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Washington Mutual Reports Third Quarter Earnings Per Share of 77 Cents -- Results Included Charges Associated with the Sale of Mortgage Servicing Rights and Efficiency Initiatives

Business Editors

SEATTLE--(BUSINESS WIRE)--Oct. 18, 2006--Washington Mutual, Inc. (NYSE:WM) today reported third quarter 2006 net income of $748 million, or $0.77 per diluted share compared with net income of $821 million, or $0.92 per diluted share, in the third quarter of 2005.

Third quarter 2006 earnings included net after tax charges of $31 million, or $0.03 per diluted share, related to the previously announced sale of $2.53 billion of mortgage servicing rights, and after tax charges of $33 million, or $0.04 per diluted share, related to the company's ongoing efficiency initiatives, which are expected to continue into the fourth quarter.

"We continue to focus on the successful execution of our strategic plan despite the challenging operating environment," said Kerry Killinger, WaMu Chairman and CEO, noting that, as anticipated, the costs associated with the MSR sale announced in the second quarter and the company's ongoing efficiency initiatives impacted third quarter results. "Retail Banking, Card Services and the Commercial Group produced solid results, and we continue to aggressively attack our expense base by taking out excess capacity and reducing our overall cost structure."

Killinger added, "We remain confident in our strategy to reposition the company and set the stage for stronger performance in 2007."

WaMu's Board of Directors declared a cash dividend of 53 cents per share on the company's common stock, up from 52 cents per share in the previous quarter. Dividends on the common stock are payable on November 15, 2006 to shareholders of record as of October 31, 2006.

THIRD QUARTER FINANCIAL SUMMARY AND HIGHLIGHTS

Financial Summary                            Three Months Ended
                                      --------------------------------
(In millions, except per share   September 30, June 30,  September 30,
 data)                               2006        2006        2005
                                 -------------------------------------
  Income Statement
  Net interest income                $  1,947  $  2,060      $  2,005
  Provision for loan and lease
   losses                                 166       224            52
  Noninterest income                    1,570     1,578         1,208
  Noninterest expense                   2,184     2,229         1,860
  Net income                              748       767           821

  Diluted earnings per common
   share                             $   0.77  $   0.79      $   0.92

Financial Summary (cont.)                 Three Months Ended
                                 -------------------------------------
                                 September 30, June 30,  September 30,
(In millions)                        2006        2006        2005
                                 -------------------------------------
  Balance Sheet
  Total assets, end of period        $348,877  $350,884      $333,285
  Average total assets                349,542   348,664       326,955
  Average total deposits              208,912   200,252       188,320

  Profitability Ratios
  Return on average common
   equity                              11.47 %   11.82 %       14.88 %
  Net interest margin                    2.53      2.65          2.73
  Efficiency ratio                      62.09     61.27         57.88
  Nonperforming assets/total
   assets, end of period                 0.69      0.62          0.52
  Tangible equity/total tangible
   assets, end of period                 5.86      5.84          4.99
    --  Net interest income reflects pressure from increases in
        short-term interest rates. An increase in average short-term
        rates during the third quarter contributed to the decrease in
        the net interest margin as the increased yield on earning
        assets was more than offset by the higher cost of deposits and
        wholesale funding sources. Net interest income was down 5
        percent from the prior quarter due to margin compression.

    --  Credit exposure continues to be proactively managed. The
        provision for loan and lease losses of $166 million in the
        third quarter reflected a slight decline in the loan portfolio
        and net charge-offs of $154 million. The third quarter
        provision also reflected refinements to the company's reserve
        methodology and adjustment of the provision related to the
        planned sale of $403 million of higher risk credit card
        accounts. Without the impact of these two items, the provision
        would have been similar to that of the second quarter. The
        provision was up compared with the third quarter of last year
        as prior year results did not include the company's credit
        card business acquired October 1, 2005. Nonperforming assets
        were up during the quarter and as a percentage of total assets
        totaled 69 basis points at quarter end, compared with 62 basis
        points at the end of the prior quarter and 52 basis points at
        the end of last year's third quarter.

    --  Noninterest income reflects strong retail banking fee growth
        offset by the decline in mortgage revenues. Noninterest income
        of $1.57 billion in the third quarter was relatively unchanged
        from the prior quarter. Solid customer account growth in both
        Retail Banking and Card Services was offset by an increase in
        the cost of hedging the company's mortgage servicing rights
        asset. Also, the slowing housing market and competitive
        factors exerted downward pressure on the company's third
        quarter gain on sale. Noninterest income compared with last
        year's third quarter included a 13 percent increase in
        depositor and other retail banking fees and the inclusion of
        Card Services, which added $520 million in revenue from the
        sale and servicing of consumer loans and credit card fees.

    --  Continued focus on productivity efforts. Noninterest expense
        of $2.18 billion was down 2 percent from the prior quarter and
        included $58 million in pretax charges associated with the
        previously announced sale of mortgage servicing rights. Pretax
        charges related to the company's efficiency initiatives
        totaled $52 million in the third quarter compared with $81
        million during the second quarter. During the quarter, the
        company reduced the number of employees by 9 percent for a
        year-to-date reduction of 16 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 174 net new retail banking stores during the past
        twelve months.

    --  Company conservatively manages balance sheet. While the
        company held average assets essentially flat with the prior
        quarter, it modestly grew balances of its targeted products of
        home equity lending, multi-family loans and credit cards,
        while reducing prime single-family residential loans. Compared
        with the third quarter of 2005, average assets were up 7
        percent reflecting growth in targeted products and the
        addition of Card Services receivables. During the quarter, the
        company repurchased 18.8 million shares of its common stock.

    --  Deposits increased during the quarter. Average deposits were
        up 4 percent on a linked quarter basis as the company
        continued to utilize wholesale deposits as an alternative to
        other borrowing sources and modestly grew retail deposits.
THIRD QUARTER OPERATING SEGMENT RESULTS
----------------------------------------------------------------------
Retail Banking Group

Selected Segment Information              Three Months Ended
                                 -------------------------------------
(In millions, except accounts    September 30, June 30,  September 30,
 and households)                     2006        2006        2005
                                 ------------- --------- -------------
  Net interest income                $  1,444  $  1,509      $  1,417
  Provision for loan and leases
   losses                                  58        37            47
  Noninterest income                      756       732           653
  Noninterest expense                   1,105     1,141         1,080
  Net income from continuing
   operations                             651       668           592

  Average loans                      $192,445  $195,994      $179,361
  Average retail deposits             139,954   138,803       138,741
  Net change in retail checking
   accounts(1)                        307,433   404,190       253,095
  Net change in retail
   households                         256,000   259,000       167,000


(1)  Includes retail checking and small business checking.
    --  Retail Banking continues to show strong year-over-year
        performance. Net income from continuing operations of $651
        million was up 10 percent from a year ago, despite continued
        increases in short-term interest rates which reduced the net
        interest margin. Excluding the contribution from portfolio
        management, net income from continuing operations for the
        Retail Bank network was up 29 percent from the same period a
        year ago.

    --  WaMu Free Checking(TM) drives another quarter of impressive
        checking account growth. The company experienced another
        strong quarter of checking account growth, opening more than
        307,000 net new accounts, which was up 21 percent from the
        third quarter of 2005. Year-to-date the company has opened
        over 1 million net new checking accounts, up 50 percent from
        the same period in 2005. WaMu continues to be an industry
        leader in customer acquisition, attracting 256,000 net new
        retail households during the quarter.

    --  Retail Banking fees continue solid growth. Driven by the
        strong growth in net new checking accounts, depositor and
        other retail banking fees were up 17 percent year-to-date
        compared with the first nine months of 2005.

    --  Small business activity continues to expand. Small business
        deposits of $7.53 billion were up 6 percent from the second
        quarter and up 19 percent from a year ago.
Card Services Group (managed basis)

Selected Segment Information               Three Months Ended
                                  ------------------------------------
                                  September 30,  June 30,   March 31,
(In millions)                         2006         2006        2006
                                  ------------------------------------
  Net interest income                $     627   $     610  $     614
  Provision for loan and lease
   losses                                  345         417        330
  Noninterest income                       343         387        345
  Noninterest expense                      284         283        289
  Net income                               210         183        210

  Average managed receivables        $  21,706   $  20,474  $  20,086
  Period end managed receivables        21,921      21,095     20,099
  30+ day managed delinquency
   rate                                  5.53 %      5.23 %     5.18 %
  Managed net credit losses               5.68        5.99       5.79
    --  Card Services delivers another quarter of excellent
        performance. Card Services reported net income of $210
        million, reflecting the continued strong risk-adjusted return
        of the portfolio and growth in the amount of managed
        receivables.

    --  Card Services drives strong customer and loan growth. The
        continued successful marketing of credit cards nationally and
        to WaMu retail customers has increased both the number of
        customers and loan balances. During the quarter, Card Services
        again drove strong customer growth, opening 815,000 new credit
        card accounts, with solid performance from both the national
        and WaMu retail channels. Managed card receivables also
        increased, up $826 million, or 4 percent, on a linked quarter
        basis, and up $2.64 billion, or 14 percent, over the past 12
        months.

    --  Credit quality continues to be favorable. At 5.53 percent of
        period end managed receivables, the 30+ day managed
        delinquency rate was up compared with the prior two quarters,
        but still remains historically low. Credit performance
        continues to benefit from a low level of bankruptcy-related
        charge-offs and favorable employment trend. Without the impact
        of the planned sale of $403 million of higher risk accounts,
        managed receivables at period end and the 30+ day managed
        delinquency rate would have been approximately $22.32 billion
        and 5.99 percent.
Commercial Group

Selected Segment Information             Three Months Ended
                               ---------------------------------------
                               September 30,  June 30,   September 30,
(In millions)                      2006         2006         2005
                               ------------- ----------- -------------
  Net interest income              $    198   $     203      $    222
  Provision for loan and lease
   losses                                 1           1             1
  Noninterest income                     25          17             8
  Noninterest expense                    59          57            63
  Net income                            101         100           104

  Loan volume                      $  3,104   $   2,961      $  3,003
  Average loans                      32,414      31,505        30,433
    --  Commercial Group posts solid results. Net income for the
        quarter compared with both the prior quarter and a year ago
        reflected an increase in average assets and continued focus on
        expense management, offset by margin compression from the
        repricing lag of the adjustable-rate loan portfolio.

    --  Commercial Group lending volume up. Total loan volume of $3.10
        billion increased 5 percent from the prior quarter and 3
        percent from a year ago. Third quarter lending volume
        reflected the company's continued strong position in
        multi-family lending and also increased lending on
        nonresidential commercial properties.

    --  Acquisition enhances commercial banking business. On October
        1, WaMu completed the acquisition of Commercial Capital
        Bancorp. In addition to strengthening the company's already
        solid position in the multi-family and small commercial real
        estate lending markets, the acquisition adds approximately
        $4.08 billion in commercial loans, including $3.22 billion in
        multi-family loans.
Home Loans Group

Selected Segment
 Information                           Three Months Ended
                          --------------------------------------------
                          September 30,     June 30,    September 30,
(In millions)                  2006           2006           2005
                          -------------- -------------- --------------
  Net interest income          $    206       $    206      $     480
  Noninterest income                263            453            659
  Noninterest expense               504            589            641
  Net (loss) income                 (33)            31            302

  Loan volume                  $ 37,200       $ 41,364      $  56,471
  Average loans                  33,718         30,742         53,424
    --  Home Loan results continue to reflect difficult mortgage
        market. The difficult rate environment, including an inverted
        yield curve, contributed to the quarter's net loss of $33
        million. Although flat with the prior quarter, net interest
        income was down 57 percent year over year reflecting the
        significant decline in warehouse loan balances and lower net
        interest margin.

    --  Slowing market impacts origination volume. The 10 percent
        decline in loan volume from the prior quarter and 34 percent
        decline compared with a year ago reflected the slowing housing
        market and the company's decision to exit the correspondent
        business and target higher margin products.

    --  Lower gain on sale margins. Gain on sale of $119 million was
        down from $251 million in the prior quarter and $279 million a
        year ago. Loans sold in the third quarter of $30.24 billion
        were down 7 percent from the second quarter and down by about
        a third from a year ago. The slowing housing market and
        competitive factors exerted downward pressure on the company's
        third quarter gain on sale. The decline in gain on sale from a
        year ago reflected both lower sale volumes and narrower sale
        margins.

    --  MSR risk management impacted by a challenging interest rate
        environment. An inverted yield curve created a more expensive
        hedging environment for the MSR during the most recent
        quarter. The company's third quarter MSR risk management cost
        of $78 million increased from a cost of $45 million in the
        second quarter and income of $164 million a year ago.

    --  Home Loans continues to reduce noninterest expense.
        Noninterest expense was down 14 percent from the prior quarter
        and 21 percent from a year ago due to key productivity and
        efficiency initiatives. The company continues to take actions
        to right-size the business as volumes decline. During the
        quarter, the number of employees was down 10 percent and since
        the end of 2005, staffing has been reduced by 22 percent.

    COMPANY UPDATES

    --  On October 1, WaMu completed the acquisition of Commercial
        Capital Bancorp, Inc. in a cash transaction valued at
        approximately $989 million.

    --  On July 25, WaMu announced that it had entered a definitive
        agreement to sell its retail mutual fund asset-management
        company, WM Advisors, Inc., to the Principal Financial Group
        for approximately $740 million. The sale is on track and is
        expected to close late in the fourth quarter of 2006.

    About Washington Mutual

Washington Mutual, through its subsidiaries, is one of the nation's leading consumer and small business banks. At September 30, 2006, Washington Mutual and its subsidiaries had assets of $348.88 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, October 18, 2006, at 5:00 p.m. ET and will be hosted by Kerry Killinger, chairman and chief executive officer and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-946-6301. 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. ET on Wednesday, October 18, 2006, through 11:59 p.m. ET on Friday, October 27, 2006. The recorded message will be available at 800-889-9549. Callers from outside the United States may dial 402-220-5188.

Forward Looking Statement

This release contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this document that are not historical facts. When used in this presentation, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs, such as "will," "would," "should," "could," or "may" are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed under the heading "Factors That May Affect Future Results" in Washington Mutual's 2005 Annual Report on Form 10-K/A and "Cautionary Statements" in our Form 10-Q/A for the quarter ended March 31, 2006 and Form 10-Q for the quarter ended June 30, 2006 which include:

    --  volatile interest rates which impact the mortgage banking
        business;

    --  rising interest rates, unemployment and decreases in housing
        prices impact credit performance;

    --  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 which may impact the Company's
        reputation.

There are other factors not described in our 2005 Form 10-K/A and 2006 Forms 10-Q and which are beyond the Company's ability to anticipate or control that could cause results to differ.

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


                                     Quarter Ended
----------------------------------------------------------------------
                  Sept. 30,  June 30,   Mar. 31,   Dec. 31, Sept. 30,
                      2006      2006       2006       2005      2005
---------------------------------------------------------------------
PROFITABILITY
  Net income          $748      $767       $985       $865      $821
  Net interest
   income            1,947     2,060      2,117      2,241     2,005
  Noninterest
   income            1,570     1,578      1,638      1,526     1,208
  Noninterest
   expense           2,184     2,229      2,138      2,214     1,860
  Diluted
   earnings per
   common share:
    Income from
     continuing
     operations      $0.76     $0.78      $0.97      $0.84     $0.91
    Income from
     discontinued
     operations       0.01      0.01       0.01       0.01      0.01
     Net income       0.77      0.79       0.98       0.85      0.92
  Diluted
   weighted
   average number
   of common
   shares
   outstanding(1)  967,376   975,504  1,003,460  1,011,395   888,495
  Net interest
   margin             2.53 %    2.65 %     2.75 %     2.88 %    2.73 %
  Dividends
   declared per
   common share       0.52      0.51       0.50       0.49      0.48
  Book value per
   common
   share(2)(3)       28.17     27.31      27.10      27.61     25.54
  Return on
   average
   assets(4)          0.86 %    0.88 %     1.15 %     0.99 %    1.00 %
  Return on
   average common
   equity(4)         11.47     11.82      14.69      12.85     14.88
  Efficiency
   ratio(5)(6)       62.09     61.27      56.95      58.75     57.88

ASSET QUALITY
  Nonperforming
   assets(7) to
   total
   assets(3)          0.69 %    0.62 %     0.59 %     0.57 %    0.52 %
  Allowance as a
   percentage of
   total loans
   held in
   portfolio(3)       0.64      0.68       0.68       0.74      0.58
  Provision for
   loan and lease
   losses             $166      $224        $82       $217       $52
  Net charge-offs      154       116        105        137        31

CAPITAL
 ADEQUACY(3)
  Capital Ratios
   at WMI-
   consolidated
   level:
     Tangible
      equity(8)
      to total
      tangible
      assets(8)       5.86 %    5.84 %     5.75 %     5.62 %    4.99 %
     Estimated
      total risk-
      based
      capital to
      total risk-
      weighted
      assets(9)      11.16     11.26      10.77      10.80     10.56
  Capital Ratios
   at WMB-bank
   only level
   (well-
   capitalized
   minimum)(10):
     Tier 1
      capital to
      adjusted
      total
      assets
      (5.00%)         6.46      6.33       6.76       6.47      5.76
     Adjusted
      tier 1
      capital to
      total risk-
      weighted
      assets
      (6.00%)         8.17      8.13       8.92       8.49      8.34
     Total risk-
      based
      capital to
      total risk-
      weighted
      assets
      (10.00%)       11.37     11.39      11.82      11.50     11.35

SUPPLEMENTAL DATA
  Average balance
   sheet:
   Total loans
    held in
    portfolio     $242,165  $242,334   $232,505   $227,568  $213,016
   Total
    interest-
    earning
    assets(5)      312,827   313,239    307,777    314,490   296,529
   Total assets    349,542   348,664    343,660    349,172   326,955
   Total deposits  208,912   200,252    191,034    196,799   188,320
   Total
    stockholders'
    equity          26,147    25,958     26,825     26,949    22,075
  Period-end
   balance sheet:
   Total loans
    held in
    portfolio,
    net of
    allowance for
    loan and
    lease losses   240,215   241,840    238,362    227,937   216,930
   Total assets    348,877   350,884    348,401    343,573   333,285
   Total deposits  210,882   204,558    200,002    193,167   190,412
   Total
    stockholders'
    equity          26,458    26,131     25,819     27,279    22,259
   Common shares
    outstanding
    at the end of
    period(1)(11)  945,098   962,880    958,819    993,914   877,651
   Employees at
    end of period   51,056    56,247     60,381     60,798    56,214

                                                   Nine Months Ended
----------------------------------------------------------------------
                                                  Sept. 30, Sept. 30,
                                                      2006      2005
----------------------------------------------------------------------
PROFITABILITY
  Net income                                        $2,501    $2,567
  Net interest
   income                                            6,123     5,977
  Noninterest
   income                                            4,786     3,572
  Noninterest
   expense                                           6,551     5,407
  Diluted
   earnings per
   common share:
    Income from
     continuing
     operations                                      $2.51     $2.86
    Income from
     discontinued
     operations                                       0.03      0.03
     Net income                                       2.54      2.89
  Diluted
   weighted
   average number
   of common
   shares
   outstanding(1)                                  981,997   888,184
  Net interest
   margin                                             2.64 %    2.77 %
  Dividends
   declared per
   common share                                       1.53      1.41
  Book value per
   common
   share(2)(3)                                       28.17     25.54
  Return on
   average
   assets(4)                                          0.96 %    1.07 %
  Return on
   average common
   equity(4)                                         12.68     15.77
  Efficiency
   ratio(5)(6)                                       60.05     56.62

ASSET QUALITY
  Nonperforming
   assets(7) to
   total
   assets(3)                                          0.69 %    0.52 %
  Allowance as a
   percentage of
   total loans
   held in
   portfolio(3)                                       0.64      0.58
  Provision for
   loan and lease
   losses                                             $472       $99
  Net charge-offs                                      375       107

CAPITAL
 ADEQUACY(3)
  Capital Ratios
   at WMI-
   consolidated
   level:
     Tangible
      equity(8)
      to total
      tangible
      assets(8)                                       5.86 %    4.99 %
     Estimated
      total risk-
      based
      capital to
      total risk-
      weighted
      assets(9)                                      11.16     10.56
  Capital Ratios
   at WMB-bank
   only level
   (well-
   capitalized
   minimum)(10):
     Tier 1
      capital to
      adjusted
      total
      assets
      (5.00%)                                         6.46      5.76
     Adjusted
      tier 1
      capital to
      total risk-
      weighted
      assets
      (6.00%)                                         8.17      8.34
     Total risk-
      based
      capital to
      total risk-
      weighted
      assets
      (10.00%)                                       11.37     11.35

SUPPLEMENTAL DATA
  Average balance
   sheet:
   Total loans
    held in
    portfolio                                     $239,037  $211,346
   Total
    interest-
    earning
    assets(5)                                      311,300   288,203
   Total assets                                    347,310   318,503
   Total deposits                                  200,131   182,390
   Total
    stockholders'
    equity                                          26,308    21,701
  Period-end
   balance sheet:
   Total loans
    held in
    portfolio,
    net of
    allowance for
    loan and
    lease losses                                   240,215   216,930
   Total assets                                    348,877   333,285
   Total deposits                                  210,882   190,412
   Total
    stockholders'
    equity                                          26,458    22,259
   Common shares
    outstanding
    at the end of
    period(1)(11)                                  945,098   877,651
   Employees at
    end of period                                   51,056    56,214


----------------------------------------------------------------------
(1)  Number of shares in thousands.

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

(3)  As of period end.

(4)  Includes income from continuing and discontinued operations.

(5)  Based on continuing operations.

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

(7)  Excludes nonaccrual loans held for sale.

(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 for September
      30, 2006 and June 30, 2006 and $1.97 billion for 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 September
      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
----------------------------------------------------------------------
                        Sept.  June 30,   Mar. 31,   Dec. 31,   Sept.
                           30,                                     30,
                         2006     2006       2006       2005     2005
----------------------------------------------------------------------
Interest Income
   Loans held for
    sale                 $439     $398       $466       $676     $665
   Loans held in
    portfolio           4,008    3,884      3,576      3,431    2,947
   Available-for-sale
    securities            379      368        322        303      238
   Trading assets         140      165        198        185      114
   Other interest and
    dividend income       139      120         95         73       65
----------------------------------------------------------------------
      Total interest
       income           5,105    4,935      4,657      4,668    4,029
Interest Expense
   Deposits             1,739    1,461      1,221      1,184      996
   Borrowings           1,419    1,414      1,319      1,243    1,028
----------------------------------------------------------------------
      Total interest
       expense          3,158    2,875      2,540      2,427    2,024
----------------------------------------------------------------------
        Net interest
         income         1,947    2,060      2,117      2,241    2,005
   Provision for loan
    and lease losses      166      224         82        217       52
----------------------------------------------------------------------
        Net interest
         income after
         provision
         for loan and
         lease losses   1,781    1,836      2,035      2,024    1,953
Noninterest Income
   Revenue from sales
    and servicing of
    home mortgage
    loans                 118      222        263        418      710
   Revenue from sales
    and servicing of
    consumer loans        355      424        376        409        2
   Depositor and
    other retail
    banking fees          655      641        578        586      578
   Credit card fees       165      152        138        139        -
   Securities fees
    and commissions        52       56         52         47       48
   Insurance income        31       33         33         37       42
   Trading assets
    income (loss)          68     (129)       (13)      (273)    (171)
   Gain (loss) from
    sales of other
    available-for-
    sale securities        (1)       -         (7)        46      (32)
   Other income           127      179        218        117       31
----------------------------------------------------------------------
     Total
      noninterest
      income            1,570    1,578      1,638      1,526    1,208
Noninterest Expense
   Compensation and
    benefits(1)           939    1,021      1,032      1,028      930
   Occupancy and
    equipment             408      435        391        399      372
   Telecommunications
    and outsourced
    information
    services              142      145        134        139      107
   Depositor and
    other retail
    banking losses         57       51         56         60       61
   Advertising and
    promotion             124      117         95        109       78
   Professional fees       57       45         36         62       47
   Other expense          457      415        394        417      265
----------------------------------------------------------------------
      Total
       noninterest
       expense          2,184    2,229      2,138      2,214    1,860
   Minority interest
    expense                34       37          -          -        -
----------------------------------------------------------------------
      Income from
       continuing
       operations
       before income
       taxes            1,133    1,148      1,535      1,336    1,301
      Income taxes        394      389        559        479      488
----------------------------------------------------------------------
       Income from
        continuing
        operations,
        net of taxes      739      759        976        857      813
----------------------------------------------------------------------
Discontinued
 Operations(2)
       Income from
        discontinued
        operations
        before income
        taxes              14       12         15         12       12
       Income taxes         5        4          6          4        4
----------------------------------------------------------------------
        Income from
         discontinued
         operations,
         net of taxes       9        8          9          8        8
----------------------------------------------------------------------
Net Income               $748     $767       $985       $865     $821
======================================================================

Basic Earnings Per
 Common Share:
   Income from
    continuing
    operations          $0.78    $0.80      $1.00      $0.87    $0.94
   Income from
    discontinued
    operations           0.01     0.01       0.01       0.01     0.01
                      -------- -------- ---------- ---------- --------
       Net income        0.79     0.81       1.01       0.88     0.95

Diluted Earnings Per
 Common Share:
   Income from
    continuing
    operations          $0.76    $0.78      $0.97      $0.84    $0.91
   Income from
    discontinued
    operations           0.01     0.01       0.01       0.01     0.01
                      -------- -------- ---------- ---------- --------
       Net income        0.77     0.79       0.98       0.85     0.92

Dividends declared
 per common share        0.52     0.51       0.50       0.49     0.48
Basic weighted
 average number of
 common shares
 outstanding (in
 thousands)           941,898  947,023    973,614    980,084  866,541
Diluted weighted
 average number of
 common shares
 outstanding (in
 thousands)           967,376  975,504  1,003,460  1,011,395  888,495


(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)

                                                    Nine Months Ended
----------------------------------------------------------------------
                                                   Sept. 30, Sept. 30,
                                                       2006      2005
----------------------------------------------------------------------
Interest Income
   Loans held for sale                             $  1,304  $  1,719
   Loans held in portfolio                           11,468     8,395
   Available-for-sale securities                      1,068       695
   Trading assets                                       503       284
   Other interest and dividend income                   354       159
----------------------------------------------------------------------
          Total interest income                      14,697    11,252
Interest Expense
   Deposits                                           4,420     2,544
   Borrowings                                         4,154     2,731
----------------------------------------------------------------------
          Total interest expense                      8,574     5,275
----------------------------------------------------------------------
               Net interest income                    6,123     5,977
   Provision for loan and lease losses                  472        99
----------------------------------------------------------------------
               Net interest income after provision
                for loan and lease losses             5,651     5,878
Noninterest Income
   Revenue from sales and servicing of home
    mortgage loans                                      603     1,600
   Revenue from sales and servicing of consumer
    loans                                             1,155         4
   Depositor and other retail banking fees            1,875     1,608
   Credit card fees                                     456         -
   Securities fees and commissions                      161       142
   Insurance income                                      97       135
   Trading assets income (loss)                         (74)       15
   Loss from sales of other available-for-sale
    securities                                           (8)     (129)
   Other income                                         521       197
----------------------------------------------------------------------
          Total noninterest income                    4,786     3,572
Noninterest Expense
   Compensation and benefits(1)                       2,992     2,673
   Occupancy and equipment                            1,235     1,122
   Telecommunications and outsourced information
    services                                            421       310
   Depositor and other retail banking losses            165       165
   Advertising and promotion                            335       206
   Professional fees                                    138       119
   Other expense                                      1,265       812
----------------------------------------------------------------------
          Total noninterest expense                   6,551     5,407
   Minority interest expense                             71         -
----------------------------------------------------------------------
               Income from continuing operations
                before income taxes                   3,815     4,043
               Income taxes                           1,341     1,507
----------------------------------------------------------------------
                    Income from continuing
                     operations, net of taxes         2,474     2,536
----------------------------------------------------------------------
Discontinued Operations(2)
               Income from discontinued operations
                before income taxes                      42        47
               Income taxes                              15        16
----------------------------------------------------------------------
                    Income from discontinued
                     operations, net of taxes            27        31
----------------------------------------------------------------------
Net Income                                         $  2,501  $  2,567
======================================================================

Basic Earnings Per Common Share:
      Income from continuing operations            $   2.59  $   2.93
      Income from discontinued operations              0.03      0.04
                                                    --------  --------
             Net income                                2.62      2.97

Diluted Earnings Per Common Share:
      Income from continuing operations            $   2.51  $   2.86
      Income from discontinued operations              0.03      0.03
                                                    --------  --------
             Net income                                2.54      2.89

Dividends declared per common share                    1.53      1.41
Basic weighted average number of common shares
 outstanding (in thousands)                         954,062   865,571
Diluted weighted average number of common shares
 outstanding (in thousands)                         981,997   888,184

(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)
                             (unaudited)

                     Sept. 30,  June 30,  Mar. 31,  Dec. 31, Sept. 30,
                         2006      2006      2006      2005      2005
----------------------------------------------------------------------
Assets
   Cash and cash
    equivalents        $6,649    $6,675    $5,868    $6,214    $4,924
   Federal funds
    sold and
    securities
    purchased under
    agreements to
    resell              5,102     4,112     3,995     2,137     3,194
   Trading assets       5,391     7,445     9,958    10,999     7,351

   Available-for-
    sale securities,
    total amortized
    cost of $29,136,
    $28,504,
    $27,424,
    $24,810, and
    $20,757:
     Mortgage-backed
      securities       22,353    21,438    21,388    20,648    17,161
     Investment
      securities        6,664     6,358     5,586     4,011     3,603
----------------------------------------------------------------------
      Total
       available-
       for-sale
       securities      29,017    27,796    26,974    24,659    20,764
   Loans held for
    sale               23,720    23,342    25,020    33,582    48,018
   Loans held in
    portfolio         241,765   243,503   240,004   229,632   218,194
   Allowance for
    loan and lease
    losses             (1,550)   (1,663)   (1,642)   (1,695)   (1,264)
----------------------------------------------------------------------
      Total loans
       held in
       portfolio,
       net of
       allowance for
       loan and
       lease losses   240,215   241,840   238,362   227,937   216,930
   Investment in
    Federal Home
    Loan Banks          3,013     3,500     4,200     4,257     4,228
   Mortgage
    servicing rights    6,288     9,162     8,736     8,041     7,042
   Goodwill             8,368     8,339     8,298     8,298     6,196
   Other assets        21,114    18,673    16,990    17,449    14,638
----------------------------------------------------------------------
      Total assets   $348,877  $350,884  $348,401  $343,573  $333,285
======================================================================
Liabilities
   Deposits:
    Noninterest-
     bearing
     deposits         $34,667   $35,457   $36,531   $34,014   $36,850
    Interest-bearing
     deposits         176,215   169,101   163,471   159,153   153,562
----------------------------------------------------------------------
         Total
          deposits    210,882   204,558   200,002   193,167   190,412
   Federal funds
    purchased and
    commercial paper    5,282     6,138     6,841     7,081     7,229
   Securities sold
    under agreements
    to repurchase      13,665    19,866    15,471    15,532    14,508
   Advances from
    Federal Home
    Loan Banks         47,247    55,311    65,283    68,771    69,405
   Other borrowings    33,883    27,995    24,872    23,777    23,994
   Other liabilities    9,501     8,926     8,140     7,951     5,463
   Minority
    interests(1)        1,959     1,959     1,973        15        15
----------------------------------------------------------------------
      Total
       liabilities    322,419   324,753   322,582   316,294   311,026
Stockholders' equity   26,458    26,131    25,819    27,279    22,259
----------------------------------------------------------------------
      Total
       liabilities
       and
       stockholders'
       equity        $348,877  $350,884  $348,401  $343,573  $333,285
======================================================================

(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
----------------------------------------------------------------------
                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                            2006     2006     2006     2005      2005
----------------------------------------------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                  $26,131  $25,819  $27,279  $22,259   $22,013
Net income                   748      767      985      865       821
Cumulative effect from
 the adoption of
 Statement No. 156, net
 of income taxes(1)            -        -       35        -         -
Other comprehensive
 income (loss), net of
 income taxes                419     (151)    (219)     (91)     (158)
Cash dividends declared
 on common stock            (497)    (486)    (499)    (480)     (419)
Common stock repurchased
 and retired                (930)       -   (2,108)    (723)      (98)
Common stock issued for
 acquisition                   -        -        -    5,030         -
Common stock issued           95      182      346      419       100
Preferred stock issued       492        -        -        -         -
----------------------------------------------------------------------
Balance, end of period   $26,458  $26,131  $25,819  $27,279   $22,259
======================================================================

(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
----------------------------------------------------------------------
                     Sept. 30,  June 30,  Mar. 31,  Dec. 31, Sept. 30,
                         2006      2006      2006      2005      2005
----------------------------------------------------------------------
RETAIL BANKING GROUP
 Condensed income
  statement:
     Net interest
      income           $1,444    $1,509    $1,523    $1,457    $1,417
     Provision for
      loan and lease
      losses               58        37        50        42        47
     Noninterest
      income              756       732       674       689       653
     Inter-segment
      revenue              16        19        14         8        12
     Noninterest
      expense           1,105     1,141     1,113     1,124     1,080
----------------------------------------------------------------------
     Income from
      continuing
      operations
      before income
      taxes             1,053     1,082     1,048       988       955
     Income taxes         402       414       401       372       363
----------------------------------------------------------------------
        Income from
         continuing
         operations       651       668       647       616       592
        Income from
         discontinued
         operations,
         net of taxes       9         8         9         8         8
----------------------------------------------------------------------
          Net income     $660      $676      $656      $624      $600
======================================================================
 Performance and
  other data:
     Efficiency
      ratio(1)          49.89%    50.48%    50.36%    52.14%    51.90%
     Average loans   $192,445  $195,994  $189,142  $183,780  $179,361
     Average assets   205,063   208,870   202,224   196,824   191,865
     Average
      deposits:
        Checking
         deposits:
        Noninterest
         bearing       21,440    21,418    20,346    19,953    19,350
        Interest
         bearing       34,792    37,518    40,343    43,192    45,186
                     -------------------------------------------------
        Total
         checking
         deposits      56,232    58,936    60,689    63,145    64,536
        Savings and
         money market
         deposits      38,317    38,143    37,433    36,594    35,517
        Time deposits  45,405    41,724    40,940    40,473    38,688
                     -------------------------------------------------
           Average
            total
            deposits  139,954   138,803   139,062   140,212   138,741
     Loan volume        9,006    10,488     7,255    11,563    11,191
     Employees at end
      of period        29,624    33,211    34,649    34,637    33,754
CARD SERVICES GROUP
  Managed basis(2)
   Condensed income
    statement:
     Net interest
      income             $627      $610      $614      $637
     Provision for
      loan and lease
      losses              345       417       330       454
     Noninterest
      income              343       387       345       352
     Inter-segment
      expense               1         1         -         -
     Noninterest
      expense             284       283       289       268
----------------------------------------------------------------------
     Income before
      income taxes        340       296       340       267
     Income taxes         130       113       130       101
----------------------------------------------------------------------
          Net income     $210      $183      $210      $166
======================================================================
   Performance and
    other data:
     Efficiency ratio
      (1)               29.30%    28.33%    30.16%    27.08%
     Average loans    $21,706   $20,474   $20,086   $19,472
     Average assets    24,236    23,044    22,764    22,198
     Employees at end
      of period         2,755     2,620     2,871     3,124
  Securitization
   adjustments
   Condensed income
    statement:
     Net interest
      income            $(411)    $(405)    $(432)    $(409)
     Provision for
      loan and lease
      losses             (220)     (217)     (225)     (259)
     Noninterest
      income              191       188       207       150
   Performance and
    other data:
     Average loans    (12,169)  (11,565)  (12,107)  (11,011)
     Average assets   (10,330)   (9,753)  (10,219)   (9,267)
  Adjusted basis
   Condensed income
    statement:
     Net interest
      income             $216      $205      $182      $228
     Provision for
      loan and lease
      losses              125       200       105       195
     Noninterest
      income              534       575       552       502
     Inter-segment
      expense               1         1         -         -
     Noninterest
      expense             284       283       289       268
----------------------------------------------------------------------
     Income before
      income taxes        340       296       340       267
     Income taxes         130       113       130       101
----------------------------------------------------------------------
          Net income     $210      $183      $210      $166
======================================================================
    Performance and
     other data:
      Average loans    $9,537    $8,909    $7,979    $8,461
      Average assets   13,906    13,291    12,545    12,931
COMMERCIAL GROUP(3)
    Condensed income
     statement:
     Net interest
      income             $198      $203      $199      $222      $222
     Provision for
      loan and lease
      losses                1         1         1         1         1
      Noninterest
       income              25        17        13       109         8
     Noninterest
      expense              59        57        68        66        63
----------------------------------------------------------------------
     Income before
      income taxes        163       162       143       264       166
     Income taxes          62        62        54       100        62
----------------------------------------------------------------------
          Net income     $101      $100       $89      $164      $104
======================================================================
    Performance and
     other data:
     Efficiency
      ratio(1)          26.57%    25.99%    32.24%    19.82%    27.45%
     Average loans    $32,414   $31,505   $31,011   $30,928   $30,433
     Average assets    34,794    34,188    34,093    34,638    34,001
     Average deposits   2,323     2,243     2,263     2,428     2,485
     Loan volume        3,104     2,961     2,769     2,932     3,003
     Employees at end
      of period         1,246     1,256     1,332     1,319     1,259


                                                    Nine Months Ended
----------------------------------------------------------------------
                                                   Sept. 30, Sept. 30,
                                                       2006      2005
----------------------------------------------------------------------
RETAIL BANKING GROUP
 Condensed income
  statement:
     Net interest
      income                                         $4,475    $4,275
     Provision for
      loan and lease
      losses                                            146       123
     Noninterest
      income                                          2,162     1,845
     Inter-segment
      revenue                                            50        34
     Noninterest
      expense                                         3,360     3,136
----------------------------------------------------------------------
     Income from
      continuing
      operations
      before income
      taxes                                           3,181     2,895
     Income taxes                                     1,215     1,097
----------------------------------------------------------------------
        Income from
         continuing
         operations                                   1,966     1,798
        Income from
         discontinued
         operations,
         net of taxes                                    27        31
----------------------------------------------------------------------
          Net income                                 $1,993    $1,829
======================================================================
 Performance and
  other data:
     Efficiency
      ratio(1)                                        50.24%    50.95%
     Average loans                                 $192,539  $179,447
     Average assets                                 205,396   192,190
     Average
      deposits:
        Checking
         deposits:
        Noninterest
         bearing                                     21,072    18,609
        Interest
         bearing                                     37,531    47,481
                                                   -------------------
        Total
         checking
         deposits                                    58,603    66,090
        Savings and
         money market
         deposits                                    37,967    35,495
        Time deposits                                42,706    34,190
                                                   -------------------
           Average
            total
            deposits                                139,276   135,775
     Loan volume                                     26,749    35,388
     Employees at end
      of period                                      29,624    33,754
CARD SERVICES GROUP
  Managed basis(2)
   Condensed income
    statement:
     Net interest
      income                                         $1,850
     Provision for
      loan and lease
      losses                                          1,092
     Noninterest
      income                                          1,076
     Inter-segment
      expense                                             3
     Noninterest
      expense                                           855
----------------------------------------------------------------------
     Income before
      income taxes                                      976
     Income taxes                                       373
----------------------------------------------------------------------
          Net income                                   $603
======================================================================
   Performance and
    other data:
     Efficiency ratio
      (1)                                             29.25%
     Average loans                                  $20,762
     Average assets                                  23,354
     Employees at end
      of period                                       2,755
  Securitization
   adjustments
   Condensed income
    statement:
     Net interest
      income                                        $(1,249)
     Provision for
      loan and lease
      losses                                           (662)
     Noninterest
      income                                            587
   Performance and
    other data:
     Average loans                                  (11,947)
     Average assets                                 (10,101)
  Adjusted basis
   Condensed income
    statement:
     Net interest
      income                                           $601
     Provision for
      loan and lease
      losses                                            430
     Noninterest
      income                                          1,663
     Inter-segment
      expense                                             3
     Noninterest
      expense                                           855
----------------------------------------------------------------------
     Income before
      income taxes                                      976
     Income taxes                                       373
----------------------------------------------------------------------
          Net income                                   $603
======================================================================
    Performance and
     other data:
      Average loans                                  $8,815
      Average assets                                 13,253
COMMERCIAL GROUP(3)
    Condensed income
     statement:
     Net interest
      income                                           $600      $668
     Provision for
      loan and lease
      losses                                              3         3
      Noninterest
       income                                            54        86
     Noninterest
      expense                                           184       174
----------------------------------------------------------------------
     Income before
      income taxes                                      467       577
     Income taxes                                       178       218
----------------------------------------------------------------------
          Net income                                   $289      $359
======================================================================
    Performance and
     other data:
     Efficiency
      ratio(1)                                        28.20%    23.12%
     Average loans                                  $31,648   $29,894
     Average assets                                  34,361    33,374
     Average deposits                                 2,276     2,646
     Loan volume                                      8,835     8,300
     Employees at end
      of period                                       1,246     1,259


(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, as well as its
     Mortgage Banker Finance lending operations with the Home Loans
     Group. Previously, these operations were reported within the
     Commercial Group. This change in organization was retrospectively
     applied to prior periods.
WM-7
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                      Quarter Ended
-       ---------- ---------------------------------------------------
(This table is       Sept. 30,  June 30,  Mar. 31,  Dec. 31, Sept. 30,
 continued from
 "WM-6".)
                         2006      2006      2006      2005      2005
-       ---------- ---------------------------------------------------
HOME LOANS
 GROUP(1)
 Condensed income
  statement:
    Net interest
     income             $206      $206      $269      $415      $480
    Provision for
     loan and
     lease losses          3         1         1         1         1
    Noninterest
     income              263       453       408       324       659
    Inter-segment
     expense              15        18        14         8        12
    Noninterest
     expense             504       589       599       656       641
------------------ --------------------------------------------------
    Income (loss)
     before income
     taxes               (53)       51        63        74       485
    Income taxes
     (benefit)           (20)       20        24        29       183
------------------ --------------------------------------------------
         Net
          income
          (loss)        $(33)      $31       $39       $45      $302
================== ==================================================
 Performance and
  other data:
    Efficiency
     ratio(2)         110.99%    91.93%    90.26%    89.50%    56.68%
    Average loans    $33,718   $30,742   $34,586   $51,073   $53,424
    Average assets    59,110    58,439    64,171    78,365    75,138
    Average
     deposits         20,659    20,124    16,530    19,134    21,563
    Loan volume       37,200    41,364    44,998    48,701    56,471
    Employees at
     end of period    12,598    14,028    16,091    16,193    15,685
CORPORATE
 SUPPORT/TREASURY
 AND OTHER
 Condensed income
  statement:
    Net interest
     expense           $(244)    $(182)    $(175)    $(196)    $(229)
    Noninterest
     income
     (expense)            79       (81)      153        20       (62)
    Noninterest
     expense             232       159        69       100        76
    Minority
     interest
     expense              34        37         -         -         -
------------------ --------------------------------------------------
    Loss before
     income taxes       (431)     (459)      (91)     (276)     (367)
    Income tax
     benefit            (172)     (175)      (51)     (111)     (150)
------------------ --------------------------------------------------
         Net loss      $(259)    $(284)     $(40)    $(165)    $(217)
================== ==================================================
 Performance and
  other data:
    Average loans     $1,245    $1,178    $1,142    $1,148    $1,095
    Average assets    38,245    35,428    32,328    28,130    27,678
    Average
     deposits         45,976    39,082    33,179    35,025    25,531
    Loan volume           58        82        24        96        67
    Employees at
     end of period     4,833     5,132     5,438     5,525     5,516

RECONCILING
 ADJUSTMENTS
 Condensed income
  statement:
    Net interest
     income(3)          $127      $119      $119      $115      $115
    Provision
     (reversal of
     reserve) for
     loan and
     lease
     losses(4)           (21)      (15)      (75)      (22)        3
    Noninterest
     income
     (expense)(5)        (87)     (118)     (162)     (118)      (50)
------------------ --------------------------------------------------
    Income before
     income taxes         61        16        32        19        62
    Income taxes
     (benefit)(6)         (8)      (45)        1       (12)       30
------------------ --------------------------------------------------
         Net
          income         $69       $61       $31       $31       $32
================== ==================================================
 Performance and
  other data:
    Average
     loans(7)        $(1,527)  $(1,458)  $(1,534)  $(1,516)  $(1,550)
    Average
     assets(7)(8)     (1,576)   (1,552)   (1,701)   (1,716)   (1,727)

TOTAL CONSOLIDATED
 Condensed income
  statement:
    Net interest
     income           $1,947    $2,060    $2,117    $2,241    $2,005
    Provision for
     loan and
     lease losses        166       224        82       217        52
    Noninterest
     income            1,570     1,578     1,638     1,526     1,208
    Noninterest
     expense           2,184     2,229     2,138     2,214     1,860
    Minority
     interest
     expense              34        37         -         -         -
------------------ --------------------------------------------------
    Income from
     continuing
     operations
     before income
     taxes             1,133     1,148     1,535     1,336     1,301
    Income taxes         394       389       559       479       488
------------------ --------------------------------------------------
     Income from
      continuing
      operations         739       759       976       857       813
     Income from
      discontinued
      operations,
      net of taxes         9         8         9         8         8
------------------ --------------------------------------------------
         Net
          income        $748      $767      $985      $865      $821
================== ==================================================
 Performance and
  other data:
    Efficiency
     ratio(2)          62.09%    61.27%    56.95%    58.75%    57.88%
    Average loans   $267,832  $266,870  $262,326  $273,874  $262,763
    Average assets   349,542   348,664   343,660   349,172   326,955
    Average
     deposits        208,912   200,252   191,034   196,799   188,320
    Loan volume       49,368    54,895    55,046    63,292    70,732
    Employees at
     end of period    51,056    56,247    60,381    60,798    56,214



                                                    Nine Months Ended
-       ---------- ---------------------------------------------------
(This table is                                      Sept. 30,Sept. 30,
 continued from
 "WM-6".)
                                                       2006      2005
-       ---------- ---------------------------------------------------
HOME LOANS
 GROUP(1)
 Condensed income
  statement:
    Net interest
     income                                            $682    $1,330
    Provision for
     loan and
     lease losses                                         5         3
    Noninterest
     income                                           1,123     2,074
    Inter-segment
     expense                                             47        34
    Noninterest
     expense                                          1,692     1,888
------------------ ---------------------------------------------------
    Income (loss)
     before income
     taxes                                               61     1,479
    Income taxes
     (benefit)                                           24       558
------------------ ---------------------------------------------------
         Net
          income
          (loss)                                        $37      $921
================== ===================================================
 Performance and
  other data:
    Efficiency
     ratio(2)                                         96.22%    56.04%
    Average loans                                   $33,012   $46,842
    Average assets                                   60,555    68,419
    Average
     deposits                                        19,120    19,379
    Loan volume                                     123,562   153,996
    Employees at
     end of period                                   12,598    15,685
CORPORATE
 SUPPORT/TREASURY
 AND OTHER
 Condensed income
  statement:
    Net interest
     expense                                          $(602)    $(639)
    Noninterest
     income
     (expense)                                          152      (151)
    Noninterest
     expense                                            460       209
    Minority
     interest
     expense                                             71         -
------------------ ---------------------------------------------------
    Loss before
     income taxes                                      (981)     (999)
    Income tax
     benefit                                           (397)     (408)
------------------ ---------------------------------------------------
         Net loss                                     $(584)    $(591)
================== ===================================================
 Performance and
  other data:
    Average loans                                    $1,188    $1,066
    Average assets                                   35,354    26,284
    Average
     deposits                                        39,459    24,590
    Loan volume                                         163       181
    Employees at
     end of period                                    4,833     5,516

RECONCILING
 ADJUSTMENTS
 Condensed income
  statement:
    Net interest
     income(3)                                         $367      $343
    Provision
     (reversal of
     reserve) for
     loan and
     lease
     losses(4)                                         (112)      (30)
    Noninterest
     income
     (expense)(5)                                      (368)     (282)
------------------ ---------------------------------------------------
    Income before
     income taxes                                       111        91
    Income taxes
     (benefit)(6)                                       (52)       42
------------------ ---------------------------------------------------
         Net
          income                                       $163       $49
================== ===================================================
 Performance and
  other data:
    Average
     loans(7)                                       $(1,506)  $(1,549)
    Average
     assets(7)(8)                                    (1,609)   (1,764)

TOTAL CONSOLIDATED
 Condensed income
  statement:
    Net interest
     income                                          $6,123    $5,977
    Provision for
     loan and
     lease losses                                       472        99
    Noninterest
     income                                           4,786     3,572
    Noninterest
     expense                                          6,551     5,407
    Minority
     interest
     expense                                             71         -
------------------ ---------------------------------------------------
    Income from
     continuing
     operations
     before income
     taxes                                            3,815     4,043
    Income taxes                                      1,341     1,507
------------------ ---------------------------------------------------
     Income from
      continuing
      operations                                      2,474     2,536
     Income from
      discontinued
      operations,
      net of taxes                                       27        31
------------------ ---------------------------------------------------
         Net
          income                                     $2,501    $2,567
================== ===================================================
 Performance and
  other data:
    Efficiency
     ratio(2)                                         60.05%    56.62%
    Average loans                                  $265,696  $255,700
    Average assets                                  347,310   318,503
    Average
     deposits                                       200,131   182,390
    Loan volume                                     159,309   197,865
    Employees at
     end of period                                   51,056    56,214


(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 reflects 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 financial accounting
     methodology that is used to estimate incurred credit losses
     inherent in the Company's loan portfolio.

(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
     financial accounting methodology that is used to estimate
     incurred credit losses inherent in the Company's loan portfolio.

                  Quarter Ended                    Nine Months Ended
------------------------------------------------- --------------------
Sept. 30,  June 30, Mar. 31, Dec. 31,   Sept. 30,   Sept. 30,Sept. 30,
----------------------------------------------------------------------
    2006      2006     2006     2005        2005        2006     2005
----------------------------------------------------------------------
    $(49)     $(94)   $(167)   $(200)      $(177)      $(103)   $(215)
----------------------------------------------------------------------
WM-8
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                      Quarter Ended
------------------ ---------------------------------------------------
                        Sept. 30, 2006             June 30, 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            $5,085   5.38%     $70    $4,413   4.99%     $56
  Trading assets      6,264   8.92      140     8,595   7.69      165
  Available-for-
   sale
   securities(1):
    Mortgage-
     backed
     securities      21,488   5.41      291    21,840   5.34      292
    Investment
     securities       6,910   5.06       88     6,215   4.91       76
  Loans held for
   sale(2)           25,667   6.82      439    24,536   6.48      398
  Loans held in
   portfolio(2):
    Loans secured
     by real
     estate:
      Home(3)       123,355   5.92    1,826   125,559   5.77    1,809
      Specialty
       mortgage
       finance(4)    19,600   6.14      301    19,603   6.19      304
------------------ ---------        -------- ---------        --------
       Total home
        loans       142,955   5.95    2,127   145,162   5.82    2,113
      Home equity
       loans and
       lines of
       credit        53,253   7.59    1,017    52,262   7.29      950
      Home constr-
       uction(5)      2,059   6.41       33     2,068   6.47       33
      Multi-family   27,100   6.42      435    26,291   6.23      410
      Other real
       estate         5,696   6.76       98     5,585   6.97       98
------------------ ---------        -------- ---------        --------
       Total loans
        secured by
        real
        estate      231,063   6.41    3,710   231,368   6.23    3,604
    Consumer:
      Credit card     9,058  11.39      260     8,448  11.28      238
      Other             284  12.57        9       594   9.74       14
    Commercial        1,760   6.41       29     1,924   5.87       28
------------------ ---------        -------- ---------        --------
       Total loans
        held in
        portfolio   242,165   6.60    4,008   242,334   6.42    3,884
 Other(6)             5,248   5.21       69     5,306   4.80       64
------------------ ---------        -------- ---------        --------
      Total
       interest-
       earning
       assets       312,827   6.51    5,105   313,239   6.30    4,935
Noninterest-
 earning assets:
  Mortgage
   servicing
   rights             7,201                     9,003
  Goodwill            8,339                     8,302
  Other assets(7)    21,175                    18,120
------------------ ---------                 ---------
       Total
        assets     $349,542                  $348,664
================== =========                 =========
Liabilities
Interest-bearing
 liabilities:
  Deposits:
   Interest-
    bearing
    checking
    deposits        $34,866   2.90      255   $37,603   2.61      245
   Savings and
    money market
    deposits         49,144   3.19      396    48,095   2.82      339
   Time deposits     90,001   4.77    1,088    79,541   4.39      877
------------------ ---------        -------- ---------        --------
      Total
       interest-
       bearing
       deposits     174,011   3.95    1,739   165,239   3.53    1,461
  Federal funds
   purchased and
   commercial
   paper              7,382   5.31       99     7,767   4.97       97
  Securities sold
   under
   agreements to
   repurchase        15,676   5.39      216    17,923   4.97      225
  Advances from
   Federal Home
   Loan Banks        52,886   5.28      711    60,862   4.85      745
  Other              27,815   5.59      393    26,239   5.27      347
------------------ ---------        -------- ---------        --------
     Total
      interest-
      bearing
      liabilities   277,770   4.48    3,158   278,030   4.12    2,875
Noninterest-
 bearing sources:
  Noninterest-
   bearing
   deposits          34,901                    35,013
  Other
   liabilities(8)     8,765                     7,698
  Minority
   interests          1,959                     1,965
  Stockholders'
   equity            26,147                    25,958
------------------ ---------                 ---------
      Total
       liabilities
       and stock-
       holders'
       equity      $349,542                  $348,664
================== =========                 =========
  Net interest
   spread and net
   interest income            2.03   $1,947             2.18   $2,060
                                    ========                  ========
  Impact of
   noninterest-
   bearing sources            0.50                      0.47
  Net interest
   margin                     2.53                      2.65



                                                   Quarter Ended
----------------------------------------------------------------------
                                                  Sept. 30, 2005
                                             -------------------------

                                                              Interest
                                                               Income/
                                              Balance   Rate   Expense
----------------------------------------------------------------------
Average Balances
 and Weighted
 Average Interest
 Rates
Assets
Interest-earning
 assets:

  Federal funds
   sold and
   securities
   purchased under
   agreements to
   resell                                      $2,891   3.52%     $26
  Trading assets                                6,532   6.97      114
  Available-for-
   sale
   securities(1):
    Mortgage-
     backed
     securities                                15,666   4.72      185
    Investment
     securities                                 4,321   4.94       53
  Loans held for
   sale(2)                                     49,747   5.33      665
  Loans held in
   portfolio(2):
    Loans secured
     by real
     estate:
      Home(3)                                 108,783   5.05    1,374
      Specialty
       mortgage
       finance(4)                              20,298   5.89      299
------------------                           ---------        --------
       Total home
        loans                                 129,081   5.18    1,673
      Home equity
       loans and
       lines of
       credit                                  49,237   6.17      765
      Home constr-
       uction(5)                                2,001   6.31       32
      Multi-family                             24,550   5.49      337
      Other real
       estate                                   4,904   7.32       91
------------------                           ---------        --------
       Total loans
        secured by
        real
        estate                                209,773   5.51    2,898
    Consumer:
      Credit card                                   -      -        -
      Other                                       686  10.67       18
    Commercial                                  2,557   4.78       31
------------------                           ---------        --------
       Total loans
        held in
        portfolio                             213,016   5.52    2,947
 Other(6)                                       4,356   3.52       39
------------------                           ---------        --------
      Total
       interest-
       earning
       assets                                 296,529   5.42    4,029
Noninterest-
 earning assets:
  Mortgage
   servicing
   rights                                       6,408
  Goodwill                                      6,196
  Other assets(7)                              17,822
------------------                           ---------
       Total
        assets                               $326,955
==================                           =========
Liabilities
Interest-bearing
 liabilities:
  Deposits:
   Interest-
    bearing
    checking
    deposits                                  $45,305   2.12      242
   Savings and
    money market
    deposits                                   42,944   1.92      208
   Time deposits                               63,338   3.41      546
------------------                           ---------        --------
      Total
       interest-
       bearing
       deposits                               151,587   2.60      996
  Federal funds
   purchased and
   commercial
   paper                                        6,719   3.60       61
  Securities sold
   under
   agreements to
   repurchase                                  13,159   3.65      123
  Advances from
   Federal Home
   Loan Banks                                  68,597   3.54      620
  Other                                        21,734   4.12      224
------------------                           ---------        --------
     Total
      interest-
      bearing
      liabilities                             261,796   3.05    2,024
Noninterest-
 bearing sources:
  Noninterest-
   bearing
   deposits                                    36,733
  Other
   liabilities(8)                               6,337
  Minority
   interests                                       14
  Stockholders'
   equity                                      22,075
------------------                           ---------
      Total
       liabilities
       and stock-
       holders'
       equity                                $326,955
==================                           =========
  Net interest
   spread and net
   interest income                                      2.37   $2,005
                                                              ========
  Impact of
   noninterest-
   bearing sources                                      0.36
  Net interest
   margin                                               2.73


(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
     $278 million, $239 million and $86 million for the three months
     ended September 30, 2006, June 30, 2006 and September 30, 2005.

(4) Represents purchased subprime home loan portfolios and subprime
     home loans originated by Long Beach Mortgage held in 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)


                                                 Nine Months Ended
-------------------------------------------- -------------------------
                                                  Sept. 30, 2006
                                             -------------------------

                                                              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       $4,422   5.04%    $169
   Trading assets                               8,831   7.60      503
   Available-for-sale securities(1):
      Mortgage-backed securities               21,163   5.35      848
      Investment securities                     5,997   4.88      220
   Loans held for sale(2)                      26,659   6.51    1,304
   Loans held in portfolio(2):
      Loans secured by real estate:
         Home(3)                              122,232   5.76    5,278
         Specialty mortgage finance(4)         19,718   6.09      900
-------------------------------------------- ---------        --------
            Total home loans                  141,950   5.80    6,178
         Home equity loans and lines of
          credit                               52,289   7.29    2,852
         Home construction(5)                   2,062   6.41       99
         Multi-family                          26,388   6.19    1,226
         Other real estate                      5,482   6.85      284
-------------------------------------------- ---------        --------
            Total loans secured by real
             estate                           228,171   6.22   10,639
      Consumer:
         Credit card                            8,442  11.16      704
         Other                                    499  10.84       40
      Commercial                                1,925   5.87       85
-------------------------------------------- ---------        --------
            Total loans held in portfolio     239,037   6.40   11,468
  Other(6)                                      5,191   4.74      185
-------------------------------------------- ---------        --------
            Total interest-earning assets     311,300   6.30   14,697
Noninterest-earning assets:
   Mortgage servicing rights                    8,151
   Goodwill                                     8,313
   Other assets(7)                             19,546
-------------------------------------------- ---------
           Total assets                      $347,310
============================================ =========
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits      $37,615   2.59      728
      Savings and money market deposits        47,367   2.81      997
      Time deposits                            80,970   4.42    2,695
-------------------------------------------- ---------        --------
           Total interest-bearing deposits    165,952   3.55    4,420
   Federal funds purchased and commercial
    paper                                       7,537   4.92      279
   Securities sold under agreements to
    repurchase                                 16,294   4.95      612
   Advances from Federal Home Loan Banks       60,197   4.84    2,203
   Other                                       26,901   5.23    1,060
-------------------------------------------- ---------        --------
           Total interest-bearing
            liabilities                       276,881   4.11    8,574
Noninterest-bearing sources:
   Noninterest-bearing deposits                34,179
   Other liabilities(8)                         8,445
   Minority interests                           1,497
   Stockholders' equity                        26,308
-------------------------------------------- ---------
          Total liabilities and
           stockholders' equity              $347,310
============================================ =========
   Net interest spread and net interest
    income                                              2.19   $6,123
                                                              ========
   Impact of noninterest-bearing sources                0.45
   Net interest margin                                  2.64



                                                 Nine Months Ended
----------------------------------------------------------------------
                                                  Sept. 30, 2005
                                             -------------------------

                                                              Interest
                                                               Income/
                                              Balance   Rate   Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and securities
    purchased under agreements to resell       $2,078   3.13%     $50
   Trading assets                               6,169   6.15      284
   Available-for-sale securities(1):
      Mortgage-backed securities               15,407   4.61      533
      Investment securities                     4,569   4.74      162
   Loans held for sale(2)                      44,354   5.16    1,719
   Loans held in portfolio(2):
      Loans secured by real estate:
         Home(3)                              110,057   4.86    4,013
         Specialty mortgage finance(4)         19,928   5.84      873
-------------------------------------------- ---------        --------
            Total home loans                  129,985   5.01    4,886
         Home equity loans and lines of
          credit                               47,056   5.81    2,048
         Home construction(5)                   2,096   6.16       97
         Multi-family                          23,651   5.28      937
         Other real estate                      5,138   6.94      269
-------------------------------------------- ---------        --------
            Total loans secured by real
             estate                           207,926   5.28    8,237
      Consumer:
         Credit card                                -      -        -
         Other                                    726  10.64       58
      Commercial                                2,694   4.93      100
-------------------------------------------- ---------        --------
            Total loans held in portfolio     211,346   5.30    8,395
  Other(6)                                      4,280   3.42      109
-------------------------------------------- ---------        --------
            Total interest-earning assets     288,203   5.20   11,252
Noninterest-earning assets:
   Mortgage servicing rights                    6,232
   Goodwill                                     6,196
   Other assets(7)                             17,872
-------------------------------------------- ---------
           Total assets                      $318,503
============================================ =========
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits      $47,609   1.86      663
      Savings and money market deposits        42,125   1.65      520
      Time deposits                            58,089   3.12    1,361
-------------------------------------------- ---------        --------
           Total interest-bearing deposits    147,823   2.29    2,544
   Federal funds purchased and commercial
    paper                                       4,330   3.19      104
   Securities sold under agreements to
    repurchase                                 15,377   3.11      363
   Advances from Federal Home Loan Banks       68,241   3.20    1,652
   Other                                       20,554   3.98      612
-------------------------------------------- ---------        --------
           Total interest-bearing
            liabilities                       256,325   2.73    5,275
Noninterest-bearing sources:
   Noninterest-bearing deposits                34,567
   Other liabilities(8)                         5,897
   Minority interests                              13
   Stockholders' equity                        21,701
-------------------------------------------- ---------
          Total liabilities and
           stockholders' equity              $318,503
============================================ =========
   Net interest spread and net interest
    income                                              2.47   $5,977
                                                              ========
   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
     $706 million and $159 million for the nine months ended September
     30, 2006 and September 30, 2005.

(4) Represents purchased subprime home loan portfolios and subprime
     home loans originated by Long Beach Mortgage held in 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 June 30,
                                       2006
                                     to Sept.     Sept. 30, June 30,
                                     30, 2006          2006    2006

Deposits
 Retail deposits:
  Checking deposits:
    Noninterest bearing                     $16    $22,466   $22,450
    Interest bearing                     (2,197)    33,761    35,958
--------------------------------- --------------- --------------------
     Total checking deposits             (2,181)    56,227    58,408
  Savings and money market
   deposits                               1,817     39,481    37,664
  Time deposits(1)                        3,676     47,361    43,685
--------------------------------- --------------- --------------------
     Total retail deposits                3,312    143,069   139,757
  Commercial business deposits              206     15,831    15,625
  Wholesale deposits                      3,642     40,666    37,024
  Custodial and escrow
   deposits(2)                             (836)    11,316    12,152
--------------------------------- --------------- --------------------
     Total deposits                      $6,324   $210,882  $204,558
================================= =============== ====================



                                          Mar. 31,  Dec. 31, Sept. 30,
                                             2006      2005      2005

Deposits
 Retail deposits:
  Checking deposits:
    Noninterest bearing                   $22,378   $20,752   $20,622
    Interest bearing                       39,289    42,253    44,294
----------------------------------------------------------------------
     Total checking deposits               61,667    63,005    64,916
  Savings and money market deposits        38,197    36,664    35,579
  Time deposits(1)                         41,534    40,359    40,476
----------------------------------------------------------------------
     Total retail deposits                141,398   140,028   140,971
  Commercial business deposits             14,559    11,459     9,758
  Wholesale deposits                       31,277    29,917    24,534
  Custodial and escrow deposits(2)         12,768    11,763    15,149
----------------------------------------------------------------------
     Total deposits                      $200,002  $193,167  $190,412
======================================================================


(1) Weighted average remaining maturity of time deposits was 10 months
     at September 30, 2006, June 30, 2006 and March 31, 2006, 11
     months at December 31, 2005 and 12 months at September 30, 2005.
(2) Substantially all custodial and escrow deposits reside in
     noninterest-bearing checking accounts.


                                     Sept. 30,    June 30,    Mar. 31,
                                         2006        2006        2006
------------------------------- -- -----------------------------------
Retail Deposit Accounts (number of
 accounts)
  Checking                         10,935,287  10,627,854  10,223,664
  Money market and savings          6,379,068   6,161,187   5,929,653
------------------------------- -- -----------------------------------
    Total transaction accounts,
     end of period(1)              17,314,355  16,789,041  16,153,317
================================== ===================================

  Net change in checking accounts     307,433     404,190     340,157
  Net change in total transaction
   accounts                           525,314     635,724     575,708


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

  Net change in checking accounts                 203,190     253,095
  Net change in total transaction accounts        337,232     418,064


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


                    Sept. 30, June 30,   Mar. 31, Dec. 31,   Sept. 30,
                        2006     2006       2006     2005        2005
----------------------------------------------------------------------
Retail Banking
 Stores
Stores,
 beginning of
 period                2,201    2,168      2,140    2,051       1,997
   Stores opened
    during the
    quarter               25       35         29       97 (1)      56
   Stores closed
    during the
    quarter               (1)      (2)(1)     (1)      (8)         (2)
------------------- --------------------------------------------------
Stores, end of
 period                2,225    2,201      2,168    2,140       2,051
======================================================================


(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
----------------------------------------------------------------------
                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                            2006     2006     2006     2005      2005
----------------------------------------------------------------------
Loan Volume
   Home loans:
    Short-term
     adjustable-rate
     loans(1):
      Option ARMs        $11,601  $11,256   $8,777  $12,565   $16,353
      Other ARMs              42    1,859    2,943    1,222     1,237
----------------------------------------------------------------------
         Total short-
          term
          adjustable-
          rate loans      11,643   13,115   11,720   13,787    17,590
    Medium-term
     adjustable-rate
     loans(2)             16,788   16,041   14,865   14,581    16,454
    Fixed-rate loans       9,816   13,695   17,605   22,061    22,098
----------------------------------------------------------------------
         Total home
          loan
          volume(3)       38,247   42,851   44,190   50,429    56,142
   Home equity loans
    and lines of credit    7,419    8,251    7,306    9,118    10,828
   Home construction(4)      269      421      493      479       370
   Multi-family            2,186    2,230    2,034    2,595     2,580
   Other real estate         983      787      716      419       465
----------------------------------------------------------------------
         Total loans
          secured by
          real estate     49,104   54,540   54,739   63,040    70,385
   Consumer(5)                26       36       49       79       182
   Commercial                238      319      258      173       165
----------------------------------------------------------------------
         Total loan
          volume         $49,368  $54,895  $55,046  $63,292   $70,732
======================================================================
Loan Volume by Channel
   Retail                $22,239  $23,709  $22,580  $27,676   $32,614
   Wholesale              14,964   14,798   16,722   17,190    20,000
   Purchased              11,560   12,033    7,318   10,092     8,271
   Correspondent             605    4,355    8,426    8,334     9,847
----------------------------------------------------------------------
         Total loan
          volume by
          channel        $49,368  $54,895  $55,046  $63,292   $70,732
======================================================================
Refinancing Activity(6)
   Home loan
    refinancing          $20,571  $26,667  $26,871  $30,727   $30,556
   Home equity loans
    and lines of credit
    and consumer             222      161      215      219       245
   Home construction
    loans                     90       17       17       12        17
   Multi-family and
    other real estate        763      799      774      831       738
----------------------------------------------------------------------
         Total
          refinancing    $21,646  $27,644  $27,877  $31,789   $31,556
======================================================================

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 zero, $104 million, $266 million, $304 million and $466 million
 for the quarters ended September 30, 2006, June 30, 2006, March 31,
 2006, December 31, 2005 and September 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. Specialty mortgage finance loan volumes
     were $7.79 billion, $7.28 billion, $6.42 billion, $9.67 billion,
     and $8.41 billion for the three months ended September 30, 2006,
     June 30, 2006, March 31, 2006, December 31, 2005, and September
     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)

                                                    Nine Months Ended
----------------------------------------------------------------------
                                                   Sept. 30, Sept. 30,
                                                       2006      2005
----------------------------------------------------------------------
Loan Volume
    Home loans:
    Short-term adjustable-rate loans(1):
      Option ARMs                                   $31,635   $51,561
      Other ARMs                                      4,843     2,578
----------------------------------------------------------------------
         Total short-term adjustable-rate loans      36,478    54,139
    Medium-term adjustable-rate loans(2)             47,694    43,250
    Fixed-rate loans                                 41,116    59,904
----------------------------------------------------------------------
         Total home loan volume(3)                  125,288   157,293
   Home equity loans and lines of credit             22,977    30,603
   Home construction(4)                               1,183       873
   Multi-family                                       6,450     7,160
   Other real estate                                  2,486     1,180
----------------------------------------------------------------------
         Total loans secured by real estate         158,384   197,109
   Consumer(5)                                          111       308
   Commercial                                           814       448
----------------------------------------------------------------------
         Total loan volume                         $159,309  $197,865
======================================================================
Loan Volume by Channel
   Retail                                           $68,528   $88,749
   Wholesale                                         46,484    57,039
   Purchased                                         30,911    21,763
   Correspondent                                     13,386    30,314
----------------------------------------------------------------------
         Total loan volume by channel              $159,309  $197,865
======================================================================
Refinancing Activity(6)
   Home loan refinancing                            $74,108   $89,191
   Home equity loans and lines of credit and
    consumer                                            599     1,112
   Home construction loans                              124        41
   Multi-family and other real estate                 2,336     2,097
----------------------------------------------------------------------
         Total refinancing                          $77,167   $92,441
======================================================================

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 $1.51 billion for the nine months ended September
 30, 2006 and September 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. Specialty mortgage finance loan volumes
     were $21.49 billion and $24.82 billion for the nine months ended
     September 30, 2006 and September 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
                                        June 30,
                                           2006
                                        to Sept.   Sept. 30, June 30,
                                         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)               $(1,968)  $64,822   $66,790
             Other ARMs                     1,958    18,695    16,737
----------------------------------------------------------------------
                Total short-term
                 adjustable-rate loans        (10)   83,517    83,527
           Medium-term adjustable-rate
            loans(3)                       (4,292)   47,740    52,032
           Fixed-rate loans                  (214)    9,928    10,142
----------------------------------------------------------------------
              Total home loans(4)          (4,516)  141,185   145,701
       Home equity loans and lines of
        credit                              1,383    54,364    52,981
       Home construction(5)                    (5)    2,077     2,082
       Multi-family                           658    27,407    26,749
       Other real estate                      332     5,869     5,537
----------------------------------------------------------------------
             Total loans secured by
              real estate                  (2,148)  230,902   233,050
    Consumer:
       Credit card                            356     8,807     8,451
       Other                                   (6)      281       287
    Commercial                                 60     1,775     1,715
----------------------------------------------------------------------
             Total loans held in
              portfolio(6)                 (1,738)  241,765   243,503
 Less: allowance for loan and lease
  losses                                      113    (1,550)   (1,663)
----------------------------------------------------------------------
             Total net loans held in
              portfolio                    (1,625)  240,215   241,840
 Loans held for sale(7)                       378    23,720    23,342
----------------------------------------------------------------------
             Total net loans              $(1,247) $263,935  $265,182
======================================================================



                                        Mar. 31,   Dec. 31,  Sept. 30,
                                          2006       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)              $70,169   $70,191   $67,863
              Other ARMs                   15,781    14,666    12,956
----------------------------------------------------------------------
                 Total short-term
                  adjustable-rate
                  loans                    85,950    84,857    80,819
            Medium-term adjustable-
             rate loans(3)                 49,391    41,511    43,610
            Fixed-rate loans                8,660     8,922     8,616
----------------------------------------------------------------------
              Total home loans(4)         144,001   135,290   133,045
       Home equity loans and lines of
        credit                             51,872    50,851    50,066
       Home construction(5)                 2,095     2,037     2,019
       Multi-family                        26,151    25,601    25,014
       Other real estate                    5,353     5,035     4,929
----------------------------------------------------------------------
             Total loans secured by
              real estate                 229,472   218,814   215,073
    Consumer:
       Credit card                          7,906     8,043         -
       Other                                  602       638       669
    Commercial                              2,024     2,137     2,452
----------------------------------------------------------------------
             Total loans held in
              portfolio(6)                240,004   229,632   218,194
 Less: allowance for loan and lease
  losses                                   (1,642)   (1,695)   (1,264)
----------------------------------------------------------------------
             Total net loans held in
              portfolio                   238,362   227,937   216,930
 Loans held for sale(7)                    25,020    33,582    48,018
----------------------------------------------------------------------
             Total net loans             $263,382  $261,519  $264,948
======================================================================


(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 of Option
      ARM loans exceeded their original principal amount was $654
      million at September 30, 2006, $461 million at June 30, 2006,
      $291 million at March 31, 2006, $157 million at December 31,
      2005, and $76 million at September 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 held in portfolio. Specialty mortgage
      finance loans were $20.08 billion, $20.50 billion, $20.24
      billion, $21.15 billion, and $21.16 billion at September 30,
      2006, June 30, 2006, March 31, 2006, December 31, 2005, and
      September 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 $1.61
      billion, $1.62 billion, $1.61 billion, $1.53 billion, and $1.47
      billion at September 30, 2006, June 30, 2006, March 31, 2006,
      December 31, 2005, and September 30, 2005.

(7)  Fair value of loans held for sale was $23.80 billion, $23.35
      billion, $25.03 billion, $33.70 billion, and $48.14 billion as
      of September 30, 2006, June 30, 2006, March 31, 2006, December
      31, 2005 and September 30, 2005.
WM-14
                     Washington Mutual, Inc.
                  Selected Financial Information
                      (dollars in millions)
                           (unaudited)


                                            Change
                                             from
                                            June 30,         Weighted
                                            2006 to           Average
                                             Sept.  Sept. 30, Coupon
                                            30, 2006  2006     Rate
Selected Loans Secured by Real Estate and
 MBS
  Home loans held in portfolio:
    Short-term adjustable-rate loans(1):
        Option ARMs                         $(1,968) $64,822    7.11 %
        Other ARMs                            1,958   18,695    7.05
----------------------------------------------------------------------
         Total short-term adjustable-rate
          loans                                 (10)  83,517    7.10
    Medium-term adjustable-rate loans(2)     (4,292)  47,740    5.71
    Fixed-rate loans                           (214)   9,928    6.59
----------------------------------------------------------------------
         Total home loans held in portfolio  (4,516) 141,185    6.59
  Home equity loans and lines of credit:
    Short-term (Prime-based or treasury-
     based)(1)                                 (809)  35,831    8.40
    Fixed-rate loans                          2,192   18,533    7.16
----------------------------------------------------------------------
         Total home equity loans and lines
          of credit                           1,383   54,364    7.98
  Multi-family loans held in portfolio:
    Short-term adjustable-rate loans(1):
        Option ARMs                            (288)   8,967    6.95
        Other ARMs                             (237)   5,858    6.94
----------------------------------------------------------------------
         Total short-term adjustable-rate
          loans                                (525)  14,825    6.95
    Medium-term adjustable-rate loans(2)      1,125   10,906    5.59
    Fixed-rate loans                             58    1,676    6.45
----------------------------------------------------------------------
         Total multi-family loans held in
          portfolio                             658   27,407    6.38
----------------------------------------------------------------------
         Total selected loans held in
          portfolio secured by real
          estate(3)                          (2,475) 222,956    6.90
  Loans held for sale(4)                        356   23,387    6.64
----------------------------------------------------------------------
         Total selected loans secured by
          real estate                        (2,119) 246,343    6.88
  MBS(5):
    Short-term adjustable-rate MBS(1)          (976)   8,082    5.55
    Medium-term adjustable-rate MBS(2)        1,450    5,303    5.09
    Fixed-rate MBS                              441    8,968    5.31
----------------------------------------------------------------------
             Total MBS(6)                       915   22,353    5.35
----------------------------------------------------------------------
         Total selected loans secured by
          real estate and MBS               $(1,204)$268,696    6.75
======================================================================



                                           Weighted          Weighted
                                            Average           Average
                                  June 30,  Coupon  Sept. 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                $66,790    6.73 % $67,863    5.44 %
        Other ARMs                  16,737    6.81    12,956    6.27
---------------------------------------------------------------------
         Total short-term
          adjustable-rate loans     83,527    6.75    80,819    5.57
    Medium-term adjustable-rate
     loans(2)                       52,032    5.68    43,610    5.58
    Fixed-rate loans                10,142    6.28     8,616    6.60
---------------------------------------------------------------------
         Total home loans held in
          portfolio                145,701    6.34   133,045    5.64
  Home equity loans and lines of
   credit:
    Short-term (Prime-based or
     treasury-based)(1)             36,640    8.33    37,328    6.76
    Fixed-rate loans                16,341    6.88    12,738    6.45
---------------------------------------------------------------------
         Total home equity loans
          and lines of credit       52,981    7.88    50,066    6.68
  Multi-family loans held in
   portfolio:
    Short-term adjustable-rate
     loans(1):
        Option ARMs                  9,255    6.54     9,449    5.30
        Other ARMs                   6,095    6.66     6,451    5.49
---------------------------------------------------------------------
         Total short-term
          adjustable-rate loans     15,350    6.59    15,900    5.38
    Medium-term adjustable-rate
     loans(2)                        9,781    5.46     7,525    5.26
    Fixed-rate loans                 1,618    6.48     1,589    6.68
---------------------------------------------------------------------
         Total multi-family loans
          held in portfolio         26,749    6.17    25,014    5.42
---------------------------------------------------------------------
         Total selected loans
          held in portfolio
          secured by real
          estate(3)                225,431    6.68   208,125    5.87
  Loans held for sale(4)            23,031    6.43    47,888    5.34
---------------------------------------------------------------------
         Total selected loans
          secured by real estate   248,462    6.66   256,013    5.77
  MBS(5):
    Short-term adjustable-rate
     MBS(1)                          9,058    5.42    10,289    4.58
    Medium-term adjustable-rate
     MBS(2)                          3,853    4.97     2,656    5.02
    Fixed-rate MBS                   8,527    5.27     4,216    5.25
---------------------------------------------------------------------
             Total MBS(6)           21,438    5.28    17,161    4.81
---------------------------------------------------------------------
         Total selected loans
          secured by real estate
          and MBS                 $269,900    6.55  $273,174    5.71
=====================================================================


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

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

(3) At September 30, 2006, June 30, 2006, and September 30, 2005, the
     adjustable-rate loans with lifetime caps were $190.36 billion,
     $193.17 billion, and $182.35 billion with a lifetime weighted
     average cap rate of 12.13%, 12.13% and 12.30%.

(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 September 30, 2006, June 30, 2006 and September 30, 2005, the
     par value of adjustable-rate MBS with lifetime caps were $13.20
     billion, $12.81 billion and $12.74 billion with a lifetime
     weighted average cap rate of 10.41%, 10.42% and 10.19%.




                                                June 30,   Dec. 31,
                                                 2006 to    2005 to
                                                Sept. 30,   Sept. 30,
                                                   2006       2006
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
  Balance, beginning of period                    $23,342    $33,582
    Mortgage loans originated, purchased and
     transferred from held in portfolio            31,391     91,529
    Mortgage loans transferred to held in
     portfolio                                       (262)    (2,762)
    Mortgage loans sold and other(1)              (30,772)   (98,307)
    Net change in consumer loans held for
     sale                                              21       (322)
---------------------------------------------------------------------
  Balance, end of period                          $23,720    $23,720
=====================================================================

Rollforward of Home Loans Held in
 Portfolio
  Balance, beginning of period                   $145,701   $135,290
    Loans originated, purchased and
     transferred from held for sale                 8,013     39,291
    Loan payments, transferred to held for
     sale and other                               (12,529)   (33,396)
---------------------------------------------------------------------
  Balance, end of period                         $141,185   $141,185
=====================================================================

(1)   The unpaid principal balance ("UPB") of home loans sold was
       $30.24 billion for the three months ended September 30, 2006
       and $96.57 billion for the nine months ended September 30,
       2006.
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 Servicing
 of Home Mortgage
 Loans(1)              Sept. 30, June 30,  Mar. 31, Dec. 31, Sept. 30,
                           2006     2006      2006     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             $217     $184      $157     $213      $206
   Revaluation gain
    (loss) from
    derivatives
    economically
    hedging loans held
    for sale                (98)      67        52       25        73
---------------------- -----------------------------------------------

     Gain from home
      mortgage loans
      and originated
      mortgage-backed
      securities, net
      of hedging and
      risk management
      instruments           119      251       209      238       279
---------------------- -----------------------------------------------
Home mortgage loan
 servicing revenue
 (expense):
   Home mortgage loan
    servicing
    revenue(3)              525      586       572      544       534
   Change in MSR fair
    value due to
    payments on loans
    and other(1)           (410)    (460)     (409)    (483)     (480)
---------------------- -----------------------------------------------
        Net mortgage
         loan
         servicing
         revenue            115      126       163       61        54
   Change in MSR fair
    value due to
    valuation inputs
    or assumptions(1)      (469)     435       413      805     1,193
   Revaluation gain
    (loss) from
    derivatives
    economically
    hedging MSR(1)          353     (433)     (522)    (654)     (810)
   Adjustment to MSR
    fair value for MSR
    sale                      -     (157)        -        -         -
---------------------- -----------------------------------------------
        Home mortgage
         loan
         servicing
         revenue
         (expense),
         net of MSR
         valuation
       changes and
        derivative
        risk
        management
        instruments          (1)     (29)       54      212       437
---------------------- -----------------------------------------------
        Total revenue
         from sales
         and servicing
         of home
         mortgage
         loans             $118     $222      $263      450       716
---------------------- ============================
Reconciliation from
 pro forma to GAAP
 results(1):
   Deduct: Increase in
    MSR fair value not
    recorded due to
    lower of cost or
    fair value
    accounting                                          (39)      (10)
   Other                                                  7         4
----------------------                              ------------------
        Total GAAP
         revenue from
         sales and
         servicing of
         home mortgage
         loans                                         $418      $710
=======================                            ===================

                                               Nine Months Ended
                                         -----------------------------
                                                    Pro Forma Results
                                                         Assuming
                                                      Retrospective
                                                      Application of
                                                       SFAS No. 156
----------------------------------------------------------------------
Detail of Revenue from
 Sales and Servicing
 of Home Mortgage
 Loans(1)                                 Sept. 30,          Sept. 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                                $558               $637
   Revaluation gain
    from derivatives
    economically
    hedging loans held
    for sale                                    22                 74
----------------------------------------------------------------------
        Gain from home
         mortgage
         loans and
         originated
         mortgage-
         backed
         securities,
       net of hedging
        and risk
        management
        instruments                            580                711
----------------------------------------------------------------------
Home mortgage loan
 servicing revenue
 (expense):
   Home mortgage loan
    servicing
    revenue(3)                               1,683              1,567
   Change in MSR fair
    value due to
    payments on loans
    and other(1)                            (1,279)            (1,246)
----------------------------------------------------------------------
        Net mortgage
         loan
         servicing
         revenue                               404                321
   Change in MSR fair
    value due to
    valuation inputs
    or assumptions(1)                          379                733
   Revaluation loss
    from derivatives
    economically
    hedging MSR(1)                            (603)              (159)
   Adjustment to MSR
    fair value for MSR
    sale                                      (157)                 -
----------------------------------------------------------------------
        Home mortgage
         loan
         servicing
         revenue, net
         of MSR
         valuation
       changes and
        derivative
        risk
        management
        instruments                             23                895
----------------------------------------------------------------------
        Total revenue
         from sales
         and servicing
         of home
         mortgage
         loans                                $603              1,606
------------------------------------------=========
Reconciliation from
 pro forma to GAAP
 results(1):
   Deduct: Increase in
    MSR fair value not
    recorded due to
    lower of cost or
    fair value
    accounting                                                    (18)
   Other                                                           12
----------------------                              ------------------
        Total GAAP
         revenue from
         sales and
         servicing of
         home mortgage
         loans                                                 $1,600
=================================================== ==================

(1) The results for the quarters ended September 30, 2006, June 30,
     2006, March 31, 2006 and the nine months ended September 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. The Company adopted Statement No. 156 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
     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
---------------------- -----------------------------------------------
                       Sept. 30, June 30,  Mar. 31, Dec. 31, Sept. 30,
                           2006     2006      2006     2005      2005
---------------------- -----------------------------------------------
MSR Risk
 Management(1):
   Change in MSR fair
    value due to
    valuation inputs
    or assumptions(2)     $(469)    $435      $413     $805    $1,193
Gain (loss) on MSR
 risk management
 instruments:
   Revaluation gain
    (loss) from
    derivatives             353     (433)     (522)    (654)     (810)
   Revaluation gain
    (loss) from
    certain trading
    securities(2)            39      (47)      (42)    (165)     (219)
   Loss from certain
    available-for-sale
    securities               (1)       -         -        -         -
---------------------- -----------------------------------------------
        Total gain
         (loss) on MSR
         risk
         management
         instruments        391     (480)     (564)    (819)   (1,029)
---------------------- -----------------------------------------------
          Total MSR
           risk
           management      $(78)    $(45)    $(151)    $(14)     $164
====================== ===============================================
Reconciliation from
 pro forma to GAAP
 results(2):
   Revaluation loss
    from certain
    trading securities                                $(165)    $(219)

   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)
=================================================== ==================

                                               Nine Months Ended
                                         -----------------------------

                                                    ------------------
                                                    Pro Forma Results
                                                         Assuming
                                                      Retrospective
                                                      Application of
                                                       SFAS No. 156
---------------------- -----------------------------------------------
                                          Sept. 30,          Sept. 30,
                                              2006               2005
---------------------- -----------------------------------------------
MSR Risk
 Management(1):
   Change in MSR fair
    value due to
    valuation inputs
    or assumptions(2)                         $379               $733
Gain (loss) on MSR
 risk management
 instruments:
   Revaluation loss
    from derivatives                          (603)              (159)
   Revaluation loss
    from certain
    trading
    securities(2)                              (50)               (68)
   Loss from certain
    available-for-sale
    securities                                  (1)               (18)
---------------------- -----------------------------------------------
        Total loss on
         MSR risk
         management
         instruments                          (654)              (245)
----------------------------------------------------------------------
          Total MSR
           risk
           management                        $(275)              $488
====================== ===============================================
Reconciliation from
 pro forma to GAAP
 results(2):
   Revaluation loss
    from certain
    trading securities                                           $(68)
   Add back: Decrease
    in value of
    trading securities
    assumed
    transferred
     from the
      available-for-
      sale securities
      portfolio                                                     2
----------------------                              ------------------
        Total GAAP
         impact of MSR
         risk
         management
         trading
         securities                                              $(66)
======================================================================

(1) Excludes $157 million downward adjustment to MSR fair value
     recognized in the quarter ended June 30, 2006.

(2) Refer to footnote (1) on table WM-15.
WM-17
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Quarter Ended
----------------------------------------------------------------------
                     Sept. 30, June 30, Mar. 31,    Dec. 31, Sept. 30,
                         2006     2006     2006        2005      2005
----------------------------------------------------------------------
Rollforward of
 Mortgage Servicing
 Rights(1)(2)
 Balance, beginning
  of period            $9,162   $8,736   $8,041      $7,042    $5,730
   Home loans:
    Additions             533      607      633         703       605
    Changes in MSR
     fair value due
     to valuation
     inputs or
     assumptions         (469)     435      413           -         -
    Payments on loans
     and other           (410)    (460)    (409)          -         -
    Adjustment to MSR
     fair value for
     MSR sale               -     (157)       -           -         -
    Fair value basis
     adjustment (3)         -        -       57           -         -
    Amortization            -        -        -        (482)     (555)
    Impairment
     reversal               -        -        -         353       413
    Statement No. 133
     MSR accounting
     valuation
     adjustments            -        -        -         419       849
    Sale of MSR        (2,527)       -        -           -         -
   Net change in
    commercial real
    estate MSR             (1)       1        1           6         -
----------------------------------------------------------------------
 Balance, end of
  period               $6,288   $9,162   $8,736      $8,041    $7,042
======================================================================
Rollforward of
 Valuation Allowance
 for MSR Impairment
 Balance, beginning
  of period                $-       $-     $914      $1,312    $1,746
  Impairment reversal       -        -        -        (353)     (413)
  Other-than-
   temporary
   impairment               -        -        -         (43)      (18)
  Other                     -        -     (914)(3)      (2)       (3)
----------------------------------------------------------------------
 Balance, end of
  period                   $-       $-       $-        $914    $1,312
======================================================================
Rollforward of
 Mortgage Loans
 Serviced for Others
 Balance, beginning
  of period          $570,352 $569,501 $563,208    $547,578  $543,324
  Home loans:
   Additions           29,899   30,949   35,026      51,642    43,418
   Sale of servicing (141,842)      (9)       -           -         -
   Loan payments and
    other             (19,288) (30,368) (29,063)    (37,245)  (39,005)
  Net change in
   commercial real
   estate loans            87      279      330       1,233      (159)
----------------------------------------------------------------------
 Balance, end of
  period             $439,208 $570,352 $569,501    $563,208  $547,578
======================================================================

                     Sept. 30, June 30,  Mar. 31,   Dec. 31, Sept. 30,
                         2006     2006     2006        2005      2005
----------------------------------------------------------------------
Total Servicing
 Portfolio
  Mortgage loans
   serviced for
   others            $439,208 $570,352 $569,501    $563,208  $547,578
  Consumer loans
   serviced for
   others              12,654   12,205   11,822      11,014         -
  Servicing on
   retained MBS
   without MSR          1,199    1,262    1,334       1,404     1,487
  Servicing on owned
   loans              245,925  247,489  245,469     242,114   245,165
  Subservicing
   portfolio          137,089      552      588         629       749
----------------------------------------------------------------------
 Total servicing
  portfolio          $836,075 $831,860 $828,714    $818,369  $794,979
======================================================================


                                                 September 30, 2006
----------------------------------------------------------------------
                                                           Weighted
                                                Unpaid      Average
                                                Principal  Servicing
                                                 Balance       Fee
----------------------------------------------------------------------
                                                           (in basis
Mortgage Loans Serviced for Others by Loan                  points,
 Type                                                      annualized)
      Government                                     $28           43
      Agency                                     240,855           31
      Private                                    163,851           51
      Specialty home loans                        34,474           50
----------------------------------------------------------------------
   Total mortgage loans serviced for others(4)  $439,208           40
======================================================================

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

(2) MSR as a percentage of mortgage loans serviced for others was
     1.43%, 1.61%, 1.53%, 1.43% and 1.29% at September 30, 2006, June
     30, 2006, March 31, 2006, December 31, 2005 and September 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 6.21% at September
     30, 2006.
WM-18
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Quarter Ended
----------------------------------------------------------------------
                       Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                           2006     2006     2006     2005      2005
----------------------------------------------------------------------
Allowance for Loan and
 Lease Losses
  Balance, beginning
   of quarter            $1,663   $1,642   $1,695   $1,264    $1,243
  Allowance
   transferred to
   loans held for sale     (125)     (87)     (30)    (241)        -
  Allowance acquired
   through business
   combinations               -        -        -      592         -
  Provision for loan
   and lease losses         166      224       82      217        52
----------------------------------------------------------------------
                          1,704    1,779    1,747    1,832     1,295
  Loans charged off:
    Loans secured by
     real estate:
      Home                  (12)     (11)     (11)      (7)       (9)
      Specialty
       mortgage
       finance(1)           (41)     (20)     (20)     (14)      (15)
----------------------------------------------------------------------
           Total home
            loans
            charged
            off             (53)     (31)     (31)     (21)      (24)
      Home equity
       loans and lines
       of credit            (14)      (7)      (5)      (6)      (10)
      Home
       construction(2)       (3)       -        -        -         -
      Other real
       estate                (2)       -       (3)      (1)       (4)
----------------------------------------------------------------------
           Total loans
            secured by
            real
            estate          (72)     (38)     (39)     (28)      (38)
    Consumer:
      Credit card           (98)     (94)     (63)    (138)        -
      Other                  (3)      (6)      (7)      (8)       (8)
    Commercial               (6)      (4)      (8)     (16)       (4)
----------------------------------------------------------------------
            Total
             loans
             charged
             off           (179)    (142)    (117)    (190)      (50)
  Recoveries of loans
   previously charged
   off:
    Loans secured by
     real estate:
      Home                    -        1        -        -         -
      Specialty
       mortgage
       finance(1)             -        1        1        1         1
----------------------------------------------------------------------
           Total home
            loan
            recoveries        -        2        1        1         1
      Home equity
       loans and lines
       of credit              2        3        1        7         1
      Multi-family            -        1        -        -         2
      Other real
       estate                 -        1        1        -         8
----------------------------------------------------------------------
           Total loans
            secured by
            real
            estate            2        7        3        8        12
    Consumer:
      Credit card            16       15        4       40         -
      Other                   4        3        4        3         5
    Commercial                3        1        1        2         2
----------------------------------------------------------------------
           Total
            recoveries
            of loans
            previously
            charged
            off              25       26       12       53        19
----------------------------------------------------------------------
    Net charge-offs        (154)    (116)    (105)    (137)      (31)
----------------------------------------------------------------------
  Balance, end of
   quarter               $1,550   $1,663   $1,642   $1,695    $1,264
======================================================================

  Net charge-offs
   (annualized) as a
   percentage
    of average loans
     held in portfolio     0.26 %   0.19 %   0.18 %   0.24 %    0.06 %
  Allowance as a
   percentage of total
   loans held in
   portfolio               0.64     0.68     0.68     0.74      0.58

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

(2) Represents loans to builders for the purpose of financing the
     acquisition, development and construction of single-family
     residences for sale and construction loans made directly to the
     intended occupant of a single-family residence.
WM-19
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                        Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
                            2006     2006     2006     2005      2005
----------------------------------------------------------------------
Nonperforming Assets
 and Restructured Loans
  Nonaccrual
   loans(1)(2):
   Loans secured by
    real estate:
     Home                   $568     $512     $490     $565      $472
     Specialty mortgage
      finance(3)           1,114    1,085    1,012      872       755
----------------------------------------------------------------------
       Total home
        nonaccrual
        loans              1,682    1,597    1,502    1,437     1,227
     Home equity loans
      and lines of
      credit                 169      110       92       88        68
     Home
      construction(4)         35       31       15       10        10
     Multi-family             31       19       21       25        18
     Other real estate        53       56       69       70        69
----------------------------------------------------------------------
       Total nonaccrual
        loans secured
        by real estate     1,970    1,813    1,699    1,630     1,392
    Consumer                   1        1        6        8         8
    Commercial                16       16       26       48        65
----------------------------------------------------------------------
       Total nonaccrual
        loans held in
        portfolio          1,987    1,830    1,731    1,686     1,465
  Foreclosed assets(5)       405      330      309      276       256
----------------------------------------------------------------------
       Total
        nonperforming
        assets            $2,392   $2,160   $2,040   $1,962    $1,721
       As a percentage
        of total assets     0.69%    0.62%    0.59%    0.57%     0.52%
  Restructured loans         $19      $20      $21      $22       $25
----------------------------------------------------------------------
         Total
          nonperforming
          assets and
          restructured
          loans           $2,411   $2,180   $2,061   $1,984    $1,746
======================================================================

(1) Nonaccrual loans held for sale, which are excluded from the
     nonaccrual balances presented above, were $129 million, $122
     million, $201 million, $245 million and $152 million at September
     30, 2006, June 30, 2006, March 31, 2006, December 31, 2005 and
     September 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) Credit card loans are exempt under regulatory rules from being
     classified as nonaccrual because they are charged off when they
     are determined to be uncollectible, or by the end of the month in
     which the account becomes 180 days past due.

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

(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) Foreclosed real estate securing Government National Mortgage
     Association ("GNMA") loans of $129 million, $142 million, $167
     million, $79 million and $80 million at September 30, 2006, June
     30, 2006, March 31, 2006, December 31, 2005 and September 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
             206-500-4148 (Seattle)
             212-326-6019 (New York)
             alan.magleby@wamu.net

    SOURCE: Washington Mutual, Inc.