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Washington Mutual Announces Fourth Quarter and 2005 Earnings; Diluted EPS Increased 12 Percent for the Quarter and 14 Percent for the Year Board of Directors Increases Cash Dividend

SEATTLE--(BUSINESS WIRE)--Jan. 18, 2006--Washington Mutual, Inc. (NYSE:WM) today announced fourth quarter 2005 net income of $865 million, or $0.85 per diluted share, up 12 percent on a per share basis when compared with net income of $668 million, or $0.76 per diluted share, in the fourth quarter of 2004. Net income of $3.43 billion, or $3.73 per diluted share, for 2005 increased 14 percent on a per share basis when compared with net income of $2.88 billion, or $3.26 per diluted share, in 2004.

Washington Mutual's Board of Directors declared a cash dividend of 50 cents per share on the company's common stock, up from 49 cents per share in the previous quarter. Dividends on the common stock are payable on February 15, 2006 to shareholders of record as of January 31, 2006.

"Despite the challenging environment, especially in the home loans business, we delivered solid performance, achieving 12 percent earnings per share growth for the quarter and 14 percent for the year," said Kerry Killinger, chairman and chief executive officer. "Our strategies are sound and we continue to execute on our growth and productivity initiatives. In addition, our risk management efforts are on track, and we have a proven management team in place as we enter 2006."

Key Results

-- The company closed its merger with Providian Financial Corporation on October 1, 2005. The financial results for the fourth quarter and for all of 2005 reflect a full quarter's activity for the Card Services Group.

-- Total average assets of $349.93 billion in the fourth quarter of 2005 increased 7 percent from $327.29 billion in the third quarter of 2005 and included the addition of $13.42 billion of Providian assets in the fourth quarter. Average assets were up 15 percent for all of 2005, reflecting the company's continued strong asset generation capability.

-- The net interest margin increased to 2.77 percent in the fourth quarter from 2.61 percent in the third quarter of 2005, as the addition of Card Services' higher-yielding assets more than offset the effect of a flattening yield curve.

-- Depositor and other retail banking fees of $586 million in the fourth quarter of 2005 were up $71 million, or 14 percent, from the fourth quarter of 2004 and for the full year retail banking fees of $2.19 billion increased $194 million, or 10 percent, from 2004, reflecting the strong growth in checking accounts over the periods. During 2005, checking accounts grew by 902,000 accounts, or 10 percent.

-- During the fourth quarter, Card Services added $313 million in revenue from sales and servicing of consumer loans and $139 million in credit card fees to the company's total noninterest income.

-- Revenue from sales and servicing of home mortgage loans, including the results of all MSR risk management instruments, was $264 million in the fourth quarter of 2005, compared with $497 million in the third quarter of 2005 and $384 million in the fourth quarter of 2004. The further flattening of the yield curve in the fourth quarter significantly increased the cost of MSR risk management, which contributed to the decrease in revenue. For the full year, revenues were $1.79 billion, compared with $1.47 billion in 2004. The improved year-over-year performance reflected increased sales volume of the company's Option ARM product.

-- The provision for loan and lease losses was $121 million in the fourth quarter of 2005, of which $99 million was allocated for credit card loans. The loan loss provision of $220 million for 2005 also included $37 million for potential hurricane-related losses. The remaining provision of $84 million compares favorably with the $209 million provision in 2004 and reflected a positive credit environment for most of 2005.

-- Noninterest expense of $2.28 billion in the fourth quarter increased by $353 million from $1.93 billion in the third quarter of 2005 and increased by $340 million from $1.94 billion in the fourth quarter of 2004, primarily due to the addition of Card Services.

FOURTH QUARTER FINANCIAL SUMMARY

Net Interest Income

The net interest margin in the fourth quarter was 2.77 percent, up 16 basis points from 2.61 percent in the third quarter of 2005, as the addition of Card Services' higher-yielding assets more than offset the margin compression on the remainder of the company's portfolio. While the net interest margin was up on a linked-quarter basis, it was down 2 basis points from 2.79 percent in the fourth quarter of 2004. The decrease in the net interest margin from a year ago reflects the flattening of the yield curve and the continuing rise in short-term interest rates since June of 2004, the impact of which was mostly offset by the addition of Card Services. On an annual basis, the 2005 net interest margin of 2.67 percent was down 15 basis points from 2.82 percent during 2004. The decline reflected the impact of a 200 basis point increase in the Fed Funds rate over the past twelve months. 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 $2.15 billion in the fourth quarter was up from $1.92 billion in the third quarter of 2005 reflecting both the 6 percent increase in average interest-earning assets and the inclusion of Card Services' higher-yielding credit card portfolio which had the effect of increasing this quarter's net interest margin. Compared with the fourth quarter a year ago, net interest income was up 16 percent from $1.85 billion, which reflected an 18 percent increase in average interest-earning assets that more than offset the margin compression.

Noninterest Income

Noninterest income was $1.59 billion in the fourth quarter of 2005, up from $1.37 billion in the third quarter of 2005 and up from $1.22 billion in the fourth quarter of 2004. Card Services added $313 million from the sales and servicing of consumer loans and $139 million was from credit card fees.

Reflecting the strong growth in checking accounts, depositor and other retail banking fees of $586 million in the fourth quarter were up $71 million, or 14 percent, from the same quarter a year ago and at $2.19 billion for 2005 were up $194 billion, or 10 percent, year over year.

Revenue from sales and servicing of home mortgage loans, including the results of all MSR risk management instruments, was $264 million in the fourth quarter of 2005, compared with $497 million in the third quarter of 2005 and $384 million in the fourth quarter of 2004. As expected, the interest rate environment for mortgage banking was more challenging during the fourth quarter. Rising short-term rates and a flat yield curve significantly increased the cost of MSR risk management during the fourth quarter when compared with the prior periods. In addition, continued competitive pressure in both the prime and subprime markets affected gain on sale margins. For the full year, mortgage banking revenue of $1.79 billion was up from $1.47 billion in 2004 as the company took advantage of the strong secondary market.

Noninterest Expense

Noninterest expense of $2.28 billion was up $353 million from the third quarter of 2005 and up $340 million from the fourth quarter of 2004. The majority of the increase in expenses reflects the addition of Card Services. Also contributing to the increase were the company's growth initiatives, primarily the opening of 95 new retail banking stores during the quarter and 210 during all of 2005. Noninterest expense for the year, after factoring in the impact of the company's new credit card business, was in line with 2004's level of $7.5 billion.

At 58.17 percent, the company's efficiency ratio for 2005 was a significant improvement from 64.25 percent in 2004. The efficiency ratio over the past year reflected the company's success in growing revenue and its continued focus on productivity improvements and expense management. However, it was negatively impacted by the flattening of the yield curve which put pressure on the company's net interest margin, as well as by the higher cost of MSR risk management in the fourth quarter. As a result the company's efficiency ratio in the fourth quarter rose to 60.79 percent from 58.52 percent in the third quarter of 2005.

Lending

Total home loan volume in the fourth quarter of 2005 was $50.43 billion, compared with $56.14 billion in the third quarter of 2005 and $50.95 billion in the fourth quarter of 2004, reflecting a slowing housing market. Short-term adjustable-rate loans made up 26 percent of total home loan volume in the fourth quarter of 2005, compared with 31 percent in the third quarter of 2005 and 39 percent in the fourth quarter of 2004, as the flattening yield curve continued to influence the product mix of loans originated.

Home equity loans and lines of credit volume of $9.12 billion in the quarter was down from $10.83 billion in the prior quarter and $9.31 billion in the fourth quarter of 2004. As with home loan lending volume, the flattening of the yield curve is having a dampening effect on home equity lending.

Multi-family lending volume of $2.60 billion in the fourth quarter of 2005 was up slightly from $2.58 billion in the third quarter of 2005 and up from $2.24 billion in the fourth quarter of 2004.

Total loan volume of $261.16 billion in 2005 was down only slightly from $266.73 billion in 2004. The year's solid performance reflected continued strong loan demand, relatively low long-term interest rates, and record loan volume from the company's multi-family lending and its subsidiary Long Beach Mortgage Company.

Credit Quality

At December 31, 2005, nonperforming assets as a percentage of total assets were 0.57 percent, compared with 0.52 percent at September 30, 2005 and 0.58 percent at December 31, 2004. Nonperforming assets of $1.96 billion increased $241 million during the fourth quarter due to a higher level of nonaccrual home loans, a portion of which were delinquent loans in hurricane impacted areas.

Net charge-offs for the quarter were $137 million, which included $98 million in credit card losses. The remaining net charge-offs for the quarter were $39 million, compared with $31 million in the third quarter of 2005 and $38 million in the fourth quarter of 2004, and remained low, in part due to the company's proactive credit risk management.

The provision for loan and lease losses was $121 million in the fourth quarter of 2005, of which $99 million was targeted for credit card loans. The loan loss provision of $220 million for 2005 included $99 million for Card Services and $37 million for potential hurricane-related losses. The remaining provision of $84 million compares favorably with the $209 million provision in 2004 and reflects the positive credit environment that existed for most of 2005.

Balance Sheet and Capital Management

Average assets of $349.93 billion increased 7 percent from the third quarter of 2005 and increased 18 percent from the fourth quarter of 2004, reflecting the addition of $13.42 billion of Providian assets during the quarter and the company's continued strong asset generation capability.

Average deposits of $196.80 billion during the fourth quarter were up $8.48 billion, or 5 percent, from the third quarter due to the inclusion of approximately $8.30 billion in deposits from Providian. Compared with the fourth quarter of 2004, average deposits were up $22.93 billion, or 13 percent, due to the growth in both retail and wholesale deposits.

The company's ratio of tangible equity to total tangible assets was 5.73 percent at the end of the quarter. At the beginning of the quarter, the company issued approximately 121 million shares in connection with the Providian merger, and subsequently repurchased approximately 18.9 million shares of its stock.

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.

FOURTH QUARTER OPERATING SEGMENT RESULTS

Retail Banking and Financial Services Group

Net income for the company's Retail Banking and Financial Services segment was $628 million in the fourth quarter of 2005, up 4 percent from $603 million in the third quarter of 2005 and up 1 percent from $623 million in the fourth quarter of 2004. On a linked-quarter basis, net interest income was up $48 million due to an increase in the average balance of the home loans portfolio along with a slight margin expansion.

Noninterest income of $818 million in the fourth quarter of 2005 was up from $786 million in the prior quarter. The quarter's increase from $717 million in the fourth quarter a year ago included a 14 percent growth in depositor and other retail banking fees.

The increase in noninterest expense to $1.17 billion during the fourth quarter from $1.13 billion in the third quarter and $1.05 billion in the fourth quarter of 2004 included the cost of investing in 95 new retail stores during the quarter and 210 new retail stores during the year.

The average balance of home equity loans and lines of credit was $50.46 billion during the fourth quarter, a 20 percent increase in the past twelve months. Average retail deposits of $140.21 billion were flat with the third quarter of 2005, and were up 6 percent from the fourth quarter of 2004.

Over the past year, the Retail Bank has been very successful in attracting new deposit accounts. The number of checking accounts increased by 902,000 accounts, or 10 percent, reflecting the strong growth in free checking and momentum in attracting small businesses -- both areas of continued focus. During the year, the number of small business checking accounts increased by 48 percent. In addition to successfully promoting its checking products, the company significantly increased balances in its other deposit products, as average retail deposits for 2005 increased by 5 percent from 2004. For the year, the total number of retail accounts grew by approximately 1.8 million accounts, or 12 percent.

The company's retail banking cross-sell ratio increased to 6.31 products and services, up from 5.85 at December 31, 2004, reflecting the company's success in selling products and services to its customers. The increase also reflects the number of existing Washington Mutual retail banking customers who hold Providian credit cards. Over the past year, WM Advisors' assets under management grew by $3.11 billion, or 14 percent, to $25.31 billion at December 31, 2005.

Card Services Group

Card Services is the company's newest business line -- the result of the merger with Providian on October 1. Consequently, only the fourth quarter operating results for Card Services are shown.

The quarter reflected encouraging results for Card Services. Net income was $166 million. The integration process is on target. Specific marketing programs aimed at Washington Mutual retail customers were launched with positive early results. During the quarter, Card Services added $1.05 billion in managed receivables, however, because Card Services also sold $365 million of higher risk loans, the ending balance of managed receivables of $19.96 billion was up $680 million for the quarter. A meaningful portion of this growth was the direct result of cross selling cards to the company's retail customer base.

The credit quality of the card portfolio continues to be strong. The 30+ day managed delinquency rate at December 31 was 5.07 percent of total managed receivables, up slightly from 5.00 percent at the end of the third quarter. At 7.28 percent, managed net credit losses as a percentage of average managed receivables were essentially flat with the third quarter.

Commercial Group

Net income for the Commercial Group segment, which includes Long Beach Mortgage, was $164 million in the fourth quarter of 2005, compared with $216 million in the third quarter of 2005 and $136 million in the fourth quarter of 2004. Noninterest income of $97 million was down from $156 million in the third quarter of 2005, reflecting gain on sale revenue at Long Beach that was adversely impacted by adjustments in estimates of the company's liability to repurchase loans resulting from whole loan sales and compressed margins.

Noninterest expense of $180 million during the fourth quarter was up from $163 million in the prior quarter and up from $155 million in the fourth quarter of 2004, as the Commercial Group continued to expand its Long Beach operations.

Loan volume of $41.00 billion during 2005 was up from $28.98 billion in 2004 and reflected record loan volume for multi-family lending and from Long Beach.

Home Loans Group

Net income for the Home Loans segment was $47 million in the fourth quarter of 2005, compared with $191 million in the third quarter of 2005 and $164 million in the fourth quarter of 2004, reflecting the decrease in noninterest income over the periods. Contributing to the fourth quarter's decline in noninterest income was the increased cost of MSR risk management due to the flattening of the yield curve throughout the year, partially offset by a reduction of the company's estimated liability to repurchase loans resulting principally from improved repurchase experience.

Noninterest expense of $540 million in the fourth quarter of 2005 was essentially flat with the third quarter of 2005, but was down $56 million, or 9 percent, from $596 million in the fourth quarter of 2004, as the hiring of additional sales staff was partially offset by continued productivity and efficiency improvements. Productivity improvements throughout 2005 resulted in a decline in noninterest expense of $347 million for the year.

The Home Loans segment loan volume in the fourth quarter of 2005 was $41.49 billion, compared with $48.08 billion in the third quarter of 2005 and $41.78 billion in the fourth quarter of last year, as a relatively strong housing market and relatively low interest rates continued to drive volume.

Company Updates

During the quarter, the company hired Ronald J. Cathcart as executive vice president and chief enterprise risk officer and John F. Woods as its new corporate controller.

On December 21, 2005, the company announced the realignment of Long Beach and Mortgage Banker Finance under the leadership of David Schneider - President of the Home Loans Group. Segment operating results will reflect the move in the first quarter of 2006.

To support the company's ambitious growth plans and to achieve top tier productivity, the company expects to relocate more of its operations to lower cost domestic markets and increase its use of offshore resources where appropriate. The company currently utilizes about 1,600 offshore vendor FTEs and as it continues planning its business efficiency initiatives, the number of offshore FTE could grow to over 6,000 over the next two years. In addition, the company's regional operations in San Antonio, TX could grow to over 3,000 FTEs over that same period. To support that effort, today the company informed approximately 1,000 employees from its Chatsworth, CA facility that over the next few months the majority of their positions would be relocated to San Antonio, with a small portion of the work currently done by these employees migrating offshore.

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 December 31, 2005, Washington Mutual and its subsidiaries had assets of $343.12 billion. Washington Mutual currently operates more than 2,600 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, January 18, 2006, at 5:00 p.m. EST and will be hosted by Kerry Killinger, chairman and chief executive officer and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 800-857-5735. 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 available on the company's web site prior to the call and archived for 30 days. A recording of the conference call will be available after 7:00 p.m. EST on Wednesday, January 18, 2006, through 11:59 p.m. EST on Friday, January 27, 2006. The recorded message will be available at 800-395-6236. Callers from outside the United States may dial 203-369-3270.

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

                                 Quarter Ended
--------------------------------------------------------
                          Dec. 31,   Sept. 30, June 30,
                            2005       2005      2005
------------------------ ----------- --------- ---------
PROFITABILITY
    Net income          $      865  $    821  $    844
    Net interest income      2,154     1,916     1,926
    Noninterest income       1,593     1,374     1,267
    Noninterest expense      2,278     1,925     1,828

    Diluted earnings per
     common share             0.85      0.92      0.95

    Diluted weighted
     average
     number of common
     shares
     outstanding(1)      1,011,395   888,495   887,250
    Net interest margin       2.77 %    2.61 %    2.66 %
    Dividends declared
     per common share   $     0.49  $   0.48  $   0.47
    Book value per
     common share(2)         27.95     25.92     25.62
    Return on average
     assets                   0.99 %    1.00 %    1.05 %
    Return on average
     common equity           12.49     14.66     15.33
    Efficiency ratio(3)      60.79     58.52     57.24

ASSET QUALITY
    Nonperforming
     assets/total
     assets(4)(5)             0.57 %    0.52 %    0.53 %
    Allowance as a
     percentage of total
     loans held in
     portfolio(4)             0.74      0.58      0.58
    Provision for loan
     and lease losses   $      121  $     52  $     31
    Net charge-offs            137        31        39

CAPITAL ADEQUACY(5)
    Capital Ratios at
     WMI-consolidated
     level:
        Tangible
         equity(6)/total
         tangible
         assets(6)            5.73 %    5.09 %    5.13 %
        Estimated total
         risk-based
         capital/total
         risk-weighted
         assets(7)           11.10     10.71     11.10
    Capital Ratios at
     WMB-bank only level
     (well-capitalized
     minimum)(8):
        Tier 1 capital
         to adjusted
         total assets
         (5.00%)              6.59      5.85      5.74
        Adjusted tier 1
         capital to
         total risk-
         weighted assets
         (6.00%)              8.73      8.47      8.38
        Total risk-based
         capital to
         total risk-
         weighted assets
         (10.00%)            11.77     11.48     11.51

SUPPLEMENTAL DATA
    Average balance sheet:
       Total loans held
        in portfolio    $  227,568  $213,016  $213,638
       Total interest-
        earning assets     314,531   296,568   290,876
       Total assets        349,931   327,292   320,845
       Total deposits      196,799   188,320   183,521
       Total
        stockholders'
        equity              27,708    22,412    22,014
    Period-end balance
     sheet:
       Total loans held in
        portfolio, net of
        allowance for loan
        and lease losses   227,937   216,930   211,494
       Total assets        343,119   333,622   323,533
       Total deposits      193,167   190,412   184,317
       Total
        stockholders'
        equity              27,616    22,596    22,350
       Common shares
        outstanding at
        the end of
        period(1)(9)       993,914   877,651   878,384
       Employees at end
        of period           60,798    56,214    54,377


                                 Quarter Ended         Year Ended
---------------------------------------------------------------------
                               Mar. 31,   Dec. 31,  Dec. 31, Dec. 31,
                                 2005      2004      2005      2004
---------------------------    --------- --------- --------- --------
PROFITABILITY
    Net income                $    902  $    668  $  3,432  $  2,878
    Net interest income          1,890     1,850     7,886     7,116
    Noninterest income           1,408     1,217     5,642     4,612
    Noninterest expense          1,839     1,938     7,870     7,535

    Diluted earnings per
     common share                 1.01      0.76      3.73      3.26

    Diluted weighted
     average number
     of common shares
     outstanding(1)            888,789   883,991   919,238   884,050
    Net interest margin           2.73 %    2.79 %    2.67 %    2.82 %
    Dividends declared per
     common share             $   0.46  $   0.45  $   1.90  $   1.74
    Book value per common
     share(2)                    24.98     24.45     27.95     24.45
    Return on average
     assets                       1.17 %    0.90 %    1.05 %    1.01 %
    Return on average
     common equity               16.63     12.71     14.63     14.02
    Efficiency ratio(3)          55.77     63.18     58.17     64.25

ASSET QUALITY
    Nonperforming
     assets/total
     assets(4)(5)                 0.57 %    0.58 %    0.57 %    0.58 %
    Allowance as a
     percentage of total
     loans held in
     portfolio(4)                 0.60      0.63      0.74      0.63
    Provision for loan and
     lease losses             $     16  $     37  $    220  $    209
    Net charge-offs                 37        38       244       135

CAPITAL ADEQUACY(5)
    Capital Ratios at WMI-
     consolidated level:
        Tangible
         equity(6)/total
         tangible assets(6)       5.03 %    5.05 %    5.73 %    5.05 %
        Estimated total
         risk-based
         capital/total
         risk-weighted
         assets(7)               11.21     11.34     11.10     11.34
    Capital Ratios at WMB-
     bank only level
     (well-capitalized
     minimum)(8):
        Tier 1 capital to
         adjusted total
         assets (5.00%)           5.69      5.46      6.59      5.46
        Adjusted tier 1
         capital to total
         risk-weighted
         assets (6.00%)           8.40      8.12      8.73      8.12
        Total risk-based
         capital to total
         risk-weighted
         assets (10.00%)         11.68     11.68     11.77     11.68

SUPPLEMENTAL DATA
    Average balance sheet:
       Total loans held in
        portfolio             $207,320  $208,296  $215,434  $194,433
       Total interest-
        earning assets         277,080   266,375   294,872   252,501
       Total assets            308,172   297,158   326,677   284,078
       Total deposits          175,185   173,873   186,023   165,408
       Total stockholders'
        equity                  21,680    21,025    23,467    20,528
    Period-end balance
     sheet:
       Total loans held in
        portfolio, net of
        allowance for loan
        and lease losses       212,834   205,770   227,937   205,770
       Total assets            319,696   307,918   343,119   307,918
       Total deposits          183,631   173,658   193,167   173,658
       Total stockholders'
        equity                  21,767    21,226    27,616    21,226
       Common shares
        outstanding at the
        end of period(1)(9)    877,287   874,262   993,914   874,262
       Employees at end of
        period                  52,488    52,579    60,798    52,579

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

(1) Number of shares in thousands.

(2) Excludes six million shares held in escrow in all periods
    reported.

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

(4) Excludes nonaccrual loans held for sale.

(5) As of period end.

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

(7) 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.

(8) Capital ratios for Washington Mutual Bank ("WMB") at December 31,
    2005 are preliminary.

(9) Includes six million shares held in escrow in all periods
    reported.


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

                                    Quarter Ended
----------------------------------------------------------------------
                    Dec. 31,   Sept. 30, June 30,  Mar. 31,  Dec. 31,
                      2005       2005      2005      2005      2004
----------------------------------------------------------------------
Interest Income
  Loans held for
   sale            $      673  $    661  $    576  $    470  $    393
  Loans held in
   portfolio            3,347     2,862     2,754     2,544     2,421
  Available-for-sale
   securities             303       238       234       224       157
  Trading assets          185       114        91        79        66
  Other interest and
   dividend income         73        65        51        43        29
----------------------------------------------------------------------
    Total interest
     income             4,581     3,940     3,706     3,360     3,066
Interest Expense
  Deposits              1,184       996       852       696       604
  Borrowings            1,243     1,028       928       774       612
----------------------------------------------------------------------
    Total interest
     expense            2,427     2,024     1,780     1,470     1,216
----------------------------------------------------------------------
     Net interest
      income            2,154     1,916     1,926     1,890     1,850
    Provision for loan
     and lease losses     121        52        31        16        37
----------------------------------------------------------------------
     Net interest
      income after
      provision for
      loan and lease
      losses            2,033     1,864     1,895     1,874     1,813
Noninterest Income
  Revenue from sales
   and servicing of
   home mortgage
   loans                  421       714       118       777       352
  Revenue from sales
   and servicing of
   consumer loans         313         2         2         1         1
  Depositor and
   other retail
   banking fees           586       578       540       490       515
  Credit card fees        139         -         -         -         -
  Securities fees
   and commissions        114       111       112       110       110
  Insurance income         37        42        47        46        47
  Portfolio loan
   related income         103       103        96        85       101
  Trading assets
   income (loss)         (273)     (171)      285       (98)       26
  Gain (loss) from
   other available-
   for-sale securities     46       (32)       25      (122)      (23)
  Gain on extinguishment
   of borrowings            1         -         -         -         -
  Other income            106        27        42       119        88
----------------------------------------------------------------------
     Total noninterest
      income            1,593     1,374     1,267     1,408     1,217
Noninterest Expense
  Compensation and
   benefits             1,037       939       886       876       839
  Occupancy and
   equipment              399       372       350       402       462
  Telecommunications
   and outsourced
   information
   services               139       108       100       104       115
  Depositor and
   other retail
   banking losses          60        61        49        55        61
  Advertising and
   promotion              114        81        77        55        57
  Professional fees        63        48        38        34        54
  Other expense           466       316       328       313       350
----------------------------------------------------------------------
     Total noninterest
      expense           2,278     1,925     1,828     1,839     1,938
----------------------------------------------------------------------
       Income before
        income taxes    1,348     1,313     1,334     1,443     1,092
       Income taxes       483       492       490       541       424
----------------------------------------------------------------------
Net Income         $      865  $    821  $    844  $    902  $    668
======================================================================

Earnings Per Common
 Share:
   Basic           $     0.88  $   0.95  $   0.98  $   1.04  $   0.77
   Diluted               0.85      0.92      0.95      1.01      0.76

Dividends declared
 per common share        0.49      0.48      0.47      0.46      0.45
Basic weighted
 average number of
 common shares
 outstanding (in
 thousands)           980,084   866,541   865,221   864,933   863,055
Diluted weighted
 average number of
 common shares
 outstanding (in
 thousands)         1,011,395   888,495   887,250   888,789   883,991



WM-3

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


                                                       Year Ended
---------------------------------------------------------------------
                                                     Dec. 31, Dec. 31,
                                                       2005     2004
--------------------------------------------------- --------- --------
Interest Income
   Loans held for sale                             $  2,382  $  1,472
   Loans held in portfolio                           11,507     8,825
   Available-for-sale securities                        998       764
   Trading assets                                       469       151
   Other interest and dividend income                   232       138
--------------------------------------------------- --------- --------
          Total interest income                      15,588    11,350
Interest Expense
   Deposits                                           3,728     2,043
   Borrowings                                         3,974     2,191
--------------------------------------------------- --------- --------
          Total interest expense                      7,702     4,234
--------------------------------------------------- --------- --------
               Net interest income                    7,886     7,116
   Provision for loan and lease losses                  220       209
--------------------------------------------------- --------- --------
               Net interest income after provision
                for loan and lease losses             7,666     6,907
Noninterest Income
   Revenue from sales and servicing of home
    mortgage loans                                    2,030     1,387
   Revenue from sales and servicing of consumer
    loans                                               317         4
   Depositor and other retail banking fees            2,193     1,999
   Credit card fees                                     139         -
   Securities fees and commissions                      448       426
   Insurance income                                     172       226
   Portfolio loan related income                        387       401
   Trading assets income (loss)                        (257)       89
   Gain (loss) from other available-for-sale
    securities                                          (84)       50
   Gain (loss) on extinguishment of borrowings            1      (237)
   Other income                                         296       267
--------------------------------------------------- --------- --------
          Total noninterest income                    5,642     4,612
Noninterest Expense
   Compensation and benefits                          3,737     3,428
   Occupancy and equipment                            1,523     1,659
   Telecommunications and outsourced information
    services                                            450       479
   Depositor and other retail banking losses            226       195
   Advertising and promotion                            327       276
   Professional fees                                    182       158
   Other expense                                      1,425     1,340
--------------------------------------------------- --------- --------
          Total noninterest expense                   7,870     7,535
--------------------------------------------------- --------- --------
               Income from continuing operations
                before income taxes                   5,438     3,984
               Income taxes                           2,006     1,505
--------------------------------------------------- --------- --------
                    Income from continuing
                     operations, net of taxes         3,432     2,479
--------------------------------------------------- --------- --------
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                                         $  3,432  $  2,878
=================================================== ========= ========

Basic Earnings Per Common Share:
    Income from continuing operations              $   3.84  $   2.88
    Income from discontinued operations, net              -      0.46
                                                    --------  --------
    Net income                                         3.84      3.34

Diluted Earnings Per Common Share:
    Income from continuing operations                  3.73      2.81
    Income from discontinued operations, net              -      0.45
                                                    --------  --------
    Net income                                         3.73      3.26

Dividends declared per common share                    1.90      1.74
Basic weighted average number of common shares
 outstanding (in thousands)                         894,434   862,215
Diluted weighted average number of common shares
 outstanding (in thousands)                         919,238   884,050


WM-4

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

                      Dec. 31,  Sept. 30, June 30,  Mar. 31,  Dec. 31,
                        2005      2005      2005      2005      2004
--------------------- --------- --------- --------- --------- --------
Assets
   Cash and cash
    equivalents      $  6,214  $  4,924  $  4,614  $  4,811  $  4,455
   Federal funds sold
    and securities
    purchased under
    agreements to
    resell              2,137     3,194       625     1,152        82
   Trading assets      10,999     7,351     5,687     6,066     5,588
   Available-for-
    sale securities,
    total amortized
    cost of $24,810,
    $20,757, $18,999,
    $20,569 and
    $19,047:
      Mortgage-backed
       securities      20,648    17,161    14,396    15,947    14,923
      Investment
       securities       4,011     3,603     4,852     4,756     4,296
   Loans held for
    sale               33,582    48,018    51,122    41,197    42,743
   Loans held in
    portfolio         229,632   218,194   212,737   214,114   207,071
   Allowance for
    loan and lease
    losses             (1,695)   (1,264)   (1,243)   (1,280)   (1,301)
--------------------- --------- --------- --------- --------- --------
      Total loans
       held in
       portfolio, net
       of allowance
       for loan and
       lease losses   227,937   216,930   211,494   212,834   205,770
   Investment in
    Federal Home
    Loan Banks          4,257     4,228     4,194     3,973     4,059
   Mortgage
    servicing rights    8,041     7,042     5,730     6,802     5,906
   Goodwill             8,298     6,196     6,196     6,196     6,196
   Other assets        16,995    14,975    14,623    15,962    13,900
--------------------- --------- --------- --------- --------- --------
      Total assets   $343,119  $333,622  $323,533  $319,696  $307,918
===================== ========= ========= ========= ========= ========
Liabilities
   Deposits:
     Noninterest-
      bearing
      deposits       $ 34,014  $ 36,850  $ 35,518  $ 34,941  $ 32,780
     Interest-
      bearing
      deposits        159,153   153,562   148,799   148,690   140,878
--------------------- --------- --------- --------- --------- --------
      Total deposits  193,167   190,412   184,317   183,631   173,658
   Federal funds
    purchased and
    commercial paper    7,081     7,229     5,864     2,053     4,045
   Securities sold
    under agreements
    to repurchase      15,532    14,508    14,089    16,716    15,944
   Advances from
    Federal Home
    Loan Banks         68,771    69,405    71,534    66,730    70,074
   Other borrowings    23,777    23,994    20,752    21,938    18,498
   Other liabilities    7,175     5,478     4,627     6,861     4,473
--------------------- --------- --------- --------- --------- --------
      Total
       liabilities    315,503   311,026   301,183   297,929   286,692
Stockholders' equity   27,616    22,596    22,350    21,767    21,226
--------------------- --------- --------- --------- --------- --------
      Total
       liabilities
       and
       stockholders'
       equity        $343,119  $333,622  $323,533  $319,696  $307,918
===================== ========= ========= ========= ========= ========


WM-5
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Quarter Ended
                       -----------------------------------------------
                       Dec. 31, Sept. 30,  June 30,  Mar. 31, Dec. 31,
                         2005     2005      2005      2005      2004
                       -------- --------- --------- --------- --------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period               $22,596  $ 22,350  $ 21,767  $ 21,226  $ 20,820
Net income                865       821       844       902       668
Other comprehensive
 (loss) income, net
 of tax                   (91)     (158)       98        (8)       49
Cash dividends
 declared on common
 stock                   (480)     (419)     (409)     (402)     (390)
Common stock
 repurchased and
 retired                 (723)      (98)        -      (100)        -
Common stock issued     5,449       100        50       149        79
---------------------- -------- --------- --------- --------- --------
Balance, end of
 period               $27,616  $ 22,596  $ 22,350  $ 21,767  $ 21,226
====================== ======== ========= ========= ========= ========


WM-6
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                         Quarter Ended
                         ---------------------------------------------
                         Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
                            2005     2005     2005     2005     2004
------------------------  -------- -------- -------- -------- --------
RETAIL BANKING AND
 FINANCIAL SERVICES GROUP
 Condensed income
  statement:
   Net interest income   $  1,395 $  1,347 $  1,391 $  1,344 $  1,330
   Provision for loan
    and lease losses           42       47       40       37       35
   Noninterest income         818      786      751      695      717
   Inter-segment revenue        8       12       11       12        8
   Noninterest expense      1,173    1,128    1,087    1,055    1,049
------------------------  -------- -------- -------- -------- --------
   Income before income
    taxes                   1,006      970    1,026      959      971
   Income taxes               378      367      388      363      348
------------------------  -------- -------- -------- -------- --------
             Net income  $    628 $    603 $    638 $    596 $    623
========================  ======== ======== ======== ======== ========
 Performance and other
  data:
   Efficiency ratio(1)      52.81%   52.61%   50.49%   51.46%   51.05%
   Average loans         $183,780 $179,361 $181,396 $177,635 $177,204
   Average assets         196,868  191,926  194,026  190,494  189,892
   Average deposits:
      Checking deposits:
      Noninterest
       bearing             19,953   19,350   18,868   17,588   16,710
      Interest bearing     43,192   45,186   47,531   49,777   51,974
                          -------- -------- -------- -------- --------
      Total checking
       deposits            63,145   64,536   66,399   67,365   68,684
      Savings and money
       market deposits     36,594   35,517   34,875   36,100   38,412
      Time deposits        40,473   38,688   34,265   29,517   25,677
                          -------- -------- -------- -------- --------
         Average total
          deposits        140,212  138,741  135,539  132,982  132,773
   Loan volume             11,563   11,191   11,704   12,493   13,337
   Employees at end of
    period                 30,437   30,028   28,948   27,609   27,341
HOME LOANS GROUP
 Condensed income
  statement:
   Net interest income   $    262 $    327 $    305 $    289 $    294
   Noninterest income         362      530      617      682      566
   Inter-segment
    expense                     8       12       11       12        8
   Noninterest expense        540      538      536      526      596
------------------------  -------- -------- -------- -------- --------
   Income before
    income taxes               76      307      375      433      256
   Income taxes                29      116      141      163       92
------------------------  -------- -------- -------- -------- --------
             Net income  $     47 $    191 $    234 $    270 $    164
========================  ======== ======== ======== ======== ========
 Performance and other
  data:
   Efficiency ratio(1)      87.60%   63.66%   58.84%   54.84%   69.94%
   Average loans         $ 30,914 $ 33,415 $ 31,434 $ 27,765 $ 24,880
   Average assets          56,903   54,077   51,552   49,026   44,198
   Average deposits        13,674   15,402   13,940   13,107   15,121
   Loan volume             41,493   48,082   44,855   38,498   41,782
   Employees at end of
    period                 13,256   12,954   12,530   12,561   13,838
CARD SERVICES GROUP
 (managed basis
  presentation)
 Condensed income
  statement(2):
   Net interest income   $    637
   Provision for loan
    and lease losses          358
   Noninterest income         256
   Noninterest expense        268
------------------------  --------------------------------------------
Income before income
 taxes                        267
Income taxes                  101
------------------------  --------------------------------------------
             Net income  $    166
========================  ============================================
 Performance and other
  data:
   Efficiency ratio (1)     29.99%
   Average loans         $ 19,472
   Average assets          22,198
   Employees at end of
    period                  3,124
COMMERCIAL GROUP
 Condensed income
  statement:
   Net interest income   $    349 $    356 $    346 $    320 $    319
   Provision for loan
    and lease losses            2        2        1        2        9
   Noninterest income          97      156       70      156       57
   Noninterest expense        180      163      157      138      155
------------------------  -------- -------- -------- -------- --------
   Income before
    income taxes              264      347      258      336      212
   Income taxes               100      131       97      127       76
------------------------  -------- -------- -------- -------- --------
             Net income  $    164 $    216 $    161 $    209 $    136
========================  ======== ======== ======== ======== ========
 Performance and other
  data:
   Efficiency ratio(1)      40.40%   31.90%   37.61%   28.92%   41.25%
   Average loans         $ 51,087 $ 50,441 $ 46,180 $ 40,734 $ 39,956
   Average assets          55,954   54,966   50,508   44,790   44,003
   Average deposits         7,888    8,646    7,641    7,298    7,744
   Loan volume             10,140   11,392   11,039    8,430    7,997
   Employees at end of
    period                  4,182    3,923    3,747    3,484    3,385

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



                                                       Year Ended
                                                   -------------------
                                                     Dec. 31, Dec. 31,
                                                       2005     2004
                                                   ---------- --------
RETAIL BANKING AND FINANCIAL SERVICES GROUP
 Condensed income statement:
   Net interest income                            $    5,478 $  4,999
   Provision for loan and lease losses                   165      164
   Noninterest income                                  3,049    2,758
   Inter-segment revenue                                  42       23
   Noninterest expense                                 4,444    4,123
-------------------------------------------------- ---------- --------
   Income before income taxes                          3,960    3,493
   Income taxes                                        1,495    1,305
-------------------------------------------------- ---------- --------
             Net income                           $    2,465 $  2,188
================================================== ========== ========
 Performance and other data:
   Efficiency ratio(1)                                 51.85%   53.00%
   Average loans                                  $  180,556 $163,328
   Average assets                                    193,342  175,713
   Average deposits:
      Checking deposits:
      Noninterest bearing                             18,948   15,522
      Interest bearing                                46,400   59,562
                                                   ---------- --------
      Total checking deposits                         65,348   75,084
      Savings and money market deposits               35,772   30,651
      Time deposits                                   35,774   24,602
                                                   ---------- --------
         Average total deposits                      136,894  130,337
   Loan volume                                        46,951   55,282
   Employees at end of period                         30,437   27,341
HOME LOANS GROUP
 Condensed income statement:
   Net interest income                            $    1,181 $  1,240
   Noninterest income                                  2,192    2,304
   Inter-segment expense                                  42       23
   Noninterest expense                                 2,140    2,487
-------------------------------------------------- ---------- --------
   Income before income taxes                          1,191    1,034
   Income taxes                                          449      386
-------------------------------------------------- ---------- --------
             Net income                           $      742 $    648
================================================== ========== ========
 Performance and other data:
   Efficiency ratio(1)                                 64.23%   70.63%
   Average loans                                  $   30,898 $ 23,591
   Average assets                                     52,915   41,934
   Average deposits                                   14,036   16,299
   Loan volume                                       172,928  182,212
   Employees at end of period                         13,256   13,838
CARD SERVICES GROUP (managed basis presentation)
 Condensed income statement(2):
   Net interest income                            $      637
   Provision for loan and lease losses                   358
   Noninterest income                                    256
   Noninterest expense                                   268
-------------------------------------------------- -------------------
   Income before income taxes                            267
   Income taxes                                          101
-------------------------------------------------- -------------------
             Net income                           $      166
================================================== ===================
 Performance and other data:
   Efficiency ratio (1)                                29.99%
   Average loans                                  $    4,908
   Average assets                                      5,595
   Employees at end of period                          3,124
COMMERCIAL GROUP
 Condensed income statement:
   Net interest income                            $    1,371 $  1,314
   Provision for loan and lease losses                     7       41
   Noninterest income                                    478      303
   Noninterest expense                                   637      518
-------------------------------------------------- ---------- --------
   Income before income taxes                          1,205    1,058
   Income taxes                                          455      395
-------------------------------------------------- ---------- --------
             Net income                           $      750 $    663
================================================== ========== ========
 Performance and other data:
   Efficiency ratio(1)                                 34.46%   32.02%
   Average loans                                  $   47,147 $ 37,916
   Average assets                                     51,594   42,474
   Average deposits                                    7,872    7,108
   Loan volume                                        41,000   28,978
   Employees at end of period                          4,182    3,385

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



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

(2) Operating results for the Card Services Group are presented on a
    managed basis as the Company treats securitized and sold credit
    card receivables as if they were still on the balance sheet in
    evaluating the overall performance of this operating segment. A
    managed basis presentation excludes the impact of securitizations,
    including their effect on income, the provision for credit losses
    and average loans and assets.  Securitization adjustments to
    arrive at the reported GAAP results for the fourth quarter of 2005
    were: a decrease of $409 million in net interest income; an
    increase of $150 million in noninterest income; a decrease of $259
    million in the provision for credit losses; a decrease of $11.01
    billion in average loans; and a decrease of $9.27 billion in
    average assets, all of which are eliminated within Reconciling
    Adjustments.


WM-7
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

(This table is
continued from "WM-6".)             Quarter Ended
----------------------------------------------------------------------
                 Dec. 31,   Sept. 30,   June 30,   Mar. 31,   Dec. 31,
                   2005       2005        2005       2005       2004

----------------------------------------------------------------------
CORPORATE
 SUPPORT/TREASURY
 AND OTHER
  Condensed income
   statement:
    Net interest
     expense    $    (196) $    (229) $    (230) $    (176) $    (206)
    Provision for
     loan and lease
     losses             -          -          -          -          1
    Noninterest
     income
     (expense)         29        (48)       (36)       (63)        16
    Noninterest
     expense          117         96         48        120        138
----------------------------------------------------------------------
    Loss from
     continuing
     operations
     before income
     taxes           (284)      (373)      (314)      (359)      (329)
    Income tax
     benefit         (112)      (151)      (127)      (147)      (136)
----------------------------------------------------------------------
     Loss from
      continuing
      operations     (172)      (222)      (187)      (212)      (193)
    Income from
     discontinued
     operations,
     net of taxes       -          -          -          -          -
----------------------------------------------------------------------
      Net loss  $    (172) $    (222) $    (187) $    (212) $    (193)
======================================================================
  Performance
   and other
   data:
    Average
     loans      $   1,148  $   1,096  $   1,053  $   1,049  $     961
    Average
     assets        28,991     28,050     26,524     25,663     20,953
    Average
     deposits      35,025     25,531     26,401     21,798     18,235
    Loan volume        96         67         20         94        105
    Employees at
     end of
     period         9,799      9,309      9,152      8,834      8,015

RECONCILING
 ADJUSTMENTS
  Condensed income
   statement(2):
   Net interest
    income
    (expense)(3)$    (293) $     115  $     114  $     113  $     113
   Provision
    (reversal of
    reserve) for
    loan and lease
    losses(4)        (281)         3        (10)       (23)        (8)
   Noninterest
    income
    (expense)(5)       31        (50)      (135)       (62)      (139)
----------------------------------------------------------------------
   Income (loss)
    before income
    taxes              19         62        (11)        74        (18)
   Income taxes
    (benefit)(6)      (13)        29         (9)        35         44
----------------------------------------------------------------------
    Net income
    (loss)      $      32  $      33  $      (2) $      39  $     (62)
======================================================================
  Performance and
   other data:
    Average
     loans(7)   $ (12,527) $  (1,550) $  (1,541) $  (1,556) $  (1,622)
    Average
     assets(7)(8) (10,983)    (1,727)    (1,765)    (1,801)    (1,888)

TOTAL
 CONSOLIDATED
  Condensed
   income
   statement:
    Net interest
     income     $   2,154  $   1,916  $   1,926  $   1,890  $   1,850
    Provision for
     loan and lease
     losses           121         52         31         16         37
    Noninterest
     income         1,593      1,374      1,267      1,408      1,217
    Noninterest
     expense        2,278      1,925      1,828      1,839      1,938
----------------------------------------------------------------------
    Income from
     continuing
     operations
     before income
     taxes          1,348      1,313      1,334      1,443      1,092
    Income taxes      483        492        490        541        424
----------------------------------------------------------------------
     Income from
      continuing
      operations      865        821        844        902        668
    Income from
     discontinued
     operations,
     net of taxes       -          -          -          -          -
----------------------------------------------------------------------
      Net income$     865  $     821  $     844  $     902  $     668
======================================================================
  Performance and
   other data:
    Efficiency
     ratio(1)       60.79%     58.52%     57.24%     55.77%     63.18%
    Average
     loans      $ 273,874  $ 262,763  $ 258,522  $ 245,627  $ 241,379
    Average
     assets       349,931    327,292    320,845    308,172    297,158
    Average
     deposits     196,799    188,320    183,521    175,185    173,873
    Loan volume    63,292     70,732     67,618     59,515     63,221
    Employees at
     end of
     period        60,798     56,214     54,377     52,488     52,579



                                                      Year Ended
----------------------------------------------------------------------
                                                   Dec. 31,   Dec. 31,
                                                     2005       2004
----------------------------------------------------------------------
CORPORATE SUPPORT/TREASURY AND OTHER
  Condensed income statement:
   Net interest expense                          $    (831) $    (869)
   Provision for loan and lease losses                   1          4
   Noninterest income (expense)                       (118)      (145)
   Noninterest expense                                 381        407
----------------------------------------------------------------------
   Loss from continuing operations before income
    taxes                                           (1,331)    (1,425)
   Income tax benefit                                 (536)      (569)
----------------------------------------------------------------------
    Loss from continuing operations                   (795)      (856)
   Income from discontinued operations, net of taxes     -        399
----------------------------------------------------------------------
       Net loss                                  $    (795) $    (457)
======================================================================
  Performance and other data:
   Average loans                                 $   1,088  $     889
   Average assets                                   27,319     25,753
   Average deposits                                 27,221     11,664
   Loan volume                                         278        261
   Employees at end of period                        9,799      8,015

RECONCILING ADJUSTMENTS
  Condensed income statement(2):
   Net interest income (expense)(3)              $      50  $     432
   Provision (reversal of reserve) for loan and
    lease losses(4)                                   (311)         -
   Noninterest income (expense)(5)                    (215)      (608)
----------------------------------------------------------------------
   Income (loss) before income taxes                   146       (176)
   Income taxes (benefit)(6)                            42        (12)
----------------------------------------------------------------------
      Net income (loss)                          $     104  $    (164)
======================================================================
  Performance and other data:
   Average loans(7)                              $  (4,316) $  (1,570)
   Average assets(7)(8)                             (4,088)    (1,796)

TOTAL CONSOLIDATED
  Condensed income statement:
   Net interest income                           $   7,886  $   7,116
   Provision for loan and lease losses                 220        209
   Noninterest income                                5,642      4,612
   Noninterest expense                               7,870      7,535
----------------------------------------------------------------------
   Income from continuing operations before income
    taxes                                            5,438      3,984
   Income taxes                                      2,006      1,505
----------------------------------------------------------------------
    Income from continuing operations                3,432      2,479
   Income from discontinued operations, net of taxes     -        399
----------------------------------------------------------------------
      Net income                                 $   3,432  $   2,878
======================================================================
  Performance and other data:
   Efficiency ratio(1)                               58.17%     64.25%
   Average loans                                 $ 260,281  $ 224,154
   Average assets                                  326,677    284,078
   Average deposits                                186,023    165,408
   Loan volume                                     261,157    266,733
   Employees at end of period                       60,798     52,579


(1) See note 1 on preceding table.

(2) See note 2 on preceding table.

(3) 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.

(4) 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.

(5) 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.

(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                        Year Ended
----------------------------------------------------------------------
    Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,  Dec. 31,  Dec. 31,
      2005     2005      2005     2005     2004      2005      2004
----------------------------------------------------------------------
    $ (200)  $ (177)   $ (224)  $ (245)  $ (266)   $ (211)   $ (226)
----------------------------------------------------------------------


WM-8

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

                                   Quarter Ended
-------------------------------------------------------
                                   Dec. 31, 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                  $  2,380   4.01% $   24
   Trading assets             10,330   7.13     185
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities             19,135   5.25     252
      Investment securities    4,316   4.75      51
   Loans held for sale(2)     46,306   5.79     673
   Loans held in
    portfolio(2):
      Loans secured by real
       estate:
         Home                111,126   5.23   1,452 (3)
         Specialty mortgage
          finance(4)          22,415   5.40     302
---------------------------- --------         ------
                Total home
                 loans       133,541   5.25   1,754
         Home equity loans
          and lines of
          credit              50,464   6.47     822
         Home
          construction(5)      2,008   6.35      32
         Multi-family         25,312   5.67     359
         Other real estate     4,953   6.57      82
---------------------------- --------         ------
                Total loans
                 secured by
                 real estate 216,278   5.63   3,049
      Consumer:
         Credit card           8,259  11.96     249
         Other                   654  10.79      18
      Commercial business      2,377   5.25      31
---------------------------- --------         ------
                Total loans
                 held in
                 portfolio   227,568   5.87   3,347
  Other(6)                     4,496   4.28      49
---------------------------- --------         ------
                Total
                 interest-
                 earning
                 assets      314,531   5.81   4,581
Noninterest-earning assets:
   Mortgage servicing rights   7,680
   Goodwill                    8,247
   Other assets               19,473
---------------------------- --------
         Total assets       $349,931
============================ ========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits    $ 43,302   2.23     243
      Savings and money
       market deposits        43,831   2.09     231
      Time deposits           74,300   3.77     710
---------------------------- --------         ------
                Total
                 interest-
                 bearing
                 deposits    161,433   2.90   1,184
   Federal funds purchased
    and commercial paper       8,236   4.07      85
   Securities sold under
    agreements to repurchase  15,330   4.09     160
   Advances from Federal
    Home Loan Banks           70,113   4.06     726
   Other                      24,715   4.38     272
---------------------------- --------         ------
                Total
                 interest-
                 bearing
                 liabilities 279,827   3.42   2,427
Noninterest-bearing sources:
   Noninterest-bearing
    deposits                  35,366
   Other liabilities           7,030
   Stockholders' equity       27,708
---------------------------- --------
         Total liabilities
          and stockholders'
          equity            $349,931
============================ ========
   Net interest spread and
    net interest income                2.39  $2,154
                                              ======
   Impact of noninterest-
    bearing sources                    0.38
   Net interest margin                 2.77


                                   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 assets              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 (3)
         Specialty mortgage
          finance(4)          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(5)      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:
         Credit card               -      -       -
         Other                   686  10.67      18
      Commercial business      2,557   4.74      31
---------------------------- --------         ------
                Total loans
                 held in
                 portfolio   213,016   5.36   2,862
  Other(6)                     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
------------------------------------------------------------------
                                               Dec. 31, 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           $    560   1.92% $     3
   Trading assets                           4,540   5.80       66
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities                          11,398   3.85      110
      Investment securities                 4,387   4.27       47
   Loans held for sale(2)                  33,083   4.74      393
   Loans held in
    portfolio(2):
      Loans secured by real
       estate:
         Home                             113,352   4.30    1,218
         Specialty mortgage
          finance(4)                       17,389   4.87      212
----------------------------              --------         -------
                Total home
                 loans                    130,741   4.37    1,430
         Home equity loans
          and lines of
          credit                           42,034   4.93      520
         Home
          construction(5)                   2,434   5.87       36
         Multi-family                      21,922   4.92      270
         Other real estate                  6,133   6.03       93
----------------------------              --------         -------
                Total loans
                 secured by
                 real estate              203,264   4.62    2,349
      Consumer:
         Credit card                            -      -        -
         Other                                813  10.20       21
      Commercial business                   4,219   4.78       51
----------------------------              --------         -------
                Total loans
                 held in
                 portfolio                208,296   4.64    2,421
  Other(6)                                  4,111   2.60       26
----------------------------              --------         -------
                Total
                 interest-
                 earning
                 assets                   266,375   4.59    3,066
Noninterest-earning assets:
   Mortgage servicing rights                5,928
   Goodwill                                 6,196
   Other assets                            18,659
----------------------------              --------
         Total assets                    $297,158
============================              ========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits                 $ 52,171   1.32      173
      Savings and money
       market deposits                     44,017   1.36      151
      Time deposits                        43,750   2.53      280
----------------------------              --------         -------
                Total
                 interest-
                 bearing
                 deposits                 139,938   1.71      604
   Federal funds purchased
    and commercial paper                    4,828   1.98       24
   Securities sold under
    agreements to repurchase               13,528   2.09       72
   Advances from Federal
    Home Loan Banks                        63,053   2.34      376
   Other                                   15,164   3.70      140
----------------------------              --------         -------
                Total
                 interest-
                 bearing
                 liabilities              236,511   2.03    1,216
Noninterest-bearing sources:
   Noninterest-bearing
    deposits                               33,935
   Other liabilities                        5,687
   Stockholders' equity                    21,025
----------------------------              --------
         Total liabilities
          and stockholders'
          equity                         $297,158
============================              ========
   Net interest spread and
    net interest income                             2.56  $ 1,850
                                                           =======
   Impact of noninterest-
    bearing sources                                 0.23
   Net interest margin                              2.79

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

(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) For the three months ended December 31, 2005 and September 30,
    2005, deferred interest income resulting from negative
    amortization within the Option ARM portfolio totaled $107 million
    and $72 million.

(4) Represents purchased subprime home loan portfolios and subprime
    home loans originated by Long Beach Mortgage Company and held in
    its investment portfolio.

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

(6) Interest-earning assets in nonaccrual status and related income,
    if any, are included within this category.



WM-9

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

                              Year Ended
-------------------------------------------------
                             Dec. 31, 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            $  2,154   3.42 % $   74
   Trading assets        7,217   6.50      469
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities       16,347   4.80      784
      Investment
       securities        4,506   4.74      214
   Loans held for
    sale(2)             44,847   5.31    2,382
   Loans held in
    portfolio(2):
    Loans secured by
     real estate:
     Home              110,326   4.90    5,403 (3)
     Specialty
      mortgage
      finance(4)        20,555   5.19    1,066
---------------------- --------         -------
         Total home
          loans        130,881   4.94    6,469
     Home equity loans
      and lines of
      credit            47,915   5.93    2,841
     Home
      construction(5)    2,074   6.22      129
     Multi-family       24,070   5.31    1,279
     Other real estate   5,091   6.56      334
---------------------- --------         -------
         Total loans
          secured by
          real estate  210,031   5.26   11,052
    Consumer:
     Credit card         2,082  11.96      249
     Other                 707  10.66       75
    Commercial
     business            2,614   5.00      131
---------------------- --------         -------
         Total loans
          held in
          portfolio    215,434   5.34   11,507
  Other(6)               4,367   3.63      158
---------------------- --------         -------
         Total
          interest-
          earning
          assets       294,872   5.29   15,588
Noninterest-earning
 assets:
   Mortgage servicing
    rights               6,597
   Goodwill              6,712
   Other assets         18,496
---------------------- --------
     Total assets     $326,677
====================== ========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking
       deposits       $ 46,524   1.95      906
      Savings and
       money market
       deposits         42,555   1.76      750
      Time deposits     62,175   3.33    2,072
---------------------- --------         -------
           Total
            interest-
            bearing
            deposits   151,254   2.46    3,728
   Federal funds
    purchased and
    commercial paper     5,314   3.56      190
   Securities sold
    under agreements
    to repurchase       15,365   3.40      523
   Advances from
    Federal Home Loan
    Banks               68,713   3.46    2,377
   Other                21,603   4.09      884
---------------------- --------         -------
          Total
           interest-
           bearing
           liabilities 262,249   2.94    7,702
Noninterest-bearing
 sources:
   Noninterest-bearing
    deposits            34,769
   Other liabilities     6,192
   Stockholders'
    equity              23,467
---------------------- --------
       Total
        liabilities
        and
        stockholders'
        equity        $326,677
====================== ========
   Net interest spread
    and net interest
    income                       2.35  $ 7,886
                                        =======
   Impact of
    noninterest-
    bearing sources              0.32
   Net interest margin           2.67


                             Year Ended
-----------------------------------------------
                            Dec. 31, 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            $    884   1.42 % $   13
   Trading assets        2,368   6.39      151
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities       10,255   3.99      409
      Investment
       securities       10,732   3.30      355
   Loans held for
    sale(2)             29,721   4.95    1,472
   Loans held in
    portfolio(2):
    Loans secured by
     real estate:
     Home              107,518   4.21    4,529
     Specialty
      mortgage
      finance(4)        15,767   4.84      763
---------------------- --------         -------
         Total home
          loans        123,285   4.29    5,292
     Home equity loans
      and lines of
      credit            35,859   4.69    1,683
     Home
      construction(5)    2,489   5.50      137
     Multi-family       21,090   4.96    1,046
     Other real estate   6,396   5.94      380
---------------------- --------         -------
         Total loans
          secured by
          real estate  189,119   4.51    8,538
    Consumer:
     Credit card             -      -        -
     Other                 899  10.11       91
    Commercial
     business            4,415   4.43      196
---------------------- --------         -------
         Total loans
          held in
          portfolio    194,433   4.54    8,825
  Other(6)               4,108   3.05      125
---------------------- --------         -------
         Total
          interest-
          earning
          assets       252,501   4.50   11,350
Noninterest-earning
 assets:
   Mortgage servicing
    rights                6,406
   Goodwill               6,196
   Other assets          18,975
----------------------  --------
     Total assets      $284,078
======================  ========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking
       deposits       $ 59,826   1.28      766
      Savings and
       money market
       deposits         35,927   1.11      399
      Time deposits     35,917   2.44      878
---------------------- --------         -------
           Total
            interest-
            bearing
            deposits   131,670   1.55    2,043
   Federal funds
    purchased and
    commercial paper     3,522   1.50       53
   Securities sold
    under agreements
    to repurchase       16,660   2.26      377
   Advances from
    Federal Home Loan
    Banks               58,622   2.16    1,268
   Other                13,724   3.59      493
---------------------- --------         -------
          Total
           interest-
           bearing
           liabilities 224,198   1.89    4,234
Noninterest-bearing
 sources:
   Noninterest-bearing
    deposits             33,738
   Other liabilities      5,614
   Stockholders'
    equity               20,528
----------------------  --------
       Total
        liabilities
        and
        stockholders'
        equity         $284,078
======================  ========
   Net interest spread
    and net interest
    income                       2.61  $ 7,116
                                        =======
   Impact of
    noninterest-
    bearing sources               0.21
   Net interest margin            2.82


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

(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) For the year ended December 31, 2005, deferred interest income
    resulting from negative amortization within the Option ARM
    portfolio totaled $234 million.

(4) Represents purchased subprime home loan portfolios and subprime
    home loans originated by Long Beach Mortgage Company and held in
    its investment portfolio.

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

(6) Interest-earning assets in nonaccrual status and related income,
    if any, are included within this category.


WM-10

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

                                         Change from
                                  September 30, 2005
                                                  to    Dec.    Sept.
                                            December     31,      30,
                                            31, 2005    2005     2005
----------------------------------------------------------------------
Deposits
   Retail deposits:
      Checking deposits:
         Noninterest bearing                   $130  $20,752  $20,622
         Interest bearing                    (2,041)  42,253   44,294
----------------------------------------------------------------------
            Total checking deposits          (1,911)  63,005   64,916
      Savings and money market deposits       1,085   36,664   35,579
      Time deposits(1)                         (117)  40,359   40,476
----------------------------------------------------------------------
            Total retail deposits              (943) 140,028  140,971
      Commercial business deposits            1,701   11,459    9,758
      Wholesale deposits                      5,383   29,917   24,534
      Custodial and escrow deposits(2)       (3,386)  11,763   15,149
----------------------------------------------------------------------
            Total deposits                   $2,755 $193,167 $190,412
======================================================================

                                          June 30,  Mar. 31,  Dec. 31,
                                             2005      2005      2004
----------------------------------------------------------------------
Deposits
   Retail deposits:
      Checking deposits:
         Noninterest bearing              $19,093   $18,599   $17,463
         Interest bearing                  46,031    48,988    51,099
----------------------------------------------------------------------
            Total checking deposits        65,124    67,587    68,562
      Savings and money market deposits    34,514    35,184    36,836
      Time deposits(1)                     36,162    31,819    27,268
----------------------------------------------------------------------
            Total retail deposits         135,800   134,590   132,666
      Commercial business deposits          9,648     8,447     7,611
      Wholesale deposits                   23,638    24,969    18,448
      Custodial and escrow deposits(2)     15,231    15,625    14,933
----------------------------------------------------------------------
            Total deposits               $184,317  $183,631  $173,658
======================================================================

(1) Weighted average remaining maturity of time deposits was 11 months
    at December 31, 2005, 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.

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


                                        Dec. 31,  Sept. 30,   June 30,
                                           2005       2005       2005
----------------------------------------------------------------------
Retail Deposit Accounts(1)
     Checking                         9,883,507  9,680,317  9,427,222
     Money market and savings         5,694,102  5,560,060  5,395,091
----------------------------------------------------------------------
            Total transaction
             accounts, end of
             period(2)               15,577,609 15,240,377 14,822,313
======================================================================

     Net checking account changes       203,190    253,095    244,028
     Net total transaction account
      changes                           337,232    418,064    388,212



                                                   Mar. 31,   Dec. 31,
                                                      2005       2004
----------------------------------------------------------------------
Retail Deposit Accounts(1)
     Checking                                    9,183,194  8,981,060
     Money market and savings                    5,250,907  5,110,674
----------------------------------------------------------------------
            Total transaction accounts, end of
             period(2)                          14,434,101 14,091,734
======================================================================

     Net checking account changes                  202,134    106,237
     Net total transaction account changes         342,367    186,027


(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.


                             Dec.    Sept.     June     Mar.     Dec.
                              31,      30,      30,      31,      31,
                             2005     2005     2005     2005     2004
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
 period                     2,051    1,997    1,968    1,939    1,872
     Net stores opened
      during the quarter       89(1)    54       29       29       67
----------------------------------------------------------------------
Stores, end of period       2,140    2,051    1,997    1,968    1,939
======================================================================

(1) Includes two retail stores acquired through the merger with
    Providian Financial Corporation. These stores are not considered
    to be an integral component of Washington Mutual's retail banking
    franchise.

                             Dec.    Sept.     June     Mar.     Dec.
                              31,      30,      30,      31,      31,
                             2005     2005     2005     2005     2004
----------------------------------------------------------------------
Assets Under Management   $25,310  $24,546  $23,348  $22,454  $22,196
======================================================================


WM-11

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

                                           Quarter Ended
----------------------------------------------------------------------
                              Dec.    Sept.     June     Mar.     Dec.
                               31,      30,      30,      31,      31,
                              2005     2005     2005     2005     2004
----------------------------------------------------------------------
Loan Volume
   Home loans:
      Adjustable rate     $20,266  $26,607  $25,293  $22,947  $26,141
      Fixed rate           20,494   21,122   19,355   17,147   15,448
      Specialty mortgage
       finance(1)           9,669    8,413    8,753    7,656    9,362
----------------------------------------------------------------------
         Total home loan
          volume           50,429   56,142   53,401   47,750   50,951
   Home equity loans and
    lines of credit         9,118   10,828   10,888    8,887    9,307
   Home construction
    loans(2)                  479      370      258      245      293
   Multi-family             2,595    2,580    2,459    2,121    2,240
   Other real estate          419      465      371      345      257
----------------------------------------------------------------------
         Total loans
          secured by real
          estate           63,040   70,385   67,377   59,348   63,048
   Consumer(3)                 79      182       82       43       77
   Commercial business        173      165      159      124       96
----------------------------------------------------------------------
        Total loan volume $63,292  $70,732  $67,618  $59,515  $63,221
======================================================================
Loan Volume by Channel
   Retail                 $27,676  $32,614  $30,565  $25,569  $28,766
   Wholesale               17,190   20,000   20,323   16,716   18,441
   Purchased/correspondent 18,426   18,118   16,730   17,230   16,014
----------------------------------------------------------------------
         Total loan volume
          by channel      $63,292  $70,732  $67,618  $59,515  $63,221
======================================================================
Refinancing Activity(4)
   Home loan refinancing  $27,435  $29,084  $27,583  $28,641  $30,752
   Home equity loans and
    lines of credit and
    consumer                  219      245      475      392      336
   Home construction loans     12       17       13       10       13
   Multi-family and other
    real estate               831      738      700      660      565
----------------------------------------------------------------------
        Total refinancing $28,497  $30,084  $28,771  $29,703  $31,666
======================================================================
Home Loan Volume
   Short-term adjustable-
    rate loans(5):
      Option ARMs         $11,699  $16,353  $19,564  $15,644  $18,898
      Other ARMs            1,222    1,237      367      974      972
----------------------------------------------------------------------
         Total short-term
          adjustable-rate
          loans            12,921   17,590   19,931   16,618   19,870
   Medium-term adjustable-
    rate loans(6)          15,447   16,454   13,388   13,409   14,890
   Fixed-rate loans        22,061   22,098   20,082   17,723   16,191
----------------------------------------------------------------------
         Total home loan
          volume          $50,429  $56,142  $53,401  $47,750  $50,951
======================================================================

 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 $304 million, $466 million, $477 million, $563
 million and $785 million for the quarters ended December 31, 2005,
 September 30, 2005, June 30, 2005, March 31, 2005 and December 31,
 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) Excludes credit card loan volume.

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

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

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


WM-12

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

                                                        Year Ended
----------------------------------------------------------------------
                                                     Dec. 31, Dec. 31,
                                                       2005     2004
----------------------------------------------------------------------
Loan Volume
   Home loans:
      Adjustable rate                                $95,114 $103,305
      Fixed rate                                      78,118   77,723
      Specialty mortgage finance(1)                   34,490   31,334
----------------------------------------------------------------------
         Total home loan volume                      207,722  212,362
   Home equity loans and lines of credit              39,721   39,822
   Home construction loans(2)                          1,352    2,382
   Multi-family                                        9,755    8,161
   Other real estate                                   1,599    1,740
----------------------------------------------------------------------
         Total loans secured by real estate          260,149  264,467
   Consumer(3)                                           387      336
   Commercial business                                   621    1,930
----------------------------------------------------------------------
         Total loan volume                          $261,157 $266,733
======================================================================
Loan Volume by Channel
   Retail                                           $116,425 $124,897
   Wholesale                                          74,229   69,474
   Purchased/correspondent                            70,503   72,362
----------------------------------------------------------------------
         Total loan volume by channel               $261,157 $266,733
======================================================================
Refinancing Activity(4)
   Home loan refinancing                            $112,743 $128,020
   Home equity loans and lines of credit and
    consumer                                           1,331    2,950
   Home construction loans                                53       47
   Multi-family and other real estate                  2,928    2,644
----------------------------------------------------------------------
         Total refinancing                          $117,055 $133,661
======================================================================
Home Loan Volume
   Short-term adjustable-rate loans(5):
      Option ARMs                                    $63,260  $67,485
      Other ARMs                                       3,800    2,671
----------------------------------------------------------------------
         Total short-term adjustable-rate loans       67,060   70,156
   Medium-term adjustable-rate loans(6)               58,698   58,107
   Fixed-rate loans                                   81,964   84,099
----------------------------------------------------------------------
         Total home loan volume                     $207,722 $212,362
======================================================================

 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 $1.81 billion and $3.42 billion for the years ended
 December 31, 2005 and December 31, 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) Excludes credit card loan volume.

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

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

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


WM-13

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

                                           Change
                                             from
                                        September
                                         30, 2005
                                               to    Dec.       Sept.
                                         December     31,         30,
                                         31, 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                        $2,328  $70,191 (2) $67,863
       Other ARMs                          1,710   14,666      12,956
----------------------------------------------------------------------
          Total short-term adjustable-
           rate loans                      4,038   84,857      80,819
     Medium-term adjustable-rate
      loans(3)                            (2,099)  41,511      43,610
     Fixed-rate loans                        306    8,922       8,616
----------------------------------------------------------------------
                Total home loans(4)        2,245  135,290     133,045
         Home equity loans and lines of
          credit                             785   50,851      50,066
         Home construction(5)                 18    2,037       2,019
         Multi-family                        587   25,601      25,014
         Other real estate                   106    5,035       4,929
----------------------------------------------------------------------
               Total loans secured by
                real estate                3,741  218,814     215,073
      Consumer:
         Credit card                       8,043    8,043           -
         Other                               (31)     638         669
      Commercial business                   (315)   2,137       2,452
----------------------------------------------------------------------
               Total loans held in
                portfolio(6)              11,438  229,632     218,194
   Less: allowance for loan and lease
    losses                                  (431)  (1,695)     (1,264)
----------------------------------------------------------------------
               Total net loans held in
                portfolio                 11,007  227,937     216,930
   Loans held for sale(7)                (14,436)  33,582      48,018
----------------------------------------------------------------------
               Total net loans           $(3,429)$261,519    $264,948
======================================================================


                                               June     Mar.     Dec.
                                                30,      31,      31,
                                               2005     2005     2004
----------------------------------------------------------------------
Loans by Property Type
   Loans held in portfolio:
      Loans secured by real estate:
         Home:
     Short-term adjustable-rate loans(1):
       Option ARMs                          $66,533  $67,938  $66,310
       Other ARMs                            10,903   10,462    9,065
----------------------------------------------------------------------
          Total short-term adjustable-rate
           loans                             77,436   78,400   75,375
     Medium-term adjustable-rate loans(3)    43,499   46,789   45,197
     Fixed-rate loans                         8,638    8,794    8,562
----------------------------------------------------------------------
                Total home loans(4)         129,573  133,983  129,134
         Home equity loans and lines of
          credit                             48,449   45,849   43,650
         Home construction(5)                 2,037    2,170    2,344
         Multi-family                        24,240   23,247   22,282
         Other real estate                    4,915    5,311    5,664
----------------------------------------------------------------------
               Total loans secured by real
                estate                      209,214  210,560  203,074
      Consumer:
         Credit card                              -        -        -
         Other                                  703      747      792
      Commercial business                     2,820    2,807    3,205
----------------------------------------------------------------------
               Total loans held in
                portfolio(6)                212,737  214,114  207,071
   Less: allowance for loan and lease
    losses                                   (1,243)  (1,280)  (1,301)
----------------------------------------------------------------------
               Total net loans held in
                portfolio                   211,494  212,834  205,770
   Loans held for sale(7)                    51,122   41,197   42,743
----------------------------------------------------------------------
               Total net loans             $262,616 $254,031 $248,513
======================================================================

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

(2) At December 31, 2005, the total amount by which the unpaid
    principal balance ("UPB") of Option ARM loans exceeded their
    original principal amount was $157 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 home loans and subprime home loans originated
    by Long Beach Mortgage Company and held in its investment
    portfolio. Specialty mortgage finance loans were $21.15 billion,
    $21.16 billion, $20.17 billion, $21.54 billion and $19.18 billion
    at December 31, 2005, September 30, 2005, June 30, 2005, March 31,
    2005 and December 31, 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) Includes net unamortized deferred loan origination costs of $1.53
    billion, $1.47 billion, $1.39 billion, $1.36 billion and $1.25
    billion at December 31, 2005, September 30, 2005, June 30, 2005,
    March 31, 2005 and December 31, 2004.

(7) Fair value of loans held for sale was $33.71 billion, $48.14
    billion, $51.39 billion, $41.38 billion and $43.02 billion as of
    December 31, 2005, September 30, 2005, June 30, 2005, March 31,
    2005 and December 31, 2004.


WM-14

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

                                              Change
                                                from
                                           Sept. 30,          Weighted
                                                2005    Dec.  Average
                                             to Dec.     31,  Coupon
                                            31, 2005    2005  Rate
----------------------------------------------------------------------
Selected Loans Secured by Real Estate and
 MBS
   Home loans held in portfolio:
       Short-term adjustable-rate
        loans(1):
           Option ARMs                       $2,328   $70,191    5.87%
           Other ARMs                         1,710    14,666    6.44
----------------------------------------------------------------------
                Total short-term
                 adjustable-rate loans        4,038    84,857    5.97
       Medium-term adjustable-rate
        loans(2)                             (2,099)   41,511    5.58
       Fixed-rate loans                         306     8,922    6.56
----------------------------------------------------------------------
                Total home loans held in
                 portfolio                    2,245   135,290    5.89
   Home equity loans and lines of credit:
       Short-term (Prime-based or
        treasury-based)(1)                     (216)   37,112    7.26
       Fixed-rate loans                       1,001    13,739    6.56
----------------------------------------------------------------------
                Total home equity loans
                 and lines of credit            785    50,851    7.07
   Multi-family loans held in portfolio:
       Short-term adjustable-rate
        loans(1):
           Option ARMs                           80     9,529    5.74
           Other ARMs                           (45)    6,406    5.92
----------------------------------------------------------------------
                Total short-term
                 adjustable-rate loans           35    15,935    5.81
       Medium-term adjustable-rate
        loans(2)                                593     8,118    5.29
       Fixed-rate loans                         (41)    1,548    6.59
----------------------------------------------------------------------
                Total multi-family loans
                 held in portfolio              587    25,601    5.69
----------------------------------------------------------------------
                Total selected loans held
                 in portfolio secured by
                 real estate(3)               3,617   211,742    6.15
   Loans held for sale(4)                   (14,460)   33,428    6.15
----------------------------------------------------------------------
                Total selected loans
                 secured by real estate     (10,843)  245,170    6.15
   MBS(5):
       Short-term adjustable-rate MBS(1)     (2,324)    7,965    4.88
       Medium-term adjustable-rate MBS(2)     1,848     4,504    4.97
       Fixed-rate MBS                         3,963     8,179    5.11
----------------------------------------------------------------------
                Total MBS(6)                  3,487    20,648    4.99
----------------------------------------------------------------------
                Total selected loans
                 secured by real estate
                 and MBS                    $(7,356) $265,818    6.06
======================================================================

                                              Weighted        Weighted
                                      Sept.   Average   Dec.  Average
                                        30,   Coupon     31,  Coupon
                                       2005   Rate      2004  Rate
----------------------------------------------------------------------
Selected Loans Secured by Real
 Estate and MBS
   Home loans held in portfolio:
       Short-term adjustable-rate
        loans(1):
           Option ARMs               $67,863    5.44% $66,310    4.26%
           Other ARMs                 12,956    6.27    9,065    6.57
----------------------------------------------------------------------
                Total short-term
                 adjustable-rate
                 loans                80,819    5.57   75,375    4.55
       Medium-term adjustable-rate
        loans(2)                      43,610    5.58   45,197    5.43
       Fixed-rate loans                8,616    6.60    8,562    6.75
----------------------------------------------------------------------
                Total home loans
                 held in portfolio   133,045    5.64  129,134    5.01
   Home equity loans and lines of
    credit:
       Short-term (Prime-based or
        treasury-based)(1)            37,328    6.76   33,826    5.17
       Fixed-rate loans               12,738    6.45    9,824    6.34
----------------------------------------------------------------------
                Total home equity
                 loans and lines of
                 credit               50,066    6.68   43,650    5.43
   Multi-family loans held in
    portfolio:
       Short-term adjustable-rate
        loans(1):
           Option ARMs                 9,449    5.30    7,645    4.27
           Other ARMs                  6,451    5.49    5,617    4.51
----------------------------------------------------------------------
                Total short-term
                 adjustable-rate
                 loans                15,900    5.38   13,262    4.37
       Medium-term adjustable-rate
        loans(2)                       7,525    5.26    7,381    5.30
       Fixed-rate loans                1,589    6.68    1,639    6.88
----------------------------------------------------------------------
                Total multi-family
                 loans held in
                 portfolio            25,014    5.42   22,282    4.86
----------------------------------------------------------------------
                Total selected loans
                 held in portfolio
                 secured by real
                 estate(3)           208,125    5.87  195,066    5.09
   Loans held for sale(4)             47,888    5.34   42,599    4.70
----------------------------------------------------------------------
                Total selected loans
                 secured by real
                 estate              256,013    5.77  237,665    5.02
   MBS(5):
       Short-term adjustable-rate
        MBS(1)                        10,289    4.58    9,924    3.49
       Medium-term adjustable-rate
        MBS(2)                         2,656    5.02      702    4.25
       Fixed-rate MBS                  4,216    5.25    3,928    5.32
----------------------------------------------------------------------
                Total MBS(6)          17,161    4.81   14,554    4.02
----------------------------------------------------------------------
                Total selected loans
                 secured by real
                 estate and MBS     $273,174    5.71 $252,219    4.96
======================================================================

(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 December 31, 2005, September 30, 2005 and December 31, 2004,
    the adjustable-rate loans with lifetime caps were $184.87 billion,
    $182.35 billion and $171.44 billion with a lifetime weighted
    average cap rate of 12.25%, 12.30% and 12.31%.

(4) Excludes credit card and student loans.

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

(6) At December 31, 2005, September 30, 2005 and December 31, 2004,
    the adjustable-rate MBS with lifetime caps were $12.46 billion,
    $12.74 billion and $10.58 billion with a lifetime weighted average
    cap rate of 10.31%, 10.19% and 10.23%.


                                                Sept. 30,     Dec. 31,
                                                     2005         2004
                                              to Dec. 31,  to Dec. 31,
                                                     2005         2005
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
    Balance, beginning of period                  $48,018     $42,743
       Mortgage loans originated, purchased
        and transferred from held in portfolio     39,525     167,710
       Mortgage loans transferred to held in
        portfolio                                  (2,324)     (8,690)
       Mortgage loans sold and other              (52,162)   (168,691)
        Net change in consumer loans held for
         sale                                         525         510
----------------------------------------------------------------------
    Balance, end of period                        $33,582     $33,582
======================================================================

Rollforward of Home Loans Held in Portfolio
    Balance, beginning of period                 $133,045    $129,134
        Loans originated, purchased and
         transferred from held for sale            14,743      57,298
        Loan payments, transferred to held for
         sale and other                           (12,498)    (51,142)
----------------------------------------------------------------------
    Balance, end of period                       $135,290    $135,290
======================================================================


WM-15

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

                                                       Quarter Ended
----------------------------------------------------------------------
Detail of Revenue from Sales and Servicing of Home   Dec. Sept.  June
 Mortgage Loans                                       31,   30,   30,
                                                     2005  2005  2005
----------------------------------------------------------------------
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                       $213  $206  $250
   Revaluation gain (loss) from derivatives            25    73   (79)
----------------------------------------------------------------------
        Gain from home mortgage loans and originated
         mortgage-backed securities, net of hedging
         and risk management instruments              238   279   171
----------------------------------------------------------------------
Home mortgage loan servicing revenue (expense):
   Home mortgage loan servicing revenue, net(1)       547   538   527
   Amortization of MSR                               (482) (555) (564)
   MSR valuation adjustments(2)                        91   412   (77)
   Revaluation gain from derivatives                   27    40    61
----------------------------------------------------------------------
        Home mortgage loan servicing revenue
         (expense), net of  hedging and
         derivative risk management instruments       183   435   (53)
----------------------------------------------------------------------
        Total revenue from sales and servicing of
         home mortgage loans                          421   714   118
----------------------------------------------------------------------
Impact of other MSR risk management instruments:
   Revaluation gain (loss) from certain trading
    securities                                       (157) (217)  259
   Gain (loss) from certain available-for-sale
    securities                                          -     -    26
----------------------------------------------------------------------
        Total impact of other MSR risk management
         instruments                                 (157) (217)  285
----------------------------------------------------------------------
             Total revenue from sales and servicing of
              home mortgage loans and all
               MSR risk management instruments       $264  $497  $403
======================================================================

Detail of Revenue from Sales and Servicing of               Mar. Dec.
 Home Mortgage Loans                                         31,  31,
                                                            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                                       $181 $157
   Revaluation gain (loss) from derivatives                   80   25
----------------------------------------------------------------------
        Gain from home mortgage loans and originated
         mortgage-backed securities, net of hedging
         and risk management instruments                     261  182
----------------------------------------------------------------------
Home mortgage loan servicing revenue (expense):
   Home mortgage loan servicing revenue, net(1)              512  479
   Amortization of MSR                                      (570)(636)
   MSR valuation adjustments(2)                              539  257
   Revaluation gain from derivatives                          35   70
----------------------------------------------------------------------
        Home mortgage loan servicing revenue (expense), net
         of  hedging and derivative risk management
         instruments                                         516  170
----------------------------------------------------------------------
        Total revenue from sales and servicing of home
         mortgage loans                                      777  352
----------------------------------------------------------------------
Impact of other MSR risk management instruments:
   Revaluation gain (loss) from certain trading securities  (109)  36
   Gain (loss) from certain available-for-sale securities    (44)  (4)
----------------------------------------------------------------------
        Total impact of other MSR risk management
         instruments                                        (153)  32
----------------------------------------------------------------------
             Total revenue from sales and servicing of home
              mortgage loans and all MSR risk management
              instruments                                   $624 $384
======================================================================


                                                          Year Ended
----------------------------------------------------------------------
Detail of Revenue from Sales and Servicing of Home        Dec.   Dec.
 Mortgage Loans                                            31,    31,
                                                          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                            $850   $651
   Revaluation gain from derivatives                        99     80
----------------------------------------------------------------------
        Gain from home mortgage loans and originated
         mortgage-backed securities, net of hedging and
         risk management instruments                       949    731
----------------------------------------------------------------------
Home mortgage loan servicing revenue (expense):
   Home mortgage loan servicing revenue, net(1)          2,123  1,943
   Amortization of MSR                                  (2,170)(2,521)
   MSR valuation adjustments(2)                            965   (235)
   Revaluation gain from derivatives                       163  1,469
----------------------------------------------------------------------
        Home mortgage loan servicing revenue, net of
         hedging and derivative risk management
         instruments                                     1,081    656
----------------------------------------------------------------------
        Total revenue from sales and servicing of home
         mortgage loans                                  2,030  1,387
----------------------------------------------------------------------
Impact of other MSR risk management instruments:
   Revaluation gain (loss) from certain trading
    securities                                            (223)    81
   Gain (loss) from certain available-for-sale
    securities                                             (18)     1
----------------------------------------------------------------------
        Total impact of other MSR risk management
         instruments                                      (241)    82
----------------------------------------------------------------------
             Total revenue from sales and servicing of
              home mortgage loans and all
               MSR risk management instruments          $1,789 $1,469
======================================================================

(1) Includes late charges, prepayment fees and loan pool expenses
    (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
----------------------------------------------------------------------
                                               Dec.    Sept.     June
                                                31,     30,       30,
                                               2005    2005      2005
----------------------------------------------------------------------
MSR Risk Management and Amortization:
   Statement No. 133 MSR accounting
    valuation adjustments                    $ 419  $   849  $  (813)
   Amortization of MSR                        (482)    (555)    (564)
   (Impairment) reversal                       353      413     (250)
----------------------------------------------------------------------
        Net change in MSR valuation            290      707   (1,627)
Gain (loss) on MSR hedging and risk
 management instruments:
   Statement No. 133 fair value hedging
    adjustments                               (681)    (850)     986
   Revaluation gain from derivatives            27       40       61
   Revaluation gain (loss) from certain
    trading securities                        (157)    (217)     259
   Gain (loss) from certain available-for-
    sale securities                              -        -       26
----------------------------------------------------------------------
        Total gain (loss) on MSR hedging
         and risk management instruments      (811)  (1,027)   1,332
----------------------------------------------------------------------
              Total MSR risk management and
               amortization                  $(521) $  (320) $  (295)
======================================================================



                                                          Mar.   Dec.
                                                           31,    31,
                                                          2005   2004
----------------------------------------------------------------------
MSR Risk Management and Amortization:
   Statement No. 133 MSR accounting valuation
    adjustments                                          $ 545  $(123)
   Amortization of MSR                                    (570)  (636)
   (Impairment) reversal                                   427    179
----------------------------------------------------------------------
        Net change in MSR valuation                        402   (580)
Gain (loss) on MSR hedging and risk management
 instruments:
   Statement No. 133 fair value hedging adjustments       (433)   201
   Revaluation gain from derivatives                        35     70
   Revaluation gain (loss) from certain trading
    securities                                            (109)    36
   Gain (loss) from certain available-for-sale
    securities                                             (44)    (4)
----------------------------------------------------------------------
        Total gain (loss) on MSR hedging and risk
         management instruments                           (551)   303
----------------------------------------------------------------------
            Total MSR risk management and amortization   $(149) $(277)
======================================================================


                                                        Year Ended
----------------------------------------------------------------------
                                                       Dec.     Dec.
                                                        31,      31,
                                                       2005     2004
----------------------------------------------------------------------
MSR Risk Management and Amortization:
   Statement No. 133 MSR accounting valuation
    adjustments                                      $   999  $   699
   Amortization of MSR                                (2,170)  (2,521)
   (Impairment) reversal                                 943     (466)
----------------------------------------------------------------------
        Net change in MSR valuation                     (228)  (2,288)
Gain (loss) on MSR hedging and risk management
 instruments:
   Statement No. 133 fair value hedging adjustments     (977)    (468)
   Revaluation gain from derivatives                     163    1,469
   Revaluation gain (loss) from certain trading
    securities                                          (223)      81
   Gain (loss) from certain available-for-sale
    securities                                           (18)       1
----------------------------------------------------------------------
        Total gain (loss) on MSR hedging and risk
         management instruments                       (1,055)   1,083
----------------------------------------------------------------------
              Total MSR risk management and
               amortization                          $(1,283) $(1,205)
======================================================================


WM-17

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


                                                Quarter Ended
---------------------------------------------------------------------
                                            Dec.      Sept.     June
                                             31,       30,       30,
                                            2005      2005      2005
----------------------------------------------------------------------
Rollforward of Mortgage Servicing
 Rights(1)(2)
   Balance, beginning of period          $  7,042  $  5,730  $  6,802
      Home loans:
         Additions                            703       605       555
         Amortization                        (482)     (555)     (564)
         (Impairment) reversal                353       413      (250)
         Statement No. 133 MSR
          accounting valuation
          adjustments                         419       849      (813)
      Net change in commercial real
       estate MSR                               6         -         -
----------------------------------------------------------------------
   Balance, end of period(3)             $  8,041  $  7,042  $  5,730
======================================================================
Rollforward of Valuation Allowance for
 MSR Impairment
   Balance, beginning of period          $  1,312  $  1,746  $  1,513
      Impairment (reversal)                  (353)     (413)      250
      Other-than-temporary impairment         (43)      (18)      (11)
      Other                                    (2)       (3)       (6)
----------------------------------------------------------------------
   Balance, end of period                $    914  $  1,312  $  1,746
======================================================================
Rollforward of Mortgage Loans Serviced
 for Others
   Balance, beginning of period          $547,578  $543,324  $542,797
      Home loans:
         Additions                         51,642    43,418    36,174
         Loan payments and other          (37,245)  (39,005)  (35,689)
      Net change in commercial real
       estate loans serviced for others     1,233      (159)       42
----------------------------------------------------------------------
   Balance, end of period                $563,208  $547,578  $543,324
======================================================================

                                           Dec.      Sept.     June
                                            31,       30,       30,
                                           2005      2005      2005
----------------------------------------------------------------------
Total Servicing Portfolio
      Mortgage loans serviced for
       others                            $563,208  $547,578  $543,324
      Consumer loans serviced for
       others                              11,014        -         -
      Servicing on retained MBS without
       MSR                                  1,404     1,487     1,592
      Servicing on owned loans            242,114   245,165   243,494
      Subservicing portfolio                  629       749       825
----------------------------------------------------------------------
   Total servicing portfolio             $818,369  $794,979  $789,235
======================================================================

                                                      Mar.      Dec.
                                                       31,       31,
                                                      2005      2004
----------------------------------------------------------------------
Rollforward of Mortgage Servicing Rights(1)(2)
   Balance, beginning of period                    $  5,906  $  6,112
      Home loans:
         Additions                                      490       372
         Amortization                                  (570)     (636)
         (Impairment) reversal                          427       179
         Statement No. 133 MSR accounting
          valuation adjustments                         545      (123)
      Net change in commercial real estate MSR            4         2
----------------------------------------------------------------------
   Balance, end of period(3)                       $  6,802  $  5,906
======================================================================
Rollforward of Valuation Allowance for MSR
 Impairment
   Balance, beginning of period                    $  1,981  $  2,653
      Impairment (reversal)                            (427)     (179)
      Other-than-temporary impairment                   (34)     (486)
      Other                                              (7)       (7)
----------------------------------------------------------------------
   Balance, end of period                          $  1,513  $  1,981
======================================================================
Rollforward of Mortgage Loans Serviced
 for Others
   Balance, beginning of period                    $540,392  $551,245
      Home loans:
         Additions                                   34,533    27,218
         Loan payments and other                    (32,861)  (38,529)
      Net change in commercial real estate loans
       serviced for others                              733       458
----------------------------------------------------------------------
   Balance, end of period                          $542,797  $540,392
======================================================================

                                                      Mar.      Dec.
                                                       31,       31,
                                                      2005      2004
----------------------------------------------------------------------
Total Servicing Portfolio
      Mortgage loans serviced
       for others                                  $542,797  $540,392
      Consumer loans serviced for others                 -         -
      Servicing on retained MBS without MSR           1,702     1,808
      Servicing on owned loans                      233,738   229,879
      Subservicing portfolio                            421       461
----------------------------------------------------------------------
   Total servicing portfolio                       $778,658  $772,540
======================================================================

                                                  December 31, 2005
----------------------------------------------------------------------
                                                 Unpaid     Weighted
                                                Principal    Average
                                                 Balance   Servicing
                                                               Fee
----------------------------------------------------------------------
                                                           (in basis
                                                             points,
Mortgage Loans Serviced for Others by                      annualized)
 Loan Type
      Government                                $ 45,709           46
      Agency                                     327,763           32
      Private                                    161,412           39
      Specialty home loans                        28,324           51
----------------------------------------------------------------------
   Total mortgage loans serviced for
    others(4)                                   $563,208           36
======================================================================

(1) Net of valuation allowance.

(2) MSR as a percentage of loans serviced for others was 1.43%, 1.29%,
    1.05%, 1.25% and 1.09% at December 31, 2005, September 30, 2005,
    June 30, 2005, March 31, 2005 and December 31, 2004.

(3) At December 31, 2005, the aggregate MSR fair value was $8.10
    billion.

(4) Weighted average coupon rate (annualized) was 5.90% at December
    31, 2005.


WM-18

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


                                                   Quarter Ended
----------------------------------------------------------------------
                                                Dec.    Sept.   June
                                                 31,     30,     30,
                                                2005    2005    2005
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
   Balance, beginning of quarter              $1,264  $1,243  $1,280
   Allowance acquired through business
    combinations/other                           447       -     (29)
   Provision for loan and lease losses           121      52      31
----------------------------------------------------------------------
                                               1,832   1,295   1,282
   Loans charged off:
      Loans secured by real estate:
         Home                                     (7)     (9)    (11)
         Specialty mortgage finance(1)           (14)    (15)    (11)
----------------------------------------------------------------------
              Total home loans charged off       (21)    (24)    (22)
         Home equity loans and lines of
          credit                                  (6)    (10)     (8)
         Home construction(2)                      -       -      (2)
         Multi-family                              -       -      (1)
         Other real estate                        (1)     (4)     (2)
----------------------------------------------------------------------
              Total loans secured by real
               estate                            (28)    (38)    (35)
      Consumer:
        Credit card                             (138)      -       -
        Other                                     (8)     (8)     (9)
      Commercial business                        (16)     (4)     (8)
----------------------------------------------------------------------
              Total loans charged off           (190)    (50)    (52)
   Recoveries of loans previously charged
    off:
      Loans secured by real estate:
         Specialty mortgage finance(1)             1       1       1
         Home equity loans and lines of
          credit                                   7       1       1
         Multi-family                              -       2       -
         Other real estate                         -       8       3
----------------------------------------------------------------------
              Total loans secured by real
               estate                              8      12       5
      Consumer:
        Credit card                               40       -       -
        Other                                      3       5       6
      Commercial business                          2       2       2
----------------------------------------------------------------------
              Total recoveries of loans
               previously charged off             53      19      13
----------------------------------------------------------------------
      Net charge-offs                           (137)    (31)    (39)
----------------------------------------------------------------------
   Balance, end of quarter                    $1,695  $1,264  $1,243
======================================================================
   Net charge-offs (annualized) as a
    percentage of average loans held in
    portfolio                                   0.24 %  0.06 %  0.07 %
   Allowance as a percentage of total loans
    held in portfolio                           0.74    0.58    0.58


                                                      Mar.     Dec.
                                                       31,      31,
                                                      2005     2004
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
   Balance, beginning of quarter                     $1,301   $1,322
   Allowance acquired through business
    combinations/other                                    -      (20)
   Provision for loan and lease losses                   16       37
----------------------------------------------------------------------
                                                      1,317    1,339
   Loans charged off:
      Loans secured by real estate:
         Home                                           (11)      (9)
         Specialty mortgage finance(1)                  (10)     (10)
----------------------------------------------------------------------
              Total home loans charged off              (21)     (19)
         Home equity loans and lines of credit           (5)      (3)
         Home construction(2)                             -       (1)
         Multi-family                                     -       (2)
         Other real estate                               (1)      (1)
----------------------------------------------------------------------
              Total loans secured by real estate        (27)     (26)
      Consumer:
        Credit card                                       -        -
        Other                                           (13)     (17)
      Commercial business                                (6)      (8)
----------------------------------------------------------------------
              Total loans charged off                   (46)     (51)
   Recoveries of loans previously charged off:
      Loans secured by real estate:
         Specialty mortgage finance(1)                    1        1
         Home equity loans and lines of credit            -        2
         Multi-family                                     -        -
         Other real estate                                1        2
----------------------------------------------------------------------
              Total loans secured by real estate          2        5
      Consumer:
        Credit card                                       -        -
        Other                                             5        4
      Commercial business                                 2        4
----------------------------------------------------------------------
              Total recoveries of loans previously
               charged off                                9       13
----------------------------------------------------------------------
      Net charge-offs                                   (37)     (38)
----------------------------------------------------------------------
   Balance, end of quarter                           $1,280   $1,301
======================================================================
   Net charge-offs (annualized) as a percentage
     of average loans held in portfolio                0.07  %  0.07 %
   Allowance as a percentage of total loans held in
    portfolio                                          0.60     0.63

(1) Represents purchased subprime home loan portfolios and subprime
    home loans originated by Long Beach Mortgage Company and held in
    its investment portfolio.

(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)


                                                Dec.    Sept.   June
                                                 31,     30,     30,
                                                2005    2005    2005
----------------------------------------------------------------------
Nonperforming Assets and Restructured Loans
  Nonaccrual loans(1):
     Loans secured by real estate:
        Home                                  $  565  $  472  $  495
        Specialty mortgage finance(2)            872     755     692
----------------------------------------------------------------------
              Total home nonaccrual loans      1,437   1,227   1,187
        Home equity loans and lines of credit     88      68      67
        Home construction(3)                      10      10      11
        Multi-family                              25      18      15
        Other real estate                         70      69     116
----------------------------------------------------------------------
              Total nonaccrual loans secured
               by real estate                  1,630   1,392   1,396
     Consumer(4)                                   8       8       8
     Commercial business                          48      65      59
----------------------------------------------------------------------
              Total nonaccrual loans held in
               portfolio                       1,686   1,465   1,463
  Foreclosed assets                              276     256     256
----------------------------------------------------------------------
              Total nonperforming assets      $1,962  $1,721  $1,719
              As a percentage of total assets   0.57%   0.52%   0.53%
  Restructured loans                          $   22  $   25  $   25
----------------------------------------------------------------------
                 Total nonperforming assets
                  and restructured loans      $1,984  $1,746  $1,744
=====================================================================

                                                        Mar.    Dec.
                                                         31,     31,
                                                        2005    2004
----------------------------------------------------------------------
Nonperforming Assets and Restructured Loans
  Nonaccrual loans(1):
     Loans secured by real estate:
        Home                                           $  495  $  534
        Specialty mortgage finance(2)                     734     682
----------------------------------------------------------------------
              Total home nonaccrual loans               1,229   1,216
        Home equity loans and lines of credit              74      66
        Home construction(3)                               25      28
        Multi-family                                       15      12
        Other real estate                                 159     162
----------------------------------------------------------------------
              Total nonaccrual loans secured by real
               estate                                   1,502   1,484
     Consumer(4)                                            8       9
     Commercial business                                   59      41
----------------------------------------------------------------------
              Total nonaccrual loans held in portfolio  1,569   1,534
  Foreclosed assets                                       264     261
----------------------------------------------------------------------
              Total nonperforming assets               $1,833  $1,795
              As a percentage of total assets            0.57%   0.58%
  Restructured loans                                   $   27  $   34
----------------------------------------------------------------------
                 Total nonperforming assets and
                  restructured loans                   $1,860  $1,829
======================================================================


(1) Excludes nonaccrual loans held for sale of $245 million at
    December 31, 2005. Prior periods also reflect the exclusion of
    nonaccrual loans held for sale of $152 million, $108 million, $112
    million and $76 million at September 30, 2005, June 30, 2005,
    March 31, 2005 and December 31, 2004. Loans held for sale are
    accounted for at lower of aggregate cost or market value, with
    valuation changes included as adjustments to noninterest income.

(2) Represents purchased subprime home loan portfolios and subprime
    home loans originated by Long Beach Mortgage Company and held in
    its investment portfolio.

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

(4) Excludes credit card loans.

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

SOURCE: Washington Mutual