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Washington Mutual Announces Third Quarter 2005 Earnings; Diluted EPS Increased 21 Percent; Board of Directors Increases Cash Dividend

SEATTLE--(BUSINESS WIRE)--Oct. 19, 2005--Washington Mutual, Inc. (NYSE:WM) today announced third quarter 2005 net income of $821 million, or $0.92 per diluted share, up 21 percent on a per share basis when compared with net income of $674 million, or $0.76 per diluted share, in the third quarter of 2004.

Washington Mutual's Board of Directors declared a cash dividend of 49 cents per share on the company's common stock, up from 48 cents per share in the previous quarter. Dividends on the common stock are payable on November 15, 2005 to shareholders of record as of October 31, 2005.

"Our solid third quarter earnings reflected excellent retail banking household growth driven by our long track record of industry leading customer service, as well as our ability to adjust to a challenging interest rate environment," said Kerry Killinger, chairman and chief executive officer. "The results also highlight our continued focus on balanced growth, earnings diversity and risk management."

Killinger added: "This month we welcomed Providian to the Washington Mutual family as our new Card Services Division. We continue to make outstanding progress on our integration efforts and I believe that we will look back on this acquisition as a transformational event for Washington Mutual."

On October 1, Washington Mutual completed its acquisition of Providian Financial in a stock and cash transaction valued at approximately $6.1 billion. For each share of Providian common stock, Providian stockholders received 0.4005 shares of Washington Mutual common stock and $2.00 in cash.

    Key Results:

    --  Total average assets of $327.29 billion in the third quarter
        of 2005 increased $6.45 billion, or 2 percent, from $320.85
        billion in the second quarter of 2005 and increased $43.62
        billion, or 15 percent, from $283.67 billion in the third
        quarter of 2004, reflecting continued strong asset generation;

    --  The net interest margin declined to 2.61 percent in the third
        quarter from 2.66 percent in the second quarter of 2005 and
        2.77 percent in the third quarter of 2004, reflecting the
        flattening of the yield curve and the impact of a 200 basis
        point increase in the Fed Funds rate over the past twelve
        months;

    --  Net interest income of $1.92 billion in the third quarter of
        2005 was down slightly from the second quarter of 2005, but
        was up from $1.74 billion in the third quarter of 2004 as the
        growth in average interest-earning assets over the past 12
        months more than offset net interest margin compression;

    --  The provision for loan and lease losses was $52 million in the
        third quarter of 2005, of which $37 million represents a
        special provision related to Hurricane Katrina. The quarter's
        provision reflects the continuing positive credit environment
        and, excluding the special provision for Katrina, compares
        favorably with the second quarter provision of $31 million and
        the $56 million in the third quarter of 2004;

    --  Depositor and other retail banking fees of $578 million in the
        third quarter of 2005 were up $38 million, or 7 percent, from
        the second quarter of 2005 and $64 million, or 12 percent,
        from the third quarter of 2004. The improvement reflects the
        strong growth in net new checking accounts over the period;

    --  Revenue from sales and servicing of home mortgage loans,
        including the results of all MSR risk management instruments,
        was $497 million in the third quarter of 2005 compared with
        $403 million in the second quarter of 2005 and $549 million in
        the third quarter of 2004. The solid results reflect the
        company's success in managing the MSR in an increasingly
        challenging interest rate environment and a continuing high
        volume of loans sold into the secondary market;

    --  Noninterest expense of $1.93 billion in the third quarter was
        up from $1.83 billion in the second quarter of 2005 and $1.87
        billion in the third quarter of 2004, reflecting the continued
        build out of the franchise. The company remains confident in
        its ability to keep expenses for the full year essentially
        flat with 2004 at around $7.5 billion.

    THIRD QUARTER FINANCIAL SUMMARY

    Net Interest Income

The net interest margin in the third quarter was 2.61 percent, down 5 basis points from 2.66 percent in the second quarter of 2005 and 16 basis points from 2.77 percent in the third quarter of 2004. The decrease in the net interest margin from prior quarters reflects the flattening of the yield curve and the continuing rise in short-term interest rates since June of 2004. The upward repricing of the company's interest-bearing assets continues to lag the increase in the cost of its interest-bearing liabilities.

Net interest income of $1.92 billion in the third quarter was down slightly compared with the second quarter of 2005 as the decline in the net interest margin more than offset the 2 percent increase in average interest-earning assets. Compared with the third quarter a year ago, net interest income was up 10 percent from $1.74 billion which reflected an 18 percent increase in average interest-earning assets that more than offset the margin compression.

Noninterest Income

Noninterest income was $1.37 billion in the third quarter of 2005, up from $1.27 billion in the second quarter of 2005 and $1.26 billion in the third quarter of 2004.

The increase from the second quarter reflects higher sales volume and subsequent gain from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments. These items totaled $279 million in the third quarter of 2005, compared with $171 million in the second quarter of 2005.

The year-over-year positive variance in noninterest income was partly due to a $147 million loss on the early extinguishment of borrowings in the third quarter of last year. Also included in the variance were higher depositor and other retail banking fees in this year's third quarter. And, while gains from mortgage loans in the most recent quarter were higher than in the third quarter of 2004, this increase was more than offset by the highly favorable MSR performance of a year ago.

Noninterest Expense

Noninterest expense of $1.93 billion was up $97 million from the second quarter of 2005 and up $56 million from the third quarter of 2004. The increase in expenses reflects company growth, primarily the opening of 56 new retail banking stores during the quarter and pre-opening expenses incurred during the quarter related to openings scheduled for the fourth quarter. Year-to-date expenses of $5.59 billion were unchanged from the prior year as productivity improvements and expense management funded the company's retail expansion. The company's efficiency ratio was 58.52 percent in the third quarter of 2005, compared with 57.24 percent in the second quarter of 2005 and 62.19 percent in the third quarter of 2004.

Lending

Total loan volume was $70.73 billion in the third quarter of 2005, up from $67.62 billion in the second quarter of 2005 and $61.83 billion in the third quarter of 2004. This quarter's solid performance reflected continuing strong loan demand and relatively low interest rates.

Total home loan volume in the third quarter of 2005 was $56.14 billion, compared with $53.40 billion in the second quarter of 2005 and $47.76 billion in the third quarter of 2004. Adjustable-rate loans made up 61 percent of total home loan volume in the third quarter of 2005, compared with 62 percent in the second quarter of 2005 and 67 percent in the third quarter of 2004. Home loan volume in the third quarter of 2005 included record volume from the company's subsidiary Long Beach Mortgage Company.

The company continued to see strong home equity loan and line of credit and multi-family lending volumes in the third quarter of 2005. Home equity loan and line of credit volume of $10.83 billion in the quarter was comparable with volume of $10.89 billion in the prior quarter and $10.53 billion in the third quarter of 2004. Multi-family lending volume was $2.58 billion in the third quarter of 2005, up from $2.46 billion in the second quarter of 2005 and $2.05 billion in the third quarter of 2004.

Credit Quality

At September 30, 2005, nonperforming assets as a percentage of total assets were 0.52 percent, compared with 0.53 percent at June 30, 2005, and 0.61 percent at September 30, 2004. Net charge-offs for the quarter were $31 million versus $39 million in the second quarter of 2005 and $27 million in the third quarter of 2004, and remain well below expectations due to the company's proactive management of the portfolio and the continued strength of the housing market. The total provision of $52 million included a $37 million special provision related to Hurricane Katrina. The allowance for loan and lease losses was $1.26 billion at September 30, 2005, up 2 percent from $1.24 billion at June 30, 2005.

Balance Sheet and Capital Management

Average assets of $327.29 billion increased 2 percent from the second quarter of 2005 and 15 percent from the third quarter of 2005, reflecting strong loan volume offset by secondary market sales. The average balance of loans held for sale increased during the quarter to $49.75 billion from $44.88 billion in the prior quarter and $28.22 billion in the third quarter of 2004.

Average deposits of $188.32 billion during the third quarter were up 3 percent from the second quarter and up 12 percent from the third quarter of 2004. The year-over-year increase primarily reflects the growth in retail time deposits and wholesale deposits.

The company's ratio of tangible common equity to tangible assets was 5.09 percent at the end of the quarter. During the quarter, the company repurchased approximately 2 million shares of its stock at an average price of $41.77. 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.

    THIRD QUARTER OPERATING SEGMENT RESULTS

    Retail Banking and Financial Services Group Financial Performance

Net income for the company's Retail Banking and Financial Services segment was $548 million in the third quarter of 2005, down 5 percent from $579 million in the second quarter of 2005, but up 8 percent from $508 million in the third quarter of 2004. On a linked quarter basis, net interest income was down $38 million from second quarter's record level due mainly to a decline in the average balance of the home loans portfolio along with margin compression. Noninterest income of $786 million in the quarter was up from $751 million in the second quarter of 2005 and $715 million in the third quarter of 2004 reflecting the growth in depositor and other retail banking fees. The increase in noninterest expense to $1.21 billion during the third quarter from $1.17 billion in the second quarter and $1.11 billion in the third quarter of 2004 reflected the addition of 56 new retail stores during the quarter and 184 new retail stores from a year ago.

The average balance of home equity loans and lines of credit was $49.24 billion during the third quarter, a 28 percent increase in the past twelve months. Average retail deposits of $138.74 billion were up 2 percent from the second quarter of 2005 and were up 5 percent from the third quarter of 2004. Contributing to the increase was the addition of 1.3 million net new transaction accounts over the past 12 months.

The company's retail banking cross-sell ratio increased to 6.09 products and services, up from 5.83 at September 30, 2004. Over the past year, WM Advisors' assets under management grew by $3.93 billion, or 19 percent, to $24.55 billion at September 30, 2005.

Home Loans Group Financial Performance

Net income for the Home Loans segment, which excludes purchased specialty mortgage finance and Long Beach Mortgage Company, was $165 million in the third quarter of 2005, compared with $208 million in the second quarter of 2005 and $273 million in the third quarter of 2004. The decrease from the comparable quarters reflects a decline in noninterest income due to lower gain from mortgage loans driven by a more competitive pricing environment for prime home loans sold in the secondary market, as well as the increasing cost of hedging the MSR as interest rates have risen throughout the year. Also contributing to around half of the linked quarter variance were gains recorded in the second quarter related to inter-segment sales of loans during the first half of 2005. While these gains affected segment results, they did not impact consolidated net income.

Noninterest expense of $580 million in the third quarter of 2005 was essentially flat with the second quarter of 2005, but was down $34 million, or 6 percent, from $614 million in the third quarter of 2004 as the hiring of additional sales staff was partially offset by continued productivity and efficiency improvements.

The Home Loans segment loan volume in the third quarter of 2005 was $48.08 billion, compared with $44.86 billion in the second quarter of 2005 and $40.49 billion in the third quarter of last year, as the strong housing market and relatively low interest rates continued to drive volume.

Commercial Group Financial Performance

Net income for the Commercial Group segment, which includes Long Beach Mortgage Company, was $201 million in the third quarter of 2005, up from $147 million in the second quarter of 2005 and $139 million in the third quarter of 2004. Noninterest income of $156 million was up substantially from $70 million in the second quarter of 2005 and $64 million in the third quarter of 2004 on a higher level of gain from mortgage loans, along with a $52 million increase in the valuation of Long Beach residuals, a significant portion of which we anticipate selling in the fourth quarter.

Loan volume was $11.39 billion in the third quarter of 2005, a 3 percent increase from $11.04 billion in the second quarter of 2005 and a 60 percent increase from $7.10 billion in the third quarter of 2004. The increase in loan volume in the third quarter of 2005 was driven by record loan volume in Long Beach Mortgage Company and continued strong volumes in the multi-family lending business.

Average loans in the Commercial Group were $50.44 billion in the third quarter of 2005, up from $46.18 billion in the second quarter of 2005 and up $12.57 billion, or 33 percent, from the third quarter of 2004. Total average commercial deposits were $8.65 billion in the third quarter of 2005, up from both the prior quarter and last year's third quarter.

Washington Mutual Card Services

Washington Mutual Card Services is the company's newest business line -- the result of the acquisition of Providian Financial. As Providian was acquired on October 1, Providian's operating results are not included in Washington Mutual's third quarter financial statements, but will be reflected in Washington Mutual's fourth quarter results.

Company Updates

On September 20th, Washington Mutual announced the election of Thomas C. Leppert to its board of directors. Leppert, 51, is chairman of the board and chief executive officer of The Turner Corporation.

On October 18, Washington Mutual's board of directors approved a new company stock repurchase program. Under the new program, Washington Mutual may repurchase up to 100 million shares of common stock. There is no fixed termination date for the new program, and purchases may be made in the open market, through block trades, private transactions, or otherwise.

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 September 30, 2005, Washington Mutual and its subsidiaries had assets of $333.62 billion. Washington Mutual currently operates more than 2,500 retail 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 Wednesday, October 19, 2005, at 5:00 p.m. EDT and will be hosted by Kerry Killinger, chairman and chief executive officer, Steve Rotella, president and chief operating officer, and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-391-7808. Participants calling from outside the United States may dial 210-234-0006. 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 for 30 days following the call. A recording of the conference call will be available after 7:00 p.m. EDT on Wednesday, October 19, 2005, through 2:59 a.m. EDT on Saturday, October 29, 2005. The recorded message will be available at 866-372-3813. Callers from outside the United States may dial 203-369-0252.

Forward Looking Statement

Our Form 10-K for 2004 and other documents that we filed with the Securities and Exchange Commission have 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:

    --  Volatile interest rates impact the mortgage banking business
        and could adversely affect earnings;

    --  Rising unemployment or a decrease in housing prices could
        adversely affect credit performance;

    --  The potential for negative amortization in the option
        adjustable-rate mortgage product could have an adverse effect
        on the company's credit performance;

    --  The company faces competition from banking and nonbanking
        companies;

    --  Changes in the regulation of financial services companies and
        housing government-sponsored enterprises, and in particular,
        declines in the liquidity of the mortgage loan secondary
        market, could adversely affect business;

    --  General business and economic conditions, including movements
        in interest rates, the slope of the yield curve and the
        potential overextension of housing prices in certain
        geographic markets, may significantly affect the company's
        business activities and earnings;

    --  Negative public opinion could damage the company's reputation
        and adversely affect earnings; and,

    --  Matters related to Washington Mutual Card Services, including,
        among others, risk related to integration of systems and the
        realization of expected growth opportunities.
WM-1

                        Washington Mutual, Inc.
                   Consolidated Statements of Income
             (dollars in millions, except per share data)
                              (unaudited)



                                       Quarter Ended
----------------------------------------------------------------------
                     Sept. 30, June 30,   Mar. 31,  Dec. 31, Sept. 30,
                       2005      2005      2005      2004      2004
--------------------- --------- --------- --------- --------- --------
Interest Income
 Loans held for sale $    661  $    576  $    470  $    393  $    341
 Loans held in
  portfolio             2,862     2,754     2,544     2,421     2,226
 Available-for-sale
  securities              238       234       224       157       163
 Trading securities       114        91        79        66        40
 Other interest and
  dividend income          65        51        43        29        41
--------------------- --------- --------- --------- --------- --------
      Total interest
       income           3,940     3,706     3,360     3,066     2,811
Interest Expense
 Deposits                 996       852       696       604       539
 Borrowings             1,028       928       774       612       532
--------------------- --------- --------- --------- --------- --------
      Total interest
       expense          2,024     1,780     1,470     1,216     1,071
--------------------- --------- --------- --------- --------- --------
           Net interest
            income      1,916     1,926     1,890     1,850     1,740
 Provision for loan
  and lease losses         52        31        16        37        56
--------------------- --------- --------- --------- --------- --------
           Net interest
            income after
            provision for
            loan and
            lease
            losses      1,864     1,895     1,874     1,813     1,684
Noninterest Income
 Revenue from sales
  and servicing of
  home mortgage loans     714       118       777       352       504
 Depositor and other
  retail banking fees     578       540       490       515       514
 Securities fees and
  commissions             111       112       110       110       104
 Insurance income          42        47        46        47        61
 Portfolio loan
  related income          103        96        85       101       109
 Trading securities
  income (loss)          (171)      285       (98)       26        51
 Gain (loss) from
  other available-for-
  sale securities         (32)       25      (122)      (23)       11
 Loss on
  extinguishment of
  borrowings                -         -         -         -      (147)
 Other income              29        44       120        89        57
--------------------- --------- --------- --------- --------- --------
           Total
            noninterest
            income      1,374     1,267     1,408     1,217     1,264
Noninterest Expense
 Compensation and
  benefits                939       886       876       839       841
 Occupancy and
  equipment               372       350       402       462       404
 Telecommunications
  and outsourced
  information services    108       100       104       115       118
 Depositor and other
  retail banking
  losses                   61        49        55        61        54
 Advertising and
  promotion                81        77        55        57        76
 Professional fees         48        38        34        54        34
 Other expense            316       328       313       350       342
--------------------- --------- --------- --------- --------- --------
           Total
            noninterest
            expense     1,925     1,828     1,839     1,938     1,869
--------------------- --------- --------- --------- --------- --------
              Income
               before
               income
               taxes    1,313     1,334     1,443     1,092     1,079
              Income
               taxes      492       490       541       424       405
--------------------- --------- --------- --------- --------- --------
Net Income           $    821  $    844  $    902  $    668  $    674
===================== ========= ========= ========= ========= ========

Earnings Per Common
 Share:
 Basic               $   0.95  $   0.98  $   1.04  $   0.77  $   0.78
 Diluted                 0.92      0.95      1.01      0.76      0.76

Dividends declared
 per common share        0.48      0.47      0.46      0.45      0.44
Basic weighted
 average number of
 common shares
 outstanding (in
 thousands)           866,541   865,221   864,933   863,055   862,004
Diluted weighted
 average number of
 common shares
 outstanding (in
 thousands)           888,495   887,250   888,789   883,991   882,323


WM-2

                        Washington Mutual, Inc.
                   Consolidated Statements of Income
             (dollars in millions, except per share data)
                              (unaudited)



                                                   Nine Months Ended
---------------------------------------------------------------------
                                                   Sept. 30, Sept. 30,
                                                       2005      2004
--------------------------------------------------- --------- --------
Interest Income
   Loans held for sale                             $  1,708  $  1,079
   Loans held in portfolio                            8,160     6,404
   Available-for-sale securities                        695       607
   Trading securities                                   284        85
   Other interest and dividend income                   160       109
--------------------------------------------------- --------- --------
          Total interest income                      11,007     8,284
Interest Expense
   Deposits                                           2,544     1,440
   Borrowings                                         2,731     1,578
--------------------------------------------------- --------- --------
          Total interest expense                      5,275     3,018
--------------------------------------------------- --------- --------
               Net interest income                    5,732     5,266
   Provision for loan and lease losses                   99       172
--------------------------------------------------- --------- --------
               Net interest income after provision
                for loan and lease losses             5,633     5,094
Noninterest Income
   Revenue from sales and servicing of home
    mortgage loans                                    1,609     1,035
   Depositor and other retail banking fees            1,608     1,484
   Securities fees and commissions                      334       315
   Insurance income                                     135       179
   Portfolio loan related income                        284       299
   Trading securities income                             15        64
   Gain (loss) from other available-for-sale
    securities                                         (129)       73
   Loss on extinguishment of borrowings                   -      (237)
   Other income                                         192       183
--------------------------------------------------- --------- --------
          Total noninterest income                    4,048     3,395
Noninterest Expense
   Compensation and benefits                          2,701     2,589
   Occupancy and equipment                            1,124     1,197
   Telecommunications and outsourced information
    services                                            311       364
   Depositor and other retail banking losses            165       134
   Advertising and promotion                            213       219
   Professional fees                                    119       105
   Other expense                                        958       989
--------------------------------------------------- --------- --------
          Total noninterest expense                   5,591     5,597
--------------------------------------------------- --------- --------
               Income from continuing operations
                before income taxes                   4,090     2,892
               Income taxes                           1,523     1,081
--------------------------------------------------- --------- --------
                    Income from continuing
                     operations, net of taxes         2,567     1,811
--------------------------------------------------- --------- --------
Discontinued Operations
               Loss from discontinued operations
                before income taxes                       -       (32)
               Gain on disposition of discontinued
                operations                                -       676
               Income taxes                               -       245
--------------------------------------------------- --------- --------
                    Income from discontinued
                     operations, net of taxes             -       399
--------------------------------------------------- --------- --------
Net Income                                         $  2,567  $  2,210
=================================================== ========= ========

Basic Earnings Per Common Share:
    Income from continuing operations              $   2.97  $   2.10
    Income from discontinued operations, net              -      0.46
                                                    --------  --------
    Net income                                         2.97      2.56

Diluted Earnings Per Common Share:
    Income from continuing operations                  2.89      2.05
    Income from discontinued operations, net              -      0.45
                                                    --------  --------
    Net income                                         2.89      2.50

Dividends declared per common share                    1.41      1.29
Basic weighted average number of common shares
 outstanding (in thousands)                         865,571   861,933
Diluted weighted average number of common shares
 outstanding (in thousands)                         888,184   884,068


WM-3

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




                    Sept. 30,  June 30,  Mar. 31,  Dec. 31, Sept. 30,
                       2005      2005      2005      2004      2004
------------------- ---------  -------- ---------  --------- ---------
Assets
 Cash and cash
  equivalents        $  4,924  $  4,614  $  4,811  $  4,455  $  4,689
 Federal funds sold
  and securities
  purchased under
  agreements to
  resell                3,194       625     1,152        82        30
 Trading securities     7,351     5,687     6,066     5,588     3,113
 Available-for-sale
  securities, total
  amortized cost of
  $20,757, $18,999,
  $20,569, $19,047 and
  $16,312:
    Mortgage-backed
     securities        17,161    14,396    15,947    14,923    10,168
    Investment
     securities         3,603     4,852     4,756     4,296     6,319
 Loans held for sale   48,018    51,122    41,197    42,743    29,184
 Loans held in
  portfolio           218,194   212,737   214,114   207,071   206,158
 Allowance for loan
  and lease losses     (1,264)   (1,243)   (1,280)   (1,301)   (1,322)
------------------- ---------  -------- ---------  --------- ---------
      Total loans
       held in
       portfolio,
       net of
       allowance for
       loan and
       lease losses   216,930   211,494   212,834   205,770   204,836
 Investment in
  Federal Home Loan
  Banks                 4,228     4,194     3,973     4,059     3,883
 Mortgage servicing
  rights                7,042     5,730     6,802     5,906     6,112
 Goodwill               6,196     6,196     6,196     6,196     6,196
 Other assets          14,975    14,623    15,962    13,900    14,298
------------------- ---------  -------- ---------  --------- ---------
       Total assets  $333,622  $323,533  $319,696  $307,918  $288,828
=================== =========  ======== =========  ========= =========
Liabilities
 Deposits:
   Noninterest-
    bearing deposits $ 36,850  $ 35,518  $ 34,941  $ 32,780  $ 32,250
   Interest-bearing
    deposits          153,562   148,799   148,690   140,878   136,445
------------------- ---------  -------- ---------  --------- ---------
       Total deposits 190,412   184,317   183,631   173,658   168,695
 Federal funds
  purchased and
  commercial paper      7,229     5,864     2,053     4,045     7,025
 Securities sold
  under agreements to
  repurchase           14,508    14,089    16,716    15,944    15,611
 Advances from
  Federal Home Loan
  Banks                69,405    71,534    66,730    70,074    59,758
 Other borrowings      23,994    20,752    21,938    18,498    12,747
 Other liabilities      5,478     4,627     6,861     4,473     4,172
------------------- ---------  -------- ---------  --------- ---------
       Total
        liabilities   311,026   301,183   297,929   286,692   268,008
Stockholders' equity   22,596    22,350    21,767    21,226    20,820
------------------- ---------  -------- ---------  --------- ---------
       Total
        liabilities
        and
        stockholders'
        equity       $333,622  $323,533  $319,696  $307,918  $288,828
=================== =========  ======== =========  ========= =========
Common shares
 outstanding at end
 of period (in
 thousands)(1)        877,651   878,384   877,287   874,262   873,085
Book value per
 common share(2)     $  25.92  $  25.62  $  24.98  $  24.45  $  24.01
Tangible book value
 per common share(2)    18.97     18.66     18.01     17.45     16.99
Employees at end of
 period                56,214    54,377    52,488    52,579    55,488
--------------------

(1) Includes 6,000,000 shares held in escrow in all periods reported.

(2) Excludes 6,000,000 shares held in escrow in all periods reported.


WM-4

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

                                         Quarter Ended
----------------------------------------------------------------------
                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                           2005     2005     2005     2004     2004
----------------------- --------- -------- -------- -------- ---------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                   $22,350  $21,767  $21,226  $20,820  $20,369
Net income                    821      844      902      668      674
Other comprehensive (loss)
 income, net of tax          (158)      98       (8)      49       98
Cash dividends declared on
 common stock                (419)    (409)    (402)    (390)    (381)
Common stock repurchased
 and retired                  (98)       -     (100)       -        -
Common stock issued           100       50      149       79       60
-------------------------- -------- -------- -------- -------- -------
Balance, end of period    $22,596  $22,350  $21,767  $21,226  $20,820
========================== ======== ======== ======== ======== =======


WM-5

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

                                       Quarter Ended
---------------------------------------------------------------------
                       Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                          2005     2005     2005     2004      2004
----------------------- -------- -------- -------- -------- ---------
RETAIL BANKING AND FINANCIAL
 SERVICES GROUP
 Condensed income
  statement:
   Net interest income $  1,346 $  1,384 $  1,343 $  1,323 $   1,255
   Provision for loan
    and lease losses         51       42       37       34        42
   Noninterest income       786      751      695      717       715
   Inter-segment
    revenue                  12       11       12        8         3
   Noninterest expense    1,211    1,173    1,146    1,129     1,113
----------------------- -------- -------- -------- -------- ---------
   Income before income
    taxes                   882      931      867      885       818
   Income taxes             334      352      328      318       310
----------------------- -------- -------- -------- -------- ---------
       Net income      $    548 $    579 $    539 $    567 $     508
======================= ======== ======== ======== ======== =========
 Performance and other
  data:
   Efficiency ratio(1)    50.41%   48.61%   49.74%   48.83%    49.83%
   Average loans       $179,361 $181,396 $177,635 $177,204 $ 167,569
   Average assets       191,909  194,008  190,478  189,873   180,003
   Average deposits     138,741  135,539  132,982  132,773   131,850
   Loan volume           11,191   11,704   12,493   13,337    14,178
   Employees at end of
    period               30,030   28,950   27,609   27,336    27,104

HOME LOANS GROUP
 Condensed income
  statement:
   Net interest income $    327 $    303 $    286 $    293 $     287
   Noninterest income       530      617      682      566       769
   Inter-segment
    expense                  12       11       12        8         3
   Noninterest expense      580      574      567      629       614
----------------------- -------- -------- -------- -------- ---------
   Income before income
    taxes                   265      335      389      222       439
   Income taxes             100      127      147       80       166
----------------------- -------- -------- -------- -------- ---------
       Net income      $    165 $    208 $    242 $    142 $     273
======================= ======== ======== ======== ======== =========
 Performance and other
  data:
   Efficiency ratio(1)    62.41%   57.43%   53.85%   67.71%    53.31%
   Average loans       $ 33,415 $ 31,434 $ 27,765 $ 24,880 $  22,611
   Average assets        54,062   51,542   49,019   44,195    40,037
   Average deposits      15,402   13,940   13,107   15,121    15,385
   Loan volume           48,082   44,855   38,498   41,782    40,491
   Employees at end of
    period               12,958   12,534   12,565   13,843    16,524

COMMERCIAL GROUP
 Condensed income
  statement:
   Net interest income $    356 $    346 $    320 $    318 $     320
   Provision for loan
    and lease losses          4        2        2        9         7
   Noninterest income       156       70      156       57        64
   Noninterest expense      185      179      161      182       154
----------------------- -------- -------- -------- -------- ---------
   Income before income
    taxes                   323      235      313      184       223
   Income taxes             122       88      118       65        84
----------------------- -------- -------- -------- -------- ---------
       Net income      $    201 $    147 $    195 $    119 $     139
======================= ======== ======== ======== ======== =========
 Performance and other
  data:
   Efficiency ratio(1)    30.34%   35.90%   27.65%   40.40%    32.26%
   Average loans       $ 50,441 $ 46,180 $ 40,734 $ 39,956 $  37,871
   Average assets        54,970   50,514   44,793   44,003    42,125
   Average deposits       8,646    7,641    7,298    7,744     7,775
   Loan volume           11,392   11,039    8,430    7,997     7,102
   Employees at end of
    period                3,923    3,747    3,484    3,385     3,490



                                  Nine Months Ended
                                 -------------------
                                 Sept. 30, Sept. 30,
                                   2005      2004
-----------------------          --------- ---------
RETAIL BANKING AND FINANCIAL
 SERVICES GROUP
 Condensed income
  statement:
   Net interest income           $  4,074  $  3,666
   Provision for loan
    and lease losses                  130       144
   Noninterest income               2,232     2,041
   Inter-segment
    revenue                            34        15
   Noninterest expense              3,530     3,293
-----------------------           --------  --------
   Income before income
    taxes                           2,680     2,285
   Income taxes                     1,013       866
-----------------------           --------  --------
       Net income                $  1,667  $  1,419
=======================           ========  ========
 Performance and other
  data:
   Efficiency ratio(1)              49.59%    50.79%
   Average loans                 $179,468  $158,670
   Average assets                 192,135   170,935
   Average deposits               135,775   129,518
   Loan volume                     35,389    41,944
   Employees at end of
    period                         30,030    27,104

HOME LOANS GROUP
 Condensed income
  statement:
   Net interest income           $    916  $    945
   Noninterest income               1,830     1,738
   Inter-segment
    expense                            34        15
   Noninterest expense              1,720     1,957
-----------------------           --------  --------
   Income before income
    taxes                             992       711
   Income taxes                       374       268
-----------------------           --------  --------
       Net income                $    618  $    443
=======================           ========  ========
 Performance and other
  data:
   Efficiency ratio(1)              57.72%    67.52%
   Average loans                 $ 30,892  $ 23,158
   Average assets                  51,559    41,168
   Average deposits                14,158    16,695
   Loan volume                    131,435   140,430
   Employees at end of
    period                         12,958    16,524

COMMERCIAL GROUP
 Condensed income
  statement:
   Net interest income           $  1,022  $    996
   Provision for loan
    and lease losses                    7        31
   Noninterest income                 381       246
   Noninterest expense                525       438
-----------------------           --------  --------
   Income before income
    taxes                             871       773
   Income taxes                       328       292
-----------------------           --------  --------
       Net income                $    543  $    481
=======================           ========  ========
 Performance and other
  data:
   Efficiency ratio(1)              31.08%    28.12%
   Average loans                 $ 45,823  $ 37,232
   Average assets                  50,132    41,963
   Average deposits                 7,867     6,894
   Loan volume                     30,860    20,981
   Employees at end of
    period                          3,923     3,490


(This table is continued on "WM-6".)

(1) 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).


WM-6

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

                                       Quarter Ended
---------------------------------------------------------------------
(This table is          Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
 continued from "WM-5".)   2005     2005     2005     2004     2004
-----------------------  -------- -------- -------- -------- --------
CORPORATE SUPPORT/TREASURY AND OTHER
 Condensed income statement:
   Net interest expense $   (228)$   (222)$   (172)$   (197)$   (232)
   Provision for loan
    and lease losses           -        -        -        2        1
   Noninterest income
    (expense)                (48)     (36)     (63)      16     (122)
   Noninterest expense       161      112      173      210      200
-----------------------  -------- -------- -------- -------- --------
   Loss from continuing
    operations before
    income taxes            (437)    (370)    (408)    (393)    (555)
   Income tax benefit       (176)    (148)    (164)    (160)    (216)
-----------------------  -------- -------- -------- -------- --------
     Loss from
      continuing
      operations            (261)    (222)    (244)    (233)    (339)
   Income from
    discontinued
    operations, net of
    taxes                      -        -        -        -        -
-----------------------  -------- -------- -------- -------- --------
       Net loss         $   (261)$   (222)$   (244)$   (233)$   (339)
=======================  ======== ======== ======== ======== ========
 Performance and other data:
   Average loans        $  1,096 $  1,053 $  1,049 $    961 $    928
   Average assets         28,051   26,525   25,664   20,953   23,326
   Average deposits       25,531   26,401   21,798   18,235   13,856
   Loan volume                67       20       94      105       54
   Employees at end of
    period                 9,303    9,146    8,830    8,015    8,370

RECONCILING ADJUSTMENTS
 Condensed income statement:
   Net interest
    income(2)           $    115 $    115 $    113 $    113 $    110
   Provision (reversal
    of reserve) for
    loan and lease
    losses(3)                 (3)     (13)     (23)      (8)       6
   Noninterest income
    (expense)(4)             (50)    (135)     (62)    (139)    (162)
   Noninterest (income)
    expense(5)              (212)    (210)    (208)    (212)    (212)
-----------------------  -------- -------- -------- -------- --------
   Income before income
    taxes                    280      203      282      194      154
   Income taxes(6)           112       71      112      121       61
-----------------------  -------- -------- -------- -------- --------
       Net income       $    168 $    132 $    170 $     73 $     93
=======================  ======== ======== ======== ======== ========
 Performance and other data:
   Average loans(7)     $ (1,550)$ (1,541)$ (1,556)$ (1,622)$ (1,600)
   Average assets(7)(8)   (1,700)  (1,744)  (1,782)  (1,866)  (1,822)

TOTAL CONSOLIDATED
 Condensed income statement:
   Net interest income  $  1,916 $  1,926 $  1,890 $  1,850 $  1,740
   Provision for loan
    and lease losses          52       31       16       37       56
   Noninterest income      1,374    1,267    1,408    1,217    1,264
   Noninterest expense     1,925    1,828    1,839    1,938    1,869
-----------------------  -------- -------- -------- -------- --------
   Income from
    continuing
    operations before
    income taxes           1,313    1,334    1,443    1,092    1,079
   Income taxes              492      490      541      424      405
-----------------------  -------- -------- -------- -------- --------
     Income from
      continuing
      operations             821      844      902      668      674
   Income from
    discontinued
    operations, net of
    taxes                      -        -        -        -        -
-----------------------  -------- -------- -------- -------- --------
       Net income       $    821 $    844 $    902 $    668 $    674
=======================  ======== ======== ======== ======== ========
 Performance and other data:
   Efficiency ratio(9)     58.52%   57.24%   55.77%   63.18%   62.19%
   Average loans        $262,763 $258,522 $245,627 $241,379 $227,379
   Average assets        327,292  320,845  308,172  297,158  283,669
   Average deposits      188,320  183,521  175,185  173,873  168,866
   Loan volume            70,732   67,618   59,515   63,221   61,825
   Employees at end of
    period                56,214   54,377   52,488   52,579   55,488



                                         Nine Months Ended
------------------------------------------------------------
(This table is                           Sept. 30, Sept. 30,
 continued from "WM-5".)                   2005      2004
-----------------------                  ---------  --------
CORPORATE SUPPORT/TREASURY AND OTHER
 Condensed income statement:
   Net interest expense                 $    (623) $   (660)
   Provision for loan
    and lease losses                            1         2
   Noninterest income
    (expense)                                (147)     (161)
   Noninterest expense                        446       541
-----------------------                  ---------  --------
   Loss from continuing
    operations before
    income taxes                           (1,217)   (1,364)
   Income tax benefit                        (488)     (532)
-----------------------                  ---------  --------
     Loss from
      continuing
      operations                             (729)     (832)
   Income from
    discontinued
    operations, net of
    taxes                                       -       399
-----------------------                  ---------  --------
       Net loss                         $    (729) $   (433)
=======================                  =========  ========
 Performance and other data:
   Average loans                        $   1,066  $    864
   Average assets                          26,756    27,365
   Average deposits                        24,590     9,457
   Loan volume                                181       156
   Employees at end of
    period                                  9,303     8,370

RECONCILING ADJUSTMENTS
 Condensed income statement:
   Net interest
    income(2)                           $     343  $    319
   Provision (reversal
    of reserve) for
    loan and lease
    losses(3)                                 (39)       (5)
   Noninterest income
    (expense)(4)                             (248)     (469)
   Noninterest (income)
    expense(5)                               (630)     (632)
-----------------------                  ---------  --------
   Income before income
    taxes                                     764       487
   Income taxes(6)                            296       187
-----------------------                  ---------  --------
       Net income                       $     468  $    300
=======================                  =========  ========
 Performance and other data:
   Average loans(7)                     $  (1,549) $ (1,553)
   Average assets(7)(8)                    (1,742)   (1,745)

TOTAL CONSOLIDATED
 Condensed income statement:
   Net interest income                  $   5,732  $  5,266
   Provision for loan
    and lease losses                           99       172
   Noninterest income                       4,048     3,395
   Noninterest expense                      5,591     5,597
-----------------------                  ---------  --------
   Income from
    continuing
    operations before
    income taxes                            4,090     2,892
   Income taxes                             1,523     1,081
-----------------------                  ---------  --------
     Income from
      continuing
      operations                            2,567     1,811
   Income from
    discontinued
    operations, net of
    taxes                                       -       399
-----------------------                  ---------  --------
       Net income                       $   2,567  $  2,210
=======================                  =========  ========
 Performance and other data:
   Efficiency ratio(9)                      57.17%    64.63%
   Average loans                        $ 255,700  $218,371
   Average assets                         318,840   279,686
   Average deposits                       182,390   162,564
   Loan volume                            197,865   203,511
   Employees at end of
    period                                 56,214    55,488

(2) Represents the difference between home loan premium amortization
    recorded by the Retail Banking and Financial Services Group 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 Group are
    treated as if they are purchased from the Home Loans Group. Since
    the cost basis of these loans includes an assumed profit factor
    paid to the Home Loans Group, the amortization of loan premiums
    recorded by the Retail Banking and Financial Services Group
    includes this assumed profit factor and must therefore be
    eliminated as a reconciling adjustment.

(3) 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.

(4) Represents the difference between gain from mortgage loans
    recorded by the Home Loans Group and the gain from mortgage loans
    recognized in the Company's Consolidated Statements of Income. As
    the Home Loans Group holds no loans in portfolio, all loans
    originated or purchased by this segment are considered to be
    salable for management reporting purposes.

(5) Represents the corporate offset for the cost of capital related to
    goodwill that has been allocated to the segments.

(6) Represents the tax effect of reconciling adjustments.

(7) Includes the inter-segment offset for inter-segment loan premiums
    that the Retail Banking and Financial Services Group recognized
    from the transfer of portfolio loans from the Home Loans Group.

(8) Includes the impact to the allowance for the loan and lease losses
    per the following table 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.

  ----------------------------------------------  -------------------
                  Quarter Ended                    Nine Months Ended
  ----------------------------------------------  -------------------
  Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,  Sept. 30, Sept. 30,
    2005     2005     2005     2004      2004       2005      2004
  ----------------------------------------------  -------------------
   $(150)    $(203)   $(226)   $(244)   $(222)     $(193)    $(192)
  ----------------------------------------------  -------------------

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


WM-7

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

                                      Quarter Ended
----------------------------------------------------------------------
                    Sept. 30,  June 30,  Mar. 31,  Dec. 31, Sept. 30,
                        2005      2005      2005      2004      2004
-------------------- --------- --------- --------- --------- ---------
PROFITABILITY
 Net interest income $ 1,916  $  1,926  $  1,890  $  1,850  $  1,740
 Net interest margin    2.61 %    2.66 %    2.73 %    2.79 %    2.77 %
 Noninterest income  $ 1,374  $  1,267  $  1,408  $  1,217  $  1,264
 Noninterest expense   1,925     1,828     1,839     1,938     1,869
 Basic earnings per
  common share       $  0.95  $   0.98  $   1.04  $   0.77  $   0.78
 Diluted earnings
  per common share      0.92      0.95      1.01      0.76      0.76
 Dividends declared
  per common share      0.48      0.47      0.46      0.45      0.44
 Return on average
  assets                1.00 %    1.05 %    1.17 %    0.90 %    0.95 %
 Return on average
  common equity        14.66     15.33     16.63     12.71     13.03
 Efficiency ratio(1)   58.52     57.24     55.77     63.18     62.19

ASSET QUALITY
 Nonaccrual
  loans(2)(3)        $ 1,465  $  1,463  $  1,569  $  1,534  $  1,471
 Foreclosed
  assets(3)              256       256       264       261       281
 Total nonperforming
  assets(2)(3)         1,721     1,719     1,833     1,795     1,752
 Nonperforming
  assets/total
  assets(2)(3)          0.52 %    0.53 %    0.57 %    0.58 %    0.61 %
 Restructured
  loans(3)           $    25  $     25  $     27  $     34  $     38
 Total nonperforming
  assets and
  restructured
  loans(2)(3)          1,746     1,744     1,860     1,829     1,790
 Allowance for loan
  and lease
  losses(3)            1,264     1,243     1,280     1,301     1,322
 Allowance as a
  percentage of
  total loans held
  in portfolio(3)       0.58 %    0.58 %    0.60 %    0.63 %    0.64 %
 Provision for loan
  and lease losses   $    52  $     31  $     16  $     37  $     56
 Net charge-offs          31        39        37        38        27

CAPITAL ADEQUACY(3)
 Capital Ratios at
  WMI-consolidated
  level:
   Stockholders'
    equity/total
    assets              6.77 %    6.91 %    6.81 %    6.89 %    7.21 %
   Tangible common
    equity(4)/total
    tangible
    assets(4)           5.09      5.13      5.03      5.05      5.26
   Estimated total
    risk-based
    capital/total
    risk-weighted
    assets(5)          10.77     11.10     11.21     11.34     10.64
 Capital Ratios at WMB-bank only level
  (well-capitalized minimum)(6):
   Tier 1 capital to
    adjusted total
    assets (5.00%)      5.85      5.74      5.69      5.46      5.85
   Adjusted tier 1
    capital to total
    risk-weighted
    assets (6.00%)      8.50      8.38      8.40      8.12      8.24
   Total risk-based
    capital to total
    risk-weighted
    assets (10.00%)    11.49     11.51     11.68     11.68     10.94

SUPPLEMENTAL DATA
 Average balance
  sheet:
   Total loans held
    for sale         $49,747  $ 44,884  $ 38,307  $ 33,083  $ 28,220
   Total loans held
    in portfolio     213,016   213,638   207,320   208,296   199,159
   Total interest-
    earning assets   296,568   290,876   277,080   266,375   252,235
   Total assets      327,292   320,845   308,172   297,158   283,669
   Total interest-
    bearing deposits 151,587   149,144   142,639   139,938   135,600
   Total
    noninterest-
    bearing deposits  36,733    34,377    32,546    33,935    33,266
   Total
    stockholders'
    equity            22,412    22,014    21,680    21,025    20,703
 Period-end balance
  sheet:
   Loans held for
    sale              48,018    51,122    41,197    42,743    29,184
   Loans held in
    portfolio, net
    of allowance for
    loan and lease
    losses           216,930   211,494   212,834   205,770   204,836
   Interest-earning
    assets           301,749   293,613   287,205   278,762   258,855
   Total assets      333,622   323,533   319,696   307,918   288,828
   Interest-bearing
    deposits         153,562   148,799   148,690   140,878   136,445
   Noninterest-
    bearing deposits  36,850    35,518    34,941    32,780    32,250
   Total
    stockholders'
    equity            22,596    22,350    21,767    21,226    20,820

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

(2) Excludes nonaccrual loans held for sale.

(3) As of quarter end.

(4) Excludes unrealized net gain/loss on available-for-sale securities
    and derivatives, goodwill and intangible assets, but includes MSR.

(5) 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.

(6) Capital ratios for Washington Mutual Bank ("WMB") at September 30,
    2005 are preliminary.



WM-8

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



                                   Quarter Ended
-------------------------------------------------------
                                 Sept. 30, 2005
                            ------------------------
                                             Interest
                                             Income/
                             Balance   Rate  Expense
-------------------------------------------------------
Average Balances and
 Weighted Average Interest
 Rates
Assets
Interest-earning assets:
   Federal funds sold and
    securities purchased
    under agreements to
    resell                  $  2,891   3.52% $   26
   Trading securities          6,532   6.97     114
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities             15,666   4.72     185
      Investment securities    4,321   4.94      53
   Loans held for sale(2)     49,747   5.30     661
   Loans held in
    portfolio(2):
      Loans secured by real
       estate:
         Home                108,783   4.97   1,353
         Specialty mortgage
          finance(3)          20,298   5.07     257
---------------------------- --------         ------
                Total home
                 loans       129,081   4.99   1,610
         Home equity loans
          and lines of
          credit              49,237   6.08     753
         Home
          construction(4)      2,001   6.31      32
         Multi-family         24,550   5.38     330
         Other real estate     4,904   7.12      88
---------------------------- --------         ------
                Total loans
                 secured by
                 real estate 209,773   5.35   2,813
      Consumer                   686  10.67      18
      Commercial business      2,557   4.74      31
---------------------------- --------         ------
                Total loans
                 held in
                 portfolio   213,016   5.36   2,862
  Other                        4,395   3.51      39
---------------------------- --------         ------
                Total
                 interest-
                 earning
                 assets      296,568   5.30   3,940
Noninterest-earning assets:
   Mortgage servicing rights   6,408
   Goodwill                    6,196
   Other assets               18,120
---------------------------- --------
         Total assets       $327,292
============================ ========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits    $ 45,305   2.12     242
      Savings and money
       market deposits        42,944   1.92     208
      Time deposits           63,338   3.41     546
---------------------------- --------         ------
                Total
                 interest-
                 bearing
                 deposits    151,587   2.60     996
   Federal funds purchased
    and commercial paper       6,719   3.60      61
   Securities sold under
    agreements to repurchase  13,159   3.65     123
   Advances from Federal
    Home Loan Banks           68,597   3.54     620
   Other                      21,734   4.12     224
---------------------------- --------         ------
                Total
                 interest-
                 bearing
                 liabilities 261,796   3.05   2,024
Noninterest-bearing sources:
   Noninterest-bearing
    deposits                  36,733
   Other liabilities           6,351
   Stockholders' equity       22,412
---------------------------- --------
         Total liabilities
          and stockholders'
          equity            $327,292
============================ ========
   Net interest spread and
    net interest income                2.25  $1,916
                                              ======
   Impact of noninterest-
    bearing sources                    0.36
   Net interest margin                 2.61


                                 Quarter Ended
-----------------------------------------------------
                                 June 30, 2005
                            ------------------------
                                             Interest
                                             Income/
                             Balance   Rate  Expense
-----------------------------------------------------
Average Balances and
 Weighted Average Interest
 Rates
Assets
Interest-earning assets:
   Federal funds sold and
    securities purchased
    under agreements to
    resell                  $  1,972   2.96% $   15
   Trading securities          6,252   5.85      91
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities             15,065   4.67     176
      Investment securities    4,764   4.84      58
   Loans held for sale(2)     44,884   5.13     576
   Loans held in
    portfolio(2):
      Loans secured by real
       estate:
         Home                111,272   4.80   1,336
         Specialty mortgage
          finance(3)          20,913   5.20     272
---------------------------- --------         ------
                Total home
                 loans       132,185   4.87   1,608
         Home equity loans
          and lines of
          credit              47,200   5.71     672
         Home
          construction(4)      2,047   6.43      33
         Multi-family         23,715   5.17     307
         Other real estate     5,092   6.50      83
---------------------------- --------         ------
                Total loans
                 secured by
                 real estate 210,239   5.14   2,703
      Consumer                   722  10.75      19
      Commercial business      2,677   4.69      32
---------------------------- --------         ------
                Total loans
                 held in
                 portfolio   213,638   5.16   2,754
  Other                        4,301   3.45      36
---------------------------- --------         ------
                Total
                 interest-
                 earning
                 assets      290,876   5.10   3,706
Noninterest-earning assets:
   Mortgage servicing rights   6,195
   Goodwill                    6,196
   Other assets               17,578
---------------------------- --------
         Total assets       $320,845
============================ ========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits    $ 47,654   1.86     221
      Savings and money
       market deposits        41,424   1.60     165
      Time deposits           60,066   3.10     466
---------------------------- --------         ------
                Total
                 interest-
                 bearing
                 deposits    149,144   2.28     852
   Federal funds purchased
    and commercial paper       2,749   3.09      21
   Securities sold under
    agreements to repurchase  16,390   3.13     130
   Advances from Federal
    Home Loan Banks           69,512   3.21     563
   Other                      21,491   4.00     214
---------------------------- --------         ------
                Total
                 interest-
                 bearing
                 liabilities 259,286   2.74   1,780
Noninterest-bearing sources:
   Noninterest-bearing
    deposits                  34,377
   Other liabilities           5,168
   Stockholders' equity       22,014
---------------------------- --------
         Total liabilities
          and stockholders'
          equity            $320,845
============================ ========
   Net interest spread and
    net interest income                2.36  $1,926
                                              ======
   Impact of noninterest-
    bearing sources                    0.30
   Net interest margin                 2.66




                                  Quarter Ended
                            -------------------------
                                 Sept. 30, 2004
                            -------------------------
                                             Interest
                                             Income/
                             Balance   Rate  Expense
                            -------------------------
Average Balances and
 Weighted Average Interest
 Rates
Assets
Interest-earning assets:
   Federal funds sold and
    securities purchased
    under agreements to
    resell                  $    922   1.44%  $    3
   Trading securities          2,396   6.61       40
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities              9,726   3.85       94
      Investment securities    7,597   3.62       69
   Loans held for sale(2)     28,220   4.83      341
   Loans held in
    portfolio(2):
      Loans secured by real
       estate:
         Home                108,594   4.19    1,137
         Specialty mortgage
          finance(3)          16,279   4.57      186
---------------------------- --------          ------
                Total home
                 loans       124,873   4.24    1,323
         Home equity loans
          and lines of
          credit              38,329   4.55      438
         Home
          construction(4)      2,693   5.41       36
         Multi-family         21,240   4.90      260
         Other real estate     6,364   5.78       93
---------------------------- --------          ------
                Total loans
                 secured by
                 real estate 193,499   4.44    2,150
      Consumer                   860  10.17       22
      Commercial business      4,800   4.43       54
---------------------------- --------          ------
                Total loans
                 held in
                 portfolio   199,159   4.46    2,226
  Other                        4,215   3.62       38
---------------------------- --------          ------
                Total
                 interest-
                 earning
                 assets      252,235   4.45    2,811
Noninterest-earning assets:
   Mortgage servicing rights   6,698
   Goodwill                    6,196
   Other assets               18,540
---------------------------- --------
         Total assets       $283,669
============================ ========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits    $ 54,377   1.25      172
      Savings and money
       market deposits        43,278   1.27      138
      Time deposits           37,945   2.40      229
---------------------------- --------          ------
                Total
                 interest-
                 bearing
                 deposits    135,600   1.58      539
   Federal funds purchased
    and commercial paper       2,733   1.54       10
   Securities sold under
    agreements to repurchase  14,213   2.75      100
   Advances from Federal
    Home Loan Banks           59,227   2.02      306
   Other                      12,922   3.62      116
---------------------------- --------          ------
                Total
                 interest-
                 bearing
                 liabilities 224,695   1.89    1,071
Noninterest-bearing sources:
   Noninterest-bearing
    deposits                  33,266
   Other liabilities           5,005
   Stockholders' equity       20,703
---------------------------- --------
         Total liabilities
          and stockholders'
          equity            $283,669
============================ ========
   Net interest spread and
    net interest income                2.56   $1,740
                                               ======
   Impact of noninterest-
    bearing sources                    0.21
   Net interest margin                 2.77
----------------------

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

(2) Nonaccrual loans and related income, if any, are included in their
    respective loan categories.

(3) Represents purchased subprime loan portfolios and certain
    mortgages originated by Long Beach Mortgage Company.

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




WM-9

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

                                 Nine Months Ended
--------------------------------------------------------
                                   Sept. 30, 2005
                            ----------------------------
                                              Interest
                                               Income/
                             Balance   Rate    Expense
--------------------------------------------------------
Average Balances and
 Weighted Average Interest
 Rates
Assets
Interest-earning assets:
   Federal funds sold and
    securities purchased
    under agreements to
    resell                  $  2,078   3.13% $    50
   Trading securities          6,169   6.15      284
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities             15,407   4.61      533
      Investment securities    4,569   4.74      162
   Loans held for sale(2)     44,354   5.13    1,708
   Loans held in
    portfolio(2):
      Loans secured by real
       estate:
         Home                110,057   4.79    3,952
         Specialty mortgage
          finance(3)          19,928   5.11      763
---------------------------- --------         -------
                Total home
                 loans       129,985   4.84    4,715
         Home equity loans
          and lines of
          credit              47,056   5.73    2,019
         Home
          construction(4)      2,096   6.16       97
         Multi-family         23,651   5.19      920
         Other real estate     5,138   6.53      252
---------------------------- --------         -------
                Total loans
                 secured by
                 real estate 207,926   5.13    8,003
      Consumer                   726  10.64       58
      Commercial business      2,694   4.88       99
---------------------------- --------         -------
                Total loans
                 held in
                 portfolio   211,346   5.15    8,160
  Other                        4,323   3.39      110
---------------------------- --------         -------
                Total
                 interest-
                 earning
                 assets      288,246   5.09   11,007
Noninterest-earning assets:
   Mortgage servicing rights   6,232
   Goodwill                    6,196
   Other assets               18,166
---------------------------- --------
         Total assets       $318,840
============================ ========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits    $ 47,609   1.86      663
      Savings and money
       market deposits        42,125   1.65      520
      Time deposits           58,089   3.12    1,361
---------------------------- --------         -------
                Total
                 interest-
                 bearing
                 deposits    147,823   2.29    2,544
   Federal funds purchased
    and commercial paper       4,330   3.19      104
   Securities sold under
    agreements to repurchase  15,377   3.11      363
   Advances from Federal
    Home Loan Banks           68,241   3.20    1,652
   Other                      20,554   3.98      612
---------------------------- --------         -------
                Total
                 interest-
                 bearing
                 liabilities 256,325   2.73    5,275
Noninterest-bearing sources:
   Noninterest-bearing
    deposits                  34,567
   Other liabilities           5,910
   Stockholders' equity       22,038
---------------------------- --------
         Total liabilities
          and stockholders'
          equity            $318,840
============================ ========
   Net interest spread and
    net interest income                2.36  $ 5,732
                                              =======
   Impact of noninterest-
    bearing sources                    0.30
   Net interest margin                 2.66


                                    Nine Months Ended
--------------------------------------------------------------
                                      Sept. 30, 2004
                            ----------------------------------
                                                     Interest
                                                      Income/
                               Balance       Rate     Expense
--------------------------------------------------------------
Average Balances and
 Weighted Average Interest
 Rates
Assets
Interest-earning assets:
   Federal funds sold and
    securities purchased
    under agreements to
    resell                     $     993      1.30%    $   10
   Trading securities              1,638      6.95         85
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities                  9,870      4.04        299
      Investment securities       12,862      3.19        308
   Loans held for sale(2)         28,592      5.03      1,079
   Loans held in
    portfolio(2):
      Loans secured by real
       estate:
         Home                    105,559      4.18      3,311
         Specialty mortgage
          finance(3)              15,223      4.83        552
----------------------------    ---------               ------
                Total home
                 loans           120,782      4.26      3,863
         Home equity loans
          and lines of
          credit                  33,786      4.59      1,162
         Home
          construction(4)          2,507      5.34        101
         Multi-family             20,810      4.98        777
         Other real estate         6,484      5.87        287
----------------------------    ---------               ------
                Total loans
                 secured by
                 real estate     184,369      4.48      6,190
      Consumer                       928     10.08         70
      Commercial business          4,482      4.24        144
----------------------------    ---------               ------
                Total loans
                 held in
                 portfolio       189,779      4.50      6,404
  Other                            4,108      3.20         99
----------------------------    ---------               ------
                Total
                 interest-
                 earning
                 assets          247,842      4.46      8,284
Noninterest-earning assets:
   Mortgage servicing rights       6,566
   Goodwill                        6,196
   Other assets                   19,082
----------------------------    ---------
         Total assets          $ 279,686
============================    =========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits       $  62,396      1.27        593
      Savings and money
       market deposits            33,211      1.00        249
      Time deposits               33,286      2.39        598
----------------------------    ---------               ------
                Total
                 interest-
                 bearing
                 deposits        128,893      1.49      1,440
   Federal funds purchased
    and commercial paper           3,084      1.21         28
   Securities sold under
    agreements to repurchase      17,711      2.26        304
   Advances from Federal
    Home Loan Banks               57,135      2.05        892
   Other                          13,241      3.58        354
----------------------------    ---------               ------
                Total
                 interest-
                 bearing
                 liabilities     220,064      1.82      3,018
Noninterest-bearing sources:
   Noninterest-bearing
    deposits                      33,671
   Other liabilities               5,590
   Stockholders' equity           20,361
----------------------------    ---------
         Total liabilities
          and stockholders'
          equity               $ 279,686
============================    =========
   Net interest spread and
    net interest income                       2.64     $5,266
                                                        ======
   Impact of noninterest-
    bearing sources                           0.20
   Net interest margin                        2.84
----------------------

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

(2) Nonaccrual loans and related income, if any, are included in their
    respective loan categories.

(3) Represents purchased subprime loan portfolios and certain
    mortgages originated by Long Beach Mortgage Company.

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


WM-10

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


              Change
              from
              June 30,
              2005
              to
              Sept. 30, Sept. 30, June 30,  Mar. 31,  Dec. 31,
              2005        2005      2005      2005      2004
---------------------- --------- --------- --------- ---------
Deposits
 Retail
  deposits:
  Checking
   deposits:
   Noninterest
    bearing    $1,529  $ 20,622  $ 19,093  $ 18,599  $ 17,463
   Interest
    bearing    (1,737)   44,294    46,031    48,988    51,099
-------------- -------- --------- --------- --------- --------
     Total
      checking
      deposits   (208)   64,916    65,124    67,587    68,562
  Savings and
   money
   market
   deposits     1,065    35,579    34,514    35,184    36,836
  Time
   deposits(1)  4,314    40,476    36,162    31,819    27,268
-------------- -------- --------- --------- --------- --------
     Total
      retail
      deposits  5,171   140,971   135,800   134,590   132,666
  Commercial
   business
   deposits       110     9,758     9,648     8,447     7,611
  Wholesale
   deposits       896    24,534    23,638    24,969    18,448
  Custodial
   and escrow
   deposits(2)    (82)   15,149    15,231    15,625    14,933
-------------- -------- --------- --------- --------- --------
     Total
      deposits $6,095  $190,412  $184,317  $183,631  $173,658
============== ======== ========= ========= ========= ========




               Sept. 30,
                   2004
--------------- --------
Deposits
 Retail
  deposits:
  Checking
   deposits:
   Noninterest
    bearing    $ 16,178
   Interest
    bearing      52,378
--------------- --------
     Total
      checking
      deposits   68,556
  Savings and
   money
   market
   deposits      38,620
  Time
   deposits(1)   24,825
--------------- --------
     Total
      retail
      deposits  132,001
  Commercial
   business
   deposits       7,369
  Wholesale
   deposits      14,052
  Custodial
   and escrow
   deposits(2)   15,273
--------------- --------
     Total
      deposits $168,695
=============== ========

(1) Weighted average remaining maturity of time deposits was 12 months
    at September 30, 2005, 13 months at June 30, 2005, 14 months at
    March 31, 2005, and 16 months at December 31, 2004, and September
    30, 2004.

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

                     Sept. 30,    June 30,     Mar. 31,     Dec. 31,
                        2005         2005         2005         2004
----------------- ------------ ------------ ------------ -------------
Retail
 Deposit
 Accounts(1)
  Checking         9,680,317    9,427,222    9,183,194    8,981,060
  Money
   market
   and
   savings         5,560,060    5,395,091    5,250,907    5,110,674
----------------- ------------ ------------ ------------ -------------
     Total
      transaction
      accounts(2) 15,240,377   14,822,313   14,434,101   14,091,734
  Time
   deposits        1,486,582    1,416,689    1,300,580    1,208,870
----------------- ------------ ------------ ------------ -------------
     Total
      accounts,
      end of
      period      16,726,959   16,239,002   15,734,681   15,300,604
================= ============ ============ ============ =============

  Net transaction
   account
   changes           418,064      388,212      342,367      186,027
  Net total
   account
   changes           487,957      504,321      434,077      223,770




                   Sept. 30,
                     2004
----------------  -----------
Retail
 Deposit
 Accounts(1)
  Checking         8,874,823
  Money
   market
   and
   savings         5,030,884
----------------  -----------
     Total
      transaction
      accounts(2) 13,905,707
  Time
   deposits        1,171,127
----------------  -----------
     Total
      accounts,
      end of
      period      15,076,834
================= ===========

  Net transaction
   account
   changes           325,746
  Net total
   account
   changes           331,871

(1) The information provided in this table represents the number of
    accounts.

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

                      Sept. 30, June 30,  Mar. 31,  Dec. 31, Sept. 30,
                         2005     2005      2005      2004     2004
--------------------- --------- -------   -------   -------- ---------
Retail Banking Stores
Stores, beginning of
 period                  1,997    1,968     1,939     1,872    1,816
   Net stores opened
    during the quarter      54       29        29        67       56
--------------------- --------- -------   -------   -------- ---------
Stores, end of period    2,051    1,997     1,968     1,939    1,872
===================== ========= =======   =======   ======== =========




                      Sept. 30, June 30,  Mar. 31,  Dec. 31, Sept. 30,
                         2005     2005      2005      2004     2004
--------------------- --------- -------   --------  -------- ---------
Assets Under
 Management            $24,546  $23,348   $22,454   $22,196  $20,617
===================== ========= =======   ========  ======== =========


WM-11

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

                                        Quarter Ended
                         ---------------------------------------------
                         Sept. 30, June 30, Mar. 31, Dec. 31,Sept. 30,
                            2005     2005     2005     2004      2004
                          -------- -------- -------- -------- --------
Loan Volume
 Home loans:
    Adjustable rate      $26,607  $25,293  $22,947  $26,141  $ 25,589
    Fixed rate            21,122   19,355   17,147   15,448    14,635
    Specialty mortgage
     finance(1)            8,413    8,753    7,656    9,362     7,536
------------------------  -------- -------- -------- -------- --------
       Total home loan
        volume            56,142   53,401   47,750   50,951    47,760
 Home equity loans and
  lines of credit         10,828   10,888    8,887    9,307    10,527
 Home construction
  loans(2)                   370      258      245      293       640
 Multi-family              2,580    2,459    2,121    2,240     2,050
 Other real estate           465      371      345      257       352
------------------------  -------- -------- -------- -------- --------
       Total loans
        secured by real
        estate            70,385   67,377   59,348   63,048    61,329
 Consumer                    182       82       43       77       138
 Commercial business         165      159      124       96       358
------------------------  -------- -------- -------- -------- --------
       Total loan volume $70,732  $67,618  $59,515  $63,221  $ 61,825
========================  ======== ======== ======== ======== ========
Loan Volume by Channel
 Retail                  $32,614  $30,565  $25,569  $28,766  $ 30,285
 Wholesale                20,000   20,323   16,716   18,441    16,079
 Purchased/
  correspondent           18,118   16,730   17,230   16,014    15,461
------------------------  -------- -------- -------- -------- --------
       Total loan volume
        by channel       $70,732  $67,618  $59,515  $63,221  $ 61,825
========================  ======== ======== ======== ======== ========
Refinancing Activity(3)
 Home loan refinancing   $29,084  $27,583  $28,641  $30,752  $ 23,834
 Home equity loans and
  lines of credit and
  consumer                   245      475      392      336       360
 Home construction loans      17       13       10       13         9
 Multi-family and other
  real estate                738      700      660      565       621
------------------------  -------- -------- -------- -------- --------
       Total refinancing $30,084  $28,771  $29,703  $31,666  $ 24,824
========================  ======== ======== ======== ======== ========
Home Loan Volume
 Short-term adjustable-
  rate loans(4):
    Option ARMs          $16,353  $19,564  $15,644  $18,898  $ 18,902
    Other ARMs             1,237      367      974      972       171
------------------------  -------- -------- -------- -------- --------
       Total short-term
        adjustable-rate
        loans             17,590   19,931   16,618   19,870    19,073
 Medium-term adjustable-
  rate loans(5)           16,454   13,388   13,409   14,890    12,866
 Fixed-rate loans         22,098   20,082   17,723   16,191    15,821
------------------------  -------- -------- -------- -------- --------
       Total home loan
        volume           $56,142  $53,401  $47,750  $50,951  $ 47,760
========================  ======== ======== ======== ======== ========



Note:  Pursuant to regulatory guidance, 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 $466 million, $477 million, $563 million, $785
 million and $898 million for the quarters ended September 30, 2005,
 June 30, 2005, March 31, 2005, December 31, 2004, and September 30,
 2004.


(1) Represents purchased subprime loan portfolios and mortgages
    originated by Long Beach Mortgage Company.

(2) 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.

(3) Includes loan refinancing entered into by both new and pre-
    existing loan customers.

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

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


WM-12


                        Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)
                                                    Nine Months Ended
                                                   -------------------
                                                   Sept. 30, Sept. 30,
                                                      2005     2004
                                                   ---------- --------
Loan Volume
 Home loans:
    Adjustable rate                                $ 74,848  $ 77,164
    Fixed rate                                       57,624    62,275
    Specialty mortgage finance(1)                    24,821    21,972
--------------------------------------------------- --------- --------
       Total home loan volume                       157,293   161,411
 Home equity loans and lines of credit               30,603    30,515
 Home construction loans(2)                             873     2,088
 Multi-family                                         7,160     5,921
 Other real estate                                    1,180     1,482
--------------------------------------------------- --------- --------
       Total loans secured by real estate           197,109   201,417
 Consumer                                               308       259
 Commercial business                                    448     1,835
--------------------------------------------------- --------- --------
       Total loan volume                           $197,865  $203,511
=================================================== ========= ========
Loan Volume by Channel
 Retail                                            $ 88,749  $ 96,131
 Wholesale                                           57,039    51,032
 Purchased/correspondent                             52,077    56,348
--------------------------------------------------- --------- --------
       Total loan volume by channel                $197,865  $203,511
=================================================== ========= ========
Refinancing Activity(3)
 Home loan refinancing                             $ 85,307  $ 97,268
 Home equity loans and lines of credit and consumer   1,112     2,614
 Home construction loans                                 41        34
 Multi-family and other real estate                   2,097     2,079
--------------------------------------------------- --------- --------
       Total refinancing                           $ 88,557  $101,995
=================================================== ========= ========
Home Loan Volume
 Short-term adjustable-rate loans(4):
    Option ARMs                                    $ 51,561  $ 48,587
    Other ARMs                                        2,578     1,700
--------------------------------------------------- --------- --------
       Total short-term adjustable-rate loans        54,139    50,287
 Medium-term adjustable-rate loans(5)                43,250    43,216
 Fixed-rate loans                                    59,904    67,908
--------------------------------------------------- --------- --------
       Total home loan volume                      $157,293  $161,411
=================================================== ========= ========

Note:  Pursuant to regulatory guidance, 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 $1.51 billion and $2.64 billion for the nine months
 ended September 30, 2005 and September 30, 2004.

(1)  Represents purchased subprime loan portfolios and mortgages
     originated by Long Beach Mortgage Company.

(2)  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.

(3)  Includes loan refinancing entered into by both new and
     pre-existing loan customers.

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

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



WM-13

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

                                     Change
                                      from
                                    June 30,
                                      2005
                                     to Sept.   Sept. 30,    June 30,
                                    30, 2005      2005         2005
                                   -----------------------------------
Loans by Property Type
 Loans held in portfolio:
  Loans secured by real
   estate:
    Home:
     Short-term adjustable-rate
      loans(1):
      Option ARMs                    $ 1,330  $ 67,863 (2)$   66,533
      Other ARMs                       2,053    12,956        10,903
-----------------------------------   -------- ----------- -----------
       Total short-term
        adjustable-rate loans          3,383    80,819        77,436
     Medium-term adjustable-rate
      loans(3)                           111    43,610        43,499
     Fixed-rate loans                    (22)    8,616         8,638
-----------------------------------   -------- ----------- -----------
       Total home
        loans(4)                       3,472   133,045       129,573
    Home equity loans and
     lines of credit                   1,617    50,066        48,449
    Home construction(5)                 (18)    2,019         2,037
    Multi-family                         774    25,014        24,240
    Other real estate                     14     4,929         4,915
-----------------------------------   -------- ----------- -----------
       Total loans
        secured by real estate         5,859   215,073       209,214
  Consumer                               (34)      669           703
  Commercial business                   (368)    2,452         2,820
-----------------------------------   -------- ----------- -----------
       Total loans held
        in portfolio                   5,457   218,194       212,737
 Less: allowance for loan and
  lease losses                           (21)   (1,264)       (1,243)
-----------------------------------   -------- ----------- -----------
       Total net loans
        held in portfolio              5,436   216,930       211,494
 Loans held for sale(6)               (3,104)   48,018        51,122
-----------------------------------   -------- ----------- -----------
       Total net loans               $ 2,332  $264,948    $  262,616
===================================   ======== =========== ===========




                                     Mar. 31,   Dec. 31,    Sept. 30,
                                       2005       2004         2004
---------------------------------   ---------- ----------- -----------
Loans by Property Type
 Loans held in portfolio:
  Loans secured by real
   estate:
    Home:
     Short-term adjustable-rate
      loans(1):
       Option ARMs                 $  67,938  $   66,310  $    66,530
       Other ARMs                     10,462       9,065        8,812
---------------------------------   ---------- ----------- -----------
       Total short-term
        adjustable-rate loans         78,400      75,375       75,342
     Medium-term adjustable-rate
      loans(3)                        46,789      45,197       45,060
     Fixed-rate loans                  8,794       8,562        9,133
---------------------------------   ---------- ----------- -----------
       Total home
        loans(4)                     133,983     129,134      129,535
    Home equity loans and
     lines of credit                  45,849      43,650       40,505
    Home construction(5)               2,170       2,344        2,732
    Multi-family                      23,247      22,282       21,640
    Other real estate                  5,311       5,664        6,268
---------------------------------   ---------- ----------- -----------
       Total loans
        secured by real estate       210,560     203,074      200,680
  Consumer                               747         792          831
  Commercial business                  2,807       3,205        4,647
---------------------------------   ---------- ----------- -----------
       Total loans held
        in portfolio                 214,114     207,071      206,158
 Less: allowance for loan and
  lease losses                        (1,280)     (1,301)      (1,322)
---------------------------------   ---------- ----------- -----------
       Total net loans
        held in portfolio            212,834     205,770      204,836
 Loans held for sale(6)               41,197      42,743       29,184
---------------------------------   ---------- ----------- -----------
       Total net loans             $ 254,031  $  248,513  $   234,020
=================================   ========== =========== ===========

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

(2) At September 30, 2005, the total amount by which the unpaid
    principal balance ("UPB") of Option ARM loans exceeded their
    original principal amount was $76 million.

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

(4) Includes specialty mortgage finance loans, which are composed of
    purchased subprime loans and certain mortgages
    originated by Long Beach Mortgage Company.  Specialty mortgage
    finance loans were $21.16 billion, $20.17 billion, $21.54 billion,
    $19.18 billion and $17.34 billion at September 30, 2005, June 30,
    2005, March 31, 2005, December 31, 2004, and September 30, 2004.

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

(6) Fair value of loans held for sale was $48.14 billion, $51.39
    billion, $41.38 billion, $43.02 billion and $29.32 billion as of
    September 30, 2005, June 30, 2005, March 31, 2005, December 31,
    2004, and September 30, 2004.



WM-14

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


                   Change
                   from
                   June 30,
                   2005               Weighted          Weighted
                   to                  Average           Average
                   Sept. 30, Sept. 30, Coupon  June 30,  Coupon
                   2005        2005     Rate     2005     Rate
---------------------------  ---------------- ----------------
Selected Loans
 Secured by Real
 Estate and MBS
  Home loans held
   in portfolio:
   Short-term
    adjustable-rate
    loans(1):
     Option ARMs   $ 1,330  $ 67,863    5.44% $ 66,533    5.06%
     Other ARMs      2,053    12,956    6.27    10,903    6.37
------------------- -------  ---------------- ----------------
       Total short-
        term
        adjustable-
        rate loans   3,383    80,819    5.57    77,436    5.24
   Medium-term
    adjustable-rate
    loans(2)           111    43,610    5.58    43,499    5.53
   Fixed-rate loans    (22)    8,616    6.60     8,638    6.60
------------------- -------  ---------------- ----------------
       Total home
        loans held
        in
        portfolio    3,472   133,045    5.64   129,573    5.43
  Home equity loans
   and lines of
   credit:
   Short-term
    (Prime based or
    treasury
    based)(1)          513    37,328    6.76    36,815    6.16
   Fixed-rate loans  1,104    12,738    6.45    11,634    6.37
------------------- -------  ---------------- ----------------
       Total home
        equity
        loans and
        lines of
        credit       1,617    50,066    6.68    48,449    6.21
  Multi-family
   loans held in
   portfolio:
   Short-term
    adjustable-rate
    loans(1):
     Option ARMs       470     9,449    5.30     8,979    4.98
     Other ARMs        139     6,451    5.49     6,312    5.13
------------------- -------  ---------------- ----------------
       Total short-
        term
        adjustable-
        rate loans     609    15,900    5.38    15,291    5.04
   Medium-term
    adjustable-rate
    loans(2)           160     7,525    5.26     7,365    5.26
   Fixed-rate loans      5     1,589    6.68     1,584    6.75
------------------- -------  ---------------- ----------------
       Total multi-
        family
        loans held
        in
        portfolio      774    25,014    5.42    24,240    5.22
------------------- -------  ---------------- ----------------
       Total
        selected
        loans held
        in
        portfolio
        secured by
        real
        estate(3)    5,863   208,125    5.87   202,262    5.59
  Loans held for
   sale(4)          (3,098)   47,888    5.34    50,986    5.12
------------------- -------  ---------------- ----------------
       Total
        selected
        loans
        secured by
        real estate  2,765   256,013    5.77   253,248    5.50
  MBS(5):
   Short-term
    adjustable-rate
    MBS(1)             602    10,289    4.58     9,687    4.15
   Medium-term
    adjustable-rate
    MBS(2)           1,085     2,656    5.02     1,571    4.68
   Fixed-rate MBS    1,105     4,216    5.25     3,111    5.20
------------------- -------  ---------------- ----------------
       Total MBS(6)  2,792    17,161    4.81    14,369    4.44
------------------- -------  ---------------- ----------------
       Total
        selected
        loans
        secured by
        real estate
        and MBS    $ 5,557  $273,174    5.71  $267,617    5.44
=================== =======  ================ ================


                            Weighted
                             Average
                   Sept. 30, Coupon
                     2004     Rate
------------------- ----------------
Selected Loans
 Secured by Real
 Estate and MBS
  Home loans held
   in portfolio:
   Short-term
    adjustable-rate
    loans(1):
     Option ARMs   $ 66,530    3.96%
     Other ARMs       8,812    6.56
------------------- ----------------
       Total short-
        term
        adjustable-
        rate loans   75,342    4.26
   Medium-term
    adjustable-rate
    loans(2)         45,060    5.40
   Fixed-rate loans   9,133    6.80
------------------- ----------------
       Total home
        loans held
        in
        portfolio   129,535    4.84
  Home equity loans
   and lines of
   credit:
   Short-term
    (Prime based or
    treasury
    based)(1)        30,875    4.66
   Fixed-rate loans   9,630    6.35
------------------- ----------------
       Total home
        equity
        loans and
        lines of
        credit       40,505    5.06
  Multi-family
   loans held in
   portfolio:
   Short-term
    adjustable-rate
    loans(1):
     Option ARMs      7,131    4.12
     Other ARMs       5,356    4.24
------------------- ----------------
       Total short-
        term
        adjustable-
        rate loans   12,487    4.17
   Medium-term
    adjustable-rate
    loans(2)          7,365    5.33
   Fixed-rate loans   1,788    6.92
------------------- ----------------
       Total multi-
        family
        loans held
        in
        portfolio    21,640    4.79
------------------- ----------------
       Total
        selected
        loans held
        in
        portfolio
        secured by
        real
        estate(3)   191,680    4.88
  Loans held for
   sale(4)           29,061    4.87
------------------- ----------------
       Total
        selected
        loans
        secured by
        real estate 220,741    4.87
  MBS(5):
   Short-term
    adjustable-rate
    MBS(1)            8,675    3.30
   Medium-term
    adjustable-rate
    MBS(2)              249    3.22
   Fixed-rate MBS       780    6.47
------------------- ----------------
       Total MBS(6)   9,704    3.55
------------------- ----------------
       Total
        selected
        loans
        secured by
        real estate
        and MBS    $230,445    4.82
=================== ================



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

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

(3) At September 30, 2005, June 30, 2005, and September 30, 2004, the
    adjustable-rate loans with lifetime caps were $182.35 billion,
    $177.53 billion, and $167.62 billion with a lifetime weighted
    average cap rate of 12.30%, 12.35% and 12.24%.

(4) Excludes student loans.

(5) Includes only those securities designated as available-for-sale.
    Excludes principal-only strips and interest-only strips.

(6) At September 30, 2005, June 30, 2005 and September 30, 2004, the
    adjustable-rate MBS with lifetime caps were $12.74 billion, $11.10
    billion and $8.87 billion with a lifetime weighted average cap
    rate of 10.19%, 10.15% and 10.55%.

                                              June 30,      Dec. 31,
                                              2005          2004
                                              to            to
                                              Sept. 30,     Sept. 30,
                                              2005          2005
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
    Balance, beginning of period               $ 51,122    $  42,743
        Loans originated, purchased and
         transferred from held in portfolio      45,049      128,186
        Loans transferred to held in
         portfolio                               (3,685)      (6,366)
        Loans sold and other                    (44,468)    (116,545)
----------------------------------------------  ----------  ---------
    Balance, end of period                     $ 48,018    $  48,018
==============================================  ==========  =========

Rollforward of Loans Held in Portfolio
    Balance, beginning of period               $212,737    $ 207,071
        Loans originated, purchased and
         transferred from held for sale          29,374       78,955
        Loan payments, transferred to held
         for sale and other                     (23,917)     (67,832)
----------------------------------------------  ----------  ---------
    Balance, end of period                     $218,194    $ 218,194
==============================================  ==========  =========


WM-15

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

                                             Quarter Ended
------------------------------- --------------------------------------
Detail of Revenue from  Sales
 and Servicing of Home           Sept.  June   Mar.     Dec.    Sept.
 Mortgage Loans                   30,    30,    31,      31,     30,
                                 2005   2005   2005     2004    2004
------------------------------- ------ ------ ------  -------- -------
Gain from home mortgage loans and
 originated mortgage-backed
 securities,
   net of hedging and risk
    management instruments:
   Gain from home mortgage loans
    and originated mortgage-
    backed securities            $206   $250   $181     $157     $210
   Revaluation gain (loss) from
    derivatives                    73    (79)    80       25      (23)
--------------------------------------- ------ ------ -------- -------
        Gain from home mortgage
         loans and originated
         mortgage-backed
         securities, net of
         hedging and risk
         management instruments   279    171    261      182      187
Home mortgage loan servicing
 revenue (expense):
   Home mortgage loan servicing
    revenue, net(1)               538    527    512      479      485
   Amortization of MSR           (555)  (564)  (570)    (636)    (589)
   MSR valuation adjustments(2)   412    (77)   539      257      165
   Revaluation gain from
    derivatives                    40     61     35       70      256
--------------------------------------- ------ ------ -------- -------
        Home mortgage loan
         servicing revenue
         (expense), net of
         hedging and derivative
         risk management
         instruments              435    (53)   516      170      317
        Total revenue from sales
         and servicing of home
         mortgage loans           714    118    777      352      504
--------------------------------------- ------ ------ -------- -------
Impact of other MSR risk
 management instruments:
    Revaluation gain (loss) from
     certain trading securities  (217)   259   (109)      36       45
    Gain (loss) from certain
     available-for-sale
     securities                     -     26    (44)      (4)       -
--------------------------------------- ------ ------ -------- -------
        Total impact of other MSR
         risk management
         instruments             (217)   285   (153)      32       45
--------------------------------------- ------ ------ -------- -------
             Total revenue from
              sales and servicing
              of home mortgage
              loans and all MSR
              risk management
              instruments        $497   $403   $624     $384     $549

                                                        Nine Months
                                                            Ended
--------------------------------------- ------ ------ ----------------
Detail of Revenue from Sales and                        Sept.    Sept.
 Servicing of Home Mortgage Loans                        30,      30,
                                                        2005     2004
--------------------------------------- ------ ------ -------- -------
Gain from home mortgage loans and
 originated mortgage-backed
 securities,
   net of hedging and risk
    management instruments:
   Gain from home mortgage loans
    and originated mortgage-
    backed securities                                   $637     $494
   Revaluation gain from
    derivatives                                           74       56
--------------------------------------- ------ ------ -------- -------
        Gain from home mortgage
         loans and originated
         mortgage-backed
         securities, net of
         hedging and risk
         management instruments                          711      550
Home mortgage loan servicing
 revenue (expense):
   Home mortgage loan servicing
    revenue, net(1)                                    1,576    1,464
   Amortization of MSR                                (1,689)  (1,884)
   MSR valuation adjustments(2)                          874     (493)
   Revaluation gain from
    derivatives                                          137    1,398
--------------------------------------- ------ ------ -------- -------
        Home mortgage loan
         servicing revenue, net
         of hedging and
         derivative risk
         management instruments                          898      485
        Total revenue from sales
         and servicing of home
         mortgage loans                                1,609    1,035
--------------------------------------- ------ ------ -------- -------
Impact of other MSR risk
 management instruments:
    Revaluation gain (loss) from
     certain trading securities                          (66)      45
    Gain (loss) from certain
     available-for-sale
     securities                                          (18)       5
--------------------------------------- ------ ------ -------- -------
        Total impact of other MSR
         risk management
         instruments                                     (84)      50
--------------------------------------- ------ ------ -------- -------
             Total revenue from
              sales and servicing
              of home mortgage
              loans and all MSR
              risk management
              instruments                             $1,525   $1,085

(1) Includes late charges, prepayment fees and loan pool expenses,
    which represent the shortfall of the scheduled interest required
    to be remitted to investors compared to what is collected from the
    borrowers upon payoff.

(2) Net of fair value hedge ineffectiveness as well as any
    impairment/reversal recognized on MSR that results from the
    application of the lower of cost or market value accounting
    methodology.


WM-16

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

                                        Quarter Ended
---------------------------------------------------------------------
                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                           2005     2005     2005     2004      2004
------------------------ -------- -------- -------- ------- ----------
MSR Risk Management and
 Amortization:
   Statement No. 133
    MSR accounting
    valuation
    adjustments         $   849  $  (813) $   545  $ (123) $     (885)
   Amortization of MSR     (555)    (564)    (570)   (636)       (589)
   (Impairment)
    reversal                413     (250)     427     179        (266)
------------------------ -------- -------- -------- ------- ----------
        Net change in
         MSR valuation      707   (1,627)     402    (580)     (1,740)
Gain (loss) on MSR
 hedging and risk
 management
 instruments:
   Statement No. 133
    fair value hedging
    adjustments            (850)     986     (433)    201       1,316
   Revaluation gain
    from derivatives         40       61       35      70         256
   Revaluation gain
    (loss) from certain
    trading securities     (217)     259     (109)     36          45
   Gain (loss) from
    certain available-
    for-sale securities       -       26      (44)     (4)          -
------------------------ -------- -------- -------- ------- ----------
        Total gain
         (loss) on MSR
         hedging and
         risk
         management
         instruments     (1,027)   1,332     (551)    303       1,617
------------------------ -------- -------- -------- ------- ----------
        Total MSR
         risk
         management
         and amortization $(320) $  (295) $  (149) $ (277) $     (123)
======================== ======== ======== ======== ======= ==========



                                                   Nine Months Ended
                                                 ---------------------
                                                 Sept. 30,  Sept. 30,
                                                   2005        2004
                                                  ---------  ---------
MSR Risk Management and
 Amortization:
   Statement No. 133 MSR
    accounting valuation
    adjustments                                  $    580   $     822
   Amortization of MSR                             (1,689)     (1,884)
   (Impairment)
    reversal                                          590        (646)
------------------------------------------------- ---------  ---------
        Net change in
         MSR valuation                               (519)     (1,708)
Gain (loss) on MSR hedging
 and risk management
 instruments:
   Statement No. 133 fair
    value hedging
    adjustments                                      (296)       (669)
   Revaluation gain
    from derivatives                                  137       1,398
   Revaluation gain (loss)
    from certain trading
    securities                                        (66)         45
   Gain (loss) from certain
    available-for-sale
    securities                                        (18)          5
------------------------------------------------- ---------  ---------
        Total gain
         (loss) on MSR
         hedging and
         risk
         management
         instruments                                 (243)        779
------------------------------------------------- ---------  ---------
           Total MSR
            risk
            management
            and amortization                     $   (762)  $    (929)
================================================= =========  =========


WM-17

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

                                        Quarter Ended
----------------------------------------------------------------------
                    Sept. 30,  June 30,  Mar. 31,  Dec. 31,  Sept. 30,
                       2005      2005      2005      2004        2004
------------------- ---------- --------- --------- --------- ---------
Rollforward of
 Mortgage Servicing
 Rights(1)(2)
   Balance, beginning
    of period         $  5,730  $  6,802 $  5,906 $  6,112  $ 7,501
      Home loans:
         Additions         605       555      490      372      348
         Amortization     (555)     (564)    (570)    (636)    (589)
         (Impairment)
          reversal         413      (250)     427      179     (266)
         Statement No.
          133 MSR
          accounting
          valuation
          adjustments      849      (813)     545     (123)    (885)
      Net change in
       commercial
       real estate
       MSR                   -         -        4        2        3
---------------------- --------- -------- -------- --------- -------
   Balance, end of
    period(3)         $  7,042  $  5,730 $  6,802 $  5,906  $ 6,112
====================== ========= ======== ======== ========= =======
Rollforward of Valuation
 Allowance for MSR Impairment
   Balance, beginning
    of period         $  1,746  $  1,513 $  1,981 $  2,653  $ 2,417
      Impairment
       (reversal)         (413)      250     (427)    (179)     266
      Other-than-
       temporary
       impairment          (18)      (11)     (34)    (486)     (22)
      Other                 (3)       (6)      (7)      (7)      (8)
---------------------- --------- -------- -------- --------- -------
   Balance, end of
    period            $  1,312  $  1,746 $  1,513 $  1,981  $ 2,653
====================== ========= ======== ======== ========= =======
Rollforward of Loans
 Serviced for Others
   Balance, beginning
    of period         $543,324  $542,797 $540,392 $551,245  $ 558,388
      Home loans:
         Additions      43,418    36,174   34,533   27,218     29,699
         Loan
          payments
          and other    (39,005)  (35,689) (32,861) (38,529)   (37,035)
      Net change in
       commercial real
       estate loans
       serviced for
       others             (159)       42      733      458        193
---------------------- --------- -------- -------- --------- ---------
   Balance, end of
    period            $547,578  $543,324 $542,797 $540,392  $ 551,245
====================== ========= ======== ======== ========= =========

                     Sept. 30,  June 30, Mar. 31,  Dec. 31,  Sept. 30,
                         2005      2005    2005      2004       2004
---------------------- -------- -------- -------- --------- ----------
Total Servicing
 Portfolio
      Loans serviced
       for others     $547,578  $543,324 $542,797 $540,392  $ 551,245
      Servicing on
       retained MBS
       without MSR       1,487     1,592    1,702    1,808      2,713
      Servicing on
       owned loans     245,165   243,494  233,738  229,879    217,592
      Subservicing
       portfolio           749       825      421      461        502
---------------------- -------- -------- -------- --------- ----------
   Total servicing
    portfolio         $794,979  $789,235 $778,658 $772,540  $ 772,052
====================== ======== ======== ======== ========= ==========

                                                   September 30, 2005
---------------------------------------------------------------------
                                                  Unpaid    Weighted
                                                 Principal   Average
                                                  Balance  Servicing
                                                               Fee
----------------------------------------------------------------------
                                                          (in basis
                                                            points,
Loans Serviced for                                        annualized)
 Others by Loan Type
      Government                                 $ 47,920      46
      Agency                                      328,101      31
      Private                                     147,030      40
      Specialty home loans                         24,527      52
------------------------------------------------- --------- ----------
   Total loans
    serviced for
    others(4)                                    $547,578      36
================================================= ========= ==========

(1) Net of valuation allowance.

(2) MSR as a percentage of loans serviced for others was 1.29%, 1.05%,
    1.25%, 1.09% and 1.11% at September 30, 2005, June 30, 2005, March
    31, 2005, December 31, 2004, and September 30, 2004.

(3) At September 30, 2005, the aggregate MSR fair value was $7.06
    billion.

(4) Weighted average coupon rate (annualized) was 5.86% at September
    30, 2005.



WM-18

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

                                          Quarter Ended
----------------------------------------------------------------------
                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                          2005      2005     2005     2004      2004
--------------------------------- -------- -------- -------- ---------
Allowance for Loan and
 Lease Losses
   Balance, beginning of
    quarter               $1,243   $1,280   $1,301   $1,322    $1,293
   Other                       -      (29)       -      (20)        -
   Provision for loan and
    lease losses              52       31       16       37        56
--------------------------------- -------- -------- -------- ---------
                           1,295    1,282    1,317    1,339     1,349
   Loans charged off:
      Loans secured by real
       estate:
         Home                 (9)     (11)     (11)      (9)       (6)
         Specialty mortgage
          finance(1)         (15)     (11)     (10)     (10)      (11)
--------------------------------- -------- -------- -------- ---------
              Total home
               loans
               charged off   (24)     (22)     (21)     (19)      (17)
         Home equity loans
          and lines of
          credit             (10)      (8)      (5)      (3)       (6)
         Home
          construction(2)      -       (2)       -       (1)        -
         Multi-family          -       (1)       -       (2)        -
         Other real estate    (4)      (2)      (1)      (1)       (1)
--------------------------------- -------- -------- -------- ---------
              Total loans
               secured by
               real estate   (38)     (35)     (27)     (26)      (24)
      Consumer                (8)      (9)     (13)     (17)      (11)
      Commercial business     (4)      (8)      (6)      (8)       (4)
---------------------------- ------- ------- -------- -------- -------
              Total loans
               charged off   (50)     (52)     (46)     (51)      (39)
   Recoveries of loans
    previously charged off:
      Loans secured by real
       estate:
         Specialty mortgage
          finance(1)           1        1        1        1         1
         Home equity loans
          and lines of
          credit               1        1        -        2         -
         Multi-family          2        -        -        -         1
         Other real estate     8        3        1        2         2
--------------------------------- -------- -------- -------- ---------
              Total loans
               secured by
               real estate    12        5        2        5         4
      Consumer                 5        6        5        4         5
      Commercial business      2        2        2        4         3
--------------------------------- -------- -------- -------- ---------
              Total
               recoveries of
               loans
               previously
               charged off    19       13        9       13        12
--------------------------------- -------- -------- -------- ---------
      Net charge-offs        (31)     (39)     (37)     (38)      (27)
--------------------------------- -------- -------- -------- ---------
   Balance, end of
    quarter               $1,264   $1,243   $1,280   $1,301    $1,322
================================= ======== ======== ======== =========

   Net charge-offs
    (annualized) as a
    percentage of average
    loans held
    in portfolio            0.06 %   0.07 %   0.07  %  0.07  %  0.05 %
   Allowance as a percentage
    of total loans held in
    portfolio               0.58     0.58     0.60     0.63     0.64

(1) Represents purchased subprime loan portfolios and mortgages
    originated by Long Beach Mortgage Company that are designated as
    held for investment.

(2) 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-19

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

                                 Sept.   June    Mar.    Dec.    Sept.
                                  30,     30,     31,     31,     30,
                                 2005    2005    2005    2004    2004
------------------------------- ------- ------- ------- ------- ------
Nonperforming Assets and
 Restructured Loans
  Nonaccrual loans(1):
     Loans secured by real
      estate:
        Home                   $  472  $  495  $  495  $  534  $  529
        Specialty mortgage
         finance(2)               755     692     734     682     617
------------------------------- ------- ------- ------- ------- ------
              Total home
               nonaccrual loans 1,227   1,187   1,229   1,216   1,146
        Home equity loans and
         lines of credit           68      67      74      66      50
        Home construction(3)       10      11      25      28      31
        Multi-family               18      15      15      12      23
        Other real estate          69     116     159     162     173
------------------------------- ------- ------- ------- ------- ------
              Total nonaccrual
               loans secured by
               real estate      1,392   1,396   1,502   1,484   1,423
     Consumer                       8       8       8       9      11
     Commercial business           65      59      59      41      37
------------------------------- ------- ------- ------- ------- ------
              Total nonaccrual
               loans held in
               portfolio        1,465   1,463   1,569   1,534   1,471
  Foreclosed assets               256     256     264     261     281
------------------------------- ------- ------- ------- ------- ------
              Total
               nonperforming
               assets          $1,721  $1,719  $1,833  $1,795  $1,752
              As a percentage
               of total assets   0.52%   0.53%   0.57%   0.58%   0.61%
  Restructured loans           $   25  $   25  $   27  $   34  $   38
------------------------------- ------- ------- ------- ------- ------
                 Total
                  nonperforming
                  assets and
                  restructured
                  loans        $1,746  $1,744  $1,860  $1,829  $1,790
=============================== ======= ======= ======= ======= ======

(1) Excludes nonaccrual loans held for sale of $152 million at
    September 30, 2005. Prior periods also reflect the exclusion of
    nonaccrual loans held for sale of $108 million, $112 million, $76
    million and $84 million at June 30, 2005, March 31, 2005, December
    31, 2004 and September 30, 2004. 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 purchased subprime loan portfolios and mortgages
    originated by Long Beach Mortgage Company that are designated as
    held for investment.

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

    CONTACT: Washington Mutual
             Alan Gulick, 206-377-3637 (Media Contact)
             alan.gulick@wamu.net
             or
             Alan Magleby, 206-490-5182 (Investor Relations)
             alan.magleby@wamu.net

    SOURCE: Washington Mutual