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Washington Mutual Reports Second Quarter Earnings Per Share of 79 Cents, 94 Cents Per Share Before the Second Quarter Impact of the Pending Sale of Mortgage Servicing Rights and Restructuring Charges

SEATTLE--(BUSINESS WIRE)--July 19, 2006-- Company Announces Intention to Sell its Asset Management Company; Board of Directors Increases Cash Dividend to 52 Cents and Approves New 150 million Share Repurchase Plan

Washington Mutual, Inc. (NYSE:WM) today reported second quarter 2006 net income of $767 million, or $0.79 per diluted share, including an after tax adjustment of $101 million to reflect the pending sale of $2.6 billion of mortgage servicing rights and an after tax restructuring charge of $52 million related to the company's efficiency initiatives.

Net income excluding these two items would have been $920 million, or $0.94 per diluted share, compared with net income of $844 million, or $0.95 per diluted share in the second quarter of 2005.

The company announced today a series of actions it is taking that will significantly improve the company's market risk profile, greatly accelerate the achievement of its operating efficiency goals, and be accretive to earnings in 2006 and 2007.

"Our retail banking and card services businesses produced excellent results and our business model is performing well in this challenging interest rate environment," said Kerry Killinger, Washington Mutual Chairman and Chief Executive Officer. "The transformational actions we're taking will make us an even more diversified bank positioned for improved financial performance as we move forward."

As part of the company's Home Loans strategy of focusing on higher-margin products, driving superior operating efficiency and reducing its exposure to market risk, the company entered into a definitive agreement to sell $2.6 billion of mortgage servicing rights. The pending sale includes all of the company's government loan servicing and a portion of its conforming, fixed-rate servicing, which is predominantly for single service customers, the majority of whom are outside the company's retail footprint. The pending sale also includes the transfer of the company's Milwaukee loan servicing operation and approximately 800 employees. In addition to the $101 million after tax adjustment booked in the second quarter, the company expects to incur additional transaction and shutdown-related costs of approximately $50 million, after tax, most of which will be incurred in the third quarter.

The company is announcing the intent to sell WM Advisors, Inc., its subsidiary that provides investment management, distribution and shareholder services to the WM Group of Funds. The decision is consistent with the company's strategy of streamlining its business model. Therefore, WM Advisors is being shown as discontinued operations in the company's financial statements.

The sale of WM Advisors is anticipated to be completed by year end and the gain from the sale is expected to more than offset the 2006 financial impact of the sale of mortgage servicing rights and the company's restructuring charges, including the relocation of back office operations to lower cost domestic and offshore locations, and consolidation of real estate that remains in higher cost markets.

Washington Mutual's Board of Directors declared a cash dividend of 52 cents per share on the company's common stock, up from 51 cents per share in the previous quarter. Dividends on the common stock are payable on August 15, 2006 to shareholders of record as of July 31, 2006. Consistent with the company's commitment to optimize its use of shareholder capital, the Board also approved a new 150 million share repurchase program. There is no fixed termination date for the new program, and purchases may be made in the open market, through block trades, accelerated share repurchases, private transactions, or otherwise.

Earnings Highlights
(In millions, except per share data)
                                              Three Months Ended
                                         -----------------------------
                                          June 30, March 31,  June 30,
                                            2006      2006      2005
                                         --------- --------- ---------
  Total revenue                          $  3,638  $  3,755  $  3,115
  Net income                                  767       985       844
  Diluted earnings per common share          0.79      0.98      0.95

  Total assets, end of period            $350,696  $348,667  $323,533

Second Quarter Earnings Impact
(In millions, except per share data)
                                          Pretax   After tax    EPS
                                          Impact    Impact    Impact
                                         --------- --------- ---------
Net income                               $         $    767  $   0.79
Action items
  Restructuring costs(1)                       81        52      0.05
  Adjustment on sale of MSR                   157       101      0.10
                                                   --------- ---------
Net income, excluding the impact
  of restructuring costs and MSR
   adjustment                                      $    920  $   0.94

(1) Pretax restructuring costs include $30 million compensation and
    benefits expense, $49 million occupancy and equipment expense, and
    $2 million in professional fees.
    --  Momentum continues with WaMu Free Checking(TM). WaMu's new
        free checking product drove another quarter of record account
        growth with 404,000 net checking accounts, up from 340,000 net
        accounts in the previous quarter when the product was first
        launched. This quarter's growth also represents a 66 percent
        increase in net accounts from a year ago. The introduction of
        this new product has enhanced WaMu's position as one of the
        industry leaders in customer acquisition.

    --  Card Services drives strong customer and loan growth. The
        successful marketing of credit cards to existing WaMu
        customers has helped grow both the number of customers and
        loan balances. Managed card receivables grew significantly, up
        $1.0 billion, or 5 percent, on a linked quarter basis, to
        $21.1 billion at June 30. During the quarter, Card Services
        opened 771,000 new credit card accounts, of which 274,000 were
        with WaMu retail customers. The number of new WaMu accounts
        opened since the company added Card Services less than a year
        ago now totals 694,000.
SECOND QUARTER FINANCIAL SUMMARY
Financial Summary                             Three Months Ended
                                         -----------------------------
                                          June 30,  March 31, June 30,
  (In millions)                             2006      2006      2005
                                         --------- --------- ---------
  Income Statement
  Net interest income                    $  2,060  $  2,117  $  2,009
  Provision for loan and lease losses         224        82        31
  Noninterest income                        1,578     1,638     1,106
  Noninterest expense                       2,229     2,138     1,767
  Net income                                  767       985       844

  Balance Sheet
  Average total assets                   $349,561  $344,562  $320,845
  Average total deposits                  200,252   191,034   183,521

  Profitability Ratios
  Return on average common equity           11.39%    14.18%    15.33%
  Net interest margin                        2.65      2.75      2.77
  Efficiency ratio                          61.27     56.95     56.70
  Nonperforming assets/total assets          0.62      0.59      0.53
  Tangible equity/total tangible assets      5.94      5.85      5.13
    EARNINGS PERFORMANCE

    --  Net interest income reflects pressure from rising short-term
        interest rates. Net interest income in the second quarter was
        down 3 percent from the prior quarter as the increase in
        earning assets was more than offset by margin compression.
        Compared with the second quarter a year ago, net interest
        income was up 3 percent as average interest earning assets
        increased 8 percent and more than offset the impact of a 200
        basis point rise in the Fed Funds rate.

    --  Provision reflects loan growth and charge-off level. The
        provision for loan and lease losses of $224 million in the
        second quarter reflected a modest increase in the level of
        charge-offs, as well as incremental loan growth. The $82
        million provision and level of charge-offs in the first
        quarter benefited from the surge of bankruptcy-related
        charge-offs in the fourth quarter as consumers sought
        bankruptcy protection in advance of the effective date of
        bankruptcy reform. The provision a year ago reflected not only
        the benign credit environment but also the absence of the
        credit card portfolio. Nonperforming assets as a percentage of
        total assets were up slightly to 62 basis points at quarter
        end, compared with 59 basis points at the end of the prior
        quarter and 53 basis points at the end of the last year's
        second quarter.

    --  Noninterest income reflects strong fee growth. Noninterest
        income of $1.58 billion in the second quarter included the
        $157 million loss on the $2.6 billion of MSR being sold. This
        compares with noninterest income of $1.64 billion in the first
        quarter, which included income of $134 million from the
        partial settlement of the Home Savings goodwill litigation.
        Excluding these items, noninterest income would have been up
        15 percent, reflecting the strength of the company's customer
        account growth. Compared with the prior year, the increase in
        noninterest income was primarily due to a 19 percent increase
        in depositor and other retail banking fees, plus the inclusion
        of Card Services which added $575 million from the sale and
        servicing of consumer loans and credit card fees.

    --  Company continues to focus on expense management. Included in
        this quarter's noninterest expense were restructuring charges
        totaling $81 million related to the company's efficiency
        initiatives. Excluding these charges, noninterest expense
        would have been up only 2 percent from the previous quarter as
        the company opened another 35 retail banking stores, but
        reduced total staffing by 7 percent. The increase in expenses
        compared with a year ago reflects the addition of Card
        Services and the company's growth initiatives, including the
        addition of 204 net new retail banking stores during the past
        twelve months.

    BALANCE SHEET ACTIVITY

    --  Company strategically manages balance sheet. Average assets
        were up 1 percent on a linked quarter basis with the increase
        in the balance of loans held in portfolio, particularly hybrid
        loans and credit card receivables. Compared with the second
        quarter of 2005, average assets were up 9 percent reflecting
        growth in adjustable-rate loans and the addition of Card
        Services receivables.

    --  Average deposits up with strong growth in wholesale products.
        Average deposits were up 5 percent on a linked quarter basis
        as the company utilized wholesale deposits, in part, to reduce
        the level of Federal Home Loan Bank advances. Compared with
        last year's second quarter, average deposits were up $16.73
        billion, or 9 percent, due to the inclusion of acquired
        deposits from the company's merger with Providian and growth
        in both retail and wholesale deposits.
SECOND QUARTER OPERATING SEGMENT RESULTS
Retail Banking Group
Selected Segment Information                  Three Months Ended
                                         -----------------------------
  (In millions, except accounts and       June 30,  March 31, June 30,
   households)                              2006      2006      2005
                                         --------- --------- ---------
  Net interest income                    $  1,509  $  1,523  $  1,458
  Provision for loan and leases losses         37        50        40
  Noninterest income(1)                       732       674       619
  Noninterest expense(1)                    1,138     1,107     1,042
  Net income from continuing operations(1)    670       651       625

  Average loans                          $195,985  $189,142  $181,396
  Average retail deposits                 138,803   139,062   135,539
  Net change in retail checking
   accounts(2)                            404,190   340,157   244,028
  Net change in retail households         259,000   210,000   173,000

(1) Prior quarters have been restated to reflect WM Advisors as
    discontinued operations due to the company's intent to sell.

(2) Includes retail checking and small business checking.

    --  Retail Banking continues to show impressive results. Net
        income from continuing operations of $670 million was up 3
        percent from the first quarter and up 7 percent from a year
        ago. Excluding the impact of portfolio management included in
        the segment, net income from continuing operations for the
        Retail Bank network was up 31 percent from the same period a
        year ago and included the opening of 204 net new retail
        stores.

    --  Retail Banking fees continue to grow at double digit pace.
        Depositor and other retail banking fees were up 11 percent
        from the first quarter and up 19 percent from a year ago
        reflecting the strong growth in net new checking accounts.
        Included in this quarter's results was a $21 million incentive
        payment as part of the company's migration of its debit card
        business to MasterCard. Excluding the payment, the increase in
        depositor fees from a year ago would have been approximately
        15 percent.

    --  WaMu Free Checking(TM) drives another quarter of record
        checking account growth. The company's new Free Checking
        product was instrumental in the opening of 404,000 net new
        checking accounts in the second quarter, up from 340,000 in
        the prior quarter and 244,000 a year ago. The new product was
        also instrumental in attracting 259,000 net new retail
        households during the quarter.

    --  Higher short-term interest rates slow deposit growth. Average
        retail deposits during the quarter were down slightly from the
        previous quarter given the overall interest rate and
        competitive environment. Compared with last year's second
        quarter, average retail deposits were up $3.3 billion, or 2
        percent.

    --  Small business activity continues to expand. With continued
        strength across small business, the company opened 55,000 net
        new small business checking accounts during the quarter, up 4
        percent from the prior quarter and up 12 percent from a year
        earlier.
Card Services Group (on a managed basis)
Selected Segment Information                 Three Months Ended
                                      --------------------------------
                                       June 30,   March 31,   Dec. 31,
  (In millions)                          2006        2006        2005
                                     ---------   ---------   ---------
  Net interest income                $    610    $    614    $    637
  Provision for loan and
   lease losses                           417         330         454
  Noninterest income                      387         345         352
  Noninterest expense                     283         289         268
  Net income                              183         210         166

  Average managed receivables        $ 20,473    $ 20,086    $ 19,472
  Period end managed receivables       21,095      20,099      19,962
  30+ day managed delinquency rate       5.23%       5.18%       5.07%
  Managed net credit losses              5.99        5.79        7.28
    --  Card Services continues to produce excellent results. Card
        Services reported net income of $183 million reflecting the
        continued strong risk-adjusted return of the portfolio, growth
        in the amount of outstanding receivables, a favorable credit
        environment, and the successful marketing of credit cards to
        WaMu customers.

    --  Managed receivables continue to show significant growth. Solid
        marketing efforts and continued penetration of the WaMu retail
        customer base contributed to a 5 percent increase in period
        end managed receivables for the second quarter compared with
        the first quarter. During the quarter, Card Services opened
        approximately 771,000 new accounts, a third of which were with
        WaMu retail customers.

    --  Credit quality continues to be favorable. At 5.23 percent of
        total managed receivables, the 30+ day delinquency rate was up
        slightly from the prior quarter. As expected, managed net
        credit losses were also up slightly from the first quarter but
        still remain low compared with historical levels. Credit
        performance in both the first and second quarters benefited
        from a much lower level of bankruptcy-related charge-offs in
        the wake of the surge in the fourth quarter as consumers
        sought bankruptcy protection in advance of the effective date
        of bankruptcy reforms.
Commercial Group
Selected Segment Information                 Three Months Ended
                                       -------------------------------
                                        June 30,   March 31,  June 30,
  (In millions)                           2006        2006      2005
                                       ---------  ----------  --------
  Net interest income                  $    203   $     199   $   218
  Provision for loan and lease losses         1           1         1
  Noninterest income                         17          13         3
  Noninterest expense                        57          68        57
  Net income                                100          89       102

  Loan volume                          $  2,961   $   2,769   $ 2,864
  Average loans                          31,625      31,011    29,597
    --  Commercial Group posts solid results. The increase in net
        income from the first quarter reflects the slight increase in
        average assets and strong expense management. Net interest
        income of $203 million was up 2 percent from the prior quarter
        as higher loan balances offset continued spread compression.
        However, it was down 7 percent from a year ago due to higher
        funding costs caused by rising short-term rates. Compared with
        the previous quarter, the decline in noninterest expense was
        due to improved efficiencies and reduced staffing.

    --  Commercial Group lending volume remains robust. Despite higher
        interest rates, total loan volume of $2.96 billion increased 7
        percent from the prior quarter and 3 percent from a year ago.
        The quarter's lending reflects the company's continued strong
        position in multi-family lending.
Home Loans Group
Selected Segment Information                 Three Months Ended
                                      --------------------------------
                                      June 30,    March 31,   June 30,
  (In millions)                         2006         2006       2005
                                      --------  -----------  ---------
  Net interest income                 $   206     $    269   $    449
  Provision for loan and lease losses       1            1          -
  Noninterest income                      453          408        668
  Noninterest expense                     588          599        637
  Net income                               32           39        292

  Loan volume                         $41,364     $ 44,998   $ 53,030
  Average loans                        30,742       34,586     48,040
    --  Home Loan net income continues to reflect challenging rate
        environment. Second quarter net income of $32 million was down
        slightly from the prior quarter as the decline in net interest
        income more than offset the improvement in noninterest income
        and the benefits of improved expense management.

    --  Higher mortgage rates slow loan production. Higher mortgage
        rates led to a decline in lending volume and a lower balance
        of loans outstanding. Net interest income was down 23 percent
        on a linked quarter basis and 54 percent year over year
        reflecting the lower loan balance arising from higher
        short-term rates.

    --  Improvement seen in gain on sale margin and MSR performance.
        Gain on sale of loans of $251 million was up compared with the
        prior quarter as margins generally improved. During the
        quarter, the total cost of MSR risk management was $45 million
        compared with a cost of $151 million in the first quarter. The
        lower level of hedging costs reflects a somewhat improved
        interest rate and hedging environment than existed during the
        first quarter of this year. Offsetting these positive results
        were fair value adjustments of $82 million on certain assets
        held in trading accounts.

    --  Home Loans refines business model for changing market
        environments. During the quarter, the Home Loans Group took
        several steps to further its long-term goals to diversify its
        product set, leverage distribution, and reduce its cost
        structure. In May, the company announced that it was
        realigning its traditional correspondent business to a conduit
        structure. And, as part of streamlining its product line, the
        company announced that it will no longer engage in FHA and VA
        lending. The company's announced sale of $2.6 billion of
        mortgage servicing rights is consistent with the Home Loans
        strategy and will reduce the ratio of MSR to total
        stockholders' equity to approximately 25 percent.

    --  Efficiency initiatives continue to reduce expenses.
        Noninterest expense of $588 million in the second quarter of
        2006 was down 8 percent from a year ago as management drove
        productivity and efficiency improvements. The company plans to
        continue to attack the cost structure with further site and
        system consolidation, business process outsourcing, and
        leveraging distribution in financial centers. Also, the
        realignment of Long Beach Mortgage under one management team
        in the Home Loans group was substantially completed in the
        quarter.

    COMPANY UPDATES

    --  On April 23, the company announced that it had entered into a
        definitive merger agreement with Commercial Capital Bancorp in
        which Washington Mutual will acquire the outstanding shares of
        Commercial Capital for $16.00 per share in cash. The
        transaction is valued at approximately $1.0 billion in
        aggregate and is expected to close early in the fourth
        quarter.

    About Washington Mutual

Washington Mutual, through its subsidiaries, is one of the nation's leading consumer and small business banks. At June 30, 2006, Washington Mutual and its subsidiaries had assets of $350.70 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate more than 2,600 consumer and small business banking stores throughout the nation. Washington Mutual's press releases are available at http://newsroom.wamu.com.

Webcast information: A conference call to discuss the company's financial results will be held on Wednesday, July 19, 2006, at 5:00 p.m. EDT and will be hosted by Kerry Killinger, chairman and chief executive officer and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-946-6301. 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 from 7:00 p.m. EDT on Wednesday, July 19, 2006, through 11:59 p.m. EDT on Friday, July 28, 2006. The recorded message will be available at 866-503-3181. Callers from outside the United States may dial 203-369-1861.

Forward Looking Statement

Our Form 10-K for 2005 and other documents that we file 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 described in detail in our Form 10-K for 2005 and Quarterly Report on Form 10-Q for the Period Ended March 31, 2006 and include: volatile interest rates impact the mortgage banking business; rising interest rates, unemployment and decreases in housing prices; risks related to the option adjustable-rate mortgage product; risks related to subprime lending; risks related to the integration of the Card Services business; risks related to credit card operations; changes in the regulation of financial services companies, housing government-sponsored enterprises and credit card lenders; competition from banking and nonbanking companies; general business 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; and negative public opinion. There are other factors not described in the Form 10-K for 2005 and Form 10-Q for the Period Ended March 31, 2006 and which are beyond the Company's ability to anticipate or control that could cause results to differ.


WM-1

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


                                      Quarter Ended
----------------------------------------------------------------------
                 June 30,    Mar. 31,    Dec. 31, Sept. 30,  June 30,
                    2006        2006        2005      2005      2005
----------------------------------------------------------------------
PROFITABILITY
 Net income     $    767  $      985  $      865  $    821  $    844
 Net interest
  income           2,060       2,117       2,241     2,005     2,009
 Noninterest
  income           1,578       1,638       1,526     1,208     1,106
 Noninterest
  expense          2,229       2,138       2,214     1,860     1,767

 Diluted earnings
  per common
  share:
   Income from
    continuing
    operations  $   0.78  $     0.97  $     0.84  $   0.91  $   0.94
   Income from
    discontinued
    operations,
    net             0.01        0.01        0.01      0.01      0.01
   Net income       0.79        0.98        0.85      0.92      0.95

 Diluted weighted
  average number
  of common
  shares
  outstanding(1) 975,504   1,003,460   1,011,395   888,495   887,250
 Net interest
  margin            2.65 %      2.75 %      2.88 %    2.73 %    2.77 %

 Dividends
  declared per
  common share      0.51        0.50        0.49      0.48      0.47
 Book value per
  common share(2)  27.66       27.45       27.95     25.92     25.62
 Return on average
  assets(3)         0.88 %      1.14 %      0.99 %    1.00 %    1.05 %
 Return on average
  common equity(3) 11.39       14.18       12.49     14.66     15.33
 Efficiency
  ratio(4)(5)      61.27       56.95       58.75     57.88     56.70

ASSET QUALITY
 Nonperforming
  assets(6) to
  total assets(7)   0.62 %      0.59 %      0.57 %    0.52 %    0.53 %
 Allowance as a
  percentage of
  total loans held
  in portfolio(7)   0.68        0.68        0.74      0.58      0.58
 Provision for
  loan and
  lease
  losses        $    224  $       82  $      217  $     52  $     31
 Net charge-offs     116         105         137        31        39

CAPITAL ADEQUACY(7)
 Capital Ratios at
  WMI-consolidated
  level:
   Tangible
    equity(8) to
    total
    tangible
    assets(8)       5.94 %      5.85 %      5.72 %    5.09 %    5.13 %
   Estimated total
    risk-based
    capital to
    total
    risk-weighted
    assets(9)      11.44       10.90       10.90     10.71     11.10
 Capital Ratios
  at WMB-bank
  only level
 (well-capitalized
  minimum)(10):
   Tier 1 capital
    to adjusted
    total assets
    (5.00%)         6.44        6.84        6.56      5.85      5.74
   Adjusted tier 1
    capital to
    total risk-
    weighted
    assets (6.00%)  8.37        9.04        8.61      8.47      8.38
   Total risk-
    based capital
    to total
    risk-weighted
    assets
    (10.00%)       11.66       11.94       11.62     11.48     11.51

SUPPLEMENTAL DATA
 Average balance
  sheet:
   Total loans
    held in
    portfolio   $242,334  $  232,505  $  227,568  $213,016  $213,638
   Total
    interest-
    earning
    assets(4)    313,239     307,777     314,490   296,529   290,841
   Total
    assets       349,561     344,562     349,931   327,292   320,845
   Total
    deposits     200,252     191,034     196,799   188,320   183,521
   Total
    stockholders'
    equity        26,932      27,798      27,708    22,412    22,014
 Period-end
  balance sheet:
   Total loans
    held in
    portfolio,
    net of
    allowance for
    loan and
    lease losses 241,840     238,362     227,937   216,930   211,494
   Total assets  350,696     348,667     343,839   333,622   323,533
   Total
    deposits     204,558     200,002     193,167   190,412   184,317
   Total
    stockholders'
    equity        26,468      26,156      27,616    22,596    22,350
   Common shares
    outstanding
    at the end
    of period
    (1)(11)      962,880     958,819     993,914   877,651   878,384
   Employees at
    end of
    period        56,247      60,381      60,798    56,214    54,377



                                               Six Months Ended
----------------------------------------------------------------------
                                            June 30,      June 30,
                                               2006          2005
----------------------------------------------------------------------
PROFITABILITY
 Net income                               $   1,752    $    1,745
 Net interest income                          4,176         3,972
 Noninterest income                           3,216         2,364
 Noninterest expense                          4,367         3,548

 Diluted earnings per common share:
   Income from continuing operations      $    1.75    $     1.94
   Income from discontinued
    operations, net                            0.02          0.03
   Net income                                  1.77          1.97

 Diluted weighted average number of
  common shares outstanding(1)              989,408       888,020
 Net interest margin                           2.70 %        2.80 %
 Dividends declared per common share           1.01          0.93
 Book value per common share(2)               27.66         25.62
 Return on average assets(3)                   1.01 %        1.11 %
 Return on average common equity(3)           12.81         15.98
 Efficiency ratio(4)(5)                       59.08         55.99

ASSET QUALITY
 Nonperforming assets(6) to total
  assets(7)                                    0.62 %        0.53 %
 Allowance as a percentage of total
  loans held in portfolio(7)                   0.68          0.58
 Provision for loan and lease losses      $     306    $       47
 Net charge-offs                                220            77

CAPITAL ADEQUACY(7)
 Capital Ratios at WMI-consolidated
  level:
   Tangible equity(8) to total
    tangible assets(8)                         5.94 %        5.13 %
   Estimated total risk-based capital
    to total risk-weighted assets(9)          11.44         11.10
 Capital Ratios at WMB-bank only level
  (well-capitalized minimum)(10):
   Tier 1 capital to adjusted total
    assets (5.00%)                             6.44          5.74
   Adjusted tier 1 capital to total
    risk-weighted assets (6.00%)               8.37          8.38
   Total risk-based capital to total
    risk-weighted assets (10.00%)             11.66         11.51

SUPPLEMENTAL DATA
 Average balance sheet:
   Total loans held in portfolio          $ 237,446    $  210,496
   Total interest-earning assets(4)         310,523       283,971
   Total assets                             347,075       314,544
   Total deposits                           195,668       179,376
   Total stockholders' equity                27,362        21,848
 Period-end balance sheet:
   Total loans held in portfolio, net
    of allowance for loan
    and lease losses                        241,840       211,494
   Total assets                             350,696       323,533
   Total deposits                           204,558       184,317
   Total stockholders' equity                26,468        22,350
   Common shares outstanding at the
    end of period(1)(11)                    962,880       878,384
   Employees at end of period                56,247        54,377


(1) Number of shares in thousands.

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

(3) Includes income from continuing and discontinued operations.

(4) Based on continuing operations.

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

(6) Excludes nonaccrual loans held for sale.

(7) As of period end.

(8) Excludes unrealized net gain/loss on available-for-sale
    securities and derivatives, goodwill and intangible assets (except
    MSR). Minority interests of $1.96 billion and $1.97 billion at
    June 30, 2006 and March 31, 2006 are included in the numerator.

(9) The total risk-based capital ratio is estimated as if Washington
    Mutual, Inc. were a bank holding company subject to Federal
    Reserve Board capital requirements.

(10) Capital ratios for Washington Mutual Bank ("WMB") at June 30,
     2006 are preliminary.

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


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


                                     Quarter Ended
----------------------------------------------------------------------
                June 30,    Mar. 31,    Dec. 31,  Sept. 30,   June 30,
                   2006        2006        2005       2005       2005
----------------------------------------------------------------------
Interest Income
   Loans held
    for sale   $    398  $      466  $      676  $     665  $     580
   Loans held
    in
    portfolio     3,884       3,576       3,431      2,947      2,833
   Available-
    for-sale
    securities      368         322         303        238        234
   Trading
    assets          165         198         185        114         91
   Other interest
    and dividend
    income          120          95          73         65         51
----------------------------------------------------------------------
      Total
       interest
       income     4,935       4,657       4,668      4,029      3,789
Interest Expense
   Deposits       1,461       1,221       1,184        996        852
   Borrowings     1,414       1,319       1,243      1,028        928
----------------------------------------------------------------------
      Total
       interest
       expense    2,875       2,540       2,427      2,024      1,780
----------------------------------------------------------------------
         Net
          interest
          income  2,060       2,117       2,241      2,005      2,009
   Provision for
    loan and
    lease losses    224          82         217         52         31
----------------------------------------------------------------------
         Net
          interest
          income
          after
          provision
          for loan
          and lease
          losses  1,836       2,035       2,024      1,953      1,978
Noninterest
 Income
   Revenue from
    sales and
    servicing of
    home mortgage
    loans           222         263         418        710        114
   Revenue from
    sales and
    servicing of
    consumer
    loans           424         376         409          2          2
   Depositor and
    other retail
    banking fees    641         578         586        578        540
   Credit
    card fees       152         138         139          -          -
   Securities
    fees and
    commissions      56          52          47         48         47
   Insurance
    income           33          33          37         42         47
   Trading assets
    income (loss)  (129)        (13)       (273)      (171)       285
   Gain (loss)
    from sales of
    other
    available-
    for-sale
    securities        -          (7)         46        (32)        25
   Other income     179         218         117         31         46
----------------------------------------------------------------------
         Total
          non-
          interest
          income  1,578       1,638       1,526      1,208      1,106
Noninterest
 Expense
   Compensation
    and
    benefits(1)   1,021       1,032       1,028        930        876
   Occupancy and
    equipment       435         391         399        372        349
   Tele-
    communications
    and outsourced
    information
    services        145         134         139        107        100
   Depositor and
    other retail
    banking
    losses           51          56          60         61         49
   Advertising
    and promotion   117          95         109         78         74
   Professional
    fees             45          36          62         47         38
   Other
    expense         415         394         417        265        281
----------------------------------------------------------------------
         Total
          non-
          interest
          expense 2,229       2,138       2,214      1,860      1,767
   Minority
    interest
    expense          37           -           -          -          -
----------------------------------------------------------------------
          Income
           from
           conti-
           nuing
           opera-
           tions
           before
           income
           taxes  1,148       1,535       1,336      1,301      1,317
          Income
           taxes    389         559         479        488        484
----------------------------------------------------------------------
           Income
            from
            conti-
            nuing
            opera-
            tions,
            net of
            taxes   759         976         857        813        833
----------------------------------------------------------------------
Discontinued
 Operations(2)
          Income
           from
           discon-
           tinued
           opera-
           tions
           before
           income
           taxes     12          15          12         12         17
          Income
           taxes      4           6           4          4          6
----------------------------------------------------------------------
           Income
            from
            discon-
            tinued
            opera-
            tions,
            net of
            taxes     8           9           8          8         11
----------------------------------------------------------------------
Net Income     $    767  $      985  $      865  $     821  $     844
======================================================================

 Basic Earnings
  Per Common
  Share:
   Income from
    continuing
    operations $   0.80  $     1.00  $     0.87  $    0.94  $    0.97
   Income from
    discontinued
    operations,
    net            0.01        0.01        0.01       0.01       0.01
                --------  ----------  ----------  ---------  ---------
     Net income    0.81        1.01        0.88       0.95       0.98

Diluted Earnings
 Per Common
 Share:
   Income from
    continuing
    operations $   0.78  $     0.97  $     0.84  $    0.91  $    0.94
   Income from
    discontinued
    operations,
    net            0.01        0.01        0.01       0.01       0.01
                --------  ----------  ----------  ---------  ---------
     Net income    0.79        0.98        0.85       0.92       0.95

Dividends
 declared per
 common share      0.51        0.50        0.49       0.48       0.47
Basic weighted
 average number
 of common
 shares
 outstanding
 (in thousands) 947,023     973,614     980,084    866,541    865,221
Diluted weighted
 average number
 of common
 shares
 outstanding
 (in thousands) 975,504   1,003,460   1,011,395    888,495    887,250


(1) As of January 1, 2006, the Company applied Statement of Financial
    Accounting Standards ("Statement") No. 123R, Share-Based Payment.
    Statement No. 123R requires an entity that previously had a policy
    of recognizing the effect of forfeitures as they occurred to
    estimate the number of outstanding instruments for which the
    requisite service is not expected to be rendered. The effect of
    this change in accounting principle amounted to $25 million and
    has been reflected as a decrease to compensation and benefits
    expense in the first quarter of 2006.

(2) Represents the operations of the Company's asset management unit,
    WM Advisors, Inc.


WM-3
                        Washington Mutual, Inc.
                   Consolidated Statements of Income
             (dollars in millions, except per share data)
                              (unaudited)

                                                   Six Months Ended
----------------------------------------------------------------------
                                               June 30,       June 30,
                                                  2006           2005
----------------------------------------------------------------------
Interest Income
  Loans held for sale                        $     864     $    1,053
  Loans held in portfolio                        7,460          5,448
  Available-for-sale securities                    690            457
  Trading assets                                   363            170
  Other interest and dividend income               215             95
----------------------------------------------------------------------
       Total interest income                     9,592          7,223
Interest Expense
  Deposits                                       2,682          1,548
  Borrowings                                     2,734          1,703
----------------------------------------------------------------------
       Total interest expense                    5,416          3,251
----------------------------------------------------------------------
          Net interest income                    4,176          3,972
  Provision for loan and lease losses              306             47
----------------------------------------------------------------------
          Net interest income after
           provision for loan and lease
           losses                                3,870          3,925
Noninterest Income
  Revenue from sales and servicing of home
   mortgage loans                                  486            889
  Revenue from sales and servicing of
   consumer loans                                  801              2
  Depositor and other retail banking fees        1,219          1,030
  Credit card fees                                 291              -
  Securities fees and commissions                  108             94
  Insurance income                                  66             93
  Trading assets income (loss)                    (142)           186
  Loss from sales of other available-for-
   sale securities                                  (8)           (97)
  Other income                                     395            167
----------------------------------------------------------------------
       Total noninterest income                  3,216          2,364
Noninterest Expense
  Compensation and benefits(1)                   2,054          1,744
  Occupancy and equipment                          826            750
  Telecommunications and outsourced
   information services                            279            203
  Depositor and other retail banking losses        108            104
  Advertising and promotion                        211            128
  Professional fees                                 81             71
  Other expense                                    808            548
----------------------------------------------------------------------
       Total noninterest expense                 4,367          3,548
  Minority interest expense                         37              -
----------------------------------------------------------------------
          Income from continuing operations
           before income taxes                   2,682          2,741
          Income taxes                             947          1,019
----------------------------------------------------------------------
              Income from continuing operations,
               net of taxes                      1,735          1,722
----------------------------------------------------------------------
Discontinued Operations(2)
          Income from discontinued operations
           before income taxes                      27             35
          Income taxes                              10             12
----------------------------------------------------------------------
              Income from discontinued
               operations, net of taxes             17             23
----------------------------------------------------------------------
Net Income                                   $   1,752     $    1,745
======================================================================

Basic Earnings Per Common Share:
   Income from continuing operations         $    1.81     $     1.99
   Income from discontinued operations,
    net                                           0.02           0.03
                                              ---------     ----------
             Net income                           1.83           2.02

Diluted Earnings Per Common Share:
       Income from continuing operations     $    1.75     $     1.94
       Income from discontinued operations,
        net                                       0.02           0.03
                                              ---------     ----------
             Net income                           1.77           1.97

Dividends declared per common share               1.01           0.93
Basic weighted average number of common
 shares outstanding (in thousands)             960,245        865,078
Diluted weighted average number of common
 shares outstanding (in thousands)             989,408        888,020


(1) As of January 1, 2006, the Company applied Statement of Financial
    Accounting Standards ("Statement") No. 123R, Share-Based Payment.
    Statement No. 123R requires an entity that previously had a policy
    of recognizing the effect of forfeitures as they occurred to
    estimate the number of outstanding instruments for which the
    requisite service is not expected to be rendered. The effect of
    this change in accounting principle amounted to $25 million and
    has been reflected as a decrease to compensation and benefits
    expense in the first quarter of 2006.

(2) Represents the operations of the Company's asset management unit,
    WM Advisors, Inc.

WM-4

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


                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                         2006      2006      2005      2005      2005
----------------------------------------------------------------------
Assets
  Cash and cash
   equivalents       $  6,630  $  5,816  $  6,162  $  4,874  $  4,548
  Federal funds sold
   and securities
   purchased under
   agreements to
   resell               4,112     3,995     2,137     3,194       625
  Trading assets        7,445     9,958    10,999     7,351     5,687
  Available-for-sale
   securities, total
   amortized cost of
   $28,504, $27,424,
   $24,810, $20,757
   and $18,999:
    Mortgage-backed
     securities        21,438    21,388    20,648    17,161    14,396
    Investment
     securities         6,358     5,586     4,011     3,603     4,852
----------------------------------------------------------------------
      Total
       available-
       for-sale
       securities      27,796    26,974    24,659    20,764    19,248
  Loans held for
   sale                23,342    25,020    33,582    48,018    51,122
  Loans held in
   portfolio          243,503   240,004   229,632   218,194   212,737
  Allowance for
   loan and lease
   losses              (1,663)   (1,642)   (1,695)   (1,264)   (1,243)
----------------------------------------------------------------------
      Total loans held
       in portfolio,
       net of
       allowance for
       loan and lease
       losses         241,840   238,362   227,937   216,930   211,494
  Investment in
   Federal Home
   Loan Banks           3,500     4,200     4,257     4,228     4,194
  Mortgage
   servicing rights     9,162     8,736     8,041     7,042     5,730
  Goodwill              8,339     8,298     8,298     6,196     6,196
  Other assets         18,530    17,308    17,767    15,025    14,689
----------------------------------------------------------------------
      Total assets   $350,696  $348,667  $343,839  $333,622  $323,533
======================================================================
Liabilities
  Deposits:
   Noninterest-
    bearing
    deposits         $ 35,457  $ 36,531  $ 34,014  $ 36,850  $ 35,518
   Interest-
    bearing
    deposits          169,101   163,471   159,153   153,562   148,799
----------------------------------------------------------------------
      Total deposits  204,558   200,002   193,167   190,412   184,317
  Federal funds
   purchased and
   commercial paper     6,138     6,841     7,081     7,229     5,864
  Securities sold
   under agreements
   to repurchase       19,866    15,471    15,532    14,508    14,089
  Advances from
   Federal Home
   Loan Banks          55,311    65,283    68,771    69,405    71,534
  Other borrowings     27,995    24,872    23,777    23,994    20,752
  Other liabilities     8,401     8,069     7,880     5,463     4,614
  Minority
   interests(1)         1,959     1,973        15        15        13
----------------------------------------------------------------------
      Total
       liabilities    324,228   322,511   316,223   311,026   301,183
Stockholders' equity   26,468    26,156    27,616    22,596    22,350
----------------------------------------------------------------------
      Total
       liabilities
       and
       stockholders'
       equity        $350,696  $348,667  $343,839  $333,622  $323,533
======================================================================

(1) Primarily comprises perpetual non-cumulative preferred
    securities issued in March 2006 by Washington Mutual Preferred
    Funding, LLC, an indirect subsidiary of Washington Mutual, Inc.


WM-5

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

                                         Quarter Ended
----------------------------------------------------------------------
                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2006     2006     2005     2005      2005
----------------------------------------------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                  $26,156  $27,616  $22,596  $ 22,350  $21,767
Net income                   767      985      865       821      844
Cumulative effect from
 the adoption of
 Statement No. 156, net
 of income taxes(1)            -       35        -         -        -
Other comprehensive
 (loss) income, net of
 income taxes               (151)    (219)     (91)     (158)      98
Cash dividends declared
 on common stock            (486)    (499)    (480)     (419)    (409)
Common stock repurchased
 and retired                   -   (2,108)    (723)      (98)       -
Common stock issued for
 acquisition                   -        -    5,030         -        -
Common stock issued          182      346      419       100       50
------------------------- -------- -------- -------- --------- -------
Balance, end of period   $26,468  $26,156  $27,616  $ 22,596  $22,350
========================= ======== ======== ======== ========= =======

(1) As of January 1, 2006, the Company prospectively applied Statement
    of Financial Accounting Standards No. 156, Accounting for
    Servicing of Financial Assets ("Statement"). This Statement amends
    Statement No. 140, Accounting for Transfers and Servicing of
    Financial Assets and Extinguishments of Liabilities, and permits
    an entity to choose either to continue the practice of amortizing
    servicing assets and assess such assets for impairment, or to
    report servicing assets at fair value. The Company has elected to
    report all classes of servicing assets at fair value. This
    Statement also permits the one-time transfer of available-for-sale
    securities being utilized as MSR risk management instruments to
    trading securities.  The cumulative effects, net of income taxes,
    resulted in a $29 million increase to January 1, 2006 retained
    earnings from the MSR fair value election and a $6 million
    increase to January 1, 2006 accumulated other comprehensive income
    from the transfer of AFS securities, designated as MSR risk
    management instruments, to the trading portfolio.


WM-6

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

                                       Quarter Ended
----------------------------------------------------------------------
                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                        2006      2006      2005      2005      2005
----------------------------------------------------------------------
RETAIL BANKING GROUP
 Condensed income
  statement:
   Net interest
    income           $  1,509  $  1,523  $  1,457  $  1,417  $  1,458
   Provision for
    loan and lease
    losses                 37        50        42        47        40
   Noninterest
    income                732       674       689       653       619
   Inter-segment
    revenue                19        14         8        12        11
   Noninterest
    expense             1,138     1,107     1,120     1,080     1,042
--------------------- --------- --------- --------- --------- --------
   Income from
    continuing
    operations
    before income
    taxes               1,085     1,054       992       955     1,006
   Income taxes           415       403       372       363       381
--------------------- --------- --------- --------- --------- --------
     Income from
      continuing
      operations          670       651       620       592       625
     Income from
      discontinued
      operations, net
      of taxes              8         9         8         8        11
--------------------- --------- --------- --------- --------- --------
        Net income   $    678  $    660  $    628  $    600  $    636
===================== ========= ========= ========= ========= ========
 Performance and
  other data:
   Efficiency
    ratio(1)            50.33%    50.07%    52.01%    51.86%    49.87%
   Average loans     $195,985  $189,142  $183,780  $179,361  $181,396
   Average assets     208,869   202,235   196,872   191,929   194,029
   Average deposits:
     Checking deposits:
     Noninterest
      bearing          21,418    20,346    19,953    19,350    18,868
     Interest
      bearing          37,518    40,343    43,192    45,186    47,531
                      --------- --------- --------- --------- --------
     Total checking
      deposits         58,936    60,689    63,145    64,536    66,399
     Savings and
      money market
      deposits         38,143    37,433    36,594    35,517    34,875
     Time deposits     41,724    40,940    40,473    38,688    34,265
                      --------- --------- --------- --------- --------
       Average total
        deposits      138,803   139,062   140,212   138,741   135,539
   Loan volume         10,488     7,255    11,563    11,191    11,704
   Employees at end
    of period          29,311    30,336    30,532    30,123    29,046
CARD SERVICES GROUP
 Managed basis(2)
  Condensed income
   statement:
   Net interest
    income           $    610  $    614  $    637
   Provision for loan
    and lease losses      417       330       454
   Noninterest income     387       345       352
   Inter-segment expense    1         -         -
   Noninterest expense    283       289       268
--------------------- --------- --------- ----------------------------
   Income before income
    taxes                 296       340       267
   Income taxes           113       130       101
--------------------- --------- --------- ----------------------------
       Net income    $    183  $    210  $    166
===================== ========= ========= ============================
  Performance and
   other data:
   Efficiency ratio (1) 28.35%    30.15%    27.08%
   Average loans     $ 20,473  $ 20,086  $ 19,472
   Average assets      23,044    22,764    22,198
   Employees at end of
    period              2,627     2,871     3,124
 Securitization
  adjustments
  Condensed income
   statement:
   Net interest
    income           $   (405) $   (432) $   (409)
   Provision for loan
    and lease losses     (217)     (225)     (259)
   Noninterest income     188       207       150
  Performance and
   other data:
   Average loans      (11,565)  (12,107)  (11,011)
   Average assets      (9,753)  (10,219)   (9,267)
 Adjusted basis
  Condensed income
   statement:
   Net interest
    income           $    205  $    182  $    228
   Provision for loan
    and lease losses      200       105       195
   Noninterest income     575       552       502
   Inter-segment
    expense                 1         -         -
   Noninterest expense    283       289       268
--------------------- --------- --------- ----------------------------
   Income before income
    taxes                 296       340       267
   Income taxes           113       130       101
--------------------- --------- --------- ----------------------------
       Net income    $    183  $    210  $    166
===================== ========= ========= ============================
  Performance and
   other data:
   Average loans     $  8,908  $  7,979  $  8,461
   Average assets      13,291    12,545    12,931
COMMERCIAL GROUP(3)
  Condensed income
   statement:
   Net interest
    income           $    203  $    199  $    222  $    222  $    218
   Provision for loan
    and lease losses        1         1         1         1         1
   Noninterest income      17        13       109         8         3
   Noninterest expense     57        68        66        63        57
--------------------- --------- --------- --------- --------- --------
   Income before
    income taxes          162       143       264       166       163
   Income taxes            62        54       100        62        61
--------------------- --------- --------- --------- --------- --------
       Net income    $    100  $     89  $    164  $    104  $    102
===================== ========= ========= ========= ========= ========
  Performance and
   other data:
      Efficiency
       ratio(1)         25.94%    32.24%    19.85%    27.44%    25.84%
   Average loans     $ 31,625  $ 31,011  $ 30,950  $ 30,455  $ 29,597
   Average assets      34,188    33,833    34,443    33,854    33,078
   Average deposits     2,243     2,263     2,428     2,485     2,462
   Loan volume          2,961     2,769     2,932     3,003     2,864
   Employees at end
    of period           1,253     1,332     1,318     1,258     1,284



                                                   Six Months Ended
----------------------------------------------------------------------
                                                  June 30,   June 30,
                                                    2006       2005
------------------------------------------------- ----------- --------
RETAIL BANKING GROUP
    Condensed income statement:
        Net interest income                      $    3,031  $  2,859
        Provision for loan and lease losses              87        77
        Noninterest income                            1,406     1,193
        Inter-segment revenue                            33        22
        Noninterest expense                           2,244     2,054
------------------------------------------------- ----------- --------
        Income from continuing operations before
         income taxes                                 2,139     1,943
        Income taxes                                    817       736
------------------------------------------------- ----------- --------
           Income from continuing operations          1,322     1,207
           Income from discontinued operations,
            net of taxes                                 17        23
------------------------------------------------- ----------- --------
                Net income                       $    1,339  $  1,230
================================================= =========== ========
    Performance and other data:
        Efficiency ratio(1)                           50.20%    50.41%
        Average loans                            $  192,587  $179,526
        Average assets                              205,574   192,273
        Average deposits:
           Checking deposits:
           Noninterest bearing                       20,885    18,232
           Interest bearing                          38,923    48,648
                                                  ----------- --------
           Total checking deposits                   59,808    66,880
           Savings and money market deposits         37,790    35,484
           Time deposits                             41,334    31,904
                                                  ----------- --------
              Average total deposits                138,932   134,268
        Loan volume                                  17,743    24,197
        Employees at end of period                   29,311    29,046
CARD SERVICES GROUP
  Managed basis(2)
    Condensed income statement:
     Net interest income                         $    1,223
     Provision for loan and lease losses                747
     Noninterest income                                 733
     Inter-segment expense                                2
     Noninterest expense                                571
------------------------------------------------- --------------------
     Income before income taxes                         636
     Income taxes                                       243
------------------------------------------------- --------------------
                Net income                       $      393
================================================= ====================
    Performance and other data:
     Efficiency ratio (1)                             29.24%
     Average loans                               $   20,281
     Average assets                                  22,905
     Employees at end of period                       2,627
  Securitization adjustments
    Condensed income statement:
     Net interest income                         $     (837)
     Provision for loan and lease losses               (442)
     Noninterest income                                 395
    Performance and other data:
     Average loans                                  (11,835)
     Average assets                                  (9,985)
  Adjusted basis
    Condensed income statement:
     Net interest income                         $      386
     Provision for loan and lease losses                305
     Noninterest income                               1,128
     Inter-segment expense                                2
     Noninterest expense                                571
------------------------------------------------- --------------------
     Income before income taxes                         636
     Income taxes                                       243
------------------------------------------------- --------------------
                Net income                       $      393
================================================= ====================
    Performance and other data:
     Average loans                               $    8,446
     Average assets                                  12,920
COMMERCIAL GROUP(3)
    Condensed income statement:
     Net interest income                         $      403  $    446
     Provision for loan and lease losses                  2         2
     Noninterest income                                  29        78
     Noninterest expense                                126       111
------------------------------------------------- ----------- --------
     Income before income taxes                         304       411
     Income taxes                                       116       155
------------------------------------------------- ----------- --------
                Net income                       $      188  $    256
================================================= =========== ========
    Performance and other data:
     Efficiency ratio(1)                              29.03%    21.21%
     Average loans                               $   31,260  $ 29,580
     Average assets                                  33,952    32,904
     Average deposits                                 2,253     2,728
     Loan volume                                      5,731     5,297
     Employees at end of period                       1,253     1,284


(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) The managed basis presentation treats securitized and sold credit
    card receivables as if they were still on the balance sheet. The
    Company uses this basis in assessing the overall performance of
    this operating segment. Under this presentation, loans securitized
    and sold are added back to the balance sheet and the related
    interest, fee income and credit losses are added back to the
    income statement.  These securitization adjustments are eliminated
    in the reconciliation of management accounting methodologies to
    the Company's GAAP financial results.

(3) Effective January 1, 2006, the Company reorganized its single
    family residential mortgage lending operations.  This
    reorganization combined the Company's subprime mortgage
    origination business, Long Beach Mortgage Company, as well as its
    Mortgage Banker Finance lending operations with the Home Loans
    Group.  Previously, these operations were reported within the
    Commercial Group.  Prior periods have been recast to reflect this
    change in organization.


WM-7

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

                                       Quarter Ended
----------------------------------------------------------------------
(This table is
continued from
"WM-6".)               June 30,  Mar. 31,  Dec. 31, Sept. 30, June 30,
                        2006      2006      2005      2005      2005
--------------------- --------- --------- --------- --------- --------
HOME LOANS GROUP(1)
  Condensed income
   statement:
      Net interest
       income        $    206  $    269  $    415  $    480  $    449
      Provision for
       loan and lease
       losses               1         1         1         1         -
      Noninterest
       income             453       408       324       659       668
      Inter-segment
       expense             18        14         8        12        11
      Noninterest
       expense            588       599       656       640       637
--------------------- --------- --------- --------- --------- --------
      Income before
       income taxes        52        63        74       486       469
      Income taxes         20        24        29       183       177
--------------------- --------- --------- --------- --------- --------
        Net income   $     32  $     39  $     45  $    303  $    292
===================== ========= ========= ========= ========= ========
  Performance and
   other data:
      Efficiency
       ratio(2)         91.82%    90.19%    89.42%    56.62%    57.48%
      Average loans  $ 30,742  $ 34,586  $ 51,073  $ 53,424  $ 48,040
      Average assets   58,440    64,171    78,365    75,138    68,928
      Average
       deposits        20,124    16,530    19,134    21,563    19,119
      Loan volume      41,364    44,998    48,701    56,471    53,030
      Employees at
       end of period   13,964    16,026    16,183    15,677    15,048
CORPORATE
 SUPPORT/TREASURY AND
 OTHER
  Condensed income
   statement:
      Net interest
       expense       $   (182) $   (175) $   (196) $   (229) $   (230)
      Noninterest
       income
       (expense)          (81)      153        20       (62)      (49)
      Noninterest
       expense            163        75       104        77        31
      Minority
       interest
       expense             37         -         -         -         -
--------------------- --------- --------- --------- --------- --------
      Income (loss)
       before income
       taxes             (463)      (97)     (280)     (368)     (310)
      Income taxes
       (benefit)         (179)      (52)     (111)     (150)     (126)
--------------------- --------- --------- --------- --------- --------
          Net
          income
           (loss)    $   (284) $    (45) $   (169) $   (218) $   (184)
===================== ========= ========= ========= ========= ========
  Performance and
   other data:
    Average loans    $  1,068  $  1,142  $  1,126  $  1,073  $  1,030
    Average assets     36,325    33,479    29,036    28,098    26,575
    Average
     deposits          39,082    33,179    35,025    25,531    26,401
    Loan volume            82        24        96        67        20
    Employees at
     end of period      9,092     9,816     9,641     9,156     8,999

RECONCILING
 ADJUSTMENTS
  Condensed income
   statement:
      Net interest
       income(3)     $    119  $    119  $    115  $    115  $    114
      Provision
       (reversal of
       reserve) for
       loan and lease
       losses(4)          (15)      (75)      (22)        3       (10)
      Noninterest
       income
       (expense)(5)      (118)     (162)     (118)      (50)     (135)
--------------------- --------- --------- --------- --------- --------
      Income (loss)
       before income
       taxes               16        32        19        62       (11)
      Income taxes
       (benefit)(6)       (42)        -       (12)       30        (9)
--------------------- --------- --------- --------- --------- --------
         Net income
          (loss)     $     58  $     32  $     31  $     32  $     (2)
===================== ========= ========= ========= ========= ========
  Performance and
   other data:
      Average
       loans(7)      $ (1,458) $ (1,534) $ (1,516) $ (1,550) $ (1,541)
      Average
       assets(7)(8)    (1,552)   (1,701)   (1,716)   (1,727)   (1,765)

TOTAL CONSOLIDATED
  Condensed income
   statement:
      Net interest
       income        $  2,060  $  2,117  $  2,241  $  2,005  $  2,009
      Provision for
       loan and lease
       losses             224        82       217        52        31
      Noninterest
       income           1,578     1,638     1,526     1,208     1,106
      Noninterest
       expense          2,229     2,138     2,214     1,860     1,767
      Minority
       interest
       expense             37         -         -         -         -
--------------------- --------- --------- --------- --------- --------
      Income from
       continuing
       operations
       before income
       taxes            1,148     1,535     1,336     1,301     1,317
      Income taxes        389       559       479       488       484
--------------------- --------- --------- --------- --------- --------
        Income from
         continuing
         operations       759       976       857       813       833
        Income from
         discontinued
         operations,
         net of taxes       8         9         8         8        11
--------------------- --------- --------- --------- --------- --------
          Net income $    767  $    985  $    865  $    821  $    844
===================== ========= ========= ========= ========= ========
  Performance and
   other data:
      Efficiency
       ratio(2)         61.27%    56.95%    58.75%    57.88%    56.70%
      Average loans  $266,870  $262,326  $273,874  $262,763  $258,522
      Average assets  349,561   344,562   349,931   327,292   320,845
      Average
       deposits       200,252   191,034   196,799   188,320   183,521
      Loan volume      54,895    55,046    63,292    70,732    67,618
      Employees at
       end of period   56,247    60,381    60,798    56,214    54,377





                                                    Six Months Ended
----------------------------------------------------------------------
(This table is continued from "WM-6".)               June 30, June 30,
                                                      2006      2005
--------------------------------------------------- --------- --------
HOME LOANS GROUP(1)
    Condensed income statement:
        Net interest income                        $    475  $    848
        Provision for loan and lease losses               3         2
        Noninterest income                              861     1,415
        Inter-segment expense                            31        22
        Noninterest expense                           1,187     1,247
--------------------------------------------------- --------- --------
        Income before income taxes                      115       992
        Income taxes                                     44       373
--------------------------------------------------- --------- --------
                Net income                         $     71  $    619
=================================================== ========= ========
    Performance and other data:
        Efficiency ratio(2)                           90.99%    55.67%
        Average loans                              $ 32,653  $ 43,497
        Average assets                               61,289    64,991
        Average deposits                             18,337    18,268
        Loan volume                                  86,362    97,525
        Employees at end of period                   13,964    15,048
CORPORATE SUPPORT/TREASURY AND OTHER
    Condensed income statement:
        Net interest expense                       $   (358) $   (408)
        Noninterest income (expense)                     73      (124)
        Noninterest expense                             239       136
        Minority interest expense                        37         -
--------------------------------------------------- --------- --------
        Income (loss) before income taxes              (561)     (668)
        Income taxes (benefit)                         (235)     (270)
--------------------------------------------------- --------- --------
                Net income (loss)                  $   (326) $   (398)
=================================================== ========= ========
      Performance and other data:
         Average loans                             $  1,160  $  1,054
         Average assets                              34,966    26,159
         Average deposits                            36,146    24,112
         Loan volume                                    105       114
         Employees at end of period                   9,092     8,999

RECONCILING ADJUSTMENTS
    Condensed income statement:
        Net interest income(3)                     $    239  $    227
        Provision (reversal of reserve) for loan
         and lease losses(4)                            (91)      (34)
        Noninterest income (expense)(5)                (281)     (198)
--------------------------------------------------- --------- --------
        Income (loss) before income taxes                49        63
        Income taxes (benefit)(6)                       (38)       25
--------------------------------------------------- --------- --------
                Net income (loss)                  $     87  $     38
=================================================== ========= ========
    Performance and other data:
        Average loans(7)                           $ (1,496) $ (1,548)
        Average assets(7)(8)                         (1,626)   (1,783)

TOTAL CONSOLIDATED
    Condensed income statement:
        Net interest income                        $  4,176  $  3,972
        Provision for loan and lease losses             306        47
        Noninterest income                            3,216     2,364
        Noninterest expense                           4,367     3,548
        Minority interest expense                        37         -
--------------------------------------------------- --------- --------
        Income from continuing operations before
         income taxes                                 2,682     2,741
        Income taxes                                    947     1,019
--------------------------------------------------- --------- --------
           Income from continuing operations          1,735     1,722
           Income from discontinued operations, net
            of taxes                                     17        23
--------------------------------------------------- --------- --------
                Net income                         $  1,752  $  1,745
=================================================== ========= ========
    Performance and other data:
        Efficiency ratio(2)                           59.08%    55.99%
        Average loans                              $264,610  $252,109
        Average assets                              347,075   314,544
        Average deposits                            195,668   179,376
        Loan volume                                 109,941   127,133
        Employees at end of period                   56,247    54,377


(1) See note 3 on preceding table.

(2) See note 1 on preceding table.

(3) Represents the difference between home loan premium amortization
    recorded by the Retail Banking Group and the amount recognized in
    the Company's Consolidated Statements of Income.  For management
    reporting purposes, loans that are held in portfolio by the Retail
    Banking Group are treated as if they are purchased from the Home
    Loans Group.  Since the cost basis of these loans includes an
    assumed profit factor paid to the Home Loans Group, the
    amortization of loan premiums recorded by the Retail Banking Group
    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
    primarily  recorded by the Home Loans Group and the gain from
    mortgage loans recognized in the Company's Consolidated Statements
    of Income.  A substantial amount of 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 Group recognized from the transfer of
    portfolio loans from the Home Loans Group.

(8) Includes the impact to the allowance for 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                       Six Months Ended
----------------------------------------------------------------------
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,      June 30, June 30,
  2006     2006    2005       2005     2005          2006    2005
----------------------------------------------------------------------
 $(94)    $(167)  $(200)     $(177)   $(224)        ($130)  ($235)
----------------------------------------------------------------------


WM-8

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

                                      Quarter Ended
----------------------------------------------------------------------
                         June 30, 2006            Mar. 31, 2006
                     ----------------------- ------------------------
                                     Interest                 Interest
                                     Income/                  Income/
                     Balance   Rate  Expense   Balance   Rate Expense
----------------------------------------------------------------------
Average Balances and
 Weighted Average
 Interest Rates
Assets
Interest-earning
 assets:
 Federal funds sold
  and securities
  purchased under
  agreements to
  resell             $  4,413  4.99 % $   56  $  3,754   4.62 % $   43
 Trading assets         8,595  7.69      165    11,692   6.80      198
 Available-for-sale
  securities(1):
    Mortgage-backed
     securities        21,840  5.34      292    20,144   5.29      266
    Investment
     securities         6,215  4.91       76     4,845   4.62       56
 Loans held for
  sale(2)              24,536  6.48      398    29,821   6.25      466
 Loans held in
  portfolio(2):
    Loans secured by
     real estate:
       Home(3)        125,559  5.77    1,809   117,720   5.58    1,643
       Specialty
        mortgage
        finance(4)     19,603  6.19      304    19,956   5.92      295
--------------------- --------         ------  --------         ------
         Total home
          loans       145,162  5.82    2,113   137,676   5.63    1,938
       Home equity
        loans and
        lines of
        credit         52,262  7.29      950    51,331   6.97      884
       Home
        construction
        (5)             2,068  6.47       33     2,059   6.34       33
       Multi-family    26,291  6.23      410    25,758   5.92      382
       Other real
        estate          5,585  6.97       98     5,157   6.84       88
--------------------- --------         ------  --------         ------
         Total loans
          secured by
          real estate 231,368  6.23    3,604   221,981   6.01    3,325
    Consumer:
       Credit card      8,448 11.28      238     7,808  10.74      206
       Other              594  9.74       14       622  11.03       17
    Commercial          1,924  5.87       28     2,094   5.42       28
--------------------- --------         ------  --------         ------
         Total loans
          held in
          portfolio   242,334  6.42    3,884   232,505   6.18    3,576
Other(6)                5,306  4.80       64     5,016   4.17       52
--------------------- --------         ------  --------         ------
         Total
          interest-
          earning
          assets      313,239  6.30    4,935   307,777   6.07    4,657
Noninterest-earning
 assets:
 Mortgage servicing
  rights                9,003                   8,260
 Goodwill               8,302                   8,298
 Other assets(7)       19,017                  20,227
--------------------- --------                --------
         Total
          assets     $349,561                $344,562
===================== ========                ========
Liabilities
Interest-bearing
 liabilities:
 Deposits:
    Interest-bearing
     checking
     deposits        $ 37,603  2.61     245  $ 40,436   2.29     228
    Savings and money
     market deposits   48,095  2.82     339    44,816   2.38     263
    Time deposits      79,541  4.39     877    73,182   4.02     730
--------------------- --------        ------  --------         ------
         Total
          interest-
          bearing
          deposits    165,239  3.53   1,461   158,434   3.11   1,221
 Federal funds
  purchased and
  commercial paper      7,767  4.97      97     7,463   4.46      83
 Securities sold
  under agreements to
  repurchase           17,923  4.97     225    15,280   4.46     170
 Advances from
  Federal Home Loan
  Banks                60,862  4.85     745    66,995   4.46     746
 Other                 26,239  5.27     347    26,636   4.81     320
--------------------- --------        ------  --------         ------
       Total
        interest-
        bearing
        liabilities   278,030  4.12   2,875   274,808   3.72   2,540
Noninterest-bearing
 sources:
 Noninterest-bearing
  deposits             35,013                  32,600
 Other liabilities(8)   7,621                   8,804
 Minority interests     1,965                     552
 Stockholders' equity  26,932                  27,798
--------------------- --------                --------
       Total
        liabilities
        and
        stockholders'
        equity       $349,561                $344,562
===================== ========                ========
 Net interest spread
  and net interest
  income                       2.18  $2,060             2.35  $2,117
                                      ======                   ======
 Impact of
  noninterest-bearing
  sources                      0.47                     0.40
 Net interest margin           2.65                     2.75



----------------------------------------------------------------------
                                                   June 30, 2005
                                             -------------------------
                                                              Interest
                                                              Income/
                                              Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and securities
    purchased under
    agreements to resell                     $  1,972   2.96%  $   15
   Trading assets                               6,252   5.85       91
   Available-for-sale securities(1):
      Mortgage-backed securities               15,065   4.67      176
      Investment securities                     4,764   4.84       58
   Loans held for sale(2)                      44,884   5.16      580
   Loans held in portfolio(2):
      Loans secured by real estate:
         Home(3)                              111,272   4.88    1,358
         Specialty mortgage finance(4)         20,913   5.90      309
--------------------------------------------- --------          ------
           Total home loans                   132,185   5.04    1,667
         Home equity loans and lines of
          credit                               47,200   5.79      682
         Home construction(5)                   2,047   6.43       33
         Multi-family                          23,715   5.27      312
         Other real estate                      5,092   6.81       88
--------------------------------------------- --------          ------
           Total loans secured by real estate 210,239   5.29    2,782
      Consumer:
         Credit card                                -      -        -
         Other                                    722  10.75       19
      Commercial                                2,677   4.73       32
--------------------------------------------- --------          ------
           Total loans held in portfolio      213,638   5.31    2,833
  Other(6)                                      4,266   3.45       36
--------------------------------------------- --------          ------
           Total interest-earning assets      290,841   5.21    3,789
Noninterest-earning assets:
   Mortgage servicing rights                    6,195
   Goodwill                                     6,196
   Other assets(7)                             17,613
--------------------------------------------- --------
           Total assets                      $320,845
============================================= ========
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits     $ 47,654   1.86      221
      Savings and money market deposits        41,424   1.60      165
      Time deposits                            60,066   3.10      466
--------------------------------------------- --------          ------
           Total interest-bearing deposits    149,144   2.28      852
   Federal funds purchased and commercial
    paper                                       2,749   3.09       21
   Securities sold under agreements to
    repurchase                                 16,390   3.13      130
   Advances from Federal Home Loan Banks       69,512   3.21      563
   Other                                       21,491   4.00      214
--------------------------------------------- --------          ------
           Total interest-bearing liabilities 259,286   2.74    1,780
Noninterest-bearing sources:
   Noninterest-bearing deposits                34,377
   Other liabilities(8)                         5,155
   Minority interests                              13
   Stockholders' equity                        22,014
--------------------------------------------- --------
           Total liabilities and
            stockholders' equity             $320,845
============================================= ========
   Net interest spread and net interest
    income                                              2.47   $2,009
                                                                ======
   Impact of noninterest-bearing sources                0.30
   Net interest margin                                  2.77


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

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

(3) Capitalized interest recognized in earnings that resulted from
    negative amortization within the Option ARM portfolio totaled
    $239 million, $189 million and $50 million for the three months
    ended June 30, 2006, March 31, 2006 and June 30, 2005.

(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 (other than loans)
    and related income, if any, are included within this category.

(7) Includes assets of discontinued operations.

(8) Includes liabilities of discontinued operations.


WM-9

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

                                        Six Months Ended
----------------------------------------------------------------------
                             June 30, 2006            June 30, 2005
                        -----------------------  ---------------------
                                       Interest               Interest
                                        Income/                Income/
                        Balance  Rate   Expense  Balance  Rate Expense
----------------------------------------------------------------------
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning
 assets:
  Federal funds sold
   and securities
   purchased under
   agreements to
   resell                $4,086   4.82%    $99    $1,665   2.80%  $24
  Trading assets         10,135   7.18     363     5,984   5.70   170
  Available-for-sale
   securities(1):
     Mortgage-backed
      securities         20,997   5.31     558    15,275   4.56   348
     Investment
      securities          5,534   4.78     132     4,696   4.64   109
  Loans held for
   sale(2)               27,164   6.36     864    41,613   5.06 1,053
  Loans held in
   portfolio(2):
     Loans secured by
      real estate:
        Home(3)         121,661   5.68   3,452   110,705   4.77 2,639
        Specialty
         mortgage
         finance(4)      19,779   6.06     599    19,740   5.82   575
-------------------------------         ------   -------        -----
           Total home
            loans       141,440   5.73   4,051   130,445   4.93 3,214
        Home equity
         loans and
         lines of
         credit          51,800   7.13   1,834    45,947   5.62 1,283
        Home
         construction
         (5)              2,063   6.41      66     2,144   6.09    65
        Multi-family     26,026   6.08     791    23,194   5.17   600
        Other real
         estate           5,372   6.90     186     5,257   6.76   178
-------------------------------         ------   -------        -----
           Total loans
            secured
            by real
            estate      226,701   6.12   6,928   206,987   5.17 5,340
     Consumer:
        Credit card       8,130  11.02     444         -      -     -
        Other               607  10.40      32       746  10.62    40
     Commercial
      business            2,008   5.63      56     2,763   4.99    68
-------------------------------         ------   -------        -----
           Total loans
            held in
            portfolio   237,446   6.30   7,460   210,496   5.18 5,448
 Other(6)                 5,161   4.50     116     4,242   3.36    71
-------------------------------         ------   -------        -----
           Total
            interest-
            earning
            assets      310,523   6.19   9,592   283,971   5.09 7,223
Noninterest-earning
 assets:
  Mortgage servicing
   rights                 8,634                    6,143
  Goodwill                8,300                    6,196
  Other assets(7)        19,618                   18,234
-------------------------------                ---------
          Total assets $347,075                 $314,544
===============================                =========
Liabilities
Interest-bearing
 liabilities:
  Deposits:
     Interest-bearing
      checking
      deposits          $39,012   2.45     473   $48,780   1.74   421
     Savings and money
      market deposits    46,464   2.61     602    41,709   1.51   312
     Time deposits       76,379   4.22   1,607    55,421   2.95   815
-------------------------------         ------   -------        -----
          Total
           interest-
           bearing
           deposits     161,855   3.33   2,682   145,910   2.13 1,548
  Federal funds
   purchased and
   commercial paper       7,616   4.72     179     3,116   2.75    43
  Securities sold under
   agreements to
   repurchase            16,608   4.74     396    16,505   2.89   240
  Advances from Federal
   Home Loan Banks       63,912   4.65   1,491    68,059   3.02 1,032
  Other                  26,437   5.04     668    19,954   3.90   388
-------------------------------         ------   -------        -----
          Total
           interest-
           bearing
           liabilities  276,428   3.92   5,416   253,544   2.57 3,251
Noninterest-bearing
 sources:
  Noninterest-bearing
  deposits               33,813                   33,466
  Other liabilities(8)    8,210                    5,673
  Minority interests      1,262                       13
  Stockholders' equity   27,362                   21,848
-------------------------------                 --------
         Total
          liabilities
          and
          stockholders'
          equity       $347,075                 $314,544
===============================                 ========
  Net interest spread
   and net interest
   income                  2.27  $4,176             2.52 $3,972
                                       =======                  ======
  Impact of
   noninterest-
   bearing sources                0.43                     0.28
  Net interest margin             2.70                     2.80
_______________________________

(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) Capitalized interest recognized in earnings that resulted from
    negative amortization within the Option ARM portfolio totaled $428
    million and $72 million for the six months ended June 30, 2006 and
    June 30, 2005.

(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 (other than
    loans) and related income, if any, are included within this
    category.

(7) Includes assets of discontinued operations.

(8) Includes liabilities of discontinued operations.


WM-10

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

                       Change from
                       March 31, 2006        June 30,      Mar. 31,
                       to June 30, 2006        2006         2006

----------------------------------------------------------------------
Deposits
   Retail deposits:
    Checking deposits:
     Noninterest bearing      $72            $22,450      $22,378
     Interest bearing      (3,331)            35,958       39,289
----------------------------------------------------------------------
            Total checking
            deposits       (3,259)            58,408       61,667
      Savings and money market
       deposits              (533)            37,664       38,197
      Time deposits(1)      2,151             43,685       41,534
----------------------------------------------------------------------
            Total retail
             deposits      (1,641)           139,757      141,398
      Commercial business
       deposits             1,066             15,625       14,559
      Wholesale deposits    5,747             37,024       31,277
      Custodial and escrow
       deposits(2)           (616)            12,152       12,768
----------------------------------------------------------------------
            Total deposits $4,556           $204,558     $200,002
======================================================================

(1) Weighted average remaining maturity of time deposits was 10 months
    at  June 30, 2006 and March 31, 2006, 11 months at December 31,
    2005, 12 months at September 30, 2005 and 13 months at June 30,
    2005.

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

                                 June 30,      Mar. 31,    Dec. 31,
                                  2006          2006        2005
----------------------------------------------------------------------
Retail Deposit Accounts(1)
     Checking                  10,627,854    10,223,664   9,883,507
     Money market and savings   6,161,187     5,929,653   5,694,102
----------------------------------------------------------------------
            Total transaction
             accounts, end of
             period(2)         16,789,041    16,153,317  15,577,609
======================================================================

     Net change in checking
      accounts                    404,190       340,157     203,190
     Net change in total
      transaction accounts        635,724       575,708     337,232

_______________________________

(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.


                                  June 30,      Mar. 31,    Dec. 31,
                                   2006          2006        2005
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of period       2,168         2,140       2,051
     Stores opened during the
      quarter                        35            29          97(1)
     Stores closed during the
      quarter                        (2)(1)        (1)         (8)
----------------------------------------------------------------------
Stores, end of period             2,201         2,168       2,140
======================================================================

(1) Includes two retail stores acquired through the merger with
    Providian Financial Corporation.  These stores were not considered
    to be an integral component of Washington Mutual's retail banking
    franchise and were subsequently sold in April of 2006.

                          Dec. 31,       Sept. 30,     June 30,
                           2005            2005         2005

----------------------------------------------------------------------
Deposits
 Retail deposits:
  Checking deposits:
   Noninterest bearing     $20,752        $20,622       $19,093
   Interest bearing         42,253         44,294        46,031
----------------------------------------------------------------------
            Total checking
             deposits       63,005         64,916        65,124
      Savings and money market
       deposits             36,664         35,579        34,514
      Time deposits(1)      40,359         40,476        36,162
----------------------------------------------------------------------
            Total retail
             deposits      140,028        140,971       135,800
      Commercial business
       deposits             11,459          9,758         9,648
      Wholesale deposits    29,917         24,534        23,638
      Custodial and escrow
       deposits(2)          11,763         15,149        15,231
----------------------------------------------------------------------
            Total
             deposits     $193,167       $190,412      $184,317
======================================================================

(1)  Weighted average remaining maturity of time deposits was 10
     months at  June 30, 2006 and March 31, 2006, 11 months at
     December 31, 2005, 12 months at September 30, 2005 and 13 months
     at June 30, 2005.

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

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

     Net change in checking accounts     253,095         244,028
     Net change in total transaction
      accounts                           418,064         388,212

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

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


                                         Sept. 30,    June 30,
                                          2005         2005
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of period               1,997        1,968
     Stores opened during the quarter        56           30
     Stores closed during the quarter        (2)          (1)
----------------------------------------------------------------------
Stores, end of period                     2,051        1,997
======================================================================

(1) Includes two retail stores acquired through the merger with
    Providian Financial Corporation.  These stores were not considered
    to be an integral component of Washington Mutual's retail banking
    franchise and were subsequently sold in April of 2006.


WM-11

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

                                        Quarter Ended
----------------------------------------------------------------------
                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                            2006     2006     2005     2005     2005
----------------------------------------------------------------------
Loan Volume
   Home loans:
    Short-term adjustable-
     rate loans(1):
      Option ARMs         $11,256   $8,777  $12,565  $16,353  $19,564
      Other ARMs            1,859    2,943    1,222    1,237      367
----------------------------------------------------------------------
         Total short-term
          adjustable-rate
          loans            13,115   11,720   13,787   17,590   19,931
    Medium-term
     adjustable-rate
     loans(2)              16,041   14,865   14,581   16,454   13,388
    Fixed-rate loans       13,695   17,605   22,061   22,098   20,082
----------------------------------------------------------------------
         Total home loan
          volume(3)        42,851   44,190   50,429   56,142   53,401
   Home equity loans and
    lines of credit         8,251    7,306    9,118   10,828   10,888
   Home construction
    loans(4)                  421      493      479      370      258
   Multi-family             2,230    2,034    2,595    2,580    2,459
   Other real estate          787      716      419      465      371
----------------------------------------------------------------------
         Total loans
          secured by real
          estate           54,540   54,739   63,040   70,385   67,377
   Consumer(5)                 36       49       79      182       82
   Commercial                 319      258      173      165      159
----------------------------------------------------------------------
         Total loan volume$54,895  $55,046  $63,292  $70,732  $67,618
======================================================================
Loan Volume by Channel
   Retail                 $23,709  $22,580  $27,676  $32,614  $30,565
   Wholesale               14,798   16,722   17,190   20,000   20,323
   Purchased/correspondent 16,388   15,744   18,426   18,118   16,730
----------------------------------------------------------------------
         Total loan volume
          by channel      $54,895  $55,046  $63,292  $70,732  $67,618
======================================================================
Refinancing Activity(6)
   Home loan refinancing  $22,414  $23,756  $27,435  $29,084  $27,583
   Home equity loans and
    lines of credit and
    consumer                  161      211      219      245      475
   Home construction loans     17       17       12       17       13
   Multi-family and other
    real estate               799      774      831      738      700
----------------------------------------------------------------------
        Total refinancing $23,391  $24,758  $28,497  $30,084  $28,771
======================================================================

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 $104 million, $266 million, $304 million, $466 million and
$477 million for the quarters ended June 30, 2006, March 31, 2006,
December 31, 2005, September 30, 2005 and June 30, 2005.
_______________________________

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

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

(3) Includes specialty mortgage finance loans, which are comprised
    of purchased subprime home loans and subprime home loans
    originated by Long Beach Mortgage Company. Specialty mortgage
    finance loan volumes were $7.28 billion, $6.42 billion, $9.67
    billion, $8.41 billion and $8.75 billion for the three months
    ended June 30, 2006, March 31, 2006, December 31, 2005, September
    30, 2005 and June 30, 2005.

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

(5) Excludes credit card loan volume.

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


WM-12

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

                                                    Six Months Ended
----------------------------------------------------------------------
                                                    June 30,  June 30,
                                                       2006      2005
----------------------------------------------------------------------
Loan Volume
    Home loans:
    Short-term adjustable-rate loans(1):
      Option ARMs                                   $20,033   $35,208
      Other ARMs                                      4,802     1,341
----------------------------------------------------------------------
         Total short-term adjustable-rate loans      24,835    36,549
    Medium-term adjustable-rate loans(2)             30,906    26,796
    Fixed-rate loans                                 31,300    37,806
----------------------------------------------------------------------
         Total home loan volume(3)                   87,041   101,151
   Home equity loans and lines of credit             15,558    19,775
   Home construction loans(4)                           914       503
   Multi-family                                       4,264     4,580
   Other real estate                                  1,502       716
----------------------------------------------------------------------
         Total loans secured by real estate         109,279   126,725
   Consumer(5)                                           85       126
   Commercial                                           577       282
----------------------------------------------------------------------
         Total loan volume                         $109,941  $127,133
======================================================================
Loan Volume by Channel
   Retail                                           $46,289   $56,134
   Wholesale                                         31,520    37,039
   Purchased/correspondent                           32,132    33,960
----------------------------------------------------------------------
         Total loan volume by channel              $109,941  $127,133
======================================================================
Refinancing Activity(6)
   Home loan refinancing                            $46,170   $56,224
   Home equity loans and lines of credit and
    consumer                                            372       867
   Home construction loans                               34        23
   Multi-family and other real estate                 1,573     1,360
----------------------------------------------------------------------
         Total refinancing                          $48,149   $58,474
======================================================================

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 $371 million and $1.04 billion for the six months ended June
30, 2006 and June 30, 2005.
_______________________________

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

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

(3) Includes specialty mortgage finance loans, which are comprised
    of purchased subprime home loans and subprime home loans
    originated by Long Beach Mortgage Company. Specialty mortgage
    finance loan volumes were $13.70 billion and $16.41 billion for
    the six months ended June 30, 2006 and June 30, 2005.

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

(5) Excludes credit card loan volume.

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


WM-13

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

                                       Change from
                                    March 31, 2006  June 30,  Mar. 31,
                                  to June 30, 2006    2006      2006
                                 -------------------------------------
Loans by Product Type
   Loans held in portfolio:
    Loans secured by real estate:
     Home:
      Short-term adjustable-rate
       loans(1):
        Option ARMs(2)                    $(3,379)  $66,790   $70,169
        Other ARMs                            956    16,737    15,781
                                 -------------------------------------
           Total short-term
            adjustable-rate loans          (2,423)   83,527    85,950
      Medium-term adjustable-rate
       loans(3)                             2,641    52,032    49,391
      Fixed-rate loans                      1,482    10,142     8,660
                                 -------------------------------------
           Total home loans(4)              1,700   145,701   144,001
     Home equity loans and lines
      of credit                             1,109    52,981    51,872
     Home construction(5)                     (13)    2,082     2,095
     Multi-family                             598    26,749    26,151
     Other real estate                        184     5,537     5,353
                                 -------------------------------------
           Total loans secured by
            real estate                     3,578   233,050   229,472
    Consumer:
     Credit card                              545     8,451     7,906
     Other                                   (315)      287       602
    Commercial                               (309)    1,715     2,024
                                 -------------------------------------
           Total loans held in
            portfolio(6)                    3,499   243,503   240,004
   Less: allowance for loan and
    lease losses                              (21)   (1,663)   (1,642)
                                 -------------------------------------
           Total net loans held
            in portfolio                    3,478   241,840   238,362
   Loans held for sale(7)                  (1,678)   23,342    25,020
                                 -------------------------------------
           Total net loans                 $1,800  $265,182  $263,382
                                 =====================================


                                   Dec. 31,   Sept. 30,   June 30,
                                    2005        2005       2005
                                 -----------------------------------
Loans by Product Type
   Loans held in portfolio:
    Loans secured by real estate:
     Home:
      Short-term adjustable-rate
       loans(1):
        Option ARMs(2)              $70,191    $67,863      $66,533
        Other ARMs                   14,666     12,956       10,903
                                 -----------------------------------
           Total short-term
            adjustable-rate loans    84,857     80,819       77,436
      Medium-term adjustable-rate
       loans(3)                      41,511     43,610       43,499
      Fixed-rate loans                8,922      8,616        8,638
                                 -----------------------------------
           Total home loans(4)      135,290    133,045      129,573
     Home equity loans and lines
      of credit                      50,851     50,066       48,449
     Home construction(5)             2,037      2,019        2,037
     Multi-family                    25,601     25,014       24,240
     Other real estate                5,035      4,929        4,915
                                 -----------------------------------
           Total loans secured by
            real estate             218,814    215,073      209,214
    Consumer:
     Credit card                      8,043          -            -
     Other                              638        669          703
    Commercial                        2,137      2,452        2,820
                                 -----------------------------------
           Total loans held in
            portfolio(6)            229,632    218,194      212,737
   Less: allowance for loan and
    lease losses                     (1,695)    (1,264)      (1,243)
                                 -----------------------------------
           Total net loans held
            in portfolio            227,937    216,930      211,494
   Loans held for sale(7)            33,582     48,018       51,122
                                 -----------------------------------
           Total net loans         $261,519   $264,948     $262,616
                                 ===================================

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

(2) The total amount by which the unpaid principal balance ("UPB") of
    Option ARM loans exceeded their original principal amount was $461
    million at June 30, 2006, $291 million at March 31, 2006, $157
    million at December 31, 2005, $76 million at September 30, 2005
    and $34 million at June 30, 2005.

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

(4) Includes specialty mortgage finance loans, which are comprised 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 $20.50 billion,
    $20.24 billion, $21.15 billion, $21.16 billion and $20.17 billion
    at June 30, 2006, March 31, 2006, December 31, 2005, September 30,
    2005 and June 30, 2005.

(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 $1.62
    billion, $1.61 billion, $1.53 billion, $1.47 billion and $1.39
    billion at June 30, 2006, March 31, 2006, December 31, 2005,
    September 30, 2005 and June 30, 2005.

(7) Fair value of loans held for sale was $23.35 billion, $25.03
    billion, $33.70 billion, $48.14 billion and $51.39 billion as of
    June 30, 2006, March 31, 2006, December 31, 2005, September 30,
    2005 and June 30, 2005.


WM-14

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

                             Change from
                              Mar. 31,               Weighted
                                 2006                 Average
                             to June 30,  June 30,    Coupon
                                 2006       2006        Rate
                             -----------  --------  ---------
Selected Loans Secured by
 Real Estate and MBS
   Home loans held in
    portfolio:
     Short-term adjustable-
      rate loans(1):
       Option ARMs           $   (3,379) $ 66,790      6.73 %
       Other ARMs                   956    16,737      6.81
                              ----------  --------  ---------
         Total short-term
          adjustable-rate
          loans                  (2,423)   83,527      6.75
     Medium-term adjustable-
      rate loans(2)               2,641    52,032      5.68
     Fixed-rate loans             1,482    10,142      6.28
                              ----------  --------  ---------
         Total home loans
          held in portfolio       1,700   145,701      6.34
   Home equity loans and
    lines of credit:
     Short-term (Prime-based
      or treasury-based)(1)        (541)   36,640      8.33
     Fixed-rate loans             1,650    16,341      6.88
                              ----------  --------  ---------
         Total home equity
          loans and lines of
          credit                  1,109    52,981      7.88
   Multi-family loans held
    in portfolio:
     Short-term adjustable-
      rate loans(1):
       Option ARMs                 (251)    9,255      6.54
       Other ARMs                  (185)    6,095      6.66
                              ----------  --------  ---------
         Total short-term
          adjustable-rate
          loans                    (436)   15,350      6.59
     Medium-term adjustable-
      rate loans(2)                 990     9,781      5.46
     Fixed-rate loans                44     1,618      6.48
                              ----------  --------  ---------
         Total multi-family
          loans held in
          portfolio                 598    26,749      6.17
                              ----------  --------  ---------
         Total selected
          loans held in
          portfolio secured
          by real estate(3)       3,407   225,431      6.68
   Loans held for sale(4)        (1,812)   23,031      6.43
                              ----------  --------  ---------
         Total selected
          loans secured by
          real estate             1,595   248,462      6.66
   MBS(5):
     Short-term adjustable-
      rate MBS(1)                   295     9,058      5.42
     Medium-term adjustable-
      rate MBS(2)                  (167)    3,853      4.97
     Fixed-rate MBS                 (78)    8,527      5.27
                              ----------  --------  ---------
         Total MBS(6)                50    21,438      5.28
                              ----------  --------  ---------
         Total selected
          loans secured by
          real estate and
          MBS                $    1,645  $269,900      6.55
                              ==========  ========  =========


                                       Weighted           Weighted
                                        Average            Average
                              Mar. 31,  Coupon   June 30,  Coupon
                                 2006    Rate      2005     Rate
                              -------- --------  -------- -------
Selected Loans Secured by
 Real Estate and MBS
   Home loans held in
    portfolio:
     Short-term adjustable-
      rate loans(1):
       Option ARMs           $ 70,169    6.34 % $ 66,533    5.06 %
       Other ARMs              15,781    6.64     10,903    6.37
                              -------- --------  -------- -------
         Total short-term
          adjustable-rate
          loans                85,950    6.39     77,436    5.24
     Medium-term adjustable-
      rate loans(2)            49,391    5.61     43,499    5.53
     Fixed-rate loans           8,660    6.54      8,638    6.60
                              -------- --------  -------- -------
         Total home loans
          held in portfolio   144,001    6.13    129,573    5.43
   Home equity loans and
    lines of credit:
     Short-term (Prime-based
      or treasury-based)(1)    37,181    7.79     36,815    6.16
     Fixed-rate loans          14,691    6.69     11,634    6.37
                              -------- --------  -------- -------
         Total home equity
          loans and lines of
          credit               51,872    7.48     48,449    6.21
   Multi-family loans held
    in portfolio:
     Short-term adjustable-
      rate loans(1):
       Option ARMs              9,506    6.13      8,979    4.98
       Other ARMs               6,280    6.27      6,312    5.13
                              -------- --------  -------- -------
         Total short-term
          adjustable-rate
          loans                15,786    6.19     15,291    5.04
     Medium-term adjustable-
      rate loans(2)             8,791    5.35      7,365    5.26
     Fixed-rate loans           1,574    6.51      1,584    6.75
                              -------- --------  -------- -------
         Total multi-family
          loans held in
          portfolio            26,151    5.93     24,240    5.22
                              -------- --------  -------- -------
         Total selected
          loans held in
          portfolio secured
          by real estate(3)   222,024    6.42    202,262    5.59
   Loans held for sale(4)      24,843    6.53     50,986    5.12
                              -------- --------  -------- -------
         Total selected
          loans secured by
          real estate         246,867    6.44    253,248    5.50
   MBS(5):
     Short-term adjustable-
      rate MBS(1)               8,763    5.13      9,687    4.15
     Medium-term adjustable-
      rate MBS(2)               4,020    4.93      1,571    4.68
     Fixed-rate MBS             8,605    5.21      3,111    5.20
                              -------- --------  -------- -------
         Total MBS(6)          21,388    5.13     14,369    4.44
                              -------- --------  -------- -------
         Total selected
          loans secured by
          real estate and
          MBS                $268,255    6.33   $267,617    5.44
                              ======== ========  ======== =======

(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 June 30, 2006, March 31, 2006, and June 30, 2005, the
    adjustable-rate loans with lifetime caps were $193.17 billion,
    $193.55 billion and $177.53 billion with a lifetime weighted
    average cap rate of 12.13%, 12.16% and 12.35%.

(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 June 30, 2006, March 31, 2006 and June 30, 2005, the par value
    of adjustable-rate MBS with lifetime caps were $12.81 billion,
    $12.92 billion and $11.10 billion with a lifetime weighted average
    cap rate of 10.42%, 10.36% and 10.15%.


                                          Mar. 31, 2006  Dec. 31, 2005
                                          to June 30,    to June 30,
                                               2006          2006
                                          ------------- --------------
Rollforward of Loans Held for Sale
    Balance, beginning of period          $     25,020  $      33,582
       Mortgage loans originated,
        purchased and transferred from
        held in portfolio                       31,243         60,138
       Mortgage loans transferred to held
        in portfolio                              (490)        (2,500)
       Mortgage loans sold and other           (32,565)       (67,535)
       Net change in consumer loans held
        for sale                                   134           (343)
                                           ------------  -------------
    Balance, end of period                $     23,342  $      23,342
                                           ============  =============

Rollforward of Home Loans Held in
 Portfolio
    Balance, beginning of period          $    144,001  $     135,290
       Loans originated, purchased and
        transferred from held for sale          12,928         31,279
       Loan payments, transferred to held
        for sale and other                     (11,228)       (20,868)
                                           ------------  -------------
    Balance, end of period                $    145,701  $     145,701
                                           ============  =============


WM-15
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                               Quarter Ended
                                     ---------------------------------
                                                  Pro Forma Results
                                                       Assuming
                                                     Retrospective
                                                  Application of SFAS
                                                        No. 156
                                                 ---------------------
Detail of Revenue from Sales and     June  Mar.  Dec.   Sept.   June
 Servicing of Home Mortgage Loans(1)  30,   31,    31,    30,    30,
                                     2006  2006   2005    2005   2005
                                     ----------- ---------------------
Gain from home mortgage loans and
 originated mortgage-backed
 securities, net of hedging and risk
 management instruments(2):
   Gain from home mortgage loans and
    originated mortgage-backed
    securities                       $184  $157   $213    $206   $250
   Revaluation gain (loss) from
    derivatives economically hedging
    loans held for sale                67    52     25      73    (79)
                                     ----------- ---------------------
        Gain from home mortgage loans
         and originated mortgage-
         backed securities, net of
         hedging and risk management
         instruments                  251   209    238     279    171
                                     ----------- ---------------------
Home mortgage loan servicing revenue
 (expense):
   Home mortgage loan servicing
    revenue(3)                        586   572    544     534    523
   Change in MSR fair value due to
    payments on loans and other(1)   (460) (409)  (483)   (480)  (404)
                                     ----------- ---------------------
        Net mortgage loan servicing
         revenue                      126   163     61      54    119
   Change in MSR fair value due to
    valuation inputs or
    assumptions(1)                    435   413    805   1,193 (1,224)
   Revaluation gain (loss) from
    derivatives economically hedging
    MSR(1)                           (433) (522)  (654)   (810) 1,047
   Adjustment to MSR fair value for
    pending MSR sale                 (157)    -      -       -      -
                                     ----------- ---------------------
        Home mortgage loan servicing
         revenue (expense), net of
         MSR valuation changes and
         derivative risk management
         instruments                  (29)   54    212     437    (58)
                                     ----------- ---------------------
        Total revenue from sales and
         servicing of home mortgage
         loans                       $222  $263    450     716    113
                                     ===========
Reconciliation from pro forma to GAAP
 results(1):
   Deduct: Increase in MSR fair value
    not recorded due to lower of cost
    or fair value                                  (39)    (10)    (3)
   Other                                             7       4      4
                                                 ---------------------
        Total GAAP revenue from sales
         and servicing of home
         mortgage loans                           $418    $710   $114
                                                 =====================


                                               Six Months Ended
                                         -----------------------------
                                                         Pro Forma
                                                          Results
                                                          Assuming
                                                        Retrospective
                                                        Application
                                                        of SFAS No.
                                                             156
                                                       --------------
Detail of Revenue from Sales and
 Servicing of Home Mortgage Loans(1)      June 30,            June 30,
                                           2006                  2005
                                          --------             -------
Gain from home mortgage loans and
 originated mortgage-backed
 securities, net of hedging and risk
 management instruments(2):
   Gain from home mortgage loans and
    originated mortgage-backed
    securities                           $    341             $   431
   Revaluation gain from derivatives
    economically hedging loans held
    for sale                                  119                   1
                                          --------             -------
        Gain from home mortgage loans
         and originated mortgage-
         backed securities, net of
         hedging and risk management
         instruments                          460                 432
                                          --------             -------
Home mortgage loan servicing revenue
 (expense):
   Home mortgage loan servicing
    revenue(3)                              1,159               1,033
   Change in MSR fair value due to
    payments on loans and other(1)           (869)               (766)
                                          --------             -------
        Net mortgage loan servicing
         revenue                              290                 267
   Change in MSR fair value due to
    valuation inputs or
    assumptions(1)                            849                (460)
   Revaluation gain (loss) from
    derivatives economically hedging
    MSR(1)                                   (956)                649
   Adjustment to MSR fair value for
    pending MSR sale                         (157)                  -
                                          --------             -------
        Home mortgage loan servicing
         revenue, net of  MSR
         valuation changes and
         derivative risk management
         instruments                           26                 456
                                          --------             -------
        Total revenue from sales and
         servicing of home mortgage
         loans                           $    486                 888
                                          ========
Reconciliation from pro forma to GAAP
 results(1):
   Deduct: Increase in MSR fair value
    not recorded due to lower of cost
    or fair value                                                 (8)
   Other                                                           9
                                                              -------
        Total GAAP revenue from sales
         and servicing of home
         mortgage loans                                      $   889
                                                              =======

(1) The results for the quarters ended June 30, 2006, March 31, 2006
    and the six months ended June 30, 2006 reflect the adoption of the
    fair value measurement method of accounting for mortgage servicing
    rights ("MSR") permitted by Statement of Financial Accounting
    Standards No. 156, Accounting for Servicing of Financial Assets,
    an amendment to FASB Statement No. 140 ("Statement"). The Company
    has adopted the Statement effective January 1, 2006, and the
    retrospective application of this Statement to prior periods is
    not permitted.  Management believes that due to the significant
    differences between the fair value measurement method and the
    amortization method of accounting for MSR, comparative information
    prepared on a similar basis of accounting is valuable to users of
    this financial information. The quarterly information for 2005 is
    a non-GAAP measure, and incorporates the following assumptions: 1)
    the fair value measurement method of accounting for MSR was in
    effect during 2005, 2) MSR are initially capitalized at fair value
    instead of allocated book value, and 3) the change in value of
    available-for-sale securities that were on the balance sheet at
    December 31, 2005 and designated as MSR risk management
    instruments are reported as revaluation gain (loss) on trading
    securities.  A reconciliation of the non-GAAP amounts to the
    previously disclosed GAAP results has been provided.

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

(3) Includes late charges 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).


WM-16

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


                                        Quarter Ended
                         -------------------------------------------
                                          Pro Forma Results Assuming
                                           Retrospective Application
                                                of SFAS No. 156
                                          ---------------------------
                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2006     2006     2005     2005      2005
                          -------  -------  -------  --------  -------
MSR Risk Management(1):
   Change in MSR fair
    value due to
    valuation inputs or
    assumptions(2)       $   435  $   413  $   805  $  1,193  $(1,224)
Gain (loss) on MSR risk
 management instruments:
   Revaluation gain
    (loss) from
    derivatives             (433)    (522)    (654)     (810)   1,047
   Revaluation gain
    (loss) from certain
    trading securities(2)    (47)     (42)    (165)     (219)     259
   Gain from certain
    available-for-sale
    securities                 -        -        -         -       26
                          -------  -------  -------  --------  -------
        Total gain (loss)
         on MSR risk
         management
         instruments        (480)    (564)    (819)   (1,029)   1,332
                          -------  -------  -------  --------  -------
          Total MSR risk
           management    $   (45) $  (151) $   (14) $    164  $   108
                          =======  =======  =======  ========  =======
Reconciliation from pro
 forma to GAAP
 results(2):
   Revaluation gain
    (loss) from certain
    trading securities                    $  (165) $   (219) $   259
   Add back: Decrease in
    value of trading
    securities assumed
    transferred
     from the available-
      for-sale securities
      portfolio                                 8         2        -
                                           -------  --------  -------
        Total GAAP impact
         of MSR risk
         management
         trading
         securities                       $  (157) $   (217) $   259
                                           =======  ========  =======



                                             Six Months Ended
                                    ----------------------------------
                                                  Pro Forma Results
                                                       Assuming
                                                     Retrospective
                                                    Application of
                                                      SFAS No. 156
                                                  -------------------
                                    June 30,                 June 30,
                                       2006                     2005
                                     -------                 --------
MSR Risk Management(1):
   Change in MSR fair
    value due to
    valuation inputs or
    assumptions(2)                  $   849                 $   (460)
Gain (loss) on MSR risk
 management instruments:
   Revaluation gain
    (loss) from
    derivatives                        (956)                     649
   Revaluation gain
    (loss)from certain
    trading securities(2)               (89)                     150
   Loss from certain
    available-for-sale
    securities                            -                      (18)
                                     -------                 --------
        Total gain (loss)
         on MSR risk
         management
         instruments                 (1,045)                     781
                                     -------                 --------
          Total MSR risk
           management               $  (196)                $    321
                                     =======                 ========
Reconciliation from pro
 forma to GAAP
 results(2):
   Revaluation gain from
    certain trading
    securities                                              $   150
   Add back: Decrease in
    value of trading
    securities assumed
    transferred
     from the available-
      for-sale securities
      portfolio                                                   -
                                                            --------
        Total GAAP impact
         of MSR risk
         management
         trading
         securities                                          $   150
                                                             ========

(1) Excludes $157 million loss on pending MSR sale.

(2) Refer to footnote (1) on table WM-15.


WM-17

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

                                     Quarter Ended
---------------------------------------------------------------------
                    June 30,  Mar. 31,  Dec. 31,  Sept. 30,   June 30,
                      2006      2006      2005      2005        2005
----------------------------------------------------------------------
Rollforward of
 Mortgage
 Servicing
 Rights(1)(2)
 Balance,
  beginning of
  period           $  8,736  $  8,041  $  7,042  $  5,730  $    6,802
  Home loans:
   Additions            607       633       703       605         555
   Changes in MSR
    fair value due
    to valuation
    inputs or
    assumptions         435       413         -         -           -
   Payments on
    loans and
    other              (460)     (409)        -         -           -
   Adjustment to
    MSR fair value
    for pending
    MSR sale           (157)        -         -         -           -
   Fair value
    basis
    adjustment(3)         -        57         -         -           -
   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                   1         1         6         -           -
----------------------------------------------------------------------
 Balance, end of
  period           $  9,162  $  8,736  $  8,041  $  7,042  $    5,730
======================================================================
Rollforward of
 Valuation
 Allowance for MSR
 Impairment
 Balance,
  beginning of
  period           $      -  $    914  $  1,312  $  1,746  $    1,513
  Impairment
   (reversal)             -         -      (353)     (413)        250
  Other-than-
   temporary
   impairment             -         -       (43)      (18)        (11)
  Other                   -      (914)(3)    (2)       (3)         (6)
----------------------------------------------------------------------
 Balance, end of
  period           $      -  $      -  $    914  $  1,312  $    1,746
======================================================================
Rollforward of
 Mortgage Loans
 Serviced for
 Others
 Balance,
  beginning of
  period           $569,501  $563,208  $547,578  $543,324  $  542,797
  Home loans:
   Additions         30,949    35,026    51,642    43,418      36,174
   Loan payments
    and other       (30,377)  (29,063)  (37,245)  (39,005)    (35,689)
  Net change in
   commercial real
   estate loans
   serviced for
   others               279       330     1,233      (159)         42
----------------------------------------------------------------------
 Balance, end of
  period           $570,352  $569,501  $563,208  $547,578  $  543,324
======================================================================

                    June 30,  Mar. 31,  Dec. 31,  Sept. 30,  June 30,
                      2006      2006      2005      2005       2005
----------------------------------------------------------------------
Total Servicing
 Portfolio
   Mortgage loans
    serviced for
    others         $570,352  $569,501  $563,208  $547,578  $  543,324
   Consumer loans
    serviced for
    others           12,205    11,822    11,014         -           -
   Servicing on
    retained MBS
    without MSR       1,262     1,334     1,404     1,487       1,592
   Servicing on
    owned loans     247,489   245,469   242,114   245,165     243,494
   Subservicing
    portfolio           552       588       629       749         825
----------------------------------------------------------------------
 Total servicing
  portfolio        $831,860  $828,714  $818,369  $794,979  $  789,235
======================================================================

                                                     June 30, 2006
----------------------------------------------------------------------
                                               Unpaid      Weighted
                                              Principal     Average
                                               Balance   Servicing Fee
----------------------------------------------------------------------
                                                     (in basis points,
Mortgage Loans                                           annualized)
 Serviced for
 Others by Loan
 Type
  Government                                  $ 43,339          45
  Agency                                       328,392          32
  Private                                      165,475          47
  Specialty home
   loans                                        33,146          50
----------------------------------------------------------------------
 Total mortgage
  loans serviced
  for others(4)                               $570,352          38
======================================================================


(1) Net of valuation allowance for all periods in 2005.

(2) MSR as a percentage of mortgage loans serviced for others was
    1.61%, 1.53%, 1.43%, 1.29% and 1.05% at June 30, 2006, March 31,
    2006, December 31, 2005, September 30, 2005 and June 30, 2005.

(3) The Company adopted Statement No. 156, Accounting for Servicing of
    Financial Assets, on January 1, 2006, and elected to measure
    mortgage servicing assets at fair value. In accordance with this
    Statement, this new accounting principle has been applied
    prospectively to all new and existing mortgage servicing assets.
    Upon adoption of the fair value election, the valuation allowance
    was written off against the recorded value of the MSR, and the $57
    million difference between the net carrying value and fair value
    was recorded as an increase to the basis of the Company's mortgage
    servicing rights.

(4) Weighted average coupon rate (annualized) was 6.06% at June 30,
    2006.


WM-18

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


                                        Quarter Ended
                        ----------------------------------------------
                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2006     2006     2005     2005      2005
                          -------  -------  -------  --------  -------
Allowance for Loan and
 Lease Losses
   Balance, beginning of
    quarter              $ 1,642  $ 1,695  $ 1,264  $  1,243  $ 1,280
   Allowance transferred
    to loans held for
    sale                     (87)     (30)    (241)        -      (29)
   Allowance acquired
    through business
    combinations               -        -      592         -        -
   Provision for loan
    and lease losses         224       82      217        52       31
                          -------  -------  -------  --------  -------
                           1,779    1,747    1,832     1,295    1,282
   Loans charged off:
      Loans secured by
       real estate:
        Home                 (11)     (11)      (7)       (9)     (11)
        Specialty
         mortgage
         finance(1)          (20)     (20)     (14)      (15)     (11)
                          -------  -------  -------  --------  -------
           Total home
            loans
            charged off      (31)     (31)     (21)      (24)     (22)
        Home equity
         loans and lines
         of credit            (7)      (5)      (6)      (10)      (8)
        Home
         construction(2)       -        -        -         -       (2)
        Multi-family           -        -        -         -       (1)
        Other real
         estate                -       (3)      (1)       (4)      (2)
                          -------  -------  -------  --------  -------
           Total loans
            secured by
            real estate      (38)     (39)     (28)      (38)     (35)
      Consumer:
       Credit card           (94)     (63)    (138)        -        -
       Other                  (6)      (7)      (8)       (8)      (9)
      Commercial              (4)      (8)     (16)       (4)      (8)
                          -------  -------  -------  --------  -------
           Total loans
            charged off     (142)    (117)    (190)      (50)     (52)
   Recoveries of loans
    previously charged
    off:
      Loans secured by
       real estate:
        Home                   1        -        -         -        -
        Specialty
         mortgage
         finance(1)            1        1        1         1        1
                          -------  -------  -------  --------  -------
           Total home
            loan
            recoveries         2        1        1         1        1
        Home equity
         loans and lines
         of credit             3        1        7         1        1
        Multi-family           1        -        -         2        -
        Other real
         estate                1        1        -         8        3
                          -------  -------  -------  --------  -------
           Total loans
            secured by
            real estate        7        3        8        12        5
      Consumer:
       Credit card            15        4       40         -        -
       Other                   3        4        3         5        6
      Commercial               1        1        2         2        2
                          -------  -------  -------  --------  -------
           Total
            recoveries
            of loans
            previously
            charged off       26       12       53        19       13
                          -------  -------  -------  --------  -------
      Net charge-offs       (116)    (105)    (137)      (31)     (39)
                          -------  -------  -------  --------  -------
   Balance, end of
    quarter              $ 1,663  $ 1,642  $ 1,695  $  1,264  $ 1,243
                          =======  =======  =======  ========  =======

   Net charge-offs
    (annualized) as a
    percentage
     of average loans
      held in portfolio     0.19 %   0.18 %   0.24 %    0.06 %   0.07%
   Allowance as a
    percentage of total
    loans held in
    portfolio               0.68     0.68     0.74      0.58     0.58


(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)

                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2006     2006     2005     2005      2005
----------------------------------------------------------------------
Nonperforming Assets and
 Restructured Loans
 Nonaccrual loans(1):
  Loans secured by real
   estate:
   Home                  $   512  $   490  $   565  $    472  $   495
   Specialty mortgage
    finance(2)             1,085    1,012      872       755      692
----------------------------------------------------------------------
      Total home
       nonaccrual loans    1,597    1,502    1,437     1,227    1,187
   Home equity loans and
    lines of credit          110       92       88        68       67
   Home construction(3)       31       15       10        10       11
   Multi-family               19       21       25        18       15
   Other real estate          56       69       70        69      116
----------------------------------------------------------------------
      Total nonaccrual
       loans secured by
       real estate         1,813    1,699    1,630     1,392    1,396
  Consumer                     1        6        8         8        8
  Commercial                  16       26       48        65       59
----------------------------------------------------------------------
      Total nonaccrual
       loans held in
       portfolio           1,830    1,731    1,686     1,465    1,463
 Foreclosed assets(4)        330      309      276       256      256
----------------------------------------------------------------------
      Total
       nonperforming
       assets            $ 2,160  $ 2,040  $ 1,962  $  1,721  $ 1,719
      As a percentage of
       total assets         0.62%    0.59%    0.57%     0.52%    0.53%
 Restructured loans      $    20  $    21  $    22  $     25  $    25
----------------------------------------------------------------------
          Total
           nonperforming
           assets and
           restructured
           loans         $ 2,180  $ 2,061  $ 1,984  $  1,746  $ 1,744
======================================================================


(1) Nonaccrual loans held for sale, which are excluded from the
    nonaccrual balances presented above, were $122 million, $201
    million, $245 million, $152 million and $108 million at June 30,
    2006, March 31, 2006, December 31, 2005, September 30, 2005 and
    June 30, 2005. Loans held for sale are accounted for at lower of
    aggregate cost or fair value, with valuation changes included as
    adjustments to noninterest income.

(2) 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) Foreclosed real estate securing Government National Mortgage
    Association ("GNMA") loans of $142 million, $167 million, $79
    million, $80 million and $72 million at June 30, 2006, March 31,
    2006, December 31, 2005, September 30, 2005 and June 30, 2005 have
    been excluded. These assets are fully collectible as the
    corresponding GNMA loans are insured by the Federal Housing
    Administration ("FHA") or guaranteed by the Department of
    Veteran's Affairs ("VA").

CONTACT: Washington Mutual
Media Contact
Alan Gulick, 206-500-2760
alan.gulick@wamu.net
or
Washington Mutual
Investor Relations Contact
Alan Magleby, 206-490-5182 (Seattle)
212-326-6019 (New York)
alan.magleby@wamu.net

SOURCE: Washington Mutual, Inc.