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Washington Mutual Announces Fourth Quarter and Annual 2004 Earnings; Board of Directors Increases Cash Dividend

January 19, 2005
FOR IMMEDIATE RELEASE

To view a printable version of the Q4 2004 financial release.

To view a downloadable version of the Q4 2004 financial tables.

To view Q4 2004 Earnings Conference Call Prepared Remarks.

SEATTLE--(BUSINESS WIRE)--Jan. 19, 2005--Washington Mutual, Inc. (NYSE:WM) today announced fourth quarter 2004 net income of $668 million, or 76 cents per diluted share versus $842 million, or 93 cents per diluted share for the same period in the previous year. The company also announced 2004 annual net income of $2.88 billion, or $3.26 per diluted share compared to $3.88 billion, or $4.21 per diluted share in 2003.

The difference in net income from the fourth quarter of 2003 was primarily due to several unusual items in that period, including a reversal of reserves for loan and lease losses. For the year, the difference in net income from 2003 reflects not only the above unusual items, but also lower securities gains and lower home loan mortgage banking income, reflecting a steep decline in national mortgage originations.

Washington Mutual's Board of Directors declared a cash dividend of 46 cents per share on the company's common stock, up from 45 cents per share in the previous quarter. Dividends on the common stock are payable on February 15, 2005 to shareholders of record as of January 31, 2005.

"As we embark on a new five-year strategic plan, we leave 2004 with strong momentum in all areas of our business," said Kerry Killinger, chairman and chief executive officer. "I am particularly pleased with the success of the retail bank as well as the progress we're making to improve the efficiency of our mortgage operations. Within the commercial group, we also have a great opportunity to build on our industry leading multi-family lending business."

Killinger added: "Our teams are focused on delivering great service to our customers, executing our new strategic plan and delivering superior long-term returns to our shareholders."

Key fourth quarter and 2004 highlights:

  • Total assets grew $32.74 billion or 12 percent from year end 2003, and increased $19.09 billion or 7 percent from the third quarter, ending the year at $307.92 billion;
  • Net interest margin was up slightly at 2.79 percent in the fourth quarter compared to 2.77 percent in the third quarter but declined from 2.90 percent in the fourth quarter of 2003;
  • Net income in the fourth quarter in the Retail Banking and Financial Services segment grew by 51 percent over the fourth quarter of 2003, driven by a higher mortgage portfolio balance, record growth during the year in the home equity loans and lines of credit portfolio, and a 9 percent increase in depositor and other retail banking fees;
  • For the year we added 250 new retail banking stores, including 69 new stores in the fourth quarter;
  • The Mortgage Banking segment continued to make progress in transforming its business as noninterest expense of $2.61 billion in 2004 declined $469 million, or 15 percent from the prior year;
  • The company achieved its goal of limiting noninterest expense to $7.5 billion for the year, while continuing to grow its retail banking and multi-family businesses;
  • Nonperforming assets as a percentage of total assets were 0.58 percent, down slightly from 0.61 percent as of September 30, 2004 and down from 0.70 percent as of December 31, 2003;
  • The company announced that former JPMorgan Chase executive Steve Rotella has joined the company as President and Chief Operating Officer.

FOURTH QUARTER AND 2004 FINANCIAL SUMMARY
Net Interest Income

Net interest income was $1.85 billion in the fourth quarter of 2004, up 6 percent from $1.74 billion in both the third quarter of 2004 and the fourth quarter of 2003. The increase from the prior quarter reflects a 6 percent increase in average total interest-earning assets. The net interest margin in the fourth quarter was 2.79 percent, up slightly from the third quarter, but down 11 basis points from 2.90 percent in the fourth quarter of 2003.

For 2004, net interest income was $7.12 billion, a decrease of $513 million from $7.63 billion in 2003. This decrease was primarily attributable to a 29 basis point decline in the net interest margin year over year, reflecting declining asset yields in the first half of the year, rising short term interest rates and lower noninterest bearing custodial and escrow deposit balances in the mortgage business.

Noninterest Income

Noninterest income was $1.22 billion in the fourth quarter of 2004, compared with $1.26 billion in the third quarter of 2004 and $1.47 billion in the fourth quarter of 2003. The decline from the fourth quarter of 2003 was driven primarily by lower home loan mortgage banking income.

For the year, noninterest income was $4.61 billion, down 21 percent from $5.85 billion in 2003. The decline was primarily the result of significantly lower securities gains and lower home loan mortgage banking income.

Noninterest Expense

The company achieved its goal of limiting annual noninterest expense to $7.5 billion, while executing on its targeted growth and retail expansion of 250 new stores in 2004. These expenses included $274 million of technology-related and restructuring charges. Excluding technology-related and restructuring costs of $110 million in the fourth quarter and $71 million in the third quarter, noninterest expense increased $30 million quarter over quarter due to a decrease in our deferral rate for loan origination expenses. The company's efficiency ratio was 63.18 percent, compared with 62.19 percent for the third quarter of 2004 and 65.51 percent in the fourth quarter of 2003.

Lending

Total loan volume was $63.22 billion in the fourth quarter, compared with $61.83 billion in the third quarter of 2004 and $69.90 billion in the fourth quarter of 2003, reflecting the company's ability to generate assets throughout the interest rate cycle.

While fourth quarter fixed rate home loan volume declined 46 percent compared with the fourth quarter of 2003, adjustable rate home loan volume was up 27 percent, while home equity loan and line of credit and multi-family volumes rose 17 percent and 36 percent, respectively. The home loan volume included a 55 percent increase in specialty mortgage finance loan volumes.

During the fourth quarter of 2004, ARMs represented 68 percent of the company's home loan volume, compared with 67 percent in the third quarter of 2004 and 48 percent in the fourth quarter of 2003.

Credit Quality

At December 31, 2004, nonperforming assets as a percentage of total assets were 0.58 percent, down slightly from 0.61 percent at September 30, 2004 and down from 0.70 percent at December 31, 2003. Net charge offs for the quarter were $38 million versus $97 million in the fourth quarter of 2003, which included a one-time charge off of $39 million that resulted from the sale of the franchise finance loan portfolio. Net charge offs for the third quarter of 2004 were $27 million. The company's fourth quarter provision for loan and lease losses was $37 million, while the allowance for loan and lease losses was $1.30 billion at December 31, 2004.

Balance Sheet and Capital Management

Total assets increased $19.09 billion from the end of the third quarter to $307.92 billion at year end, primarily the result of a $13.56 billion increase in loans held for sale.

Total deposits increased $4.96 billion from the previous quarter to $173.66 billion as of December 31, 2004, as a result of increases of $4.40 billion in wholesale deposits and $665 million in retail deposits.

The company's ratio of tangible common equity to tangible assets was 5.05 percent at the end of 2004. In addition, the capital ratios of the company's banking subsidiaries continued to exceed the federal regulatory requirements for classification as "well-capitalized" institutions, the highest regulatory standard.

FOURTH QUARTER AND 2004 OPERATING SEGMENT RESULTS

Retail Banking and Financial Services Financial Performance

Net income for the company's Retail Banking and Financial Services segment was $565 million in the fourth quarter, up 12 percent from $506 million in the third quarter and up 51 percent from $374 million in the fourth quarter of 2003. Net interest income performance was strong reflecting the growth in average balances of home equity loans and lines of credit and the mortgage loan portfolio.

For the year net income was $1.98 billion, up 32 percent from the prior year due to an increase in net interest income, reflecting a 35 percent increase in average loans outstanding. At the same time, noninterest income grew 10 percent, primarily driven by a 10 percent year-over-year growth in depositor and other retail banking fees.

Highlights of the Retail Banking and Financial Services Segment included:

  • Total retail deposits of $132.67 billion were up $665 million from the prior quarter and $4.22 billion, or 3 percent from the fourth quarter of 2003;
  • The company's retail banking network grew to 1,939 retail stores with 250 new stores opened in 2004, including 69 opened during the fourth quarter;
  • Record volume in home equity loans and lines of credit in 2004 led to a 58 percent annual increase in the portfolio to $43.65 billion at year end 2004;
  • The cross-sell ratio for the average mature retail banking household increased to 5.90 products and services, up from 5.83 at the end of the third quarter of 2004;
  • WM Advisors assets under management grew by $4.33 billion, or 24 percent, over the past year to $22.20 billion at December 31, 2004.

Mortgage Banking Financial Performance

Net income for the Mortgage Banking segment was $138 million in the fourth quarter compared with $270 million in the third quarter of 2004 and $232 million in the fourth quarter of 2003.

For the year, net income was $570 million, down $728 million from $1.30 billion in 2003, reflecting a steep decline in national mortgage originations. The slowing mortgage market led to reduced loan volumes and a 45 percent decline in average loan balances, as well as a decline in custodial and escrow deposit balances. Overall there was a 48 percent reduction in net interest income. In addition, the $682 million decline in noninterest income was partially offset by a $469 million reduction in noninterest expense reflecting the improved efficiencies and continued expense reductions in the Mortgage Banking segment.

Highlights of the Mortgage Banking Segment included:

  • Total home loan volume for the quarter, excluding specialty mortgage finance, was $41.59 billion, compared to $40.22 billion in the third quarter of 2004 and $51.50 billion in the fourth quarter of 2003;
  • MSR performance for the quarter, including amortization and the effect of hedges, contributed a net cost of $277 million, compared to a net cost of $123 million in the third quarter;
  • Noninterest expense of $635 million for the quarter was up slightly from the previous quarter due to a decrease in our deferral rate for loan origination expenses, but down $230 million from $865 million in the fourth quarter of 2003. For the year, noninterest expense of $2.61 billion was down $469 million from $3.08 billion in 2003 reflecting the reduction in loan volume related expenses and the streamlining of business operations.
Commercial Group Financial Performance

Net income for the Commercial Group was $129 million, compared with $146 million in the previous quarter and $112 million from continuing operations in the fourth quarter of 2003. Net income for the year was $633 million compared with $696 million from continuing operations for 2003. The difference in net income from the prior year was primarily due to certain previously disclosed transactions occurring in the second half of 2003 totaling $170 million pre-tax.

Highlights of the Commercial Group included:

  • Multi-family loan volume in 2004 was a record $8.16 billion, up slightly from 2003 despite a rising interest rate environment;
  • The average balance for multi-family loans grew 9 percent year over year and contributed significantly to the total Commercial Group average loan growth of $3.31 billion or 9 percent;
  • Total average deposits of $7.79 billion in the fourth quarter of 2004 increased 27 percent from $6.13 billion in the fourth quarter of 2003.
About Washington Mutual

With a history dating back to 1889, Washington Mutual is a retailer of financial services that provides a diversified line of products and services to consumers and commercial clients. At December 31, 2004, Washington Mutual and its subsidiaries had assets of $307.92 billion. Washington Mutual currently operates more than 2,400 retail banking, mortgage lending, commercial banking and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamunewsroom.com.

Webcast information: A conference call to discuss the company's financial results will be held on Thursday, January 20, 2005, at 10:30 a.m. EST and will be hosted by Kerry Killinger, chairman and chief executive officer, and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-780-9655. Participants calling from outside the United States may dial 712-421-1601. The passcode "WaMu" is required to access the call. Via the Internet, the conference call is available on the Investor Relations portion of the company's web site at www.wamu.com/ir. A transcript of the prepared remarks will be on the company's web site for 30 days following the call. A recording of the conference call will be available after 1 p.m. EST on Thursday, January 20, 2005, through 11:59 p.m. EST on Saturday, January 29, 2005. The recorded message will be available at 866-511-5153. Callers from outside the United States may dial 203-369-1953.

Forward-Looking Statement

Our Form 10-K/A for 2003 and other documents that we filed with the Securities and Exchange Commission have forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements provide our expectations or predictions of future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. These statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward looking statements were made. There are a number of factors, many of which are beyond our control that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Some of these factors are described in detail in our Form 10K/A for 2003 and include:

  • General business and economic conditions, including movements in interest rates, may significantly affect our earnings;
  • If we are unable to effectively manage the volatility of our mortgage banking business, our earnings could be adversely affected;
  • Our retail banking business faces competition for loans and deposits from banking and nonbanking companies, which may have a disparate impact on our operations in our emerging markets; and
  • Changes in the regulation of financial services companies and housing government-sponsored enterprises could adversely affect our business.


WM-1
                       Washington Mutual, Inc.
                  Consolidated Statements of Income
             (dollars in millions, except per share data)
                             (unaudited)

                                       Quarter Ended
----------------------------------------------------------------------
                       Dec. 31, Sept. 30,  June 30,  Mar. 31, Dec. 31,
                         2004      2004      2004      2004     2003
----------------------------------------------------------------------
Interest Income
 Loans held for sale  $   393  $    341  $    406  $    332  $    441
 Loans held in
  portfolio             2,421     2,226     2,111     2,067     1,967
 Available-for-sale
  securities              157       163       180       265       353
 Other interest and
  dividend income          95        81        55        57        38
----------------------------------------------------------------------
   Total interest
    income              3,066     2,811     2,752     2,721     2,799
Interest Expense
 Deposits                 604       539       458       443       491
 Borrowings               612       532       500       546       565
----------------------------------------------------------------------
   Total interest
    expense             1,216     1,071       958       989     1,056
----------------------------------------------------------------------
    Net interest
     income             1,850     1,740     1,794     1,732     1,743
 Provision (reversal
  of reserve) for loan
   and lease losses        37        56        60        56      (202)
----------------------------------------------------------------------
    Net interest income
     after provision
     (reversal of reserve)
      for loan and lease
       losses           1,813     1,684     1,734     1,676     1,945
Noninterest Income
 Home loan mortgage
  banking income, net     352       504         -       531       592
 Depositor and other
  retail banking fees     515       514       507       463       472
 Securities fees and
  commissions             110       104       105       107       103
 Insurance income          47        61        57        61        49
 Portfolio loan
  related income          101       109       103        87        96
 Gain (loss) from
  other available-for-
   sale securities        (23)       11        41        21       (13)
 Loss on extinguishment
  of borrowings             -      (147)       (1)      (89)        -
 Other income             115       108        82        56       166
----------------------------------------------------------------------
    Total noninterest
     income             1,217     1,264       894     1,237     1,465
Noninterest Expense
 Compensation and
  benefits                839       841       849       899       877
 Occupancy and
  equipment               462       404       393       400       569
 Telecommunications
  and outsourced
   information services   115       118       123       123       125
 Depositor and other
  retail banking
   losses                  61        54        40        40        40
 Amortization of other
  intangible assets        13        14        14        15        15
 Advertising and
  promotion                57        76        84        58        88
 Professional fees         54        34        32        39        78
 Other expense            337       328       313       306       309
----------------------------------------------------------------------
    Total noninterest
     expense            1,938     1,869     1,848     1,880     2,101
----------------------------------------------------------------------
      Income from
       continuing
        operations before
         income taxes   1,092     1,079       780     1,033     1,309
      Income taxes        424       405       291       385       488
----------------------------------------------------------------------
       Income from
        continuing
         operations, net
         of taxes         668       674       489       648       821
----------------------------------------------------------------------
Discontinued Operations
      Income (loss) from
       discontinued
        operations before
         income taxes       -         -         -       (32)       34
      Gain on disposition
       of discontinued
        operations          -         -         -       676         -
      Income taxes          -         -         -       245        13
----------------------------------------------------------------------
       Income from
        discontinued
         operations, net of
          taxes             -         -         -       399        21
--------------------- --------- --------- --------- --------- --------
Net Income           $    668  $    674  $    489  $  1,047  $    842
===================== ========= ========= ========= ========= ========

Basic Earnings Per
 Common Share:
 Income from
  continuing
   operations        $   0.77  $   0.78  $   0.57  $   0.75  $   0.93
 Income from
  discontinued
   operations, net          -         -         -      0.46      0.02
                      --------  --------  --------  --------  --------
 Net income              0.77      0.78      0.57      1.21      0.95

Diluted Earnings Per
 Common Share:
 Income from
  continuing
   operations        $   0.76  $   0.76  $   0.55  $   0.73  $   0.91
 Income from
  discontinued
   operations, net          -         -         -      0.45      0.02
                      --------  --------  --------  --------  --------
 Net income              0.76      0.76      0.55      1.18      0.93

Dividends declared
 per common share        0.45      0.44      0.43      0.42      0.41
Basic weighted
 average number of
  common shares
   outstanding (in
    thousands)        863,055   862,004   860,496   863,299   883,539
Diluted weighted
 average number of
  common shares
   outstanding (in
    thousands)        883,991   882,323   883,414   886,467   904,840


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

                                                       Year Ended
---------------------------------------------------------------------
                                                    Dec. 31,  Dec. 31,
                                                       2004      2003
----------------------------------------------------------------------
Interest Income
 Loans held for sale                               $  1,472  $  2,501
 Loans held in portfolio                              8,825     7,668
 Available-for-sale securities                          764     1,738
 Other interest and dividend income                     289       256
----------------------------------------------------------------------
        Total interest income                        11,350    12,163
Interest Expense
 Deposits                                             2,043     2,165
 Borrowings                                           2,191     2,369
----------------------------------------------------------------------
        Total interest expense                        4,234     4,534
----------------------------------------------------------------------
             Net interest income                      7,116     7,629
 Provision for loan and lease losses                    209        42
----------------------------------------------------------------------
        Net interest income after provision for
         loan and lease losses                        6,907     7,587
Noninterest Income
 Home loan mortgage banking income, net               1,387     1,974
 Depositor and other retail banking fees              1,999     1,818
 Securities fees and commissions                        426       395
 Insurance income                                       226       188
 Portfolio loan related income                          401       439
 Gain from other available-for-sale securities           50       676
 Loss on extinguishment of borrowings                  (237)     (129)
 Other income                                           360       489
----------------------------------------------------------------------
        Total noninterest income                      4,612     5,850
Noninterest Expense
 Compensation and benefits                            3,428     3,304
 Occupancy and equipment                              1,659     1,592
 Telecommunications and outsourced information
  services                                              479       554
 Depositor and other retail banking losses              195       154
 Amortization of other intangible assets                 56        61
 Advertising and promotion                              276       278
 Professional fees                                      158       267
 Other expense                                        1,284     1,198
----------------------------------------------------------------------
        Total noninterest expense                     7,535     7,408
----------------------------------------------------------------------
             Income from continuing operations
              before income taxes                     3,984     6,029
             Income taxes                             1,505     2,236
----------------------------------------------------------------------
                  Income from continuing
                   operations, net of taxes           2,479     3,793
----------------------------------------------------------------------
Discontinued Operations
             Income (loss) from discontinued
              operations before income taxes            (32)      137
             Gain on disposition of discontinued
              operations                                676         -
             Income taxes                               245        50
----------------------------------------------------------------------
                  Income from discontinued
                   operations, net of taxes             399        87
----------------------------------------------------------------------
Net Income                                         $  2,878  $  3,880
======================================================================

Basic Earnings Per Common Share:
 Income from continuing operations                 $   2.88  $   4.20
 Income from discontinued operations, net              0.46      0.09
                                                    --------  --------
 Net income                                            3.34      4.29

Diluted Earnings Per Common Share:
 Income from continuing operations                 $   2.81  $   4.12
 Income from discontinued operations, net              0.45      0.09
                                                    --------  --------
 Net income                                            3.26      4.21

Dividends declared per common share                    1.74      1.40
Basic weighted average number of common shares
 outstanding (in thousands)                         862,215   903,666
Diluted weighted average number of common shares
 outstanding (in thousands)                         884,050   921,757


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

                       Dec. 31, Sept. 30,  June 30,  Mar. 31, Dec. 31,
                         2004      2004      2004      2004     2003
----------------------------------------------------------------------
Assets
 Cash and cash
  equivalents        $  4,455  $  4,689  $  5,133  $  6,045  $  7,018
 Federal funds sold
  and securities
   purchased under
    agreements to
     resell                82        30        70     1,783        19
 Available-for-sale
  securities, total
   amortized cost of
    $19,047, $16,312,
     $19,392, $22,843
      and $36,858:
   Mortgage-backed
    securities         14,923    10,168    10,042    10,766    10,695
   Investment
    securities          4,296     6,319     9,337    12,565    26,012
 Loans held for sale   42,743    29,184    27,795    34,207    20,837
 Loans held in
  portfolio           207,071   206,158   194,543   186,380   175,150
 Allowance for loan
  and lease losses     (1,301)   (1,322)   (1,293)   (1,260)   (1,250)
----------------------------------------------------------------------
     Total loans
      held in
       portfolio, net
        of allowance
         for loan and
          lease
           losses     205,770   204,836   193,250   185,120   173,900
 Investment in
  Federal Home Loan
   Banks                4,059     3,883     3,965     3,916     3,462
 Mortgage servicing
  rights                5,906     6,112     7,501     5,239     6,354
 Goodwill               6,196     6,196     6,196     6,196     6,196
 Assets of
  discontinued
   operations               -         -         -         -     4,184
 Other assets          19,488    17,411    15,255    14,931    16,501
--------------------- --------- --------- --------- --------- --------
      Total assets   $307,918  $288,828  $278,544  $280,768  $275,178
===================== ========= ========= ========= ========= ========
Liabilities
 Deposits:
   Noninterest-
    bearing deposits $ 32,780  $ 32,250  $ 33,343  $ 35,714  $ 29,968
   Interest-bearing
    deposits          140,878   136,445   129,123   125,267   123,213
----------------------------------------------------------------------
     Total deposits   173,658   168,695   162,466   160,981   153,181
 Federal funds
  purchased and
   commercial paper     4,045     7,025     2,293     4,501     2,011
 Securities sold
  under agreements
   to repurchase       15,944    15,611    15,764    18,306    28,333
 Advances from
  Federal Home Loan
   Banks               70,074    59,758    61,379    58,494    48,330
 Other borrowings      18,498    12,747    12,113    13,692    15,483
 Liabilities of
  discontinued
   operations               -         -         -         -     3,578
 Other liabilities      4,473     4,172     4,160     4,411     4,520
----------------------------------------------------------------------
     Total
      liabilities     286,692   268,008   258,175   260,385   255,436
Stockholders' equity   21,226    20,820    20,369    20,383    19,742
--------------------- --------- --------- --------- --------- --------
     Total
      liabilities
       and stockholders'
        equity       $307,918  $288,828  $278,544  $280,768  $275,178
======================================================================
Common shares
 outstanding at end
  of period (in
   thousands)(1)      874,262   873,085   872,246   868,953   880,986
Book value per
 common share(2)     $  24.45  $  24.01  $  23.51  $  23.62  $  22.56
Tangible book value
 per common share(2)    17.45     16.99     16.47     16.53     15.58
Employees at end of
 period(3)             52,579    55,488    57,274    59,173    63,720

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

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

(3) Includes 2,346 employees reported as part of discontinued
    operations at December 31, 2003.


WM-4
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Quarter Ended
----------------------------------------------------------------------
                       Dec. 31, Sept. 30,  June 30,  Mar. 31, Dec. 31,
                         2004      2004      2004      2004     2003
----------------------------------------------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period               $20,820   $20,369   $20,383   $19,742   $20,441
Net income                668       674       489     1,047       842
Other comprehensive
 income (loss), net
  of tax                   49        98      (210)      512      (105)
Cash dividends
 declared on common
  stock                  (390)     (381)     (372)     (367)     (368)
Cash dividends
 returned(1)                -         -         -         -        45
Common stock
 repurchased and
  retired                   -         -         -      (712)   (1,269)
Common stock issued        79        60        79       161       156
----------------------------------------------------------------------
Balance, end of
 period               $21,226   $20,820   $20,369   $20,383   $19,742
======================================================================

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


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

                                         Quarter Ended
----------------------------------------------------------------------
                          Dec. 31,Sept. 30, June 30, Mar. 31, Dec. 31,
                            2004     2004     2004     2004     2003
----------------------------------------------------------------------
RETAIL BANKING AND
 FINANCIAL SERVICES GROUP
   Condensed income
    statement:
     Net interest income $  1,323 $  1,255 $  1,224 $  1,187 $  1,074
     Provision for loan
      and lease losses         34       42       43       58       49
     Noninterest income       717      715      703      623      647
     Inter-segment
      revenue                   8        3        7        6       20
     Noninterest expense    1,132    1,116    1,115    1,071    1,072
----------------------------------------------------------------------
     Income before
      income taxes            882      815      776      687      620
     Income taxes             317      309      294      260      246
----------------------------------------------------------------------
         Net income      $    565 $    506 $    482 $    427 $    374
======================================================================
   Performance and
    other data:
     Efficiency ratio(1)    48.95%   49.97%   50.97%   51.86%   54.14%
     Average loans       $177,204 $167,569 $158,966 $149,377 $135,338
     Average assets       189,872  180,003  171,343  161,359  147,281
     Average deposits     132,771  131,850  128,680  128,000  128,651
     Employees at end of
      period               30,107   30,069   29,640   29,077   29,364

MORTGAGE BANKING GROUP
   Condensed income
    statement:
     Net interest income $    293 $    287 $    369 $    288 $    403
     Provision for loan
      and lease losses          -        -        -        -        -
     Noninterest income       566      769      208      761      867
     Inter-segment
      expense                   8        3        7        6       20
     Noninterest expense      635      619      671      682      865
----------------------------------------------------------------------
     Income (expense)
      before income
      taxes                   216      434     (101)     361      385
     Income taxes
      (benefit)                78      164      (38)     136      153
----------------------------------------------------------------------
           Net income
            (loss)       $    138 $    270 $    (63)$    225 $    232
======================================================================
   Performance and
    other data:
     Efficiency
      ratio(1)              68.51%   53.78%  108.54%   60.45%   65.00%
     Average loans       $ 24,880 $ 22,611 $ 26,999 $ 19,871 $ 24,677
     Average assets        44,209   40,047   44,573   38,918   48,090
     Average deposits      15,121   15,385   19,837   14,877   18,347
     Employees at end
      of period            14,197   16,826   18,916   21,203   22,541

COMMERCIAL GROUP
 Condensed income
  statement:
   Net interest income   $    322 $    325 $    342 $    343 $    364
   Provision for loan
    and lease losses           11        8       10       16       65
   Noninterest income          61       65      102       86       53
   Noninterest expense        184      160      144      151      174
----------------------------------------------------------------------
   Income from
    continuing
     operations before
      income taxes            188      222      290      262      178
   Income taxes                59       76      102       92       66
----------------------------------------------------------------------
     Income from
      continuing
       operations             129      146      188      170      112
   Income from
    discontinued
     operations, net of
      taxes                     -        -        -        -       21
----------------------------------------------------------------------
             Net income  $    129 $    146 $    188 $    170 $    133
======================================================================
 Performance and other
  data:
   Efficiency ratio(1)      40.21%   33.37%   25.90%   28.44%   34.64%
   Average loans         $ 40,917 $ 38,799 $ 38,496 $ 36,984 $ 37,801
   Average assets          45,668   43,724   43,749   42,805   46,306
   Average deposits         7,791    7,811    6,898    6,049    6,130
   Employees at end of
    period(2)               3,100    3,248    3,207    3,130    5,627



                                                       Year Ended
                                                     -----------------
                                                     Dec. 31, Dec. 31,
                                                       2004     2003
----------------------                               -------- --------
RETAIL BANKING AND
 FINANCIAL SERVICES GROUP
   Condensed income
    statement:
     Net interest
      income                                        $  4,989 $  3,872
     Provision for
      loan and lease
       losses                                            177      183
     Noninterest
      income                                           2,758    2,500
     Inter-segment
      revenue                                             24      179
     Noninterest
      expense                                          4,434    3,939
----------------------                               -------- --------
     Income before
      income taxes                                     3,160    2,429
     Income taxes                                      1,180      931
----------------------                               -------- --------
         Net income                                 $  1,980 $  1,498
======================                               ======== ========
   Performance and
    other data:
     Efficiency
      ratio(1)                                         50.39%   52.24%
     Average loans                                  $163,329 $120,705
     Average assets                                  175,696  132,427
     Average
      deposits                                       130,337  125,440
     Employees at
      end of period                                   30,107   29,364

MORTGAGE BANKING GROUP
   Condensed income
    statement:
     Net interest
      income                                        $  1,237 $  2,382
     Provision for
      loan and lease
        losses                                             -       14
     Noninterest
      income                                           2,304    2,986
     Inter-segment
      expense                                             24      179
     Noninterest
      expense                                          2,607    3,076
----------------------                               -----------------
     Income (expense)
      before income
       taxes                                             910    2,099
     Income taxes
      (benefit)                                          340      801
----------------------                               -----------------
         Net income
          (loss)                                    $    570 $  1,298
======================                               =================
   Performance and
    other data:
     Efficiency
      ratio(1)                                         68.19%   55.28%
     Average loans                                  $ 23,591 $ 42,990
     Average assets                                   41,938   70,308
     Average
      deposits                                        16,299   27,112
     Employees at
      end of period                                   14,197   22,541

COMMERCIAL GROUP
 Condensed income
  statement:
   Net interest
    income                                          $  1,332 $  1,321
   Provision for loan
    and lease losses                                      45      103
   Noninterest income                                    314      472
   Noninterest
    expense                                              639      602
----------------------                               -----------------
   Income from
    continuing
     operations before
      income taxes                                       962    1,088
   Income taxes                                          329      392
----------------------                               -----------------
     Income from
      continuing
       operations                                        633      696
   Income from
    discontinued
     operations, net
      of taxes                                             -       87
----------------------                               -----------------
         Net income                                 $    633 $    783
======================                               =================
 Performance and other
  data:
   Efficiency
    ratio(1)                                           31.67%   26.95%
   Average loans                                    $ 38,804 $ 35,490
   Average assets                                     43,990   44,037
   Average deposits                                    7,141    5,407
   Employees at end
    of period(2)                                       3,100    5,627

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


(1) The efficiency ratio is defined as noninterest expense, excluding
    a cost of capital charge on goodwill, divided by total revenue
    (net interest income and noninterest income).

(2) Includes 2,346 employees reported as part of discontinued
    operations at December 31, 2003.


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


                                         Quarter Ended
----------------------------------------------------------------------
(This table is continued  Dec. 31, Sept. 30, June 30, Mar. 31,Dec. 31,
 from "WM-5".)
                            2004     2004     2004     2004     2003
----------------------------------------------------------------------
CORPORATE SUPPORT/TREASURY
 AND OTHER
  Condensed income
   statement:
    Net interest
     expense             $   (201)$   (237)$   (247)$   (189)$   (195)
    Provision for
     loan and lease
      losses                    -        -        -        -        4
    Noninterest
     income (expense)          12     (123)      24      (69)     138
    Noninterest
     expense                  199      186      128      186      202
---------------------------------------------------------------------
    Income (expense)
     from continuing
      operations             (388)    (546)    (351)    (444)    (263)
    Income taxes
     (benefit)               (151)    (205)    (131)    (165)     (98)
----------------------------------------------------------------------
       Income
        (expense) from
         continuing
          operations         (237)    (341)    (220)    (279)    (165)
    Income from
     discontinued
      operations, net
       of taxes                 -        -        -      399        -
----------------------------------------------------------------------
            Net income
             (loss)      $   (237)$   (341)$   (220)$    120 $   (165)
======================================================================
  Performance and
   other data:
    Average assets       $ 19,275 $ 21,717 $ 26,020 $ 29,992 $ 37,675
    Average deposits       18,190   13,820    9,391    5,028    5,558
    Employees at end
     of period              5,175    5,345    5,511    5,763    6,188

RECONCILING ADJUSTMENTS
  Condensed income
   statement:
    Net interest
     income(3)           $    113 $    110 $    106 $    103 $     97
    Provision
     (reversal of
       reserve) for loan
        and lease
         losses(4)             (8)       6        7      (18)    (320)
    Noninterest
     income
       (expense)(5)          (139)    (162)    (143)    (164)    (240)
    Noninterest
     (income)
       expense(6)            (212)    (212)    (210)    (210)    (212)
----------------------------------------------------------------------
    Income before
     income taxes             194      154      166      167      389
    Income taxes(7)           121       61       64       62      121
----------------------------------------------------------------------
       Net income        $     73 $     93 $    102 $    105 $    268
======================================================================
  Performance and
   other data:
    Average loans(8)     $ (1,622)$ (1,600)$ (1,553)$ (1,505)$ (1,421)
    Average
     assets(8)(9)          (1,866)  (1,822)  (1,745)  (1,668)  (1,912)

TOTAL CONSOLIDATED
  Condensed income
   statement:
    Net interest income  $  1,850 $  1,740 $  1,794 $  1,732 $  1,743
    Provision (reversal
     of reserve) for loan
     and lease losses          37       56       60       56     (202)
    Noninterest income      1,217    1,264      894    1,237    1,465
    Noninterest expense     1,938    1,869    1,848    1,880    2,101
----------------------------------------------------------------------
    Income from
     continuing
      operations before
       income taxes         1,092    1,079      780    1,033    1,309
    Income taxes              424      405      291      385      488
----------------------------------------------------------------------
       Income from
        continuing
        operations            668      674      489      648      821
    Income from
     discontinued
     operations, net of
     taxes                      -        -        -      399       21
----------------------------------------------------------------------
            Net income   $    668 $    674 $    489 $  1,047 $    842
======================================================================
  Performance and other
   data:
    Efficiency ratio(10)    63.18%   62.19%   68.77%   63.34%   65.51%
    Average loans        $241,379 $227,379 $222,908 $204,727 $196,395
    Average assets        297,158  283,669  283,940  271,406  277,440
    Average deposits      173,873  168,866  164,806  153,954  158,686
    Employees at end of
     period(2)             52,579   55,488   57,274   59,173   63,720



                                                        Year Ended
----------------------------------------------------------------------
(This table is continued                             Dec. 31, Dec. 31,
 from "WM-5".)                                          2004     2003
----------------------------------------------------------------------
CORPORATE
 SUPPORT/TREASURY
  AND OTHER
  Condensed income statement:
    Net interest
     expense                                        $   (874)$   (302)
    Provision for
     loan and lease
      losses                                               -        4
    Noninterest
     income (expense)                                   (156)     644
    Noninterest
     expense                                             699      634
----------------------------------------------------------------------
    Income (expense)
     from continuing
      operations                                      (1,729)    (296)
    Income taxes
     (benefit)                                          (652)    (110)
----------------------------------------------------------------------
       Income
        (expense)
         from
          continuing
           operations                                 (1,077)    (186)
    Income from
     discontinued
      operations, net
       of taxes                                          399        -
----------------------------------------------------------------------
            Net income
               (loss)                               $   (678)$   (186)
======================================================================
  Performance and
   other data:
    Average assets                                  $ 24,230 $ 38,168
    Average deposits                                  11,631    5,626
    Employees at end
     of period                                         5,175    6,188

RECONCILING ADJUSTMENTS
  Condensed income
   statement:
    Net interest
     income(3)                                      $    432 $    356
    Provision
     (reversal of
      reserve) for
       loan and lease
        losses(4)                                        (13)    (262)
    Noninterest
     income
      (expense)(5)                                      (608)    (752)
    Noninterest
     (income)
      expense(6)                                        (844)    (843)
----------------------------------------------------------------------
    Income before
     income taxes                                        681      709
    Income taxes(7)                                      308      222
----------------------------------------------------------------------
            Net income                              $    373 $    487
======================================================================
  Performance and
   other data:
    Average loans(8)                                $ (1,570)$ (1,260)
    Average
     assets(8)(9)                                     (1,776)  (1,821)

TOTAL CONSOLIDATED
  Condensed income
   statement:
    Net interest income                             $  7,116 $  7,629
    Provision (reversal
     of reserve) for
      loan and lease
       losses                                            209       42
    Noninterest income                                 4,612    5,850
    Noninterest expense                                7,535    7,408
----------------------------------------------------------------------
    Income from
     continuing
     operations before
     income taxes                                      3,984    6,029
    Income taxes                                       1,505    2,236
----------------------------------------------------------------------
       Income from
        continuing
         operations                                    2,479    3,793
    Income from
     discontinued
      operations, net of
       taxes                                             399       87
----------------------------------------------------------------------
            Net income                              $  2,878 $  3,880
======================================================================
  Performance and other
   data:
    Efficiency ratio(10)                               64.25%   54.96%
    Average loans                                   $224,154 $197,925
    Average assets                                   284,078  283,119
    Average deposits                                 165,408  163,585
    Employees at end of
     period(2)                                        52,579   63,720


(2) Includes 2,346 employees reported as part of discontinued
    operations at December 31, 2003.

(3) Represents the difference between home loan premium amortization
    recorded by the Retail Banking and Financial Services segment and
    the amount recognized in the Company's Consolidated Statements of
    Income.  For management reporting purposes, loans that are held in
    portfolio by the Retail Banking and Financial Services segment are
    treated as if they are purchased from the Mortgage Banking
    segment.  Since the cost basis of these loans includes an assumed
    profit factor paid to the Mortgage Banking segment, the
    amortization of loan premiums recorded by the Retail Banking and
    Financial Services segment includes this assumed profit factor and
    must therefore be eliminated as a reconciling adjustment.

(4) Represents the difference between the long-term, normalized net
    charge-off ratio used to assess expected loan and lease losses for
    the operating segments and the "losses inherent in the loan
    portfolio" methodology used by the Company.

(5) Represents the difference between gain from mortgage loans
    recorded by the Mortgage Banking segment and the gain from
    mortgage loans recognized in the Company's Consolidated Statements
    of Income. As the Mortgage Banking segment holds no loans in
    portfolio, all loans originated or purchased by this segment are
    considered to be salable for management reporting purposes.
(6) Represents the corporate offset for the cost of capital related to
    goodwill that has been allocated to the segments.

(7) Represents the tax effect of reconciling adjustments.

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

(9) Includes the impact to the allowance for the loan and lease losses
    per the following table that results from the difference between
    the long-term, normalized net charge-off ratio used to assess
    expected loan and lease losses for the operating segments and the
    "losses inherent in the loan portfolio" methodology used by the
    Company.
----------------------------------------------------------------------
                Quarter Ended                          Year Ended
----------------------------------------------------------------------
Dec. 31,   Sept. 30,  June 30,  Mar. 31, Dec. 31,    Dec. 31, Dec. 31,
  2004       2004      2004      2004     2003        2004     2003
----------------------------------------------------------------------
 $ (244)   $ (222)   $ (192) $  (163)   $(491)      $  (206)  $ (561)
----------------------------------------------------------------------

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


WM-7

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


                                     Quarter Ended
-------------------------------------------------------------------
                      Dec. 31, Sept. 30,  June 30,  Mar. 31,  Dec. 31,
                        2004      2004      2004      2004      2003
-------------------- --------- --------- --------- --------- ---------
PROFITABILITY
 Net interest income$  1,850  $  1,740  $  1,794  $  1,732  $  1,743
 Net interest margin    2.79 %    2.77 %    2.86 %    2.89 %    2.90 %
 Noninterest income $  1,217  $  1,264  $    894  $  1,237  $  1,465
 Noninterest expense   1,938     1,869     1,848     1,880     2,101
Basic earnings per
 common share:
   Income from
    continuing
    operations      $   0.77  $   0.78  $   0.57  $   0.75  $   0.93
   Income from
    discontinued
    operations, net        -         -         -      0.46      0.02
   Net income           0.77      0.78      0.57      1.21      0.95
Diluted earnings per
 common share:
   Income from
    continuing
    operations      $   0.76  $   0.76  $   0.55  $   0.73  $   0.91
   Income from
    discontinued
    operations, net        -         -         -      0.45      0.02
   Net income           0.76      0.76      0.55      1.18      0.93
 Dividends declared
  per common share  $   0.45  $   0.44  $   0.43  $   0.42  $   0.41
 Return on average
  assets(1)             0.90 %    0.95 %    0.69 %    1.54 %    1.21 %
 Return on average
  common equity(1)     12.71     13.03      9.63     20.85     16.83
 Efficiency
  ratio(2)(3)          63.18     62.19     68.77     63.34     65.51

ASSET QUALITY
 Nonaccrual
  loans(4)(5)       $  1,534  $  1,471  $  1,396  $  1,542  $  1,626
 Foreclosed
  assets(5)              261       281       286       307       311
 Total nonperforming
  assets(5)            1,795     1,752     1,682     1,849     1,937
 Nonperforming
  assets/total
  assets(5)             0.58 %    0.61 %    0.60 %    0.66 %    0.70 %
 Restructured
  loans(5)          $     34  $     38  $     79  $    107  $    111
 Total nonperforming
  assets and
  restructured
  loans(5)             1,829     1,790     1,761     1,956     2,048
 Allowance for loan
  and lease
  losses(5)            1,301     1,322     1,293     1,260     1,250
 Allowance as a
  percentage of
  total loans held
  in portfolio(5)       0.63 %    0.64 %    0.66 %    0.68 %    0.71 %
 Provision (reversal
  of reserve) for
  loan and lease
  losses            $     37  $     56  $     60  $     56  $   (202)
 Net charge-offs(5)       38        27        24        46        97

CAPITAL ADEQUACY(5)
 Stockholders'
  equity/total
  assets                6.89 %    7.21 %    7.31 %    7.26 %    7.17 %
 Tangible common
  equity(6)/total
  tangible assets(6)    5.05      5.26      5.32      5.21      5.26
 Estimated total
  risk-based
  capital/risk-
  weighted assets(7)   11.13     10.64     10.39     10.53     10.94

SUPPLEMENTAL DATA
 Average balance
  sheet:
    Total loans held
     for sale       $ 33,083  $ 28,220  $ 33,096  $ 24,464  $ 29,606
    Total loans held
     in portfolio    208,296   199,159   189,812   180,263   166,789
    Total interest-
     earning assets  266,375   252,235   251,264   239,979   241,718
    Total assets     297,158   283,669   283,940   271,406   277,440
    Total interest-
     bearing
     deposits        139,938   135,600   127,670   123,336   125,201
    Total
     noninterest-
     bearing
     deposits         33,935    33,266    37,136    30,618    33,485
    Total
     stockholders'
     equity           21,025    20,703    20,288    20,088    20,027
 Period-end balance
  sheet:
    Loans held for
     sale             42,743    29,184    27,795    34,207    20,837
    Loans held in
     portfolio, net
     of allowance
     for loan
      and lease
       losses        205,770   204,836   193,250   185,120   173,900
    Interest-earning
     assets(2)       273,174   255,742   245,752   249,617   236,175
    Total assets     307,918   288,828   278,544   280,768   275,178
    Interest-bearing
     deposits        140,878   136,445   129,123   125,267   123,213
    Noninterest-
     bearing
     deposits         32,780    32,250    33,343    35,714    29,968
    Total
     stockholders'
     equity           21,226    20,820    20,369    20,383    19,742


(1) Includes income from continuing and discontinued operations
    through the period ending March 31, 2004.

(2) Based on continuing operations.

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

(4) Excludes nonaccrual loans held for sale.

(5) As of quarter end.

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

(7) Estimate of what the total risk-based capital ratio would be if
    Washington Mutual, Inc. were a bank holding company that is
    subject to Federal Reserve Board capital Requirement.



WM-8


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



                                                   Quarter Ended
----------------------------------------------------------------------
                                                   Dec. 31, 2004
                                             -------------------------
                                                              Interest
                                                               Income/
                                              Balance   Rate   Expense
----------------------------------------------------------------------
Average Balances and
 Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and securities purchased
    under agreements to resell               $    560   1.92% $    3
   Available-for-sale securities(1):
      Mortgage-backed securities               11,398   3.85     110
      Investment securities                     4,387   4.27      47
   Loans held for sale(2)                      33,083   4.74     393
   Loans held in portfolio(2):
      Loans secured by real estate:
         Home                                 113,352   4.30   1,218
         Purchased subprime                    17,389   4.87     212
------------------------------------------------------        -------
                Total home loans              130,741   4.37   1,430
         Home equity loans and lines
          of credit                            42,034   4.93     520
         Home construction(3)                   2,434   5.87      36
         Multi-family                          21,922   4.92     270
         Other real estate                      6,133   6.03      93
------------------------------------------------------        -------
                Total loans secured by real
                 estate                       203,264   4.62   2,349
      Consumer                                    813  10.20      21
      Commercial business                       4,219   4.78      51
------------------------------------------------------        -------
                Total loans held in portfolio 208,296   4.64   2,421
   Other                                        8,651   4.28      92
------------------------------------------------------        -------
                Total interest-earning assets 266,375   4.59   3,066
Noninterest-earning assets:
   Mortgage servicing rights                    5,928
   Goodwill                                     6,196
   Other(4)                                    18,659
------------------------------------------------------
         Total assets                        $297,158
======================================================
Liabilities

Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits     $ 52,171   1.32     173
      Savings and money market deposits        44,017   1.36     151
      Time deposits                            43,750   2.53     280
------------------------------------------------------        -------
                Total interest-bearing
                 deposits                     139,938   1.71     604
   Federal funds purchased and
    commercial paper                            4,828   1.98      24
   Securities sold under agreements to
    repurchase                                 13,528   2.09      72
   Advances from Federal Home Loan Banks       63,053   2.34     376
   Other                                       15,164   3.70     140
------------------------------------------------------        -------
                Total interest-bearing
                 liabilities                  236,511   2.03   1,216
Noninterest-bearing sources:
   Noninterest-bearing deposits                33,935
   Other liabilities(5)                         5,687
   Stockholders' equity                        21,025
------------------------------------------------------
         Total liabilities and stockholders'
          equity                             $297,158
======================================================
   Net interest spread and net interest income          2.56  $1,850
                                                              =======
   Impact of noninterest-bearing sources                0.23
   Net interest margin                                  2.79

                                       Quarter Ended
----------------------------------------------------------------------
                          Sept. 30, 2004           Dec. 31, 2003
                     ------------------------ ------------------------
                                     Interest                Interest
                                      Income/                 Income/
                      Balance   Rate  Expense Balance  Rate   Expense
----------------------------------------------------------------------
Average Balances and
 Weighted Average Interest
 Rates
Assets
Interest-earning assets:
  Federal funds sold and
   securities purchased under
   agreements to
   resell            $    922   1.44% $    3  $    414  2.26%  $    2
  Available-for-sale
   securities(1):
    Mortgage-backed
     securities         9,726   3.85      94    12,584  4.14      130
    Investment
     securities         7,597   3.62      69    27,386  3.24      223
  Loans held for
   sale(2)             28,220   4.83     341    29,606  5.95      441
  Loans held in
   portfolio(2):
    Loans secured by
     real estate:
      Home            108,594   4.19   1,137    94,713  4.41    1,045
      Purchased
       subprime        16,279   4.57     186    11,799  5.05      149
------------------------------        ------- ---------       --------
       Total home
        loans         124,873   4.24   1,323   106,512  4.48    1,194
      Home equity loans
       and lines of
       credit          38,329   4.55     438    25,850  4.71      306
      Home
       construction(3)  2,693   5.41      36     2,160  5.61       31
      Multi-family     21,240   4.90     260    20,177  5.07      256
      Other real estate 6,364   5.78      93     6,941  6.39      111
------------------------------        -----------------       --------
       Total loans
        secured by
        real estate   193,499   4.44   2,150   161,640  4.69    1,898
  Consumer                860  10.17      22     1,066  9.02       24
  Commercial business   4,800   4.43      54     4,083  4.32       45
------------------------------        ------- ---------       --------
       Total loans
        held in
        portfolio     199,159   4.46   2,226   166,789  4.71    1,967
  Other                 6,611   4.70      78     4,939  2.87       36
------------------------------        ------- ---------       --------
       Total
        interest-earning
        assets        252,235   4.45   2,811   241,718  4.62    2,799
Noninterest-earning assets:
  Mortgage servicing
   rights               6,698                    6,408
  Goodwill              6,196                    6,196
  Other(4)             18,540                   23,118
------------------------------                ---------
       Total assets  $283,669                 $277,440
==============================                =========
Liabilities

Interest-bearing liabilities:
  Deposits:
    Interest-bearing
     checking
     deposits        $ 54,377   1.25     172  $ 67,896  1.44      247
    Savings and
     money market
     deposits          43,278   1.27     138    27,550  0.82       56
    Time deposits      37,945   2.40     229    29,755  2.50      188
------------------------------        ------- ---------       --------
       Total
        interest-bearing
        deposits      135,600   1.58     539   125,201  1.56      491
  Federal funds purchased
   and commercial paper 2,733   1.54      10     3,872  1.08       11
  Securities sold under
   agreements to
   repurchase          14,213   2.75     100    27,394  2.17      152
  Advances from
   Federal Home Loan
    Banks              59,227   2.02     306    44,837  2.47      283
  Other                12,922   3.62     116    13,675  3.51      119
------------------------------        ------- ---------       --------
       Total
        interest-bearing
        liabilities   224,695   1.89   1,071   214,979  1.94    1,056
Noninterest-bearing
 sources:
  Noninterest-bearing
   deposits            33,266                   33,485
  Other liabilities(5)  5,005                    8,949
  Stockholders'
   equity              20,703                   20,027
------------------------------                ---------
    Total liabilities
     and stockholders'
     equity          $283,669                 $277,440
==============================                =========
  Net interest spread
   and net interest
   income                        2.56 $1,740            2.68   $1,743
                                      =======                 ========
  Impact of
   noninterest-bearing
   sources                       0.21                   0.22
  Net interest margin            2.77                   2.90
---------------------

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

(2) Nonaccrual loans are included in the average loan amounts
    outstanding.

(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 assets of continuing and discontinued operations for the
    three months ended December 31, 2003.

(5) Includes liabilities of continuing and discontinued operations for
    the three months ended December 31, 2003.


WM-9

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



                                           Year Ended
----------------------------------------------------------------------
                               Dec. 31, 2004         Dec. 31, 2003
                           --------------------  ---------------------
                                        Interest              Interest
                                         Income/               Income/
                           Balance Rate  Expense Balance Rate  Expense
------------------------------------------------ ---------------------
Average Balances and
 Weighted Average Interest Rates
Assets
Interest-earning assets:
  Federal funds
   sold and securities
   purchased under
   agreements to
   resell              $    884   1.42%  $  13  $  2,570  1.45%  $  37
  Available-for-sale
    securities(1):
     Mortgage-backed
      securities         10,255   3.99     409    20,977  4.91   1,030
     Investment
      securities         10,732   3.30     355    18,742  3.77     708
  Loans held for sale(2) 29,721   4.95   1,472    45,438  5.51   2,501
  Loans held in
   portfolio(2):
     Loans secured by
      real estate:
       Home             107,518   4.21   4,529    86,443  4.77   4,124
       Purchased
        subprime         15,767   4.84     763    10,794  5.43     586
-------------------------------        ------- ---------       -------
          Total home
           loans        123,285   4.29   5,292    97,237  4.84   4,710
       Home equity loans
        and lines of
        credit           35,859   4.69   1,683    21,163  4.98   1,053
       Home
        construction(3)   2,489   5.50     137     2,062  5.90     122
       Multi-family      21,090   4.96   1,046    19,409  5.30   1,029
       Other real estate  6,396   5.94     380     7,243  6.35     460
-------------------------------        ------- ---------       -------
          Total loans
           secured by
           real estate  189,119   4.51   8,538   147,114  5.01   7,374
      Consumer              899  10.11      91     1,208  8.87     107
      Commercial business 4,415   4.43     196     4,165  4.49     187
-------------------------------        ------- ---------       -------
          Total loans
           held in
           portfolio    194,433   4.54   8,825   152,487  5.03   7,668
  Other                   6,476   4.27     276     5,109  4.27     219
-------------------------------        ------- ---------       -------
          Total
           interest-earning
           assets       252,501   4.50  11,350   245,323  4.96  12,163
Noninterest-earning
 assets:
  Mortgage servicing
   rights                 6,406                    5,721
  Goodwill                6,196                    6,198
  Other(4)               18,975                   25,877
-------------------------------                ---------
       Total assets    $284,078                 $283,119
===============================                =========
Liabilities

Interest-bearing liabilities:
  Deposits:
     Interest-bearing
       checking
       deposits        $ 59,826   1.28     766  $ 62,723  1.69   1,057
     Savings and
      money market
      deposits           35,927   1.11     399    28,085  0.94     263
     Time deposits       35,917   2.44     878    31,416  2.69     845
-------------------------------        ------- ---------       -------
          Total
           interest-bearing
           deposits     131,670   1.55   2,043   122,224  1.77   2,165
  Federal funds
   purchased and
   commercial paper       3,522   1.50      53     3,158  1.18      37
  Securities sold
   under agreements
   to repurchase         16,660   2.26     377    22,318  2.44     545
  Advances from
   Federal Home Loan
   Banks                 58,622   2.16   1,268    49,441  2.62   1,296
  Other                  13,724   3.59     493    13,315  3.68     491
-------------------------------        ------- ---------       -------
          Total
           interest-bearing
           liabilities  224,198   1.89   4,234   210,456  2.15   4,534
Noninterest-bearing
 sources:
   Noninterest-bearing
    deposits             33,738                   41,361
   Other
    liabilities(5)        5,614                   10,724
   Stockholders'
    equity               20,528                   20,578
-------------------------------                ---------
          Total
           liabilities and
           stockholders'
           equity      $284,078                 $283,119
===============================                =========
  Net interest spread
   and net interest
   income                          2.61 $7,116            2.81  $7,629
                                        ======                  ======
  Impact of
   noninterest-bearing
   sources                         0.21                    0.30
  Net interest margin              2.82                    3.11
----------------------

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

(2) Nonaccrual loans are included in the average loan amounts
    outstanding.

(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 assets of continuing and discontinued operations for the
    twelve months ended December 31, 2003.

(5) Includes liabilities of continuing and discontinued operations for
    the twelve months ended December 31, 2003.


WM-10

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


                                     Dec. 31,    Sept. 30,   June 30,
                                       2004        2004        2004
----------------------------------------------------------------------
Deposits
   Retail deposits:
      Checking deposits:
         Noninterest bearing        $ 17,463    $ 16,178    $ 15,666
         Interest bearing             51,099      52,378      59,395
----------------------------------------------------------------------
          Total checking deposits     68,562      68,556      75,061
      Savings and money market
       deposits                       36,836      38,620      30,413
      Time deposits(1)                27,268      24,825      23,990
----------------------------------------------------------------------
          Total retail deposits      132,666     132,001     129,464
      Commercial business deposits     7,611       7,369       7,176
      Wholesale deposits              18,448      14,052       8,874
      Custodial and escrow
       deposits(2)                    14,933      15,273      16,952
----------------------------------------------------------------------
          Total deposits            $173,658    $168,695    $162,466
======================================================================

(1) Weighted average remaining maturity of time deposits was 16 months
    at December 31, 2004, September 30, 2004, June 30, 2004 and March
    31, 2004, and 14 months at December 31, 2003.

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

                                   Dec. 31,   Sept. 30,    June 30,
                                     2004        2004        2004
----------------------------------------------------------------------
Transaction Accounts(1)
Accounts,
beginning of period               13,905,707  13,579,961  13,193,298
     Net accounts opened during
      the quarter                    186,027     325,746     386,663
----------------------------------------------------------------------
Accounts, end of period           14,091,734  13,905,707  13,579,961
======================================================================

(1) Transaction accounts include retail checking, small business
    checking, retail savings and small business savings. The
    information provided refers to the number of accounts.

                                     Dec. 31,   Sept. 30,    June 30,
                                       2004        2004        2004
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of period            1,872       1,816       1,755
   Net stores opened during the quarter   67          56          61
----------------------------------------------------------------------
Stores, end of period                  1,939       1,872       1,816
======================================================================

(1) The Company consolidated 79 grocery store locations into larger,
    existing, retail banking stores.

                                     Dec. 31,   Sept. 30,    June 30,
                                       2004        2004        2004
----------------------------------------------------------------------
Assets Under Management             $ 22,196    $ 20,617    $ 20,106
======================================================================

                                              Mar. 31,      Dec. 31,
                                                2004          2003
----------------------------------------------------------------------
Deposits
   Retail deposits:
      Checking deposits:
         Noninterest bearing                   $ 15,107      $ 13,724
         Interest bearing                        66,618        67,990
----------------------------------------------------------------------
          Total checking deposits                81,725        81,714
      Savings and money market deposits          22,452        22,131
      Time deposits(1)                           24,128        24,605
----------------------------------------------------------------------
          Total retail deposits                 128,305       128,450
      Commercial business deposits                6,426         6,433
      Wholesale deposits                          6,219         2,579
      Custodial and escrow deposits(2)           20,031        15,719
----------------------------------------------------------------------
          Total deposits                       $160,981      $153,181
======================================================================

(1) Weighted average remaining maturity of time deposits was 16 months
    at December 31, 2004, September 30, 2004, June 30, 2004 and March
    31, 2004, and 14 months at December 31, 2003.

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

                                               Mar. 31,      Dec. 31,
                                                 2004          2003
----------------------------------------------------------------------
Transaction Accounts(1)
Accounts, beginning of period                12,794,902    12,507,374
  Net accounts opened during the quarter        398,396       287,528
----------------------------------------------------------------------
Accounts, end of period                      13,193,298    12,794,902
======================================================================

(1) Transaction accounts include retail checking, small business
    checking, retail savings and small business savings. The
    information provided refers to the number of accounts.

                                                Mar. 31,      Dec. 31,
                                                  2004          2003
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of period                       1,776         1,677
   Net stores opened during the quarter             (21)(1)        99
----------------------------------------------------------------------
Stores, end of period                             1,755         1,776
======================================================================

(1) The Company consolidated 79 grocery store locations into larger,
    existing, retail banking stores.

                                                Mar. 31,      Dec. 31,
                                                  2004          2003
----------------------------------------------------------------------
Assets Under Management                        $ 19,438      $ 17,868
======================================================================


WM-11

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

                                           Quarter Ended
----------------------------------------------------------------------
                                 Dec.   Sept.    June    Mar.    Dec.
                                  31,     30,     30,     31,     31,
                                 2004    2004    2004    2004    2003
----------------------------------------------------------------------
Loan Volume
   Home loans:
      Adjustable rate         $26,141 $25,589 $29,753 $21,822 $23,397
      Fixed rate               15,448  14,635  26,076  21,564  28,105
      Specialty mortgage
       finance(1)               9,362   7,536   7,323   7,113   6,031
----------------------------------------------------------------------
         Total home loan
          volume               50,951  47,760  63,152  50,499  57,533
   Home equity loans and lines
    of credit                   9,307  10,527  11,572   8,416   7,922
   Home construction(2)           293     640     839     609   1,013
   Multi-family                 2,240   2,050   2,346   1,525   1,647
   Other real estate              257     352     760     370     655
----------------------------------------------------------------------
         Total loans secured
          by real estate       63,048  61,329  78,669  61,419  68,770
   Consumer                        77     138      63      58      72
   Commercial business             96     358     789     688   1,061
----------------------------------------------------------------------
         Total loan volume    $63,221 $61,825 $79,521 $62,165 $69,903
======================================================================
Loan Volume by Channel
   Retail                     $28,766 $30,285 $37,720 $28,126 $31,630
   Wholesale                   18,441  16,079  19,534  15,419  16,334
   Purchased/correspondent     16,014  15,461  22,267  18,620  21,939
----------------------------------------------------------------------
         Total loan volume by
          channel             $63,221 $61,825 $79,521 $62,165 $69,903
======================================================================
Refinancing Activity(3)
   Home loan refinancing      $30,752 $23,834 $40,201 $33,233 $36,817
   Home equity loans and lines
    of credit and consumer        336     360   1,147   1,107     848
   Home construction(2)            13       9      13      12       6
   Multi-family and other real
    estate                        565     621     883     575     690
----------------------------------------------------------------------
         Total refinancing    $31,666 $24,824 $42,244 $34,927 $38,361
======================================================================
Home Loan Volume by Index
   Short-term adjustable-rate
    loans(4):
      Treasury indices        $18,967 $18,883 $16,467 $13,440 $13,021
      COFI                        846     145     167     110     151
      Other                        57      45     812     218     628
----------------------------------------------------------------------
         Total short-term
          adjustable-rate
          loans                19,870  19,073  17,446  13,768  13,800
   Medium-term adjustable-rate
    loans(5)                   14,890  12,866  17,536  12,814  13,667
   Fixed-rate loans            16,191  15,821  28,170  23,917  30,066
----------------------------------------------------------------------
     Total home loan volume   $50,951 $47,760 $63,152 $50,499 $57,533
======================================================================

Note:  Pursuant to regulatory guidance issued in December 2003,
buyouts of delinquent mortgages contained within Government National
Mortgage Association (GNMA) loan servicing pools must be classified
as loans on the balance sheet.  Accordingly, total home loan volume
includes GNMA pool buy-out volume of  $785 million, $898 million,
$689 million, $1.05 billion and $1.30 billion for the quarters ended
December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004
and December 31, 2003.


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

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

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

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

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


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

                                                       Year Ended
----------------------------------------------------------------------
                                                   Dec. 31,  Dec. 31,
                                                     2004      2003
----------------------------------------------------------------------
Loan Volume
 Home loans:
  Adjustable rate                                  $103,305  $ 99,899
  Fixed rate                                         77,723   263,604
  Specialty mortgage finance(1)                      31,334    20,678
----------------------------------------------------------------------
   Total home loan volume                           212,362   384,181
 Home equity loans and lines of credit               39,822    29,639
 Home construction(2)                                 2,382     3,682
 Multi-family                                         8,161     8,065
 Other real estate                                    1,740     1,969
----------------------------------------------------------------------
   Total loans secured by real estate               264,467   427,536
 Consumer                                               336       339
 Commercial business                                  1,930     4,370
----------------------------------------------------------------------
   Total loan volume                               $266,733  $432,245
======================================================================
Loan Volume by Channel
 Retail                                            $124,897  $169,546
 Wholesale                                           69,474    95,671
 Purchased/correspondent                             72,362   167,028
----------------------------------------------------------------------
   Total loan volume by channel                    $266,733  $432,245
======================================================================
Refinancing Activity(3)
 Home loan refinancing                             $128,020  $297,983
 Home equity loans and lines of credit and
  consumer                                            2,950     4,775
 Home construction(2)                                    47        47
 Multi-family and other real estate                   2,644     3,453
----------------------------------------------------------------------
   Total refinancing                               $133,661  $306,258
======================================================================
Home Loan Volume by Index
 Short-term adjustable-rate loans(4):
  Treasury indices                                 $ 67,756  $ 30,147
  COFI                                                1,268       722
  Other                                               1,132     1,404
----------------------------------------------------------------------
   Total short-term adjustable-rate loans            70,156    32,273
 Medium-term adjustable-rate loans(5)                58,107    81,404
 Fixed-rate loans                                    84,099   270,504
----------------------------------------------------------------------
    Total home loan volume                         $212,362  $384,181
======================================================================
Note: Pursuant to regulatory guidance issued in December 2003,
      buyouts of delinquent mortgages contained within Government
      National Mortgage Association (GNMA) loan servicing pools must
      be classified as loans on the balance sheet.  Accordingly, total
      home loan volume includes GNMA pool buy-out volume of $3.42
      billion and $6.94 billion for the years ended December 31, 2004
      and December 31, 2003.

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

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

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

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

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



WM-13
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                              Change from
                             Sept. 30, 2004     Dec. 31,     Sept. 30,
                             to Dec. 31, 2004     2004         2004
----------------------------------------------------------------------
Loans by Property Type
 Loans held in portfolio:
  Loans secured by real
   estate:
   Home                           $ (2,239)    $109,991      $112,230
   Purchased subprime                1,838       19,143        17,305
----------------------------------------------------------------------
    Total home loans                  (401)     129,134       129,535

   Home equity loans and
    lines of credit                  3,145       43,650        40,505
   Home construction(1)               (388)       2,344         2,732
   Multi-family                        642       22,282        21,640
   Other real estate                  (604)       5,664         6,268
----------------------------------------------------------------------
      Total loans secured
       by real estate                2,394      203,074       200,680
  Consumer                             (39)         792           831
  Commercial business               (1,442)       3,205         4,647
----------------------------------------------------------------------
      Total loans held in
       portfolio                       913      207,071       206,158
 Less: allowance for loan
  and lease losses                      21       (1,301)       (1,322)
----------------------------------------------------------------------
      Total net loans
       held in portfolio               934      205,770       204,836
 Loans held for sale(2)             13,559       42,743        29,184
======================================================================
      Total net loans             $ 14,493    $ 248,513     $ 234,020


                                   June 30,    Mar. 31,    Dec. 31,
                                      2004        2004        2003
----------------------------------------------------------------------
Loans by Property Type
 Loans held in portfolio:
  Loans secured by real
   estate:
   Home                           $106,312     $104,946      $100,043
   Purchased subprime               16,217       15,437        12,973
----------------------------------------------------------------------
    Total home loans               122,529      120,383       113,016
   Home equity loans and
    lines of credit                 36,077       31,264        27,647
   Home construction(1)              2,605        2,370         2,220
   Multi-family                     21,156       20,579        20,324
   Other real estate                 6,513        6,508         6,649
----------------------------------------------------------------------
      Total loans secured
       by real estate              188,880      181,104       169,856
  Consumer                             892          954         1,028
  Commercial business                4,771        4,322         4,266
----------------------------------------------------------------------
      Total loans held in
       portfolio                   194,543      186,380       175,150
 Less: allowance for loan
  and lease losses                  (1,293)      (1,260)       (1,250)
----------------------------------------------------------------------
      Total net loans
       held in portfolio           193,250      185,120       173,900
 Loans held for sale(2)             27,795       34,207        20,837
----------------------------------------------------------------------
      Total net loans             $221,045     $219,327      $194,737
======================================================================

(1) 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.

(2) Fair value of loans held for sale was $43.02 billion, $29.32
    billion, $27.92 billion, $34.36 billion and $20.84 billion as of
    December 31, 2004, September 30, 2004,  June 30, 2004, March 31,
    2004 and December 31, 2003.



WM-14

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


                                      Change
                                      from
                                      Sept.
                                      30,
                                      2004            Weighted
                                      to Dec.  Dec.   Average   Sept.
                                      31,      31,    Coupon    30,
                                      2004     2004   Rate      2004
----------------------------------------------------------------------
Loans Secured by Real Estate and MBS
   Selected loans held in portfolio
    secured by real estate(1):
    Short-term adjustable-rate
     loans(2):
      COFI                             $(668)  $7,636   4.91%  $8,304
      Treasury indices                 1,075   73,140   4.25   72,065
      Other                            3,104   41,686   5.42   38,582
----------------------------------------------------------------------
      Total short-term adjustable-
       rate loans                      3,511  122,462   4.69  118,951
    Medium-term adjustable-rate
     loans(3)                            182   52,578   5.40   52,396
    Fixed-rate loans                    (307)  20,026   6.56   20,333
----------------------------------------------------------------------
      Total loans held in portfolio
       secured by real estate(4)       3,386  195,066   5.07  191,680
Loans held for sale(5)                13,538   42,599   4.70   29,061
----------------------------------------------------------------------
    Total loans secured by real
     estate                           16,924  237,665   5.01  220,741
MBS(6):
  Short-term adjustable-rate MBS(2):
    COFI                                (444)   3,673   3.72    4,117
    Treasury indices                   1,033    5,583   3.15    4,550
    Other                                660      668   5.04        8
----------------------------------------------------------------------
      Total short-term adjustable-
       rate MBS                        1,249    9,924   3.49    8,675
  Medium-term adjustable-rate MBS(3)     453      702   4.25      249
  Fixed-rate MBS                       3,148    3,928   5.32      780
----------------------------------------------------------------------
     Total MBS(7)                      4,850   14,554   4.02    9,704
----------------------------------------------------------------------
     Total loans secured by real
      estate and MBS                 $21,774 $252,219   4.95 $230,445
======================================================================



                                                Weighted      Weighted
                                                Average  Dec. Average
                                                Coupon   31,  Coupon
                                                Rate     2003 Rate
----------------------------------------------------------------------
Loans Secured by Real Estate and MBS
   Selected loans held in portfolio secured
    by real estate(1):
    Short-term adjustable-rate loans(2):
      COFI                                      4.81% $10,766    4.93%
      Treasury indices                          3.97   51,494    3.66
      Other                                     4.97   26,867    4.81
----------------------------------------------------------------------
      Total short-term adjustable-rate loans    4.35   89,127    4.16
    Medium-term adjustable-rate loans(3)        5.39   53,576    5.56
    Fixed-rate loans                            6.61   18,284    6.91
----------------------------------------------------------------------
      Total loans held in portfolio secured
       by real estate(4)                        4.87  160,987    4.94
Loans held for sale(5)                          4.87   20,705    6.41
----------------------------------------------------------------------
    Total loans secured by real estate          4.87  181,692    5.10
MBS(6):
  Short-term adjustable-rate MBS(2):
    COFI                                        3.74    5,270    3.87
    Treasury indices                            2.89    3,401    2.94
    Other                                       3.42        9    3.15
----------------------------------------------------------------------
      Total short-term adjustable-rate MBS      3.30    8,680    3.50
  Medium-term adjustable-rate MBS(3)            3.22        -       -
  Fixed-rate MBS                                6.47    1,496    6.35
----------------------------------------------------------------------
     Total MBS(7)                               3.55   10,176    3.92
----------------------------------------------------------------------
     Total loans secured by real estate and
      MBS                                       4.82 $191,868    5.04
======================================================================

(1) Includes total home loans, home equity loans and lines of credit
    and multi-family loans.

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

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

(4) At December 31, 2004, September 30, 2004 and December 31, 2003,
    the adjustable-rate loans with lifetime caps were $171.4 billion,
    $167.6 billion and $138.58 billion with a lifetime weighted
    average cap rate of 12.31%, 12.24% and 12.21%.

(5) Excludes student loans.

(6) Excludes principal-only strips and interest-only strips.

(7) At December 31, 2004, September 30, 2004 and December 31, 2003,
    the adjustable-rate MBS with lifetime caps were $10.58 billion,
    $8.87 billion and $8.12 billion with a lifetime weighted average
    cap rate of 10.23%, 10.55% and 11.32%.


                                                  Sept. 30,   Dec. 31,
                                                  2004 to     2003 to
                                                  Dec. 31,    Dec. 31,
                                                   2004        2004
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
    Balance, beginning of period                   $29,184    $20,837
        Loans originated, purchased and
         transferred from held in portfolio         40,892    153,635
        Loans sold, transferred to held in
         portfolio and other                       (27,333)  (131,729)
----------------------------------------------------------------------
    Balance, end of period                         $42,743    $42,743
======================================================================

Rollforward of Loans Held in Portfolio
    Balance, beginning of period                  $206,158   $175,150
        Loans originated, purchased and
         transferred from held for sale             28,282    120,961
        Loan payments, transferred to held for
         sale and other                            (27,369)   (89,040)
----------------------------------------------------------------------
    Balance, end of period                        $207,071   $207,071
======================================================================



WM-15

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

                                               Quarter Ended
----------------------------------------------------------------------
                                        Dec. Sept.  June   Mar.   Dec.
                                         31,   30,   30,    31,    31,
                                        2004  2004  2004   2004   2003
----------------------------------------------------------------------
Home Loan Mortgage Banking Income
 (Expense)
   Loan servicing fees                  $481 $482  $485   $502   $524
   Amortization of mortgage servicing
    rights                              (636)(589) (546)  (750)  (604)
   Net mortgage servicing rights
    valuation adjustments(1)             257  165   (51)  (606)   615
   Other, net                            (62) (62)  (89)   (66)   (75)
----------------------------------------------------------------------
        Net home loan servicing income
         (expense)                        40   (4) (201)  (920)   460
   Revaluation gain (loss) from
    derivatives:
       Mortgage servicing rights risk
        management(2)                     14  130  (322) 1,108   (314)
       Loans held for sale risk
        management                        28  (23)  142    (66)     8
----------------------------------------------------------------------
             Total revaluation gain
              (loss) from derivatives     42  107  (180) 1,042   (306)
   Net settlement income from certain
    interest-rate swaps                   53  126   192    167    190
   Gain from mortgage loans(3)           155  210   113    171     63
   Loan related income                    60   65    76     71    124
   Gain from sale of originated
    mortgage-backed securities             2    -     -      -     61
----------------------------------------------------------------------
        Total home loan mortgage banking
         income                          352  504     -    531    592
----------------------------------------------------------------------
   Impact of other mortgage servicing rights risk
    management instruments(4):
       Gain (loss) from certain
        available-for-sale securities     (4)   -     -      5    (11)
       Revaluation gain from principal-
        only mortgage-backed trading
        securities                        36   45     -      -      -
----------------------------------------------------------------------
         Total home loan mortgage banking
          income, net of other mortgage
          servicing rights risk
          management instruments        $384 $549    $-   $536   $581
======================================================================



                                                         Year Ended
----------------------------------------------------------------------
                                                         Dec.   Dec.
                                                          31,    31,
                                                         2004   2003
----------------------------------------------------------------------
Home Loan Mortgage Banking Income (Expense)
   Loan servicing fees                                  $1,950 $2,273
   Amortization of mortgage servicing rights            (2,521)(3,269)
   Net mortgage servicing rights valuation
    adjustments(1)                                        (235)   712
   Other, net                                             (279)  (592)
----------------------------------------------------------------------
        Net home loan servicing expense                 (1,085)  (876)
   Revaluation gain (loss) from derivatives:
       Mortgage servicing rights risk management(2)        931    526
       Loans held for sale risk management                  80   (188)
----------------------------------------------------------------------
             Total revaluation gain from derivatives     1,011    338
   Net settlement income from certain interest-rate
    swaps                                                  538    543
   Gain from mortgage loans(3)                             649  1,250
   Loan related income                                     272    399
   Gain from sale of originated mortgage-backed
    securities                                               2    320
----------------------------------------------------------------------
        Total home loan mortgage banking income          1,387  1,974
----------------------------------------------------------------------
   Impact of other mortgage servicing rights risk
    management instruments(4):
       Gain from certain available-for-sale securities       1    305
       Revaluation gain from principal-only mortgage-
        backed trading securities                           81      -
----------------------------------------------------------------------
         Total home loan mortgage banking income, net of
          other mortgage servicing rights risk
          management instruments                        $1,469 $2,279
======================================================================

(1) Represents fair value hedge ineffectiveness as well as any
    impairment/reversal recognized on MSR accounted for under the
    lower of cost or market value methodology. The Company
    prospectively applied fair value hedge accounting treatment, as
    prescribed by Statement of Financial Accounting Standards No. 133,
    to most of its MSR on April 1, 2004.

(2) Represents the change in fair value from certain derivatives that
    economically hedge the MSR.

(3) Gain from mortgage loans net of loans held for sale hedging and
    risk management instruments was a net gain of $180 million for the
    quarter ended December 31, 2004, compared with a net gain of $187
    million for the quarter ended September 30, 2004, a net gain of
    $252 million for the quarter ended June 30, 2004, a net gain of
    $112 million for the quarter ended March 31, 2004, and a net gain
    of $91 million for the quarter ended December 31, 2003. Gain from
    mortgage loans net of loans held for sale hedging and risk
    management instruments was a net gain of $729 million for the year
    ended December 31, 2004, compared with a net gain of $1.09 billion
    for the year ended December 31, 2003.

(4) Includes only instruments designated for mortgage servicing rights
    risk management and does not include the effects of instruments
    held for asset/liability risk management.



WM-16

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




                                   Quarter Ended         Year Ended
----------------------------------------------------------------------
                               Dec.   Sept.     June    Mar.     Dec.
                                31,     30,      30,     31,      31,
                               2004    2004     2004    2004     2004
------------------------------ ------ ------- -------- ------- -------
Mortgage Servicing Rights
 ("MSR") Performance
  Statement No. 133 MSR
   accounting valuation
   adjustments                $(123) $ (885) $ 1,707  $    -  $   699
  Statement No. 133 fair
   value hedging adjustments    201   1,316   (1,985)      -     (468)
------------------------------ ------ ------- -------- ------- -------
    Statement No. 133
     ineffectiveness             78     431     (278)      -      231
  Change in value of MSR
   accounted for under lower
   of aggregate cost or
   market value methodology     179    (266)     227    (606)    (466)
------------------------------ ------ ------- -------- ------- -------
     Net mortgage servicing
      rights valuation
      adjustments(1)            257     165      (51)   (606)    (235)
  Amortization of mortgage
   servicing rights            (636)   (589)    (546)   (750)  (2,521)
  MSR risk management:
   Revaluation gain (loss)
    from derivatives             14     130     (322)  1,108      931
   Net settlement income
    from certain interest-
    rate swaps                   56     126      195     160      538
   Gain (loss) from certain
    available-for-sale
    securities                   (4)      -        -       5        1
   Revaluation gain from
    principal-only
    mortgage-backed
    trading securities           36      45        -       -       81
------------------------------ ------ ------- -------- ------- -------
      Net MSR valuation
       less hedging
       expense                $(277) $ (123) $  (724) $  (83) $(1,205)
============================== ====== ======= ======== ======= =======

(1)  Represents fair value hedge ineffectiveness as well as any
     impairment/reversal recognized on MSR accounted for under the
     lower of cost or market value methodology. The Company began
     applying fair value hedge accounting treatment, as prescribed by
     Statement No. 133, to most of its MSR on a prospective basis as
     of April 1, 2004.



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



                                     Quarter Ended
-------------------------------------------------------------------
                       Dec. 31, Sept. 30,  June 30,  Mar. 31, Dec. 31,
                         2004      2004      2004      2004      2003
--------------------- --------- --------- --------- --------- --------
Rollforward of
 Mortgage Servicing
 Rights ("MSR")(1)
   Balance,
    beginning of
    period           $  6,112  $  7,501  $  5,239  $  6,354  $  5,870
      Home loans:
       Additions          372       348       874       241       701
       Amortization      (636)     (589)     (546)     (750)     (604)
       (Impairment)
        reversal          179      (266)      227      (606)      615
       Statement No.
        133 MSR
        accounting
        valuation
        adjustments      (123)     (885)    1,707         -         -
       Sales                -         -         -         -      (231)
      Net change in
       commercial
       real estate
       MSR                  2         3         -         -         3
--------------------- --------- --------- --------- --------- --------
   Balance, end of
    period(2)        $  5,906  $  6,112  $  7,501  $  5,239  $  6,354
===================== ========= ========= ========= ========= ========
Rollforward of
 Valuation Allowance
 for MSR Impairment
   Balance,
    beginning of
    period           $  2,653  $  2,417  $  3,035  $  2,435  $  3,075
     Impairment
      (reversal)         (179)      266      (227)      606      (615)
     Other-than-
      temporary
      impairment         (486)      (22)     (388)        -         -
     Sales                  -         -         -         -       (25)
     Other                 (7)       (8)       (3)       (6)        -
--------------------- --------- --------- --------- --------- --------
   Balance, end of
    period           $  1,981  $  2,653  $  2,417  $  3,035  $  2,435
===================== ========= ========= ========= ========= ========
Rollforward of Loans
 Serviced for Others
   Balance,
    beginning of
    period           $551,245  $558,388  $559,807  $582,669  $577,822
     Home loans:
      Additions        27,218    29,699    54,201    22,009    51,480
      Sales                 -         -         -         -      (195)
      Loan payments
       and other      (38,529)  (37,035)  (56,388)  (46,058)  (47,062)
     Net change in
      commercial real
      estate loans
      serviced for
      others              458       193       768     1,187       624
--------------------- --------- --------- --------- --------- --------
   Balance, end of
    period           $540,392  $551,245  $558,388  $559,807  $582,669
===================== ========= ========= ========= ========= ========

                      Dec. 31, Sept. 30,  June 30,  Mar. 31,  Dec. 31,
                         2004      2004      2004      2004      2003
--------------------- --------- --------- --------- --------- --------
Total Servicing
 Portfolio
    Loans serviced
     for others      $540,392  $551,245  $558,388  $559,807  $582,669
    Servicing on
     retained MBS
     without MSR        1,808     2,713     2,938     3,208     3,455
    Servicing on
     owned loans      229,879   217,592   205,714   204,449   182,604
    Subservicing
     portfolio            461       502       563     1,528     1,852
--------------------- --------- --------- --------- --------- --------
   Total servicing
   portfolio         $772,540  $772,052  $767,603  $768,992  $770,580
===================== ========= ========= ========= ========= ========

                                                     December 31, 2004
----------------------------------------------------------------------
                                                   Unpaid    Weighted
                                                  Principal  Average
                                                   Balance  Servicing
                                                                Fee
----------------------------------------------------------------------
                                                            (in basis
                                                              points,
Loans Serviced for Others by Loan Type                     annualized)
   Government                                     $ 54,009     48
   Agency                                          347,605     30
   Private                                         120,868     36
   Specialty home loans                             17,910     50
-------------------------------------------------- -------------------
  Total loans serviced for others(3)              $540,392     34
================================================== ===================

(1) Net of valuation allowance.

(2) At December 31, 2004, the aggregate MSR fair value was $5.91
    billion.

(3) Weighted average coupon rate (annualized) was 5.86% at December
    31, 2004.



WM-18

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



                                           Quarter Ended
----------------------------------------------------------------------
                                Dec.   Sept.    June    Mar.    Dec.
                                  31,     30,     30,     31,     31,
                                2004    2004    2004    2004    2003
------------------------------ ------- ------- ------- ------- -------
Allowance for Loan and Lease
 Losses
  Balance, beginning of
   quarter                    $1,322  $1,293  $1,260  $1,250  $1,549
  Other                          (20)      -      (3)      -       -
  Provision (reversal of
   reserve) for loan and
   lease losses                   37      56      60      56    (202)
------------------------------ ------- ------- ------- ------- -------
                               1,339   1,349   1,317   1,306   1,347
  Loans charged off:
   Loans secured by real
    estate:
     Home                         (9)     (6)     (8)    (16)    (18)
     Purchased subprime          (10)    (11)     (9)     (9)    (11)
------------------------------ ------- ------- ------- ------- -------
       Total home loan
        charge-offs              (19)    (17)    (17)    (25)    (29)
     Home equity loans
      and lines of credit         (3)     (6)     (5)     (7)     (2)
     Home construction(1)         (1)      -       -      (1)     (1)
     Multi-family                 (2)      -       -       -      (1)
     Other real estate            (1)     (1)     (1)     (8)    (52)
------------------------------ ------- ------- ------- ------- -------
       Total loans
        secured by
        real estate              (26)    (24)    (23)    (41)    (85)
   Consumer                      (17)    (11)    (11)    (14)    (14)
   Commercial business            (8)     (4)     (4)     (6)    (15)
------------------------------ ------- ------- ------- ------- -------
       Total loans
        charged off              (51)    (39)    (38)    (61)   (114)
  Recoveries of loans
   previously charged off:
    Loans secured by real
     estate:
      Home                         -       -       -       -       1
      Purchased subprime           1       1       1       1       1
------------------------------ ------- ------- ------- ------- -------
       Total home loan
        recoveries                 1       1       1       1       2
      Home equity loans
       and lines of credit         2       -       1       1       -
      Multi-family                 -       1       -       2       -
      Other real estate            2       2       4       2       5
------------------------------ ------- ------- ------- ------- -------
       Total loans
        secured by
        real estate                5       4       6       6       7
   Consumer                        4       5       5       5       5
   Commercial business             4       3       3       4       5
------------------------------ ------- ------- ------- ------- -------
       Total recoveries of
        loans previously
        charged off               13      12      14      15      17
------------------------------ ------- ------- ------- ------- -------
   Net charge-offs               (38)    (27)    (24)    (46)    (97)
------------------------------ ------- ------- ------- ------- -------
  Balance, end of quarter     $1,301  $1,322  $1,293  $1,260  $1,250
============================== ======= ======= ======= ======= =======

  Net charge-offs
   (annualized) as a
   percentage of average
   loans held in portfolio      0.07 %  0.05 %  0.05 %  0.10 %  0.23 %
  Allowance as a percentage
   of total loans held in
   portfolio                    0.63    0.64    0.66    0.68    0.71

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


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



                                 Dec.    Sept.   June    Mar.    Dec.
                                   31,      30,    30,     31,     31,
                                 2004    2004    2004    2004    2003
------------------------------- ------- ------- ------- ------- ------
Nonperforming Assets and
 Restructured Loans
  Nonaccrual loans(1):
   Loans secured by real
    estate:
     Home                      $  542  $  538  $  535  $  622  $  736
     Purchased subprime           674     608     585     615     597
------------------------------- ------- ------- ------- ------- ------
        Total home
         nonaccrual loans       1,216   1,146   1,120   1,237   1,333
     Home equity loans and
      lines of credit              66      50      48      45      47
     Home construction(2)          28      31      24      31      35
     Multi-family                  12      23      20      23      19
     Other real estate            162     173     133     153     153
------------------------------- ------- ------- ------- ------- ------
         Total nonaccrual
          loans secured by
          real estate           1,484   1,423   1,345   1,489   1,587
    Consumer                        9      11       9       7       8
    Commercial business            41      37      42      46      31
------------------------------- ------- ------- ------- ------- ------
         Total nonaccrual
          loans held in
          portfolio             1,534   1,471   1,396   1,542   1,626
 Foreclosed assets                261     281     286     307     311
------------------------------- ------- ------- ------- ------- ------
          Total nonperforming
           assets              $1,795  $1,752  $1,682  $1,849  $1,937
          As a percentage of
           total assets         0.58%   0.61%   0.60%   0.66%   0.70%
 Restructured loans            $   34  $   38  $   79  $  107  $  111
------------------------------- ------- ------- ------- ------- ------
           Total
            nonperforming
            assets and
            restructured
            loans              $1,829  $1,790  $1,761  $1,956  $2,048
=============================== ======= ======= ======= ======= ======

(1) Excludes nonaccrual loans held for sale of $76 million at December
    31, 2004.  Prior periods also reflect the exclusion of nonaccrual
    loans held for sale  of $84 million, $99 million, $135 million and
    $66 million at September 30, 2004, June 30, 2004, March 31, 2004
    and December 31, 2003.  Loans held for sale are accounted for at
    lower of aggregate cost or market value, with valuation changes
    included as adjustments to gain from mortgage loans.

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

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

SOURCE: Washington Mutual, Inc.