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Washington Mutual Announces First Quarter 2004 Earnings; Board of Directors Increases Cash Dividend

April 19, 2004
FOR IMMEDIATE RELEASE

To view a printable version of the Q1 2004 financial release, click here.

To view a downloadable version of the Q1 2004 financial release, click here.

SEATTLE--(BUSINESS WIRE)--April 19, 2004--Washington Mutual, Inc. (NYSE: WM) today announced first quarter 2004 earnings of $1.05 billion, or $1.18 per diluted share, up 10 percent on a per share basis from $997 million, or $1.07 per diluted share for the same period a year ago.

The company's first quarter results included $644 million in pretax income from discontinued operations associated with its former subsidiary Washington Mutual Finance Corporation, which was sold during the quarter. This income was partially offset by pretax restructuring and technology-related charges of $68 million, a pretax charge of $89 million associated with the early retirement of certain high-cost Federal Home Loan Bank borrowings, and a pre-tax reduction of $107 million in noninterest income as a result of the one-time effect of the company's change in accounting for gain from mortgage loans.

Based on the company's continued strong operating fundamentals and financial performance, Washington Mutual's Board of Directors declared a cash dividend of 43 cents per share on the company's common stock, up from 42 cents per share previously. Dividends on the common stock are payable on May 14, 2004 to shareholders of record as of April 30, 2004.

    Key highlights:

    --  The company's results were led by strong growth in its Retail
        Banking and Financial Services business, whose net income
        increased by 23 percent year over year;

    --  Adjusted for the sale of Washington Mutual Finance, total
        assets grew $9.77 billion, or 4 percent, to $280.77 billion at
        March 31, 2004. Loans held in portfolio and loans held for
        sale grew on a linked quarter basis by a collective $24.60
        billion. Loan growth was partially offset by the sale of
        approximately $14 billion of fixed-rate investment securities
        as part of the company's efforts to reduce interest rate
        sensitivity;

    --  The net interest margin remained essentially unchanged at 2.89
        percent due to stable short-term rates and the company's
        successful interest rate risk management activities;

    --  Depositor and other retail banking fees increased by 10
        percent to $463 million from the comparable period a year ago,
        with the addition of nearly 207,000 net new retail checking
        accounts in the quarter and nearly 812,000 in the preceding 12
        months;

    --  Total deposits increased $1.11 billion year over year, despite
        a decline of $7.62 billion in custodial and escrow balances
        associated with the slower mortgage market. The increase in
        total deposits was due to higher retail, commercial and
        wholesale deposits;

    --  The company made significant progress on its cost leadership
        initiative as well. Noninterest expense decreased by $221
        million, or 11 percent, from the fourth quarter of 2003. When
        adjusted for restructuring and technology-related charges,
        noninterest expense decreased by $109 million on a linked
        quarter basis. The company's efficiency ratio improved to
        63.34 percent as compared with 65.51 percent for the fourth
        quarter of 2003;

    --  Continued strong credit quality was reflected in nonperforming
        assets (NPAs) of 0.66 percent of total assets as of March 31,
        2004, down from 0.70 percent as of December 31, 2003;

    --  Washington Mutual was honored as the most admired company in
        its industry category as part of Fortune magazine's 2004 Most
        Admired Companies list. In addition, Fortune recognized the
        company as the most innovative company in the country, beating
        out such respected organizations as Starbucks, Procter &
        Gamble, UPS and Nike;

    --  In a February 9 Forrester Research report, Washington Mutual
        received the highest customer advocacy rating among peer
        banks, including Chase, Wachovia, Citibank, Bank One and Bank
        of America;

"Our financial performance in the first quarter highlighted Washington Mutual's balanced business model," noted Kerry Killinger, the company's chairman, president and CEO. "Our Retail Banking and Financial Services business posted very strong net income gains, year-over-year, which helped to off-set the significantly lower industry-wide mortgage volume. Our company also continued to successfully attract a growing number of new customers and profitably expand our leading national franchise.

"In addition, we made significant, early progress in our efforts to reduce our cost structure and streamline operations, while maintaining our high standards for customer service. We believe the solid foundation established in the first quarter provides momentum for the remainder of 2004."

    FIRST QUARTER FINANCIAL SUMMARY

    Net Interest Income

Net interest income was $1.73 billion compared with $1.99 billion in the first quarter of 2003 and $1.74 billion in the fourth quarter of 2003. The net interest margin was 2.89 percent, compared with 2.90 percent in the previous quarter and 3.28 percent in the first quarter of 2003. These results reflected the downward repricing of assets in the early part of 2003.

Noninterest Income

Noninterest income was $1.24 billion compared with $1.30 billion a year ago and $1.47 billion in the fourth quarter of 2003. Fourth quarter 2003 noninterest income included various non-recurring gains.

Continued strong consumer preference for Washington Mutual's products and personal service led to the net increase of nearly 812,000 retail checking accounts year over year. The larger base of checking accounts contributed to the 10 percent growth in depositor and other retail banking fees. Offsetting this increase was a 15 percent decrease in total home loan mortgage banking income year over year, reflecting significantly lower mortgage volumes, year-over-year.

Cost Leadership Initiative - Noninterest Expense Update

The company made excellent progress on its cost leadership initiative and management has identified and is tracking more than 100 cost reduction and alignment projects to be implemented in 2004. While noninterest expense was up year over year primarily due to the expansion of the retail banking network over the previous 12 months, the company reduced noninterest expense by $221 million, or 11 percent, from the fourth quarter of 2003. When adjusted for restructuring and technology-related charges, noninterest expense decreased by $109 million on a linked quarter basis.

"The substantial progress our management team made in reducing noninterest expense in the first quarter exceeded our expectations," said Craig Chapman, the company's chief administrative officer and executive lead for its cost leadership initiative. "We believe that we are well positioned to keep 2004 noninterest expense essentially flat with the 2003 level, while executing our targeted growth and expansion plans this year."

Lending

Total loan volume was $62.17 billion compared with $108.78 billion in the first quarter of 2003 and $69.90 billion in the fourth quarter of 2003. Home loan volume of $50.50 billion was down $49.49 billion from the first quarter of 2003 and down $7.03 billion from the fourth quarter of 2003, due to the significant industry-wide reduction in mortgage originations, which was partially mitigated by the company's balanced business model and strength in generating ARMs. During the first quarter of 2004, ARMs represented 53 percent of the company's home loan origination volume, compared with just 27 percent in the first quarter of 2003 and 48 percent in the fourth quarter of 2003.

The company's focus on cross-selling its broad range of products and services and expanding customer relationships contributed to strong home equity loans and lines of credit volume of $8.42 billion, up 62 percent from the first quarter of 2003 and up 6 percent from the fourth quarter of 2003.

Credit Quality

The positive credit trends of recent quarters continued in the first quarter. NPAs as a percentage of total assets were 0.66 percent, an improvement from 0.70 percent as of December 31, 2003 and 0.86 percent at March 31, 2003. Net charge offs were $46 million versus $97 million in the fourth quarter of 2003 and $58 million in the first quarter of 2003. The company's provision for loan and lease losses was $56 million, while the allowance for loan and lease losses was $1.26 billion at March 31, 2004.

Balance Sheet and Capital Management

Total assets grew $5.59 billion to $280.77 billion at March 31, 2004. However, adjusted for the discontinued operations of Washington Mutual Finance, total assets increased $9.77 billion on a linked quarter basis.

Loans held in portfolio grew to $187.46 billion as of March 31, 2004, an increase of $11.82 billion from year-end levels, reflecting the company's emphasis on originating short-term ARM loans as well as growth in its home equity loans and lines of credit and commercial business lending portfolios. Loans held for sale grew to $33.13 billion at the end of the first quarter, an increase of $12.78 billion over December 31, 2003 levels. Investment securities declined by 52 percent to $12.57 billion at March 31, 2004, primarily as a result of the sale of the fixed-rate investment securities previously mentioned.

Total deposits increased $7.80 billion to $160.98 billion at March 31, 2004, primarily due to growth of wholesale, custodial and escrow deposits.

Washington Mutual continues to manage its capital position, in part, by repurchasing shares of its common stock. During the quarter, the company repurchased 16 million shares of its common stock at an average price of $44.14.

The company's ratio of tangible common equity to tangible assets was 5.21 percent. In addition, the capital ratios of the company's banking subsidiaries continued to exceed the federal regulatory requirements for classification as "well-capitalized" institutions, the highest regulatory standard.

"Our strong capital levels at the end of the first quarter, reflect both the company's capital generation ability and successful efforts to opportunistically deploy capital into loan growth and share repurchases, while continuing to increase our dividends to shareholders," said Tom Casey, the company's chief financial officer.

FIRST QUARTER OPERATING SEGMENT RESULTS

Washington Mutual manages and reports information concerning the company's activities, operations, products and services around its two customer categories, which form the company's two business segments: the Consumer Group and the Commercial Group.

Consumer Group

The Consumer Group provides financial products and services to customers through a wide range of channels, including its network of retail banking stores, retail, wholesale and correspondent lending centers and ATMs. Additionally, 24-hour service is provided through telephone call centers and online banking. The Consumer Group consists of two distinct operating segments for which separate financial reports are prepared: the Retail Banking and Financial Services segment, and the Mortgage Banking segment.

Retail Banking and Financial Services

Retail Banking and Financial Services offers innovative retail banking and financial products and services to consumers and small businesses, including deposits, loans, securities brokerage, mutual funds and annuities, through its network of more than 1,750 retail banking stores. The company's home loan and consumer loan portfolios, as well as its mutual fund management business are also part of the Retail Banking and Financial Services segment.

Retail Banking and Financial Services First Quarter Financial

Performance

Net income for the company's Retail Banking and Financial Services business increased by 23 percent to $469 million, compared with $380 million in the first quarter of 2003. In addition to the strong growth in depositor and other retail banking fees previously mentioned, net interest income of the segment increased 32 percent, quarter over quarter, driven by significantly higher average loan portfolio balances. The strong growth in net interest income and noninterest income was partially offset by an increase in noninterest expense, which reflected the company's continued national expansion of its retail banking network.

    Highlights of the Retail Banking and Financial Services Business
    for the first quarter included:

    --  Retail banking stores that have been open since January 1,
        2003 produced strong same-store sales from the first quarter
        of 2003, posting a 58 percent increase in consumer lending, a
        10 percent increase in depositor and other banking fees and 11
        percent growth in net new checking accounts;

    --  Average loan portfolio balances grew 29 percent from the first
        quarter of 2003 to $149.40 billion, reflecting the emphasis on
        originating ARM loans for the balance sheet as well as growth
        in its home equity loans and lines of credit, which increased
        73 percent to $31.26 billion year over year;

    --  The company's retail banking network grew 13 percent year over
        year as it opened 285 new stores over that period, including
        58 new store openings during the first quarter;

    --  The cross-sell ratio for the average mature retail banking
        household increased to 5.65 products and services, up from
        5.59 at the end of the fourth quarter of 2003;

    --  Over the past year, WM Group of Funds grew assets under
        management by $5.99 billion, or 45 percent, to $19.44 billion
        at March 31, 2004;

    --  As of April 15, more than 300,000 customers have signed up for
        the new WaMoola Program, which allows customers to use their
        Washington Mutual debit card to raise money for the schools of
        their choice;

    --  In January, Washington Mutual was named "Best Retail Bank -
        Americas" in the Lafferty International Retail Banking Awards.

    Mortgage Banking

The Mortgage Banking business is a leading national originator and servicer of home loans. Loans originated by Mortgage Banking are either sold to secondary market participants or retained by the company. Mortgage Banking also offers insurance products and services to its customers and manages the company's captive reinsurance activities.

Mortgage Banking First Quarter Financial Performance

Net income was $220 million compared with $497 million in the first quarter of 2003 as the Mortgage Banking business produced solid results while successfully balancing its cost-reduction targets with pricing discipline and market share objectives. The principal drivers of the year to year difference were the high volume of originations from the refinancing boom during the first quarter of 2003 as compared to more modest volumes seen in the first quarter of this year, as well as reduced noninterest income from the one-time effect of the adoption of new accounting treatment for the recognition of income from gain from mortgages.

    Highlights of the Mortgage Banking Business for the first quarter
    included:

    --  Total home loan volume from the Mortgage Banking Business was
        $47.90 billion, compared to $97.44 billion in the first
        quarter of 2003;

    --  ARM loan volume was 53 percent of total Mortgage Banking home
        loan volume, up from 27 percent in the first quarter of 2003
        and continuing the upward trend from the fourth quarter of
        2003. This trend reflects the company's balanced business
        model and ability to quickly adjust the mix of fixed- and
        adjustable-rate products in response to interest rates, market
        conditions and customer preference;

    --  Reflecting its focus on gaining efficiencies and streamlining
        operations, Mortgage Banking reduced the number of home loan
        fulfillment centers nationally from 58 to 46.

    Commercial Group

The Commercial Group is the leading national originator of multi-family loans and provides loans to developers of and investors in multi-family and other commercial real estate properties, which it retains in its portfolio or sells in the secondary market. The Commercial Group also provides financing for mortgage bankers, home builders, and mid-sized businesses, and offers deposits and cash management services to its customers. Through Long Beach Mortgage, a wholly owned subsidiary of the company, the Commercial Group originates and services home loans that are made to higher-risk borrowers and sold to secondary market participants. The discontinued operations of Washington Mutual Finance were also previously included in the segment.

Commercial Group First Quarter Financial Performance

Net income for the Commercial Group, excluding Washington Mutual Finance as a discontinued operation, increased 7 percent to $169 million, compared with $158 million in the first quarter of 2003. The main drivers for this increase were a 7 percent increase in total net interest income, resulting from higher average loan balances, and a 20 percent increase in gain from mortgage loans at Long Beach Mortgage and multi-family operations;

    Highlights of the Commercial Group for the first quarter included:

    --  Commercial Group average deposits grew $1.58 billion as
        compared to March 31, 2003, an increase of 35 percent year
        over year.

    --  The average multi-family loan portfolio grew 10 percent from
        the first quarter of 2003 and contributed to the 7 percent
        growth in total average loans for the Commercial Group
        overall.

    About Washington Mutual

With a history dating back to 1889, Washington Mutual is a retailer of financial services that provides a diversified line of products and services to consumers and commercial clients. At March 31, 2004, Washington Mutual and its subsidiaries had assets of $280.77 billion. Washington Mutual currently operates more than 2,400 consumer banking, mortgage lending, commercial banking and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamunewsroom.com.

Webcast information: A conference call to discuss the company's financial results will be held on Tuesday, April 20, 2004, at 10 am EDT and will be hosted by Kerry Killinger, chairman, president, and chief executive officer, Tom Casey, executive vice president and chief financial officer and Craig Chapman, chief administrative officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 877-546-1565. Participants calling from outside the United States may dial 712-257-0019. 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 on the company's web site following the call. A recording of the conference call will be available after 1 pm EDT on Tuesday, April 20, 2004, through 11:59 pm EDT on Thursday, April 29. The recorded message will be available at 800-944-8486. Callers from outside the United States may dial 402-220-3520.

Forward Looking Statement

Our Form 10-K/A and other documents that we file with the Securities and Exchange Commission contain forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "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." Forward-looking statements provide our expectations or predictions of future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. These statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. There are a number of factors, many of which are beyond our control that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Some of these factors are:

    --  General business and economic conditions may significantly
        affect our earnings;

    --  If we are unable to effectively manage the volatility of our
        mortgage banking business, our earnings could be adversely
        affected;

    --  If we are unable to fully realize the operational and systems
        efficiencies sought to be achieved from our recently announced
        business segment realignment, our earnings could be adversely
        affected;

    --  We face competition for loans and deposits from banking and
        nonbanking companies and national mortgage companies; and

    --  Changes in the regulation of financial services companies and
        housing government-sponsored enterprises could adversely
        affect our business.
WM-1
                       Washington Mutual, Inc.
                  Consolidated Statements of Income
             (dollars in millions, except per share data)
                             (unaudited)

                                         Quarter Ended
----------------------------------------------------------------------
                           Mar. 31, Dec. 31,Sept. 30, June 30,Mar. 31,
                             2004     2003     2003     2003     2003
----------------------------------------------------------------------
Interest Income
 Loans held for sale       $  328   $  439   $  684   $  693   $  668
 Loans held in portfolio    2,071    1,969    1,848    1,905    1,964
 Available-for-sale
  securities                  265      353      401      468      516
 Other interest and
  dividend income              57       38       65       72       80
----------------------------------------------------------------------
   Total interest income    2,721    2,799    2,998    3,138    3,228
Interest Expense
 Deposits                     443      491      538      548      587
 Borrowings                   546      565      551      604      648
----------------------------------------------------------------------
   Total interest expense     989    1,056    1,089    1,152    1,235
----------------------------------------------------------------------
     Net interest income    1,732    1,743    1,909    1,986    1,993
 Provision (reversal of
  reserve) for loan and
  lease losses                 56     (202)      76       81       88
----------------------------------------------------------------------
   Net interest income
    after provision for
    loan and lease losses   1,676    1,945    1,833    1,905    1,905
Noninterest Income
 Home loan mortgage
  banking income, net         531      592      145      611      625
 Depositor and other
  retail banking fees         463      472      471      454      420
 Securities fees and
  commissions                 107      103      103      100       89
 Insurance income              61       49       45       48       46
 Portfolio loan related
  income                       87       96      116      111      117
 Gain (loss) from other
  available-for-sale
  securities                   21      (13)     557      137       (5)
 Gain (loss) on
  extinguishment of short-
  term borrowings             (89)       -        7      (49)     (87)
 Other income                  56      166      120      114       90
----------------------------------------------------------------------
   Total noninterest
    income                  1,237    1,465    1,564    1,526    1,295
Noninterest Expense
 Compensation and benefits    899      877      837      843      748
 Occupancy and equipment      400      569      352      371      301
 Telecommunications and
  outsourced information
  services                    123      125      150      140      140
 Depositor and other
  retail banking losses        55       49       50       50       52
 Amortization of other
  intangible assets            15       15       15       15       16
 Advertising and promotion     58       88       51       80       59
 Professional fees             39       78       69       66       54
 Other expense                291      300      286      285      277
----------------------------------------------------------------------
   Total noninterest
    expense                 1,880    2,101    1,810    1,850    1,647
----------------------------------------------------------------------
  Income from continuing
   operations before
   income taxes             1,033    1,309    1,587    1,581    1,553
  Income taxes                385      488      588      586      575
----------------------------------------------------------------------
     Income from
      continuing
      operations, net of
      taxes                   648      821      999      995      978
----------------------------------------------------------------------
Discontinued Operations
  Income (loss) from
   discontinued operations    (32)      34       38       34       30
  Gain on disposition of
   discontinued operations    676        -        -        -        -
  Income taxes                245       13       14       12       11
----------------------------------------------------------------------
     Income from
      discontinued
      operations, net of
      taxes                   399       21       24       22       19
----------------------------------------------------------------------
Net Income                 $1,047     $842   $1,023   $1,017     $997
======================================================================
Net Income Attributable to
 Common Stock              $1,047     $842   $1,023   $1,017     $997
======================================================================

Basic earnings per common
 share:
 Income from continuing
  operations                $0.75    $0.93    $1.11    $1.09    $1.06
 Income from discontinued
  operations, net            0.46     0.02     0.03     0.03     0.02
                          -------- -------- -------- -------- --------
 Net income                  1.21     0.95     1.14     1.12     1.08

Diluted earnings per
 common share:
 Income from continuing
  operations                $0.73    $0.91    $1.09    $1.07    $1.05
 Income from discontinued
  operations, net            0.45     0.02     0.02     0.02     0.02
                          -------- -------- -------- -------- --------
 Net income                  1.18     0.93     1.11     1.09     1.07

Dividends declared per
 common share                0.42     0.41     0.40     0.30     0.29
Basic weighted average
 number of common shares
 outstanding (in
 thousands)               863,299  883,539  899,579  910,921  921,084
Diluted weighted average
 number of common shares
 outstanding (in
 thousands)               886,467  904,840  918,372  929,386  934,889


WM-2
                       Washington Mutual, Inc.
            Consolidated Statements of Financial Condition
             (dollars in millions, except per share data)
                             (unaudited)

                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                         2004      2003      2003      2003      2003
----------------------------------------------------------------------
Assets
 Cash and cash
  equivalents          $6,045    $7,018    $5,744    $7,333    $6,165
 Federal funds sold
  and securities
  purchased under
  resale agreements     1,783        19        12     2,085     1,606
 Available-for-sale
  securities, total
  amortized cost of
  $22,843, $36,858,
  $36,792, $43,170
  and $40,761:
   Mortgage-backed
    securities         10,766    10,695    14,352    24,875    26,768
   Investment
    securities         12,565    26,012    22,705    20,152    15,576
 Loans held for sale   33,125    20,343    35,493    44,870    49,219
 Loans held in
  portfolio           187,462   175,644   160,556   150,050   146,972
 Allowance for loan
  and lease losses     (1,260)   (1,250)   (1,549)   (1,530)   (1,530)
----------------------------------------------------------------------
     Total loans
      held in
      portfolio, net
      of allowance
      for loan and
      lease losses    186,202   174,394   159,007   148,520   145,442
 Investment in
  Federal Home Loan
  Banks                 3,916     3,462     3,429     3,596     3,871
 Mortgage servicing
  rights                5,239     6,354     5,870     4,598     5,210
 Goodwill               6,196     6,196     6,196     6,196     6,196
 Assets of
  discontinued
  operations                -     4,184     4,138     4,020     3,935
 Other assets          14,931    16,501    29,685    16,875    13,053
----------------------------------------------------------------------
     Total assets    $280,768  $275,178  $286,631  $283,120  $277,041
======================================================================
Liabilities
 Deposits:
   Noninterest-
    bearing deposits  $35,714   $29,968   $39,197   $46,505   $40,478
   Interest-bearing
    deposits          125,267   123,213   124,944   119,952   119,394
----------------------------------------------------------------------
     Total deposits   160,981   153,181   164,141   166,457   159,872
 Federal funds
  purchased and
  commercial paper      4,501     2,011     3,113     2,632     1,511
 Securities sold
  under agreements
  to repurchase        18,306    28,333    20,468    22,964    20,502
 Advances from
  Federal Home Loan
  Banks                58,494    48,330    43,743    46,127    52,221
 Other borrowings      13,692    15,483    12,584    12,986    14,142
 Liabilities of
  discontinued
  operations                -     3,578     3,554     3,448     3,381
 Other liabilities      4,411     4,520    18,587     7,528     4,804
----------------------------------------------------------------------
     Total
      liabilities     260,385   255,436   266,190   262,142   256,433
Stockholders' equity   20,383    19,742    20,441    20,978    20,608
----------------------------------------------------------------------
     Total
      liabilities
      and
      stockholders'
      equity         $280,768  $275,178  $286,631  $283,120  $277,041
======================================================================
Common shares
 outstanding at end
 of period (in
 thousands)(1)        868,953   880,986   913,854   924,238   934,983
Book value per
 common share(2)       $23.62    $22.56    $22.77    $23.13    $22.46
Tangible book value
 per common share(2)    16.53     15.58     15.94     16.35     15.75
Employees at end of
 period(3)             59,173    63,720    62,901    60,166    57,302



(1) Includes 6,000,000 shares at March 31, 2004 and December 31, 2003,
    16,200,000 shares at September 30, 2003, 17,100,000 shares at June
    30, 2003 and 17,550,000 shares at March 31, 2003, held in escrow.
(2) Excludes 6,000,000 shares at March 31, 2004 and December 31, 2003,
    16,200,000 shares at September 30, 2003, 17,100,000 shares at June
    30, 2003 and 17,550,000 shares at March 31, 2003, held in escrow.
(3) Includes 2,346, 2,352, 2,397 and 2,387 employees reported as part
    of discontinued operations at December 31, 2003, September 30,
    2003, June 30, 2003 and March 31, 2003.


WM-3
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2004     2003     2003     2003     2003
----------------------------------------------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                   $19,742  $20,441  $20,978  $20,608  $20,061
Net income                  1,047      842    1,023    1,017      997
Other comprehensive income
 (loss), net of tax           512     (105)    (805)      91      119
Cash dividends declared on
 common stock                (367)    (368)    (362)    (275)    (267)
Cash dividends returned(1)      -       45        4        2        2
Common stock repurchased
 and retired                 (712)  (1,269)    (457)    (621)    (351)
Common stock issued           161      156       60      156       47
----------------------------------------------------------------------
Balance, end of period    $20,383  $19,742  $20,441  $20,978  $20,608
======================================================================

(1)   Represents accumulated dividends on shares returned from escrow.


WM-4
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Quarter Ended Mar. 31, 2004
----------------------------------------------------------------------
                                       Consumer Group
                                    -----------------------
                                      Retail
                                     Banking and
                                     Financial   Mortgage  Commercial
                                      Services    Banking     Group
----------------------------------------------------------------------
Condensed income statement:
 Net interest income (expense)        $1,236       $277       $340
 Provision for loan and lease losses      38          2         15
 Noninterest income (expense)            622        760         87
 Inter-segment revenue (expense)           6         (6)         -
 Noninterest expense                   1,071        675        152
----------------------------------------------------------------------
 Income (loss) from continuing
  operations before income taxes         755        354        260
 Income taxes (benefit)                  286        134         91
----------------------------------------------------------------------
   Income (loss) from continuing
    operations                           469        220        169
 Income from discontinued
  operations, net of taxes                 -          -          -
----------------------------------------------------------------------
      Net income                        $469       $220       $169
======================================================================
Performance and other data:
 Efficiency ratio                      50.58%(6)  60.39%(6)  28.73%(6)
 Average loans                      $149,398    $19,922    $37,095
 Average assets                      161,340     35,529     42,961
 Average deposits                    128,000     14,877      6,049


                                       Quarter Ended Mar. 31, 2003
----------------------------------------------------------------------
                                       Consumer Group
                                    -----------------------
                                      Retail
                                     Banking and
                                     Financial   Mortgage  Commercial
                                      Services    Banking     Group
----------------------------------------------------------------------
Condensed income statement:
 Net interest income (expense)          $934       $676       $319
 Provision (reversal of reserve) for
  loan and lease losses                   18         (1)        43
 Noninterest income (expense)            572        836         96
 Inter-segment revenue (expense)          50        (50)         -
 Noninterest expense                     928        662        126
----------------------------------------------------------------------
 Income (loss) from continuing
  operations before income taxes         610        801        246
 Income taxes (benefit)                  230        304         88
----------------------------------------------------------------------
 Income (loss) from continuing
  operations                             380        497        158
 Income from discontinued
  operations, net of taxes                 -          -         19
----------------------------------------------------------------------
      Net income (loss)                 $380       $497       $177
======================================================================
Performance and other data:
 Efficiency ratio                      51.39%(6)  41.79%(6)  23.48%(6)
 Average loans                      $116,239    $42,571    $34,614
 Average assets                      128,308     67,094     42,948
 Average deposits                    123,236     24,927      4,471


                                      Quarter Ended Mar. 31, 2004
----------------------------------------------------------------------

                                   Corporate
                                   Support/
                                   Treasury   Reconciling
                                   and Other  Adjustments   Total
----------------------------------------------------------------------
Condensed income statement:
 Net interest income (expense)       $(224)    $103 (1)     $1,732
 Provision for loan and lease
  losses                                 -        1 (2)         56
 Noninterest income (expense)          (68)    (164)(3)      1,237
 Inter-segment revenue (expense)         -        -              -
 Noninterest expense                   192     (210)(4)      1,880
----------------------------------------------------------------------
 Income (loss) from continuing
  operations before income taxes      (484)     148          1,033
 Income taxes (benefit)               (181)      55 (5)        385
----------------------------------------------------------------------
   Income (loss) from continuing
    operations                        (303)      93            648
 Income from discontinued
  operations, net of taxes             399        -            399
----------------------------------------------------------------------
      Net income                       $96      $93         $1,047
======================================================================
Performance and other data:
 Efficiency ratio                      n/a      n/a          63.34%(7)
 Average loans                       $(183) $(1,505)(8)   $204,727
 Average assets                     33,233   (1,657)(8)(9) 271,406
 Average deposits                    5,028      n/a        153,954


                                      Quarter Ended Mar. 31, 2003
----------------------------------------------------------------------

                                   Corporate
                                   Support/
                                   Treasury   Reconciling
                                   and Other  Adjustments   Total
----------------------------------------------------------------------
Condensed income statement:
 Net interest income (expense)        $(18)     $82 (1)     $1,993
 Provision (reversal of reserve)
  for loan and lease losses              1       27 (2)         88
 Noninterest income (expense)          (63)    (146)(3)      1,295
 Inter-segment revenue (expense)         -        -              -
 Noninterest expense                   139     (208)(4)      1,647
----------------------------------------------------------------------
 Income (loss) from continuing
  operations before income taxes      (221)     117          1,553
 Income taxes (benefit)                (82)      35 (5)        575
----------------------------------------------------------------------
   Income (loss) from continuing
    operations                        (139)      82            978
 Income from discontinued
  operations, net of taxes               -        -             19
----------------------------------------------------------------------
      Net income (loss)              $(139)     $82           $997
======================================================================
Performance and other data:
 Efficiency ratio                      n/a      n/a          50.09%(7)
 Average loans                       $(312) $(1,121)(8)   $191,991
 Average assets                     44,353   (1,963)(8)(9) 280,740
 Average deposits                    5,273      n/a        157,907

(1) Represents the difference between home loan premium amortization
    recorded by the Retail Banking and Financial Services segment and
    the amount recognized in the Company's Consolidated Statements of
    Income. For management reporting purposes, loans that are held in
    portfolio by the Retail Banking and Financial Services segment are
    treated as if they are purchased from the Mortgage Banking
    segment. Since the cost basis of these loans includes an assumed
    profit factor paid to the Mortgage Banking segment, the
    amortization of loan premiums recorded by the Retail Banking and
    Financial Services segment includes this assumed profit factor and
    must therefore be eliminated as a reconciling adjustment.
(2) Represents the difference between the long-term, normalized net
    charge-off ratio used to assess expected loan and lease losses for
    the operating segments and the "losses inherent in the loan
    portfolio" methodology used by the Company.
(3) Represents the difference between gain from mortgage loans
    recorded by the Mortgage Banking segment and the gain from
    mortgage loans recognized in the Company's Consolidated Statements
    of Income. As the Mortgage Banking segment holds no loans in
    portfolio, all loans originated or purchased by this segment are
    considered to be salable for management reporting purposes.
(4) Represents the corporate offset for goodwill cost of capital
    allocated to segments.
(5) Represents the tax effect of reconciling adjustments.
(6) The efficiency ratio is defined as noninterest expense, excluding
    a cost of capital charge on goodwill, divided by total revenue
    (net interest income and noninterest income).
(7) The efficiency ratio is defined as noninterest expense divided by
    total revenue (net interest income and noninterest income).
(8) Includes the inter-segment offset of $1,505 million and $1,121
    million as of the quarters ended March 31, 2004 and 2003 for
    inter-segment loan premiums that the Retail Banking and Financial
    Services segment recognized from the transfer of portfolio loans
    from the Mortgage Banking segment.
(9) Includes the impact to the allowance for loan and lease losses of
    $152 million and $842 million as of the quarters ended March 31,
    2004 and 2003 that results from the difference between the
    long-term, normalized net charge-off ratio used to assess expected
    loan and lease losses for the operating segments and the "losses
    inherent in the loan portfolio" methodology used by the Company.


WM-5

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

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                           2004     2003     2003     2003     2003
----------------------------------------------------------------------
PROFITABILITY
    Net interest income   $1,732   $1,743   $1,909   $1,986   $1,993
    Net interest margin     2.89 %   2.90 %   3.07 %   3.22 %   3.28 %
    Noninterest income    $1,237   $1,465   $1,564   $1,526   $1,295
    Noninterest expense    1,880    2,101    1,810    1,850    1,647
   Basic earnings per
    common share:
      Income from
       continuing
       operations          $0.75    $0.93    $1.11    $1.09    $1.06
      Income from
       discontinued
       operations, net      0.46     0.02     0.03     0.03     0.02
      Net income            1.21     0.95     1.14     1.12     1.08
   Diluted earnings per
    common share:
      Income from
       continuing
       operations          $0.73    $0.91    $1.09    $1.07    $1.05
      Income from
       discontinued
       operations, net      0.45     0.02     0.02     0.02     0.02
      Net income            1.18     0.93     1.11     1.09     1.07
    Dividends declared
     per common share      $0.42    $0.41    $0.40    $0.30    $0.29
    Return on average
     assets(1)              1.54 %   1.21 %   1.41 %   1.43 %   1.42 %
    Return on average
     common equity(1)      20.85    16.83    19.82    19.26    19.44
    Efficiency
     ratio(2)(3)           63.34    65.51    52.13    52.66    50.09
ASSET QUALITY
    Nonaccrual loans(4)   $1,542   $1,626   $1,813   $1,893   $2,062
    Foreclosed assets        307      311      293      307      325
    Total nonperforming
     assets                1,849    1,937    2,106    2,200    2,387
    Nonperforming
     assets/total assets    0.66 %   0.70 %   0.73 %   0.78 %   0.86 %
    Restructured loans      $107     $111     $118      $89      $99
    Total nonperforming
     assets and
     restructured loans    1,956    2,048    2,224    2,289    2,486
    Allowance for loan
     and lease losses      1,260    1,250    1,549    1,530    1,530
    Allowance as a
     percentage of total
     loans held in
     portfolio              0.67 %   0.71 %   0.96 %   1.02 %   1.04 %
    Provision (reversal
     of reserve) for loan
     and lease losses        $56    $(202)     $76      $81      $88
    Net charge-offs           46       97       74       81       58
CAPITAL ADEQUACY
    Stockholders'
     equity/total assets    7.26 %   7.17 %   7.13 %   7.41 %   7.44 %
    Tangible common
     equity(5)/total
     tangible assets(5)     5.21     5.26     5.26     5.26     5.26
    Estimated total risk-
     based capital/risk-
     weighted assets(6)    10.82    10.94    11.54    11.68    11.68
SUPPLEMENTAL DATA
    Average balance
     sheet:
       Total loans held
        for sale         $23,859  $29,362  $51,272  $51,519  $47,301
       Total loans held
        in portfolio     180,868  167,033  152,696  147,708  144,690
       Total interest-
        earning assets   239,979  241,718  249,892  246,851  242,791
       Total assets      271,406  277,440  290,215  284,037  280,740
       Total interest-
        bearing deposits 123,336  125,318  124,488  120,144  119,056
       Total noninterest-
        bearing deposits  30,618   33,368   49,457   43,536   38,851
       Total
        stockholders'
        equity            20,088   20,027   20,657   21,112   20,523
    Period-end balance
     sheet:
       Loans held for
        sale              33,125   20,343   35,493   44,870   49,219
       Loans held in portfolio,
        net of allowance for loan
         and lease
         losses          186,202  174,394  159,007  148,520  145,442
       Interest-earning
        assets(2)        249,617  236,175  236,547  245,628  244,012
       Total assets      280,768  275,178  286,631  283,120  277,041
       Interest-bearing
        deposits         125,267  123,213  124,944  119,952  119,394
       Noninterest-
        bearing deposits  35,714   29,968   39,197   46,505   40,478
       Total
        stockholders'
        equity            20,383   19,742   20,441   20,978   20,608

------------

(1) Includes income from continuing and discontinued operations.

(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 but includes MSR.

(6) Estimate of what the total risk-based capital ratio would be if
    Washington Mutual, Inc. were a bank holding company that is
    subject to Federal Reserve Board capital requirements.


WM-6

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                             Quarter Ended
----------------------------------------------------------------------
                          Mar. 31, 2004            Dec. 31, 2003
                                      Interest                Interest
                                      Income/                 Income/
                      Balance   Rate  Expense  Balance  Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted
 Average Interest Rates
Assets
Interest-earning
 assets:
   Federal funds sold and
    securities purchased
    under resale
    agreements         $1,026   1.34%     $3      $414  2.26%     $2
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities       9,999   4.35     109    12,584  4.14     130
      Investment
       securities      19,073   3.29     156    27,386  3.24     223
   Loans held for
    sale(2)            23,859   5.50     328    29,362  5.98     439
   Loans held in
    portfolio(2):
      Loans secured
       by real estate:
         Home         102,691   4.24   1,089    94,713  4.41   1,045
         Purchased
          specialty
          mortgage
          finance      14,016   5.21     182    11,799  5.05     149
------------------------------        ------- ---------       -------
           Total home
            loans     116,707   4.36   1,271   106,512  4.48   1,194
         Home equity
          loans and
          lines of
          credit       29,262   4.72     344    25,850  4.71     306
         Home
          construction:
            Builder(3)  1,117   4.42      12     1,073  4.67      13
            Custom(4)   1,200   6.17      19     1,087  6.53      18
         Multi-family  20,376   5.06     258    20,177  5.07     256
         Other real
          estate        6,589   5.77      95     6,941  6.39     111
------------------------------        ------- ---------       -------
           Total
            loans
            secured
            by real
            estate    175,251   4.57   1,999   161,640  4.69   1,898
      Consumer            997  10.15      25     1,066  9.02      24
      Commercial
       business         4,620   4.01      47     4,327  4.22      47
------------------------------        ------- ---------       -------
           Total
            loans
            held in
            portfolio 180,868   4.58   2,071   167,033  4.71   1,969
  Other                 5,154   4.17      54     4,939  2.87      36
------------------------------        ------- ---------       -------
           Total
            interest-
            earning
            assets    239,979   4.54   2,721   241,718  4.62   2,799
Noninterest-earning
 assets:
   Mortgage servicing
    rights              5,872                    6,408
   Goodwill             6,196                    6,196
   Other(5)            19,359                   23,118
------------------------------                ---------
        Total assets $271,406                 $277,440
==============================                =========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking       $67,431   1.28     214   $67,896  1.44     247
      Savings accounts
       and money
       market deposit
       accounts        26,915   0.75      50    27,667  0.81      56
      Time deposit
       accounts        28,990   2.48     179    29,755  2.50     188
------------------------------        ------- ---------       -------
           Total
            interest-
            bearing
            deposits  123,336   1.45     443   125,318  1.55     491
   Federal funds
    purchased and
    commercial paper    3,493   1.08      10     3,872  1.08      11
   Securities sold
    under agreements
    to repurchase      21,954   1.93     107    27,394  2.17     152
   Advances from
    Federal Home Loan
    Banks              52,921   2.28     305    44,837  2.47     283
   Other               14,032   3.56     124    13,675  3.51     119
------------------------------        ------- ---------       -------
         Total
          interest-
          bearing
          liabilities 215,736   1.83     989   215,096  1.94   1,056
                                      -------                 -------
Noninterest-bearing
 sources:
   Noninterest-
    bearing deposits   30,618                   33,368
   Other
    liabilities(6)      4,964                    8,949
   Stockholders'
    equity             20,088                   20,027
------------------------------                ---------
        Total
         liabilities
         and
         stockholders'
         equity      $271,406                 $277,440
==============================                =========
   Net interest spread
    and net interest
    income                      2.71  $1,732            2.68  $1,743
                                      =======                 =======
   Impact of noninterest-
    bearing sources             0.18                    0.22
   Net interest margin          2.89                    2.90


-------------------------------------------------------------
                              Mar. 31, 2003
                                                     Interest
                                                     Income/
                              Balance          Rate  Expense
-------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning
 assets:
   Federal funds sold and
    securities purchased
      under resale
       agreements                      $5,132  1.25%     $16
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities                      26,209  5.30      347
      Investment
       securities                      14,927  4.53      169
   Loans held for
    sale(2)                            47,301  5.65      668
   Loans held in
    portfolio(2):
      Loans secured
       by real
       estate:
         Home                          83,103  5.21    1,083
         Purchased
          specialty
          mortgage
          finance                      10,075  5.95      150
----------------------------------------------       --------
             Total
              home
              loans                    93,178  5.29    1,233
         Home equity
          loans and
          lines of
          credit                       17,247  5.46      234
       Home
        construction:
            Builder(3)                  1,056  5.03       13
            Custom(4)                     920  7.75       18
         Multi-family                  18,476  5.66      262
         Other real
          estate                        7,747  6.34      122
----------------------------------------------       --------
             Total
              loans
              secured
              by real
              estate                  138,624  5.44    1,882
      Consumer                          1,335  8.96       30
      Commercial
       business                         4,731  4.48       52
----------------------------------------------       --------
           Total
            loans
            held in
            portfolio                 144,690  5.44    1,964
  Other                                 4,532  5.70       64
----------------------------------------------       --------
           Total
            interest-
            earning
            assets                    242,791  5.32    3,228
Noninterest-earning
 assets:
   Mortgage servicing
    rights                              5,456
   Goodwill                             6,208
   Other(5)                            26,285
----------------------------------------------
         Total assets                $280,740
==============================================
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-
       bearing
       checking                       $58,222  1.92      276
      Savings
       accounts and
       money market
       deposit
       accounts                        27,968  1.07       74
      Time deposit
       accounts                        32,866  2.92      237
----------------------------------------------       --------
         Total
          interest-
          bearing
          deposits                    119,056  2.00      587
   Federal funds
    purchased and
    commercial paper                    1,698  1.31        6
   Securities sold
    under agreements
    to repurchase                      20,371  2.75      140
   Advances from
    Federal Home Loan
    Banks                              55,844  2.71      378
   Other                               14,096  3.54      124
----------------------------------------------       --------
         Total
          interest-
          bearing
          liabilities                 211,065  2.36    1,235
                                                     --------
Noninterest-bearing
 sources:
   Noninterest-
    bearing deposits                   38,851
   Other
    liabilities(6)                     10,301
   Stockholders'
    equity                             20,523
----------------------------------------------
       Total
        liabilities
        and
        stockholders'
        equity                       $280,740
==============================================
   Net interest spread and net
    interest income                            2.96   $1,993
                                                     ========
   Impact of
    noninterest-
    bearing sources                            0.32
   Net interest
    margin                                     3.28

------------

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

(2) Nonaccrual loans were included in the average loan amounts
    outstanding.

(3) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale.

(4) Represents construction loans made directly to the intended
    occupant of a single-family residence.

(5) Includes assets of continuing and discontinued operations for the
    quarters ended December 31, 2003 and March 31, 2003.

(6) Includes liabilities of continuing and discontinued operations for
    the quarters ended December 31, 2003 and March 31, 2003.


WM-7

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                         2004      2003      2003      2003      2003
----------------------------------------------------------------------
Deposits
   Retail Deposits:
      Checking:
         Noninterest-
          bearing     $15,107   $13,724   $14,033   $13,244   $12,771
         Interest-
          bearing      66,618    67,990    66,009    61,131    59,820
----------------------------------------------------------------------
           Total
            checking   81,725    81,714    80,042    74,375    72,591
      Savings and
       money market
       deposits        22,452    22,131    22,657    23,171    23,539
      Time deposits(1) 24,128    24,605    25,356    26,591    27,851
----------------------------------------------------------------------
           Total
            retail
            deposits  128,305   128,450   128,055   124,137   123,981
      Commercial
       business         7,038     7,159     6,451     6,083     5,702
      Wholesale         6,219     2,579     4,711     3,287     3,147
      Custodial and
       escrow(2)       19,419    14,993    24,924    32,950    27,042
----------------------------------------------------------------------
           Total
            deposits $160,981  $153,181  $164,141  $166,457  $159,872
======================================================================

(1) Weighted average remaining maturity of time deposits was 16 months
    at March 31, 2004, 14 months at December 31, 2003, 15 months at
    September 30, 2003, 16 months at June 30, 2003 and 15 months at
    March 31, 2003.

(2) Substantially all custodial and escrow deposits are
    noninterest-bearing checking.


                  Mar. 31,   Dec. 31,  Sept. 30,   June 30,   Mar. 31,
                     2004       2003       2003       2003     2003
----------------------------------------------------------------------
Retail Checking
 Accounts (1)
Accounts,
 beginning of
 period             8,066,332 7,882,946 7,637,914 7,461,320 7,258,555
     Net
      accounts
      opened
      during
      the
      quarter         206,903   183,386   245,032   176,594   202,765
----------------------------------------------------------------------
Accounts, end
 of period          8,273,235 8,066,332 7,882,946 7,637,914 7,461,320
======================================================================

(1) Retail checking accounts exclude commercial business accounts. The
    information provided refers to the number of accounts, not dollar
    amounts.

                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                        2004      2003     2003       2003      2003
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
 period                 1,776     1,677     1,602     1,556     1,526
     Net stores
      opened during
      the quarter         (21)(1)    99        75        46        30
----------------------------------------------------------------------
Stores, end of period   1,755     1,776     1,677     1,602     1,556
======================================================================

(1) The Company consolidated 79 grocery store locations into larger,
    existing, retail banking stores.

                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                        2004      2003     2003      2003      2003
----------------------------------------------------------------------
Assets Under
 Management           $19,438   $17,868   $16,017   $15,315   $13,447
======================================================================


WM-8
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                        Quarter Ended
----------------------------------------------------------------------
                       Mar. 31, Dec. 31, Sept. 30,  June 30,  Mar. 31,
                          2004     2003      2003      2003      2003
----------------------------------------------------------------------
Loan Volume
 Home loans:
  Adjustable rate      $21,822  $23,397   $28,225   $24,847   $23,431
  Fixed rate            21,564   28,105    83,360    80,107    72,032
  Specialty mortgage
   finance(1)            7,113    6,031     5,460     4,658     4,529
----------------------------------------------------------------------
   Total home loan
    volume              50,499   57,533   117,045   109,612    99,992
 Home equity loans and
  lines of credit        8,416    7,922     9,369     7,152     5,196
 Home construction
  loans:
  Builder(2)               273      636       787       606       477
  Custom(3)                336      377       363       273       163
 Multi-family            1,525    1,647     2,598     2,022     1,797
 Other real estate         370      655       439       595       281
----------------------------------------------------------------------
   Total loans secured
    by real estate      61,419   68,770   130,601   120,260   107,906
 Consumer                   58       72       146        61        59
 Commercial business       688    1,061     1,191     1,304       814
----------------------------------------------------------------------
   Total loan volume   $62,165  $69,903  $131,938  $121,625  $108,779
======================================================================
Loan Volume by Channel
 Retail                $28,126  $31,630   $55,104   $46,620   $36,193
 Wholesale              15,419   16,334    27,410    27,067    24,860
 Purchased/
  correspondent         18,620   21,939    49,424    47,938    47,726
----------------------------------------------------------------------
   Total loan volume by
    channel            $62,165  $69,903  $131,938  $121,625  $108,779
======================================================================
Refinancing Activity(4)
 Home loan refinancing $33,233  $36,817   $90,762   $87,772   $82,632
 Home equity loans and
  lines of credit and
  consumer               1,107      848     2,030     1,203       693
 Home construction
  loans                     12        6        16        13        12
 Multi-family and other
  real estate              575      690     1,164       893       707
----------------------------------------------------------------------
   Total refinancing   $34,927  $38,361   $93,972   $89,881   $84,044
======================================================================
Home Loan Volume by
 Index
 Short-term adjustable-
  rate loans(5):
  Treasury indices     $13,440  $13,021    $7,076    $5,510    $4,539
  COFI                     110      151       124       198       249
  Other                    218      628       336       223       218
----------------------------------------------------------------------
   Total short-term
    adjustable-rate
    loans               13,768   13,800     7,536     5,931     5,006
 Medium-term
  adjustable-rate
  loans(6)              12,814   13,667    24,138    22,070    21,530
 Fixed-rate loans       23,917   30,066    85,371    81,611    73,456
----------------------------------------------------------------------
   Total home loan
    volume             $50,499  $57,533  $117,045  $109,612   $99,992
======================================================================

Note: Pursuant to regulatory guidance issued in December 2003,
buyouts of delinquent mortgages contained within Government National
Mortgage Association (GNMA) loan servicing pools must be classified as
loans on the balance sheet. Accordingly, total home loan volume
includes GNMA pool buy-out volume of $1.05 billion, $1.30 billion,
$1.67 billion, $1.46 billion and $2.52 billion for the quarters ended
March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003
and March 31, 2003.

(1) Represents purchased Specialty Mortgage Finance loan portfolios
    and mortgages originated by Long Beach Mortgage.
(2) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale.
(3) Represents construction loans made directly to the intended
    occupant of a single-family residence.
(4) Includes loan refinancing entered into by both new and pre-
    existing loan customers.
(5) Short term is defined as adjustable-rate loans that reprice within
    one year or less.
(6) Medium term is defined as adjustable-rate loans that reprice after
    one year.


WM-9

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                        Change from
                                      Dec. 31, 2003 Mar. 31,  Dec. 31,
                                   to Mar. 31, 2004     2004      2003
----------------------------------------------------------------------
Loans by Property Type
   Loans held in portfolio:
      Loans secured by real estate:
         Home                              $4,903  $104,946  $100,043
          Purchased specialty mortgage
           finance                          2,464    15,437    12,973
----------------------------------------------------------------------
            Total home loans                7,367   120,383   113,016
         Home equity loans and lines of
          credit                            3,617    31,264    27,647
         Home construction:
            Builder(1)                         53     1,105     1,052
            Custom(2)                          97     1,265     1,168
         Multi-family                         255    20,579    20,324
         Other real estate                   (141)    6,508     6,649
----------------------------------------------------------------------
               Total loans secured by
                real estate                11,248   181,104   169,856
      Consumer                                (74)      954     1,028
      Commercial business                     644     5,404     4,760
----------------------------------------------------------------------
               Total loans held in
                portfolio                  11,818   187,462   175,644
   Less: allowance for loan and lease
    losses                                    (10)   (1,260)   (1,250)
----------------------------------------------------------------------
               Total net loans held in
                portfolio                  11,808   186,202   174,394
   Loans held for sale(3)                  12,782    33,125    20,343
----------------------------------------------------------------------
               Total net loans            $24,590  $219,327  $194,737
======================================================================

                                         Sept. 30,  June 30,  Mar. 31,
                                             2003      2003      2003
----------------------------------------------------------------------
Loans by Property Type
   Loans held in portfolio:
      Loans secured by real estate:
         Home                             $90,243   $83,839   $83,745
          Purchased specialty mortgage
           finance                         11,366    10,836    10,604
----------------------------------------------------------------------
            Total home loans              101,609    94,675    94,349
         Home equity loans and lines of
          credit                           24,060    20,505    18,089
         Home construction:
            Builder(1)                      1,061     1,121     1,047
            Custom(2)                       1,032       963       926
         Multi-family                      20,191    19,482    18,618
         Other real estate                  6,932     7,122     7,350
----------------------------------------------------------------------
               Total loans secured by
                real estate               154,885   143,868   140,379
      Consumer                              1,121     1,207     1,280
      Commercial business                   4,550     4,975     5,313
----------------------------------------------------------------------
               Total loans held in
                portfolio                 160,556   150,050   146,972
   Less: allowance for loan and lease
    losses                                 (1,549)   (1,530)   (1,530)
----------------------------------------------------------------------
               Total net loans held in
                portfolio                 159,007   148,520   145,442
   Loans held for sale(3)                  35,493    44,870    49,219
----------------------------------------------------------------------
               Total net loans           $194,500  $193,390  $194,661
======================================================================

(1) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale.

(2) Represents construction loans made directly to the intended
    occupant of a single-family residence.

(3) Fair value of loans held for sale was $33.23 billion, $20.34
    billion, $35.53 billion, $44.87 billion and $49.23 billion as of
    March 31, 2004, December 31, 2003, September 30, 2003, June 30,
    2003 and March 31, 2003.


WM-10
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                            Change
                              from
                           Dec. 31,
                              2003            Weighted        Weighted
                               to             Average         Average
                            Mar. 31, Mar. 31, Coupon  Dec. 31,  Coupon
                              2004    2004     Rate    2003     Rate
----------------------------------------------------------------------
Loans Secured by Real Estate
 and MBS
 Selected loans held in
  portfolio secured by real
  estate(1):
  Short-term adjustable-rate
   loans(2):
   COFI                      $ (888) $ 9,878    4.86% $10,766    4.93%
   Treasury indices           7,487   58,981    3.76   51,494    3.66
   Other                      3,892   30,759    4.78   26,867    4.81
----------------------------------------------------------------------
     Total short-term
      adjustable-rate loans  10,491   99,618    4.19   89,127    4.16
  Medium-term adjustable-
   rate loans(3)               (367)  53,209    5.51   53,576    5.56
  Fixed-rate loans            1,115   19,399    6.80   18,284    6.91
----------------------------------------------------------------------
     Total loans held in
      portfolio secured by
      real estate(4)         11,239  172,226    4.89  160,987    4.94
 Loans held for sale(5)      12,730   32,941    5.51   20,211    6.51
----------------------------------------------------------------------
     Total loans secured by
      real estate            23,969  205,167    4.99  181,198    5.12
 MBS(6):
  Short-term adjustable-rate
   MBS(2):
    COFI                       (306)   4,964    3.82    5,270    3.87
    Treasury indices            824    4,225    2.50    3,401    2.94
    Other                         -        9    3.08        9    3.15
----------------------------------------------------------------------
     Total short-term
      adjustable-rate MBS       518    9,198    3.21    8,680    3.50
  Fixed-rate MBS               (224)   1,272    6.38    1,496    6.35
----------------------------------------------------------------------
     Total MBS(7)               294   10,470    3.60   10,176    3.92
----------------------------------------------------------------------
     Total loans secured by
      real estate and MBS   $24,263 $215,637    4.92 $191,374    5.05
======================================================================

                                      Weighted
                                       Average
                            Mar. 31,   Coupon
                              2003      Rate
------------------------------------------------
Loans Secured by Real Estate
 and MBS
 Selected loans held in
  portfolio secured by real
  estate(1):
  Short-term adjustable-rate
   loans(2):
   COFI                      $14,318       5.32%
   Treasury indices           33,237       4.57
   Other                      20,794       5.57
------------------------------------------------
     Total short-term
      adjustable-rate loans   68,349       5.03
  Medium-term adjustable-
   rate loans(3)              43,991       6.26
  Fixed-rate loans            18,715       7.72
------------------------------------------------
     Total loans held in
      portfolio secured by
      real estate(4)         131,055       5.83
 Loans held for sale(5)       49,082       6.04
------------------------------------------------
     Total loans secured by
      real estate            180,137       5.89
 MBS(6):
  Short-term adjustable-rate
   MBS(2):
    COFI                      10,529       4.20
    Treasury indices           8,398       3.61
    Other                      3,440       5.61
------------------------------------------------
     Total short-term
      adjustable-rate MBS     22,367       4.20
  Fixed-rate MBS               3,535       6.42
------------------------------------------------
     Total MBS(7)             25,902       4.50
------------------------------------------------
     Total loans secured by
      real estate and MBS   $206,039       5.72
================================================

(1) Includes total home loans, home equity loans and lines of credit
    and multi- family loans.
(2) Short term is defined as adjustable-rate loans and MBS that
    reprice within one year or less.
(3) Medium term is defined as adjustable-rate loans that reprice after
    one year.
(4) At March 31, 2004, December 31, 2003 and March 31, 2003, the
    adjustable-rate loans with lifetime caps were $149.33 billion,
    $138.58 billion and $109.24 billion with a lifetime weighted
    average cap rate of 12.20%, 12.21% and 12.61%.
(5) Excludes student loans.
(6) Excludes principal-only strips and interest-only strips.
(7) At March 31, 2004, December 31, 2003 and March 31, 2003, the
    adjustable-rate MBS with lifetime caps were $7.48 billion, $8.12
    billion and $22.15 billion with a lifetime weighted average cap
    rate of 11.33%, 11.32% and 11.36%.


                                                         Dec. 31, 2003
                                                      to Mar. 31, 2004
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
 Balance, beginning of period                                 $20,343
  Loans originated and purchased                               33,318
  Loans sold and other                                        (20,536)
----------------------------------------------------------------------
 Balance, end of period                                       $33,125
======================================================================

Rollforward of Loans Held in Portfolio
 Balance, beginning of period                                $175,644
  Loans originated and purchased                               28,847
  Loan payments and other                                     (17,029)
----------------------------------------------------------------------
 Balance, end of period                                      $187,462
======================================================================


WM-11                    Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                           2004     2003      2003     2003     2003
----------------------------------------------------------------------
Home Loan Mortgage
 Banking Income (Expense)
  Loan servicing fees    $   502  $   524  $    542  $   593  $   613
  Amortization of
   mortgage servicing
   rights                   (750)    (604)     (665)  (1,032)    (969)
  Mortgage servicing
   rights (impairment)
   recovery                 (606)     615       368     (309)      37
  Other, net                 (66)     (75)     (220)    (161)    (132)
----------------------------------------------------------------------
      Net home loan
       servicing income
       (expense)            (920)     460        25     (909)    (451)
  Revaluation gain (loss)
   from derivatives:
     Mortgage servicing
      rights risk
      management           1,108     (314)     (317)     745      412
     Loans held for sale
      risk management(1)     (66)       8       145     (147)    (195)
----------------------------------------------------------------------
       Total revaluation
        gain (loss) from
        derivatives        1,042     (306)     (172)     598      217
  Net settlement income
   from certain interest-
   rate swaps                167      190       130       84      140
  Gain (loss) from
   mortgage loans(1)         171       63      (204)     747      643
  Loan related income         71      124       108       91       75
  Gain from sale of
   originated mortgage-
   backed securities           -       61       258        -        1
----------------------------------------------------------------------
     Total home loan
      mortgage banking
      income                 531      592       145      611      625
----------------------------------------------------------------------
  Impact of other
   mortgage servicing
   rights risk management
   instruments(2):
     Gain (loss) from
      certain available-
      for-sale securities      5      (11)      176      140        -
----------------------------------------------------------------------
      Total home loan
       mortgage banking
       income, net of
       other mortgage
       servicing rights
       risk management
       instruments       $   536  $   581  $    321  $   751  $   625
======================================================================
(1) Gain (loss) from mortgage loans net of revaluation gain (loss)
    from derivatives used for loans held for sale risk management was
    a net gain of $105 million for the quarter ended March 31, 2004,
    compared with a net gain of $71 million for the quarter ended
    December 31, 2003, a net loss of $59 million for the quarter ended
    September 30, 2003, a net gain of $600 million for the quarter
    ended June 30, 2003, and a net gain of $448 million for the
    quarter ended March 31, 2003.

(2) Includes only instruments designated for mortgage servicing rights
    risk management and does not include the effects of instruments
    held for asset/liability risk management.


WM-12                   Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                            Quarter Ended
-------------------------------------------------------------------
                                     Mar. 31,  Dec. 31,   Sept. 30,
                                       2004      2003        2003
-------------------------------------------------------------------
Rollforward of Mortgage Servicing
 Rights ("MSR")(1)
   Balance, beginning of period     $  6,354  $  5,870   $   4,598
      Home loans:
         Additions                       241       701       1,587
         Amortization                   (750)     (604)       (665)
         (Impairment) recovery          (606)      615         368
         Sales                             -      (231)        (18)
      Net change in commercial real
       estate MSR                          -         3           -
-------------------------------------------------------------------
   Balance, end of period(2)        $  5,239  $  6,354   $   5,870
===================================================================
Rollforward of Valuation Allowance
 for MSR Impairment
   Balance, beginning of period     $  2,435  $  3,075   $   3,444
      Impairment (recovery)              606      (615)       (368)
      Other than temporary
       impairment                          -         -           -
      Sales                                -       (25)         (1)
      Other                               (6)        -           -
-------------------------------------------------------------------
   Balance, end of period           $  3,035  $  2,435   $   3,075
===================================================================
Rollforward of Loans Serviced for
 Others
   Balance, beginning of period     $582,669  $577,822   $ 583,823
      Home loans:
         Additions                    22,009    51,480     105,883
         Sales                             -      (195)          -
         Loan payments and other     (46,058)  (47,062)   (111,834)
      Net change in commercial real
       estate loans serviced for
       others                          1,187       624         (50)
-------------------------------------------------------------------
   Balance, end of period           $559,807  $582,669   $ 577,822
===================================================================

                                     Mar. 31,  Dec. 31,   Sept. 30,
                                        2004      2003        2003
-------------------------------------------------------------------
Total Servicing Portfolio
      Loans serviced for others     $559,807  $582,669   $ 577,822
      Servicing on retained MBS
       without MSR                     3,208     3,455       3,810
      Servicing on owned loans       204,449   182,604     182,570
      Subservicing portfolio           1,528     1,852         249
-------------------------------------------------------------------
   Total servicing portfolio        $768,992  $770,580   $ 764,451
===================================================================


                                                     Quarter Ended
----------------------------------------------------------------------
                                                    June 30,  Mar. 31,
                                                      2003      2003
----------------------------------------------------------------------
Rollforward of Mortgage Servicing
 Rights ("MSR")(1)
   Balance, beginning of period                   $   5,210  $  5,341
      Home loans:
         Additions                                      976       940
         Amortization                                (1,032)     (969)
         (Impairment) recovery                         (309)       37
         Sales                                         (247)     (141)
      Net change in commercial real
       estate MSR                                         -         2
----------------------------------------------------------------------
   Balance, end of period(2)                      $   4,598  $  5,210
======================================================================
Rollforward of Valuation Allowance
 for MSR Impairment
   Balance, beginning of period                   $   3,864  $  4,521
      Impairment (recovery)                             309       (37)
      Other than temporary impairment                  (579)     (536)
      Sales                                            (150)      (84)
      Other                                               -         -
----------------------------------------------------------------------
   Balance, end of period                         $   3,444  $  3,864
======================================================================
Rollforward of Loans Serviced for
 Others
   Balance, beginning of period                   $ 591,917  $604,504
      Home loans:
         Additions                                  105,992    79,516
         Sales                                       (2,960)        -
         Loan payments and other                   (110,867)  (92,556)
      Net change in commercial real estate loans
       serviced for others                             (259)      453
----------------------------------------------------------------------
   Balance, end of period                         $ 583,823  $591,917
======================================================================

                                                    June 30,  Mar. 31,
                                                       2003      2003
----------------------------------------------------------------------
Total Servicing Portfolio
      Loans serviced for others                   $ 583,823  $591,917
      Servicing on retained MBS
       without MSR                                    4,293     4,843
      Servicing on owned loans                      180,377   180,160
      Subservicing portfolio                          2,453       191
----------------------------------------------------------------------
   Total servicing portfolio                      $ 770,946  $777,111
======================================================================

                                                    Mar. 31, 2004
---------------------------------------------------------------------
                                                  Unpaid    Weighted
                                                 Principal   Average
                                                  Balance  Servicing
                                                               Fee
----------------------------------------------------------------------
                                                          (in basis
                                                            points,
Loans Serviced for Others by Loan Type                    annualized)
      Government                                 $ 62,334      50
      Agency                                      370,582      29
      Private                                     110,396      35
      Specialty home loans                         16,495      50
----------------------------------------------------------------------
   Total loans serviced for others(3)            $559,807      34
======================================================================
(1) Net of valuation allowance.

(2) At March 31, 2004, aggregate mortgage servicing rights fair value
    was $5.25 billion.

(3) Weighted average coupon rate (annualized) was 6.03% at March 31,
    2004.



WM-13
                        Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                                Quarter Ended
----------------------------------------------------------------------
                                          Mar. 31, Dec. 31, Sept. 30,
                                            2004     2003      2003
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
  Balance, beginning of quarter         $   1,250  $ 1,549  $  1,530
  Allowance transferred to loans held
   for sale                                     -        -         -
  Allowance for certain loan
   commitments                                  -        -        17
  Provision (reversal of reserve) for
   loan and lease losses                       56     (202)       76
----------------------------------------------------------------------
                                            1,306    1,347     1,623
  Loans charged off:
     Loans secured by real estate:
        Home                                  (16)     (18)      (22)
        Purchased specialty mortgage
         finance                               (9)     (11)       (9)
----------------------------------------------------------------------
             Total home loan charge-
              offs                            (25)     (29)      (31)
        Home equity loans and lines of
         credit                                (7)      (2)       (4)
        Home construction (1)                  (1)      (1)       (1)
        Multi-family                            -       (1)       (4)
        Other real estate                      (8)     (52)      (16)
----------------------------------------------------------------------
             Total loans secured by
              real estate                     (41)     (85)      (56)
     Consumer                                 (14)     (14)      (20)
     Commercial business                       (6)     (15)      (19)
----------------------------------------------------------------------
             Total loans charged off          (61)    (114)      (95)
  Recoveries of loans previously
   charged off:
     Loans secured by real estate:
        Home                                    -        1         7
        Purchased specialty mortgage
         finance                                1        1         1
----------------------------------------------------------------------
             Total home loan recoveries         1        2         8
        Home equity loans and lines of
         credit                                 1        -         -
        Multi-family                            2        -         -
        Other real estate                       2        5         6
----------------------------------------------------------------------
             Total loans secured by
              real estate                       6        7        14
     Consumer                                   5        5         5
     Commercial business                        4        5         2
----------------------------------------------------------------------
             Total recoveries of loans
              previously charged off           15       17        21
----------------------------------------------------------------------
     Net charge-offs                          (46)     (97)      (74)
----------------------------------------------------------------------
  Balance, end of quarter               $   1,260  $ 1,250  $  1,549
======================================================================

  Net charge-offs (annualized) as a
   percentage of average loans held in
   portfolio                                 0.10 %   0.23 %    0.19 %
  Allowance as a percentage of total
   loans held in portfolio                   0.67     0.71      0.96

                                                      Quarter Ended
----------------------------------------------------------------------
                                                    June 30,  Mar. 31,
                                                      2003     2003
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
  Balance, beginning of quarter                     $ 1,530  $ 1,503
  Allowance transferred to loans held
   for sale                                               -       (3)
  Allowance for certain loan
   commitments                                            -        -
  Provision (reversal of reserve) for
   loan and lease losses                                 81       88
----------------------------------------------------------------------
                                                      1,611    1,588
  Loans charged off:
     Loans secured by real estate:
        Home                                             (9)     (15)
        Purchased specialty mortgage
         finance                                         (9)     (10)
----------------------------------------------------------------------
             Total home loan charge-
              offs                                      (18)     (25)
        Home equity loans and lines of
         credit                                          (4)      (4)
        Home construction (1)                             -        -
        Multi-family                                      -        -
        Other real estate                               (21)     (10)
----------------------------------------------------------------------
             Total loans secured by
              real estate                               (43)     (39)
     Consumer                                           (18)     (17)
     Commercial business                                (31)     (14)
----------------------------------------------------------------------
             Total loans charged off                    (92)     (70)
  Recoveries of loans previously
   charged off:
     Loans secured by real estate:
        Home                                              2        -
        Purchased specialty mortgage
         finance                                          1        1
----------------------------------------------------------------------
             Total home loan
              recoveries                                  3        1
        Home equity loans and lines of
         credit                                           -        -
        Multi-family                                      -        -
        Other real estate                                 2        4
----------------------------------------------------------------------
             Total loans secured by
              real estate                                 5        5
     Consumer                                             3        3
     Commercial business                                  3        4
----------------------------------------------------------------------
             Total recoveries of loans
              previously charged off                     11       12
----------------------------------------------------------------------
     Net charge-offs                                    (81)     (58)
----------------------------------------------------------------------
  Balance, end of quarter                           $ 1,530  $ 1,530
======================================================================

  Net charge-offs (annualized) as a
   percentage of average loans held in
   portfolio                                           0.22 %   0.16 %
  Allowance as a percentage of total
   loans held in portfolio                             1.02     1.04

(1) 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-14
                        Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                           2004    2003      2003      2003     2003
----------------------------------------------------------------------
Nonperforming Assets and
 Restructured Loans
 Nonaccrual loans(1):
 Loans secured by real
  estate:
 Home                    $   622  $   736  $    760  $   804  $   954
 Purchased specialty
  mortgage finance           615      597       553      483      479
----------------------------------------------------------------------
      Total home
       nonaccrual loans    1,237    1,333     1,313    1,287    1,433
 Home equity loans and
  lines of credit             45       47        46       49       44
 Home construction:
   Builder(2)                 23       25        31       31       38
   Custom(3)                   8       10         9        9        9
 Multi-family                 23       19        39       54       49
 Other real estate           153      153       309      369      402
----------------------------------------------------------------------
      Total nonaccrual
       loans secured by
       real estate         1,489    1,587     1,747    1,799    1,975
 Consumer                      7        8        10       15       14
 Commercial business          46       31        56       79       73
----------------------------------------------------------------------
      Total nonaccrual
       loans held in
       portfolio           1,542    1,626     1,813    1,893    2,062
 Foreclosed assets           307      311       293      307      325
----------------------------------------------------------------------
      Total nonperforming
       assets            $ 1,849  $ 1,937  $  2,106  $ 2,200  $ 2,387
      As a percentage of
       total assets         0.66%    0.70%     0.73%    0.78%    0.86%
 Restructured loans      $   107  $   111  $    118  $    89  $    99
----------------------------------------------------------------------
        Total
         nonperforming
         assets and
         restructured
         loans           $ 1,956  $ 2,048  $  2,224  $ 2,289  $ 2,486
======================================================================

(1) Excludes nonaccrual loans held for sale of $135 million at March
    31, 2004. Prior periods also reflect the exclusion of nonaccrual
    loans held for sale of $66 million, $67 million, $73 million and
    $72 million at December 31, September 30, June 30 and March 31,
    2003. Loans held for sale are accounted for at lower of aggregate
    cost or market value, with valuation changes included as
    adjustments to gain from mortgage loans.

(2) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale.

(3) Represents construction loans made directly to the intended
    occupant of a single-family residence.

    CONTACT: Washington Mutual, Inc.
             Media Contact:
              Alan Gulick, 206-377-3637
              alan.gulick@wamu.net
             or
             Investor Contacts:
              JoAnn DeGrande, 206-461-3186
              joann.degrande@wamu.net
              or
              Ruthanne King, 206-461-6421
              ruthanne.king@wamu.net

    SOURCE: Washington Mutual, Inc.