24,924  6.59     1,232
  Loans held in portfolio:
    Loans secured by real estate:
      Home loans(3)(4)                         95,194  6.46     4,611
      Home equity loans and lines of
       credit(4)                               54,988  7.57     3,114
      Subprime mortgage channel(5)             20,389  6.70     1,025
      Home construction(6)                      2,053  6.72       103
      Multi-family                             29,768  6.61     1,476
      Other real estate                         7,011  7.02       368
-----------------------------------------------------        ---------
        Total loans secured by real estate    209,403  6.82    10,697
    Consumer:
      Credit card                              10,443 10.78       842
      Other                                       251 13.37        25
    Commercial                                  1,910  7.98       114
-----------------------------------------------------        ---------
        Total loans held in portfolio         222,007  7.02    11,678
  Other                                         3,585  5.01       134
-----------------------------------------------------        ---------
        Total interest-earning assets         286,221  6.81    14,613
Noninterest-earning assets:
  Mortgage servicing rights                     6,665
  Goodwill                                      9,054
  Other assets                                 20,813
-----------------------------------------------------
        Total assets                         $322,753
=====================================================
Liabilities
Interest-bearing liabilities:
  Deposits:
    Interest-bearing checking deposits       $ 30,216  2.50       566
    Savings and money market deposits          57,079  3.31     1,413
    Time deposits                              85,520  4.95     3,166
-----------------------------------------------------        ---------
      Total interest-bearing deposits         172,815  3.98     5,145
  Federal funds purchased and commercial
   paper                                        2,999  5.43       122
  Securities sold under agreements to
   repurchase                                   9,698  5.40       392
  Advances from Federal Home Loan Banks        30,740  5.38     1,237
  Other                                        37,782  5.61     1,586
-----------------------------------------------------        ---------
       Total interest-bearing liabilities     254,034  4.46     8,482
                                                             ---------
Noninterest-bearing sources:
  Noninterest-bearing deposits                 32,533
  Other liabilities                             9,222
  Minority interests                            2,686
  Stockholders' equity                         24,278
-----------------------------------------------------
      Total liabilities and stockholders'
       equity                                $322,753
=====================================================
  Net interest spread and net interest
   income                                              2.35   $ 6,131
                                                             =========
  Impact of noninterest-bearing sources                0.50
  Net interest margin                                  2.85

                                                 Nine Months Ended
----------------------------------------------------------------------
                                                   Sept. 30, 2006
                                             -------------------------
                                                              Interest
                                                              Income/
                                              Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets(1):

  Federal funds sold and securities
   purchased under
  agreements to resell                        $  4,422  5.04%  $   169
  Trading assets                                 8,831  7.60       503
  Available-for-sale securities(2)              27,160  5.24     1,068
  Loans held for sale                           26,659  6.45     1,292
  Loans held in portfolio:
    Loans secured by real estate:
      Home loans(3)(4)                         122,232  5.76     5,282
      Home equity loans and lines of
       credit(4)                                52,068  7.26     2,830
      Subprime mortgage channel(5)              19,939  6.14       918
      Home construction(6)                       2,062  6.41        99
      Multi-family                              26,388  6.19     1,226
      Other real estate                          5,482  6.85       284
------------------------------------------------------        --------
        Total loans secured by real estate     228,171  6.22    10,639
    Consumer:
      Credit card                                8,442 11.16       704
      Other                                        499 10.84        40
    Commercial                                   1,925  6.67        97
------------------------------------------------------        --------
        Total loans held in portfolio          239,037  6.41    11,480
  Other                                          5,191  4.74       185
------------------------------------------------------        --------
        Total interest-earning assets          311,300  6.30    14,697
Noninterest-earning assets:
  Mortgage servicing rights                      8,151
  Goodwill                                       8,313
  Other assets                                  19,546
------------------------------------------------------
        Total assets                          $347,310
======================================================
Liabilities
Interest-bearing liabilities:
  Deposits:
    Interest-bearing checking deposits        $ 37,615  2.59       728
    Savings and money market deposits           47,367  2.81       997
    Time deposits                               80,970  4.42     2,695
------------------------------------------------------        --------
      Total interest-bearing deposits          165,952  3.55     4,420
  Federal funds purchased and commercial
   paper                                         7,537  4.92       279
  Securities sold under agreements to
   repurchase                                   16,294  4.95       612
  Advances from Federal Home Loan Banks         60,197  4.84     2,203
  Other                                         26,901  5.23     1,060
------------------------------------------------------        --------
       Total interest-bearing liabilities      276,881  4.11     8,574
                                                              --------
Noninterest-bearing sources:
  Noninterest-bearing deposits                  34,179
  Other liabilities                              8,445
  Minority interests                             1,497
  Stockholders' equity                          26,308
------------------------------------------------------
      Total liabilities and stockholders'
       equity                                 $347,310
======================================================
  Net interest spread and net interest
   income                                               2.19   $ 6,123
                                                              ========
  Impact of noninterest-bearing sources                 0.45
  Net interest margin                                   2.64

_______________________________

(1) Nonaccrual assets and related income, if any, are included in
     their respective categories.

(2) The average balance and yield are based on average amortized cost
     balances.

(3) Capitalized interest recognized in earnings that resulted from
     negative amortization within the Option ARM portfolio totaled
     $1.05 billion and $735 million for the nine months ended
     September 30, 2007 and September 30, 2006.

(4) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

(5) Represents mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name and held in the investment portfolio.

(6) Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale and construction loans made directly to the
     intended occupant of a single-family residence.
WM-11
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                            Change
                                              from
                                          June 30,
                                           2007 to
                                         Sept. 30, Sept. 30,  June 30,
                                             2007      2007      2007
----------------------------------------------------------------------
Deposits
  Retail deposits:
    Checking deposits:
      Noninterest bearing               $    (421) $ 23,721  $ 24,142
      Interest bearing                     (2,315)   27,277    29,592
----------------------------------------------------------------------
        Total checking deposits            (2,736)   50,998    53,734
    Savings and money market deposits        (257)   43,360    43,617
    Time deposits(1)                        2,600    50,740    48,140
----------------------------------------------------------------------
        Total retail deposits                (393)  145,098   145,491
    Commercial business and other
     deposits                              (2,650)   16,536    19,186
    Brokered deposits:
      Consumer                                331    17,484    17,153
      Institutional                        (2,918)    8,107    11,025
    Custodial and escrow deposits(2)       (1,470)    7,055     8,525
----------------------------------------------------------------------
        Total deposits                  $  (7,100) $194,280  $201,380
======================================================================


                                          Mar. 31,  Dec. 31, Sept. 30,
                                             2007      2006      2006
----------------------------------------------------------------------
Deposits
  Retail deposits:
    Checking deposits:
      Noninterest bearing                $ 24,400  $ 22,838  $ 22,466
      Interest bearing                     31,523    32,723    33,761
----------------------------------------------------------------------
        Total checking deposits            55,923    55,561    56,227
    Savings and money market deposits      44,058    41,943    39,481
    Time deposits(1)                       47,262    46,821    47,361
----------------------------------------------------------------------
        Total retail deposits             147,243   144,325   143,069
    Commercial business and other
     deposits                              17,741    15,175    15,831
    Brokered deposits:
      Consumer                             18,995    22,299    22,430
      Institutional                        17,256    22,339    18,236
    Custodial and escrow deposits(2)        8,974     9,818    11,316
----------------------------------------------------------------------
        Total deposits                   $210,209  $213,956  $210,882
======================================================================


(1) Weighted average remaining maturity of time deposits was 7 months
     at September 30, 2007, 8 months at June 30, 2007, 9 months at
     March 31, 2007 and December 31, 2006 and 10 months at September
     30, 2006.

(2) Substantially all custodial and escrow deposits reside in
     noninterest-bearing checking accounts.


                                                Sept. 30,     June 30,
                                                    2007         2007
----------------------------------------------------------------------
Retail Deposit Accounts (number of
 accounts)
    Noninterest bearing checking              10,824,548   10,449,887
    Interest bearing checking                  1,334,902    1,399,203
    Savings and money market                   7,087,311    6,936,870
----------------------------------------------------------------------
        Total transaction accounts, end of
         period(1)                            19,246,761   18,785,960
======================================================================

    Net change in noninterest bearing
     checking accounts                           374,661      466,574
    Net change in checking accounts              310,360      406,243


                                    Mar. 31,     Dec. 31,    Sept. 30,
                                       2007         2006         2006
----------------------------------------------------------------------
Retail Deposit Accounts (number
 of accounts)
    Noninterest bearing
     checking                     9,983,313    9,611,706    9,403,072
    Interest bearing checking     1,459,534    1,503,365    1,532,215
    Savings and money market      6,708,784    6,525,772    6,379,068
----------------------------------------------------------------------
        Total transaction
         accounts, end of
         period(1)               18,151,631   17,640,843   17,314,355
======================================================================

    Net change in noninterest
     bearing checking accounts      371,607      208,634      339,614
    Net change in checking
     accounts                       327,776      179,784      307,433

_______________________________

(1) Transaction accounts include retail checking, small business
     checking, retail savings and small business savings.


                      Sept. 30, June 30, Mar. 31, Dec. 31,   Sept. 30,
                          2007     2007     2007     2006        2006
----------------------------------------------------------------------
Retail Banking
 Stores
Stores, beginning
 of period               2,235    2,228    2,225    2,225       2,201
  Stores opened
   during the
   quarter                  10       11        6       81 (1)      25
  Stores closed
   during the
   quarter                 (33)      (4)      (3)     (81)         (1)
----------------------------------------------------------------------
Stores, end of
 period                  2,212    2,235    2,228    2,225       2,225
======================================================================

(1) Includes 26 retail banking stores acquired through the merger with
     Commercial Capital Bancorp.
WM-12
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                        Quarter Ended
---------------------------------------------------------------------
                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                            2007     2007     2007     2006      2006
----------------------------------------------------------------------
Loan Volume
   Home loans:
    Short-term
     adjustable-rate
     loans(1):
      Option ARMs        $ 5,865  $ 7,888  $ 7,777  $ 9,487   $11,601
      Other ARMs             111       22       36       13        42
----------------------------------------------------------------------
         Total short-
          term
          adjustable-
          rate loans       5,976    7,910    7,813    9,500    11,643
    Medium-term
     adjustable-rate
     loans(2)             10,177   14,953   13,567   17,323    16,707
    Fixed-rate loans       6,176    8,172    8,824    7,351     8,818
----------------------------------------------------------------------
         Total home
          loan volume     22,329   31,035   30,204   34,174    37,168
   Home equity loans
    and lines of credit    9,835    9,880    8,319    8,098     8,498
   Home construction(3)      483      426      298      298       269
   Multi-family            2,856    3,067    2,663    2,977     2,186
   Other real estate       1,285    1,246    1,080    1,182       983
----------------------------------------------------------------------
         Total loans
          secured by
          real
          estate(4)       36,788   45,654   42,564   46,729    49,104
   Consumer(5)                 6       20       26       23        26
   Commercial                276      356      289      274       238
----------------------------------------------------------------------
         Total loan
          volume         $37,070  $46,030  $42,879  $47,026   $49,368
======================================================================
Loan Volume by Channel
   Retail                $22,520  $25,094  $21,809  $23,594   $21,776
   Wholesale              13,387   16,545   14,853   16,834    15,427
   Purchased               1,163    4,391    6,217    6,398    11,560
   Correspondent               -        -        -      200       605
----------------------------------------------------------------------
         Total loan
          volume by
          channel        $37,070  $46,030  $42,879  $47,026   $49,368
======================================================================
Refinancing Activity(6)
   Home loan
    refinancing          $14,722  $22,637  $22,552  $25,060   $23,993
   Home equity loans
    and lines of credit
    and consumer             143      157      550      599       689
   Home construction
    loans                     30      121      276      283       254
   Multi-family and
    other real estate      1,225    1,378    1,131    2,240     1,398
----------------------------------------------------------------------
         Total
          refinancing    $16,120  $24,293  $24,509  $28,182   $26,334
======================================================================

(1) Short-term is defined as adjustable-rate loans that reprice
     within one year.

(2) Medium-term is defined as adjustable-rate loans that reprice
     after one year.

(3) Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale and construction loans made directly to the
     intended occupant of a single-family residence.

(4) Includes mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name of $483 million, $2.45 billion, $3.48 billion,
     $6.07 billion and $9.40 billion for the three months ended
     September 30, 2007, June 30, 2007, March 31, 2007, December 31,
     2006 and September 30, 2006.

(5) Excludes credit card loan volume.

(6) Includes loan refinancing entered into by both new and pre-
     existing loan customers.
WM-13
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                                    Nine Months Ended
---------------------------------------------------------------------
                                                  Sept. 30,  Sept. 30,
                                                      2007       2006
---------------------------------------------------------- ----------
Loan Volume
   Home loans:
    Short-term adjustable-rate loans(1):
      Option ARMs                                 $ 21,530   $ 33,106
      Other ARMs                                       170      3,372
---------------------------------------------------------- ----------
         Total short-term adjustable-rate loans     21,700     36,478
    Medium-term adjustable-rate loans(2)            38,697     47,613
    Fixed-rate loans                                23,171     40,119
---------------------------------------------------------- ----------
         Total home loan volume                     83,568    124,210
   Home equity loans and lines of credit            28,034     24,055
   Home construction(3)                              1,206      1,183
   Multi-family                                      8,585      6,450
   Other real estate                                 3,611      2,486
---------------------------------------------------------- ----------
         Total loans secured by real estate(4)     125,004    158,384
   Consumer(5)                                          52        111
   Commercial                                          922        814
---------------------------------------------------------- ----------
         Total loan volume                        $125,978   $159,309
========================================================== ==========
Loan Volume by Channel
   Retail                                         $ 69,423   $ 67,344
   Wholesale                                        44,785     47,668
   Purchased                                        11,770     30,911
   Correspondent                                         -     13,386
---------------------------------------------------------- ----------
         Total loan volume by channel             $125,978   $159,309
========================================================== ==========
Refinancing Activity(6)
   Home loan refinancing                          $ 59,911   $ 77,529
Home equity loans and lines of credit and
 consumer                                              851      1,066
   Home construction loans                             426      1,026
   Multi-family and other real estate                3,734      4,173
---------------------------------------------------------- ----------
         Total refinancing                        $ 64,922   $ 83,794
========================================================== ==========

(1) Short-term is defined as adjustable-rate loans that reprice within
     one year.

(2) Medium-term is defined as adjustable-rate loans that reprice after
     one year.

(3) Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale and construction loans made directly to the
     intended occupant of a single-family residence.

(4) Includes mortgage loans purchased from recognized subprime lenders
     and mortgage loans originated under the Long Beach Mortgage name
     of $6.42 billion and $24.69 billion for the nine months ended
     September 30, 2007 and September 30, 2006.

(5) Excludes credit card loan volume.

(6) Includes loan refinancing entered into by both new and pre-
     existing loan customers.
WM-14
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                            Change
                                              from
                                          June 30,
                                          2007 to
                                         Sept. 30, Sept. 30,  June 30,
                                             2007      2007      2007
----------------------------------------------------------------------
Loans Held in Portfolio
  Loans secured by real estate:
    Home:
      Short-term adjustable-rate
       loans(1):
        Option ARMs(2)                    $ 4,403  $ 57,858  $ 53,455
        Other ARMs                         (2,826)   10,712    13,538
----------------------------------------------------------------------
          Total short-term adjustable-
           rate loans                       1,577    68,570    66,993
      Medium-term adjustable-rate
       loans(3)                            13,115    42,762    29,647
      Fixed-rate loans                      2,308    11,813     9,505
----------------------------------------------------------------------
          Total home loans                 17,000   123,145   106,145
    Home equity loans and lines of
     credit                                 3,200    61,831    58,631
    Home construction(4)                       52     2,110     2,058
    Multi-family                            1,541    30,831    29,290
    Other real estate                       1,456     8,335     6,879
----------------------------------------------------------------------
          Total loans secured by real
           estate(5)                       23,249   226,252   203,003
  Consumer:
    Credit card                            (1,122)    8,791     9,913
    Other                                     (19)      224       243
  Commercial                                   30     1,865     1,835
----------------------------------------------------------------------
          Total loans held in portfolio
           (6)                             22,138   237,132   214,994
  Less: allowance for loan and lease
   losses                                    (329)   (1,889)   (1,560)
----------------------------------------------------------------------
          Total loans held in portfolio,
           net                            $21,809  $235,243  $213,434
======================================================================

                                          Mar. 31,  Dec. 31, Sept. 30,
                                             2007      2006      2006
----------------------------------------------------------------------
Loans Held in Portfolio
  Loans secured by real estate:
    Home:
      Short-term adjustable-rate
       loans(1):
        Option ARMs(2)                   $ 58,130  $ 63,557  $ 67,142
        Other ARMs                         13,501    15,091    16,375
----------------------------------------------------------------------
          Total short-term adjustable-
           rate loans                      71,631    78,648    83,517
      Medium-term adjustable-rate
       loans(3)                            29,924    29,774    47,740
      Fixed-rate loans                      9,506     9,782     9,928
----------------------------------------------------------------------
          Total home loans                111,061   118,204   141,185
    Home equity loans and lines of
     credit                                56,123    54,924    54,364
    Home construction(4)                    2,071     2,082     2,077
    Multi-family                           29,515    30,161    27,407
    Other real estate                       6,728     6,745     5,869
----------------------------------------------------------------------
          Total loans secured by real
           estate(5)                      205,498   212,116   230,902
  Consumer:
    Credit card                             9,490    10,861     8,807
    Other                                     261       276       281
  Commercial                                1,772     1,707     1,775
----------------------------------------------------------------------
          Total loans held in portfolio
           (6)                            217,021   224,960   241,765
  Less: allowance for loan and lease
   losses                                  (1,540)   (1,630)   (1,550)
----------------------------------------------------------------------
          Total loans held in portfolio,
           net                           $215,481  $223,330  $240,215
======================================================================


(1) Short-term adjustable-rate loans reprice within one year.

(2) The total amount by which the unpaid principal balance of Option
     ARM loans exceeded their original principal amount was $1.50
     billion, $1.30 billion, $1.12 billion, $888 million and $681
     million at September 30, 2007, June 30, 2007, March 31, 2007,
     December 31, 2006 and September 30, 2006.

(3) Medium-term adjustable-rate loans reprice after one year.

(4) Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale and construction loans made directly to the
     intended occupant of a single-family residence.

(5) Includes subprime mortgage channel loans, comprising mortgage
     loans purchased from recognized subprime lenders and mortgage
     loans originated under the Long Beach Mortgage name and held in
     the investment portfolio as follows:
    ------------------------------------------------------------------
    Subprime
     Mortgage
     Channel          Sept. 30, June 30,  Mar. 31,   Dec. 31,Sept. 30,
                          2007     2007      2007       2006     2006
    ------------------------------------------------------------------
    Home loans         $17,285  $17,602  $ 17,610 $   18,725  $20,083
    Home equity
     loans and
     lines of
     credit              2,711    2,855     2,749      2,042    1,522
    ------------------------------------------------------------------
         Total         $19,996  $20,457  $ 20,359 $   20,767  $21,605
    ==================================================================

(6) Includes net unamortized deferred loan origination costs of $1.33
     billion, $1.33 billion, $1.43 billion, $1.48 billion and $1.61
     billion at September 30, 2007, June 30, 2007, March 31, 2007,
     December 31, 2006 and September 30, 2006.
WM-15
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)




                        Change
                          from
                      June 30,           Weighted            Weighted
                       2007 to            Average             Average
                     Sept. 30, Sept. 30,   Coupon   June 30,   Coupon
                          2007      2007     Rate       2007     Rate
----------------------------------------------------------------------
Selected Loans
 Secured by Real
 Estate
  Home loans held in
   portfolio:
    Short-term
     adjustable-rate
     loans(1):
      Option ARMs    $  4,403  $  57,858     7.62% $ 53,455      7.74%
      Other ARMs       (2,826)    10,712     7.74    13,538      7.28
----------------------------------------           ---------
         Total short-
          term
          adjustable-
          rate loans    1,577     68,570     7.64    66,993      7.65
    Medium-term
     adjustable-rate
     loans(2)          13,115     42,762     6.30    29,647      5.99
    Fixed-rate loans    2,308     11,813     6.74     9,505      6.71
----------------------------------------           ---------
         Total home
          loans held
          in
          portfolio    17,000    123,145     7.09   106,145      7.10
  Home equity loans
   and lines of
   credit:
    Short-term
     (Prime-based or
     treasury-
     based)(1)          1,451     36,446     8.06    34,995      8.47
      Fixed-rate
       loans            1,749     25,385     7.69    23,636      7.68
----------------------------------------           ---------
         Total home
          equity
          loans and
          lines of
          credit        3,200     61,831     7.91    58,631      8.15
  Multi-family loans
   held in portfolio:
    Short-term
     adjustable-rate
     loans(1):
      Option ARMs        (569)     7,081     7.25     7,650      7.28
      Other ARMs         (614)     7,296     6.77     7,910      6.77
----------------------------------------           ---------
         Total short-
          term
          adjustable-
          rate loans   (1,183)    14,377     7.01    15,560      7.02
    Medium-term
     adjustable-rate
     loans(2)           2,701     14,591     6.03    11,890      5.93
    Fixed-rate loans       23      1,863     6.31     1,840      6.35
----------------------------------------           ---------
         Total multi-
          family
          loans held
          in
          portfolio     1,541     30,831     6.50    29,290      6.53
----------------------------------------           ---------
         Total
          selected
          loans held
          in
          portfolio
          secured by
          real
          estate(3)    21,741    215,807     7.24   194,066      7.33
  Loans held for
   sale(4)            (12,772)     6,227     6.36    18,999      6.39
----------------------------------------            --------
         Total
          selected
          loans
          secured by
          real estate$  8,969  $ 222,034     7.21  $213,065      7.25
========================================           =========





                               Weighted
                                Average
                      Sept. 30,  Coupon
                           2006    Rate
----------------------------------------
Selected Loans
 Secured by Real
 Estate
  Home loans held in
   portfolio:
    Short-term
     adjustable-rate
     loans(1):
      Option ARMs     $ 67,142     7.13%
      Other ARMs        16,375     7.01
--------------------- ---------
         Total short-
          term
          adjustable-
          rate loans    83,517     7.11
    Medium-term
     adjustable-rate
     loans(2)           47,740     5.72
    Fixed-rate loans     9,928     6.59
--------------------- ---------
         Total home
          loans held
          in
          portfolio    141,185     6.60
  Home equity loans
   and lines of
   credit:
    Short-term
     (Prime-based or
     treasury-
     based)(1)          35,831     8.40
      Fixed-rate
       loans            18,533     7.16
--------------------- ---------
         Total home
          equity
          loans and
          lines of
          credit        54,364     7.98
  Multi-family loans
   held in portfolio:
    Short-term
     adjustable-rate
     loans(1):
      Option ARMs        8,967     6.95
      Other ARMs         5,858     6.94
--------------------- ---------
         Total short-
          term
          adjustable-
          rate loans    14,825     6.95
    Medium-term
     adjustable-rate
     loans(2)           10,906     5.59
    Fixed-rate loans     1,676     6.45
--------------------- ---------
         Total multi-
          family
          loans held
          in
          portfolio     27,407     6.38
--------------------- ---------
         Total
          selected
          loans held
          in
          portfolio
          secured by
          real
          estate(3)    222,956     6.90
  Loans held for
   sale(4)              23,387     6.64
------------------------------
         Total
          selected
          loans
          secured by
          real estate $246,343     6.88
===================== =========


(1) Short-term adjustable-rate loans reprice within one year.

(2) Medium-term adjustable-rate loans reprice after one year.

(3) At September 30, 2007, June 30, 2007 and September 30, 2006,
     adjustable-rate loans with lifetime caps were $175.21 billion,
     $158.24 billion and $190.36 billion with a lifetime weighted
     average cap rate of 12.44%, 12.96% and 12.13%.

(4) Excludes credit card and student loans.



                                                 June 30,    Dec. 31,
                                                     2007        2006
                                                 to Sept.    to Sept.
                                                 30, 2007    30, 2007
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
  Balance, beginning of period                $ 19,327     $ 44,970
    Mortgage loans originated,
     purchased and transferred from
     held in portfolio                          14,370       73,948
    Mortgage loans transferred to held
     in portfolio                              (17,004)     (19,677)
    Mortgage loans sold and other(1)           (10,138)     (92,768)
    Net change in consumer loans held
     for sale                                    1,031        1,113
---------------------------------------------------------- ---------
  Balance, end of period                      $  7,586     $  7,586
========================================================== =========

Rollforward of Home Loans Held in
 Portfolio
  Balance, beginning of period                $106,145     $118,204
    Loans originated, purchased and
     transferred from held for sale             25,727       36,012
    Loan payments, transferred to held
     for sale and other                         (8,727)     (31,071)
---------------------------------------------------------- ---------
  Balance, end of period                      $123,145     $123,145
========================================================== =========


(1) The unpaid principal balance ("UPB") of home loans sold was $9.03
     billion and $84.58 billion for the three and nine months ended
     September 30, 2007.
WM-16
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                        Quarter Ended
----------------------------------------------------------------------
Detail of Revenue from
 Sales and Servicing of
 Home Mortgage Loans   Sept. 30, June 30, Mar. 31,  Dec. 31, Sept. 30,
                           2007     2007     2007      2006      2006
----------------------------------------------------------------------
Gain (loss) from home
 mortgage loans and
 originated mortgage-
 backed securities,
net of hedging and risk
 management
 instruments(1):
  Gain (loss) from home
   mortgage loans and
   originated mortgage-
   backed securities      $(169)   $  66    $ 149   $    64   $   206
  Revaluation gain
   (loss) from
   derivatives
   economically hedging
   loans held for sale      (53)     126      (54)       91       (87)
----------------------------------------------------------------------
    Gain (loss) from
     home mortgage
     loans and
     originated
     mortgage-backed
     securities, net of
     hedging and risk
     management
     instruments           (222)     192       95       155       119
Home mortgage loan
 servicing revenue
 (expense):
  Home mortgage loan
   servicing revenue(2)     516      526      514       497       525
  Change in MSR fair
   value due to
   payments on loans
   and other               (351)    (401)    (356)     (375)     (410)
----------------------------------------------------------------------
    Net mortgage loan
     servicing revenue      165      125      158       122       115
  Change in MSR fair
   value due to
   valuation inputs or
   assumptions             (201)     530      (96)      (80)     (469)
  Revaluation gain
   (loss) from
   derivatives
   economically hedging
   MSR                      419     (547)     (32)      (33)      353
----------------------------------------------------------------------
    Home mortgage loan
     servicing revenue
     (expense), net of
     MSR valuation
     changes and
     derivative risk
     management
     instruments            383      108       30         9        (1)
    Total revenue from
     sales and
     servicing of home
     mortgage loans       $ 161    $ 300    $ 125   $   164   $   118
======================================================================

                                                    Nine Months Ended
----------------------------------------------------------------------
Detail of Revenue from
 Sales and Servicing of
 Home Mortgage Loans                               Sept. 30, Sept. 30,
                                                       2007      2006
----------------------------------------------------------------------
Gain from home mortgage
 loans and originated
 mortgage-backed
 securities,
net of hedging and risk
 management
 instruments(1):
  Gain from home
   mortgage loans and
   originated mortgage-
   backed securities                                $    45   $   563
  Revaluation gain from
   derivatives
   economically hedging
   loans held for sale                                   20        17
----------------------------------------------------------------------
    Gain from home
     mortgage loans and
     originated
     mortgage-backed
     securities, net of
     hedging and risk
     management
     instruments                                         65       580
Home mortgage loan
 servicing revenue:
  Home mortgage loan
   servicing revenue(2)                               1,557     1,683
  Change in MSR fair
   value due to
   payments on loans
   and other                                         (1,109)   (1,279)
----------------------------------------------------------------------
    Net mortgage loan
     servicing revenue                                  448       404
  Change in MSR fair
   value due to
   valuation inputs or
   assumptions                                          233       379
  Revaluation loss from
   derivatives
   economically hedging
   MSR                                                 (160)     (603)
  Adjustment to MSR
   fair value for MSR
   sale                                                   -      (157)
----------------------------------------------------------------------
    Home mortgage loan
     servicing revenue,
     net of MSR
     valuation changes
     and derivative
     risk management
     instruments                                        521        23
    Total revenue from
     sales and
     servicing of home
     mortgage loans                                 $   586   $   603
======================================================================

(1) Originated mortgage-backed securities represent available-for-sale
     securities retained on the balance sheet subsequent to the
     securitization of mortgage loans that were originated by the
     Company.

(2) Includes contractually specified servicing fees (net of guarantee
     fees paid to government housing-sponsored enterprises, where
     applicable), late charges and loan pool expenses (the shortfall
     of the scheduled interest required to be remitted to investors
     and that which is collected from borrowers upon payoff).
WM-17
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                        Quarter Ended
----------------------------------------------------------------------
                       Sept. 30, June 30, Mar. 31,  Dec. 31, Sept. 30,
                           2007     2007     2007      2006      2006
----------------------------------------------------------------------
MSR Valuation and
 Risk Management:
  Change in MSR
   fair value due
   to valuation
   inputs or
   assumptions            $(201)   $ 530    $ (96)    $ (80)    $(469)
Gain (loss) on MSR
 risk management
 instruments:
  Revaluation gain
   (loss) from
   derivatives              419     (547)     (32)      (33)      353
  Revaluation gain
   (loss) from
   certain trading
   securities                 4       (4)       4        (5)       39
  Loss from certain
   available-for-
   sale securities            -        -        -         -        (1)
----------------------------------------------------------------------
  Total gain (loss)
   on MSR risk
   management
   instruments              423     (551)     (28)      (38)      391
----------------------------------------------------------------------
    Total changes
     in MSR
     valuation and
     risk
     management           $ 222    $ (21)   $(124)    $(118)    $ (78)
======================================================================

                                                    Nine Months Ended
----------------------------------------------------------------------
                                                   Sept. 30, Sept. 30,
                                                       2007      2006
----------------------------------------------------------------------
MSR Valuation and
 Risk
 Management(1):
  Change in MSR
   fair value due
   to valuation
   inputs or
   assumptions                                        $ 233     $ 379
Loss on MSR risk
 management
 instruments:
  Revaluation loss
   from derivatives                                    (160)     (603)
  Revaluation gain
   (loss) from
   certain trading
   securities                                             4       (50)
  Loss from certain
   available-for-
   sale securities                                        -        (1)
----------------------------------------------------------------------
    Total loss on
     MSR risk
     management
     instruments                                       (156)     (654)
----------------------------------------------------------------------
      Total changes
       in MSR
       valuation
       and risk
       management                                     $  77     $(275)
======================================================================

(1) Excludes $157 million downward adjustment to MSR fair value
     recognized in the nine months ended September 30, 2006.
WM-18
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                    Quarter Ended
----------------------------------------------------------------------
                  Sept. 30,  June 30,  Mar. 31,   Dec. 31,   Sept. 30,
                     2007       2007      2007      2006        2006
----------------------------------------------------------------------
Rollforward of
 Mortgage
 Servicing
 Rights(1)
  Balance,
   beginning of
   period        $  7,231   $  6,507  $  6,193  $  6,288   $   9,162
   Home loans:
    Additions         116        592       760       357         533
    Change in
     MSR fair
     value due
     to payments
     on loans
     and other       (351)      (401)     (356)     (375)       (410)

    Change in
     MSR fair
     value
     due to
     valuation
     inputs or
     assumptions     (201)       530       (96)      (80)       (469)
      Sale of
       MSR              -          -         -         1      (2,527)
   Net change in
    commercial
    real estate
    MSR                (1)         3         6         2          (1)
----------------------------------------------------------------------
  Balance, end
   of period     $  6,794   $  7,231  $  6,507  $  6,193   $   6,288
======================================================================
Rollforward of
 Mortgage Loans
 Serviced for
 Others
  Balance,
   beginning of
   period        $474,867   $467,782  $444,696  $439,208   $ 570,352
   Home loans:
    Additions       8,700     29,949    44,550    25,833      29,899
    Sale of
     servicing          -          -         -         -    (141,842)
    Loan
     payments
     and other    (20,716)   (24,213)  (22,469)  (20,744)    (19,288)
   Net change in
    commercial
    real estate
    loans             585      1,349     1,005       399          87
----------------------------------------------------------------------
  Balance, end
   of period     $463,436   $474,867  $467,782  $444,696   $ 439,208
======================================================================

                  Sept. 30,  June 30,  Mar. 31,   Dec. 31,   Sept. 30,
                     2007       2007      2007      2006        2006
----------------------------------------------------------------------
Total Servicing
 Portfolio
   Mortgage
    loans
    serviced for
    others       $463,436   $474,867  $467,782  $444,696   $ 439,208
   Consumer
    loans
    serviced for
    others         16,078     14,745    13,645    12,415      13,112
   Servicing on
    retained MBS
    without MSR       980      1,023     1,082     1,140       1,199
   Servicing on
    owned loans   232,392    218,122   226,217   251,766     245,925
   Subservicing
    portfolio         418        439       465    84,797     137,089
----------------------------------------------------------------------
  Total
   servicing
   portfolio     $713,304   $709,196  $709,191  $794,814   $ 836,533
======================================================================

                                                  September 30, 2007
----------------------------------------------------------------------
                                                            Weighted
                                                 Unpaid      Average
                                                 Principal  Servicing
                                                  Balance      Fee
----------------------------------------------------------------------

Mortgage Loans
 Serviced for                                              (in basis
 Others by Loan                                             points,
 Type                                                      annualized)
   Agency                                       $247,878          31
   Private                                       183,409          57
   Subprime
    mortgage
    channel-home                                  32,149          51
----------------------------------------------------------
  Total mortgage
   loans
   serviced for
   others(2)                                    $463,436          43
==========================================================

(1) MSR as a percentage of mortgage loans serviced for others was
     1.47%, 1.52%, 1.39%, 1.39% and 1.43% at September 30, 2007, June
     30, 2007, March 31, 2007, December 31, 2006 and September 30,
     2006.

(2) Weighted average coupon rate was 6.33% at September 30, 2007.
WM-19
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                        Quarter Ended
----------------------------------------------------------------------
                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                            2007     2007     2007     2006      2006
----------------------------------------------------------------------
Allowance for Loan and
 Lease Losses
  Balance, beginning of
   quarter                $1,560   $1,540   $1,630   $1,550   $1,663
  Allowance transferred
   to loans held for
   sale                     (217)     (81)    (148)    (158)    (125)
  Allowance acquired
   through business
   combinations/other          -        -        7       30        -
  Provision for loan
   and lease losses          967      372      234      344      166
----------------------------------------------------------------------
                           2,310    1,831    1,723    1,766    1,704
  Loans charged off:
    Loans secured by
     real estate:
      Home loans(1)          (52)     (21)     (35)     (16)     (12)
      Home equity loans
       and lines of
       credit(1)            (104)     (55)     (29)     (13)      (8)
      Subprime mortgage
       channel(2)           (146)    (103)     (40)     (52)     (47)
      Home
       construction(3)         -       (1)       -       (4)      (3)
      Other real estate       (1)      (1)       -       (1)      (2)
----------------------------------------------------------------------
        Total loans
         secured by
         real estate        (303)    (181)    (104)     (86)     (72)
    Consumer:
      Credit card           (120)    (106)     (96)     (68)     (98)
      Other                   (2)      (2)      (3)      (3)      (3)
    Commercial               (20)     (15)      (9)      (9)      (6)
----------------------------------------------------------------------
        Total loans
         charged off        (445)    (304)    (212)    (166)    (179)
  Recoveries of loans
   previously charged
   off:
    Loans secured by
     real estate:
      Home loans(1)            1        1        1        -        -
      Home equity loans
       and lines of
       credit(1)               3        3        3        2        2
      Subprime mortgage
       channel(2)              1       11        1        4        -
      Other real estate        2        -        -        -        -
----------------------------------------------------------------------
        Total loans
         secured by
         real estate           7       15        5        6        2
    Consumer:
      Credit card             14       15       16       18       16
      Other                    -        -        6        3        4
    Commercial                 3        3        2        3        3
----------------------------------------------------------------------
        Total
         recoveries of
         loans
         previously
         charged off          24       33       29       30       25
----------------------------------------------------------------------
          Net charge-
           offs             (421)    (271)    (183)    (136)    (154)
----------------------------------------------------------------------
  Balance, end of
   quarter                $1,889   $1,560   $1,540   $1,630   $1,550
======================================================================


  Net charge-offs
   (annualized) as a
   percentage of
   average loans held
   in portfolio             0.74%    0.50%    0.33%    0.23%    0.26%
  Allowance as a
   percentage of loans
   held in portfolio        0.80     0.73     0.71     0.72     0.64
______________________________

(1) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

(2) Represents mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name and held in the investment portfolio.

(3) Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale and construction loans made directly to the
     intended occupant of a single-family residence.
WM-20
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                            2007     2007     2007     2006      2006
----------------------------------------------------------------------
Nonperforming Assets
  Nonaccrual
   loans(1)(2):
    Loans secured by
     real estate:
      Home loans(3)     $  1,452  $   991  $   690  $   640  $    568
      Home equity loans
       and lines of
       credit(3)             533      378      297      231       162
      Subprime mortgage
       channel(4)          2,356    1,707    1,503    1,283     1,121
      Home
       construction(5)        44       47       41       27        35
      Multi-family           120       69       60       46        31
      Other real estate       49       52       52       51        53
----------------------------------------------------------------------
       Total nonaccrual
        loans secured
        by real estate     4,554    3,244    2,643    2,278     1,970
    Consumer                   1        1        1        1         1
    Commercial                22       30       28       16        16
----------------------------------------------------------------------
        Total
         nonaccrual
         loans held in
         portfolio         4,577    3,275    2,672    2,295     1,987
Foreclosed assets(6)         874      750      587      480       405
----------------------------------------------------------------------
        Total
         nonperforming
         assets(7)      $  5,451  $ 4,025  $ 3,259  $ 2,775  $  2,392
======================================================================

        Total
         nonperforming
         assets as a
         percentage of
         total assets       1.65%    1.29%    1.02%    0.80%     0.69%
______________________________

(1) Nonaccrual loans held for sale, which are excluded from the
     nonaccrual balances presented above, were $7 million, $171
     million, $195 million, $185 million and $129 million at September
     30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and
     September 30, 2006. Loans held for sale are accounted for at
     lower of aggregate cost or fair value, with valuation changes
     included as adjustments to noninterest income.

(2) Credit card loans are exempt under regulatory rules from being
     classified as nonaccrual because they are charged off when they
     are determined to be uncollectible, or by the end of the month in
     which the account becomes 180 days past due.

(3) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

(4) Represents mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name and held in the investment portfolio.

(5) Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale and construction loans made directly to the
     intended occupant of a single-family residence.

(6) Foreclosed real estate securing Government National Mortgage
     Association ("GNMA") loans of $46 million, $49 million, $72
     million, $99 million and $129 million at September 30, 2007,
     June 30, 2007, March 31, 2007, December 31, 2006 and September
     30, 2006 have been excluded. These assets are fully collectible
     as the corresponding GNMA loans are insured by the Federal
     Housing Administration ("FHA") or guaranteed by the Department
     of Veterans Affairs ("VA").

(7) Excludes accruing restructured loans of $287 million, $285
     million, $355 million, $330 million and $331 million at September
     30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and
     September 30, 2006.

    CONTACT: Washington Mutual
             Media Contact
             Libby Hutchinson, 206-500-2770
             libby.hutchinson@wamu.net
             or
             Washington Mutual
             Investor Relations Contact
             Alan Magleby
             206-500-4148 (Seattle)
             212-702-6955 (New York)
             alan.magleby@wamu.net

    SOURCE: Washington Mutual