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Washington Mutual Reports First Quarter 2006 Earnings Per Share of 98 Cents; Board of Directors Increases Cash Dividend to 51 Cents; WaMu Free Checking(TM) Account Fuels Record Account Growth

SEATTLE--(BUSINESS WIRE)--April 18, 2006-- Card Services Drives Strong Cross-Sell Results

Washington Mutual, Inc. (NYSE: WM) today reported first quarter 2006 net income of $985 million, or $0.98 per diluted share, compared with net income of $902 million, or $1.01 per diluted share, in the first quarter of 2005.

Washington Mutual's Board of Directors declared a cash dividend of 51 cents per share on the company's common stock, up from 50 cents per share in the previous quarter. Dividends on the common stock are payable on May 15, 2006 to shareholders of record as of April 28, 2006.

"We are very pleased with our first quarter results," said Kerry Killinger, Washington Mutual chairman and chief executive officer. "The company's strong performance demonstrates the benefits of our continued diversification and enhanced operational focus. This past quarter we had particularly strong results in Retail Banking and Card Services."

"These businesses added customers at a record pace and delivered significant revenue and earnings even in this difficult interest rate environment," Killinger added.

Earnings Highlights                          Three Months Ended
                                    ----------------------------------
                                     March 31, December 31,  March 31,
 (In millions, except per share          2006         2005       2005
  data)                             ---------    ---------  ---------
 Total revenue                      $   3,842    $   3,843  $   3,298
 Net income                               985          865        902
 Diluted earnings per common share       0.98         0.85       1.01

 Total assets, end of period        $ 348,667    $ 343,839  $ 319,696
    --  WaMu Free Checking(TM) account generates record level of new
        accounts. New product redefines free checking and adds more
        power to the company's very effective Retail Banking model.
        Supported by a new national advertising campaign, response to
        the product has contributed to record account growth. Net new
        checking account growth of 340,000 represents a 68 percent
        increase in account growth from a year ago.

    --  Card Services drives strong customer growth. The growth in
        both the number of customers and in average balances was
        fueled by successfully cross-selling credit cards to WaMu
        retail customers. During the quarter, Card Services opened
        256,000 WaMu retail credit card accounts for a total of
        417,000 new WaMu accounts since the company added Card
        Services in October.

    --  Strong credit quality results in lower provisioning. The
        company's credit performance continued to reflect the
        favorable consumer and housing environment. The credit card
        portfolio, in particular, demonstrated very low loss levels
        and stable delinquency rates. The change in bankruptcy law
        during last year's fourth quarter precipitated a spike in
        filings in that quarter which led to an unusually low level of
        charge-offs this quarter and contributed to a much lower
        provision for Card Services during the quarter.

    --  Expense management focused on driving improved productivity to
        fund company growth. The company's expense management is not
        just focused on cutting costs, it is focused on driving
        improved productivity so the company can fund its growth, as
        well as achieve its efficiency target. During the quarter, the
        efficiency ratio improved to 57.54 percent from 59.27 percent.

    FIRST QUARTER FINANCIAL SUMMARY

Financial Summary                            Three Months Ended
                                      --------------------------------
                                      March 31, December 31, March 31,
 (In millions)                            2006         2005      2005
 Income Statement                     --------     --------  --------
 Net interest income                  $  2,117     $  2,241  $  1,963
 Provision for loan and lease losses        82          217        16
 Noninterest income                      1,725        1,602     1,335
 Noninterest expense                     2,211        2,278     1,839
 Income taxes                              564          483       541
                                      --------     --------  --------
 Net income                           $    985     $    865  $    902
                                      ========     ========  ========
 Balance Sheet
 Average total assets                 $344,562     $349,931  $308,172
 Average total deposits                191,034      196,799   175,185

 Profitability Ratios
 Return on average common equity         14.18%       12.49%    16.63%
 Net interest margin                      2.75         2.88      2.83
 Efficiency ratio                        57.54        59.27     55.77
 Nonperforming assets/total assets        0.59         0.57      0.57
 Tangible equity/total tangible assets    5.85         5.72      5.03
    EARNINGS PERFORMANCE

    --  Net interest income impacted by rising short-term interest
        rates. Net interest income in the first quarter was down on a
        linked quarter basis as short-term interest rates increased
        and the yield curve continued to flatten. Compared with the
        first quarter a year ago, net interest income was up 8
        percent, which reflected a 12 percent increase in average
        assets including the addition of Card Services'
        higher-yielding credit card portfolio. Contributing to the 13
        basis points decline in the net interest margin on a linked
        quarter basis was the impact of higher interest rates and the
        securitization of high yielding credit card loans. The decline
        in the net interest margin compared with a year ago reflected
        the tightening of Fed Funds by 200 basis points to 4.75
        percent. In addition, in the first quarter of this year, the
        company adjusted its reporting for loan prepayment fees. The
        result of reclassifying these fees from noninterest income to
        interest income was an increase in the net interest margin of
        approximately 10 basis points for all prior periods, plus an
        additional 2 basis point decrease in the margin for the first
        quarter as prepayments slowed.

    --  Lower provision reflects continuing strong credit quality. The
        provision for loan and lease losses was $82 million in the
        first quarter compared with $217 million in the previous
        quarter. Card Services had a lower provision on a linked
        quarter basis due, in part, to a 40 percent decline in net
        charge-offs. During last year's fourth quarter, the company
        saw an unusually large number of credit card charge-offs due
        to a surge in bankruptcy filings in anticipation of the new
        bankruptcy law. Nonperforming assets as a percentage of total
        assets were up slightly totaling 59 basis points at quarter
        end, compared with 57 basis points at the end of the prior
        quarter and the end of the first quarter a year ago.

    --  Noninterest income up 8 percent on a linked quarter basis and
        29 percent year over year. Noninterest income of $1.73 billion
        in the first quarter was up from $1.60 billion in the fourth
        quarter of 2005 and included $134 million from the partial
        settlement of the Home Savings goodwill litigation. Compared
        with the prior year, the increase in noninterest income also
        reflected the inclusion of Card Services, which added
        approximately $570 million from the sale and servicing of
        consumer loans and credit card fees.

    --  Noninterest expense was down 3 percent from the prior quarter.
        Positive variances for the quarter included a lower level of
        professional fees while advertising costs were lower in
        anticipation of the March 13 new free checking product launch
        and national media campaign. The increase in expenses compared
        with a year ago primarily reflects the addition of Card
        Services and the company's growth initiatives, including the
        opening of 198 net new retail banking stores during the past
        twelve months.

    BALANCE SHEET ACTIVITY

    --  Company strategically manages balance sheet. Average assets
        were down 2 percent on a linked quarter basis due to a
        reduction in the balance of loans held for sale, partially
        offset by the addition of hybrid loans to portfolio to meet
        the company's asset/liability objectives. Compared with the
        first quarter of 2005, average assets were up 12 percent,
        reflecting the addition of approximately $13 billion of credit
        card assets during the fourth quarter and the company's strong
        asset generation performance during 2005.

    --  Average deposits lower, but end of period balances showed
        steady growth. Although down on an average basis, total
        deposits rose 4 percent from year end. The increase reflected
        significant growth in most product categories towards the end
        of the quarter. Compared with the first quarter of 2005,
        average deposits were up $15.85 billion, or 9 percent, due to
        the inclusion of deposits from Providian and growth in both
        retail and wholesale deposits.

    --  Management maintains strong capital position. The company's
        ratio of tangible equity to tangible assets was 5.85 percent
        at the end of the quarter. During the quarter, the company
        issued approximately $2 billion in Perpetual Non-Cumulative
        Preferred securities through a newly-established indirect
        subsidiary, Washington Mutual Preferred Funding LLC. These
        securities qualify as Tier 1 regulatory capital and are
        classified as minority interests on the balance sheet. The
        proceeds from these securities were used, in part, to
        repurchase shares of common stock. During the quarter, the
        company repurchased 47 million shares of common stock, 34
        million of which were pursuant to an accelerated share
        repurchase agreement entered into with a dealer in March. The
        accelerated share repurchase agreement allowed the company to
        purchase the shares immediately from a dealer, with the dealer
        purchasing the same number of shares in the open market over
        the next several months. Total shares outstanding at March 31
        of 959 million were down 4 percent from the end of 2005.

    FIRST QUARTER OPERATING SEGMENT RESULTS

    Retail Banking Group
Selected Segment Information                 Three Months Ended
                                      --------------------------------
                                      March 31, December 31, March 31,
 (In millions, except accounts and        2006         2005      2005
  households)                        ---------    --------- ---------
 Net interest income                 $   1,523    $   1,457 $   1,401
 Provision for loan and leases
  losses                                    50           42        37
 Noninterest income                        741          756       638
 Noninterest expense                     1,160        1,175     1,058
 Net income                                660          628       595

 Average loans                       $ 189,142    $ 183,780 $ 177,635
 Average retail deposits               139,062      140,212   132,982
 Net change in retail checking
  accounts                             340,157      203,190   202,134
 Net change in retail households       210,000      143,000   150,000
    --  Checking accounts top 10 million with boost from WaMu Free
        Checking(TM) account. During the quarter, the company launched
        its new Free Checking product and a new national advertising
        campaign. Customer reception has been strong, helping to drive
        the opening of 340,000 new checking accounts in the first
        quarter, for a 67 percent increase in new accounts compared
        with the prior quarter, and in attracting 210,000 net new
        retail households.

    --  Retail Banking continues to show great strength. Net income of
        $660 million was up 5 percent from the fourth quarter of 2005
        and up 11 percent from a year ago. Excluding the impact of
        portfolio management included in the segment, net income for
        the Retail Bank network was up 38 percent to $441 million from
        the same period a year ago.

    --  Retail Banking fees up 18 percent. Reflecting the strong
        growth in net new checking accounts and the positive effect of
        a change in fee structures, depositor and other retail banking
        fees of $578 million in the first quarter were up $88 million,
        or 18 percent, from the same quarter a year ago. The seasonal
        decline on a linked quarter basis of 1 percent compared
        favorably with a 5 percent decline for the same period a year
        ago.

    --  Small business activity continues its rapid growth. Focusing
        on the considerable growth opportunities in small business
        banking, the company opened 53,000 net new small business
        checking accounts during the quarter, up 28 percent from the
        prior quarter.

    Card Services Group (on a managed basis)
Selected Segment Information                 Three Months Ended
                                      --------------------------------
                                      March 31, December 31, March 31,
  (In millions)                           2006         2005      2005
                                      --------  -----------  --------
 Net interest income                 $     614    $     637         -
 Provision for loan and lease losses       330          454         -
 Noninterest income                        345          352         -
 Noninterest expense                       289          268         -
 Net income                                210          166         -

 Average managed receivables         $  20,086    $  19,472         -
 30+ day managed delinquency rate         5.18 %       5.07 %       -
 Managed net credit losses                5.79         7.28         -
    --  Average managed receivables top $20 billion with over 10
        million customer accounts. Despite what is normally a seasonal
        paydown period, managed receivable growth benefited from solid
        marketing efforts in the company's national programs and
        continued penetration of the WaMu retail customer base. During
        the quarter, Card Services opened approximately 750,000 new
        accounts, a third of which were WaMu retail customers. In
        addition, during the quarter, Card Services rolled out its
        branch-based preapproved direct marketing program.

    --  Card Services delivers strong results. The business continues
        to perform well with reported net income of $210 million, up
        27 percent from the prior quarter. The increase was positively
        affected by stronger credit quality which led to a lower level
        of provisioning than in the fourth quarter of 2005. In
        addition, the integration process is going well and exceeding
        initial projections.

    --  The credit quality of the card portfolio continues to be
        strong. The 30+ day managed delinquency rate at March 31 was
        5.18 percent of total managed receivables, up slightly from
        5.07 percent at December 31. Managed net credit losses, at
        5.79 percent were down from the fourth quarter's 7.28 percent,
        a quarter during which bankruptcy-related charge-offs had
        increased significantly as borrowers sought bankruptcy
        protection in advance of the effective date of bankruptcy
        reforms.

    Commercial Group

Selected Segment Information                 Three Months Ended
                                      --------------------------------
                                      March 31, December 31, March 31,
 (In millions)                            2006         2005      2005
                                      --------     --------  --------
 Net interest income                  $    198     $    222  $    229
 Noninterest income                         13          109        75
 Noninterest expense                        68           66        54
 Net income                                 88          164       155

 Loan volume                          $  2,769    $  2,932   $  2,433
 Average loans                          31,011      30,950     29,563
    --  Commercial Group lending volume continues to be strong.
        Despite higher interest rates, total loan volume of $2.77
        billion remained robust and reflects the company's continued
        leading position in multi-family lending.

    --  Net income decline reflects higher short-term interest rates
        and asset sales in prior periods. During the quarter, net
        interest income declined 11 percent as borrowing costs rose
        more quickly than assets repriced. Noninterest income was down
        on a comparable basis due to asset sales in prior periods.
        During the fourth quarter, the company recorded a $55 million
        gain from the sale of commercial mortgage-backed securities,
        and in the first quarter a year ago, the sale of a real estate
        investment property generated $59 million in gain.

    Home Loans Group

Selected Segment Information                Three Months Ended
                                     ---------------------------------
                                     March 31,  December 31, March 31,
 (In millions)                           2006          2005      2005
                                     --------      --------  --------
 Net interest income                 $    268      $    415  $    396
 Noninterest income                       408           324       747
 Noninterest expense                      599           656       611
 Net income                                38            45       323

 Loan volume                         $ 44,998      $ 48,701  $ 44,495
 Average loans                         34,586        51,073    38,903
    --  Difficult interest rate environment continues. The increase in
        short-term interest rates and the flat yield curve, in
        conjunction with a smaller portfolio of loans outstanding,
        contributed to the 35 percent decline in net interest income
        on a linked quarter basis.

    --  Noninterest income impacted by difficult environment. The
        slowing housing market contributed to the decline in gain on
        sale of loans compared with the prior quarter and last year's
        first quarter. However, while sales volume was down from the
        prior quarter, the gain on sale margin improved. As expected,
        higher short-term interest rates and a flat yield curve
        significantly increased the cost of MSR risk management during
        the first quarter when compared with the prior periods. During
        the quarter, the total cost of MSR management was $151 million
        compared with a pro forma cost of $14 million in the fourth
        quarter of last year and pro forma net revenue of $213 million
        in the first quarter of last year. On a linked quarter basis,
        the lower gain on sale and higher MSR cost was offset by an
        increase in net mortgage loan servicing revenue, higher
        trading asset income and higher intersegment revenues.

    --  Efficiency initiatives reduce expenses. Noninterest expense of
        $599 million in the first quarter of 2006 was down as
        management continued to drive productivity and efficiency
        improvements. In addition, during the quarter, the company
        announced the consolidation of 26 processing offices down to
        16 locations and the elimination of approximately 2,500
        positions. Also, the realignment of Long Beach Mortgage under
        one management team in the Home Loans group will streamline
        and simplify operations.

    COMPANY UPDATES

    --  On March 3, 2006, the company announced the nomination of
        Regina Montoya for election to its board of directors.

    --  The company recently hired James Corcoran as the new President
        of Retail Banking.

    About Washington Mutual

Washington Mutual is one of the nation's leading consumer and small business banks. At March 31, 2006, Washington Mutual and its subsidiaries had assets of $348.67 billion. The company was established in 1889 and currently operates more than 2,600 consumer and small business banking stores 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 Tuesday, April 18, 2006, at 6:00 p.m. EDT and will be hosted by Kerry Killinger, chairman and chief executive officer and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-946-6301. Participants calling from outside the United States may dial 210-234-0006. The passcode "WaMu" is required to access the call. Via the Internet, the conference call is available on the Investor

Relations portion of the company's web site at www.wamu.com/ir. A transcript of the prepared remarks will be available on the company's web site prior to the call and archived for 30 days. A recording of the conference call will be available after 9:00 p.m. EDT on Tuesday, April 18, 2006, through 11:59 p.m. EDT on Friday, April 28, 2006. The recorded message will be available at 800-337-5620. Callers from outside the United States may dial 203-369-3253.

Forward Looking Statement

Our Form 10-K for 2005 and other documents that we file with the Securities and Exchange Commission have forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements provide our expectations or predictions of future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. These statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. There are a number of factors, many of which are beyond our control that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Some of these factors are described in detail in our Form 10-K for 2005 and include: volatile interest rates impact the mortgage banking business; rising interest rates, unemployment and decreases in housing prices impact credit performance; risks related to the option adjustable-rate mortgage product; risks related to subprime lending; risks related to the integration of the Card Services business; risks related to credit card operations; changes in the regulation of financial services companies, housing government-sponsored enterprises and credit card lenders; competition from banking and nonbanking companies; general business and economic conditions, including movements in interest rates, the slope of the yield curve, and the potential overextension of housing prices in certain geographic markets; and negative public opinion impacts the company's reputation. There are other factors not described in the Form 10-K for 2005 and which are beyond the Company's ability to anticipate or control that could cause results to differ.


WM-1

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

                                              Quarter Ended
                                     ---------------------------------
                                       Mar. 31,    Dec. 31, Sept. 30,
                                         2006        2005      2005
                                     ----------- ----------- ---------
PROFITABILITY
 Net income                         $      985  $      865  $    821
 Net interest income                     2,117       2,241     2,005
 Noninterest income                      1,725       1,602     1,285
 Noninterest expense                     2,211       2,278     1,925

 Diluted earnings per common share        0.98        0.85      0.92

 Diluted weighted average number of
  common shares outstanding(1)       1,003,460   1,011,395   888,495
 Net interest margin                      2.75 %      2.88 %    2.73 %
 Dividends declared per common share$     0.50  $     0.49  $   0.48
 Book value per common share(2)          27.45       27.95     25.92
 Return on average assets                 1.14 %      0.99 %    1.00 %
 Return on average common equity         14.18       12.49     14.66
 Efficiency ratio(3)                     57.54       59.27     58.52

ASSET QUALITY
 Nonperforming assets/total
  assets(4)(5)                            0.59 %      0.57 %    0.52 %
 Allowance as a percentage of total
  loans held in portfolio(5)              0.68        0.74      0.58
 Provision for loan and lease losses$       82  $      217  $     52
 Net charge-offs                           105         137        31

CAPITAL ADEQUACY(5)
 Capital Ratios at WMI-consolidated
  level:
     Tangible equity(6) to total
      tangible assets(6)                  5.85 %      5.72 %    5.09 %
     Estimated total risk-based
      capital to total risk-weighted
      assets(7)                          10.94       10.90     10.71
 Capital Ratios at WMB-bank only
  level
    (well-capitalized minimum)(8):
     Tier 1 capital to adjusted
      total assets (5.00%)                6.86        6.56      5.85
     Adjusted tier 1 capital to
      total risk-weighted assets
      (6.00%)                             9.12        8.61      8.47
     Total risk-based capital to
      total risk-weighted assets
      (10.00%)                           11.97       11.62     11.48

SUPPLEMENTAL DATA
 Average balance sheet:
    Total loans held in portfolio   $  232,505  $  227,568  $213,016
    Total interest-earning assets      307,825     314,531   296,568
    Total assets                       344,562     349,931   327,292
    Total deposits                     191,034     196,799   188,320
    Total stockholders' equity          27,798      27,708    22,412
 Period-end balance sheet:
    Total loans held in portfolio,
     net of allowance for loan
      and lease losses                 238,362     227,937   216,930
    Total assets                       348,667     343,839   333,622
    Total deposits                     200,002     193,167   190,412
    Total stockholders' equity          26,156      27,616    22,596
    Common shares outstanding at the
     end of period(1)(9)               958,819     993,914   877,651
    Employees at end of period          60,381      60,798    56,214



                                                     Quarter Ended
                                                  --------------------
                                                   June 30,  Mar. 31,
                                                     2005      2005
                                                  ---------- ---------
PROFITABILITY
 Net income                                       $    844  $    902
 Net interest income                                 2,009     1,963
 Noninterest income                                  1,184     1,335
 Noninterest expense                                 1,828     1,839

 Diluted earnings per common share                    0.95      1.01

 Diluted weighted average number
  of common shares outstanding(1)                  887,250   888,789
 Net interest margin                                  2.77 %    2.83 %
 Dividends declared per common share              $   0.47  $   0.46
 Book value per common share(2)                      25.62     24.98
 Return on average assets                             1.05 %    1.17 %
 Return on average common equity                     15.33     16.63
 Efficiency ratio(3)                                 57.24     55.77

ASSET QUALITY
 Nonperforming assets/total assets(4)(5)              0.53 %    0.57 %
 Allowance as a percentage of total loans held in
  portfolio(5)                                        0.58      0.60
 Provision for loan and lease losses              $     31  $     16
 Net charge-offs                                        39        37

CAPITAL ADEQUACY(5)
 Capital Ratios at WMI-consolidated level:
     Tangible equity(6) to total tangible
      assets(6)                                       5.13 %    5.03 %
     Estimated total risk-based capital to total
      risk-weighted assets(7)                        11.10     11.21
 Capital Ratios at WMB-bank only level
    (well-capitalized minimum)(8):
     Tier 1 capital to adjusted total assets
      (5.00%)                                         5.74      5.69
     Adjusted tier 1 capital to total risk-
      weighted assets (6.00%)                         8.38      8.40
     Total risk-based capital to total risk-
      weighted assets (10.00%)                       11.51     11.68

SUPPLEMENTAL DATA
 Average balance sheet:
    Total loans held in portfolio                 $213,638  $207,320
    Total interest-earning assets                  290,876   277,080
    Total assets                                   320,845   308,172
    Total deposits                                 183,521   175,185
    Total stockholders' equity                      22,014    21,680
 Period-end balance sheet:
    Total loans held in portfolio, net of
     allowance for loan
      and lease losses                             211,494   212,834
    Total assets                                   323,533   319,696
    Total deposits                                 184,317   183,631
    Total stockholders' equity                      22,350    21,767
    Common shares outstanding at the end of
     period(1)(9)                                  878,384   877,287
    Employees at end of period                      54,377    52,488


(1) Number of shares in thousands.

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

(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 period end.

(6) Includes MSR, but excludes unrealized net gain/loss on available-
    for-sale securities and derivatives, goodwill and intangible
    assets, all of which are applied to both the numerator and the
    denominator.  Calculation of ratio at March 31, 2006 includes
    minority interests of $1.97 billion in the numerator.

(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 requirements.

(8) Capital ratios for Washington Mutual Bank ("WMB") at March 31,
    2006 are preliminary.

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


WM-2

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

                                                   Quarter Ended
                                               -----------------------
                                                 Mar. 31,    Dec. 31,
                                                   2006        2005
                                               ----------- -----------
Interest Income
 Loans held for sale                          $      466  $      676
 Loans held in portfolio                           3,576       3,431
 Available-for-sale securities                       322         303
 Trading assets                                      198         185
 Other interest and dividend income                   95          73
---------------------------------------------- ----------- -----------
            Total interest income                  4,657       4,668
Interest Expense
 Deposits                                          1,221       1,184
 Borrowings                                        1,319       1,243
---------------------------------------------- ----------- -----------
            Total interest expense                 2,540       2,427
---------------------------------------------- ----------- -----------
             Net interest income                   2,117       2,241
 Provision for loan and lease losses                  82         217
---------------------------------------------- ----------- -----------
             Net interest income after
              provision for loan and lease
              losses                               2,035       2,024
Noninterest Income
 Revenue from sales and servicing of home
  mortgage loans                                     263         418
 Revenue from sales and servicing of consumer
  loans                                              431         409
 Depositor and other retail banking fees             578         586
 Credit card fees                                    138         139
 Securities fees and commissions                     119         114
 Insurance income                                     33          37
 Trading assets income (loss)                        (68)       (273)
 Gain (loss) from other available-for-sale
  securities                                          (7)         46
 Other income                                        238         126
---------------------------------------------- ----------- -----------
                  Total noninterest income         1,725       1,602
Noninterest Expense
 Compensation and benefits(1)                      1,044       1,037
 Occupancy and equipment                             392         399
 Telecommunications and outsourced information
  services                                           135         139
 Depositor and other retail banking losses            56          60
 Advertising and promotion                            96         114
 Professional fees                                    36          63
 Other expense                                       452         466
---------------------------------------------- ----------- -----------
             Total noninterest expense             2,211       2,278
---------------------------------------------- ----------- -----------
             Income before income taxes            1,549       1,348
             Income taxes                            564         483
---------------------------------------------- ----------- -----------
Net Income                                    $      985  $      865
============================================== =========== ===========

Earnings Per Common Share:
      Basic                                   $     1.01  $     0.88
      Diluted                                       0.98        0.85

Dividends declared per common share                 0.50        0.49
Basic weighted average number of common shares
 outstanding (in thousands)                      973,614     980,084
Diluted weighted average number of common
 shares outstanding (in thousands)             1,003,460   1,011,395



                                                 Quarter Ended
                                         -----------------------------
                                         Sept. 30,  June 30,  Mar. 31,
                                            2005      2005      2005
                                         ---------- --------- --------
Interest Income
 Loans held for sale                     $    665  $    580  $    472
 Loans held in portfolio                    2,947     2,833     2,615
 Available-for-sale securities                238       234       224
 Trading assets                               114        91        79
 Other interest and dividend income            65        51        43
----------------------------------------- --------- --------- --------
            Total interest income           4,029     3,789     3,433
Interest Expense
 Deposits                                     996       852       696
 Borrowings                                 1,028       928       774
----------------------------------------- --------- --------- --------
            Total interest expense          2,024     1,780     1,470
----------------------------------------- --------- --------- --------
             Net interest income            2,005     2,009     1,963
 Provision for loan and lease losses           52        31        16
----------------------------------------- --------- --------- --------
             Net interest income after
              provision for loan and
              lease losses                  1,953     1,978     1,947
Noninterest Income
 Revenue from sales and servicing of home
  mortgage loans                              710       114       775
 Revenue from sales and servicing of
  consumer loans                                2         2         1
 Depositor and other retail banking fees      578       540       490
 Credit card fees                               -         -         -
 Securities fees and commissions              111       112       110
 Insurance income                              42        47        46
 Trading assets income (loss)                (171)      285       (98)
 Gain (loss) from other available-for-
  sale securities                             (32)       25      (122)
 Other income                                  45        59       133
----------------------------------------- --------- --------- --------
                  Total noninterest
                   income                   1,285     1,184     1,335
Noninterest Expense
 Compensation and benefits(1)                 939       886       876
 Occupancy and equipment                      372       350       402
 Telecommunications and outsourced
  information services                        108       100       104
 Depositor and other retail banking
  losses                                       61        49        55
 Advertising and promotion                     81        77        55
 Professional fees                             48        38        34
 Other expense                                316       328       313
----------------------------------------- --------- --------- --------
             Total noninterest expense      1,925     1,828     1,839
----------------------------------------- --------- --------- --------
             Income before income taxes     1,313     1,334     1,443
             Income taxes                     492       490       541
----------------------------------------- --------- --------- --------
Net Income                               $    821  $    844  $    902
========================================= ========= ========= ========

Earnings Per Common Share:
      Basic                              $   0.95  $   0.98  $   1.04
      Diluted                                0.92      0.95      1.01

Dividends declared per common share          0.48      0.47      0.46
Basic weighted average number of common
 shares outstanding (in thousands)        866,541   865,221   864,933
Diluted weighted average number of common
 shares outstanding (in thousands)        888,495   887,250   888,789


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


WM-3

                       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,
                        2006      2005      2005      2005      2005
                      --------- --------- --------- --------- --------
Assets
 Cash and cash
  equivalents        $  5,868  $  6,214  $  4,924  $  4,614  $  4,811
 Federal funds sold
  and securities
  purchased under
  agreements to
  resell                3,995     2,137     3,194       625     1,152
 Trading assets         9,958    10,999     7,351     5,687     6,066
 Available-for-sale
  securities, total
  amortized cost of
  $27,424, $24,810,
  $20,757, $18,999
  and $20,569:
  Mortgage-backed
   securities          21,388    20,648    17,161    14,396    15,947
  Investment
   securities           5,586     4,011     3,603     4,852     4,756
 Loans held for sale   25,020    33,582    48,018    51,122    41,197
 Loans held in
  portfolio           240,004   229,632   218,194   212,737   214,114
 Allowance for loan
  and lease losses     (1,642)   (1,695)   (1,264)   (1,243)   (1,280)
--------------------- --------- --------- --------- --------- --------
    Total loans held
     in portfolio,
     net of allowance
     for loan and
     lease losses     238,362   227,937   216,930   211,494   212,834
 Investment in
  Federal Home Loan
  Banks                 4,200     4,257     4,228     4,194     3,973
 Mortgage servicing
  rights                8,736     8,041     7,042     5,730     6,802
 Goodwill               8,298     8,298     6,196     6,196     6,196
 Other assets          17,256    17,715    14,975    14,623    15,962
--------------------- --------- --------- --------- --------- --------
    Total assets     $348,667  $343,839  $333,622  $323,533  $319,696
===================== ========= ========= ========= ========= ========
Liabilities
 Deposits:
  Noninterest-bearing
   deposits          $ 36,531  $ 34,014  $ 36,850  $ 35,518  $ 34,941
  Interest-bearing
   deposits           163,471   159,153   153,562   148,799   148,690
--------------------- --------- --------- --------- --------- --------
    Total deposits    200,002   193,167   190,412   184,317   183,631
 Federal funds
  purchased and
  commercial paper      6,841     7,081     7,229     5,864     2,053
 Securities sold
  under agreements
  to repurchase        15,471    15,532    14,508    14,089    16,716
 Advances from
  Federal Home Loan
  Banks                65,283    68,771    69,405    71,534    66,730
 Other borrowings      24,872    23,777    23,994    20,752    21,938
 Other liabilities      8,069     7,880     5,463     4,614     6,848
 Minority
  interests(1)          1,973        15        15        13        13
--------------------- --------- --------- --------- --------- --------
    Total
     liabilities      322,511   316,223   311,026   301,183   297,929
Stockholders' equity   26,156    27,616    22,596    22,350    21,767
--------------------- --------- --------- --------- --------- --------
    Total
     liabilities and
     stockholders'
     equity          $348,667  $343,839  $333,622  $323,533  $319,696
===================== ========= ========= ========= ========= ========

(1) Includes the issuance of perpetual non-cumulative preferred
    securities by Washington Mutual Preferred Funding, LLC, an
    indirect subsidiary of Washington Mutual, Inc.


WM-4

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

                                        Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                           2006     2005     2005      2005     2005
----------------------------------------------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                   $27,616  $22,596  $22,350  $21,767  $21,226
Net income                    985      865      821      844      902
Cumulative effect of a
 change in accounting
 principle, net of income
 taxes(1)                      29        -        -        -        -
Other comprehensive
 (loss) income, net of
 income taxes                (213)     (91)    (158)      98       (8)
Cash dividends declared
 on common stock             (499)    (480)    (419)    (409)    (402)
Common stock repurchased
 and retired               (2,108)    (723)     (98)       -     (100)
Common stock issued for
 acquisition                    -    5,030        -        -        -
Common stock issued           346      419      100       50      149
----------------------------------------------------------------------
Balance, end of period    $26,156  $27,616  $22,596  $22,350  $21,767
======================================================================

(1) As of January 1, 2006, the Company prospectively applied Statement
    of Financial Accounting Standards No. 156, Accounting for
    Servicing of Financial Assets ("Statement"). This Statement amends
    Statement No. 140, Accounting for Transfers and Servicing of
    Financial Assets and Extinguishments of Liabilities, and permits
    an entity to choose either to continue the current practice of
    amortizing servicing assets and assess such assets for impairment,
    or to report servicing assets at fair value. The Company has
    elected to report all classes of servicing assets at fair value.
    This Statement also permits the transfer of available-for-sale
    securities being utilized as MSR risk management instruments to
    trading securities. The cumulative effects, net of income taxes,
    applied to January 1, 2006 retained earnings was an increase of
    $35 million from the MSR fair value election and a decrease of $6
    million from the transfer of AFS securities, designated as MSR
    risk management instruments, to the trading portfolio.


WM-5

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

                                      Quarter Ended
----------------------------------------------------------------------
                      Mar. 31,  Dec. 31, Sept. 30,  June 30,  Mar. 31,
                        2006      2005     2005       2005      2005
----------------------------------------------------------------------
RETAIL BANKING GROUP
 Condensed income
  statement:
  Net interest
   income            $  1,523  $  1,457  $  1,417  $  1,458  $  1,401
  Provision for loan
   and lease losses        50        42        47        40        37
  Noninterest income      741       756       716       684       638
  Inter-segment
   revenue                 14         8        12        11        12
  Noninterest expense   1,160     1,175     1,131     1,090     1,058
----------------------------------------------------------------------
  Income before
   income taxes         1,068     1,004       967     1,023       956
  Income taxes            408       376       367       387       361
----------------------------------------------------------------------
    Net income       $    660  $    628  $    600  $    636  $    595
======================================================================
 Performance and
  other data:
  Efficiency ratio(1)   50.91%    52.94%    52.75%    50.62%    51.59%
  Average loans      $189,142  $183,780  $179,361  $181,396  $177,635
  Average assets      202,235   196,872   191,929   194,029   190,496
  Average deposits:
   Checking deposits:
   Noninterest
    bearing            20,346    19,953    19,350    18,868    17,588
   Interest bearing    40,343    43,192    45,186    47,531    49,777
                      ------------------------------------------------
   Total checking
    deposits           60,689    63,145    64,536    66,399    67,365
   Savings and money
    market deposits    37,433    36,594    35,517    34,875    36,100
   Time deposits       40,940    40,473    38,688    34,265    29,517
                      ------------------------------------------------
     Average total
      deposits        139,062   140,212   138,741   135,539   132,982
  Loan volume           7,255    11,563    11,191    11,704    12,493
  Employees at end of
   period              30,336    30,532    30,123    29,046    27,699
CARD SERVICES GROUP
 (managed basis
 presentation)
 Condensed income
  statement(2):
  Net interest
   income            $    614  $    637
  Provision for loan
   and lease losses       330       454
  Noninterest income      345       352
  Noninterest expense     289       268
----------------------------------------------------------------------
  Income before
   income taxes           340       267
  Income taxes            130       101
----------------------------------------------------------------------
    Net income       $    210  $    166
======================================================================
 Performance and
  other data:
 Efficiency ratio(1)    30.15%    27.08%
 Average loans       $ 20,086  $ 19,472
 Average assets        22,764    22,198
 Employees at end of
  period                2,871     3,124
COMMERCIAL GROUP(3)
 Condensed income
  statement:
 Net interest income $    198  $    222  $    222  $    218  $    229
 Provision for loan
  and lease losses          1         1         1         1         1
 Noninterest income        13       109         8         3        75
 Noninterest expense       68        66        63        57        54
----------------------------------------------------------------------
 Income before income
  taxes                   142       264       166       163       249
 Income taxes              54       100        62        61        94
----------------------------------------------------------------------
   Net income        $     88  $    164  $    104  $    102  $    155
======================================================================
 Performance and
  other data:
  Efficiency ratio(1)   32.37%    19.85%    27.44%    25.84%    17.83%
  Average loans      $ 31,011  $ 30,950  $ 30,455  $ 29,597  $ 29,563
  Average assets       33,833    34,443    33,854    33,078    32,726
  Average deposits      2,263     2,428     2,485     2,462     2,998
  Loan volume           2,769     2,932     3,003     2,864     2,433
  Employees at end of
   period               1,351     1,334     1,272     1,284     1,268
HOME LOANS GROUP(3)
 Condensed income
  statement:
  Net interest
   income            $    268  $    415  $    480  $    449  $    396
  Provision for loan
   and lease losses         1         1         1         -         1
  Noninterest income      408       324       659       668       747
  Inter-segment
   expense                 14         8        12        11        12
  Noninterest expense     599       656       640       637       611
----------------------------------------------------------------------
  Income before
   income taxes            62        74       486       469       519
  Income taxes             24        29       183       177       196
----------------------------------------------------------------------
    Net income       $     38  $     45  $    303  $    292  $    323
======================================================================
 Performance and
  other data:
  Efficiency ratio(1)   90.47%    89.69%    56.76%    57.58%    53.95%
  Average loans      $ 34,586  $ 51,073  $ 53,424  $ 48,040  $ 38,903
  Average assets       64,198    78,438    75,213    69,005    61,038
  Average deposits     16,530    19,134    21,563    19,119    17,408
  Loan volume          44,998    48,701    56,471    53,030    44,495
  Employees at end of
   period              16,017    16,171    15,669    15,055    14,815


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

--------------------------

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

(2) Operating results for the Card Services Group are presented on a
    managed basis as the Company treats securitized and sold credit
    card receivables as if they were still on the balance sheet in
    evaluating the overall performance of this operating segment. A
    managed basis presentation excludes the impact of securitizations,
    including their effect on income, the provision for credit losses
    and average loans and assets. Securitization adjustments to arrive
    at the reported GAAP results are eliminated within Reconciling
    Adjustments.

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


WM-6

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

                                       Quarter Ended
----------------------------------------------------------------------
(This table is continued from "WM-5".)

                     Mar. 31,  Dec. 31,  Sept. 30,  June 30,  Mar. 31,
                       2006      2005      2005       2005      2005
----------------------------------------------------------------------
CORPORATE
 SUPPORT/TREASURY
 AND OTHER
 Condensed income
  statement:
   Net interest
    expense          $   (173) $   (196) $   (229) $   (230) $   (176)
   Noninterest
    income (expense)      173        29       (48)      (36)      (63)
   Noninterest
    expense                95       113        91        44       116
----------------------------------------------------------------------
   Loss before
    income taxes          (95)     (280)     (368)     (310)     (355)
   Income tax
    benefit               (52)     (111)     (150)     (126)     (144)
----------------------------------------------------------------------
       Net loss      $    (43) $   (169) $   (218) $   (184) $   (211)
======================================================================
 Performance and
  other data:
   Average loans     $  1,142  $  1,126  $  1,073  $  1,030  $  1,082
   Average assets      33,452    28,963    28,023    26,498    25,713
   Average deposits    33,179    35,025    25,531    26,401    21,797
   Loan volume             24        96        67        20        94
   Employees at end
    of period           9,806     9,637     9,150     8,992     8,706

RECONCILING
 ADJUSTMENTS
 Condensed income
  statement:
   Net interest
    income(3)        $    119  $    115  $    115  $    114  $    113
   Provision
    (reversal of
    reserve) for
    loan and lease
    losses(4)             (75)      (22)        3       (10)      (23)
   Noninterest
    income
    (expense)(5)         (162)     (118)      (50)     (135)      (62)
   Securitization
    adjustments:(2)
       Net interest
        income           (432)     (409)        -         -         -
       Provision
        (reversal of
        reserve) for
        loan and
        lease losses     (225)     (259)        -         -         -
       Noninterest
        income
        (expense)         207       150         -         -         -
----------------------------------------------------------------------
   Income (loss)
    before income
    taxes                  32        19        62       (11)       74
   Income taxes
    (benefit)(6)            -       (12)       30        (9)       34
----------------------------------------------------------------------
       Net income
        (loss)       $     32  $     31  $     32  $     (2) $     40
======================================================================
 Performance and
  other data:
   Average loans(7)  $ (1,534) $ (1,516) $ (1,550) $ (1,541) $ (1,556)
   Average
    assets(7)(8)       (1,701)   (1,716)   (1,727)   (1,765)   (1,801)
   Securitization
    adjustments:(2)
       Average loans  (12,107)  (11,011)        -         -         -
       Average
        assets        (10,219)   (9,267)        -         -         -

TOTAL CONSOLIDATED
 Condensed income
  statement:
   Net interest
    income           $  2,117  $  2,241  $  2,005  $  2,009  $  1,963
   Provision for
    loan and lease
    losses                 82       217        52        31        16
   Noninterest
    income              1,725     1,602     1,285     1,184     1,335
   Noninterest
    expense             2,211     2,278     1,925     1,828     1,839
----------------------------------------------------------------------
   Income before
    income taxes        1,549     1,348     1,313     1,334     1,443
   Income taxes           564       483       492       490       541
----------------------------------------------------------------------
       Net income    $    985  $    865  $    821  $    844  $    902
======================================================================
 Performance and
  other data:
   Efficiency
    ratio(1)            57.54%    59.27%    58.52%    57.24%    55.77%
   Average loans     $262,326  $273,874  $262,763  $258,522  $245,627
   Average assets     344,562   349,931   327,292   320,845   308,172
   Average deposits   191,034   196,799   188,320   183,521   175,185
   Loan volume         55,046    63,292    70,732    67,618    59,515
   Employees at end
    of period          60,381    60,798    56,214    54,377    52,488

--------------------

(1) See note 1 on preceding table.

(2) See note 2 on preceding table.

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

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

(5) Represents the difference between gain from mortgage loans
    primarily recorded by the Home Loans Group and the gain from
    mortgage loans recognized in the Company's Consolidated Statements
    of Income. A substantial amount of loans originated or purchased
    by this segment are considered to be salable for management
    reporting purposes.

(6) Represents the tax effect of reconciling adjustments.

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

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

-------------------------------------------------
                  Quarter Ended
-------------------------------------------------
Mar. 31,  Dec. 31,  Sept. 30,  June 30,  Mar. 31,
  2006      2005      2005       2005      2005
-------------------------------------------------
$  (167)  $  (200) $    (177) $   (224) $   (245)
-------------------------------------------------


WM-7

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

                                        Quarter Ended
----------------------------------------------------------------------
                            Mar. 31, 2006           Dec. 31, 2005
                       ----------------------- -----------------------
                                      Interest                Interest
                                      Income/                 Income/
                        Balance  Rate Expense   Balance  Rate Expense
----------------------------------------------------------------------
Average Balances and
 Weighted Average
 Interest Rates
Assets
Interest-earning
 assets:
  Federal funds sold
   and securities
   purchased under
   agreements to
   resell              $  3,754  4.62% $   43  $  2,380  4.01% $   24
  Trading assets         11,692  6.80     198    10,330  7.13     185
  Available-for-sale
   securities(1):
   Mortgage-backed
    securities           20,144  5.29     266    19,135  5.25     252
   Investment
    securities            4,845  4.62      56     4,316  4.75      51
  Loans held for
   sale(2)               29,821  6.25     466    46,306  5.82     676
  Loans held in
   portfolio(2):
   Loans secured by
    real estate:
    Home(3)             117,720  5.58   1,643   111,126  5.30   1,472
    Specialty mortgage
     finance(4)          19,956  5.92     295    22,415  6.04     339
--------------------------------        ------  --------        ------
        Total home
         loans          137,676  5.63   1,938   133,541  5.42   1,811
    Home equity loans
     and lines of
     credit              51,331  6.97     884    50,464  6.55     832
    Home
     construction(5)      2,059  6.34      33     2,008  6.35      32
    Multi-family         25,758  5.92     382    25,312  5.77     365
    Other real estate     5,157  6.84      88     4,953  7.38      92
--------------------------------        ------  --------        ------
        Total loans
         secured by
         real estate    221,981  6.01   3,325   216,278  5.78   3,132
   Consumer:
    Credit card           7,808 10.74     206     8,259 11.96     249
    Other                   622 11.03      17       654 10.79      18
   Commercial business    2,094  5.42      28     2,377  5.28      32
--------------------------------        ------  --------        ------
        Total loans
         held in
         portfolio      232,505  6.18   3,576   227,568  6.02   3,431
 Other(6)                 5,064  4.17      52     4,496  4.28      49
--------------------------------        ------  --------        ------
        Total
         interest-
         earning
         assets         307,825  6.07   4,657   314,531  5.92   4,668
Noninterest-earning
 assets:
 Mortgage servicing
  rights                  8,260                   7,680
 Goodwill                 8,298                   8,247
 Other assets            20,179                  19,473
--------------------------------                --------
    Total assets       $344,562                $349,931
================================                ========
Liabilities
Interest-bearing
 liabilities:
  Deposits:
   Interest-bearing
    checking deposits  $ 40,436  2.29     228  $ 43,302  2.23     243
   Savings and money
    market deposits      44,816  2.38     263    43,831  2.09     231
   Time deposits         73,182  4.02     730    74,300  3.77     710
--------------------------------        ------  --------        ------
        Total
         interest-
         bearing
         deposits       158,434  3.11   1,221   161,433  2.90   1,184
  Federal funds
   purchased and
   commercial paper       7,463  4.46      83     8,236  4.07      85
  Securities sold
   under agreements to
   repurchase            15,280  4.46     170    15,330  4.09     160
  Advances from
   Federal Home Loan
   Banks                 66,995  4.46     746    70,113  4.06     726
  Other                  26,636  4.81     320    24,715  4.38     272
--------------------------------        ------  --------        ------
        Total
         interest-
         bearing
         liabilities    274,808  3.72   2,540   279,827  3.42   2,427
Noninterest-bearing
 sources:
  Noninterest-bearing
   deposits              32,600                  35,366
  Other liabilities       8,804                   7,015
  Minority interests        552                      15
  Stockholders' equity   27,798                  27,708
--------------------------------                --------
    Total liabilities
     and stockholders'
     equity            $344,562                $349,931
================================                ========
  Net interest spread
   and net interest
   income                        2.35  $2,117            2.50  $2,241
                                        ======                  ======
  Impact of
   noninterest-bearing
   sources                       0.40                    0.38
  Net interest margin            2.75                    2.88



                                                   Quarter Ended
----------------------------------------------------------------------
                                                   Mar. 31, 2005
                                             -------------------------
                                                              Interest
                                                              Income/
                                              Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets:
  Federal funds sold and securities
   purchased under agreements to resell      $  1,354   2.55% $     9
  Trading assets                                5,713   5.54       79
  Available-for-sale securities(1):
   Mortgage-backed securities                  15,487   4.45      173
   Investment securities                        4,627   4.44       51
  Loans held for sale(2)                       38,307   4.94      472
  Loans held in portfolio(2):
   Loans secured by real estate:
    Home(3)                                   110,131   4.65    1,280
    Specialty mortgage finance(4)              18,554   5.73      266
------------------------------------------------------         -------
        Total home loans                      128,685   4.81    1,546
    Home equity loans and lines of credit      44,679   5.44      601
    Home construction(5)                        2,242   5.77       32
    Multi-family                               22,667   5.08      288
    Other real estate                           5,425   6.71       91
------------------------------------------------------         -------
        Total loans secured by real estate    203,698   5.04    2,558
   Consumer:
    Credit card                                     -      -        -
    Other                                         770  10.50       20
   Commercial business                          2,852   5.25       37
------------------------------------------------------         -------
        Total loans held in portfolio         207,320   5.06    2,615
 Other(6)                                       4,272   3.21       34
------------------------------------------------------         -------
        Total interest-earning assets         277,080   4.97    3,433
Noninterest-earning assets:
 Mortgage servicing rights                      6,090
 Goodwill                                       6,196
 Other assets                                  18,806
------------------------------------------------------
    Total assets                             $308,172
======================================================
Liabilities
Interest-bearing liabilities:
  Deposits:
   Interest-bearing checking deposits        $ 49,917   1.63      201
   Savings and money market deposits           41,997   1.42      147
   Time deposits                               50,725   2.77      348
------------------------------------------------------         -------
        Total interest-bearing deposits       142,639   1.97      696
  Federal funds purchased and commercial
   paper                                        3,486   2.49       22
  Securities sold under agreements to
   repurchase                                  16,621   2.65      110
  Advances from Federal Home Loan Banks        66,591   2.82      469
  Other                                        18,400   3.78      173
------------------------------------------------------         -------
        Total interest-bearing liabilities    247,737   2.39    1,470
Noninterest-bearing sources:
  Noninterest-bearing deposits                 32,546
  Other liabilities                             6,196
  Minority interests                               13
  Stockholders' equity                         21,680
------------------------------------------------------
    Total liabilities and stockholders'
     equity                                  $308,172
======================================================
  Net interest spread and net interest
   income                                               2.58  $ 1,963
                                                               =======
  Impact of noninterest-bearing sources                 0.25
  Net interest margin                                   2.83

--------------------

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

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

(3) For the three months ended March 31, 2006, December 31, 2005 and
    March 31, 2005, deferred interest recognized in earnings that
    resulted from negative amortization within the Option ARM
    portfolio totaled $203 million, $140 million and $25 million.

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

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

(6) Interest-earning assets in nonaccrual status (other than loans)
    and related income, if any, are included within this category.


WM-8

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


                                Change from
                                December 31, 2005  Mar. 31,   Dec. 31,
                                to March 31, 2006    2006       2005
----------------------------------------------------------------------
Deposits
 Retail deposits:
  Checking deposits:
   Noninterest bearing         $            1,626  $ 22,378  $ 20,752
   Interest bearing                        (2,964)   39,289    42,253
----------------------------------------------------------------------
     Total checking deposits               (1,338)   61,667    63,005
  Savings and money market
   deposits                                 1,533    38,197    36,664
  Time deposits(1)                          1,175    41,534    40,359
----------------------------------------------------------------------
     Total retail deposits                  1,370   141,398   140,028
  Commercial business deposits              3,100    14,559    11,459
  Wholesale deposits                        1,360    31,277    29,917
  Custodial and escrow
   deposits(2)                              1,005    12,768    11,763
----------------------------------------------------------------------
     Total deposits            $            6,835  $200,002  $193,167
======================================================================


                                         Sept. 30,  June 30,  Mar. 31,
                                           2005      2005      2005
----------------------------------------------------------------------
Deposits
 Retail deposits:
  Checking deposits:
   Noninterest bearing                   $ 20,622  $ 19,093  $ 18,599
   Interest bearing                        44,294    46,031    48,988
----------------------------------------------------------------------
     Total checking deposits               64,916    65,124    67,587
  Savings and money market deposits        35,579    34,514    35,184
  Time deposits(1)                         40,476    36,162    31,819
----------------------------------------------------------------------
     Total retail deposits                140,971   135,800   134,590
  Commercial business deposits              9,758     9,648     8,447
  Wholesale deposits                       24,534    23,638    24,969
  Custodial and escrow deposits(2)         15,149    15,231    15,625
----------------------------------------------------------------------
     Total deposits                      $190,412  $184,317  $183,631
======================================================================

(1) Weighted average remaining maturity of time deposits was 10 months
    at March 31, 2006, 11 months at December 31, 2005, 12 months at
    September 30, 2005, 13 months at June 30, 2005 and 14 months at
    March 31, 2005.

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


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

  Net checking account changes                    340,157     203,190
  Net total transaction account changes           575,708     337,232


                                    Sept. 30,   June 30,    Mar. 31,
                                      2005        2005        2005
----------------------------------------------------------------------
Retail Deposit Accounts(1)
  Checking                          9,680,317   9,427,222   9,183,194
  Money market and savings          5,560,060   5,395,091   5,250,907
----------------------------------------------------------------------
     Total transaction accounts,
      end of period(2)             15,240,377  14,822,313  14,434,101
======================================================================

  Net checking account changes        253,095     244,028     202,134
  Net total transaction account
   changes                            418,064     388,212     342,367

(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,
                          2006     2005      2005      2005     2005
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
 period                   2,140    2,051      1,997    1,968    1,939
   Net stores opened
    during the quarter       28       89 (1)     54       29       29
----------------------------------------------------------------------
Stores, end of period     2,168    2,140      2,051    1,997    1,968
======================================================================

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


                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                           2006     2005     2005      2005     2005
----------------------------------------------------------------------
Assets Under Management  $26,386  $25,310  $24,546  $ 23,348  $22,454
======================================================================


WM-9

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

                            Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                           2006     2005     2005      2005     2005
----------------------------------------------------------------------
Loan Volume
   Home loans:
      Adjustable rate     $21,200  $20,266  $26,607  $25,293  $22,947
      Fixed rate           16,568   20,494   21,122   19,355   17,147
      Specialty mortgage
       finance(1)           6,422    9,669    8,413    8,753    7,656
----------------------------------------------------------------------
         Total home loan
          volume           44,190   50,429   56,142   53,401   47,750
   Home equity loans and
    lines of credit         7,306    9,118   10,828   10,888    8,887
   Home construction
    loans(2)                  493      479      370      258      245
   Multi-family             2,034    2,595    2,580    2,459    2,121
   Other real estate          716      419      465      371      345
----------------------------------------------------------------------
         Total loans
          secured by real
          estate           54,739   63,040   70,385   67,377   59,348
   Consumer(3)                 49       79      182       82       43
   Commercial business        258      173      165      159      124
----------------------------------------------------------------------
       Total loan volume  $55,046  $63,292  $70,732  $67,618  $59,515
======================================================================
Loan Volume by Channel
   Retail                 $22,580  $27,676  $32,614  $30,565  $25,569
   Wholesale               16,722   17,190   20,000   20,323   16,716
   Purchased/correspondent 15,744   18,426   18,118   16,730   17,230
----------------------------------------------------------------------
         Total loan volume
          by channel      $55,046  $63,292  $70,732  $67,618  $59,515
======================================================================
Refinancing Activity(4)
   Home loan refinancing  $23,756  $27,435  $29,084  $27,583  $28,641
   Home equity loans and
    lines of credit and
    consumer                  211      219      245      475      392
   Home construction loans     17       12       17       13       10
   Multi-family and other
    real estate               774      831      738      700      660
----------------------------------------------------------------------
       Total refinancing  $24,758  $28,497  $30,084  $28,771  $29,703
======================================================================
Home Loan Volume
   Short-term adjustable-
    rate loans(5):
      Option ARMs          $7,121  $11,699  $16,353  $19,564  $15,644
      Other ARMs            2,943    1,222    1,237      367      974
----------------------------------------------------------------------
         Total short-term
          adjustable-rate
          loans            10,064   12,921   17,590   19,931   16,618
   Medium-term adjustable-
    rate loans(6)          16,521   15,447   16,454   13,388   13,409
   Fixed-rate loans        17,605   22,061   22,098   20,082   17,723
----------------------------------------------------------------------
         Total home loan
          volume          $44,190  $50,429  $56,142  $53,401  $47,750
======================================================================

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 $266 million, $304 million, $466 million, $477 million and
$563 million for the quarters ended March 31, 2006, December 31, 2005,
September 30, 2005, June 30, 2005 and March 31, 2005.

(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) Excludes credit card loan volume.

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

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

(6) 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
       December 31, 2005   Mar.     Dec.     Sept.    June     Mar.
       to March 31, 2006    31,      31,      30,      30,      31,
                           2006     2005     2005     2005     2005
----------------------------------------------------------------------
Loans by Product Type
 Loans held in portfolio:
  Loans secured by real estate:
   Home:
    Short-term adjustable-rate
      loans(1):
     Option ARMs(2) $(22) $70,169  $70,191  $67,863  $66,533  $67,938
     Other ARMs    1,115   15,781   14,666   12,956   10,903   10,462
----------------------------------------------------------------------
      Total short-term
       adjustable-
        rate loans 1,093   85,950   84,857   80,819   77,436   78,400
     Medium-term
      adjustable-rate
         loans(3)  7,880   49,391   41,511   43,610   43,499   46,789
     Fixed-rate
      loans         (262)   8,660    8,922    8,616    8,638    8,794
----------------------------------------------------------------------
      Total home
       loans(4)    8,711  144,001  135,290  133,045  129,573  133,983
   Home equity loans
    and lines of
    credit         1,021   51,872   50,851   50,066   48,449   45,849
   Home construction
   (5)                58    2,095    2,037    2,019    2,037    2,170
   Multi-family      550   26,151   25,601   25,014   24,240   23,247
   Other real estate 318    5,353    5,035    4,929    4,915    5,311
----------------------------------------------------------------------
      Total loans
       secured by real
        estate    10,658  229,472  218,814  215,073  209,214  210,560
  Consumer:
   Credit card      (137)   7,906    8,043        -        -        -
   Other             (36)     602      638      669      703      747
  Commercial
   business         (113)   2,024    2,137    2,452    2,820    2,807
----------------------------------------------------------------------
      Total loans
       held in portfolio
       (6)        10,372  240,004  229,632  218,194  212,737  214,114
 Less: allowance for loan
  and lease losses    53   (1,642)  (1,695)  (1,264)  (1,243)  (1,280)
----------------------------------------------------------------------
      Total net loans held
       in
        portfolio 10,425  238,362  227,937  216,930  211,494  212,834
 Loans held for sale
  (7)             (8,562)  25,020   33,582   48,018   51,122   41,197
----------------------------------------------------------------------
      Total net
       loans      $1,863 $263,382 $261,519 $264,948 $262,616 $254,031
======================================================================

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

(2) The total amount by which the unpaid principal balance ("UPB") of
    Option ARM loans exceeded their original principal amount was $291
    million at March 31, 2006, $157 million at December 31, 2005, $76
    million at September 30, 2005, $34 million at June 30, 2005 and
    $20 million at March 31, 2005.

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

(4) Includes specialty mortgage finance loans, which are comprised of
    purchased subprime home loans and subprime home loans originated
    by Long Beach Mortgage Company and held in its investment
    portfolio. Specialty mortgage finance loans were $20.24 billion,
    $21.15 billion, $21.16 billion, $20.17 billion and $21.54 billion
    at March 31, 2006, December 31, 2005, September 30, 2005, June 30,
    2005 and March 31, 2005.

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

(6) Includes net unamortized deferred loan origination costs of $1.61
    billion, $1.53 billion, $1.47 billion, $1.39 billion and $1.36
    billion at March 31, 2006, December 31, 2005, September 30, 2005,
    June 30, 2005 and March 31, 2005.

(7) Fair value of loans held for sale was $25.03 billion, $33.70
    billion, $48.14 billion, $51.39 billion and $41.38 billion as of
    March 31, 2006, December 31, 2005, September 30, 2005, June 30,
    2005 and March 31, 2005.


WM-11

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

                               Weighted       Weighted
            Change from   Mar. Average  Dec.  Average   Mar.  Average
          Dec. 31, 2005    31,  Coupon   31,   Coupon    31,   Coupon
      to March 31, 2006   2006   Rate   2005    Rate    2005    Rate

----------------------------------------------------------------------
Selected Loans Secured by Real Estate and MBS
 Home loans held in
  portfolio:
  Short-term
   adjustable-rate
    loans(1):
      Option ARMs  $(22) $70,169  6.34% $70,191  5.87% $67,938  4.60%
      Other ARMs  1,115   15,781  6.64   14,666  6.44   10,462  6.34
----------------------------------------------------------------------
       Total short-term
        adjustable-rate
         loans    1,093   85,950  6.39   84,857  5.97   78,400  4.83
  Medium-term
   adjustable-rate
    loans(2)      7,880   49,391  5.61   41,511  5.58   46,789  5.53
  Fixed-rate loans (262)   8,660  6.54    8,922  6.56    8,794  6.67
----------------------------------------------------------------------
       Total home
       loans held in
        portfolio 8,711  144,001  6.13  135,290  5.89  133,983  5.20
 Home equity loans and
  lines of credit:
    Short-term (Prime-
     based or treasury-
      based)(1)      69   37,181  7.79   37,112  7.26  35,359   5.69
    Fixed-rate
     loans          952   14,691  6.69   13,739  6.56  10,490   6.34
----------------------------------------------------------------------
       Total home
        equity loans and
         lines of
          credit  1,021   51,872  7.48   50,851  7.07  45,849   5.84
 Multi-family loans held
  in portfolio:
    Short-term
     adjustable-rate
      loans(1):
     Option ARMs    (23)   9,506  6.13    9,529  5.74   8,253   4.55
     Other ARMs    (126)   6,280  6.27    6,406  5.92   6,062   4.82
----------------------------------------------------------------------
       Total short-term
        adjustable-rate
         loans     (149)  15,786  6.19   15,935  5.81  14,315   4.66
    Medium-term
     adjustable-rate
     loans(2)       673    8,791  5.35    8,118  5.29   7,368   5.28
    Fixed-rate loans 26    1,574  6.51    1,548  6.59   1,564   6.80
----------------------------------------------------------------------
        Total multi-family
         loans held in
          portfolio 550   26,151  5.93   25,601  5.69  23,247   5.00
----------------------------------------------------------------------
        Total selected
         loans held in
          portfolio secured by
           real estate
           (3)   10,282  222,024  6.42  211,742  6.15 203,079  5.32
 Loans held for
  sale(4)        (8,085)  24,843  6.53   32,928  6.15  41,003  5.11
----------------------------------------------------------------------
         Total selected loans
          secured by
           real
           estate 2,197  246,867  6.44  244,670  6.15 244,082  5.28
 MBS(5):
  Short-term
   adjustable-rate
    MBS(1)          798    8,763  5.13    7,965  4.88  11,558  3.95
  Medium-term
   adjustable-rate
    MBS(2)         (484)   4,020  4.93    4,504  4.97     991  4.45
  Fixed-rate MBS    426    8,605  5.21    8,179  5.11   3,185  5.22
----------------------------------------------------------------------
         Total
          MBS(6)    740   21,388  5.13   20,648  4.99  15,734  4.24
----------------------------------------------------------------------
         Total selected
          loans secured by
          real estate and
          MBS    $2,937 $268,255  6.33 $265,318  6.06 $259,816 5.22
======================================================================

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

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

(3) At March 31, 2006, December 31, 2005 and March 31, 2005, the
    adjustable-rate loans with lifetime caps were $193.55 billion,
    $184.87 billion and $179.59 billion with a lifetime weighted
    average cap rate of 12.16%, 12.25% and 12.31%.

(4) Excludes credit card and student loans.

(5) Includes only those securities designated as available-for-sale.
    Excludes principal-only strips and interest-only strips.

(6) At March 31, 2006, December 31, 2005 and March 31, 2005, the par
    value of adjustable-rate MBS with lifetime caps were $12.92
    billion, $12.46 billion and $12.47 billion with a lifetime
    weighted average cap rate of 10.36%, 10.31% and 10.18%.


                                                        Dec. 31, 2005
                                                        to March 31,
                                                        2006
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
    Balance, beginning of period                          $33,582
       Mortgage loans originated, purchased
        and transferred from held in portfolio             28,912
       Mortgage loans transferred to held in portfolio     (2,009)
       Mortgage loans sold and other                      (34,987)
       Net change in consumer loans held for sale            (478)
----------------------------------------------------------------------
    Balance, end of period                                $25,020
======================================================================

Rollforward of Home Loans Held in Portfolio
    Balance, beginning of period                         $135,290
        Loans originated, purchased and transferred from
         held for sale                                     18,350
        Loan payments,transferred to held for sale
         and other                                         (9,639)
----------------------------------------------------------------------
    Balance, end of period                               $144,001
======================================================================


WM-12

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

                                                Quarter Ended
                                      --------------------------------
                                            --------------------------
                                            Pro Forma Results Assuming
                                             Retrospective Application
                                                  of SFAS No. 156
----------------------------------------------------------------------
Detail of Revenue from Sales and      Mar.  Dec.   Sept.   June  Mar.
 Servicing of Home Mortgage Loans(1)   31,   31,    30,     30,   31,
                                      2006  2005   2005    2005  2005
----------------------------------------------------------------------
Gain from home mortgage loans and
 originated mortgage-backed securities,(2)
   net of hedging and risk management
    instruments:
   Gain from home mortgage loans and
    originated mortgage-backed
    securities                        $157  $213   $206    $250  $181
   Revaluation gain (loss) from
    derivatives economically
    hedging loans held for sale         52    25     73     (79)   80
----------------------------------------------------------------------
        Gain from home mortgage loans and
         originated mortgage-backed
         securities, net of hedging
         and risk management
         instruments                   209   238    279     171   261
----------------------------------------------------------------------
Home mortgage loan servicing revenue
 (expense):
   Home mortgage loan servicing
    revenue(3)                         572   544    534     523   510
   Change in MSR fair value due to
    payments on loans and other(1)    (409) (483)  (480)   (404) (362)
----------------------------------------------------------------------
        Net mortgage loan servicing
         revenue                       163    61     54     119   148
   Change in MSR fair value due to
    valuation inputs or assumptions(1) 413   805  1,193  (1,224)  764
   Revaluation gain (loss) from
    derivatives economically
    hedging MSR(1)                    (522) (654)  (810)  1,047  (398)
----------------------------------------------------------------------
        Home mortgage loan servicing
         revenue (expense), net of  MSR
         valuation changes and derivative
         risk management instruments    54   212    437     (58)  514
----------------------------------------------------------------------
        Total revenue from sales and
         servicing of home mortgage
         loans                        $263   450    716     113   775
------------------------------------- =====
Reconciliation from pro forma to GAAP
 results:(1)
   Deduct: Increase in MSR fair value not
    recorded due to lower of cost or fair
    value                                    (39)   (10)     (3)   (5)
   Other                                       7      4       4     5
-------------------------------------       --------------------------
        Total GAAP revenue from sales and
         servicing of home mortgage loans   $418   $710    $114  $775
=========================================== ==========================

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

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

(3) Includes late charges, prepayment fees and loan pool expenses (the
    shortfall of the scheduled interest required to be remitted to
    investors compared to what is collected from the borrowers upon
    payoff).


WM-13

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

                                             Quarter Ended
                                 -------------------------------------
                                        ------------------------------
                                         Pro Forma Results Assuming
                                         Retrospective Application of
                                                 SFAS No. 156
----------------------------------------------------------------------
                                  Mar.   Dec.    Sept.    June   Mar.
                                   31,    31,     30,      30,    31,
                                  2006   2005    2005     2005   2005
----------------------------------------------------------------------
MSR Risk Management:
   Change in MSR fair value due
    to valuation inputs or
    assumptions(1)                $413   $805  $1,193  $(1,224)  $764
Gain (loss) on MSR risk
 management instruments:
   Revaluation gain (loss) from
    derivatives                   (522)  (654)   (810)   1,047   (398)
   Revaluation gain (loss) from
    certain trading securities(1)  (42)  (165)   (219)     259   (109)
   Gain (loss) from certain
    available-for-sale securities    -      -       -       26    (44)
----------------------------------------------------------------------
        Total gain (loss) on MSR
         risk management
         instruments              (564)  (819) (1,029)   1,332   (551)
----------------------------------------------------------------------
             Total MSR risk
              management         $(151)  $(14)   $164     $108   $213
======================================================================
Reconciliation from pro forma to
 GAAP results:(1)
   Revaluation gain (loss) from certain
    trading securities                  $(165)  $(219)    $259  $(109)
   Add back: Decrease in value of
    trading securities assumed
    transferred from the available-for-
    sale securities portfolio               8       2        -      -
---------------------------------       ------------------------------
        Total GAAP impact of MSR risk
         management trading securities  $(157)  $(217)    $259  $(109)
======================================================================

(1) Refer to footnote (1) on table WM-12.


WM-14

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

                                     Quarter Ended
----------------------------------------------------------------------
                   Mar. 31,  Dec. 31,  Sept. 30,  June 30,    Mar. 31,
                     2006      2005      2005      2005        2005
----------------------------------------------------------------------
Rollforward of Mortgage Servicing
 Rights(1)(2)
 Balance, beginning
    of period       $8,041    $7,042    $5,730    $6,802      $5,906
    Home loans:
     Additions         633       703       605       555         490
     Changes in MSR
      fair value due to
      valuation inputs or
      assumptions      413         -         -         -           -
     Payments on
      loans and
      other           (409)        -         -         -           -
     Fair value basis
      adjustment(3)     57         -         -         -           -
     Amortization        -      (482)     (555)     (564)       (570)
     (Impairment)
       reversal          -       353       413      (250)        427
     Statement No.
      133 MSR accounting
      valuation
      adjustments        -       419       849      (813)        545
    Net change in
     commercial real
     estate MSR          1         6         -         -           4
----------------------------------------------------------------------
 Balance, end of
  period            $8,736    $8,041    $7,042    $5,730      $6,802
======================================================================
Rollforward of Valuation Allowance
 for MSR Impairment
 Balance, beginning
  of period           $914    $1,312    $1,746    $1,513      $1,981
  Impairment
   (reversal)            -      (353)     (413)      250        (427)
  Other-than-
   temporary
   impairment            -       (43)      (18)      (11)        (34)
  Other               (914)(3)    (2)       (3)       (6)         (7)
----------------------------------------------------------------------
 Balance, end of
  period                $-      $914    $1,312    $1,746      $1,513
======================================================================
Rollforward of Mortgage Loans
 Serviced for Others
 Balance, beginning
  of period       $563,208  $547,578  $543,324  $542,797    $540,392
  Home loans:
   Additions        35,026    51,642    43,418    36,174      34,533
   Loan payments
    and other      (29,063)  (37,245)  (39,005)  (35,689)    (32,861)
  Net change in
   commercial real
   estate loans
   serviced for
   others              330     1,233      (159)       42         733
----------------------------------------------------------------------
 Balance, end of
  period          $569,501  $563,208  $547,578  $543,324    $542,797
======================================================================

                  Mar. 31,  Dec. 31,  Sept. 30,  June 30,    Mar. 31,
                   2006      2005       2005      2005        2005
----------------------------------------------------------------------
Total Servicing
 Portfolio
      Mortgage loans
       serviced for
       others     $569,501  $563,208  $547,578  $543,324    $542,797
      Consumer loans
       serviced for
       others       11,822    11,014         -         -           -
      Servicing on
       retained MBS
       without MSR   1,334     1,404     1,487     1,592       1,702
      Servicing on
       owned loans 245,469   242,114   245,165   243,494     233,738
      Subservicing
       portfolio       588       629       749       825         421
----------------------------------------------------------------------
   Total servicing
    portfolio     $828,714  $818,369  $794,979  $789,235    $778,658
======================================================================

                                    March 31, 2006
----------------------------------------------------------------------
                                Unpaid        Weighted
                               Principal       Average
                                Balance       Servicing
                                                 Fee
----------------------------------------------------------------------
                                             (in basis
                                              points,
Mortgage Loans                             annualized)
 Serviced for Others
 by Loan Type
      Government                $44,452          46
      Agency                    329,780          32
      Private                   164,518          44
      Specialty home
       loans                     30,751          50
----------------------------------------------------------------------
   Total mortgage
    loans serviced for
    others(4)                  $569,501          37
======================================================================

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

(2) MSR as a percentage of loans serviced for others was 1.53%, 1.43%,
    1.29%, 1.05% and 1.25% at March 31, 2006, December 31, 2005,
    September 30, 2005, June 30, 2005 and March 31, 2005.

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

(4) Weighted average coupon rate (annualized) was 5.98% at March 31,
    2006.


WM-15

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

                                         Quarter Ended
----------------------------------------------------------------------
                              Mar.    Dec.    Sept.   June    Mar.
                               31,     31,     30,     30,     31,
                              2006    2005    2005    2005    2005
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
 Balance, beginning of
  quarter                    $1,695  $1,264  $1,243  $1,280  $1,301
 Allowance transferred to
  loans held for sale           (30)   (241)      -     (29)      -
 Allowance acquired through
  business combinations           -     592       -       -       -
 Provision for loan and
  lease losses                   82     217      52      31      16
----------------------------------------------------------------------
                              1,747   1,832   1,295   1,282   1,317
 Loans charged off:
  Loans secured by real
   estate:
   Home                         (11)     (7)     (9)    (11)    (11)
   Specialty mortgage
    finance(1)                  (20)    (14)    (15)    (11)    (10)
----------------------------------------------------------------------
      Total home loans charged
       off                      (31)    (21)    (24)    (22)    (21)
   Home equity loans
    and lines of credit          (5)     (6)    (10)     (8)     (5)
   Home construction(2)           -       -       -      (2)      -
   Multi-family                   -       -       -      (1)      -
   Other real estate             (3)     (1)     (4)     (2)     (1)
----------------------------------------------------------------------
      Total loans secured by
       real estate              (39)    (28)    (38)    (35)    (27)
  Consumer:
   Credit card                  (63)   (138)      -       -       -
   Other                         (7)     (8)     (8)     (9)    (13)
  Commercial business            (8)    (16)     (4)     (8)     (6)
----------------------------------------------------------------------
      Total loans charged off  (117)   (190)    (50)    (52)    (46)
 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           1       7       1       1       -
   Multi-family                   -       -       2       -       -
   Other real estate              1       -       8       3       1
----------------------------------------------------------------------
      Total loans secured by
       real estate                3       8      12       5       2
  Consumer:
   Credit card                    4      40       -       -       -
   Other                          4       3       5       6       5
  Commercial business             1       2       2       2       2
----------------------------------------------------------------------
      Total recoveries of
       loans previously
       charged off               12      53      19      13       9
----------------------------------------------------------------------
   Net charge-offs             (105)   (137)    (31)    (39)    (37)
----------------------------------------------------------------------
 Balance, end of quarter     $1,642  $1,695  $1,264  $1,243  $1,280
======================================================================

   Net charge-offs (annualized) as a
    percentage of average loans
    held in portfolio          0.18%   0.24%   0.06%   0.07%   0.07%
   Allowance as a percentage
    of total loans held in
    portfolio                  0.68    0.74    0.58    0.58    0.60

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

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


WM-16

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

                                 Mar.    Dec.    Sept.   June    Mar.
                                  31,     31,     30,     30,     31,
                                 2006    2005    2005    2005    2005
----------------------------------------------------------------------
Nonperforming Assets and Restructured Loans
  Nonaccrual loans(1):
     Loans secured by real
      estate:
        Home                     $490    $565    $472    $495    $495
        Specialty mortgage
         finance(2)             1,012     872     755     692     734
----------------------------------------------------------------------
              Total home
               nonaccrual loans 1,502   1,437   1,227   1,187   1,229
        Home equity loans and
         lines of credit           92      88      68      67      74
        Home construction(3)       15      10      10      11      25
        Multi-family               21      25      18      15      15
        Other real estate          69      70      69     116     159
----------------------------------------------------------------------
              Total nonaccrual
               loans secured by
               real estate      1,699   1,630   1,392   1,396   1,502
     Consumer                       6       8       8       8       8
     Commercial business           26      48      65      59      59
----------------------------------------------------------------------
              Total nonaccrual
               loans held in
               portfolio        1,731   1,686   1,465   1,463   1,569
  Foreclosed assets               309     276     256     256     264
----------------------------------------------------------------------
              Total
               nonperforming
               assets          $2,040  $1,962  $1,721  $1,719  $1,833
              As a percentage
               of total assets   0.59%   0.57%   0.52%   0.53%   0.57%
  Restructured loans              $21     $22     $25     $25     $27
----------------------------------------------------------------------
                 Total nonperforming
                  assets and
                  restructured
                  loans        $2,061  $1,984  $1,746  $1,744  $1,860
======================================================================

(1) Excludes nonaccrual loans held for sale of $201 million at March
    31, 2006. Prior periods also reflect the exclusion of nonaccrual
    loans held for sale of $245 million, $152 million, $108 million
    and $112 million at December 31, 2005, September 30, 2005, June
    30, 2005 and March 31, 2005. Loans held for sale are accounted for
    at lower of aggregate cost or fair value, with valuation changes
    included as adjustments to noninterest income.

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

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

CONTACT: Washington Mutual
Media Contact:
Alan Gulick, 206-377-3637 or 206-490-5182 (Seattle)
alan.gulick@wamu.net
or
Investor Relations Contact:
Alan Magleby, 212-336-6019 (New York)
alan.magleby@wamu.net

SOURCE: Washington Mutual, Inc.