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Washington Mutual Announces First Quarter 2005 Earnings; Net Income from Continuing Operations Increases 38 Percent; Board of Directors Increases Cash Dividend

SEATTLE, Apr 19, 2005 (BUSINESS WIRE) -- Washington Mutual, Inc. (NYSE:WM) today announced first quarter 2005 net income of $902 million, or $1.01 per diluted share, all from continuing operations, up 38 percent on a per share basis when compared with net income from continuing operations of $648 million, or $0.73 per diluted share from continuing operations for the same period a year ago.

Total net income during the first quarter of 2004 was $1.05 billion, or $1.18 per diluted share, and included $399 million, or $0.45 per diluted share from discontinued operations from the sale of its former subsidiary, Washington Mutual Finance Corporation.

Washington Mutual's Board of Directors declared a cash dividend of 47 cents per share on the company's common stock, up from 46 cents per share in the previous quarter. Dividends on the common stock are payable on May 13, 2005 to shareholders of record as of April 29, 2005.

"Our first quarter results validate that our business model is working -- assets, deposits and checking accounts are growing; credit quality remains strong; mortgage banking income increased and our expenses continue to decline," said Kerry Killinger, chairman and chief executive officer. "We currently see good momentum in all of our business lines."

Killinger added: "We are all committed to achieving our long-term targets, producing top-tier performance in our industry and delivering superior long-term shareholder returns."

Key results:

-- Total assets of $319.70 billion at the end of the first quarter of 2005 increased $11.78 billion or 4 percent from the fourth quarter of 2004 and $38.93 billion or 14 percent from the first quarter of 2004, reflecting growth in all major categories of loans held in portfolio;

-- The net interest margin declined to 2.73 percent in the first quarter from 2.79 percent in the fourth quarter of 2004 and 2.89 percent in the first quarter of 2004;

-- The loan loss provision was $16 million in the first quarter of 2005, down from $37 million in the fourth quarter of 2004 and $56 million in the first quarter of 2004 due to a continuing favorable credit environment;

-- Depositor and other retail banking fees of $490 million in the first quarter of 2005 were down $25 million, or 5 percent from the fourth quarter of 2004 but were up $27 million, or 6 percent from the first quarter of 2004;

-- Total retail deposits grew $1.92 billion from the fourth quarter of 2004 and $6.29 billion, or 5 percent from the first quarter of 2004. Contributing to these increases were the addition of more than 434,000 net new retail deposit accounts in the first quarter of 2005, including nearly 43,000 net new small business checking accounts;

-- The company continued to effectively manage costs as noninterest expense of $1.84 billion in the quarter was down $100 million from $1.94 billion in the fourth quarter of 2004 and $1.88 billion in the first quarter of 2004.

FIRST QUARTER FINANCIAL SUMMARY

Net Interest Income

Net interest income was $1.89 billion in the first quarter, up slightly from $1.85 billion in the fourth quarter of 2004 and up 9 percent from $1.73 billion in the first quarter of 2004. The increase from the fourth quarter of 2004 reflects a 4 percent increase in average total interest-earning assets, while the increase from the first quarter of 2004 reflects a 15 percent increase in average total interest-earning assets.

The net interest margin in the first quarter was 2.73 percent, down 6 basis points from 2.79 percent in the fourth quarter of 2004 and 16 basis points from 2.89 percent in the first quarter of 2004. The decrease in net interest margin from the first quarter of 2004 was due to the Federal Reserve's rate tightening during the year, which was partially offset by disciplined deposit pricing and the termination of higher cost debt. In the first quarter the company repositioned a portion of the available-for-sale securities portfolio, which resulted in a loss of approximately $75 million in the quarter. This will help offset future compression in net interest margin.

Noninterest Income

Noninterest income increased to $1.41 billion in the first quarter of 2005 from $1.22 billion in the fourth quarter of 2004 and $1.24 billion in the first quarter of 2004. The increases were driven primarily by higher home loan mortgage banking income. The improvement from the prior quarter was driven by improved mortgage servicing rights ("MSR") performance. The increase from the same quarter of the prior year was the result of higher gain from mortgage loans, net of risk management activities, although the gain in the first quarter of 2004 was reduced by approximately $107 million as a result of the one-time effect of the company's change in accounting for gain from mortgage loans.

Noninterest Expense

Noninterest expense of $1.84 billion was down from $1.94 billion in the fourth quarter and $1.88 billion in the first quarter of 2004. Expenses were down from both prior periods due to continued progress in productivity improvements and focus on expense management, as well as lower restructuring charges. The company's efficiency ratio improved to 55.77 percent, compared with 63.18 percent for the fourth quarter of 2004 and 63.34 percent in the first quarter of 2004.

Lending

Total loan volume was $59.52 billion in the first quarter of 2005, compared with $63.22 billion in the fourth quarter of 2004 and $62.17 billion in the first quarter of 2004. The decline from both periods was due primarily to a decline in refinancing activity resulting from higher interest rates.

While first quarter fixed-rate home loan volume declined 26 percent compared with the first quarter of 2004, adjustable-rate home loan volume was up 13 percent, while home equity loan and line of credit and multi-family volumes rose 6 percent and 39 percent, respectively. The home loan volume included an 8 percent increase in specialty mortgage finance loan volume.

During the first quarter of 2005, adjustable-rate loans represented 63 percent of the company's total home loan volume, compared with 68 percent in the fourth quarter of 2004 and 53 percent in the first quarter of 2004.

Credit Quality

At March 31, 2005, nonperforming assets as a percentage of total assets were 0.57 percent, down from 0.58 percent at December 31, 2004, and 0.66 percent at March 31, 2004. Net charge offs for the quarter were $37 million versus $38 million in the fourth quarter of 2004 and $46 million in the first quarter of 2004 and were well below expectations due largely to improvement in the economy and the continued strong housing market. Despite portfolio growth, the strong credit performance of the portfolio resulted in a provision of $16 million for the quarter. The allowance for loan and lease losses totaled $1.28 billion at March 31, 2005, down 2 percent from December 31, 2004.

Balance Sheet and Capital Management

Total assets increased $11.78 billion from the end of the fourth quarter of 2004 to $319.70 billion at the end of the first quarter of 2005, reflecting continued growth in loans held in portfolio. Loans held in portfolio grew to $214.11 billion, an increase of $7.04 billion from the fourth quarter of 2004 and an increase of $27.73 billion from the same period a year ago.

Total deposits increased 6 percent from the previous quarter to $183.63 billion as of March 31, 2005, primarily due to growth of wholesale and time deposits.

During the quarter, the company also deployed capital by repurchasing 2,540,000 shares of its common stock at an average price of $39.31.

The company's ratio of tangible common equity to tangible assets was 5.03 percent at the end of the quarter. 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.

FIRST QUARTER OPERATING SEGMENT RESULTS

Retail Banking and Financial Services Group Financial Performance

Net income for the company's Retail Banking and Financial Services segment was $538 million in the first quarter of 2005, as compared with $565 million in the fourth quarter of 2004 and up 26 percent from $427 million in the first quarter of 2004. The increase in net income from the same quarter last year was driven by a 13 percent increase in net interest income. This reflects the growth in the average balances of home equity loans and lines of credit and the mortgage loan portfolio and margin expansion on deposits. In addition, noninterest income grew by 12 percent reflecting a 6 percent increase in depositor and other retail banking fees.

Total retail deposits of $134.59 billion increased $1.92 billion from the fourth quarter of 2004 and were up $6.29 billion or 5 percent from the first quarter of 2004. The company opened 29 retail banking stores in the first quarter and is on target to open 250 new retail banking stores in 2005. Average loans in the segment's portfolio grew 19 percent from the first quarter of 2004 to $177.64 billion, primarily due to a 53 percent increase in average home equity loans and lines of credit to $44.68 billion. The cross-sell ratio for the average mature retail banking household increased to 5.94 products and services, up from 5.65 at March 31, 2004. Over the past year, WM Advisors' assets under management grew by $3.02 billion, or 16 percent, to $22.45 billion at March 31, 2005.

Mortgage Banking Group Financial Performance

Net income for the Mortgage Banking segment was $243 million in the first quarter of 2005 compared with $142 million in the fourth quarter of 2004 and $228 million in the first quarter of 2004. The increase in net income from the prior quarter was driven by favorable MSR performance, higher gain from mortgage loans, net of risk management activities, and lower noninterest expense. The increase in net income over the first quarter of 2004 resulted from higher gain from mortgage loans, net of risk management activities, and lower noninterest expense.

Noninterest expense of $566 million in the first quarter of 2005 declined $63 million from $629 million in the fourth quarter of 2004 and was down $111 million, or 16 percent from $677 million in the first quarter of 2004 due to continued productivity and efficiency improvements.

The Mortgage Banking segment loan volume in the first quarter of 2005, which excludes specialty mortgage finance, was $38.50 billion, down slightly from $41.78 billion in the fourth quarter of 2004 and $43.72 billion in the first quarter of 2004. The decline reflects a slowdown in the mortgage market due to lower refinancing activity resulting from rising interest rates over the past year.

Commercial Group Financial Performance

Net income for the Commercial Group was $200 million in the first quarter of 2005, up $76 million from $124 million in the fourth quarter of 2004 and up $33 million from $167 million in the first quarter of 2004. The increase in net income from the fourth quarter of 2004 was primarily due to higher noninterest income resulting from a $59 million pretax gain on sale of a real estate investment property and higher gain from mortgage loans. The increase in net income over first quarter 2004 was largely due to the real estate investment property gain.

Average loans in the Commercial Group were $41.78 billion in the first quarter of 2005, up from $40.92 billion in the fourth quarter of 2004 and up $4.80 billion, or 13 percent from the first quarter of 2004. Total average commercial deposits of $7.31 billion in the first quarter of 2005 were down from $7.79 billion in the fourth quarter of 2004 but up 21 percent from $6.05 billion in the first quarter of 2004, driven by growth in average Mortgage Banker Finance deposits.

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 March 31, 2005, Washington Mutual and its subsidiaries had assets of $319.70 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 Wednesday, April 20, 2005, at 10:30 a.m. EDT and will be hosted by Kerry Killinger, chairman and chief executive officer, Steve Rotella, president and chief operating 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 888-730-9138. Participants calling from outside the United States may dial 630-395-0018. 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. EDT on Wednesday, April 20, 2005, through 11:59 p.m. EDT on Friday, April 29, 2005. The recorded message will be available at 866-416-8329. Callers from outside the United States may dial 203-369-0727.

Forward Looking Statement

Our Form 10-K for 2004 and other documents that we filed with the Securities and Exchange Commission have forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements provide our expectations or predictions of future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. These statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward looking statements were made. There are a number of factors, many of which are beyond our control that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Some of these factors are described in detail in our Form 10-K for 2004 and include:

-- Volatile interest rates impact our mortgage banking business and could adversely affect our earnings;

-- Rising unemployment or a decrease in housing prices could adversely affect our credit performance;

-- A continuing emphasis on subprime lending could negatively impact our business;

-- The potential for negative amortization in the Option ARM product could have an adverse effect on the Company's credit;

-- We face competition from banking and nonbanking companies;

-- Changes in the regulation of financial services companies and housing government-sponsored enterprises could adversely affect our business;

-- General business and economic conditions, including movements in interest rates, may significantly affect our earnings; and

-- Negative public opinion could damage our reputation and adversely affect our earnings.

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

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
Interest Income
 Loans held for sale        $470     $393      $341     $406     $332
 Loans held in portfolio   2,544    2,421     2,226    2,111    2,067
 Available-for-sale
  securities                 224      157       163      180      265
 Trading securities           79       66        40       21       24
 Other interest and
  dividend income             43       29        41       34       33
----------------------------------------------------------------------
  Total interest income    3,360    3,066     2,811    2,752    2,721
Interest Expense
 Deposits                    696      604       539      458      443
 Borrowings                  774      612       532      500      546
----------------------------------------------------------------------
  Total interest expense   1,470    1,216     1,071      958      989
----------------------------------------------------------------------
   Net interest income     1,890    1,850     1,740    1,794    1,732
  Provision for loan and
   lease losses               16       37        56       60       56
----------------------------------------------------------------------
   Net interest income
    after provision for
    loan and lease losses  1,874    1,813     1,684    1,734    1,676
Noninterest Income
 Home loan mortgage
  banking income, net        776      352       504        -      531
 Depositor and other
  retail banking fees        490      515       514      507      463
 Securities fees and
  commissions                110      110       104      105      107
 Insurance income             46       47        61       57       61
 Portfolio loan related
  income                      85      101       109      103       87
 Trading securities
  income (expense)           (89)      26        51        5        8
 Gain (loss) from other
  available-for-sale
  securities                (122)     (23)       11       41       21
 Loss on extinguishment
  of borrowings                -        -      (147)      (1)     (89)
 Other income                112       89        57       77       48
----------------------------------------------------------------------
   Total noninterest
    income                 1,408    1,217     1,264      894    1,237
Noninterest Expense
 Compensation and
  benefits                   876      839       841      849      899
 Occupancy and equipment     402      462       404      393      400
 Telecommunications and
  outsourced information
  services                   104      115       118      123      123
 Depositor and other
  retail banking losses       55       61        54       40       40
 Advertising and
  promotion                   55       57        76       84       58
 Professional fees            34       54        34       32       39
 Other expense               313      350       342      327      321
----------------------------------------------------------------------
   Total noninterest
    expense                1,839    1,938     1,869    1,848    1,880
----------------------------------------------------------------------
    Income from
     continuing
     operations before
     income taxes          1,443    1,092     1,079      780    1,033
    Income taxes             541      424       405      291      385
----------------------------------------------------------------------
     Income from
      continuing
      operations, net of
      taxes                  902      668       674      489      648
----------------------------------------------------------------------
Discontinued Operations
    Loss from
     discontinued
     operations before
     income taxes              -        -         -        -      (32)
    Gain on disposition
     of discontinued
     operations                -        -         -        -      676
     Income taxes              -        -         -        -      245
----------------------------------------------------------------------
Income from discontinued
 operations, net of taxes      -        -         -        -      399
----------------------------------------------------------------------
Net Income                  $902     $668      $674     $489   $1,047
======================================================================

Basic Earnings Per Common
 Share:
 Income from continuing
  operations               $1.04    $0.77     $0.78    $0.57    $0.75
 Income from discontinued
  operations, net              -        -         -        -     0.46
                         -------- -------- --------- -------- --------
  Net income                1.04     0.77      0.78     0.57     1.21

Diluted Earnings Per
 Common Share:
  Income from continuing
   operations              $1.01    $0.76     $0.76    $0.55    $0.73
  Income from
   discontinued
   operations, net             -        -         -        -     0.45
                         -------- -------- --------- -------- --------
  Net income                1.01     0.76      0.76     0.55     1.18

Dividends declared per
 common share               0.46     0.45      0.44     0.43     0.42
Basic weighted average
 number of common shares
 outstanding (in
 thousands)              864,933  863,055   862,004  860,496  863,299
Diluted weighted average
 number of common shares
 outstanding (in
 thousands)              888,789  883,991   882,323  883,414  886,467


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

                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                         2005      2004      2004      2004      2004
----------------------------------------------------------------------
Assets
 Cash and cash
  equivalents          $4,811    $4,455    $4,689    $5,133    $6,045
 Federal funds sold
  and securities
  purchased under
  agreements to
  resell                1,152        82        30        70     1,783
 Trading securities     6,066     5,588     3,113     1,336       968
 Available-for-sale
  securities, total
  amortized cost of
  $20,569, $19,047,
  $16,312, $19,392
  and $22,843:
  Mortgage-backed
   securities          15,947    14,923    10,168    10,042    10,766
  Investment
   securities           4,756     4,296     6,319     9,337    12,565
 Loans held for sale   41,197    42,743    29,184    27,795    34,207
 Loans held in
  portfolio           214,114   207,071   206,158   194,543   186,380
 Allowance for loan
  and lease losses     (1,280)   (1,301)   (1,322)   (1,293)   (1,260)
----------------------------------------------------------------------
   Total loans held
    in portfolio,
    net of allowance
    for loan and
    lease losses      212,834   205,770   204,836   193,250   185,120
 Investment in
  Federal Home Loan
  Banks                 3,973     4,059     3,883     3,965     3,916
 Mortgage servicing
  rights                6,802     5,906     6,112     7,501     5,239
 Goodwill               6,196     6,196     6,196     6,196     6,196
 Other assets          15,962    13,900    14,298    13,919    13,963
----------------------------------------------------------------------
   Total assets      $319,696  $307,918  $288,828  $278,544  $280,768
======================================================================
Liabilities
 Deposits:
  Noninterest-
   bearing deposits   $34,941   $32,780   $32,250   $33,343   $35,714
  Interest-bearing
   deposits           148,690   140,878   136,445   129,123   125,267
----------------------------------------------------------------------
   Total deposits     183,631   173,658   168,695   162,466   160,981
 Federal funds
  purchased and
  commercial paper      2,053     4,045     7,025     2,293     4,501
 Securities sold
  under agreements
  to repurchase        16,716    15,944    15,611    15,764    18,306
 Advances from
  Federal Home Loan
  Banks                66,730    70,074    59,758    61,379    58,494
 Other borrowings      21,938    18,498    12,747    12,113    13,692
 Other liabilities      6,861     4,473     4,172     4,160     4,411
----------------------------------------------------------------------
   Total liabilities  297,929   286,692   268,008   258,175   260,385
Stockholders' equity   21,767    21,226    20,820    20,369    20,383
----------------------------------------------------------------------
   Total liabilities
    and
    stockholders'
    equity           $319,696  $307,918  $288,828  $278,544  $280,768
======================================================================
Common shares
 outstanding at end
 of period (in
 thousands)(1)        877,287   874,262   873,085   872,246   868,953
Book value per
 common share(2)       $24.98    $24.45    $24.01    $23.51    $23.62
Tangible book value
 per common share(2)    18.01     17.45     16.99     16.47     16.53
Employees at end of
 period                52,488    52,579    55,488    57,274    59,173

(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.


WM-3
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                  $21,226  $20,820   $20,369  $20,383  $19,742
Net income                   902      668       674      489    1,047
Other comprehensive
 income (loss), net of
 tax                          (8)      49        98     (210)     512
Cash dividends declared
 on common stock            (402)    (390)     (381)    (372)    (367)
Common stock repurchased
 and retired                (100)       -         -        -     (712)
Common stock issued          149       79        60       79      161
----------------------------------------------------------------------
Balance, end of period   $21,767  $21,226   $20,820  $20,369  $20,383
======================================================================


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

                                        Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
RETAIL BANKING AND
 FINANCIAL SERVICES
 GROUP
 Condensed income
  statement:
  Net interest income     $1,343   $1,323    $1,255   $1,224   $1,187
  Provision for loan
   and lease losses           37       34        42       43       58
  Noninterest income         695      717       715      703      623
  Inter-segment revenue       12        8         3        7        6
  Noninterest expense      1,148    1,132     1,116    1,115    1,071
----------------------------------------------------------------------
  Income before income
   taxes                     865      882       815      776      687
  Income taxes               327      317       309      294      260
----------------------------------------------------------------------
   Net income               $538     $565      $506     $482     $427
======================================================================
 Performance and other
  data:
  Efficiency ratio(1)      49.78%   48.95%    49.97%   50.97%   51.86%
  Average loans         $177,635 $177,204  $167,569 $158,966 $149,377
  Average assets         190,479  189,872   180,003  171,343  161,359
  Average deposits       132,982  132,771   131,850  128,680  128,000
  Loan volume             12,493   13,337    14,178   14,988   12,778
  Employees at end of
   period                 31,152   30,107    30,069   29,640   29,077

MORTGAGE BANKING GROUP
 Condensed income
  statement:
  Net interest income       $286     $293      $287     $369     $288
  Noninterest income         682      566       769      208      761
  Inter-segment expense       12        8         3        7        6
  Noninterest expense        566      629       615      666      677
----------------------------------------------------------------------
  Income (loss) before
   income taxes              390      222       438      (96)     366
  Income taxes
   (benefit)                 147       80       165      (37)     138
----------------------------------------------------------------------
   Net income (loss)        $243     $142      $273     $(59)    $228
======================================================================
 Performance and other
  data:
  Efficiency ratio(1)      53.83%   67.78%    53.40%  107.91%   59.98%
  Average loans          $27,765  $24,880   $22,611  $26,999  $19,871
  Average assets          49,019   44,195    40,037   44,568   38,914
  Average deposits        13,107   15,121    15,385   19,837   14,877
  Loan volume             38,498   41,782    40,491   56,219   43,720
  Employees at end of
   period                 12,626   14,197    16,826   18,916   21,203

COMMERCIAL GROUP
 Condensed income
  statement:
  Net interest income       $323     $322      $325     $342     $343
  Provision for loan
   and lease losses            2       11         8       10       16
  Noninterest income         158       61        65      102       86
  Noninterest expense        175      192       164      149      156
----------------------------------------------------------------------
  Income before income
   taxes                     304      180       218      285      257
  Income taxes               104       56        75      101       90
----------------------------------------------------------------------
   Net income               $200     $124      $143     $184     $167
======================================================================
 Performance and other
  data:
  Efficiency ratio(1)      30.36%   42.23%    34.52%   26.89%   29.57%
  Average loans          $41,783  $40,917   $38,799  $38,496  $36,984
  Average assets          46,647   45,678    43,730   43,749   42,805
  Average deposits         7,308    7,791     7,811    6,898    6,049
  Loan volume              8,524    8,102     7,156    8,314    5,667
  Employees at end of
   period                  3,530    3,100     3,248    3,207    3,130

(This table is continued on "WM-5".)

(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).


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

                                        Quarter Ended
----------------------------------------------------------------------
(This table is           Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
continued from "WM-4".)     2005     2004      2004     2004     2004
----------------------------------------------------------------------
CORPORATE
 SUPPORT/TREASURY AND
 OTHER
 Condensed income
  statement:
  Net interest expense     $(175)   $(201)    $(237)   $(247)   $(189)
  Noninterest income
   (expense)                 (65)      12      (123)      24      (69)
  Noninterest expense        158      197       186      128      186
----------------------------------------------------------------------
  Income (loss) from
   continuing
   operations               (398)    (386)     (546)    (351)    (444)
  Income taxes
   (benefit)                (149)    (150)     (205)    (131)    (165)
----------------------------------------------------------------------
   Income (loss) from
    continuing
    operations              (249)    (236)     (341)    (220)    (279)
  Income from
   discontinued
   operations, net of
   taxes                       -        -         -        -      399
----------------------------------------------------------------------
    Net income (loss)      $(249)   $(236)    $(341)   $(220)    $120
======================================================================
 Performance and other
  data:
  Average assets         $23,809  $19,279   $21,721  $26,025  $29,996
  Average deposits        21,788   18,190    13,820    9,391    5,028
  Employees at end of
   period                  5,180    5,175     5,345    5,511    5,763

RECONCILING ADJUSTMENTS
 Condensed income
  statement:
  Net interest
   income(2)                $113     $113      $110     $106     $103
  Provision (reversal
   of reserve) for
   loan and lease
   losses(3)                 (23)      (8)        6        7      (18)
  Noninterest income
   (expense)(4)              (62)    (139)     (162)    (143)    (164)
  Noninterest (income)
   expense(5)               (208)    (212)     (212)    (210)    (210)
----------------------------------------------------------------------
  Income before income
   taxes                     282      194       154      166      167
  Income taxes(6)            112      121        61       64       62
----------------------------------------------------------------------
    Net income              $170      $73       $93     $102     $105
======================================================================
 Performance and other
  data:
  Average loans(7)       $(1,556) $(1,622)  $(1,600) $(1,553) $(1,505)
  Average assets(7)(8)    (1,782)  (1,866)   (1,822)  (1,745)  (1,668)

TOTAL CONSOLIDATED
 Condensed income
  statement:
  Net interest income     $1,890   $1,850    $1,740   $1,794   $1,732
  Provision for loan
   and lease losses           16       37        56       60       56
  Noninterest income       1,408    1,217     1,264      894    1,237
  Noninterest expense      1,839    1,938     1,869    1,848    1,880
----------------------------------------------------------------------
  Income from
   continuing
   operations before
   income taxes            1,443    1,092     1,079      780    1,033
  Income taxes               541      424       405      291      385
----------------------------------------------------------------------
   Income from
    continuing
    operations               902      668       674      489      648
  Income from
   discontinued
   operations, net of
   taxes                       -        -         -        -      399
----------------------------------------------------------------------
    Net income              $902     $668      $674     $489   $1,047
======================================================================
 Performance and other
  data:
  Efficiency ratio(9)      55.77%   63.18%    62.19%   68.77%   63.34%
  Average loans         $245,627 $241,379  $227,379 $222,908 $204,727
  Average assets         308,172  297,158   283,669  283,940  271,406
  Average deposits       175,185  173,873   168,866  164,806  153,954
  Loan volume             59,515   63,221    61,825   79,521   62,165
  Employees at end of
   period                 52,488   52,579    55,488   57,274   59,173

(2) 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.

(3) 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.

(4) 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.

(5) Represents the corporate offset for the cost of capital related to
    goodwill that has been allocated to the segments.

(6) Represents the tax effect of reconciling adjustments.

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

(8) Includes the impact to the allowance for the loan and lease losses
    per the following table that results from the difference between
    the long-term, normalized net charge-off ratio used to assess
    expected loan and lease losses for the operating segments and the
    "losses inherent in the loan portfolio" methodology used by the
    Company.

-----------------------------------------------------
                    Quarter Ended
-----------------------------------------------------
  Mar. 31,  Dec. 31,  Sept. 30,  June 30,  Mar. 31,
     2005      2004       2004      2004      2004
-----------------------------------------------------
    $(226)    $(244)     $(222)    $(192)    $(163)
-----------------------------------------------------

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


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

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
PROFITABILITY
 Net interest income      $1,890   $1,850    $1,740   $1,794   $1,732
 Net interest margin        2.73%    2.79%     2.77%    2.86%    2.89%
 Noninterest income       $1,408   $1,217    $1,264     $894   $1,237
 Noninterest expense       1,839    1,938     1,869    1,848    1,880
 Basic earnings per
  common share:
  Income from continuing
   operations              $1.04    $0.77     $0.78    $0.57    $0.75
  Income from
   discontinued
   operations, net             -        -         -        -     0.46
   Net income               1.04     0.77      0.78     0.57     1.21
 Diluted earnings per
  common share:
  Income from continuing
   operations              $1.01    $0.76     $0.76    $0.55    $0.73
  Income from
   discontinued
   operations, net             -        -         -        -     0.45
  Net income                1.01     0.76      0.76     0.55     1.18
 Dividends declared per
  common share             $0.46    $0.45     $0.44    $0.43    $0.42
 Return on average
  assets(1)                 1.17%    0.90%     0.95%    0.69%    1.54%
 Return on average
  common equity(1)         16.63    12.71     13.03     9.63    20.85
 Efficiency ratio(2)       55.77    63.18     62.19    68.77    63.34

ASSET QUALITY
 Nonaccrual loans(3)(4)   $1,569   $1,534    $1,471   $1,396   $1,542
 Foreclosed assets(4)        264      261       281      286      307
 Total nonperforming
  assets(3)(4)             1,833    1,795     1,752    1,682    1,849
 Nonperforming
  assets/total
  assets(3)(4)              0.57%    0.58%     0.61%    0.60%    0.66%
 Restructured loans(4)       $27      $34       $38      $79     $107
 Total nonperforming
  assets and
  restructured
  loans(3)(4)              1,860    1,829     1,790    1,761    1,956
 Allowance for loan and
  lease losses(4)          1,280    1,301     1,322    1,293    1,260
 Allowance as a
  percentage of total
  loans held in
  portfolio(4)              0.60%    0.63%     0.64%    0.66%    0.68%
 Provision for loan and
  lease losses               $16      $37       $56      $60      $56
 Net charge-offs              37       38        27       24       46

CAPITAL ADEQUACY(4)
 Stockholders'
  equity/total assets       6.81%    6.89%     7.21%    7.31%    7.26%
 Tangible common
  equity(5)/total
  tangible assets(5)        5.03     5.05      5.26     5.32     5.21
 Estimated total risk-
  based capital/risk-
  weighted assets(6)       11.18    11.34     10.64    10.39    10.53

SUPPLEMENTAL DATA
 Average balance sheet:
  Total loans held for
   sale                  $38,307  $33,083   $28,220  $33,096  $24,464
  Total loans held in
   portfolio             207,320  208,296   199,159  189,812  180,263
  Total interest-earning
   assets                277,080  266,375   252,235  251,264  239,979
  Total assets           308,172  297,158   283,669  283,940  271,406
  Total interest-bearing
   deposits              142,639  139,938   135,600  127,670  123,336
  Total noninterest-
   bearing deposits       32,546   33,935    33,266   37,136   30,618
  Total stockholders'
   equity                 21,680   21,025    20,703   20,288   20,088
 Period-end balance
  sheet:
  Loans held for sale     41,197   42,743    29,184   27,795   34,207
  Loans held in
   portfolio, net of
   allowance for loan
   and lease losses      212,834  205,770   204,836  193,250  185,120
  Interest-earning
   assets                287,205  278,762   258,855  247,088  250,585
  Total assets           319,696  307,918   288,828  278,544  280,768
  Interest-bearing
   deposits              148,690  140,878   136,445  129,123  125,267
  Noninterest-bearing
   deposits               34,941   32,780    32,250   33,343   35,714
  Total stockholders'
   equity                 21,767   21,226    20,820   20,369   20,383

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

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

(3) Excludes nonaccrual loans held for sale.

(4) As of quarter end.

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

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


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

                                      Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, 2005             Dec. 31, 2004
                   ------------------------- -------------------------
                                    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             $1,354   2.55%      $9      $560   1.92%      $3
 Trading
  securities          5,713   5.55       79     4,540   5.80       66
 Available-for-
  sale
  securities(1):
  Mortgage-backed
   securities        15,487   4.45      173    11,398   3.85      110
  Investment
   securities         4,627   4.44       51     4,387   4.27       47
 Loans held for
  sale(2)            38,307   4.91      470    33,083   4.74      393
 Loans held in
  portfolio(2):
  Loans secured by
   real estate:
   Home             110,131   4.59    1,263   113,352   4.30    1,218
   Specialty
    mortgage
    finance(3)       18,554   5.05      234    17,389   4.87      212
----------------------------        -------- ---------        --------
    Total home
     loans          128,685   4.65    1,497   130,741   4.37    1,430
   Home equity
    loans and
    lines of
    credit           44,679   5.37      593    42,034   4.93      520
   Home
    construction
    (4)               2,242   5.77       32     2,434   5.87       36
   Multi-family      22,667   5.00      283    21,922   4.92      270
   Other real
    estate            5,425   6.02       82     6,133   6.03       93
----------------------------        -------- ---------        --------
    Total loans
     secured by
     real estate    203,698   4.90    2,487   203,264   4.62    2,349
   Consumer             770  10.50       20       813  10.20       21
   Commercial
    business          2,852   5.19       37     4,219   4.78       51
----------------------------        -------- ---------        --------
    Total loans
     held in
     portfolio      207,320   4.92    2,544   208,296   4.64    2,421
Other                 4,272   3.21       34     4,111   2.60       26
----------------------------        -------- ---------        --------
    Total
     interest-
     earning
     assets         277,080   4.86    3,360   266,375   4.59    3,066
Noninterest-
 earning assets:
 Mortgage
  servicing rights    6,090                     5,928
 Goodwill             6,196                     6,196
 Other assets        18,806                    18,659
----------------------------                 ---------
  Total assets     $308,172                  $297,158
============================                 =========
Liabilities
Interest-bearing
 liabilities:
 Deposits:
  Interest-bearing
   checking
   deposits         $49,917   1.63      201   $52,171   1.32      173
  Savings and
   money market
   deposits          41,997   1.42      147    44,017   1.36      151
  Time deposits      50,725   2.77      348    43,750   2.53      280
----------------------------        -------- ---------        --------
   Total interest-
    bearing
    deposits        142,639   1.97      696   139,938   1.71      604
 Federal funds
  purchased and
  commercial paper    3,486   2.49       22     4,828   1.98       24
 Securities sold
  under agreements
  to repurchase      16,621   2.65      110    13,528   2.09       72
 Advances from
  Federal Home
  Loan Banks         66,591   2.82      469    63,053   2.34      376
 Other               18,400   3.78      173    15,164   3.70      140
----------------------------        -------- ---------        --------
   Total interest-
    bearing
    liabilities     247,737   2.39    1,470   236,511   2.03    1,216
Noninterest-
 bearing sources:
 Noninterest-
  bearing deposits   32,546                    33,935
 Other liabilities    6,209                     5,687
 Stockholders'
  equity             21,680                    21,025
----------------------------                 ---------
   Total
    liabilities
    and
    stockholders'
    equity         $308,172                  $297,158
============================                 =========
 Net interest
  spread and net
  interest income             2.47   $1,890             2.56   $1,850
                                    ========                  ========
 Impact of
  noninterest-
  bearing sources             0.26                      0.23
 Net interest
  margin                      2.73                      2.79


                        Quarter Ended
--------------------------------------------
                         Mar. 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             $1,026   1.34%      $3
 Trading
  securities          1,228   7.91       24
 Available-for-
  sale
  securities(1):
  Mortgage-backed
   securities         9,999   4.35      109
  Investment
   securities        19,073   3.29      156
 Loans held for
  sale(2)            24,464   5.43      332
 Loans held in
  portfolio(2):
  Loans secured by
   real estate:
   Home             102,691   4.24    1,089
   Specialty
    mortgage
    finance(3)       14,016   5.21      182
------------------ ---------        --------
    Total home
     loans          116,707   4.36    1,271
   Home equity
    loans and
    lines of
    credit           29,262   4.72      344
   Home
    construction
    (4)               2,317   5.33       31
   Multi-family      20,376   5.06      258
   Other real
    estate            6,589   5.77       95
----------------------------        --------
    Total loans
     secured by
     real estate    175,251   4.57    1,999
   Consumer             997  10.15       25
   Commercial
    business          4,015   4.19       43
------------------ ---------        --------
    Total loans
     held in
     portfolio      180,263   4.59    2,067
Other                 3,926   3.00       30
------------------ ---------        --------
    Total
     interest-
     earning
     assets         239,979   4.54    2,721
Noninterest-
 earning assets:
 Mortgage
  servicing rights    5,872
 Goodwill             6,196
 Other assets        19,359
------------------ ---------
  Total assets     $271,406
================== =========
Liabilities
Interest-bearing
 liabilities:
 Deposits:
  Interest-bearing
   checking
   deposits         $67,431   1.28      214
  Savings and
   money market
   deposits          26,915   0.75       50
  Time deposits      28,990   2.48      179
------------------ ---------        --------
   Total interest-
    bearing
    deposits        123,336   1.45      443
 Federal funds
  purchased and
  commercial paper    3,493   1.08       10
 Securities sold
  under agreements
  to repurchase      21,954   1.93      107
 Advances from
  Federal Home
  Loan Banks         52,921   2.28      305
 Other               14,032   3.56      124
------------------ ---------        --------
   Total interest-
    bearing
    liabilities     215,736   1.83      989
Noninterest-
 bearing sources:
 Noninterest-
  bearing deposits   30,618
 Other liabilities    4,964
 Stockholders'
  equity             20,088
------------------ ---------
   Total
    liabilities
    and
    stockholders'
    equity         $271,406
================== =========
 Net interest
  spread and net
  interest income             2.71   $1,732
                                    ========
 Impact of
  noninterest-
  bearing sources             0.18
 Net interest
  margin                      2.89

(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 purchased subprime loan portfolios and certain
    mortgages originated by Long Beach Mortgage Company.

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


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

                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                         2005      2004      2004      2004      2004
----------------------------------------------------------------------
Deposits
 Retail deposits:
  Checking deposits:
   Noninterest
    bearing           $18,599   $17,463   $16,178   $15,666   $15,107
   Interest bearing    48,988    51,099    52,378    59,395    66,618
----------------------------------------------------------------------
    Total checking
     deposits          67,587    68,562    68,556    75,061    81,725
   Savings and money
    market deposits    35,184    36,836    38,620    30,413    22,452
   Time deposits(1)    31,819    27,268    24,825    23,990    24,128
----------------------------------------------------------------------
    Total retail
     deposits         134,590   132,666   132,001   129,464   128,305
   Commercial
    business
    deposits            8,447     7,611     7,369     7,176     6,426
   Wholesale
    deposits           24,969    18,448    14,052     8,874     6,219
   Custodial and
    escrow
    deposits(2)        15,625    14,933    15,273    16,952    20,031
----------------------------------------------------------------------
    Total deposits   $183,631  $173,658  $168,695  $162,466  $160,981
======================================================================

(1) Weighted average remaining maturity of time deposits was 14 months
    at March 31, 2005 and 16 months at December 31, 2004, September
    30, 2004, June 30, 2004 and March 31, 2004.

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


                  Mar. 31,   Dec. 31,  Sept. 30,   June 30,   Mar. 31,
                     2005       2004       2004       2004       2004
----------------------------------------------------------------------
Retail Deposit
 Accounts(1)
 Transaction
  accounts(2)  14,434,101 14,091,734 13,905,707 13,579,961 13,193,298
 Time deposits  1,300,580  1,208,870  1,171,127  1,165,002  1,185,728
----------------------------------------------------------------------
  Total
   accounts,
   end of
   period      15,734,681 15,300,604 15,076,834 14,744,963 14,379,026
======================================================================

 Net
  transaction
  account
  changes         342,367    186,027    325,746    386,663    398,396
 Net total
  account
  changes         434,077    223,770    331,871    365,937    368,788

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

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



                      Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                         2005     2004      2004     2004     2004
-------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
 period                 1,939    1,872     1,816    1,755    1,776
 Net stores opened
  during the quarter       29       67        56       61      (21)(1)
-------------------------------------------------------------------
Stores, end of period   1,968    1,939     1,872    1,816    1,755
===================================================================

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


                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                         2005      2004      2004      2004      2004
----------------------------------------------------------------------
Assets Under
 Management           $22,454   $22,196   $20,617   $20,106   $19,438
======================================================================


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

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
Loan Volume
 Home loans:
  Adjustable rate        $22,947  $26,141   $25,589  $29,753  $21,822
  Fixed rate              17,147   15,448    14,635   26,076   21,564
  Specialty mortgage
   finance(1)              7,656    9,362     7,536    7,323    7,113
----------------------------------------------------------------------
   Total home loan
    volume                47,750   50,951    47,760   63,152   50,499
 Home equity loans and
  lines of credit          8,887    9,307    10,527   11,572    8,416
 Home construction
  loans(2)                   245      293       640      839      609
 Multi-family              2,121    2,240     2,050    2,346    1,525
 Other real estate           345      257       352      760      370
----------------------------------------------------------------------
   Total loans secured
    by real estate        59,348   63,048    61,329   78,669   61,419
 Consumer                     43       77       138       63       58
 Commercial business         124       96       358      789      688
----------------------------------------------------------------------
   Total loan volume     $59,515  $63,221   $61,825  $79,521  $62,165
======================================================================
Loan Volume by Channel
 Retail                  $25,569  $28,766   $30,285  $37,720  $28,126
 Wholesale                16,716   18,441    16,079   19,534   15,419
 Purchased/correspondent  17,230   16,014    15,461   22,267   18,620
----------------------------------------------------------------------
   Total loan volume by
    channel              $59,515  $63,221   $61,825  $79,521  $62,165
======================================================================
Refinancing Activity(3)
 Home loan refinancing   $28,641  $30,752   $23,834  $40,201  $33,233
 Home equity loans and
  lines of credit and
  consumer                   392      336       360    1,147    1,107
 Home construction loans      10       13         9       13       12
 Multi-family and other
  real estate                660      565       621      883      575
----------------------------------------------------------------------
   Total refinancing     $29,703  $31,666   $24,824  $42,244  $34,927
======================================================================
Home Loan Volume by
 Index
 Short-term adjustable-
  rate loans(4):
  Treasury indices       $15,997  $18,967   $18,883  $16,467  $13,440
  COFI                       195      846       145      167      110
  Other                      426       57        45      812      218
----------------------------------------------------------------------
   Total short-term
    adjustable-rate
    loans                 16,618   19,870    19,073   17,446   13,768
 Medium-term adjustable-
  rate loans(5)           13,409   14,890    12,866   17,536   12,814
 Fixed-rate loans         17,723   16,191    15,821   28,170   23,917
----------------------------------------------------------------------
   Total home loan
    volume               $47,750  $50,951   $47,760  $63,152  $50,499
======================================================================

Note: Pursuant to regulatory guidance, buyouts of delinquent mortgages
contained within Government National Mortgage Association (GNMA) loan
servicing pools must be classified as loans on the balance sheet.
Accordingly, total home loan volume includes GNMA pool buy-out volume
of $563 million, $785 million, $898 million, $689 million and $1.05
billion for the quarters ended March 31, 2005, December 31, 2004,
September 30, 2004, June 30, 2004 and March 31, 2004.

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

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

(3) 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-10
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Change from
                                     Dec. 31, 2004  Mar. 31,  Dec. 31,
                                  to Mar. 31, 2005     2005      2004
----------------------------------------------------------------------
Loans by Property Type
 Loans held in portfolio:
  Loans secured by real estate:
   Home                                    $2,453  $112,444  $109,991
   Specialty mortgage finance(1)            2,396    21,539    19,143
----------------------------------------------------------------------
      Total home loans                      4,849   133,983   129,134
   Home equity loans and lines of
    credit                                  2,199    45,849    43,650
   Home construction(2)                      (174)    2,170     2,344
   Multi-family                               965    23,247    22,282
   Other real estate                         (353)    5,311     5,664
----------------------------------------------------------------------
      Total loans secured by real
       estate                               7,486   210,560   203,074
  Consumer                                    (45)      747       792
  Commercial business                        (398)    2,807     3,205
----------------------------------------------------------------------
      Total loans held in
       portfolio                            7,043   214,114   207,071
 Less: allowance for loan and
  lease losses                                 21    (1,280)   (1,301)
----------------------------------------------------------------------
          Total net loans held in
           portfolio                        7,064   212,834   205,770
 Loans held for sale(3)                    (1,546)   41,197    42,743
----------------------------------------------------------------------
      Total net loans                      $5,518  $254,031  $248,513
======================================================================


                                         Sept. 30,  June 30,  Mar. 31,
                                             2004      2004      2004
----------------------------------------------------------------------
Loans by Property Type
 Loans held in portfolio:
  Loans secured by real estate:
   Home                                  $112,230  $106,312  $104,946
   Specialty mortgage finance(1)           17,305    16,217    15,437
----------------------------------------------------------------------
      Total home loans                    129,535   122,529   120,383
   Home equity loans and lines of
    credit                                 40,505    36,077    31,264
   Home construction(2)                     2,732     2,605     2,370
   Multi-family                            21,640    21,156    20,579
   Other real estate                        6,268     6,513     6,508
----------------------------------------------------------------------
      Total loans secured by real
       estate                             200,680   188,880   181,104
  Consumer                                    831       892       954
  Commercial business                       4,647     4,771     4,322
----------------------------------------------------------------------
      Total loans held in
       portfolio                          206,158   194,543   186,380
 Less: allowance for loan and
  lease losses                             (1,322)   (1,293)   (1,260)
----------------------------------------------------------------------
          Total net loans held in
           portfolio                      204,836   193,250   185,120
 Loans held for sale(3)                    29,184    27,795    34,207
----------------------------------------------------------------------
      Total net loans                    $234,020  $221,045  $219,327
======================================================================

(1) Represents purchased subprime loan portfolios and certain
    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) Fair value of loans held for sale was $41.38 billion, $43.02
    billion, $29.32 billion, $27.92 billion and $34.36 billion as of
    March 31, 2005, December 31, 2004, September 30, 2004, June 30,
    2004 and March 31, 2004.


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

                                                              Weighted
                                        Change from            Average
                                      Dec. 31, 2004  Mar. 31,   Coupon
                                   to Mar. 31, 2005     2005      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                                      $(375)   $7,261     5.05%
   Treasury indices                          3,706    76,846     4.58
   Other                                     2,281    43,967     5.86
----------------------------------------------------------------------
    Total short-term adjustable-
     rate loans                              5,612   128,074     5.05
  Medium-term adjustable-rate
   loans(3)                                  1,579    54,157     5.50
  Fixed-rate loans                             822    20,848     6.52
----------------------------------------------------------------------
    Total loans held in portfolio
     secured by real estate(4)               8,013   203,079     5.32
 Loans held for sale(5)                     (1,596)   41,003     5.11
----------------------------------------------------------------------
    Total loans secured by real
     estate                                  6,417   244,082     5.28
 MBS(6):
  Short-term adjustable-rate
   MBS(2):
   COFI                                       (552)    3,121     3.93
   Treasury indices                          2,117     7,700     3.85
   Other                                        69       737     5.06
----------------------------------------------------------------------
    Total short-term adjustable-
     rate MBS                                1,634    11,558     3.95
  Medium-term adjustable-rate
   MBS(3)                                      289       991     4.45
  Fixed-rate MBS                              (743)    3,185     5.22
----------------------------------------------------------------------
    Total MBS(7)                             1,180    15,734     4.24
----------------------------------------------------------------------
    Total loans secured by real
     estate and MBS                         $7,597  $259,816     5.22
======================================================================


                                            Weighted          Weighted
                                             Average           Average
                                   Dec. 31,   Coupon Mar. 31,   Coupon
                                      2004      Rate    2004      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                             $7,636     4.91%  $9,878     4.86%
   Treasury indices                 73,140     4.25   58,981     3.76
   Other                            41,686     5.42   30,759     4.78
----------------------------------------------------------------------
    Total short-term adjustable-
     rate loans                    122,462     4.69   99,618     4.19
  Medium-term adjustable-rate
   loans(3)                         52,578     5.40   53,209     5.51
  Fixed-rate loans                  20,026     6.56   19,399     6.80
----------------------------------------------------------------------
    Total loans held in portfolio
     secured by real estate(4)     195,066     5.07  172,226     4.89
 Loans held for sale(5)             42,599     4.70   34,023     5.42
----------------------------------------------------------------------
    Total loans secured by real
     estate                        237,665     5.01  206,249     4.98
 MBS(6):
  Short-term adjustable-rate
   MBS(2):
   COFI                              3,673     3.72    4,964     3.82
   Treasury indices                  5,583     3.15    4,225     2.50
   Other                               668     5.04        9     3.08
----------------------------------------------------------------------
    Total short-term adjustable-
     rate MBS                        9,924     3.49    9,198     3.21
  Medium-term adjustable-rate
   MBS(3)                              702     4.25        -        -
  Fixed-rate MBS                     3,928     5.32    1,272     6.38
----------------------------------------------------------------------
    Total MBS(7)                    14,554     4.02   10,470     3.60
----------------------------------------------------------------------
    Total loans secured by real
     estate and MBS               $252,219     4.95 $216,719     4.92
======================================================================

(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 March 31, 2005, December 31, 2004, and March 31, 2004, the
    adjustable-rate loans with lifetime caps were $179.59 billion,
    $171.44 billion and $149.33 billion with a lifetime weighted
    average cap rate of 12.31%, 12.31% and 12.20%.

(5) Excludes student loans.

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

(7) At March 31, 2005, December 31, 2004 and March 31, 2004, the
    adjustable-rate MBS with lifetime caps were $12.47 billion, $10.58
    billion and $7.48 billion with a lifetime weighted average cap
    rate of 10.18%, 10.23% and 11.33%.


                                                         Dec. 31, 2004
                                                      to Mar. 31, 2005
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
 Balance, beginning of period                                 $42,743
  Loans originated, purchased and transferred from
   held in portfolio                                           37,861
  Loans transferred to held in portfolio                       (4,631)
  Loans sold and other                                        (34,776)
----------------------------------------------------------------------
 Balance, end of period                                       $41,197
======================================================================

Rollforward of Loans Held in Portfolio
 Balance, beginning of period                                $207,071
  Loans originated, purchased and transferred from
   held for sale                                               26,285
  Loan payments, transferred to held for sale and
   other                                                      (19,242)
----------------------------------------------------------------------
 Balance, end of period                                      $214,114
======================================================================


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

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
Home Loan Mortgage
 Banking Income
 (Expense)
 Loan servicing fees        $489     $481      $482     $485     $502
 Amortization of MSR        (570)    (636)     (589)    (546)    (750)
 Net MSR valuation
  adjustments(1)             539      257       165      (51)    (606)
 Other, net(2)               (51)     (62)      (62)     (89)     (66)
----------------------------------------------------------------------
  Net home loan
   servicing income
   (expense)                 407       40        (4)    (201)    (920)
 Revaluation gain (loss)
  from derivatives:
  MSR risk management(3)     (23)      14       130     (322)   1,108
  Loans held for sale
   risk management(4)         86       28       (23)     142      (66)
----------------------------------------------------------------------
   Total revaluation
    gain (loss) from
    derivatives               63       42       107     (180)   1,042
 Net settlement income
  from certain interest-
  rate swaps                  51       53       126      192      167
 Gain from mortgage
  loans(4)                   178      155       210      113      171
 Loan related income          74       60        65       76       71
 Gain from sale of
  originated mortgage-
  backed securities            3        2         -        -        -
----------------------------------------------------------------------
  Total home loan
   mortgage banking
   income                    776      352       504        -      531
----------------------------------------------------------------------
 Impact of other MSR
  risk management
  instruments(5):
  Gain (loss) from
   certain available-
   for-sale securities       (44)      (4)        -        -        5
  Revaluation gain
   (loss) from certain
   trading securities       (109)      36        45        -        -
----------------------------------------------------------------------
   Total home loan
    mortgage banking
    income, net of other
    MSR risk management
    instruments             $623     $384      $549       $-     $536

(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) Includes loan pool expense, which represent the shortfall of what
    is remitted to investors compared to what is collected from the
    borrowers.

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

(4) Gain from mortgage loans net of loans held for sale hedging and
    risk management instruments was a net gain of $257 million, $180
    million, $187 million, $252 million and $112 million for the
    quarters ended March 31, 2005, December 31, 2004, September 30,
    2004, June 30, 2004, and March 31, 2004.

(5) Includes only instruments designated for MSR risk management and
    does not include the effects of instruments held for
    asset/liability risk management.


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

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
Mortgage Servicing
 Rights ("MSR")
 Performance
 Statement No. 133 MSR
  accounting valuation
  adjustments               $545    $(123)    $(885)  $1,707       $-
 Statement No. 133 fair
  value hedging
  adjustments               (433)     201     1,316   (1,985)       -
----------------------------------------------------------------------
  Statement No. 133
   ineffectiveness           112       78       431     (278)       -
 Change in value of MSR
  accounted for under
  lower of cost
  or market value
  methodology                427      179      (266)     227     (606)
----------------------------------------------------------------------
  Net MSR valuation
   adjustments(1)            539      257       165      (51)    (606)
 Amortization of MSR        (570)    (636)     (589)    (546)    (750)
 MSR risk management:
  Revaluation gain
   (loss) from
   derivatives               (23)      14       130     (322)   1,108
  Net settlement income
   from certain
   interest-rate swaps        58       56       126      195      160
  Gain (loss) from
   certain available-
   for-sale securities       (44)      (4)        -        -        5
  Revaluation gain
   (loss) from certain
   trading securities       (109)      36        45        -        -
----------------------------------------------------------------------
   Net MSR valuation
    less hedging expense   $(149)   $(277)    $(123)   $(724)    $(83)
======================================================================

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

                                      Quarter Ended
----------------------------------------------------------------------
                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                         2005      2004      2004      2004      2004
----------------------------------------------------------------------
Rollforward of
 Mortgage Servicing
 Rights ("MSR")(1)(2)
 Balance, beginning
  of period            $5,906    $6,112    $7,501    $5,239    $6,354
  Home loans:
   Additions              490       372       348       874       241
   Amortization          (570)     (636)     (589)     (546)     (750)
   (Impairment)
    reversal              427       179      (266)      227      (606)
   Statement No. 133
    MSR accounting
    valuation
    adjustments           545      (123)     (885)    1,707         -
  Net change in
   commercial real
   estate MSR               4         2         3         -         -
----------------------------------------------------------------------
 Balance, end of
  period(3)            $6,802    $5,906    $6,112    $7,501    $5,239
======================================================================
Rollforward of
 Valuation Allowance
 for MSR Impairment
 Balance, beginning
  of period            $1,981    $2,653    $2,417    $3,035    $2,435
  Impairment
   (reversal)            (427)     (179)      266      (227)      606
  Other-than-
   temporary
   impairment             (34)     (486)      (22)     (388)        -
  Other                    (7)       (7)       (8)       (3)       (6)
----------------------------------------------------------------------
 Balance, end of
  period               $1,513    $1,981    $2,653    $2,417    $3,035
======================================================================
Rollforward of Loans
 Serviced for Others
 Balance, beginning
  of period          $540,392  $551,245  $558,388  $559,807  $582,669
  Home loans:
   Additions           34,533    27,218    29,699    54,201    22,009
   Loan payments and
    other             (32,861)  (38,529)  (37,035)  (56,388)  (46,058)
  Net change in
   commercial real
   estate loans
   serviced for
   others                 733       458       193       768     1,187
----------------------------------------------------------------------
 Balance, end of
  period             $542,797  $540,392  $551,245  $558,388  $559,807
======================================================================

                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                         2005      2004      2004      2004      2004
----------------------------------------------------------------------
Total Servicing
 Portfolio
 Loans serviced for
  others             $542,797  $540,392  $551,245  $558,388  $559,807
 Servicing on
  retained MBS
  without MSR           1,702     1,808     2,713     2,938     3,208
 Servicing on owned
  loans               233,738   229,879   217,592   205,714   204,449
 Subservicing
  portfolio               421       461       502       563     1,528
----------------------------------------------------------------------
 Total servicing
  portfolio          $778,658  $772,540  $772,052  $767,603  $768,992
======================================================================


                                                 March 31, 2005
----------------------------------------------------------------------
                                            Unpaid       Weighted
                                           Principal      Average
                                            Balance    Servicing Fee
----------------------------------------------------------------------
                                                     (in basis points,
Loans Serviced for Others by Loan Type                  annualized)
 Government                                 $52,046             47.56
 Agency                                     340,472             30.19
 Private                                    131,415             37.91
 Specialty home loans                        18,864             50.00
----------------------------------------------------------------------
  Total loans serviced for others(4)       $542,797             34.41
======================================================================

(1) Net of valuation allowance.

(2) MSR as a percentage of loans serviced for others was 1.25%, 1.09%,
    1.11%, 1.34% and 0.94% at March 31, 2005, December 31, 2004,
    September 30, 2004, June 30, 2004 and March 31, 2004.

(3) At March 31, 2005, the aggregate MSR fair value was $6.81 billion.

(4) Weighted average coupon rate (annualized) was 5.83% at March 31,
    2005.


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

                                        Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
Allowance for Loan and
 Lease Losses
 Balance, beginning of
  quarter                 $1,301   $1,322    $1,293   $1,260   $1,250
 Other                         -      (20)        -       (3)       -
 Provision for loan and
  lease losses                16       37        56       60       56
----------------------------------------------------------------------
                           1,317    1,339     1,349    1,317    1,306
 Loans charged off:
  Loans secured by real
   estate:
   Home                      (11)      (9)       (6)      (8)     (16)
   Specialty mortgage
    finance(1)               (10)     (10)      (11)      (9)      (9)
----------------------------------------------------------------------
    Total home loans
     charged off             (21)     (19)      (17)     (17)     (25)
   Home equity loans and
    lines of credit           (5)      (3)       (6)      (5)      (7)
   Home construction(2)        -       (1)        -        -       (1)
   Multi-family                -       (2)        -        -        -
   Other real estate          (1)      (1)       (1)      (1)      (8)
----------------------------------------------------------------------
    Total loans secured
     by real estate          (27)     (26)      (24)     (23)     (41)
  Consumer                   (13)     (17)      (11)     (11)     (14)
  Commercial business         (6)      (8)       (4)      (4)      (6)
----------------------------------------------------------------------
    Total loans charged
     off                     (46)     (51)      (39)     (38)     (61)
 Recoveries of loans
  previously charged
  off:
  Loans secured by real
   estate:
   Specialty mortgage
    finance(1)                 1        1         1        1        1
   Home equity loans and
    lines of credit            -        2         -        1        1
   Multi-family                -        -         1        -        2
   Other real estate           1        2         2        4        2
----------------------------------------------------------------------
    Total loans secured
     by real estate            2        5         4        6        6
  Consumer                     5        4         5        5        5
  Commercial business          2        4         3        3        4
----------------------------------------------------------------------
    Total recoveries of
     loans previously
     charged off               9       13        12       14       15
----------------------------------------------------------------------
  Net charge-offs            (37)     (38)      (27)     (24)     (46)
----------------------------------------------------------------------
 Balance, end of quarter  $1,280   $1,301    $1,322   $1,293   $1,260
======================================================================

 Net charge-offs
  (annualized) as a
  percentage of average
  loans held in
  portfolio                 0.07%    0.07%     0.05%    0.05%    0.10%
 Allowance as a
  percentage of total
  loans held in
  portfolio                 0.60     0.63      0.64     0.66     0.68

(1) Represents purchased subprime loan portfolios and certain
    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.


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

                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2005     2004      2004     2004     2004
----------------------------------------------------------------------
Nonperforming Assets and
 Restructured Loans
 Nonaccrual loans(1):
  Loans secured by real
   estate:
   Home                     $495     $542      $538     $535     $622
   Specialty mortgage
    finance(2)               734      674       608      585      615
----------------------------------------------------------------------
    Total home
     nonaccrual loans      1,229    1,216     1,146    1,120    1,237
   Home equity loans and
    lines of credit           74       66        50       48       45
   Home construction(3)       25       28        31       24       31
   Multi-family               15       12        23       20       23
   Other real estate         159      162       173      133      153
----------------------------------------------------------------------
    Total nonaccrual
     loans secured by
     real estate           1,502    1,484     1,423    1,345    1,489
 Consumer                      8        9        11        9        7
 Commercial business          59       41        37       42       46
----------------------------------------------------------------------
    Total nonaccrual
     loans held in
     portfolio             1,569    1,534     1,471    1,396    1,542
 Foreclosed assets           264      261       281      286      307
----------------------------------------------------------------------
    Total nonperforming
     assets               $1,833   $1,795    $1,752   $1,682   $1,849
    As a percentage of
     total assets           0.57%    0.58%     0.61%    0.60%    0.66%
 Restructured loans          $27      $34       $38      $79     $107
----------------------------------------------------------------------
     Total nonperforming
      assets and
      restructured loans  $1,860   $1,829    $1,790   $1,761   $1,956
======================================================================

(1) Excludes nonaccrual loans held for sale of $112 million at March
    31, 2005. Prior periods also reflect the exclusion of nonaccrual
    loans held for sale of $76 million, $84 million, $99 million and
    $135 million at December 31, 2004, September 30, 2004, June 30,
    2004 and March 31, 2004. 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 purchased subprime loan portfolios and certain
    mortgages originated by Long Beach Mortgage Company.

(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.

SOURCE: Washington Mutual

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