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WaMu Reports Significant Build-Up of Reserves Contributing to Second Quarter Net Loss of $3.3 Billion
Company Increases Capital Levels Company Expects to Reduce Expenses by $1 billion
SEATTLE, Jul 22, 2008 (BUSINESS WIRE) -- WaMu (NYSE:WM) today announced a second quarter 2008 net loss of $3.33 billion as it significantly increased its loan loss reserves by $3.74 billion to $8.46 billion. The quarter's loss compares with the first quarter net loss of $1.14 billion and net income of $830 million during the second quarter of 2007. The quarter's financial results reflect an elevated level of provisioning due in large part to changes in the company's provisioning assumptions in response to continued declines in housing prices nationwide. These changes had the effect of accelerating provisions into the quarter. The quarter's provision was $5.9 billion compared with $2.2 billion of net charge-offs. The company now expects the remaining cumulative losses in its residential mortgage portfolios to be toward the upper end of the range it disclosed in April, and continues to expect 2008 to be the peak year for provisioning.

The company's tangible equity to total tangible assets capital ratio increased during the second quarter to 7.79 percent from 6.40 percent in the first quarter, resulting in approximately $7 billion of capital in excess of its targeted 5.50 percent level. The increase reflects the effects of the $7.2 billion capital raise, the reduction of the company's balance sheet by $10 billion and the loss for the quarter. The company also maintained strong levels of liquidity during the quarter, with over $40 billion of readily available liquidity at quarter end.

"In the face of unprecedented housing and mortgage market conditions, we are continuing to execute on a comprehensive plan designed to ensure that we have strong capital and liquidity, an appropriately-sized expense base and a strong, profitable retail franchise," said WaMu Chief Executive Officer Kerry Killinger. "Our recent $7.2 billion capital raise, combined with the other proactive steps we have taken this quarter to strengthen our banking franchise and further expense reductions, continue to move us toward achieving these goals."

Killinger also said that the company now expects to realize annualized cost savings of approximately $1 billion which will contribute to improved pretax, pre-provision earnings. "We remain confident that we have sufficient capital to successfully manage our way through this challenging period," Killinger added.

The company reported a second quarter diluted loss per share of $6.58, which included a previously disclosed one-time earnings per share reduction in the amount of $3.24 related to the company's capital issuance in April. Excluding this one-time reduction, the company's second quarter loss per common share was $3.34. This non-cash reduction in earnings per share, which resulted in a reclassification within stockholders' equity, had no effect on the company's capital ratios or the net loss recorded in the second quarter.

SECOND QUARTER FINANCIAL SUMMARY AND HIGHLIGHTS
----------------------------------------------------------------------

Selected
 Financial
 Summary                           Three Months Ended
                  ----------------------------------------------------
($ in millions,
 except per share   Jun. 30,   Mar. 31,   Dec. 31, Sept. 30,  Jun. 30,
 data)                 2008       2008       2007      2007      2007
                  ---------- ---------- ---------- --------- ---------
Income Statement
Net interest
 income           $  2,296   $  2,175   $  2,047   $  2,014  $  2,034
Provision for
 loan losses         5,913      3,511      1,534        967       372
Noninterest
 income                561      1,569      1,365      1,379     1,758
Foreclosed asset
 expense               217        155        133         82        56
Goodwill
 impairment
 charge                  -          -      1,775          -         -
All other
 noninterest
 expense             2,186      1,997      2,258      2,109     2,082
Minority interest
 expense                75         75         65         53        42
                  ---------- ---------- ---------- --------- ---------
Income (loss)
 before income
 taxes              (5,534)    (1,994)    (2,353)       182     1,240
Income taxes        (2,206)      (856)      (486)        (4)      410
                  ---------- ---------- ---------- --------- ---------
Net income (loss) $ (3,328)  $ (1,138)  $ (1,867)  $    186  $    830

Diluted earnings
 per common share $  (6.58)  $  (1.40)  $  (2.19)  $   0.20  $   0.92
Less : effect of
 conversion
 feature             (3.24)         -          -          -         -
                  ---------- ---------- ---------- --------- ---------
Diluted earnings
 per common share
 excluding effect
 of conversion
 feature          $  (3.34)  $  (1.40)  $  (2.19)  $   0.20  $   0.92

Balance Sheet
Total assets, end
 of period        $309,731   $319,668   $327,913   $330,110  $312,219
Average total
 assets            314,882    319,928    325,276    320,475   316,004
Average interest-
 earning assets    285,503    285,265    287,988    283,263   279,836
Average total
 deposits          184,610    184,304    185,636    198,649   206,765

Profitability
 Ratios
Return on average
 common equity      (69.25)%   (23.27)%   (32.64)%     3.03%    13.74%
Net interest
 margin               3.22       3.05       2.86       2.86      2.91
Efficiency ratio     84.11      57.49     122.13      64.55     56.38
Nonperforming
 assets/total
 assets               3.62       2.87       2.17       1.65      1.29
Allowance for
 loan losses/
 nonperforming
 loans               87.26      60.25      41.99      41.27     47.63
Tangible
 equity/total
 tangible assets      7.79       6.40       6.67       5.60      6.07
----------------------------------------------------------------------

-- Capital ratios improve. The tangible equity to total tangible assets ratio at June 30 was 7.79 percent compared with 6.40 percent as of Mar. 31, reflecting the April capital raise of $7.2 billion and despite significant provisioning to cover credit costs. Also contributing to the improved capital ratios this quarter was a decrease in total assets of approximately $10 billion, which freed up approximately $550 million in capital. Additional asset reductions are expected as the company continues to prudently manage the size of its balance sheet.

-- Net interest margin up 17 basis points to 3.22 percent. The quarter's increase in net interest income to $2.30 billion was driven by the 17 basis point expansion in the net interest margin. The margin improved as decreases in rates paid on interest bearing liabilities outpaced the decline in asset yields, while generally lower cost retail deposits grew as a percentage of funding. This expansion occurred despite an increase in nonperforming loans from the first quarter.

-- Company builds reserves to $8.46 billion. During the second quarter, the company increased the provision for loan losses to $5.91 billion from $3.51 billion in the first quarter. The company expects remaining cumulative losses in its residential mortgage portfolios to be at the upper end of the range of losses it disclosed at the time of its capital raise in April, and for 2008 to be the peak year for provisioning. The increase in provision for loan losses reflected the further decline in house prices which increased expected loss severities, increased delinquencies, reduced availability of credit, and the weakening economy. Total net charge-offs in the loan portfolio rose to $2.17 billion from $1.37 billion in the prior quarter. Nonperforming assets grew to 3.62 percent of total assets at June 30 from 2.87 percent at the end of the first quarter. At the same time, early stage delinquencies for the subprime and home equity portfolios showed early signs of stabilization in the quarter. Approximately one third of the second quarter provision for loan losses related to significant changes in key assumptions the company used to estimate incurred losses in its loan portfolio in response to the increasingly adverse credit trends. Specifically, the company shortened the historical time period used to evaluate default frequencies for its prime mortgage portfolio from a three-year period to a one-year period to reflect the evolving risk profile of the loan portfolio and adjusted its severity assumptions for all single family mortgages to reflect the continuing decline in home prices. Year to date, the company has provided $9.42 billion for loan losses in comparison with net charge-offs of $3.54 billion, increasing the reserve to $8.46 billion at June 30. As a percentage of loans held in portfolio, the reserve stands at 3.53 percent, up from 1.05 percent at the end of 2007. In addition, the company's coverage ratio of the reserve to nonperforming loans was 87.26 percent, more than double the 41.99 percent at the end of last year.

-- Decline in noninterest income reflects further market stress and restructuring of home loans business. Despite the 9 percent quarter over quarter increase in depositor and other retail banking fees, noninterest income of $561 million in the second quarter was down from $1.6 billion in the prior quarter. During the second quarter, the company recognized other than temporary impairment losses of $407 million in the company's available-for-sale securities portfolio, compared with $67 million in the prior quarter. Net trading losses of $305 million were up from net losses of $216 million in the first quarter primarily due to a reduction in the value of retained interests from credit card securitizations reflecting market conditions. The decrease in revenue from the sales and servicing of home mortgage loans reflects lower volumes in the mortgage origination pipeline due to the company's exit from wholesale lending and closing of its home loan centers. Also impacting the quarter was a $171 million provision for repurchase reserves, up from a provision of $56 million in the first quarter. Mortgage servicing revenue was down $247 million primarily due to declines in the value of MSR risk management instruments that more than offset the increase in the MSR fair value.

-- Company expands expense initiatives targeting $1 billion in savings. Noninterest expense of $2.40 billion in the quarter included $207 million in restructuring and resizing costs related to Home Loans activities as well as other corporate initiatives and foreclosed asset expense of $217 million, up from $155 million in the first quarter. During the quarter, the company implemented a series of additional initiatives designed to significantly reduce expense levels going forward. These initiatives included the previously announced wholesale and home loans center closures and other savings across functions that primarily supported home loans activities that have been discontinued. These actions will result in total annualized cost savings of approximately $1 billion, while incurring restructuring and resizing costs of approximately $450 million, of which $207 million were recorded in the second quarter.

-- Net loss per share includes one-time adjustment. The company reported a second quarter diluted net loss per share of $6.58, which included a one-time earnings per share non-cash reduction in the amount of $3.24 per common share. The reduction was recorded as a result of the June conversion of the preferred stock issued in connection with the company's capital transaction in April. This non-cash adjustment, which had no effect on the company's capital ratios or the net loss recorded in the second quarter, reduced retained earnings by $3.29 billion, with a corresponding increase to capital surplus-common stock. Excluding this one-time reduction, the company's second quarter diluted net loss per common share was $3.34.

SECOND QUARTER SEGMENT RESULTS
Retail Banking Group
----------------------------------------------------------------------

Selected Segment
 Information                         Three Months Ended
                      ------------------------------------------------
($ in millions,
 except accounts and   Jun. 30,  Mar. 31,  Dec. 31, Sept. 30, Jun. 30,
 households)              2008      2008      2007      2007     2007
                      --------- --------- --------- --------- --------
Net interest income   $  1,210  $  1,203  $  1,262   $  1,306 $  1,291
Provision for loan
 losses                  3,823     2,300       663        318       91
Noninterest income         842       775       850        833      820
Inter-segment revenue        7         9         5          9       16
Noninterest expense      1,232     1,221     1,212      1,149    1,131
                      --------- --------- --------- --------- --------
Income (loss) before
 income taxes           (2,996)   (1,534)      242        681      905
Income taxes              (959)     (491)      (39)       225      340
                      --------- --------- --------- --------- --------
Net income (loss)     $ (2,037) $ (1,043) $    281   $    456 $    565

Average loans         $138,671  $142,720  $145,486   $147,357 $149,716
Average retail
 deposits              149,509   146,734   142,733    144,921  145,252
Net change in number
 of retail
checking accounts      254,957   256,069    74,493    310,360  406,243
Net change in retail
 households             94,000   154,000    37,000    161,000  228,000
----------------------------------------------------------------------

-- Revenue growth driven by increase in depositor fee income, expenses held steady. Net interest income was up slightly from the first quarter as the drop in the overall cost of deposits outpaced the decline in variable rate loan yields. Noninterest income, comprised primarily of depositor and other retail banking fees, was up 9 percent quarter over quarter. Depositor fees totaled $767 million in the second quarter, up 9 percent from the seasonally slow first quarter. The company continues to have strong checking account growth adding 254,957 net new accounts in the quarter.

-- Quarterly results adversely impacted by higher loan loss provisioning. The quarter's net loss reflected the increase in the provision for loan losses due in large part to changes in the company's provisioning assumptions in response to continued declines in housing prices nationwide.

-- Average retail deposits up 2 percent. Average retail deposits of $149.51 billion were up $2.78 billion during the quarter reflecting the growth in money market accounts. Retail deposit balances at the end of the quarter were down $3.40 billion to $148.25 billion reflecting the reduction in higher cost promotional certificates of deposit during the quarter. The average cost of retail deposits during the quarter was 2.23 percent, down from 2.65 percent in the prior quarter.

Card Services Group (managed basis)

Selected Segment
 Information                          Three Months Ended
                         ---------------------------------------------
                         Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30,
($ in millions)             2008     2008     2007      2007     2007
                         -------- -------- -------- --------- --------
Net interest income      $   769  $   765  $   694   $   674  $   649
Provision for loan
 losses                      911      626      591       611      523
Noninterest income           187      418      315       400      393
Inter-segment expense          5        5        -         -        -
Noninterest expense          297      260      338       364      306
                         -------- -------- -------- --------- --------
Income (loss) before
 income taxes               (257)     292       80        99      213
Income taxes                 (82)      93      (12)       33       80
                         -------- -------- -------- --------- --------
Net income (loss)        $  (175) $   199  $    92   $    66  $   133

Average managed
 receivables             $26,314  $26,889  $26,665   $25,718  $24,234
Period end managed
 receivables              26,430   26,378   27,239    26,227   24,987
30+ day managed
 delinquency rate           7.05%    6.89%    6.47%     5.73%    5.11%
Managed net credit
 losses                    10.84     9.32     6.90      6.37     6.49
----------------------------------------------------------------------

-- Revenue down primarily due to higher credit costs and valuation adjustments. Net interest income was flat with the prior quarter as lower funding costs were offset by a lower balance of average receivables and declines in interest rates charged on card receivables. Noninterest income was down from the prior quarter reflecting reduced value of retained interests due to market conditions. In addition, noninterest income during the first quarter included an $85 million benefit received from the company's share of VISA's IPO. Noninterest expense was flat with the prior quarter, excluding the $38 million partial recovery of VISA litigation expense recorded in that quarter.

-- Provision up but delinquencies stabilizing. The increase in the provision to $911 million from $626 million reflected higher managed net credit losses and an increase in reported receivables as maturing securitizations resulted in on-balance sheet funding of new originations. Managed net credit losses of 10.84 percent reflected the increase in contractual and bankruptcy losses in the face of a weaker economy. Reflecting the previous actions taken to reduce the company's loss exposure, the 30+ day managed delinquency rate of 7.05 percent was up slightly from the prior quarter.

-- Total managed receivables flat with prior quarter. Total managed receivables at quarter end remained level at $26.43 billion. During the quarter, Card Services opened 755,301 new credit card accounts, up from 666,407 in the prior quarter. Approximately 35 percent of the new accounts came through the retail channel as the company continued to leverage its retail network.

Commercial Group

Selected Segment
 Information                          Three Months Ended
                         ---------------------------------------------
                         Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30,
($ in millions)             2008     2008     2007      2007     2007
                         -------- -------- -------- --------- --------
Net interest income       $   203 $   196  $   200   $   200   $   208
Provision for loan
 losses                        17      29       19        12         2
Noninterest income              5      (8)     (10)      (34)       63
Noninterest expense            63      68       66        67        74
                         -------- -------- -------- --------- --------
Income before income
 taxes                        128      91      105        87       195
Income taxes                   41      29       11        28        73
                         -------- -------- -------- --------- --------
Net income                $    87 $    62  $    94   $    59   $   122

Loan volume               $ 3,768 $ 2,835  $ 4,800   $ 4,054   $ 4,348
Average loans              41,891  40,934   40,129    38,333    38,789
----------------------------------------------------------------------

-- Net income up $25 million to $87 million. Net interest income of $203 million was up modestly from the prior quarter due to loan growth and improved net interest margin. Noninterest income was up slightly from the first quarter as a result of lower trading asset write-downs and higher gain on sale driven by an increase in volume. The low level of noninterest expense continued to reflect ongoing expense efficiencies.

-- Provision down, strong credit trends continue. The provision for loan losses was down for the quarter with a corresponding decline in net charge-offs. Charge-offs during the quarter remained low at an annualized rate of only 2 basis points reflecting the portfolio's conservative underwriting, low loan-to-value ratios, and small balance lending.

-- Loan volume and balances up. Loan volume of $3.77 billion was up 33 percent from the prior quarter and average loans of $41.89 billion were up 2 percent as the company continued to invest in this business.

Home Loans Group

Selected Segment
 Information                          Three Months Ended
                         ---------------------------------------------
                         Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30,
($ in millions)             2008     2008     2007      2007     2007
                         -------- -------- -------- --------- --------
Net interest income      $   240  $   250  $   229   $   191  $   211
Provision for loan
 losses                    1,637      907      511       323      101
Noninterest income           (97)     319      329       183      389
Inter-segment expense          2        4        5         9       16
Noninterest expense(a)       484      499    2,319       554      547
                         -------- -------- -------- --------- --------
Income (loss) before
 income taxes             (1,980)    (841)  (2,277)     (512)     (64)
Income taxes                (635)    (269)    (312)     (169)     (24)
                         -------- -------- -------- --------- --------
Net (loss)               $(1,345) $  (572) $(1,965)  $  (343) $   (40)

Loan volume              $ 8,462  $13,774  $19,089   $26,434  $35,938
Average loans             54,880   55,672   52,278    43,737   43,312

(a) Includes $1.78 billion goodwill charge in fourth quarter 2007.
----------------------------------------------------------------------

-- Results reflect reduced mortgage market participation. Net interest income fell slightly from the prior quarter reflecting a higher level of nonaccruals and a decline in loan balances on lower production. Noninterest income was down from the first quarter due to the decline in gain on sale from lower loan commitment volume and the increase in the provision for repurchase reserves reflecting an increase in repurchase demands related to prime home mortgage loans. The repurchase reserve totaled $283 million at the end of the quarter, up from $178 million at Mar. 31. The quarterly gain on sale variance was also impacted by $68 million in additional gains in the first quarter from sales of loans locked prior to the adoption of new accounting pronouncements impacting gain on sale recognition. Noninterest income also reflected mortgage servicing revenue down $247 million, primarily due to declines in the value of MSR risk management instruments that more than offset the increase in MSR fair value.

-- Expense declines reflect consolidation of Home Loans business. Despite the increase in foreclosed asset expense to $149 million from $118 million, noninterest expense of $484 million in the second quarter was down 3 percent from the first quarter with the further consolidation of the home loans business. The number of employees was reduced to 7,338 at the end of the second quarter from 9,135 at the end of the first quarter.

-- Credit costs remain elevated. The increase in the provision to $1.64 billion from $907 million in the first quarter was driven by an acceleration in delinquencies and charge-offs, while subprime delinquencies showed signs of stabilization during the quarter. Total charge-offs rose to $807 million, up $341 million from the prior quarter.

-- Production volume reduced as a result of management's actions. Home loans segment volume of $8.46 billion was down 39 percent from first quarter levels reflecting the company's decision to exit wholesale lending and close all remaining home loan centers.

COMPANY UPDATES

-- On July 22, WaMu announced that the Human Resources Committee of the Board of Directors determined that, in light of the company's 2008 financial performance to date, including the impact of mortgage-related loan loss provisions and foreclosed asset expense, the company's Chief Executive Officer, President and Chief Operating Officer and Chief Financial Officer will not receive annual incentive payments under the company's 2008 Leadership Bonus Plan.

-- On July 15, WaMu's Board of Directors declared a cash dividend of $0.01 per share on the company's common stock. Dividends on the common stock are payable on Aug. 15, 2008 to shareholders of record as of Jul. 31, 2008. In addition to declaring a dividend on the company's common stock, the company will pay a dividend of $0.2528 per depository share of Series K Preferred Stock to be payable on Sept. 15, 2008 to holders of record on Sept. 1, 2008, a dividend of $19.8056 per share of Series R Preferred Stock to be payable on Sept. 15, 2008 to holders of record on Sept. 1, 2008.

-- On Jun. 27, WaMu announced that a search had been initiated to replace James Corcoran, President of the Retail Bank who left WaMu to pursue other career opportunities.

-- On Jun. 24, WaMu shareholders approved an amendment to increase the number of authorized common stock from 1,600,000,000 to 3,000,000,000, the conversion of the Series S and Series T Perpetual Contingent Convertible Non-Voting Preferred Stock into common stock and the ability of the warrants to be exercised to purchase common stock. On Jun. 30, the Series S and Series T preferred stock was converted into common stock.

-- On Jun. 4, WaMu announced that Michael S. Solender had been named the company's Executive Vice President and Chief Legal Officer. Solender reports to Kerry Killinger, WaMu's CEO, and is a member of the company's Executive Committee.

-- On Jun. 2, WaMu announced that effective Jul. 1, independent director Stephen E. Frank would assume the role of independent Board Chair while Kerry Killinger would continue to lead the company as Chief Executive Officer and serve as a director.

-- On Jun. 2, WaMu announced that under its new majority voting standard, in uncontested director elections, nominees must receive a majority of votes cast to be re-elected.

-- On Apr. 29, WaMu announced that it named John P. McMurray as the company's Chief Enterprise Risk Officer.

ABOUT WAMU

WaMu, through its subsidiaries, is one of the nation's leading consumer and small business banks. At Jun. 30, 2008, WaMu and its subsidiaries had assets of $309.73 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate approximately 2,300 consumer and small business banking stores throughout the nation. WaMu's financial reports and news releases are available at www.wamu.com/ir.

WEBCAST INFORMATION

A conference call to discuss the company's financial results will be held on Tuesday, Jul. 22, 2008, at 5:00 p.m. ET and will be hosted by Kerry Killinger, Chief Executive Officer, Tom Casey, Executive Vice President and Chief Financial Officer and John McMurray, Executive Vice president and Chief Enterprise Risk Officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-324-6919. Participants calling from outside the United States may dial 312-470-7289. 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 recording of the conference call will be available from approximately 7:00 p.m. ET on Tuesday, Jul. 22, 2008 through 11:59 p.m. on Friday, Aug. 1, 2008. The recorded message will be available at 888-568-0151. Callers from outside the United States may dial 203-369-3462.

FORWARD LOOKING STATEMENTS

This presentation 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 2007 Annual Report on Form 10-K, as amended, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 which include:

-- Economic conditions that negatively affect housing prices and the job market that have resulted, and may continue to result, in deterioration in credit quality of the company's loan portfolio.

-- Access to market-based liquidity sources that may be negatively impacted if market conditions persist or if further ratings downgrades occur and could lead to increased funding costs and reduced gain on sale.

-- The need to raise additional capital due to significant additional losses which could have a dilutive effect on existing shareholders and could affect the ability to pay dividends.

-- Changes in interest rates.

-- Features of certain of the company's loan products that may result in increased credit risk.

-- Estimates used by the company to determine the fair value of certain of our assets that may prove to be imprecise and result in significant changes in valuation.

-- Risks related to the company's credit card operations that could adversely affect the credit card portfolio and our ability to continue growing the credit card business.

-- Operational risk which may result in incurring financial and reputational losses.

-- Failure to comply with laws and regulations.

-- Changes in the regulation of financial services companies, housing government-sponsored enterprises, mortgage originators and servicers, and credit card lenders.

-- General business, economic and market conditions and continued deterioration in these conditions.

-- Damage to the company's professional reputation and business as a result of allegations and negative public opinion as well as pending and threatened litigation.

-- Significant competition from banking and nonbanking companies.

There are other factors not described in our 2007 Form 10-K, as amended, and Form 10-Q for the quarter ended March 31, 2008 which are beyond the company's ability to anticipate or control that could cause results to differ.

WM-1
                       Washington Mutual, Inc.
                    Selected Financial Information
             (dollars in millions, except per share data)
                             (unaudited)


                                    Quarter Ended
----------------------------------------------------------------------
                     June 30,  Mar. 31,  Dec. 31,  Sept. 30,  June 30,
                        2008      2008      2007      2007      2007
---------------------------------------------------------- -----------
PROFITABILITY
 Net income
  (loss)          $   (3,328) $ (1,138) $ (1,867) $    186  $    830
 Net interest
  income               2,296     2,175     2,047     2,014     2,034
 Noninterest
  income                 561     1,569     1,365     1,379     1,758
 Noninterest
  expense              2,403     2,152     4,166     2,191     2,138
 Diluted earnings
  per common
  share:
  Diluted
   earnings per
   common share   $    (6.58) $  (1.40) $  (2.19) $   0.20  $   0.92
  Less: Effect of
   conversion
   feature(1)          (3.24)        -         -         -         -
                  ----------- --------- --------- --------  --------
   Diluted
    earnings per
    common share
    excluding
    effect of
    conversion
    feature            (3.34)    (1.40)    (2.19)     0.20      0.92
 Diluted weighted
  average number
  of common
  shares
  outstanding (in
  thousands)       1,016,081   856,923   855,532   876,002   893,090
 Net interest
  margin on a
  taxable-
  equivalent
  basis(2)              3.22 %    3.05 %    2.86 %    2.86 %    2.91 %
 Dividends
  declared per
  common share    $     0.01  $   0.15  $   0.56  $   0.56  $   0.55
 Book value per
  common share
  (period end)(3)      13.35     21.74     24.55     27.18     27.27
Tangible common
 equity per
 common share
 (period end)(4)        9.01     13.26     15.89     16.43     16.59
 Return on
  average assets       (4.23)%   (1.42)%   (2.30)%    0.23 %    1.05 %
 Return on
  average common
  equity              (69.25)   (23.27)   (32.64)     3.03     13.74
 Efficiency
  ratio(5)             84.11     57.49    122.13     64.55     56.38

ASSET QUALITY
 Nonperforming
  assets(6) to
  total assets          3.62 %    2.87 %    2.17 %    1.65 %    1.29 %
 Allowance as a
  percentage of
  loans held in
  portfolio             3.53      1.94      1.05      0.80      0.73

CREDIT
 PERFORMANCE
 Provision for
  loan losses     $    5,913  $  3,511  $  1,534  $    967  $    372
 Net charge-offs       2,171     1,368       747       421       271

CAPITAL ADEQUACY
 Capital Ratios
  for WMI:
  Tangible equity
   to total
   tangible
   assets(7)            7.79 %    6.40 %    6.67 %    5.60 %    6.07 %
  Tier 1 capital
   to average
   total assets
   (leverage)(8)        7.80      6.56      6.84      5.86      6.09
  Total risk-
   based capital
   to total risk-
   weighted
   assets(8)           13.98     12.25     12.34     10.67     11.04
 Capital Ratios
  for WMB (well-
  capitalized
  minimum)(9):
  Tier 1 capital
   to adjusted
   total assets
   (leverage)
   (5.00%)              7.10      6.94      7.05      6.41      7.52
  Adjusted Tier 1
   capital to
   total risk-
   weighted
   assets (6.00%)       8.44      8.13      8.33      7.62      8.77
  Total risk-
   based capital
   to total risk-
   weighted
   assets
   (10.00%)            12.49     12.21     12.22     11.26     12.80

SUPPLEMENTAL DATA
 Average balance
  sheet:
  Total loans
   held in
   portfolio      $  241,737  $244,186  $241,690  $227,348  $216,004
  Total interest-
   earning assets    285,503   285,265   287,988   283,263   279,836
  Total assets       314,882   319,928   325,276   320,475   316,004
  Total deposits     184,610   184,304   185,636   198,649   206,765
  Total
   stockholders'
   equity             27,558    24,066    23,947    23,994    24,436
 Period-end
  balance sheet:
  Total loans
   held in
   portfolio, net    231,171   238,100   241,815   235,243   213,434
  Total assets       309,731   319,668   327,913   330,110   312,219
  Total deposits     181,923   188,049   181,926   194,280   201,380
  Total
   stockholders'
   equity             26,086    22,449    24,584    23,941    24,210
  Common shares
   outstanding at
   the end of
   period (in
   thousands)(10)  1,705,344   882,610   869,036   868,802   875,722
  Employees at
   end of period      43,198    45,883    49,403    49,748    49,989

                                  Six Months Ended
-------------------------------------------------------
                                   June 30,    June 30,
                                      2008       2007
-------------------------------------------------------
PROFITABILITY
 Net income (loss)              $   (4,466)  $  1,614
 Net interest
  income                             4,471      4,115
 Noninterest
  income                             2,129      3,299
 Noninterest
  expense                            4,555      4,244
 Diluted earnings
  per common
  share:
  Diluted earnings
   per common
   share                        $    (8.43)  $   1.78
  Less: Effect of
   conversion
   feature(1)                        (3.51)         -
                                ----------- ---------
   Diluted
    earnings per
    common share
    excluding
    effect of
    conversion
    feature                          (4.92)      1.78
 Diluted weighted
  average number
  of common shares
  outstanding (in
  thousands)                       936,502    896,304
 Net interest
  margin on a
  taxable-
  equivalent
  basis(2)                            3.14 %     2.85 %
 Dividends
  declared per
  common share                  $     0.16   $   1.09
 Book value per
  common share
  (period end)(3)                    13.35      27.27
Tangible common
 equity per common
 share (period
 end)(4)                              9.01      16.59
 Return on average
  assets                             (2.81)%     1.00 %
 Return on average
  common equity                     (45.67)     13.36
 Efficiency
  ratio(5)                           69.01      57.24

ASSET QUALITY
 Nonperforming
  assets(6) to
  total assets                        3.62 %     1.29 %
 Allowance as a
  percentage of
  loans held in
  portfolio                           3.53       0.73

CREDIT PERFORMANCE
 Provision for
  loan losses                   $    9,423   $    606
 Net charge-offs                     3,538        454

CAPITAL ADEQUACY
 Capital Ratios
  for WMI:
  Tangible equity
   to total
   tangible
   assets(7)                          7.79 %     6.07 %
  Tier 1 capital
   to average
   total assets
   (leverage)(8)                      7.80       6.09
  Total risk-based
   capital to
   total risk-
   weighted
   assets(8)                         13.98      11.04
 Capital Ratios
  for WMB (well-
  capitalized
  minimum)(9):
  Tier 1 capital
   to adjusted
   total assets
   (leverage)
   (5.00%)                            7.10       7.52
  Adjusted Tier 1
   capital to
   total risk-
   weighted assets
   (6.00%)                            8.44       8.77
  Total risk-based
   capital to
   total risk-
   weighted assets
   (10.00%)                          12.49      12.80

SUPPLEMENTAL DATA
 Average balance
  sheet:
  Total loans held
   in portfolio                 $  242,961   $219,292
  Total interest-
   earning assets                  285,384    287,724
  Total assets                     317,405    323,911
  Total deposits                   184,457    208,753
  Total
   stockholders'
   equity                           25,812     24,422
 Period-end
  balance sheet:
  Total loans held
   in portfolio,
   net                             231,171    213,434
  Total assets                     309,731    312,219
  Total deposits                   181,923    201,380
  Total
   stockholders'
   equity                           26,086     24,210
  Common shares
   outstanding at
   the end of
   period (in
   thousands)(10)                1,705,344    875,722
  Employees at end
   of period                        43,198     49,989

_______________________
 (1) This one-time earnings per share reduction represents a
      beneficial conversion feature that was recorded upon the June
      2008 conversion of the preferred shares issued in connection
      with the April 2008 capital transaction. This non-cash
      adjustment, which had no effect on the Company's capital ratios
      or the net loss recorded in the second quarter, was provided to
      facilitate the comparison of earnings per share to the prior
      reporting periods presented on this schedule.

 (2) Includes taxable-equivalent adjustments primarily related to tax-
      exempt income on U.S. states and political subdivisions
      securities and loans related to the Company's community lending
      and investment activities. The federal statutory tax rate was
      35% for the periods presented.

 (3) Excludes six million shares held in escrow.

 (4) Excludes goodwill and intangible assets (except MSR).

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

 (6) Excludes nonaccrual loans held for sale.

 (7) Excludes unrealized net gain/loss on available-for-sale
      securities and cash flow hedging instruments, goodwill and
      intangible assets (except MSR) and the impact from the adoption
      and application of FASB Statement No. 158, Employers' Accounting
      for Defined Benefit Pension and Other Postretirement Plans.
      Minority interests of $3.91 billion, $3.91 billion, $3.92
      billion, $2.94 billion and $2.94 billion at June 30, 2008, March
      31, 2008, December 31, 2007, September 30, 2007 and June 30,
      2007 are included in the numerator.

 (8) The capital ratios are estimated as if Washington Mutual, Inc.
      were a bank holding company subject to Federal Reserve Board
      capital requirements.

 (9) Capital ratios for Washington Mutual Bank ("WMB") at June 30,
      2008 are preliminary.

(10) Includes six million shares held in escrow.

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

                                      Quarter Ended
----------------------------------------------------------------------
                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                         2008      2008      2007      2007      2007
----------------------------------------------------------------------
Interest Income
 Loans held for
  sale             $       52  $     87  $    160  $    248  $    421
 Loans held in
  portfolio             3,604     3,954     4,156     3,992     3,786
 Available-for-
  sale securities         335       357       380       392       351
 Trading assets           117       116       101       108       108
 Other interest
  and dividend
  income                   94        77        79       116        82
----------------------------------------------------------------------
   Total interest
    income              4,202     4,591     4,876     4,856     4,748
Interest Expense
 Deposits               1,115     1,329     1,464     1,650     1,723
 Borrowings               791     1,087     1,365     1,192       991
----------------------------------------------------------------------
   Total interest
    expense             1,906     2,416     2,829     2,842     2,714
----------------------------------------------------------------------
     Net interest
      income            2,296     2,175     2,047     2,014     2,034
 Provision for
  loan losses           5,913     3,511     1,534       967       372
----------------------------------------------------------------------
     Net interest
      income
      (expense)
      after
      provision
      for loan
      losses           (3,617)   (1,336)      513     1,047     1,662
Noninterest Income
 Revenue (expense)
  from sales and
  servicing of
  home mortgage
  loans                  (109)      411       358       161       300
 Revenue from
  sales and
  servicing of
  consumer loans          159       248       375       418       403
 Depositor and
  other retail
  banking fees            767       704       769       740       720
 Credit card fees         177       181       214       209       183
 Securities fees
  and commissions          64        58        63        67        70
 Insurance income          32        30        29        29        29
 Loss on trading
  assets                 (305)     (216)     (267)     (153)     (145)
 Gain (loss) on
  other available-
  for-sale
  securities             (402)       18      (261)      (99)        7
 Gain (loss) on
  extinguishment
  of borrowings           100        13         -         1       (14)
 Other income              78       122        85         6       205
----------------------------------------------------------------------
   Total
    noninterest
    income                561     1,569     1,365     1,379     1,758
Noninterest
 Expense
 Compensation and
  benefits                939       914       877       910       977
 Occupancy and
  equipment               460       358       488       371       354
 Telecommunications
  and outsourced
  information
  services                123       130       134       135       132
 Depositor and
  other retail
  banking losses           61        63        72        71        58
 Advertising and
  promotion               103       105       108       125       113
 Professional fees         57        39        89        52        55
 Foreclosed asset
  expense                 217       155       133        82        56
 Goodwill
  impairment
  charge                    -         -     1,775         -         -
 Other expense            443       388       490       445       393
----------------------------------------------------------------------
   Total
    noninterest
    expense             2,403     2,152     4,166     2,191     2,138
 Minority interest
  expense                  75        75        65        53        42
----------------------------------------------------------------------
     Income (loss)
      before
      income taxes     (5,534)   (1,994)   (2,353)      182     1,240
     Income taxes      (2,206)     (856)     (486)       (4)      410
----------------------------------------------------------------------
Net Income (Loss)  $   (3,328) $ (1,138) $ (1,867) $    186  $    830
======================================================================
     Preferred
      dividends
      declared            (71)      (65)       (8)       (8)       (8)
     Beneficial
      conversion
      feature          (3,290)        -         -         -         -
----------------------------------------------------------------------
Net Income (Loss)
 Applicable to
 Common
 Stockholders      $   (6,689) $ (1,203) $ (1,875) $    178  $    822
======================================================================

Earnings Per
 Common Share:
   Basic           $    (6.58) $  (1.40) $  (2.19) $   0.21  $   0.95
   Diluted              (6.58)    (1.40)    (2.19)     0.20      0.92

Dividends declared
 per common share        0.01      0.15      0.56      0.56      0.55
Basic weighted
 average number of
 common shares
 outstanding (in
 thousands)         1,016,081   856,923   855,518   857,005   868,968
Diluted weighted
 average number of
 common shares
 outstanding (in
 thousands)         1,016,081   856,923   855,532   876,002   893,090

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

                                                    Six Months Ended
----------------------------------------------------------------------
                                                    June 30,  June 30,
                                                       2008      2007
----------------------------------------------------------------------
Interest Income
  Loans held for sale                              $    138  $    984
  Loans held in portfolio                             7,559     7,686
  Available-for-sale securities                         691       682
  Trading assets                                        233       221
  Other interest and dividend income                    171       183
----------------------------------------------------------------------
    Total interest income                             8,792     9,756
Interest Expense
  Deposits                                            2,443     3,495
  Borrowings                                          1,878     2,146
----------------------------------------------------------------------
    Total interest expense                            4,321     5,641
----------------------------------------------------------------------
      Net interest income                             4,471     4,115
  Provision for loan losses                           9,423       606
----------------------------------------------------------------------
      Net interest income (expense) after
       provision for loan losses                     (4,952)    3,509
Noninterest Income
  Revenue from sales and servicing of home
   mortgage loans                                       302       425
  Revenue from sales and servicing of consumer
   loans                                                407       846
  Depositor and other retail banking fees             1,470     1,385
  Credit card fees                                      358       355
  Securities fees and commissions                       122       131
  Insurance income                                       63        58
  Loss on trading assets                               (521)     (253)
  Gain (loss) on other available-for-sale
   securities                                          (384)       41
  Gain (loss) on extinguishment of borrowings           113        (7)
  Other income                                          199       318
----------------------------------------------------------------------
    Total noninterest income                          2,129     3,299
Noninterest Expense
  Compensation and benefits                           1,853     1,979
  Occupancy and equipment                               818       731
  Telecommunications and outsourced information
   services                                             253       261
  Depositor and other retail banking losses             124       119
  Advertising and promotion                             208       211
  Professional fees                                      96        93
  Foreclosed asset expense                              372        95
  Other expense                                         831       755
----------------------------------------------------------------------
    Total noninterest expense                         4,555     4,244
  Minority interest expense                             151        85
----------------------------------------------------------------------
      Income (loss) before income taxes              (7,529)    2,479
      Income taxes                                   (3,063)      865
----------------------------------------------------------------------
Net Income (Loss)                                  $ (4,466) $  1,614
======================================================================
    Preferred dividends declared                       (136)      (15)
    Beneficial conversion feature                    (3,290)        -
----------------------------------------------------------------------
Net Income (Loss) Applicable to Common
 Stockholders                                      $ (7,892) $  1,599
======================================================================

Earnings Per Common Share:
  Basic                                            $  (8.43) $   1.83
  Diluted                                             (8.43)     1.78

Dividends declared per common share                    0.16      1.09
Basic weighted average number of common shares
 outstanding (in thousands)                         936,502   871,876
Diluted weighted average number of common shares
 outstanding (in thousands)                         936,502   896,304

WM-4
                       Washington Mutual, Inc.
            Consolidated Statements of Financial Condition
                        (dollars in millions)
                             (unaudited)

                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                         2008      2008      2007      2007      2007
----------------------------------------------------------------------
Assets
 Cash and cash
  equivalents        $  7,235  $ 10,089  $  9,560  $ 11,370  $  4,167
 Federal funds sold
  and securities
  purchased under
  agreements to
  resell                2,750     2,527     1,877     4,042     3,267
 Trading assets         2,308     2,483     2,768     3,797     5,534
 Available-for-sale
  securities, total
  amortized cost of
  $25,756, $24,907,
  $27,789, $28,725
  and $28,934:
   Mortgage-backed
    securities         18,241    18,140    19,249    20,562    20,393
   Investment
    securities          6,134     5,466     8,291     7,844     7,947
----------------------------------------------------------------------
     Total
      available-for-
      sale
      securities       24,375    23,606    27,540    28,406    28,340
 Loans held for sale    1,877     4,941     5,403     7,586    19,327
 Loans held in
  portfolio           239,627   242,814   244,386   237,132   214,994
 Allowance for loan
  losses               (8,456)   (4,714)   (2,571)   (1,889)   (1,560)
----------------------------------------------------------------------
     Loans held in
      portfolio, net  231,171   238,100   241,815   235,243   213,434
 Investment in
  Federal Home Loan
  Banks                 3,498     3,514     3,351     2,808     1,596
 Mortgage servicing
  rights                6,175     5,726     6,278     6,794     7,231
 Goodwill               7,284     7,283     7,287     9,062     9,056
 Other assets          23,058    21,399    22,034    21,002    20,267
----------------------------------------------------------------------
     Total assets    $309,731  $319,668  $327,913  $330,110  $312,219
======================================================================
Liabilities
 Deposits:
   Noninterest-
    bearing deposits $ 31,112  $ 31,911  $ 30,389  $ 31,341  $ 33,557
   Interest-bearing
    deposits          150,811   156,138   151,537   162,939   167,823
----------------------------------------------------------------------
     Total deposits   181,923   188,049   181,926   194,280   201,380
 Federal funds
  purchased and
  commercial paper         75       250     2,003     2,482     3,390
 Securities sold
  under agreements
  to repurchase           214       215     4,148     4,732     9,357
 Advances from
  Federal Home Loan
  Banks                58,363    64,009    63,852    52,530    21,412
 Other borrowings      30,590    32,710    38,958    40,887    40,313
 Other liabilities      8,566     8,072     8,523     8,313     9,212
 Minority interests     3,914     3,914     3,919     2,945     2,945
----------------------------------------------------------------------
     Total
      liabilities     283,645   297,219   303,329   306,169   288,009
Stockholders' Equity
 Preferred stock        3,392     3,392     3,392       492       492
 Capital surplus -
  common stock         12,916     2,646     2,630     2,575     2,715
 Accumulated other
  comprehensive loss   (1,079)   (1,141)     (359)     (390)     (568)
 Retained earnings     10,857    17,552    18,921    21,264    21,571
----------------------------------------------------------------------
     Total
      stockholders'
      equity           26,086    22,449    24,584    23,941    24,210
----------------------------------------------------------------------
     Total
      liabilities
      and
      stockholders'
      equity         $309,731  $319,668  $327,913  $330,110  $312,219
======================================================================

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

                                        Quarter Ended
----------------------------------------------------------------------
                       June 30, Mar. 31,   Dec. 31, Sept. 30, June 30,
                          2008     2008       2007      2007     2007
----------------------------------------------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                $22,449  $24,584    $23,941   $24,210  $24,578
Net income (loss)       (3,328)  (1,138)    (1,867)      186      830
Cumulative effect from
 the adoption of new
 accounting
 pronouncements              -      (36)(1)      -         -        -
Other comprehensive
 income (loss), net of
 income taxes               62     (782)        31       177     (300)
Cash dividends
 declared on common
 stock                     (10)    (130)      (482)     (485)    (484)
Preferred stock
 activity:
  Preferred share
   conversion(2)        (3,290)       -          -         -        -
  Cash dividends
   declared                (71)     (65)        (8)       (8)      (8)
                       -------- --------   -------- --------- --------
    Total preferred
     stock activity     (3,361)     (65)        (8)       (8)      (8)
Cash dividends
 returned(3)                 4        -         15         -        -
Common stock activity:
  Capital surplus-
   common stock
   attributable to
   preferred share
   conversion(2)         3,290        -          -         -        -
  Common stock
   issued(4)             6,980       16         54        60       94
  Common stock
   repurchased and
   retired(5)                -        -          -      (199)    (500)
                       -------- --------   -------- --------- --------
    Total common stock
     activity           10,270       16         54      (139)    (406)
Preferred stock issued       -        -      2,900         -        -
----------------------------------------------------------------------
Balance, end of period $26,086  $22,449    $24,584   $23,941  $24,210
======================================================================

(1) As of January 1, 2008, the Company adopted FASB Statement No. 157,
     Fair Value Measurements ("Statement No. 157"), EITF Issue No. 06-
     4, Accounting for Deferred Compensation and Postretirement
     Benefit Aspects of Endorsement Split-Dollar Life Insurance
     Arrangements ("Issue No. 06-4") and EITF Issue No. 06-10,
     Accounting for Collateral Assignment Split-Dollar Life Insurance
     Arrangements ("Issue No. 06-10"). The cumulative effect, net of
     income taxes, from the adoption of Statement No. 157, Issue No.
     06-4 and Issue No. 06-10 was $1 million, $(35) million and $(2)
     million.

(2) The preferred share conversion adjustment represents a beneficial
     conversion feature that was recorded upon the June 2008
     conversion of the preferred shares issued in connection with the
     April 2008 capital transaction. This non-cash conversion
     adjustment, which did not affect the net loss recorded in the
     second quarter of 2008, reduced retained earnings and
     correspondingly increased capital surplus-common stock.

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

(4) Includes 647 million shares of common stock converted on June 30,
     2008 at $8.75 per share from 56,570 preferred shares issued in
     April 2008.

(5) The Company repurchased zero shares of its common stock during the
     three months ended June 30, 2008, March 31, 2008 and December 31,
     2007, and 7.2 million and 13.5 million shares of its common stock
     during the three months ended September 30, 2007 and June 30,
     2007. At June 30, 2008, the total remaining common stock
     repurchase authority was 47.5 million shares.

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


                                      Quarter Ended
---------------------------------------------------------------------
                     June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                        2008      2008      2007      2007      2007
---------------------------------------------------------------------
RETAIL BANKING
 GROUP
  Condensed income
   statement:
    Net interest
     income         $  1,210  $  1,203  $  1,262  $  1,306  $  1,291
    Provision for
     loan losses       3,823     2,300       663       318        91
    Noninterest
     income              842       775       850       833       820
    Inter-segment
     revenue               7         9         5         9        16
    Noninterest
     expense           1,232     1,221     1,212     1,149     1,131
---------------------------------------------------------------------
    Income (loss)
     before income
     taxes            (2,996)   (1,534)      242       681       905
    Income taxes        (959)     (491)      (39)      225       340
---------------------------------------------------------------------
      Net income
       (loss)       $ (2,037) $ (1,043) $    281  $    456  $    565
=====================================================================
  Performance and
   other data:
    Efficiency
     ratio             59.82%    61.48%    57.25%    53.48%    53.19%
    Average loans   $138,671  $142,720  $145,486  $147,357  $149,716
    Average assets   145,800   151,609   155,100   157,194   159,515
    Average
     deposits:
     Checking
      deposits:
     Noninterest
      bearing         24,753    23,425    22,748    22,860    23,107
     Interest
      bearing         22,557    24,306    26,328    28,406    30,282
---------------------------------------------------------------------
     Total checking
      deposits        47,310    47,731    49,076    51,266    53,389
     Savings and
      money market
      deposits        54,928    47,904    44,623    43,524    43,814
     Time deposits    47,271    51,099    49,034    50,131    48,049
---------------------------------------------------------------------
       Average
        deposits     149,509   146,734   142,733   144,921   145,252
    Loan volume          655     1,238     3,417     5,172     5,760
    Employees at
     end of period    27,857    28,736    29,147    28,636    28,523
CARD SERVICES GROUP
 Managed basis(1)
  Condensed income
   statement:
    Net interest
     income         $    769  $    765  $    694  $    674  $    649
    Provision for
     loan losses         911       626       591       611       523
    Noninterest
     income              187       418       315       400       393
    Inter-segment
     expense               5         5         -         -         -
    Noninterest
     expense             297       260       338       364       306
---------------------------------------------------------------------
    Income (loss)
     before income
     taxes              (257)      292        80        99       213
    Income taxes         (82)       93       (12)       33        80
---------------------------------------------------------------------
      Net income
       (loss)       $   (175) $    199  $     92  $     66  $    133
=====================================================================
  Performance and
   other data:
    Efficiency
     ratio             31.25%    22.04%    33.51%    33.91%    29.33%
    Average loans   $ 26,314  $ 26,889  $ 26,665  $ 25,718  $ 24,234
    Average assets    28,844    29,244    28,961    28,206    26,762
    Employees at
     end of period     2,940     2,881     2,860     2,878     2,827

 Securitization
  adjustments
    Condensed
     income
     statement:
    Net interest
     income         $   (506) $   (503) $   (454) $   (456) $   (459)
    Provision for
     loan losses        (530)     (470)     (335)     (288)     (294)
    Noninterest
     income              (24)       33       119       168       165
  Performance and
   other data:
    Average loans    (16,872)  (17,391)  (16,007)  (14,488)  (13,888)
    Average assets   (14,739)  (15,075)  (14,180)  (12,841)  (12,287)

 Adjusted basis
  Condensed income
   statement:
    Net interest
     income         $    263  $    262  $    240  $    218  $    190
    Provision for
     loan losses         381       156       256       323       229
    Noninterest
     income              163       451       434       568       558
    Inter-segment
     expense               5         5         -         -         -
    Noninterest
     expense             297       260       338       364       306
---------------------------------------------------------------------
    Income (loss)
     before income
     taxes              (257)      292        80        99       213
    Income taxes         (82)       93       (12)       33        80
---------------------------------------------------------------------
        Net income
         (loss)     $   (175) $    199  $     92  $     66  $    133
=====================================================================
  Performance and
   other data:
    Average loans   $  9,442  $  9,498  $ 10,658  $ 11,230  $ 10,346
    Average assets    14,105    14,169    14,781    15,365    14,475



                       Six Months Ended
------------------------------------------
                        June 30,  June 30,
                           2008      2007
------------------------------------------
RETAIL BANKING
 GROUP
  Condensed income
   statement:
    Net interest
     income            $  2,413  $  2,575
    Provision for
     loan losses          6,122       153
    Noninterest
     income               1,617     1,571
    Inter-segment
     revenue                 15        34
    Noninterest
     expense              2,453     2,201
------------------------------------------
    Income (loss)
     before income
     taxes               (4,530)    1,826
    Income taxes         (1,450)      685
------------------------------------------
      Net income
       (loss)          $ (3,080) $  1,141
==========================================
  Performance and
   other data:
    Efficiency
     ratio                60.63%    52.65%
    Average loans      $140,695  $152,445
    Average assets      148,704   162,264
    Average
     deposits:
     Checking
      deposits:
     Noninterest
      bearing            24,089    22,722
     Interest
      bearing            23,431    31,006
------------------------------------------
     Total checking
      deposits           47,520    53,728
     Savings and
      money market
      deposits           51,417    43,460
     Time deposits       49,185    47,456
------------------------------------------
       Average
        deposits        148,122   144,644
    Loan volume           1,893    10,338
    Employees at
     end of period       27,857    28,523
CARD SERVICES GROUP
 Managed basis(1)
  Condensed income
   statement:
    Net interest
     income            $  1,534  $  1,290
    Provision for
     loan losses          1,537       912
    Noninterest
     income                 604       867
    Inter-segment
     expense                  9         -
    Noninterest
     expense                557       635
------------------------------------------
    Income (loss)
     before income
     taxes                   35       610
    Income taxes             11       229
------------------------------------------
      Net income
       (loss)          $     24  $    381
==========================================
  Performance and
   other data:
    Efficiency
     ratio                26.16%    29.42%
    Average loans      $ 26,601  $ 23,921
    Average assets       29,044    26,403
    Employees at
     end of period        2,940     2,827

 Securitization
  adjustments
    Condensed
     income
     statement:
    Net interest
     income            $ (1,010) $   (874)
    Provision for
     loan losses         (1,000)     (577)
    Noninterest
     income                  10       297
  Performance and
   other data:
    Average loans       (17,131)  (13,201)
    Average assets      (14,907)  (11,627)

 Adjusted basis
  Condensed income
   statement:
    Net interest
     income            $    524  $    416
    Provision for
     loan losses            537       335
    Noninterest
     income                 614     1,164
    Inter-segment
     expense                  9         -
    Noninterest
     expense                557       635
------------------------------------------
    Income (loss)
     before income
     taxes                   35       610
    Income taxes             11       229
------------------------------------------
        Net income
         (loss)        $     24  $    381
==========================================
  Performance and
   other data:
    Average loans      $  9,470  $ 10,720
    Average assets       14,137    14,776



(This table is continued on "WM-7.")
__________________________
(1) 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. The managed basis presentation of the
     Card Services Group is derived by adjusting the GAAP financial
     information to add back securitized loan balances and the related
     interest, fee income and provision for credit losses. Such
     adjustments are eliminated as securitization adjustments when
     reporting GAAP results.

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


                                        Quarter Ended
----------------------------------------------------------------------
(This table is
 continued from "WM-
 6.")                   June 30, Mar. 31,  Dec. 31, Sept. 30, June 30,
                           2008     2008      2007      2007     2007
----------------------------------------------------------------------
COMMERCIAL GROUP
    Condensed income
     statement:
        Net interest
         income        $    203  $   196  $    200  $    200  $   208
        Provision for
         loan losses         17       29        19        12        2
        Noninterest
         income               5       (8)      (10)      (34)      63
        Noninterest
         expense             63       68        66        67       74
----------------------------------------------------------------------
        Income before
         income taxes       128       91       105        87      195
        Income taxes         41       29        11        28       73
----------------------------------------------------------------------
              Net
               income  $     87  $    62  $     94  $     59  $   122
======================================================================
    Performance and
     other data:
        Efficiency
         ratio           30.34%   36.09%    34.39%    40.26%   27.42%
        Average loans  $ 41,891  $40,934  $ 40,129  $ 38,333  $38,789
        Average assets   43,875   43,004    42,336    40,663   41,184
        Average
         deposits         6,632    7,474     9,762    13,816   15,294
        Loan volume       3,768    2,835     4,800     4,054    4,348
        Employees at
         end of period    1,342    1,358     1,502     1,524    1,508
HOME LOANS GROUP
    Condensed income
     statement:
       Net interest
        income         $    240  $   250  $    229  $    191  $   211
       Provision for
        loan losses       1,637      907       511       323      101
       Noninterest
        income              (97)     319       329       183      389
       Inter-segment
        expense               2        4         5         9       16
       Noninterest
        expense             484      499     2,319       554      547
----------------------------------------------------------------------
       Loss before
        income taxes     (1,980)    (841)   (2,277)     (512)     (64)
       Income taxes        (635)    (269)     (312)     (169)     (24)
----------------------------------------------------------------------
              Net loss $ (1,345) $  (572) $ (1,965) $   (343) $   (40)
======================================================================
    Performance and
     other data:
       Efficiency
        ratio           344.70%   88.26%   419.52%   151.63%   93.71%
       Average loans   $ 54,880  $55,672  $ 52,278  $ 43,737  $43,312
       Average assets    65,074   66,841    66,172    61,106   60,342
       Average
        deposits          5,202    5,469     6,714     7,780    8,372
       Loan volume        8,462   13,774    19,089    26,434   35,938
       Employees at
        end of period     7,338    9,135    11,812    12,668   13,150
CORPORATE
 SUPPORT/TREASURY AND
 OTHER
    Condensed income
     statement:
       Net interest
        income
        (expense)      $    254  $   132  $    (18) $    (39) $    (4)
       Provision for
        loan losses          55      119        85        (9)     (51)
       Noninterest
        income             (327)      86      (201)      (91)      60
       Noninterest
        expense             327      104       231        57       80
       Minority
        interest
        expense              75       75        65        53       42
----------------------------------------------------------------------
       Loss before
        income taxes       (530)     (80)     (600)     (231)     (15)
       Income taxes        (247)     (68)     (157)      (46)     (37)
----------------------------------------------------------------------
              Net
               income
               (loss)  $   (283) $   (12) $   (443) $   (185) $    22
======================================================================
    Performance and
     other data:
       Average loans   $  1,648  $ 1,556  $  1,482  $  1,420  $ 1,367
       Average assets    47,151   45,525    48,173    47,532   41,789
       Average
        deposits         23,267   24,627    26,427    32,132   37,847
       Loan volume           84      143       171       113       72
       Employees at
        end of period     3,721    3,773     4,082     4,042    3,981


                                                    Six Months Ended
-------------------------------------------------- -------------------
(This table is continued from "WM-6.")              June 30,  June 30,
                                                       2008      2007
-------------------------------------------------- -------------------
COMMERCIAL GROUP
    Condensed income statement:
        Net interest income                        $    400  $    420
        Provision for loan losses                        47        (7)
        Noninterest income                               (3)       78
        Noninterest expense                             131       148
-------------------------------------------------- -------------------
        Income before income taxes                      219       357
        Income taxes                                     70       134
-------------------------------------------------- -------------------
              Net income                           $    149  $    223
================================================== ===================
    Performance and other data:
        Efficiency ratio                             33.07%    29.89%
        Average loans                              $ 41,413  $ 38,715
        Average assets                               43,439    41,094
        Average deposits                              7,053    13,671
        Loan volume                                   6,603     8,018
        Employees at end of period                    1,342     1,508
HOME LOANS GROUP
    Condensed income statement:
       Net interest income                         $    490  $    455
       Provision for loan losses                      2,544       150
       Noninterest income                               221       550
       Inter-segment expense                              6        34
       Noninterest expense                              983     1,069
-------------------------------------------------- -------------------
       Loss before income taxes                      (2,822)     (248)
       Income taxes                                    (904)      (93)
-------------------------------------------------- -------------------
              Net loss                             $ (1,918) $   (155)
================================================== ===================
    Performance and other data:
       Efficiency ratio                             139.26%   110.07%
       Average loans                               $ 55,275  $ 48,255
       Average assets                                65,958    65,831
       Average deposits                               5,335     8,436
       Loan volume                                   22,236    69,718
       Employees at end of period                     7,338    13,150
CORPORATE SUPPORT/TREASURY AND OTHER
    Condensed income statement:
       Net interest income (expense)               $    386  $    (26)
       Provision for loan losses                        173       (25)
       Noninterest income                              (241)      154
       Noninterest expense                              431       191
       Minority interest expense                        151        85
-------------------------------------------------- -------------------
       Loss before income taxes                        (610)     (123)
       Income taxes                                    (316)     (106)
-------------------------------------------------- -------------------
              Net income (loss)                    $   (294) $    (17)
================================================== ===================
    Performance and other data:
       Average loans                               $  1,602  $  1,356
       Average assets                                46,338    41,335
       Average deposits                              23,947    42,002
       Loan volume                                      226       179
       Employees at end of period                     3,721     3,981


(This table is continued on "WM-8.")

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


                                       Quarter Ended
----------------------------------------------------------------------
(This table is
 continued from "WM-
 7.")                 June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                         2008      2008      2007      2007      2007
----------------------------------------------------------------------
RECONCILING
 ADJUSTMENTS
    Condensed income
     statement:
       Net interest
        income(1)    $    126  $    132  $    134  $    138  $    138
       Noninterest
        income
        (expense)(2)      (25)      (54)      (37)      (80)     (132)
----------------------------------------------------------------------
       Income before
        income taxes      101        78        97        58         6
       Income
        taxes(3)         (324)     (150)       23       (75)      (22)
----------------------------------------------------------------------
            Net
             income  $    425  $    228  $     74  $    133  $     28
======================================================================
    Performance and
     other data:
       Average
        loans(4)     $ (1,123) $ (1,220) $ (1,286) $ (1,385) $ (1,301)
       Average
        assets(4)      (1,123)   (1,220)   (1,286)   (1,385)   (1,301)

TOTAL CONSOLIDATED
    Condensed income
     statement:
       Net interest
        income       $  2,296  $  2,175  $  2,047  $  2,014  $  2,034
       Provision for
        loan losses     5,913     3,511     1,534       967       372
       Noninterest
        income            561     1,569     1,365     1,379     1,758
       Noninterest
        expense         2,403     2,152     4,166     2,191     2,138
       Minority
        interest
        expense            75        75        65        53        42
----------------------------------------------------------------------
       Income (loss)
        before
        income taxes   (5,534)   (1,994)   (2,353)      182     1,240
       Income taxes    (2,206)     (856)     (486)       (4)      410
----------------------------------------------------------------------
            Net
             income
             (loss)  $ (3,328) $ (1,138) $ (1,867) $    186  $    830
======================================================================
    Performance and
     other data:
       Efficiency
        ratio          84.11%    57.49%   122.13%    64.55%    56.38%
       Average loans $245,409  $249,160  $248,747  $240,692  $242,229
       Average
        assets        314,882   319,928   325,276   320,475   316,004
       Average
        deposits      184,610   184,304   185,636   198,649   206,765
       Loan volume     12,969    17,990    27,477    35,773    46,118
       Employees at
        end of
        period         43,198    45,883    49,403    49,748    49,989

                                                    Six Months Ended
-------------------------------------------------- -------------------
(This table is continued from "WM-7.")              June 30,  June 30,
                                                       2008      2007
-------------------------------------------------- -------------------
RECONCILING ADJUSTMENTS
    Condensed income statement:
       Net interest income(1)                      $    258  $    275
       Noninterest income (expense)(2)                  (79)     (218)
-------------------------------------------------- -------------------
       Income before income taxes                       179        57
       Income taxes(3)                                 (474)       16
-------------------------------------------------- -------------------
            Net income                             $    653  $     41
================================================== ===================
    Performance and other data:
       Average loans(4)                            $ (1,171) $ (1,389)
       Average assets(4)                             (1,171)   (1,389)

TOTAL CONSOLIDATED
    Condensed income statement:
       Net interest income                         $  4,471  $  4,115
       Provision for loan losses                      9,423       606
       Noninterest income                             2,129     3,299
       Noninterest expense                            4,555     4,244
       Minority interest expense                        151        85
-------------------------------------------------- -------------------
       Income (loss) before income taxes             (7,529)    2,479
       Income taxes                                  (3,063)      865
-------------------------------------------------- -------------------
            Net income (loss)                      $ (4,466) $  1,614
================================================== ===================
    Performance and other data:
       Efficiency ratio                              69.01%    57.24%
       Average loans                               $247,284  $250,102
       Average assets                               317,405   323,911
       Average deposits                             184,457   208,753
       Loan volume                                   30,958    88,253
       Employees at end of period                    43,198    49,989

__________________________
(1) Represents the difference between mortgage 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, certain mortgage 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.

(2) Represents the difference between gain from mortgage loans
     recorded by the Home Loans Group and gain from mortgage loans
     recognized in the Company's Consolidated Statements of Income.

(3) Represents the tax effect of reconciling adjustments.

(4) Represents the inter-segment offset for inter-segment loan
     premiums that the Retail Banking Group recognized upon transfer
     of portfolio loans from the Home Loans Group.

WM-9
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                                   Quarter Ended
----------------------------------------------------------------------
                                                  June 30, 2008
                                             -------------------------
                                                             Interest
                                                             Income/
                                             Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets (Taxable-Equivalent Basis(1))
Interest-earning assets(2):
   Federal funds sold and securities
    purchased under agreements to resell     $  2,161  2.15%   $   11
   Trading assets                               2,404 19.50       117
   Available-for-sale securities(3):
       Mortgage-backed securities              19,190  5.67       271
       Investment securities                    5,287  5.06        67
   Loans held for sale                          3,672  5.62        52
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(4)(5)                     107,299  5.83     1,563
         Home equity loans and lines of
          credit(5)                            60,964  5.12       777
         Subprime mortgage channel(6)          16,933  6.05       256
         Home construction(7)                   1,973  7.41        37
         Multi-family                          32,786  6.13       502
         Other real estate                     10,205  6.26       159
-----------------------------------------------------        ---------
           Total loans secured by real
            estate                            230,160  5.73     3,294
      Consumer:
         Credit card                            9,443 11.56       271
         Other                                    180 16.85         8
      Commercial                                1,954  6.76        33
-----------------------------------------------------        ---------
           Total loans held in portfolio      241,737  5.98     3,606
  Other                                        11,052  3.01        83
-----------------------------------------------------        ---------
           Total interest-earning assets      285,503  5.90     4,207
Noninterest-earning assets:
   Mortgage servicing rights                    6,115
   Goodwill                                     7,283
   Other assets                                15,981
-----------------------------------------------------
           Total assets                      $314,882
=====================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits     $ 22,619  1.39        78
      Savings and money market deposits        62,078  2.17       335
      Time deposits                            69,161  4.08       702
-----------------------------------------------------        ---------
           Total interest-bearing deposits    153,858  2.91     1,115
   Federal funds purchased and commercial
    paper                                          79  3.05         1
   Securities sold under agreements to
    repurchase                                    406  2.20         2
   Advances from Federal Home Loan Banks       60,402  3.36       505
   Other                                       30,839  3.69       283
-----------------------------------------------------        ---------
           Total interest-bearing
            liabilities                       245,584  3.12     1,906
                                                             ---------
Noninterest-bearing sources:
   Noninterest-bearing deposits                30,752
   Other liabilities                            7,075
   Minority interests                           3,913
   Stockholders' equity                        27,558
-----------------------------------------------------
           Total liabilities and
            stockholders' equity             $314,882
=====================================================
   Net interest spread and net interest
    income on a taxable-equivalent basis               2.78    $2,301
                                                             =========
   Impact of noninterest-bearing sources               0.44
   Net interest margin on a taxable-
    equivalent basis                                   3.22


                                                  Quarter Ended
----------------------------------------------------------------------
                                                  Mar. 31, 2008
                                             -------------------------
                                                             Interest
                                                             Income/
                                             Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets (Taxable-Equivalent Basis(1))
Interest-earning assets(2):
   Federal funds sold and securities
    purchased under agreements to resell     $  2,118  3.48%   $   18
   Trading assets                               2,726 17.10       116
   Available-for-sale securities(3):
       Mortgage-backed securities              18,945  5.80       275
       Investment securities                    6,316  5.39        85
   Loans held for sale                          4,974  6.98        87
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(4)(5)                     109,773  6.27     1,720
         Home equity loans and lines of
          credit(5)                            61,196  6.28       956
         Subprime mortgage channel(6)          18,106  6.33       287
         Home construction(7)                   2,142  7.65        41
         Multi-family                          31,962  6.35       507
         Other real estate                      9,797  6.49       158
-------------------------------------------  --------        ---------
           Total loans secured by real
            estate                            232,976  6.31     3,669
      Consumer:
         Credit card                            9,024 10.75       241
         Other                                    195 17.47         8
      Commercial                                1,991  7.36        37
-------------------------------------------  --------        ---------
           Total loans held in portfolio      244,186  6.49     3,955
  Other                                         6,000  3.94        59
-------------------------------------------  --------        ---------
           Total interest-earning assets      285,265  6.45     4,595
Noninterest-earning assets:
   Mortgage servicing rights                    5,882
   Goodwill                                     7,286
   Other assets                                21,495
-------------------------------------------  --------
           Total assets                      $319,928
===========================================  ========
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits     $ 24,384  1.75       107
      Savings and money market deposits        55,951  2.73       379
      Time deposits                            74,225  4.57       843
-------------------------------------------  --------        ---------
           Total interest-bearing deposits    154,560  3.46     1,329
   Federal funds purchased and commercial
    paper                                       1,009  3.62         9
   Securities sold under agreements to
    repurchase                                    885  3.78         8
   Advances from Federal Home Loan Banks       62,799  4.29       670
   Other                                       34,048  4.71       400
-------------------------------------------  --------        ---------
           Total interest-bearing
            liabilities                       253,301  3.83     2,416
                                                             ---------
Noninterest-bearing sources:
   Noninterest-bearing deposits                29,744
   Other liabilities                            8,902
   Minority interests                           3,915
   Stockholders' equity                        24,066
-------------------------------------------  --------
           Total liabilities and
            stockholders' equity             $319,928
===========================================  ========
   Net interest spread and net interest
    income on a taxable-equivalent basis               2.62    $2,179
                                                             =========
   Impact of noninterest-bearing sources               0.43
   Net interest margin on a taxable-
    equivalent basis                                   3.05


                                                  Quarter Ended
----------------------------------------------------------------------
                                                   June 30, 2007
                                              ------------------------
                                                              Interest
                                                              Income/
                                              Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets (Taxable-Equivalent Basis(1))
Interest-earning assets(2):
   Federal funds sold and securities
    purchased under agreements to resell      $  3,964  5.39%   $   53
   Trading assets                                4,995  8.67       108
   Available-for-sale securities(3):
       Mortgage-backed securities               19,177  5.39       259
       Investment securities                     7,382  5.15        95
   Loans held for sale                          26,225  6.43       421
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(4)(5)                       90,818  6.44     1,462
         Home equity loans and lines of
          credit(5)                             54,431  7.59     1,031
         Subprime mortgage channel(6)           20,152  6.80       343
         Home construction(7)                    2,043  6.72        34
         Multi-family                           29,419  6.65       488
         Other real estate                       6,843  7.03       120
--------------------------------------------  --------        --------
           Total loans secured by real
            estate                             203,706  6.84     3,478
      Consumer:
         Credit card                            10,101 10.44       263
         Other                                     254 12.44         8
      Commercial                                 1,943  7.73        38
--------------------------------------------  --------        --------
           Total loans held in portfolio       216,004  7.02     3,787
  Other                                          2,089  5.47        29
--------------------------------------------  --------        --------
           Total interest-earning assets       279,836  6.80     4,752
Noninterest-earning assets:
   Mortgage servicing rights                     6,782
   Goodwill                                      9,054
   Other assets                                 20,332
--------------------------------------------  --------
           Total assets                       $316,004
============================================  ========
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits      $ 30,373  2.51       190
      Savings and money market deposits         58,969  3.33       490
      Time deposits                             84,330  4.96     1,043
--------------------------------------------  --------        --------
           Total interest-bearing deposits     173,672  3.98     1,723
   Federal funds purchased and commercial
    paper                                        2,169  5.36        29
   Securities sold under agreements to
    repurchase                                   8,416  5.35       112
   Advances from Federal Home Loan Banks        22,063  5.36       295
   Other                                        39,886  5.57       555
--------------------------------------------  --------        --------
           Total interest-bearing
            liabilities                        246,206  4.42     2,714
                                                              --------
Noninterest-bearing sources:
   Noninterest-bearing deposits                 33,093
   Other liabilities                             9,610
   Minority interests                            2,659
   Stockholders' equity                         24,436
--------------------------------------------  --------
           Total liabilities and
            stockholders' equity              $316,004
============================================  ========
   Net interest spread and net interest
    income on a taxable-equivalent basis                2.38    $2,038
                                                              ========
   Impact of noninterest-bearing sources                0.53
   Net interest margin on a taxable-
    equivalent basis                                    2.91

__________________________
(1) Includes taxable-equivalent adjustments primarily related to tax-
     exempt income on U.S. states and political subdivisions
     securities and loans related to the Company's community lending
     and investment activities. The federal statutory tax rate was 35%
     for the periods presented.

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

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

(4) Capitalized interest recognized in earnings that resulted from
     negative amortization within the Option ARM portfolio totaled
     $255 million, $336 million and $344 million for the three months
     ended June 30, 2008, March 31, 2008 and June 30, 2007.

(5) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

(6) Represents mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name and held in the investment portfolio.

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

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


                                                 Six Months Ended
----------------------------------------------------------------------
                                                  June 30, 2008
                                             -------------------------
                                                             Interest
                                                             Income/
                                             Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets (Taxable-Equivalent Basis(1))
Interest-earning assets(2):
   Federal funds sold and securities
    purchased under agreements to resell     $  2,139  2.81%   $   30
   Trading assets                               2,565 18.22       233
   Available-for-sale securities(3):
      Mortgage-backed securities               19,068  5.74       546
      Investment securities                     5,802  5.24       152
   Loans held for sale                          4,323  6.40       138
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(4)(5)                     108,536  6.05     3,283
         Home equity loans and lines of
          credit(5)                            61,080  5.70     1,733
         Subprime mortgage channel(6)          17,519  6.19       543
         Home construction(7)                   2,058  7.54        78
         Multi-family                          32,374  6.23     1,009
         Other real estate                     10,001  6.37       317
-----------------------------------------------------        ---------
           Total loans secured by real
            estate                            231,568  6.02     6,963
      Consumer:
         Credit card                            9,233 11.16       513
         Other                                    188 17.17        16
      Commercial                                1,972  7.06        69
-----------------------------------------------------        ---------
           Total loans held in portfolio      242,961  6.23     7,561
  Other                                         8,526  3.34       141
-----------------------------------------------------        ---------
           Total interest-earning assets      285,384  6.18     8,801
Noninterest-earning assets:
   Mortgage servicing rights                    5,998
   Goodwill                                     7,285
   Other assets                                18,738
-----------------------------------------------------
           Total assets                      $317,405
=====================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits     $ 23,502  1.58       184
      Savings and money market deposits        59,014  2.43       714
      Time deposits                            71,693  4.33     1,545
-----------------------------------------------------        ---------
           Total interest-bearing deposits    154,209  3.19     2,443
   Federal funds purchased and commercial
    paper                                         544  3.58        10
   Securities sold under agreements to
    repurchase                                    646  3.28        10
   Advances from Federal Home Loan Banks       61,600  3.83     1,175
   Other                                       32,443  4.23       683
-----------------------------------------------------        ---------
           Total interest-bearing
            liabilities                       249,442  3.48     4,321
                                                             ---------
Noninterest-bearing sources:
   Noninterest-bearing deposits                30,248
   Other liabilities                            7,989
   Minority interests                           3,914
   Stockholders' equity                        25,812
-----------------------------------------------------
           Total liabilities and
            stockholders' equity             $317,405
=====================================================
   Net interest spread and net interest
    income on a taxable-equivalent basis               2.70    $4,480
                                                             =========
   Impact of noninterest-bearing sources               0.44
   Net interest margin on a taxable-
    equivalent basis                                   3.14


                                                 Six Months Ended
----------------------------------------------------------------------
                                                   June 30, 2007
                                              ------------------------
                                                              Interest
                                                              Income/
                                              Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets (Taxable-Equivalent Basis(1))
Interest-earning assets(2):
   Federal funds sold and securities
    purchased under agreements to resell      $  3,947  5.39%   $  105
   Trading assets                                5,293  8.37       221
   Available-for-sale securities(3):
      Mortgage-backed securities                18,821  5.44       511
      Investment securities                      6,785  5.18       176
   Loans held for sale                          30,810  6.40       984
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(4)(5)                       94,074  6.45     3,033
         Home equity loans and lines of
          credit(5)                             53,726  7.57     2,020
         Subprime mortgage channel(6)           20,381  6.74       686
         Home construction(7)                    2,052  6.63        68
         Multi-family                           29,621  6.61       979
         Other real estate                       6,803  7.03       238
--------------------------------------------  --------        --------
           Total loans secured by real
            estate                             206,657  6.81     7,024
      Consumer:
         Credit card                            10,500 11.03       574
         Other                                     261 12.70        17
      Commercial                                 1,874  7.84        73
--------------------------------------------  --------        --------
           Total loans held in portfolio       219,292  7.03     7,688
  Other                                          2,776  5.65        78
--------------------------------------------  --------        --------
           Total interest-earning assets       287,724  6.80     9,763
Noninterest-earning assets:
   Mortgage servicing rights                     6,545
   Goodwill                                      9,054
   Other assets                                 20,588
--------------------------------------------  --------
           Total assets                       $323,911
============================================  ========
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits      $ 31,093  2.57       397
      Savings and money market deposits         56,927  3.31       933
      Time deposits                             87,960  4.96     2,165
--------------------------------------------  --------        --------
           Total interest-bearing deposits     175,980  4.00     3,495
   Federal funds purchased and commercial
    paper                                        3,003  5.44        81
   Securities sold under agreements to
    repurchase                                  10,247  5.43       276
   Advances from Federal Home Loan Banks        29,019  5.37       773
   Other                                        36,366  5.62     1,016
--------------------------------------------  --------        --------
           Total interest-bearing
            liabilities                        254,615  4.46     5,641
                                                              --------
Noninterest-bearing sources:
   Noninterest-bearing deposits                 32,773
   Other liabilities                             9,547
   Minority interests                            2,554
   Stockholders' equity                         24,422
--------------------------------------------  --------
           Total liabilities and
            stockholders' equity              $323,911
============================================  ========
   Net interest spread and net interest
    income on a taxable-equivalent basis                2.34    $4,122
                                                              ========
   Impact of noninterest-bearing sources                0.51
   Net interest margin on a taxable-
    equivalent basis                                    2.85

__________________________
(1) Includes taxable-equivalent adjustments primarily related to tax-
     exempt income on U.S. states and political subdivisions
     securities and loans related to the Company's community lending
     and investment activities. The federal statutory tax rate was 35%
     for the periods presented.

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

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

(4) Capitalized interest recognized in earnings that resulted from
     negative amortization within the Option ARM portfolio totaled
     $591 million and $706 million for the six months ended June 30,
     2008 and June 30, 2007.

(5) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

(6) Represents mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name and held in the investment portfolio.

(7) 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-11
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                       Change from
                                     Mar. 31, 2008  June 30,  Mar. 31,
                                  to June 30, 2008     2008      2008
----------------------------------------------------------------------
Deposits
   Retail deposits:
      Checking deposits:
         Noninterest bearing              $   304  $ 25,435  $ 25,131
         Interest bearing                  (1,916)   21,715    23,631
----------------------------------------------------------------------
            Total checking
             deposits                      (1,612)   47,150    48,762
      Savings and money market
       deposits                             6,699    58,016    51,317
      Time deposits(1)                     (8,488)   43,086    51,574
----------------------------------------------------------------------
            Total retail deposits          (3,401)  148,252   151,653
      Commercial business and
       other deposits                      (1,513)    8,892    10,405
      Brokered deposits:
         Consumer                           1,509    19,248    17,739
         Institutional                     (1,611)      100     1,711
      Custodial and escrow
       deposits(2)                         (1,110)    5,431     6,541
----------------------------------------------------------------------
            Total deposits                $(6,126) $181,923  $188,049
======================================================================



                                          Dec. 31, Sept. 30,  June 30,
                                             2007      2007      2007
----------------------------------------------------------------------
Deposits
   Retail deposits:
      Checking deposits:
         Noninterest bearing             $ 23,476  $ 23,721  $ 24,142
         Interest bearing                  25,713    27,277    29,592
----------------------------------------------------------------------
            Total checking deposits        49,189    50,998    53,734
      Savings and money market deposits    44,987    43,360    43,617
      Time deposits(1)                     49,410    50,740    48,140
----------------------------------------------------------------------
            Total retail deposits         143,586   145,098   145,491
      Commercial business and other
       deposits                            11,267    16,536    19,186
      Brokered deposits:
         Consumer                          18,089    17,484    17,153
         Institutional                      2,515     8,107    11,025
      Custodial and escrow deposits(2)      6,469     7,055     8,525
----------------------------------------------------------------------
            Total deposits               $181,926  $194,280  $201,380
======================================================================


(1) Weighted average remaining maturity of time deposits was 6 months
     at June 30, 2008 and March 31, 2008, 7 months at December 31,
     2007 and September 30, 2007 and 8 months at June 30, 2007.

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


                                                 June 30,     Mar. 31,
                                                    2008         2008
----------------------------------------------------------------------
Retail Deposit Accounts (number of
 accounts)
     Noninterest-bearing checking             11,577,907   11,271,406
     Interest-bearing checking                 1,167,062    1,218,606
     Savings and money market                  7,474,547    7,293,256
----------------------------------------------------------------------
            Total transaction accounts,
             end of period(1)                 20,219,516   19,783,268
======================================================================

     Net change in noninterest-bearing
      checking accounts                          306,501      311,136
     Net change in checking accounts             254,957      256,069


                                    Dec. 31,    Sept. 30,     June 30,
                                       2007         2007         2007
----------------------------------------------------------------------
Retail Deposit Accounts (number
 of accounts)
     Noninterest-bearing
      checking                   10,960,270   10,824,548   10,449,887
     Interest-bearing checking    1,273,673    1,334,902    1,399,203
     Savings and money market     7,118,349    7,087,311    6,936,870
----------------------------------------------------------------------
            Total transaction
             accounts, end of
             period(1)           19,352,292   19,246,761   18,785,960
======================================================================

     Net change in noninterest-
      bearing checking accounts     135,722      374,661      466,574
     Net change in checking
      accounts                       74,493      310,360      406,243

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




                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                            2008     2008     2007      2007     2007
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
 period                    2,261    2,257    2,212     2,235    2,228
     Stores opened
      during the
      quarter                 14        9       50        10       11
     Stores closed
      during the
      quarter                (36)      (5)      (5)      (33)      (4)
----------------------------------------------------------------------
Stores, end of period      2,239    2,261    2,257     2,212    2,235
======================================================================

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

                                         Quarter Ended
----------------------------------------------------------------------
                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                            2008     2008     2007      2007     2007
----------------------------------------------------------------------
Loan Volume
   Home loans:
    Short-term
     adjustable-rate
     loans(1):
      Option ARMs        $     11 $    231 $  3,945 $   6,174 $  7,888
      Other ARMs               14       19       10       111       22
----------------------------------------------------------------------
         Total short-
          term
          adjustable-
          rate loans           25      250    3,955     6,285    7,910
    Medium-term
     adjustable-rate
     loans(2)               2,338    3,810    5,972     9,868   14,953
    Fixed-rate loans        6,131    9,427    7,382     6,176    8,172
----------------------------------------------------------------------
         Total home loan
          volume            8,494   13,487   17,309    22,329   31,035
   Home equity loans and
    lines of credit           541    1,297    4,619     8,544    9,988
   Home construction(3)         8      128      378       483      426
   Multi-family             2,686    2,250    3,412     2,856    3,067
   Other real estate        1,106      728    1,487     1,285    1,246
----------------------------------------------------------------------
         Total loans
          secured by
          real estate      12,835   17,890   27,205    35,497   45,762
   Commercial                 134      100      272       276      356
----------------------------------------------------------------------
         Total loan
          volume         $ 12,969 $ 17,990 $ 27,477 $  35,773 $ 46,118
======================================================================
Loan Volume by Channel
   Retail                $  9,081 $ 10,585 $ 17,341 $  21,223 $ 24,707
   Wholesale                3,732    7,091    9,536    13,387   17,020
   Purchased                  156      314      600     1,163    4,391
----------------------------------------------------------------------
         Total loan
          volume by
          channel        $ 12,969 $ 17,990 $ 27,477 $  35,773 $ 46,118
======================================================================
Refinancing Activity(4)
   Home loan refinancing $  6,665 $ 10,779 $ 12,297 $  14,722 $ 22,637
   Home equity loans and
    lines of credit             8       22       46       143      157
   Home construction
    loans                       -        1       30        30       20
   Multi-family and
    other real estate       1,301    1,033    1,436     1,225    1,378
----------------------------------------------------------------------
         Total
          refinancing    $  7,974 $ 11,835 $ 13,809 $  16,120 $ 24,192
======================================================================

(1) Short-term adjustable-rate loans reprice within one year.

(2) Medium-term adjustable-rate loans reprice after one year.

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

(4) 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)

                                                     Six Months Ended
----------------------------------------------------------------------
                                                     June 30, June 30,
                                                        2008     2007
----------------------------------------------------------------------
Loan Volume
 Home loans:
    Short-term adjustable-rate loans(1):
     Option ARMs                                      $   241  $15,666
     Other ARMs                                            34       58
----------------------------------------------------------------------
      Total short-term adjustable-rate loans              275   15,724
 Medium-term adjustable-rate loans(2)                   6,148   28,519
 Fixed-rate loans                                      15,557   16,996
----------------------------------------------------------------------
      Total home loan volume                           21,980   61,239
 Home equity loans and lines of credit                  1,839   17,590
 Home construction(3)                                     136      724
 Multi-family                                           4,936    5,729
 Other real estate                                      1,833    2,326
----------------------------------------------------------------------
      Total loans secured by real estate               30,724   87,608
 Commercial                                               234      645
----------------------------------------------------------------------
      Total loan volume                               $30,958  $88,253
======================================================================
Loan Volume by Channel
 Retail                                               $19,665  $45,878
 Wholesale                                             10,824   31,767
 Purchased                                                469   10,608
----------------------------------------------------------------------
      Total loan volume by channel                    $30,958  $88,253
======================================================================
Refinancing Activity(4)
 Home loan refinancing                                $17,444  $45,190
 Home equity loans and lines of credit                     30      707
 Home construction loans                                    1       31
 Multi-family and other real estate                     2,334    2,509
----------------------------------------------------------------------
      Total refinancing                               $19,809  $48,437
======================================================================


(1) Short-term adjustable-rate loans reprice within one year.

(2) Medium-term adjustable-rate loans reprice after one year.

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

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

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


                         Change from
                       Mar. 31, 2008 June 30,  Mar. 31,
                    to June 30, 2008    2008      2008
--------------------------------------------------------
Loans Held in
 Portfolio
  Loans secured by
   real estate:
   Home:
    Short-term
     adjustable-rate
     loans(1):
     Option ARMs(2)   $    (2,960)  $ 52,886  $ 55,846
     Other ARMs              (404)    15,128    15,532
--------------------------------------------------------
      Total short-
       term
       adjustable-
       rate loans          (3,364)    68,014    71,378
    Medium-term
     adjustable-rate
     loans(3)              (1,014)    39,203    40,217
    Fixed-rate
     loans                    (96)    11,761    11,857
--------------------------------------------------------
      Total home
       loans               (4,474)   118,978   123,452
   Home equity loans
    and lines of
    credit                 (1,059)    62,487    63,546
   Home
    construction(4)          (186)     1,902     2,088
   Multi-family               616     33,144    32,528
   Other real
    estate                    456     10,478    10,022
--------------------------------------------------------
      Total loans
       secured by
       real
       estate(5)           (4,647)   226,989   231,636
  Consumer:
   Credit card              1,600     10,589     8,989
   Other                       (9)       177       186
  Commercial                 (131)     1,872     2,003
--------------------------------------------------------
      Total loans
       held in
       portfolio(6)        (3,187)   239,627   242,814
 Less: allowance
  for loan losses          (3,742)    (8,456)   (4,714)
--------------------------------------------------------
      Total loans
       held in
       portfolio,
       net            $    (6,929)  $231,171  $238,100
========================================================



                     Dec. 31, Sept. 30,  June 30,
                        2007      2007      2007
-------------------------------------------------
Loans Held in
 Portfolio
  Loans secured by
   real estate:
   Home:
    Short-term
     adjustable-rate
     loans(1):
     Option ARMs(2) $ 58,870  $ 58,137  $ 53,455
     Other ARMs       16,231    15,478    13,538
-------------------------------------------------
      Total short-
       term
       adjustable-
       rate loans     75,101    73,615    66,993
    Medium-term
     adjustable-rate
     loans(3)         39,373    37,717    29,647
    Fixed-rate
     loans            12,005    11,813     9,505
-------------------------------------------------
      Total home
       loans         126,479   123,145   106,145
   Home equity loans
    and lines of
    credit            63,488    61,831    58,631
   Home
    construction(4)    2,226     2,110     2,058
   Multi-family       31,754    30,831    29,290
   Other real
    estate             9,524     8,335     6,879
-------------------------------------------------
      Total loans
       secured by
       real
       estate(5)     233,471   226,252   203,003
  Consumer:
   Credit card         8,831     8,791     9,913
   Other                 205       224       243
  Commercial           1,879     1,865     1,835
-------------------------------------------------
      Total loans
       held in
       portfolio(6)  244,386   237,132   214,994
 Less: allowance
  for loan losses     (2,571)   (1,889)   (1,560)
-------------------------------------------------
      Total loans
       held in
       portfolio,
       net          $241,815  $235,243  $213,434
=================================================


(1) Short-term adjustable-rate loans reprice within one year.

(2) The total amount by which the unpaid principal balance of Option
     ARM loans exceeded their original principal amount was $2.05
     billion, $1.93 billion, $1.73 billion, $1.50 billion and $1.30
     billion at June 30, 2008, March 31, 2008, December 31, 2007,
     September 30, 2007 and June 30, 2007.

(3) Medium-term adjustable-rate loans reprice after one year.

(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) Includes subprime mortgage channel loans, comprising mortgage
     loans purchased from recognized subprime lenders and mortgage
     loans originated under the Long Beach Mortgage name and held in
     the investment portfolio as follows:
   -------------------------------------------------------------------
   Subprime Mortgage
    Channel              June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                            2008     2008     2007      2007     2007
   -------------------------------------------------------------------
   Home loans            $13,951  $15,032  $16,092   $17,285  $17,602
   Home equity loans
    and lines of credit    2,101    2,312    2,525     2,711    2,855
   -------------------------------------------------------------------
            Total        $16,052  $17,344  $18,617   $19,996  $20,457
   ===================================================================

(6) Includes net unamortized deferred loan costs of $1.31 billion,
     $1.42 billion, $1.45 billion, $1.44 billion and $1.58 billion at
     June 30, 2008, March 31, 2008, December 31, 2007, September 30,
     2007 and June 30, 2007.

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


                                             Weighted
                        Change from          Average
                      Mar. 31, 2008 June 30,  Coupon    Mar. 31,
                   to June 30, 2008    2008    Rate        2008
----------------------------------------------------------------
Selected Loans
 Secured by Real
 Estate
 Home loans held
  in portfolio:
  Short-term
   adjustable-rate
   loans(1):
    Option ARMs       $   (2,960)   $ 52,886     6.61% $ 55,846
    Other ARMs              (404)     15,128     6.70    15,532
--------------------------------------------           ---------
      Total short-
       term
       adjustable-
       rate loans         (3,364)     68,014     6.63    71,378
  Medium-term
   adjustable-rate
   loans(2)               (1,014)     39,203     6.36    40,217
  Fixed-rate loans           (96)     11,761     6.70    11,857
--------------------------------------------           ---------
      Total home
       loans held
       in
       portfolio          (4,474)    118,978     6.55   123,452
 Home equity loans
  and lines of
  credit:
  Adjustable-rate           (410)     53,440     5.65    53,850
  Fixed-rate                (649)      9,047     7.61     9,696
--------------------------------------------           ---------
      Total home
       equity
       loans and
       lines of
       credit             (1,059)     62,487     5.93    63,546
 Multi-family
  loans held in
  portfolio:
  Short-term
   adjustable-rate
   loans(1):
    Option ARMs             (634)      5,524     5.90     6,158
    Other ARMs              (353)      7,116     5.72     7,469
--------------------------------------------           ---------
      Total short-
       term
       adjustable-
       rate loans           (987)     12,640     5.79    13,627
  Medium-term
   adjustable-rate
   loans(2)                1,576      18,393     6.10    16,817
  Fixed-rate loans            27       2,111     6.19     2,084
--------------------------------------------           ---------
      Total multi-
       family
       loans held
       in
       portfolio             616      33,144     5.99    32,528
--------------------------------------------           ---------
      Total
       selected
       loans held
       in
       portfolio
       secured by
       real
       estate(3)          (4,917)    214,609     6.28   219,526
 Loans held for
  sale(4)                 (3,064)      1,877     5.72     4,941
--------------------------------------------           ---------
      Total
       selected
       loans
       secured by
       real estate    $   (7,981)   $216,486     6.28  $224,467
============================================           =========



                    Weighted            Weighted
                    Average             Average
                     Coupon    June 30,  Coupon
                      Rate        2007    Rate
------------------------------------------------
Selected Loans
 Secured by Real
 Estate
 Home loans held
  in portfolio:
  Short-term
   adjustable-rate
   loans(1):
    Option ARMs         7.30% $ 53,455      7.74%
    Other ARMs          6.94    13,538      7.28
-------------------           ---------
      Total short-
       term
       adjustable-
       rate loans       7.22    66,993      7.65
  Medium-term
   adjustable-rate
   loans(2)             6.35    29,647      5.99
  Fixed-rate loans      6.75     9,505      6.71
-------------------           ---------
      Total home
       loans held
       in
       portfolio        6.89   106,145      7.10
 Home equity loans
  and lines of
  credit:
  Adjustable-rate       6.02    47,699      8.25
  Fixed-rate            7.67    10,932      7.70
-------------------           ---------
      Total home
       equity
       loans and
       lines of
       credit           6.27    58,631      8.15
 Multi-family
  loans held in
  portfolio:
  Short-term
   adjustable-rate
   loans(1):
    Option ARMs         6.70     7,650      7.28
    Other ARMs          6.03     7,910      6.77
-------------------           ---------
      Total short-
       term
       adjustable-
       rate loans       6.33    15,560      7.02
  Medium-term
   adjustable-rate
   loans(2)             6.12    11,890      5.93
  Fixed-rate loans      6.22     1,840      6.35
-------------------           ---------
      Total multi-
       family
       loans held
       in
       portfolio        6.22    29,290      6.53
-------------------           ---------
      Total
       selected
       loans held
       in
       portfolio
       secured by
       real
       estate(3)        6.61   194,066      7.33
 Loans held for
  sale(4)               5.73    18,999      6.39
-------------------           ---------
      Total
       selected
       loans
       secured by
       real estate      6.59  $213,065      7.25
===================           =========


(1) Short-term adjustable-rate loans reprice within one year.

(2) Medium-term adjustable-rate loans reprice after one year.

(3) At June 30, 2008, March 31, 2008 and June 30, 2007, adjustable-
     rate loans with lifetime caps were $180.93 billion, $182.93
     billion and $158.24 billion with a lifetime weighted average cap
     rate of 12.67%, 12.60% and 12.96%.

(4) Excludes credit card and student loans.


                                      Mar. 31, 2008     Dec. 31, 2007
                                   to June 30, 2008  to June 30, 2008
----------------------------------------------------------------------
Rollforward of Loans Held
 for Sale
 Balance, beginning of
  period                                $  4,941          $  5,403
  Mortgage loans originated,
   purchased and transferred
   from held in portfolio                  7,339            18,969
  Mortgage loans
   transferred to held in
   portfolio                                 (27)             (373)
  Mortgage loans sold and
   other(1)                              (10,376)          (21,092)
  Net change in consumer
   loans held for sale                         -            (1,030)
----------------------------------------------------------------------
 Balance, end of period                 $  1,877          $  1,877
======================================================================

Rollforward of Home Loans
 Held in Portfolio
 Balance, beginning of
  period                                $123,452          $126,479
  Loans originated,
   purchased and
   transferred from held
   for sale                                1,525             3,790
  Loan payments,
   transferred to held for
   sale and other                         (5,999)          (11,291)
----------------------------------------------------------------------
 Balance, end of period                 $118,978          $118,978
======================================================================

(1) The unpaid principal balance ("UPB") of home loans sold was $9.85
     billion and $19.85 billion for the three and six months ended
     June 30, 2008.

WM-16
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                        Quarter Ended
----------------------------------------------------------------------
Detail of Revenue
 (Expense) from Sales
 and Servicing of Home
 Mortgage Loans         June 30,  Mar. 31, Dec. 31, Sept. 30, June 30,
                           2008      2008     2007      2007     2007
----------------------------------------------------------------------
Gain (loss) from home
 mortgage loans and
 originated mortgage-
 backed securities, net
 of hedging and risk
 management
 instruments:
 Gain (loss) from home
  mortgage loans and
  originated mortgage-
  backed securities(1)    $(162)   $ 143    $   7     $(169)   $   66
 Revaluation gain
  (loss) from
  derivatives
  economically hedging
  loans held for sale        11      (21)     (12)      (53)      126
----------------------------------------------------------------------
   Gain (loss) from
    home mortgage loans
    and originated
    mortgage-backed
    securities, net of
    hedging and risk
    management
    instruments            (151)     122       (5)     (222)      192
Home mortgage loan
 servicing revenue:
 Home mortgage loan
  servicing revenue(2)      438      470      490       516       526
 Change in MSR fair
  value due to payments
  on loans and other       (301)    (230)    (255)     (351)     (401)
----------------------------------------------------------------------
   Net home mortgage
    loan servicing
    revenue                 137      240      235       165       125
 Change in MSR fair
  value due to
  valuation inputs or
  assumptions               542     (499)    (390)     (201)      530
 Revaluation gain
  (loss) from
  derivatives
  economically hedging
  MSR                      (637)     548      518       419      (547)
----------------------------------------------------------------------
   Home mortgage loan
    servicing revenue,
    net of MSR
    valuation changes
    and derivative risk
    management
    instruments              42      289      363       383       108
   Total revenue
    (expense) from
    sales and servicing
    of home mortgage
    loans                 $(109)   $ 411    $ 358     $ 161    $  300
======================================================================


                                                     Six Months Ended
----------------------------------------------------------------------
Detail of Revenue from
 Sales and Servicing of
 Home Mortgage Loans                                 June 30, June 30,
                                                        2008     2007
----------------------------------------------------------------------
Gain (loss) from home
 mortgage loans and
 originated mortgage-
 backed securities, net
 of hedging and risk
 management
 instruments:
 Gain (loss) from home
  mortgage loans and
  originated mortgage-
  backed securities(1)                                $ (19)   $  214
 Revaluation gain
  (loss) from
  derivatives
  economically hedging
  loans held for sale                                    (9)       72
----------------------------------------------------------------------
   Gain (loss) from
    home mortgage loans
    and originated
    mortgage-backed
    securities, net of
    hedging and risk
    management
    instruments                                         (28)      286
Home mortgage loan
 servicing revenue:
 Home mortgage loan
  servicing revenue(2)                                  908     1,041
 Change in MSR fair
  value due to payments
  on loans and other                                   (531)     (757)
----------------------------------------------------------------------
   Net home mortgage
    loan servicing
    revenue                                             377       284
 Change in MSR fair
  value due to
  valuation inputs or
  assumptions                                            42       434
 Revaluation loss from
  derivatives
  economically hedging
  MSR                                                   (89)     (579)
----------------------------------------------------------------------
   Home mortgage loan
    servicing revenue,
    net of MSR
    valuation changes
    and derivative risk
    management
    instruments                                         330       139
   Total revenue from
    sales and servicing
    of home mortgage
    loans                                             $ 302    $  425
======================================================================

(1) 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.

(2) Includes contractually specified servicing fees (net of guarantee
     fees paid to housing government-sponsored enterprises, where
     applicable), late charges and loan pool expenses (the shortfall
     of the scheduled interest required to be remitted to investors
     and that which is collected from borrowers upon payoff).

WM-17
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                      Quarter Ended
----------------------------------------------------------------------
                    June 30,  Mar. 31,  Dec. 31,  Sept. 30,  June 30,
                       2008      2008      2007       2007      2007
----------------------------------------------------------------------
MSR Valuation and
 Risk Management:
  Change in MSR
   fair value due
   to valuation
   inputs or
   assumptions         $ 542     $(499)    $(390)     $(201)    $ 530
Gain (loss) on MSR
 risk management
 instruments:
  Revaluation gain
   (loss) from
   derivatives
   economically
   hedging MSR          (637)      548       518        419      (547)
  Revaluation gain
   (loss) from
   certain trading
   securities             (2)        -         -          4        (4)
----------------------------------------------------------------------
    Total gain
     (loss) on MSR
     risk
     management
     instruments        (639)      548       518        423      (551)
----------------------------------------------------------------------
      Total changes
       in MSR
       valuation
       and risk
       management      $ (97)    $  49     $ 128      $ 222     $ (21)
======================================================================

                                                    Six Months Ended
----------------------------------------------------------------------
                                                   June 30,  June 30,
                                                      2008      2007
----------------------------------------------------------------------
MSR Valuation and Risk Management:
 Change in MSR fair value due to
  valuation inputs or assumptions                      $ 42     $ 434
Loss on MSR risk management
 instruments:
  Revaluation loss from derivatives
   economically hedging MSR                             (89)     (579)
  Revaluation loss from certain trading
   securities                                            (2)        -
----------------------------------------------------------------------
    Total loss on MSR risk management
     instruments                                        (91)     (579)
----------------------------------------------------------------------
      Total changes in MSR valuation
       and risk management                             $(49)    $(145)
======================================================================

WM-18
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                        Quarter Ended
----------------------------------------------------------------------
                        June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2008     2008     2007      2007     2007
----------------------------------------------------------------------
Rollforward of
 Mortgage Servicing
 Rights(1)
  Fair value,
   beginning of period  $  5,726 $  6,278 $  6,794  $  7,231 $  6,507
    Home loans:
     Additions               205      181      127       116      592
     Change in MSR
      fair value due
      to payments on
      loans and other       (301)    (230)    (255)     (351)    (401)
     Change in MSR
      fair value due
      to valuation
      inputs or
      assumptions            542     (499)    (390)     (201)     530
     Sale of MSR               -       (1)       -         -        -
    Net change in
     commercial real
     estate MSR                3       (3)       2        (1)       3
----------------------------------------------------------------------
  Fair value, end of
   period               $  6,175 $  5,726 $  6,278  $  6,794 $  7,231
======================================================================
Rollforward of
 Mortgage Loans
 Serviced for Others
  Balance, beginning
   of period            $449,126 $456,484 $463,436  $474,867 $467,782
    Home loans:
     Additions             9,828    9,862    7,814     8,700   29,949
     Sale of servicing         -     (109)       -         -        -
     Loan payments and
      other              (17,534) (17,177) (15,739)  (20,716) (24,213)
    Net change in
     commercial real
     estate loans            181       66      973       585    1,349
----------------------------------------------------------------------
   Balance, end of
    period              $441,601 $449,126 $456,484  $463,436 $474,867
======================================================================


(1) MSR as a percentage of mortgage loans serviced for others was
     1.40%, 1.27%, 1.38%, 1.47% and 1.52% at June 30, 2008, March 31,
     2008, December 31, 2007, September 30, 2007, and June 30, 2007.


                        June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2008     2008     2007      2007     2007
----------------------------------------------------------------------
Total Servicing
 Portfolio
  Mortgage loans
   serviced for others  $441,601 $449,126 $456,484  $463,436 $474,867
  Consumer loans
   serviced for others    15,842   17,390   17,379    16,078   14,745
  Servicing on
   retained MBS
   without MSR               865      904      942       980    1,023
  Servicing on owned
   loans                 231,188  236,877  238,344   232,392  218,122
  Subservicing
   portfolio                 274      285      399       418      439
----------------------------------------------------------------------
 Total servicing
  portfolio             $689,770 $704,582 $713,548  $713,304 $709,196
======================================================================


                                                    June 30, 2008
----------------------------------------------------------------------
                                                Unpaid     Weighted
                                               Principal   Average
                                                Balance   Servicing
                                                              Fee
----------------------------------------------------------------------
                                                          (in basis
Mortgage Loans Serviced for Others by                      points,
 Loan Type                                                annualized)
  Agency                                        $252,358      32
  Private                                        162,924      58
  Subprime mortgage channel-home                  26,319      51
---------------------------------------------------------
 Total mortgage loans serviced for
  others(1)                                     $441,601      42
=========================================================


(1) Weighted average coupon rate was 6.13% at June 30, 2008.

WM-19
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                        Quarter Ended
----------------------------------------------------------------------
                        June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2008     2008     2007      2007     2007
----------------------------------------------------------------------
Allowance for Loan
 Losses
  Balance, beginning of
   quarter              $ 4,714  $ 2,571   $1,889    $1,560   $1,540
  Allowance transferred
   to loans held for
   sale                       -        -     (105)     (217)     (81)
  Provision for loan
   losses                 5,913    3,511    1,534       967      372
----------------------------------------------------------------------
                         10,627    6,082    3,318     2,310    1,831
 Loans charged off:
  Loans secured by real
   estate:
    Home loans(1)          (687)    (331)    (105)      (52)     (21)
    Home equity loans
     and lines of
     credit(1)             (726)    (486)    (249)     (104)     (55)
    Subprime mortgage
     channel(2)            (572)    (388)    (277)     (146)    (103)
    Home
     construction(3)         (3)      (8)       -         -       (1)
    Multi-family             (3)      (4)      (4)        -        -
    Other real estate        (1)      (2)      (1)       (1)      (1)
----------------------------------------------------------------------
     Total loans
      secured by real
      estate             (1,992)  (1,219)    (636)     (303)    (181)
   Consumer:
    Credit card            (169)    (135)    (126)     (120)    (106)
    Other                    (2)      (2)      (2)       (2)      (2)
   Commercial               (51)     (39)     (32)      (20)     (15)
----------------------------------------------------------------------
     Total loans
      charged off        (2,214)  (1,395)    (796)     (445)    (304)
 Recoveries of loans
  previously charged
  off:
   Loans secured by
    real estate:
     Home loans(1)            -        1        4         1        1
     Home equity loans
      and lines of
      credit(1)              17        9        4         3        3
     Subprime mortgage
      channel(2)              3        1        4         1       11
     Home
      construction(3)         -        -        2         -        -
     Other real estate        1        1        2         2        -
----------------------------------------------------------------------
      Total loans
       secured by real
       estate                21       12       16         7       15
   Credit card               16       12       31        14       15
   Commercial                 6        3        2         3        3
----------------------------------------------------------------------
      Total recoveries
       of loans
       previously
       charged off           43       27       49        24       33
----------------------------------------------------------------------
        Net charge-offs  (2,171)  (1,368)    (747)     (421)    (271)
----------------------------------------------------------------------
 Balance, end of
  quarter               $ 8,456  $ 4,714   $2,571    $1,889   $1,560
======================================================================

 Net charge-offs
  (annualized) as a
  percentage of average
  loans held in
  portfolio                3.59 %   2.24 %   1.24 %    0.74 %   0.50 %
 Allowance as a
  percentage of loans
  held in portfolio        3.53     1.94     1.05      0.80     0.73
______________________

(1) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

(2) Represents mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name and held in the investment portfolio. Charge-offs
     in the second quarter of 2007 include $26 million of amounts
     primarily related to uncollected borrower expenses incurred in
     prior periods by and owed to a third party loan servicer.

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

WM-20
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                        June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2008     2008     2007      2007     2007
----------------------------------------------------------------------
Nonperforming Assets
 Nonaccrual
  loans(1)(2)(3):
   Loans secured by
    real estate:
     Home loans(4)(5)    $ 4,757   $3,504   $2,302    $1,452   $  991
     Home equity loans
      and lines of
      credit(4)            1,521    1,102      835       533      378
     Subprime mortgage
      channel(6)           3,008    2,882    2,721     2,356    1,707
     Home
      construction(7)         79       77       56        44       47
     Multi-family            181      142      131       120       69
     Other real estate        87       87       53        49       52
----------------------------------------------------------------------
      Total nonaccrual
       loans secured by
       real estate         9,633    7,794    6,098     4,554    3,244
   Consumer                    1        2        1         1        1
   Commercial                 57       28       24        22       30
----------------------------------------------------------------------
      Total nonaccrual
       loans held in
       portfolio           9,691    7,824    6,123     4,577    3,275
 Foreclosed assets(8)      1,512    1,357      979       874      750
----------------------------------------------------------------------
      Total
       nonperforming
       assets            $11,203   $9,181   $7,102    $5,451   $4,025
======================================================================

 Total nonperforming
  assets as a
  percentage of total
  assets                    3.62%    2.87%    2.17%     1.65%    1.29%
______________________________

(1) Nonaccrual loans held for sale, which are excluded from the
     nonaccrual balances presented above, were $2 million, zero, $4
     million, $7 million and $171 million at June 30, 2008, March 31,
     2008, December 31, 2007, September 30, 2007 and June 30, 2007.
     Loans held for sale are accounted for at the lower of 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) Includes nonaccrual restructured loans of $1.43 billion, $669
     million, $633 million, $512 million and $152 million at June 30,
     2008, March 31, 2008, December 31, 2007, September 30, 2007 and
     June 30, 2007. Excludes accruing restructured loans of $465
     million, $372 million, $251 million, $269 million and $277
     million at June 30, 2008, March 31, 2008, December 31, 2007,
     September 30, 2007 and June 30, 2007.

(4) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

(5) Includes nonaccrual Option ARM loans of $3.23 billion, $2.51
     billion, $1.63 billion, $1.00 billion and $680 million at June
     30, 2008, March 31, 2008, December 31, 2007, September 30, 2007
     and June 30, 2007.

(6) Represents mortgage loans purchased from recognized subprime
     lenders and mortgage loans originated under the Long Beach
     Mortgage name and held in the investment portfolio.

(7) 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.

(8) Foreclosed real estate securing Government National Mortgage
     Association ("GNMA") loans of $21 million, $25 million, $37
     million, $46 million and $49 million at June 30, 2008, March 31,
     2008, December 31, 2007, September 30, 2007 and June 30, 2007
     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
     Veterans Affairs ("VA").

SOURCE: Washington Mutual, Inc.

Washington Mutual, Inc.
Media Contact
Derek Aney
206-500-6094 (Seattle)
212-326-6075 (New York)
derek.aney@wamu.net
OR
Washington Mutual, Inc.
Investor Relations Contact
Alan Magleby
206-500-4148 (Seattle)
212-702-6955 (New York)
alan.magleby@wamu.net