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WaMu Reports Fourth Quarter Earnings Per Share of $1.10 and 2006 Earnings Per Share of $3.64

Announces $2.7 Billion Accelerated Share Repurchase and Increases

                       Cash Dividend to 54 Cents

SEATTLE--(BUSINESS WIRE)--Jan. 17, 2007--Washington Mutual, Inc. (NYSE:WM) today reported fourth quarter 2006 net income of $1.06 billion, or $1.10 per diluted share, compared with net income of $865 million, or $0.85 per diluted share, in the fourth quarter of 2005. Net income for 2006 was $3.56 billion, or $3.64 per diluted share, compared with net income of $3.43 billion, or $3.73 per diluted share, in 2005.

Fourth quarter 2006 earnings included an after tax gain of $415 million on the previously announced sale of WM Advisors, Inc., the company's retail mutual fund asset-management company. The gain from the sale of WM Advisors more than offset fourth quarter and full year after tax charges of $100 million and $202 million, respectively, related to the company's ongoing efficiency initiatives and after tax charges of $137 million associated with the sale in 2006 of a significant portion of the company's mortgage servicing rights and the related facility and employee transfers.

On Jan. 3, 2007, the company entered into an accelerated share repurchase agreement with a dealer, buying back $2.7 billion of its common stock. The company also increased its cash dividend to 54 cents per common share, up from 53 cents per share in the previous quarter.

"We achieved solid performances in our Retail Banking, Card Services and Commercial Group businesses in the fourth quarter and for the full year despite a difficult interest rate and operating environment, which particularly impacted the results in our Home Loans business," said Kerry Killinger, WaMu Chairman and CEO. "For the full year, we successfully reduced our cost structure and repositioned the balance sheet while continuing to expand our consumer and small business banking franchise. In 2006, we opened a record 1.23 million net new checking accounts, added a record 848,000 net new retail households and experienced strong cross-sales of the WaMu credit card to our retail banking customers."

Killinger noted that opportunities to grow the balance sheet at attractive risk-adjusted returns are limited, making the accelerated share repurchase transaction a superior use of capital.

"Our outlook for 2007 reflects the strategic actions we took in 2006 to prepare the company for the future," Killinger added. "Those decisive actions have positioned us well to deliver stronger operating performance in 2007."

FOURTH QUARTER AND FULL YEAR FINANCIAL SUMMARY AND HIGHLIGHTS
----------------------------------------------------------------------

Financial Summary         Three Months Ended           Year Ended
                     ----------------------------- -------------------
(in millions, except  Dec. 31, Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
 per share data)         2006      2006      2005      2006      2005
                     --------- --------- --------- --------- ---------
Income Statement
Net interest income  $  1,998  $  1,947  $  2,241  $  8,121  $  8,218
Provision for loan
 and lease losses         344       166       217       816       316
Noninterest income      1,592     1,570     1,526     6,377     5,097
Noninterest expense     2,257     2,184     2,214     8,807     7,620
Income from
 discontinued
 operations,
net of taxes              418         9         8       444        38
Net income              1,058       748       865     3,558     3,432

Diluted earnings per
 common share        $   1.10  $   0.77  $   0.85  $   3.64  $   3.73

Balance Sheet
Total assets, end of
 period              $346,288  $348,877  $343,573  $346,288  $343,573
Average total assets  353,056   349,542   349,172   348,758   326,233
Average interest-
 earning assets       314,784   312,827   314,490   312,178   294,829
Average total
 deposits             214,801   208,912   196,799   203,829   186,023

Profitability Ratios
Return on average
 common equity         16.03 %    11.47%    12.85%    13.52%    14.91%
Net interest margin      2.58      2.53      2.88      2.60      2.79
Efficiency ratio        62.87     62.09     58.75     60.75     57.23
Nonperforming
 assets/total
 assets,
end of period            0.80      0.69      0.57      0.80      0.57
Tangible
 equity/total
 tangible assets,
end of period            6.04      5.86      5.62      6.04      5.62
    --  Reduction of low margin loans accelerated in balance sheet
        repositioning. During the fourth quarter, $17.79 billion of
        medium-term adjustable-rate loans with a weighted average
        yield of approximately 5.75 percent that were held for
        investment were transferred to held for sale and targeted for
        sale in the first quarter. During the quarter, the company
        recognized a gain of $74 million related to the transfer of
        these assets and the associated derivatives executed to hedge
        this transaction. The sale of these loans is expected to
        increase the company's net interest margin, improve the
        company's interest rate risk profile and reduce its geographic
        credit concentration. In conjunction with the sale, the
        company also sold $4.73 billion of mortgage-backed securities
        with a weighted average yield of 5.26 percent at a slight
        gain.

    --  Sale of WM Advisors completed. On Dec. 31, WaMu completed the
        sale of its retail mutual fund asset-management company, WM
        Advisors, Inc., to the Principal Financial Group. The sale
        resulted in a pretax gain of $667 million which was included
        in income from discontinued operations, net of taxes.

    --  Company grows franchise while reducing overall cost structure.
        During the year, the company continued to grow its franchise,
        opening 144 new retail banking stores, adding 848,000 net new
        households and 3 million new card accounts while reducing its
        operating expense run rate. The company's efficiency
        initiatives contributed to a reduction in headcount of more
        than 10,000, or 18 percent, during the year. Noninterest
        expense of $2.26 billion during the fourth quarter included
        charges related to the company's efficiency initiatives of
        $155 million, without which the expense run rate would have
        been down 5 percent from the fourth quarter of 2005.

    --  Asset repricing contributes to a 5 basis point increase in net
        interest margin. During the fourth quarter the Fed funds rate
        remained unchanged and the yield curve continued to be
        inverted. The ongoing repricing of the company's assets in the
        fourth quarter more than offset the slight increase in its
        cost of deposits and wholesale funding, leading to a 5 basis
        point increase in the net interest margin to 2.58 percent. For
        the full year, the 19 basis point decrease in the net interest
        margin to 2.60 percent from the prior year reflected increases
        in short-term interest rates during the first half of 2006.
        Net interest income was up 3 percent from the prior quarter
        due to the increase in the net interest margin but was down
        slightly year over year as the increase in average
        interest-earning assets was more than offset by margin
        compression.

    --  Strong account growth produces increased noninterest income.
        Reflecting the year's record growth in checking accounts,
        depositor fees of $692 million in the fourth quarter were up 6
        percent from the third quarter and at $2.57 billion for the
        year were up 17 percent from 2005. The company's continued
        success in attracting credit card customers, including WaMu
        retail customers, contributed to an increase in managed card
        receivables and higher credit card fee income.

    --  Increase in nonperforming assets reflects more difficult
        credit environment. Weaker credit performance, particularly in
        the company's single-family residential real estate loan
        portfolios, contributed to the rise in the level of
        nonperforming assets as a percentage of total assets to 80
        basis points at year end from 69 basis points at Sept. 30 and
        57 basis points at the end of 2005. The company continued its
        practice of selectively selling nonperforming loans, selling
        $176 million in the fourth quarter and $155 million in the
        third quarter.

    --  Provision driven by credit card growth. The increase in the
        fourth quarter provision for loan and lease losses to $344
        million in part reflected the growth of the company's
        on-balance sheet credit card receivables, which increased the
        provision by $95 million compared with the prior quarter.
        During the quarter, the company also revised its accounting
        for credit card receivables held for sale and refined its
        provisioning methodology for multi-family loans. The impact of
        these two changes was a net increase to the fourth quarter
        provision of $25 million. The increase in the provision for
        2006 to $816 million from $316 million in 2005 was primarily
        due to the addition of the company's credit card business
        acquired Oct. 1, 2005.

    --  Subprime mortgage industry significantly weakens during the
        fourth quarter. During the fourth quarter, subprime mortgage
        delinquencies continued to rise as credit conditions
        deteriorated in the subprime mortgage industry. Weakening
        subprime mortgage credit performance and market conditions
        negatively impacted the company's fourth quarter pretax
        earnings by approximately $160 million. This result was driven
        by a reduction in fourth quarter gain on sale of approximately
        $110 million, as well as a reduction of approximately $50
        million in the value of the company's subprime mortgage
        residuals to a balance of $168 million at year end.

    FOURTH QUARTER AND FULL YEAR OPERATING SEGMENT RESULTS

In the fourth quarter, the company adopted several new management accounting methodologies used for operating segment reporting. The company changed its funds transfer pricing methodology to better reflect current market interest rates and deposit pricing. The company's new provisioning methodology eliminates the distinction that existed between segment and corporate reporting. The segment results for all periods have been restated to reflect these revisions.

Retail Banking Group

Selected Segment
 Information            Three Months Ended            Year Ended
                   ----------------------------- ---------------------
(in millions,
except accounts     Dec. 31, Sept. 30,  Dec. 31,    Dec. 31,  Dec. 31,
 and households)       2006      2006      2005        2006      2005
                   --------- --------- --------- ----------- ---------
Net interest
 income            $  1,239  $  1,260  $  1,278  $    5,171  $  4,890
Provision for loan
 and lease losses        47        53        26         167       118
Noninterest income      774       738       730       2,919     2,580
Noninterest
 expense              1,103     1,079     1,100       4,380     4,187
Net income from
continuing
 operations             544       546       553       2,228     1,994

Average loans      $172,031  $180,839  $166,810  $  177,473  $163,561
Average retail
 deposits           143,513   139,954   140,212     140,344   136,894
Net change in
 number of retail
checking accounts   179,784   307,433   203,190   1,231,564   902,447
Net change in
 retail households  123,000   256,000   143,000     848,000   633,000
    --  Full year results show strong performance. While net income
        from continuing operations of $544 million was flat with the
        third quarter, it was up 12 percent year over year as the
        Retail Bank continued to successfully market its products and
        services to new and existing customers. Excluding the
        contribution from portfolio management, which has been
        impacted by rising short-term interest rates and an inverted
        yield curve, net income from continuing operations for the
        Retail Bank network was up 5 percent from the prior quarter
        and 22 percent in 2006 compared with 2005.

    --  WaMu Free Checking(TM) drives record checking account growth
        in 2006. During 2006, the company opened a record 1.23 million
        net new checking accounts, exceeding its stated goal of 1
        million and up 36 percent from 902,447 net new accounts in
        2005. During the second half of the year, the company
        broadened its retail sales focus on expanding customer
        relationships to products beyond deposits and home equity
        loans. As a result, the sale of home loans, credit cards and
        small business accounts has been very strong, increasing the
        Retail Bank's cross sale ratio to 6.66 products and services
        at year end from 6.31 at the end of 2005.

    --  Continued solid growth in Retail Banking fees. Reflecting the
        continued successful marketing of WaMu's products and services
        and an increase in fees, depositor and other retail banking
        fees in the Retail Bank were up over 6 percent from the third
        quarter and up 17 percent year over year.
Card Services Group (managed basis)

Selected Segment
 Information                 Three Months Ended         Year Ended
                        ---------------------------- -----------------
                        Dec. 31,  Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(in millions)              2006       2006     2005     2006   2005(1)
                        -------- ---------- -------- -------- --------
Net interest income        $664       $633     $645   $2,530     $645
Provision for loan and
 lease losses               555        345      454    1,647      454
Noninterest income          451        343      352    1,528      352
Noninterest expense         316        294      268    1,201      268
Net income                  149        207      172      745      172

Average managed
 receivables            $22,875    $21,706  $19,472  $21,294   $4,908
Period end managed
 receivables             23,501     21,921   19,973   23,501   19,973
30+ day managed
 delinquency rate          5.25%      5.53%    5.07%    5.25%    5.07%
Managed net credit
 losses                    5.84       5.68     7.28     5.83     7.28


(1) 2005 reflects the inclusion of Card Services as of the date of
     acquisition on Oct. 1.
    --  Card Services continues strong performance. Card Services
        reported net income of $149 million, reflecting the continued
        strong risk-adjusted return of the portfolio and growth in
        managed receivables. The quarter's results included an
        increase to the provision of $95 million as the company
        retained a higher level of its receivables on balance sheet
        and an increase to the provision of $92 million related to the
        revised accounting for credit card receivables held for sale.
        The effect of the accounting policy revision on Card Services'
        quarterly results was small, as the increase to the provision
        was largely offset by the revision's impact on credit card
        noninterest income.

    --  Retail channel accelerates customer and loan growth. Card
        Services continued to successfully leverage the company's
        Retail Bank franchise, which contributed to the opening of
        839,000 new credit card accounts in the fourth quarter. New
        accounts were up 3 percent from the prior quarter and up 17
        percent from last year's fourth quarter, which was Card
        Services' first quarter of operation as part of WaMu. Managed
        card receivables of $23.50 billion at Dec. 31 were up 7
        percent from the prior quarter end and up 18 percent from the
        end of 2005.

    --  Card Services' credit quality continues to be favorable. At
        5.25 percent of period end managed receivables, the 30+ day
        managed delinquency rate was down from the prior quarter due
        to growth in managed receivables and completion of the sale of
        a portfolio of higher risk accounts. Managed net credit losses
        were 5.84 percent for the quarter, up from 5.68 percent in the
        third quarter as contractual and bankruptcy losses increased
        following the historically low levels earlier in the year.
Commercial Group

Selected Segment
 Information                 Three Months Ended         Year Ended
                         --------------------------- -----------------
                         Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
(in millions)               2006      2006     2005     2006     2005
                         -------- --------- -------- -------- --------
Net interest income      $   189   $   159  $   183  $   677  $   731
Provision for loan and
 lease losses                (69)       (2)       9      (81)     (26)
Noninterest income            40        25      109       94      195
Noninterest expense           72        60       66      255      240
Net income                   140        78      135      368      443

Loan volume              $ 4,019   $ 3,104  $ 2,932  $12,854  $11,231
Average loans             37,552    32,414   30,928   33,137   30,154
    --  Commercial Group posts solid performance for the quarter.
        Commercial Group net income of $140 million for the fourth
        quarter was up from $78 million in the prior quarter,
        including a $69 million reduction in the allowance for loan
        and lease losses due principally to provisioning methodology
        changes for multi-family loans. This reduction reflects the
        characteristics of the portfolio and the company's long
        history of credit performance in this area. The decline in net
        income for all of 2006 versus 2005 reflected the negative
        impact to the net interest margin of the rise in short-term
        rates, but also the inclusion, in 2005, of a positive $80
        million (on an after tax basis) in one time items.

    --  Loan volume up 29 percent for the quarter. Loan volume of
        $4.02 billion was up 29 percent from the prior quarter with
        CCBI contributing approximately one-third of the increase.
        Loan volume for the year totaled $12.85 billion, up 14 percent
        from 2005, primarily driven by strong growth in nonresidential
        lending.

    --  Balance sheet growth reflects acquisition of CCBI. Average
        loans increased 16 percent to $37.55 billion from the third
        quarter and increased 10 percent to $33.14 billion in 2006
        compared with $30.15 billion in 2005. The growth in average
        loans reflected the impact of CCBI, which added $4.19 billion
        to the portfolio and continued growth of both multi-family and
        nonresidential mortgage lending.
Home Loans Group

Selected Segment
 Information               Three Months Ended          Year Ended
                      ---------------------------- -------------------
                      Dec. 31, Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
(in millions)            2006      2006      2005      2006      2005
                      -------- --------- --------- --------- ---------
Net interest income   $   273   $   275   $   473  $  1,174  $  1,985
Provision for loan and
 lease losses              47        84        22       189       110
Noninterest income        126       314       327     1,297     2,426
Noninterest expense       534       529       678     2,302     2,608
Net income               (122)      (24)       57       (48)    1,029

Loan volume           $34,897   $37,200   $48,701  $158,458  $202,697
Average loans          51,046    45,397    68,082    47,518    64,919
    --  Home Loans net loss reflects industry-wide deterioration in
        the subprime mortgage business. The quarter's net loss of $122
        million reflected the continued slowing of the housing market
        and a significant weakening of overall subprime market
        conditions. The decline in noninterest income from the
        previous quarter reflected weakening subprime credit
        performance on loans originated or acquired through the
        company's subprime channel and held for sale or previously
        sold. This deterioration in subprime credit negatively
        impacted the current quarter by approximately $160 million,
        driven by a reduction in fourth quarter gain on sale of
        approximately $110 million, as well as a reduction of
        approximately $50 million in the value of the company's
        subprime residuals. .

    --  Slowing market impacts origination volume. The 6 percent
        decline in home loan volume from the prior quarter was largely
        in-line with industry volumes. The 22 percent decline in
        lending volume year over year reflected not only the slowdown
        in housing but also the company's decision to reposition its
        correspondent business.

    --  Noninterest expense reduced during the year. Noninterest
        expense was down 12 percent year over year due to the
        continued success of the company's efficiency initiatives,
        which included a 27 percent reduction in staffing.

    COMPANY UPDATES

    --  On Oct. 1, WaMu completed its acquisition of CCBI, a
        multi-family and small commercial real estate lending
        institution located in Southern California, in a cash
        transaction with a purchase price of $989 million.

    --  WaMu completed the sale of its retail mutual fund
        asset-management company, WM Advisors, Inc., to the Principal
        Financial Group on Dec. 31, 2006 for a pretax gain of $667
        million.

    --  On Jan. 3, 2007, the company entered into an accelerated share
        repurchase agreement with a dealer pursuant to which it
        repurchased $2.7 billion of its common stock.

    --  WaMu's Board of Directors declared a cash dividend of 54 cents
        per share on the company's common stock, up from 53 cents per
        share in the previous quarter. Dividends on the common stock
        are payable on Feb. 15, 2007 to shareholders of record as of
        Jan. 31, 2007. In addition to declaring a dividend on the
        company's common stock, the company will pay a dividend of
        $0.38 per depository share of Series K Preferred Stock to be
        payable on March 15, 2007 to holders of record on March 1,
        2007.

    About WaMu

WaMu, through its subsidiaries, is one of the nation's leading consumer and small business banks. At Dec. 31, 2006, WaMu and its subsidiaries had assets of $346.29 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate more than 2,600 consumer and small business banking stores throughout the nation. WaMu's press releases are available at http://newsroom.wamu.com.

Webcast information: A conference call to discuss the company's financial results will be held on Wednesday, Jan. 17, 2007, at 5:00 p.m. ET and will be hosted by Kerry Killinger, chairman and chief executive officer and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 877-352-5208. Participants calling from outside the United States may dial 210-234-0002. The passcode "WaMu" is required to access the call. Via the Internet, the conference call is available on the Investor Relations portion of the company's web site at www.wamu.com/ir. A transcript of the prepared remarks will be available on the company's web site prior to the call and archived for 30 days. A recording of the conference call will be available from 7:00 p.m ET on Wednesday, Jan. 17, 2007, through 11:59 p.m. ET on Saturday, Jan. 27, 2007. The recorded message will be available at 866-463-4104. Callers from outside the United States may dial 203-369-1380.

Cautionary Statements

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

    --  Volatile interest rates and the impact on mortgage rates;

    --  Economic trends that negatively impact the real estate lending
        environment;

    --  Risks related to the option adjustable-rate mortgage product;

    --  Risks related to subprime lending;

    --  Operational risks;

    --  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

    --  Reputational risk.

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

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


                                      Quarter Ended
----------------------------------------------------------------------
                    Dec. 31, Sept. 30,  June 30,   Mar. 31,   Dec. 31,
                       2006      2006      2006       2006       2005
----------------------------------------------------------------------
PROFITABILITY
  Net income         $1,058      $748      $767       $985       $865
  Net interest
   income             1,998     1,947     2,060      2,117      2,241
  Noninterest
   income             1,592     1,570     1,578      1,638      1,526
  Noninterest
   expense            2,257     2,184     2,229      2,138      2,214

  Diluted earnings
   per common
   share:
     Income from
      continuing
      operations      $0.66     $0.76     $0.78      $0.97      $0.84
     Income from
      discontinued
      operations       0.44      0.01      0.01       0.01       0.01
     Net income        1.10      0.77      0.79       0.98       0.85

  Diluted weighted
   average number
   of common
   shares
   outstanding
  (in thousands)    955,817   967,376   975,504  1,003,460  1,011,395
  Net interest
   margin              2.58%     2.53%     2.65%      2.75%      2.88%
  Dividends
   declared per
   common share        0.53      0.52      0.51       0.50       0.49
  Book value per
   common share
   (period end)(1)    28.74     28.17     27.31      27.10      27.61
  Return on
   average
   assets(2)           1.20%     0.86%     0.88%      1.15%      0.99%
  Return on
   average common
   equity(2)          16.03     11.47     11.82      14.69      12.85
  Efficiency
   ratio(3)(4)        62.87     62.09     61.27      56.95      58.75

ASSET QUALITY
 (period end)
  Nonperforming
   assets(5) to
   total assets        0.80%     0.69%     0.62%      0.59%      0.57%
  Allowance as a
   percentage of
   total loans
   held in
   portfolio           0.72      0.64      0.68       0.68       0.74

CREDIT PERFORMANCE
  Provision for
   loan and lease
   losses              $344      $166      $224        $82       $217
  Net charge-offs       136       154       116        105        137

CAPITAL ADEQUACY
 (period end)
  Capital Ratios
   at WMI-
   consolidated
   level:
     Tangible
      equity to
      total
      tangible
      assets(6)        6.04%     5.86%     5.84%      5.75%      5.62%
     Estimated
      total risk-
      based
      capital to
      total risk-
      weighted
      assets(7)       11.78     11.10     11.26      10.77      10.80
  Capital Ratios
   at WMB-bank
   only level
   (well-
   capitalized
   minimum)(8):
     Tier 1
      capital to
      adjusted
      total assets
      (5.00%)          6.80      6.47      6.33       6.76       6.47
     Adjusted tier
      1 capital to
      total risk-
      weighted
      assets
      (6.00%)          8.26      8.12      8.13       8.92       8.49
     Total risk-
      based
      capital to
      total risk-
      weighted
      assets
      (10.00%)        12.19     11.30     11.39      11.82      11.50

SUPPLEMENTAL DATA
  Average balance
   sheet:
    Total loans
     held in
     portfolio     $239,265  $242,165  $242,334   $232,505   $227,568
    Total
     interest-
     earning
     assets(3)      314,784   312,827   313,239    307,777    314,490
    Total assets    353,056   349,542   348,664    343,660    349,172
    Total deposits  214,801   208,912   200,252    191,034    196,799
    Total
     stockholders'
     equity          26,700    26,147    25,958     26,825     26,949
  Period-end
   balance sheet:
    Total loans
     held in
     portfolio,
     net of
     allowance for
     loan and
     lease losses   223,330   240,215   241,840    238,362    227,937
    Total assets    346,288   348,877   350,884    348,401    343,573
    Total deposits  213,956   210,882   204,558    200,002    193,167
    Total
     stockholders'
     equity          26,969    26,458    26,131     25,819     27,279
    Common shares
     outstanding
     at the end of
     period (in
     thousands)(9)  944,479   945,098   962,880    958,819    993,914
    Employees at
     end of period   49,824    51,056    56,247     60,381     60,798




                                  Year Ended
--------------------------------------------------
                              Dec. 31,    Dec. 31,
                                 2006        2005
--------------------------------------------------
PROFITABILITY
  Net income                   $3,558      $3,432
  Net interest
   income                       8,121       8,218
  Noninterest
   income                       6,377       5,097
  Noninterest
   expense                      8,807       7,620

  Diluted earnings
   per common
   share:
     Income from
      continuing
      operations                $3.18       $3.69
     Income from
      discontinued
      operations                 0.46        0.04
     Net income                  3.64        3.73

  Diluted weighted
   average number
   of common
   shares
   outstanding
  (in thousands)              975,406     919,238
  Net interest
   margin                        2.60%       2.79%
  Dividends
   declared per
   common share                  2.06        1.90
  Book value per
   common share
   (period end)(1)              28.74       27.61
  Return on
   average
   assets(2)                     1.02%       1.05%
  Return on
   average common
   equity(2)                    13.52       14.91
  Efficiency
   ratio(3)(4)                  60.75       57.23

ASSET QUALITY
 (period end)
  Nonperforming
   assets(5) to
   total assets                  0.80%       0.57%
  Allowance as a
   percentage of
   total loans
   held in
   portfolio                     0.72        0.74

CREDIT PERFORMANCE
  Provision for
   loan and lease
   losses                        $816        $316
  Net charge-offs                 510         244

CAPITAL ADEQUACY
 (period end)
  Capital Ratios
   at WMI-
   consolidated
   level:
     Tangible
      equity to
      total
      tangible
      assets(6)                  6.04%       5.62%
     Estimated
      total risk-
      based
      capital to
      total risk-
      weighted
      assets(7)                 11.78       10.80
  Capital Ratios
   at WMB-bank
   only level
   (well-
   capitalized
   minimum)(8):
     Tier 1
      capital to
      adjusted
      total assets
      (5.00%)                    6.80        6.47
     Adjusted tier
      1 capital to
      total risk-
      weighted
      assets
      (6.00%)                    8.26        8.49
     Total risk-
      based
      capital to
      total risk-
      weighted
      assets
      (10.00%)                  12.19       11.50

SUPPLEMENTAL DATA
  Average balance
   sheet:
    Total loans
     held in
     portfolio               $239,094    $215,434
    Total
     interest-
     earning
     assets(3)                312,178     294,829
    Total assets              348,758     326,233
    Total deposits            203,829     186,023
    Total
     stockholders'
     equity                    26,406      23,024
  Period-end
   balance sheet:
    Total loans
     held in
     portfolio,
     net of
     allowance for
     loan and
     lease losses             223,330     227,937
    Total assets              346,288     343,573
    Total deposits            213,956     193,167
    Total
     stockholders'
     equity                    26,969      27,279
    Common shares
     outstanding
     at the end of
     period (in
     thousands)(9)            944,479     993,914
    Employees at
     end of period             49,824      60,798


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

(2) Includes income from continuing and discontinued operations.

(3) Based on continuing operations.

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

(5) Excludes nonaccrual loans held for sale.

(6) Excludes unrealized net gain/loss on available-for-sale securities
     and derivatives, goodwill and intangible assets (except MSR) and
     transition adjustments related to the adoption of FASB Statement
     No. 158, Employer's Accounting for Defined Benefit Pension and
     Other Postretirement Plans, as of December 31, 2006. Minority
     interests of $2.45 billion for December 31, 2006, $1.96 billion
     for September 30, 2006 and June 30, 2006 and $1.97 billion for
     March 31, 2006 are included in the numerator.

(7) The total risk-based capital ratio is estimated as if Washington
     Mutual, Inc. were a bank holding company subject to Federal
     Reserve Board capital requirements.

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

(9) Includes six million shares held in escrow for all periods
     reported.
WM-2
                       Washington Mutual, Inc.
                  Consolidated Statements of Income
             (dollars in millions, except per share data)
                             (unaudited)


                                       Quarter Ended
- --------------------------------------------------------------------
                     Dec. 31, Sept. 30, June 30,   Mar. 31,   Dec. 31,
                        2006      2006     2006       2006       2005
- --------------------------------------------------------------------
Interest Income
  Loans held for
   sale                 $520      $439     $398       $466       $676
  Loans held in
   portfolio           4,048     4,008    3,884      3,576      3,431
  Available-for-sale
   securities            392       379      368        322        303
  Trading assets         102       140      165        198        185
  Other interest and
   dividend income       148       139      120         95         73
----------------------------------------------------------------------
    Total interest
     income            5,210     5,105    4,935      4,657      4,668
Interest Expense
  Deposits             1,843     1,739    1,461      1,221      1,184
  Borrowings           1,369     1,419    1,414      1,319      1,243
----------------------------------------------------------------------
    Total interest
     expense           3,212     3,158    2,875      2,540      2,427
----------------------------------------------------------------------
      Net interest
       income          1,998     1,947    2,060      2,117      2,241
  Provision for loan
   and lease losses      344       166      224         82        217
----------------------------------------------------------------------
   Net interest
    income after
    provision for
    loan and lease
    losses             1,654     1,781    1,836      2,035      2,024
Noninterest
 Income
   Revenue from sales
    and servicing of
    home mortgage
    loans                164       118      222        263        418
   Revenue from sales
    and servicing of
    consumer loans       372       355      424        376        409
   Depositor and
    other retail
    banking fees         692       655      641        578        586
   Credit card fees      182       165      152        138        139
   Securities fees
    and commissions       54        52       56         52         47
   Insurance income       30        31       33         33         37
   Trading assets
    income (loss)        (81)       68     (129)       (13)      (273)
   Gain (loss) from
    sales of other
    available-for-
    sale securities       (1)       (1)       -         (7)        46
   Other income          180       127      179        218        117
----------------------------------------------------------------------
    Total noninterest
     income            1,592     1,570    1,578      1,638      1,526
Noninterest Expense
   Compensation and
    benefits(1)          945       939    1,021      1,032      1,028
   Occupancy and
    equipment            476       408      435        391        399
   Telecommunications
    and outsourced
    information
    services             133       142      145        134        139
   Depositor and
    other retail
    banking losses        64        57       51         56         60
   Advertising and
    promotion            107       124      117         95        109
   Professional fees      89        57       45         36         62
   Other expense         443       457      415        394        417
----------------------------------------------------------------------
      Total
       noninterest
       expense         2,257     2,184    2,229      2,138      2,214
      Minority
       interest
       expense            34        34       37          -          -
----------------------------------------------------------------------
      Income from
       continuing
       operations
       before income
       taxes             955     1,133    1,148      1,535      1,336
      Income taxes       315       394      389        559        479
----------------------------------------------------------------------
      Income from
       continuing
       operations,
       net of taxes      640       739      759        976        857
----------------------------------------------------------------------
Discontinued
 Operations(2)
      Income from
       discontinued
       operations
       before income
       taxes               2        14       12         15         12
      Gain on
       disposition of
       discontinued
       operations        667         -        -          -          -
      Income taxes       251         5        4          6          4
----------------------------------------------------------------------
      Income from
       discontinued
       operations,
       net of taxes      418         9        8          9          8
----------------------------------------------------------------------
Net Income            $1,058      $748     $767       $985       $865
======================================================================
Net Income Available
 to Common
 Stockholders         $1,050      $748     $767       $985       $865
======================================================================

Basic Earnings Per
 Common Share:
      Income from
       continuing
       operations      $0.68     $0.78    $0.80      $1.00      $0.87
      Income from
       discontinued
       operations       0.45      0.01     0.01       0.01       0.01
                     -------- --------- -------- ---------- ----------
         Net
          income        1.13      0.79     0.81       1.01       0.88

Diluted Earnings Per
 Common Share:
      Income from
       continuing
       operations      $0.66     $0.76    $0.78      $0.97      $0.84
      Income from
       discontinued
       operations       0.44      0.01     0.01       0.01       0.01
                     -------- --------- -------- ---------- ----------
         Net
          income        1.10      0.77     0.79       0.98       0.85

Dividends declared
 per common share       0.53      0.52     0.51       0.50       0.49
Basic weighted
average number
of common
shares
outstanding
(in thousands)       931,484   941,898  947,023    973,614    980,084
Diluted weighted
average number
of common
shares outstanding
(in thousands)       955,817   967,376  975,504  1,003,460  1,011,395

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


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

(2) Represents WM Advisors, Inc., the Company's retail mutual fund
     management business, which was sold in the fourth quarter of
     2006.
WM-3
                       Washington Mutual, Inc.
                  Consolidated Statements of Income
             (dollars in millions, except per share data)
                             (unaudited)


                                                       Year Ended
----------------------------------------------------------------------
                                                    Dec. 31,  Dec. 31,
                                                       2006      2005
----------------------------------------------------------------------
Interest Income
   Loans held for sale                             $  1,824  $  2,394
   Loans held in portfolio                           15,516    11,827
   Available-for-sale securities                      1,460       998
   Trading assets                                       606       469
   Other interest and dividend income                   501       232
----------------------------------------------------------------------
          Total interest income                      19,907    15,920
Interest Expense
   Deposits                                           6,263     3,728
   Borrowings                                         5,523     3,974
----------------------------------------------------------------------
          Total interest expense                     11,786     7,702
----------------------------------------------------------------------
               Net interest income                    8,121     8,218
   Provision for loan and lease losses                  816       316
----------------------------------------------------------------------
               Net interest income after provision
                for loan and lease losses             7,305     7,902
Noninterest Income
   Revenue from sales and servicing of home
    mortgage loans                                      768     2,017
   Revenue from sales and servicing of consumer
    loans                                             1,527       413
   Depositor and other retail banking fees            2,567     2,193
   Credit card fees                                     637       139
   Securities fees and commissions                      215       189
   Insurance income                                     127       172
   Trading assets loss                                 (154)     (257)
   Loss from sales of other available-for-sale
    securities                                           (9)      (84)
   Other income                                         699       315
----------------------------------------------------------------------
          Total noninterest income                    6,377     5,097
Noninterest Expense
   Compensation and benefits(1)                       3,937     3,701
   Occupancy and equipment                            1,711     1,520
   Telecommunications and outsourced information
    services                                            554       449
   Depositor and other retail banking losses            229       226
   Advertising and promotion                            443       315
   Professional fees                                    227       181
   Other expense                                      1,706     1,228
----------------------------------------------------------------------
          Total noninterest expense                   8,807     7,620
   Minority interest expense                            105         -
----------------------------------------------------------------------
               Income from continuing operations
                before income taxes                   4,770     5,379
               Income taxes                           1,656     1,985
----------------------------------------------------------------------
                    Income from continuing
                     operations, net of taxes         3,114     3,394
----------------------------------------------------------------------
Discontinued Operations(2)
               Income from discontinued operations
                before income taxes                      42        58
               Gain on disposition of discontinued
                operations                              667         -
               Income taxes                             265        20
----------------------------------------------------------------------
                    Income from discontinued
                     operations, net of taxes           444        38
----------------------------------------------------------------------
Net Income                                         $  3,558  $  3,432
======================================================================
Net Income Available to Common Stockholders        $  3,550  $  3,432
======================================================================

Basic Earnings Per Common Share:
      Income from continuing operations            $   3.27  $   3.80
      Income from discontinued operations              0.47      0.04
                                                   --------- ---------
             Net income                                3.74      3.84

Diluted Earnings Per Common Share:
      Income from continuing operations            $   3.18  $   3.69
      Income from discontinued operations              0.46      0.04
                                                   --------- ---------
             Net income                                3.64      3.73

Dividends declared per common share                    2.06      1.90
Basic weighted average number of common shares
 outstanding (in thousands)                         948,371   894,434
Diluted weighted average number of common shares
 outstanding (in thousands)                         975,406   919,238

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


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

(2) Represents WM Advisors, Inc., the Company's retail mutual fund
     management business, which was sold in the fourth quarter of
     2006.
WM-4
                       Washington Mutual, Inc.
            Consolidated Statements of Financial Condition
                        (dollars in millions)
                             (unaudited)



                      Dec. 31, Sept. 30,  June 30,  Mar. 31,  Dec. 31,
                         2006      2006      2006      2006      2005
----------------------------------------------------------------------
Assets
  Cash and cash
   equivalents         $6,948    $6,649    $6,675    $5,868    $6,214
  Federal funds sold
   and securities
   purchased under
   agreements to
   resell               3,743     5,102     4,112     3,995     2,137
  Trading assets        4,434     5,391     7,445     9,958    10,999
  Available-for-sale
   securities, total
   amortized cost of
   $25,073, $29,136,
   $28,504, $27,424,
   and $24,810:
       Mortgage-
        backed
        securities     18,063    22,353    21,438    21,388    20,648
       Investment
        securities      6,915     6,664     6,358     5,586     4,011
----------------------------------------------------------------------
         Total
          available-
          for-sale
          securities   24,978    29,017    27,796    26,974    24,659
   Loans held for
    sale               44,970    23,720    23,342    25,020    33,582
   Loans held in
    portfolio         224,960   241,765   243,503   240,004   229,632
   Allowance for
    loan and lease
    losses             (1,630)   (1,550)   (1,663)   (1,642)   (1,695)
----------------------------------------------------------------------
         Total loans
          held in
          portfolio,
          net of
          allowance
          for loan
          and lease
          losses      223,330   240,215   241,840   238,362   227,937
   Investment in
    Federal Home
    Loan Banks          2,705     3,013     3,500     4,200     4,257
   Mortgage
    servicing rights    6,193     6,288     9,162     8,736     8,041
   Goodwill             9,050     8,368     8,339     8,298     8,298
   Other assets        19,937    21,114    18,673    16,990    17,449
----------------------------------------------------------------------
            Total
             assets  $346,288  $348,877  $350,884  $348,401  $343,573
======================================================================
Liabilities
   Deposits:
        Noninterest-
         bearing
         deposits     $33,386   $34,667   $35,457   $36,531   $34,014
        Interest-
         bearing
         deposits     180,570   176,215   169,101   163,471   159,153
----------------------------------------------------------------------
          Total
           deposits   213,956   210,882   204,558   200,002   193,167
   Federal funds
    purchased and
    commercial paper    4,778     5,282     6,138     6,841     7,081
   Securities sold
    under agreements
    to repurchase      11,953    13,665    19,866    15,471    15,532
   Advances from
    Federal Home
    Loan Banks         44,297    47,247    55,311    65,283    68,771
   Other borrowings    32,852    33,883    27,995    24,872    23,777
   Other liabilities    9,035     9,501     8,926     8,140     7,951
   Minority
    interests(1)        2,448     1,959     1,959     1,973        15
----------------------------------------------------------------------
      Total
       liabilities    319,319   322,419   324,753   322,582   316,294
Stockholders' equity   26,969    26,458    26,131    25,819    27,279
----------------------------------------------------------------------
      Total
       liabilities
       and
       stockholders'
       equity        $346,288  $348,877  $350,884  $348,401  $343,573
======================================================================


(1) Primarily comprises perpetual non-cumulative preferred securities
     issued in 2006 by Washington Mutual Preferred Funding, LLC, an
     indirect subsidiary of Washington Mutual, Inc.
WM-5
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                         Quarter Ended
----------------------------------------------------------------------
                         Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
                            2006      2006     2006     2006     2005
----------------------------------------------------------------------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                  $26,458   $26,131  $25,819  $27,279  $22,259
Net income                 1,058       748      767      985      865
Cumulative effect from
 the adoption of
 Statement No. 156, net
 of income taxes(1)            -         -        -       35        -
Other comprehensive
 income (loss), net of
 income taxes               (107)      419     (151)    (219)     (91)
Cash dividends declared
 on common stock            (496)     (497)    (486)    (499)    (480)
Cash dividends declared
 on preferred stock           (8)        -        -        -        -
Common stock repurchased
 and retired                   -      (930)       -   (2,108)    (723)
Common stock issued for
 acquisition                   -         -        -        -    5,030
Common stock issued           64        95      182      346      419
Preferred stock issued         -       492        -        -        -
----------------------------------------------------------------------
Balance, end of period   $26,969   $26,458  $26,131  $25,819  $27,279
======================================================================


(1) As of January 1, 2006, the Company prospectively applied Statement
     of Financial Accounting Standards ("Statement") No. 156,
     Accounting for Servicing of Financial Assets. Statement No. 156
     permits an entity to choose either to continue the practice of
     amortizing servicing assets and assess such assets for
     impairment, or to report servicing assets at fair value. The
     Company has elected to report its mortgage servicing assets at
     fair value. Statement No. 156 also permits the one-time transfer
     of available-for-sale securities being utilized as MSR risk
     management instruments to trading securities. The cumulative
     effects, net of income taxes, resulted in a $29 million increase
     to January 1, 2006 retained earnings from the MSR fair value
     election and a $6 million increase to January 1, 2006 accumulated
     other comprehensive income from the transfer of AFS securities,
     designated as MSR risk management instruments, to the trading
     portfolio.
WM-6
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                             Quarter Ended
----------------------------------------------------------------------
                      Dec. 31, Sept. 30,  June 30,  Mar. 31,  Dec. 31,
                         2006      2006      2006      2006      2005
----------------------------------------------------------------------
RETAIL BANKING GROUP
    Condensed income
     statement:
      Net interest
       income        $  1,239  $  1,260  $  1,324  $  1,348  $  1,278
      Provision for
       loan and
       lease losses        47        53        13        54        26
      Noninterest
       income             774       738       735       672       730
      Inter-segment
       revenue             17        17        16        13         8
      Noninterest
       expense          1,103     1,079     1,109     1,089     1,100
----------------------------------------------------------------------
      Income from
       continuing
       operations
       before income
       taxes              880       883       953       890       890
      Income taxes        336       337       365       340       337
----------------------------------------------------------------------
      Income from
       continuing
       operations,
       net of taxes       544       546       588       550       553
      Income from
       discontinued
       operations,
       net of taxes        12         9         8         9         8
----------------------------------------------------------------------
           Net
            income   $    556  $    555  $    596  $    559  $    561
======================================================================
    Performance and other data:
       Efficiency
        ratio           54.33%    53.57%    53.44%    53.57%    54.56%
       Average loans $172,031  $180,839  $182,972  $174,035  $166,810
       Average
        assets        182,260   191,299   193,330   184,336   177,317
       Average deposits:
        Checking deposits:
         Noninterest
          bearing      21,873    21,440    21,418    20,346    19,953
         Interest
          bearing      33,010    34,792    37,518    40,343    43,192
----------------------------------------------------------------------
         Total
          checking
          deposits     54,883    56,232    58,936    60,689    63,145
         Savings and
          money
          market
          deposits     41,442    38,317    38,143    37,433    36,594
         Time
          deposits     47,188    45,405    41,724    40,940    40,473
----------------------------------------------------------------------
         Average
          total
          deposits    143,513   139,954   138,803   139,062   140,212
        Loan volume     7,966     9,006    10,488     7,255    11,563
        Employees at
         end of
         period        27,957    28,319    31,709    33,124    33,104
CARD SERVICES GROUP
  Managed basis(1)
    Condensed income statement:
  Net interest
   income            $    664  $    633  $    615  $    619  $    645
  Provision for loan
   and lease losses       555       345       417       330       454
  Noninterest income      451       343       389       344       352
  Inter-segment
   expense                  2         2         1         -         -
  Noninterest
   expense                316       294       293       298       268
----------------------------------------------------------------------
  Income before
   income taxes           242       335       293       335       275
  Income taxes             93       128       112       128       103
----------------------------------------------------------------------
             Net
              income $    149  $    207  $    181  $    207  $    172
======================================================================
    Performance and other data:
  Efficiency ratio      28.41%    30.16%    29.19%    30.95%    26.86%
  Average loans      $ 22,875  $ 21,706  $ 20,474  $ 20,086  $ 19,472
  Average assets       25,472    24,236    23,044    22,764    22,198
  Employees at end
   of period            2,676     2,731     2,597     2,871     3,124
  Securitization adjustments
  Condensed income statement:
  Net interest
   income            $   (437) $   (411) $   (405) $   (432) $   (409)
  Provision for loan
   and lease losses      (280)     (220)     (217)     (225)     (259)
  Noninterest income      157       191       188       207       150
  Performance and other data:
  Average loans       (12,811)  (12,169)  (11,565)  (12,107)  (11,011)
  Average assets      (11,035)  (10,330)   (9,753)  (10,219)   (9,267)
  Adjusted basis
  Condensed income statement:
  Net interest
   income            $    227  $    222  $    210  $    187  $    236
  Provision for loan
   and lease losses       275       125       200       105       195
  Noninterest income      608       534       577       551       502
  Inter-segment
   expense                  2         2         1         -         -
  Noninterest
   expense                316       294       293       298       268
----------------------------------------------------------------------
  Income before
   income taxes           242       335       293       335       275
  Income taxes             93       128       112       128       103
----------------------------------------------------------------------
            Net
             income  $    149  $    207  $    181  $    207  $    172
======================================================================
    Performance and other data:
  Average loans      $ 10,064  $  9,537  $  8,909  $  7,979  $  8,461
  Average assets       14,437    13,906    13,291    12,545    12,931
COMMERCIAL GROUP(2)
    Condensed income statement:
        Net interest
         income      $    189  $    159  $    166  $    163  $    183
        Provision
         (reversal
         of reserve)
         for loan
         and lease
         losses           (69)       (2)      (10)        -         9
        Noninterest
         income            40        25        17        12       109
        Noninterest
         expense           72        60        57        67        66
----------------------------------------------------------------------
        Income
         before
         income
         taxes            226       126       136       108       217
        Income taxes       86        48        52        41        82
----------------------------------------------------------------------
            Net
             income  $    140  $     78  $     84  $     67  $    135
======================================================================
    Performance and other data:
        Efficiency
         ratio          31.49%    32.21%    31.28%    38.47%    22.45%
        Average
         loans       $ 37,552  $ 32,414  $ 31,505  $ 31,011  $ 30,928
        Average
         assets        40,216    34,560    33,709    33,334    34,065
        Average
         deposits       3,609     2,323     2,242     2,259     2,428
        Loan volume     4,019     3,104     2,961     2,769     2,932
        Employees at
         end of
         period         1,409     1,242     1,252     1,326     1,319



                                                       Year Ended
----------------------------------------------------------------------
                                                   Dec. 31,   Dec. 31,
                                                      2006       2005
----------------------------------------------------------------------
RETAIL BANKING GROUP
    Condensed income statement:
      Net interest income                         $  5,171   $  4,890
      Provision for loan and lease losses              167        118
      Noninterest income                             2,919      2,580
      Inter-segment revenue                             63         42
      Noninterest expense                            4,380      4,187
----------------------------------------------------------------------
      Income from continuing operations before
       income taxes                                  3,606      3,207
      Income taxes                                   1,378      1,213
----------------------------------------------------------------------
      Income from continuing operations, net of
       taxes                                         2,228      1,994
      Income from discontinued operations, net
       of taxes                                         38         38
----------------------------------------------------------------------
           Net income                             $  2,266   $  2,032
======================================================================
    Performance and other data:
       Efficiency ratio                              53.72%     55.73%
       Average loans                              $177,473   $163,561
       Average assets                              187,810    173,803
       Average deposits:
        Checking deposits:
         Noninterest bearing                        21,274     18,948
         Interest bearing                           36,391     46,400
----------------------------------------------------------------------
         Total checking deposits                    57,665     65,348
         Savings and money market deposits          38,843     35,772
         Time deposits                              43,836     35,774
----------------------------------------------------------------------
         Average total deposits                    140,344    136,894
        Loan volume                                 34,715     46,951
        Employees at end of period                  27,957     33,104
CARD SERVICES GROUP
  Managed basis(1)
    Condensed income statement:
       Net interest income                        $  2,530   $    645
       Provision for loan and lease losses           1,647        454
       Noninterest income                            1,528        352
       Inter-segment expense                             5          -
       Noninterest expense                           1,201        268
----------------------------------------------------------------------
       Income before income taxes                    1,205        275
       Income taxes                                    460        103
----------------------------------------------------------------------
             Net income                           $    745   $    172
======================================================================
    Performance and other data:
       Efficiency ratio                              29.62%     26.86%
       Average loans                              $ 21,294   $  4,908
       Average assets                               23,888      5,595
       Employees at end of period                    2,676      3,124
  Securitization adjustments
  Condensed income statement:
       Net interest income                        $ (1,686)  $   (409)
       Provision for loan and lease losses            (943)      (259)
       Noninterest income                              743        150
  Performance and other data:
       Average loans                               (12,165)    (2,775)
       Average assets                              (10,337)    (2,336)
  Adjusted basis
  Condensed income statement:
       Net interest income                        $    844   $    236
       Provision for loan and lease losses             704        195
       Noninterest income                            2,271        502
       Inter-segment expense                             5          -
       Noninterest expense                           1,201        268
----------------------------------------------------------------------
       Income before income taxes                    1,205        275
       Income taxes                                    460        103
----------------------------------------------------------------------
            Net income                            $    745   $    172
======================================================================
    Performance and other data:
       Average loans                              $  9,129   $  2,133
       Average assets                               13,551      3,259
COMMERCIAL GROUP(2)
    Condensed income statement:
        Net interest income                       $    677   $    731
        Provision (reversal of reserve) for loan
         and lease losses                              (81)       (26)
        Noninterest income                              94        195
        Noninterest expense                            255        240
----------------------------------------------------------------------
        Income before income taxes                     597        712
        Income taxes                                   229        269
----------------------------------------------------------------------
            Net income                            $    368   $    443
======================================================================
    Performance and other data:
        Efficiency ratio                             33.20%     25.89%
        Average loans                             $ 33,137   $ 30,154
        Average assets                              35,471     33,197
        Average deposits                             2,611      2,592
        Loan volume                                 12,854     11,231
        Employees at end of period                   1,409      1,319


(This table is continued on "WM-7".)
--------------------------
(1) The managed basis presentation treats securitized and sold credit
     card receivables as if they were still on the balance sheet. The
     Company uses this basis in assessing the overall performance of
     this operating segment. Under this presentation, loans
     securitized and sold are added back to the balance sheet and the
     related interest, fee income and credit losses are added back to
     the income statement. These securitization adjustments are
     eliminated in the reconciliation of management accounting
     methodologies to the Company's GAAP financial results.

(2) Effective January 1, 2006, the Company reorganized its single
     family residential mortgage lending operations. This
     reorganization combined the Company's subprime mortgage
     origination business, Long Beach Mortgage, as well as its
     Mortgage Banker Finance lending operations with the Home Loans
     Group. Previously, these operations were reported within the
     Commercial Group. This change in organization was retrospectively
     applied to prior periods.
WM-7
                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

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

                                       Quarter Ended
----------------------------------------------------------------------
                      Dec. 31, Sept. 30,  June 30,  Mar. 31,  Dec. 31,
                         2006      2006      2006      2006      2005
----------------------------------------------------------------------
HOME LOANS GROUP(1)
  Condensed income
   statement:
    Net interest
     income          $    273  $    275  $    289  $    337  $    473
    Provision for
     loan and lease
     losses                47        84        38        21        22
    Noninterest
     income               126       314       458       399       327
    Inter-segment
     expense               15        15        15        13         8
    Noninterest
     expense              534       529       618       622       678
----------------------------------------------------------------------
    Income (loss)
     before income
     taxes               (197)      (39)       76        80        92
    Income taxes
     (benefit)            (75)      (15)       30        31        35
----------------------------------------------------------------------
        Net income
         (loss)      $   (122) $    (24) $     46  $     49  $     57
======================================================================
  Performance and
   other data:
    Efficiency
     ratio             139.14%    92.14%    84.34%    85.97%    85.56%
    Average loans    $ 51,046  $ 45,397  $ 43,907  $ 49,730  $ 68,082
    Average assets     71,511    70,556    70,875    77,977    94,693
    Average
     deposits          19,788    20,659    20,124    16,530    19,134
    Loan volume        34,897    37,200    41,364    44,998    48,701
    Employees at
     end of period     12,993    13,907    15,530    17,616    17,726
CORPORATE
 SUPPORT/TREASURY
 AND OTHER
  Condensed income
   statement:
    Net interest
     expense         $    (64) $   (106) $    (60) $    (44) $    (50)
    Provision
     (reversal of
     reserve) for
     loan and lease
     losses                (2)        1        (3)       (1)        -
    Noninterest
     income
     (expense)            142        75       (88)      150       (14)
    Noninterest
     expense              232       222       152        62       102
    Minority
     interest
     expense               34        34        37         -         -
----------------------------------------------------------------------
    Income (loss)
     from
     continuing
     operations
     before income
     taxes               (186)     (288)     (334)       45      (166)
    Income tax
     benefit               86       121       133         1        70
----------------------------------------------------------------------
      Income (loss)
       from
       continuing
       operations,
       net of taxes      (100)     (167)     (201)       46       (96)
      Income from
       discontinued
       operations,
       net of taxes       406         -         -         -         -
----------------------------------------------------------------------
         Net income
          (loss)     $    306  $   (167) $   (201) $     46  $    (96)
======================================================================
  Performance and
   other data:
    Average loans    $  1,294  $  1,245  $  1,178  $  1,142  $  1,148
    Average assets     46,414    41,041    39,355    37,414    32,142
    Average
     deposits          47,891    45,976    39,083    33,183    35,025
    Loan volume           144        58        82        24        96
    Employees at
     end of period      4,789     4,857     5,159     5,444     5,525

RECONCILING
 ADJUSTMENTS
  Condensed income
   statement:
    Net interest
     income(2)       $    134  $    137  $    131  $    126  $    121
    Provision
     (reversal of
     reserve) for
     loan and lease
     losses(3)             46       (95)      (14)      (97)      (35)
    Noninterest
     income
     (expense)(4)         (98)     (116)     (121)     (146)     (128)
----------------------------------------------------------------------
    Income (loss)
     before income
     taxes                (10)      116        24        77        28
    Income taxes
     (benefit)(5)         (39)       17       (37)       20        (8)
----------------------------------------------------------------------
        Net income   $     29  $     99  $     61  $     57  $     36
======================================================================
  Performance and
   other data:
    Average
     loans(6)        $ (1,573) $ (1,600) $ (1,601) $ (1,571) $ (1,555)
    Average
     assets(6)         (1,782)   (1,820)   (1,896)   (1,946)   (1,976)

TOTAL CONSOLIDATED
  Condensed income
   statement:
    Net interest
     income          $  1,998  $  1,947  $  2,060  $  2,117  $  2,241
    Provision for
     loan and lease
     losses               344       166       224        82       217
    Noninterest
     income             1,592     1,570     1,578     1,638     1,526
    Noninterest
     expense            2,257     2,184     2,229     2,138     2,214
    Minority
     interest
     expense               34        34        37         -         -
----------------------------------------------------------------------
    Income from
     continuing
     operations
     before income
     taxes                955     1,133     1,148     1,535     1,336
    Income taxes          315       394       389       559       479
----------------------------------------------------------------------
      Income from
       continuing
       operations,
       net of taxes       640       739       759       976       857
      Income from
       discontinued
       operations,
       net of taxes       418         9         8         9         8
----------------------------------------------------------------------
         Net income  $  1,058  $    748  $    767  $    985  $    865
======================================================================
  Performance and
   other data:
    Efficiency
     ratio              62.87%    62.09%    61.27%    56.95%    58.75%
    Average loans    $270,414  $267,832  $266,870  $262,326  $273,874
    Average assets    353,056   349,542   348,664   343,660   349,172
    Average
     deposits         214,801   208,912   200,252   191,034   196,799
    Loan volume        47,026    49,368    54,895    55,046    63,292
    Employees at
     end of period     49,824    51,056    56,247    60,381    60,798


                                                      Year Ended
----------------------------------------------------------------------
                                                  Dec. 31,    Dec. 31,
                                                     2006        2005
----------------------------------------------------------------------
HOME LOANS GROUP(1)
  Condensed income statement:
    Net interest income                          $  1,174   $   1,985
    Provision for loan and lease losses               189         110
    Noninterest income                              1,297       2,426
    Inter-segment expense                              58          42
    Noninterest expense                             2,302       2,608
----------------------------------------------------------------------
    Income (loss) before income taxes                 (78)      1,651
    Income taxes (benefit)                            (30)        622
----------------------------------------------------------------------
        Net income (loss)                        $    (48)  $   1,029
======================================================================
  Performance and other data:
    Efficiency ratio                                95.38%      59.69%
    Average loans                                $ 47,518   $  64,919
    Average assets                                 72,706      87,252
    Average deposits                               19,288      19,317
    Loan volume                                   158,458     202,697
    Employees at end of period                     12,993      17,726
CORPORATE SUPPORT/TREASURY AND OTHER
  Condensed income statement:
    Net interest expense                         $   (275)  $     (97)
    Provision (reversal of reserve) for loan and
     lease losses                                      (4)          4
    Noninterest income (expense)                      280        (172)
    Noninterest expense                               669         317
    Minority interest expense                         105           -
----------------------------------------------------------------------
    Income (loss) from continuing operations
     before income taxes                             (765)       (590)
    Income tax benefit                                342         263
----------------------------------------------------------------------
      Income (loss) from continuing operations,
       net of taxes                                  (423)       (327)
      Income from discontinued operations, net
       of taxes                                       406           -
----------------------------------------------------------------------
         Net income (loss)                       $    (17)  $    (327)
======================================================================
  Performance and other data:
    Average loans                                $  1,215   $   1,087
    Average assets                                 41,080      30,723
    Average deposits                               41,586      27,220
    Loan volume                                       308         278
    Employees at end of period                      4,789       5,525

RECONCILING ADJUSTMENTS
  Condensed income statement:
    Net interest income(2)                       $    530   $     473
    Provision (reversal of reserve) for loan and
     lease losses(3)                                 (159)        (85)
    Noninterest income (expense)(4)                  (484)       (434)
----------------------------------------------------------------------
    Income (loss) before income taxes                 205         124
    Income taxes (benefit)(5)                         (39)         41
----------------------------------------------------------------------
        Net income                               $    244   $      83
======================================================================
  Performance and other data:
    Average loans(6)                             $ (1,587)  $  (1,573)
    Average assets(6)                              (1,860)     (2,001)

TOTAL CONSOLIDATED
  Condensed income statement:
    Net interest income                          $  8,121   $   8,218
    Provision for loan and lease losses               816         316
    Noninterest income                              6,377       5,097
    Noninterest expense                             8,807       7,620
    Minority interest expense                         105           -
----------------------------------------------------------------------
    Income from continuing operations before
     income taxes                                   4,770       5,379
    Income taxes                                    1,656       1,985
----------------------------------------------------------------------
      Income from continuing operations, net of
       taxes                                        3,114       3,394
      Income from discontinued operations, net
       of taxes                                       444          38
----------------------------------------------------------------------
         Net income                              $  3,558   $   3,432
======================================================================
  Performance and other data:
    Efficiency ratio                                60.75%      57.23%
    Average loans                                $266,885   $ 260,281
    Average assets                                348,758     326,233
    Average deposits                              203,829     186,023
    Loan volume                                   206,335     261,157
    Employees at end of period                     49,824      60,798


---------------------
(1) See note 2 on preceding table.

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

(3) Represents the difference between the provision calculated using
     management accounting methodologies and those used in the
     Company's consolidated financial statements.

(4) Represents the difference between gain from mortgage loans
     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.

(5) Represents the tax effect of reconciling adjustments.

(6) 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.


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


                                                  Quarter Ended
                                           ---------------------------
                                                  Dec. 31, 2006
                                           ---------------------------
                                                             Interest
                                                             Income/
                                             Balance   Rate  Expense
                                           ---------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and securities
    purchased under
      agreements to resell                    $5,597   5.33%     $76
   Trading assets                              4,855   8.39      102
   Available-for-sale securities(1):
      Mortgage-backed securities              21,661   5.58      302
      Investment securities                    6,952   5.15       90
   Loans held for sale                        31,149   6.65      520
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(2)                       114,645   6.04    1,729
         Specialty mortgage finance(3)        19,196   6.68      321
         Home equity loans and lines of
          credit                              54,636   7.56    1,040
         Home construction(4)                  2,060   6.62       34
         Multi-family                         30,348   6.52      494
         Other real estate                     6,732   6.88      118
-----------------------------------------------------        --------
           Total loans secured by real
            estate                           227,617   6.55    3,736
      Consumer:
         Credit card                           9,597  11.28      273
         Other                                   280  12.54        9
      Commercial                               1,771   6.61       30
-----------------------------------------------------        --------
           Total loans held in portfolio     239,265   6.75    4,048
  Other                                        5,305   5.35       72
-----------------------------------------------------        --------
           Total interest-earning assets(5)  314,784   6.60    5,210
Noninterest-earning assets:
   Mortgage servicing rights                   6,230
   Goodwill                                    9,011
   Other assets(6)                            23,031
-----------------------------------------------------
           Total assets                     $353,056
=====================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits     $33,098   2.78      232
      Savings and money market deposits       53,314   3.34      449
      Time deposits                           93,415   4.90    1,162
-----------------------------------------------------        --------
           Total interest-bearing deposits   179,827   4.05    1,843
   Federal funds purchased and commercial
    paper                                      6,781   5.40       93
   Securities sold under agreements to
    repurchase                                12,177   5.43      169
   Advances from Federal Home Loan Banks      46,005   5.31      625
   Other                                      34,420   5.54      482
-----------------------------------------------------        --------
           Total interest-bearing
            liabilities                      279,210   4.53    3,212
                                                             --------
Noninterest-bearing sources:
   Noninterest-bearing deposits               34,974
   Other liabilities(7)                       10,111
   Minority interests                          2,061
   Stockholders' equity                       26,700
-----------------------------------------------------
           Total liabilities and
            stockholders' equity            $353,056
=====================================================
   Net interest spread and net interest
    income                                             2.07   $1,998
                                                             ========
   Impact of noninterest-bearing sources               0.51
   Net interest margin                                 2.58


                                                  Quarter Ended
                                           ---------------------------
                                                 Sept. 30, 2006
                                           --------------------------
                                                             Interest
                                                             Income/
                                             Balance   Rate  Expense
                                           ---------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and securities
    purchased under
      agreements to resell                    $5,085   5.38%     $70
   Trading assets                              6,264   8.92      140
   Available-for-sale securities(1):
      Mortgage-backed securities              21,488   5.41      291
      Investment securities                    6,910   5.06       88
   Loans held for sale                        25,667   6.82      439
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(2)                       123,355   5.94    1,830
         Specialty mortgage finance(3)        19,632   6.19      304
         Home equity loans and lines of
          credit                              53,221   7.54    1,010
         Home construction(4)                  2,059   6.41       33
         Multi-family                         27,100   6.42      435
         Other real estate                     5,696   6.76       98
-----------------------------------------------------        --------
           Total loans secured by real
            estate                           231,063   6.41    3,710
      Consumer:
         Credit card                           9,058  11.39      260
         Other                                   284  12.57        9
      Commercial                               1,760   6.41       29
-----------------------------------------------------        --------
           Total loans held in portfolio     242,165   6.60    4,008
  Other                                        5,248   5.21       69
-----------------------------------------------------        --------
           Total interest-earning assets(5)  312,827   6.51    5,105
Noninterest-earning assets:
   Mortgage servicing rights                   7,201
   Goodwill                                    8,339
   Other assets(6)                            21,175
-----------------------------------------------------
           Total assets                     $349,542
=====================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits     $34,866   2.90      255
      Savings and money market deposits       49,144   3.19      396
      Time deposits                           90,001   4.77    1,088
-----------------------------------------------------        --------
           Total interest-bearing deposits   174,011   3.95    1,739
   Federal funds purchased and commercial
    paper                                      7,382   5.31       99
   Securities sold under agreements to
    repurchase                                15,676   5.39      216
   Advances from Federal Home Loan Banks      52,886   5.28      711
   Other                                      27,815   5.59      393
-----------------------------------------------------        --------
           Total interest-bearing
            liabilities                      277,770   4.48    3,158
                                                             --------
Noninterest-bearing sources:
   Noninterest-bearing deposits               34,901
   Other liabilities(7)                        8,765
   Minority interests                          1,959
   Stockholders' equity                       26,147
-----------------------------------------------------
           Total liabilities and
            stockholders' equity            $349,542
=====================================================
   Net interest spread and net interest
    income                                             2.03   $1,947
                                                             ========
   Impact of noninterest-bearing sources               0.50
   Net interest margin                                 2.53


                                                   Quarter Ended
                                            --------------------------
                                                   Dec. 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                     $2,380   4.01%     $24
   Trading assets                              10,330   7.13      185
   Available-for-sale securities(1):
      Mortgage-backed securities               19,135   5.25      252
      Investment securities                     4,316   4.75       51
   Loans held for sale                         46,306   5.82      676
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(2)                        111,126   5.30    1,472
         Specialty mortgage finance(3)         22,430   6.06      340
         Home equity loans and lines of
          credit                               50,449   6.55      831
         Home construction(4)                   2,008   6.35       32
         Multi-family                          25,312   5.77      365
         Other real estate                      4,953   7.38       92
------------------------------------------------------        --------
           Total loans secured by real estate 216,278   5.78    3,132
      Consumer:
         Credit card                            8,259  11.96      249
         Other                                    654  10.79       18
      Commercial                                2,377   5.28       32
------------------------------------------------------        --------
           Total loans held in portfolio      227,568   6.02    3,431
  Other                                         4,455   4.29       49
------------------------------------------------------        --------
           Total interest-earning assets(5)   314,490   5.92    4,668
Noninterest-earning assets:
   Mortgage servicing rights                    7,680
   Goodwill                                     8,247
   Other assets(6)                             18,755
------------------------------------------------------
           Total assets                      $349,172
======================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits      $43,302   2.23      243
      Savings and money market deposits        43,831   2.09      231
      Time deposits                            74,300   3.77      710
------------------------------------------------------        --------
           Total interest-bearing deposits    161,433   2.90    1,184
   Federal funds purchased and commercial
    paper                                       8,236   4.07       85
   Securities sold under agreements to
    repurchase                                 15,330   4.09      160
   Advances from Federal Home Loan Banks       70,113   4.06      726
   Other                                       24,715   4.38      272
------------------------------------------------------        --------
           Total interest-bearing liabilities 279,827   3.42    2,427
                                                              --------
Noninterest-bearing sources:
   Noninterest-bearing deposits                35,366
   Other liabilities(7)                         7,015
   Minority interests                              15
   Stockholders' equity                        26,949
------------------------------------------------------
           Total liabilities and
            stockholders' equity             $349,172
======================================================
   Net interest spread and net interest
    income                                              2.50   $2,241
                                                              ========
   Impact of noninterest-bearing sources                0.38
   Net interest margin                                  2.88

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

(2) Capitalized interest recognized in earnings that resulted from
     negative amortization within the Option ARM portfolio totaled
     $333 million, $296 million and $133 million for the quarters
     ended December 31, 2006, September 30, 2006 and December 31,
     2005.

(3) Represents home loans purchased from dedicated subprime lenders
     and all loans originated by Long Beach Mortgage and held in its
     investment portfolio.

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

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

(6) Includes assets of discontinued operations.

(7) Includes liabilities of discontinued operations.
WM-9
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                                    Year Ended
                                            --------------------------
                                                   Dec. 31, 2006
                                             -------------------------
                                                              Interest
                                                              Income/
                                              Balance   Rate  Expense
                                            --------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and securities
    purchased under agreements to resell       $4,718   5.20%   $245
   Trading assets                               7,829   7.74     606
   Available-for-sale securities(1):
      Mortgage-backed securities               21,288   5.40   1,150
      Investment securities                     6,238   4.96     310
   Loans held for sale                         27,791   6.56   1,824
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(2)                        120,320   5.83   7,011
         Specialty mortgage finance(3)         19,602   6.25   1,226
         Home equity loans and lines of
          credit                               52,865   7.34   3,882
         Home construction(4)                   2,061   6.46     133
         Multi-family                          27,386   6.28   1,721
         Other real estate                      5,797   6.93     402
------------------------------------------------------        -------
            Total loans secured by real
             estate                           228,031   6.30  14,375
      Consumer:
         Credit card                            8,733  11.19     977
         Other                                    444  11.12      50
      Commercial                                1,886   6.06     114
------------------------------------------------------        -------
            Total loans held in portfolio     239,094   6.49  15,516
  Other                                         5,220   4.90     256
------------------------------------------------------        -------
            Total interest-earning assets(5)  312,178   6.38  19,907
Noninterest-earning assets:
   Mortgage servicing rights                    7,667
   Goodwill                                     8,489
   Other assets(6)                             20,424
------------------------------------------------------
           Total assets                      $348,758
======================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits      $36,477   2.63     960
      Savings and money market deposits        48,866   2.96   1,446
      Time deposits                            84,106   4.59   3,857
------------------------------------------------------        -------
           Total interest-bearing deposits    169,449   3.70   6,263
   Federal funds purchased and commercial
    paper                                       7,347   5.06     371
   Securities sold under agreements to
    repurchase                                 15,257   5.12     781
   Advances from Federal Home Loan Banks       56,619   4.99   2,828
   Other                                       28,796   5.36   1,543
------------------------------------------------------        -------
           Total interest-bearing liabilities 277,468   4.25  11,786
                                                              -------
Noninterest-bearing sources:
   Noninterest-bearing deposits                34,380
   Other liabilities(7)                         8,865
   Minority interests                           1,639
   Stockholders' equity                        26,406
------------------------------------------------------
          Total liabilities and stockholders'
           equity                            $348,758
======================================================
   Net interest spread and net interest
    income                                              2.13  $8,121
                                                              =======
   Impact of noninterest-bearing sources                0.47
   Net interest margin                                  2.60


                                                    Year Ended
                                            --------------------------
                                                   Dec. 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       $2,154   3.42%     $74
   Trading assets                               7,217   6.50      469
   Available-for-sale securities(1):
      Mortgage-backed securities               16,347   4.80      784
      Investment securities                     4,506   4.74      214
   Loans held for sale                         44,847   5.34    2,394
   Loans held in portfolio:
      Loans secured by real estate:
         Home loans(2)                        110,326   4.97    5,485
         Specialty mortgage finance(3)         20,561   5.90    1,214
         Home equity loans and lines of
          credit                               47,909   6.01    2,878
         Home construction(4)                   2,074   6.22      129
         Multi-family                          24,070   5.41    1,303
         Other real estate                      5,091   7.11      362
------------------------------------------------------        --------
            Total loans secured by real
             estate                           210,031   5.41   11,371
      Consumer:
         Credit card                            2,082  11.96      249
         Other                                    707  10.67       75
      Commercial                                2,614   5.04      132
------------------------------------------------------        --------
            Total loans held in portfolio     215,434   5.49   11,827
  Other                                         4,324   3.65      158
------------------------------------------------------        --------
            Total interest-earning assets(5)  294,829   5.40   15,920
Noninterest-earning assets:
   Mortgage servicing rights                    6,597
   Goodwill                                     6,712
   Other assets(6)                             18,095
------------------------------------------------------
           Total assets                      $326,233
======================================================
Liabilities
Interest-bearing liabilities:
   Deposits:
      Interest-bearing checking deposits      $46,524   1.95      906
      Savings and money market deposits        42,555   1.76      750
      Time deposits                            62,175   3.33    2,072
------------------------------------------------------        --------
           Total interest-bearing deposits    151,254   2.46    3,728
   Federal funds purchased and commercial
    paper                                       5,314   3.56      190
   Securities sold under agreements to
    repurchase                                 15,365   3.40      523
   Advances from Federal Home Loan Banks       68,713   3.46    2,377
   Other                                       21,603   4.09      884
------------------------------------------------------        --------
           Total interest-bearing liabilities 262,249   2.94    7,702
                                                              --------
Noninterest-bearing sources:
   Noninterest-bearing deposits                34,769
   Other liabilities(7)                         6,177
   Minority interests                              14
   Stockholders' equity                        23,024
------------------------------------------------------
          Total liabilities and stockholders'
           equity                            $326,233
======================================================
   Net interest spread and net interest
    income                                              2.46   $8,218
                                                              ========
   Impact of noninterest-bearing sources                0.33
   Net interest margin                                  2.79

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

(2) Capitalized interest recognized in earnings that resulted from
     negative amortization within the Option ARM portfolio totaled
     $1.07 billion and $292 million for the years ended December 31,
     2006 and December 31, 2005.

(3) Represents home loans purchased from dedicated subprime lenders
     and all loans originated by Long Beach Mortgage and held in its
     investment portfolio.

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

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

(6) Includes assets of discontinued operations.

(7) Includes liabilities of discontinued operations.
WM-10
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                   Change from
                                     Sept. 30,
                                          2006
                                   to Dec. 31,     Dec. 31,  Sept. 30,
                                          2006         2006       2006
----------------------------------------------------------------------
Deposits
 Retail deposits:
  Checking deposits:
   Noninterest bearing                   $372      $22,838    $22,466
   Interest bearing                    (1,038)      32,723     33,761
----------------------------------------------------------------------
     Total checking deposits             (666)      55,561     56,227
  Savings and money market
   deposits                             2,462       41,943     39,481
  Time deposits(1)                       (540)      46,821     47,361
----------------------------------------------------------------------
     Total retail deposits              1,256      144,325    143,069
  Commercial business and other
   deposits                              (656)      15,175     15,831
  Wholesale deposits                    3,972       44,638     40,666
  Custodial and escrow
   deposits(2)                         (1,498)       9,818     11,316
----------------------------------------------------------------------
     Total deposits                    $3,074     $213,956   $210,882
======================================================================



                                       June 30,  Mar. 31,     Dec. 31,
                                           2006      2006         2005
----------------------------------------------------------------------
Deposits
 Retail deposits:
  Checking deposits:
   Noninterest bearing                 $22,450   $22,378      $20,752
   Interest bearing                     35,958    39,289       42,253
----------------------------------------------------------------------
     Total checking deposits            58,408    61,667       63,005
  Savings and money market deposits     37,664    38,197       36,664
  Time deposits(1)                      43,685    41,534       40,359
----------------------------------------------------------------------
     Total retail deposits             139,757   141,398      140,028
  Commercial business and other
   deposits                             15,625    14,559       11,459
  Wholesale deposits                    37,024    31,277       29,917
  Custodial and escrow deposits(2)      12,152    12,768       11,763
----------------------------------------------------------------------
     Total deposits                   $204,558  $200,002     $193,167
======================================================================


(1) Weighted average remaining maturity of time deposits was 9 months
     at December 31, 2006, 10 months at September 30, 2006, June 30,
     2006 and March 31, 2006, and 11 months at December 31, 2005.

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


                                                 Dec. 31,   Sept. 30,
                                                    2006        2006
----------------------------------------------------------------------
Retail Deposit Accounts (number
 of accounts)
 Noninterest bearing checking                  9,611,706   9,403,072
 Interest bearing checking                     1,503,365   1,532,215
 Savings and money market                      6,525,772   6,379,068
----------------------------------------------------------------------
     Total transaction accounts,
      end of period(1)                        17,640,843  17,314,355
======================================================================

 Net change in noninterest
  bearing checking accounts                      208,634     339,614
 Net change in checking accounts                 179,784     307,433



                                   June 30,    Mar. 31,       Dec. 31,
                                      2006        2006           2005
----------------------------------------------------------------------
Retail Deposit Accounts (number
 of accounts)
 Noninterest bearing checking    9,063,458   8,630,646      8,299,031
 Interest bearing checking       1,564,396   1,593,018      1,584,476
 Savings and money market        6,161,187   5,929,653      5,694,102
----------------------------------------------------------------------
     Total transaction
      accounts, end of
      period(1)                 16,789,041  16,153,317     15,577,609
======================================================================

 Net change in noninterest
  bearing checking accounts        432,812     331,615        181,111
 Net change in checking
  accounts                         404,190     340,157        203,190


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




                                                 Dec. 31,   Sept. 30,
                                                    2006        2006
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of period                        2,225       2,201
 Stores opened during the quarter                     81 (1)      25
 Stores closed during the quarter                    (81)         (1)
----------------------------------------------------------------------
Stores, end of period                              2,225       2,225
======================================================================





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


(1) Includes 26 retail banking stores acquired through the merger with
     Commercial Capital Bancorp.

(2) Includes two retail banking stores acquired through the merger
     with Providian Financial Corporation. These stores were not
     considered to be an integral component of Washington Mutual's
     retail banking franchise and were subsequently sold in April of
     2006.
WM-11
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                      Quarter Ended
----------------------------------------------------------------------
                    Dec. 31, Sept. 30,  June 30,    Mar. 31,  Dec. 31,
                       2006      2006      2006        2006      2005
----------------------------------------------------------------------
Loan Volume
   Home loans:
    Short-term
     adjustable-
     rate loans(1):
      Option ARMs    $9,487   $11,601   $11,256      $8,777   $12,565
      Other ARMs         13        42     1,859       2,943     1,222
----------------------------------------------------------------------
       Total short-
        term
        adjustable-
        rate loans    9,500    11,643    13,115      11,720    13,787
    Medium-term
     adjustable-
     rate loans(2)   17,323    16,707    16,041      14,865    14,581
    Fixed-rate
     loans            7,351     8,818    13,695      17,605    22,061
----------------------------------------------------------------------
         Total home
          loan
          volume     34,174    37,168    42,851      44,190    50,429
   Home equity
    loans and lines
    of credit         8,098     8,498     8,251       7,306     9,118
   Home
    construction(3)     298       269       421         493       479
   Multi-family       2,977     2,186     2,230       2,034     2,595
   Other real
    estate            1,182       983       787         716       419
----------------------------------------------------------------------
         Total
          loans
          secured
          by real
          estate     46,729    49,104    54,540      54,739    63,040
   Consumer(4)           23        26        36          49        79
   Commercial           274       238       319         258       173
----------------------------------------------------------------------
         Total loan
          volume    $47,026   $49,368   $54,895     $55,046   $63,292
======================================================================
Loan Volume by
 Channel
   Retail           $24,426   $22,239   $23,709     $22,580   $27,676
   Wholesale         16,002    14,964    14,798      16,722    17,190
   Purchased          6,398    11,560    12,033       7,318    10,092
   Correspondent        200       605     4,355       8,426     8,334
----------------------------------------------------------------------
         Total loan
          volume by
          channel   $47,026   $49,368   $54,895     $55,046   $63,292
======================================================================
Refinancing
 Activity(5)
   Home loan
    refinancing     $22,261   $20,104   $26,667     $26,871   $30,727
   Home equity
    loans and lines
    of credit and
    consumer            599       689       161         215       219
   Home
    construction
    loans               283       254       379         393       381
   Multi-family and
    other real
    estate            1,254       763       799         774       831
----------------------------------------------------------------------
     Total
      refinancing   $24,397  $ 21,810  $ 28,006     $28,253  $ 32,158
======================================================================


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

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

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

(4) Excludes credit card loan volume.

(5) Includes loan refinancing entered into by both new and pre-
     existing loan customers.
WM-12
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                                       Year Ended
----------------------------------------------------------------------
                                                    Dec. 31,  Dec. 31,
                                                       2006      2005
----------------------------------------------------------------------
Loan Volume
    Home loans:
    Short-term adjustable-rate loans(1):
      Option ARMs                                  $ 41,122  $ 64,126
      Other ARMs                                      4,856     3,800
----------------------------------------------------------------------
         Total short-term adjustable-rate loans      45,978    67,926
    Medium-term adjustable-rate loans(2)             64,936    57,832
    Fixed-rate loans                                 47,469    81,964
----------------------------------------------------------------------
         Total home loan volume                     158,383   207,722
   Home equity loans and lines of credit             32,153    39,721
   Home construction(3)                               1,481     1,352
   Multi-family                                       9,428     9,755
   Other real estate                                  3,668     1,599
----------------------------------------------------------------------
         Total loans secured by real estate         205,113   260,149
   Consumer(4)                                          134       387
   Commercial                                         1,088       621
----------------------------------------------------------------------
         Total loan volume                         $206,335  $261,157
======================================================================
Loan Volume by Channel
   Retail                                          $ 92,953  $116,425
   Wholesale                                         62,486    74,229
   Purchased                                         37,310    31,855
   Correspondent                                     13,586    38,648
----------------------------------------------------------------------
         Total loan volume by channel              $206,335  $261,157
======================================================================
Refinancing Activity(5)
   Home loan refinancing                           $ 95,901  $119,918
   Home equity loans and lines of credit and
    consumer                                          1,665     1,331
   Home construction loans                            1,310     1,094
   Multi-family and other real estate                 3,590     2,928
----------------------------------------------------------------------
         Total refinancing                         $102,466  $125,271
======================================================================


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

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

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

(4) Excludes credit card loan volume.

(5) Includes loan refinancing entered into by both new and pre-
     existing loan customers.
WM-13
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                       Change from
                                    Sept. 30, 2006
                                                to  Dec. 31, Sept. 30,
                                     Dec. 31, 2006      2006      2006
Loans by Product Type
  Loans held in portfolio:
   Loans secured by real estate:
     Home:
      Short-term adjustable-rate
       loans(1):
        Option ARMs(2)                    $(3,585)  $63,557   $67,142
        Other ARMs                         (1,284)   15,091    16,375
----------------------------------------------------------------------
         Total short-term
          adjustable-rate loans            (4,869)   78,648    83,517
      Medium-term adjustable-rate
       loans(3)                           (17,966)   29,774    47,740
      Fixed-rate loans                       (146)    9,782     9,928
----------------------------------------------------------------------
         Total home loans                 (22,981)  118,204   141,185
     Home equity loans and lines of
      credit                                  560    54,924    54,364
     Home construction(4)                       5     2,082     2,077
     Multi-family                           2,754    30,161    27,407
     Other real estate                        876     6,745     5,869
----------------------------------------------------------------------
         Total loans secured by
          real estate(5)                  (18,786)  212,116   230,902
   Consumer:
      Credit card                           2,054    10,861     8,807
      Other                                    (5)      276       281
   Commercial                                 (68)    1,707     1,775
----------------------------------------------------------------------
         Total loans held in
          portfolio(6)                    (16,805)  224,960   241,765
  Less: allowance for loan and
   lease losses                               (80)   (1,630)   (1,550)
----------------------------------------------------------------------
         Total net loans held in
          portfolio                       (16,885)  223,330   240,215
  Loans held for sale(7)                   21,250    44,970    23,720
----------------------------------------------------------------------
         Total net loans                   $4,365  $268,300  $263,935
======================================================================


                                        June 30,  Mar. 31,    Dec. 31,
                                            2006      2006        2005
Loans by Product Type
  Loans held in portfolio:
   Loans secured by real estate:
     Home:
       Short-term adjustable-rate
        loans(1):
         Option ARMs(2)                 $69,224   $71,153     $71,201
         Other ARMs                      15,021    14,797      13,656
----------------------------------------------------------------------
          Total short-term adjustable-
           rate loans                    84,245    85,950      84,857
       Medium-term adjustable-rate
        loans(3)                         52,032    49,391      41,511
       Fixed-rate loans                   9,424     8,660       8,922
----------------------------------------------------------------------
         Total home loans               145,701   144,001     135,290
     Home equity loans and lines of
      credit                             52,981    51,872      50,851
     Home construction(4)                 2,082     2,095       2,037
     Multi-family                        26,749    26,151      25,601
     Other real estate                    5,537     5,353       5,035
----------------------------------------------------------------------
         Total loans secured by real
          estate(5)                     233,050   229,472     218,814
   Consumer:
      Credit card                         8,451     7,906       8,043
      Other                                 287       602         638
   Commercial                             1,715     2,024       2,137
----------------------------------------------------------------------
         Total loans held in
          portfolio(6)                  243,503   240,004     229,632
  Less: allowance for loan and lease
   losses                                (1,663)   (1,642)     (1,695)
----------------------------------------------------------------------
         Total net loans held in
          portfolio                     241,840   238,362     227,937
  Loans held for sale(7)                 23,342    25,020      33,582
----------------------------------------------------------------------
         Total net loans               $265,182  $263,382    $261,519
======================================================================


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

(2) The total amount by which the unpaid principal balance of Option
     ARM loans exceeded their original principal amount was $852
     million, $681 million, $474 million, $298 million, and $160
     million at December 31, 2006, September 30, 2006, June 30, 2006,
     March 31, 2006 and December 31, 2005.

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

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

(5) Includes home loans purchased from dedicated subprime lenders and
     all loans originated by Long Beach Mortgage and held in its
     investment portfolio. Balances of such loans were $18.79 billion,
     $20.12 billion, $20.53 billion, $20.25 billion and $21.16 billion
     at December 31, 2006, September 30, 2006, June 30, 2006, March
     31, 2006 and December 31, 2005.

(6) Includes net unamortized deferred loan origination costs of $1.48
     billion, $1.61 billion, $1.62 billion, $1.61 billion, and $1.53
     billion at December 31, 2006, September 30, 2006, June 30, 2006,
     March 31, 2006 and December 31, 2005.

(7) Fair value of loans held for sale was $45.06 billion, $23.80
     billion, $23.35 billion, $25.03 billion, and $33.70 billion as of
     December 31, 2006, September 30, 2006, June 30, 2006, March 31,
     2006 and December 31, 2005.
WM-14
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)







                                        Change from           Weighted
                                     Sept. 30, 2006            Average
                                                 to  Dec. 31,  Coupon
                                      Dec. 31, 2006      2006   Rate
Selected Loans Secured by Real
 Estate and MBS
   Home loans held in portfolio:
       Short-term adjustable-rate
        loans(1):
           Option ARMs                     $(3,585)  $63,557     7.44%
           Other ARMs                       (1,284)   15,091     7.17
-------------------------------------------------------------
                Total short-term
                 adjustable-rate
                 loans                      (4,869)   78,648     7.39
       Medium-term adjustable-rate
        loans(2)                           (17,966)   29,774     5.77
       Fixed-rate loans                       (146)    9,782     6.65
-------------------------------------------------------------
                Total home loans
                 held in portfolio         (22,981)  118,204     6.92
   Home equity loans and lines of
    credit:
       Short-term (Prime-based or
        treasury-based)(1)                  (1,618)   34,213     8.40
       Fixed-rate loans                      2,178    20,711     7.45
-------------------------------------------------------------
                Total home equity
                 loans and lines of
                 credit                        560    54,924     8.04
   Multi-family loans held in
    portfolio:
       Short-term adjustable-rate
        loans(1):
           Option ARMs                         197     9,164     7.18
           Other ARMs                        1,615     7,473     7.12
-------------------------------------------------------------
                Total short-term
                 adjustable-rate
                 loans                       1,812    16,637     7.15
       Medium-term adjustable-rate
        loans(2)                               851    11,757     5.68
       Fixed-rate loans                         91     1,767     6.44
-------------------------------------------------------------
                Total multi-family
                 loans held in
                 portfolio                   2,754    30,161     6.54
-------------------------------------------------------------
                Total selected loans
                 held in portfolio
                 secured by real
                 estate(3)                 (19,667)  203,289     7.17
   Loans held for sale(4)                   21,337    44,724     6.32
-------------------------------------------------------------
                Total selected loans
                 secured by real
                 estate                      1,670   248,013     7.01
   MBS(5):
       Short-term adjustable-rate
        MBS(1)                              (2,026)    6,056     5.68
       Medium-term adjustable-rate
        MBS(2)                              (2,844)    2,459     5.08
       Fixed-rate MBS                          580     9,548     5.27
-------------------------------------------------------------
                Total MBS(6)                (4,290)   18,063     5.38
-------------------------------------------------------------
                Total selected loans
                 secured by real
                 estate and MBS            $(2,620) $266,076     6.90
=============================================================





                                           Weighted           Weighted
                                            Average            Average
                                 Sept. 30,  Coupon   Dec. 31,  Coupon
                                      2006   Rate        2005   Rate
Selected Loans Secured by Real
 Estate and MBS
   Home loans held in portfolio:
       Short-term adjustable-
        rate loans(1):
           Option ARMs            $67,142     7.13%  $71,201     5.88%
           Other ARMs              16,375     7.01    13,656     6.43
------------------------------------------          ---------
                Total short-term
                 adjustable-rate
                 loans             83,517     7.11    84,857     5.97
       Medium-term adjustable-
        rate loans(2)              47,740     5.72    41,511     5.58
       Fixed-rate loans             9,928     6.59     8,922     6.56
------------------------------------------          ---------
                Total home loans
                 held in
                 portfolio        141,185     6.60   135,290     5.89
   Home equity loans and lines
    of credit:
       Short-term (Prime-based
        or treasury-based)(1)      35,831     8.40    37,112     7.26
       Fixed-rate loans            18,533     7.16    13,739     6.56
------------------------------------------          ---------
                Total home
                 equity loans
                 and lines of
                 credit            54,364     7.98    50,851     7.07
   Multi-family loans held in
    portfolio:
       Short-term adjustable-
        rate loans(1):
           Option ARMs              8,967     6.95     9,529     5.74
           Other ARMs               5,858     6.94     6,406     5.92
------------------------------------------          ---------
                Total short-term
                 adjustable-rate
                 loans             14,825     6.95    15,935     5.81
       Medium-term adjustable-
        rate loans(2)              10,906     5.59     8,118     5.29
       Fixed-rate loans             1,676     6.45     1,548     6.59
------------------------------------------          ---------
                Total multi-
                 family loans
                 held in
                 portfolio         27,407     6.38    25,601     5.69
------------------------------------------          ---------
                Total selected
                 loans held in
                 portfolio
                 secured by real
                 estate(3)        222,956     6.90   211,742     6.15
   Loans held for sale(4)          23,387     6.64    32,928     6.15
------------------------------------------          ---------
                Total selected
                 loans secured
                 by real estate   246,343     6.88   244,670     6.15
   MBS(5):
       Short-term adjustable-
        rate MBS(1)                 8,082     5.55     7,965     4.88
       Medium-term adjustable-
        rate MBS(2)                 5,303     5.09     4,504     4.97
       Fixed-rate MBS               8,968     5.31     8,179     5.11
------------------------------------------          ---------
                Total MBS(6)       22,353     5.35    20,648     4.99
------------------------------------------          ---------
                Total selected
                 loans secured
                 by real estate
                 and MBS         $268,696     6.75  $265,318     6.06
==========================================          =========


(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 December 31, 2006, September 30, 2006, and December 31, 2005,
     the adjustable-rate loans with lifetime caps were $169.60
     billion, $190.36 billion, and $184.87 billion with a lifetime
     weighted average cap rate of 12.29%, 12.13% and 12.25%.

(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 December 31, 2006, September 30, 2006 and December 31, 2005,
     the par value of adjustable-rate MBS with lifetime caps were
     $8.17 billion, $13.20 billion and $12.46 billion with a lifetime
     weighted average cap rate of 10.54%, 10.41% and 10.31%.



                                               Sept. 30,     Dec. 31,
                                                    2006         2005
                                             to Dec. 31,  to Dec. 31,
                                                    2006         2006
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
    Balance, beginning of period              $23,720      $33,582
       Mortgage loans originated,
        purchased and transferred from
        held in portfolio                      47,091      138,620
       Mortgage loans transferred to
        held in portfolio                      (1,156)      (3,918)
       Mortgage loans sold and
        other(1)                              (24,599)    (122,905)
       Net change in consumer loans
        held for sale                             (86)        (409)
----------------------------------------------------------------------
    Balance, end of period                    $44,970      $44,970
======================================================================

Rollforward of Home Loans Held in
 Portfolio
    Balance, beginning of period             $141,185     $135,290
        Loans originated, purchased and
         transferred from held for sale         6,990       45,204
        Loan payments, transferred to
         held for sale and other              (29,971)     (62,290)
----------------------------------------------------------------------
    Balance, end of period                   $118,204     $118,204
======================================================================


(1) The unpaid principal balance ("UPB") of home loans sold was $26.34
     billion for the three months ended December 31, 2006 and $122.91
     billion for the twelve months ended December 31, 2006.
WM-15
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                              Quarter Ended
                   ---------------------------------------------------

                                                        --------------
                                                          Pro Forma
                                                           Results
                                                           Assuming
                                                         Retrospective
                                                         Application
                                                         of SFAS No.
                                                              156
----------------------------------------------------------------------
Detail of Revenue
 from Sales and
 Servicing of Home
 Mortgage Loans(1) Dec. 31, Sept. 30, June 30, Mar. 31,       Dec. 31,
                      2006      2006     2006     2006           2005
----------------------------------------------------------------------
Gain from home
 mortgage loans
 and originated
 mortgage-backed
 securities, net
 of hedging and
 risk management
 instruments(2):
  Gain from home
   mortgage loans
   and originated
   mortgage-backed
   securities          $64      $206     $190     $166           $218
  Revaluation gain
   (loss) from
   derivatives
   economically
   hedging loans
   held for sale        91       (87)      61       43             20
----------------------------------------------------------------------

     Gain from
      home
      mortgage
      loans and
      originated
      mortgage-
      backed
      securities,
      net of
      hedging and
      risk
      management
      instruments      155       119      251      209            238
----------------------------------------------------------------------
Home mortgage loan
 servicing revenue
 (expense):
  Home mortgage
   loan servicing
   revenue(3)          497       525      586      572            544
  Change in MSR
   fair value due
   to payments on
   loans and
   other(1)           (375)     (410)    (460)    (409)          (483)
----------------------------------------------------------------------
     Net mortgage
      loan
      servicing
      revenue          122       115      126      163             61
  Change in MSR
   fair value due
   to valuation
   inputs or
   assumptions(1)      (80)     (469)     435      413            805
  Revaluation gain
   (loss) from
   derivatives
   economically
   hedging MSR(1)      (33)      353     (433)    (522)          (654)
  Adjustment to
   MSR fair value
   for MSR sale          -         -     (157)       -              -
----------------------------------------------------------------------

      Home
       mortgage
       loan
       servicing
       revenue
       (expense),
       net of MSR
       valuation
       changes and
       derivative
       risk
       management
       instruments       9        (1)     (29)      54            212
----------------------------------------------------------------------
     Total revenue
      from sales
      and
      servicing of
      home
      mortgage
      loans           $164      $118     $222     $263            450
========================================================
Reconciliation
 from pro forma to
 GAAP results(1):
  Deduct: Increase
   in MSR fair
   value not
   recorded due to
   lower of cost
   or fair value
   accounting                                                     (39)
  Other                                                             7
------------------                                      --------------
     Total GAAP
      revenue from
      sales and
      servicing of
      home
      mortgage
      loans                                                      $418
==================                                      ==============

                                                     Year Ended
                                               -----------------------

                                                        --------------
                                                          Pro Forma
                                                           Results
                                                           Assuming
                                                         Retrospective
                                                         Application
                                                         of SFAS No.
                                                              156
----------------------------------------------------------------------
Detail of Revenue
 from Sales and
 Servicing of Home
 Mortgage Loans(1)                             Dec. 31,       Dec. 31,
                                                  2006           2005
----------------------------------------------------------------------
Gain from home
 mortgage loans
 and originated
 mortgage-backed
 securities, net
 of hedging and
 risk management
 instruments(2):
  Gain from home
   mortgage loans
   and originated
   mortgage-backed
   securities                                     $626           $873
  Revaluation gain
   from
   derivatives
   economically
   hedging loans
   held for sale                                   109             76
----------------------------------------------------------------------

     Gain from
      home
      mortgage
      loans and
      originated
      mortgage-
      backed
      securities,
      net of
      hedging and
      risk
      management
      instruments                                  735            949
----------------------------------------------------------------------
Home mortgage loan
 servicing revenue
 (expense):
  Home mortgage
   loan servicing
   revenue(3)                                    2,181          2,110
  Change in MSR
   fair value due
   to payments on
   loans and
   other(1)                                     (1,654)        (1,729)
----------------------------------------------------------------------
    Net mortgage
     loan
     servicing
     revenue                                       527            381
  Change in MSR
   fair value due
   to valuation
   inputs or
   assumptions(1)                                  299          1,538
  Revaluation loss
   from
   derivatives
   economically
   hedging MSR(1)                                 (636)          (814)
  Adjustment to
   MSR fair value
   for MSR sale                                   (157)             -
----------------------------------------------------------------------

   Home mortgage
    loan servicing
    revenue, net
    of MSR
    valuation
    changes and
    derivative
    risk
    management
    instruments                                     33          1,105
----------------------------------------------------------------------
   Total revenue
    from sales and
    servicing of
    home mortgage
    loans                                         $768          2,054
========================================================
Reconciliation
 from pro forma to
 GAAP results(1):
  Deduct: Increase
   in MSR fair
   value not
   recorded due to
   lower of cost
   or fair value
   accounting                                                     (57)
  Other                                                            20
------------------                                      --------------
     Total GAAP
      revenue from
      sales and
      servicing of
      home
      mortgage
      loans                                                    $2,017
==================                                      ==============


(1) The results for the quarters ended December 31, 2006, September
     30, 2006, June 30, 2006, March 31, 2006 and the year ended
     December 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. The Company adopted
     Statement No. 156 effective January 1, 2006, and the
     retrospective application of this Statement to prior periods is
     not permitted.  Management believes that due to the significant
     differences between the fair value measurement method and the
     amortization method of accounting for MSR, comparative
     information prepared on a similar basis of accounting is valuable
     to users of this financial information. The information for 2005
     is a non-GAAP measure, and incorporates the following
     assumptions: 1) the fair value measurement method of accounting
     for MSR was in effect during 2005, 2) MSR are initially
     capitalized at fair value instead of allocated book value, and 3)
     the change in value of available-for-sale securities that were on
     the balance sheet at December 31, 2005 and designated as MSR risk
     management instruments are reported as revaluation gain (loss) on
     trading securities.  A reconciliation of the non-GAAP amounts to
     the previously disclosed GAAP results has been provided.

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

(3) Includes late charges and loan pool expenses (the shortfall of the
     scheduled interest required to be remitted to investors compared
     to what is collected from the borrowers upon payoff).
WM-16
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                     Quarter Ended
                  ----------------------------------------------------

                                                        --------------
                                                          Pro Forma
                                                           Results
                                                           Assuming
                                                         Retrospective
                                                         Application
                                                              of
                                                             SFAS
                                                           No. 156
----------------------------------------------------------------------
                 Dec. 31, Sept. 30, June 30,    Mar. 31,      Dec. 31,
                    2006      2006     2006        2006          2005
----------------------------------------------------------------------
MSR Risk
 Management(1):
  Change in
MSR fair value
 due to
 valuation
 inputs or
 assumptions(2)     $(80)    $(469)    $435        $413          $805
Gain (loss) on
 MSR risk
 management
 instruments:
  Revaluation
   gain (loss)
   from
   derivatives       (33)      353     (433)       (522)         (654)
  Revaluation
   gain (loss)
   from certain
   trading
   securities(2)      (5)       39      (47)        (42)         (165)
  Loss from
   certain
   available-
   for-sale
   securities          -        (1)       -           -             -
----------------------------------------------------------------------
    Total gain
     (loss) on
     MSR risk
     management
     instruments     (38)      391     (480)       (564)         (819)
----------------------------------------------------------------------
    Total MSR
     risk
     management    $(118)     $(78)    $(45)      $(151)         $(14)
======================================================================
Reconciliation
 from pro forma
 to GAAP
 results(2):
  Revaluation
   loss from
   certain
   trading
   securities                                                   $(165)
  Add back:
   Decrease in
   value of
   trading
   securities
   assumed
   transferred
   from the
   available-
   for-sale
   securities
   portfolio                                                        8
--------------------------------------------            --------------
    Total GAAP
     impact of
     MSR risk
     management
     trading
     securities                                                 $(157)
============================================            ==============

                                                     Year Ended
                                               -----------------------

                                                        --------------
                                                          Pro Forma
                                                           Results
                                                           Assuming
                                                         Retrospective
                                                         Application
                                                         of SFAS No.
                                                              156
----------------------------------------------------------------------
                                                Dec. 31,      Dec. 31,
                                                   2006          2005
----------------------------------------------------------------------
MSR Risk
 Management(1):
  Change in MSR
   fair value
due to valuation
 inputs or
 assumptions(2)                                    $299        $1,538
Gain (loss) on
 MSR risk
 management
 instruments:
  Revaluation
   loss from
   derivatives                                     (636)         (814)
  Revaluation
   loss from
   certain
   trading
   securities(2)                                    (55)         (233)
  Loss from
   certain
   available-
   for-sale
   securities                                        (1)          (18)
----------------------------------------------------------------------
    Total loss
     on MSR risk
     management
     instruments                                   (692)       (1,065)
----------------------------------------------------------------------
      Total MSR
           risk
      management                                  $(393)         $473
======================================================================
Reconciliation
 from pro forma
 to GAAP
 results(2):
  Revaluation
   loss from
   certain
   trading
   securities                                                   $(233)
  Add back:
   Decrease in
   value of
   trading
   securities
   assumed
   transferred
   from the
   available-
   for-sale
   securities
   portfolio                                                       10
--------------------------------------------            --------------
    Total GAAP
     impact of
     MSR risk
     management
     trading
     securities                                                 $(223)
============================================            ==============


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

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


                             Quarter Ended
----------------------------------------------------------------------
                  Dec. 31, Sept. 30,  June 30,  Mar. 31,      Dec. 31,
                     2006      2006      2006      2006          2005
----------------------------------------------------------------------
Rollforward of
 Mortgage
 Servicing
 Rights(1)(2)
 Balance,
  beginning of
  period           $6,288    $9,162    $8,736    $8,041        $7,042
  Home loans:
   Additions          357       533       607       633           703
   Change in
    MSR fair
    value due
    to payments
    on loans
    and other        (375)     (410)     (460)     (409)            -
   Change in
    MSR fair
    value due
    to
    valuation
    inputs or
    assumptions       (80)     (469)      435       413             -
   Adjustment
    to MSR fair
    value for
    MSR sale            -         -      (157)        -             -
   Fair value
    basis
    adjustment(3)       -         -         -        57             -
   Amortization         -         -         -         -          (482)
   Impairment
    reversal            -         -         -         -           353
   Statement
    No. 133 MSR
    accounting
    valuation
    adjustments         -         -         -         -           419
   Sale of MSR          1    (2,527)        -         -             -
  Net change in
   commercial
   real estate
   MSR                  2        (1)        1         1             6
----------------------------------------------------------------------
Balance, end of
 period            $6,193    $6,288    $9,162    $8,736        $8,041
======================================================================
Rollforward of
 Valuation
 Allowance for
 MSR Impairment
Balance,
 beginning of
 period                $-        $-        $-      $914        $1,312
  Impairment
   reversal             -         -         -         -          (353)
  Other-than-
   temporary
   impairment           -         -         -         -           (43)
   Other                -         -         -      (914)(3)        (2)
----------------------------------------------------------------------
Balance, end of
 period                $-        $-        $-        $-          $914
======================================================================
Rollforward of
 Mortgage Loans
 Serviced for
 Others
Balance,
 beginning of
 period          $439,208  $570,352  $569,501  $563,208      $547,578
  Home loans:
   Additions       25,833    29,899    30,949    35,026        51,642
   Sale of
    servicing           -  (141,842)       (9)        -             -
   Loan
    payments
    and other     (20,744)  (19,288)  (30,368)  (29,063)      (37,245)
  Net change in
   commercial
   real estate
   loans              399        87       279       330         1,233
----------------------------------------------------------------------
Balance, end of
 period          $444,696  $439,208  $570,352  $569,501      $563,208
======================================================================

                  Dec. 31, Sept. 30,  June 30,  Mar. 31,      Dec. 31,
                     2006      2006      2006      2006          2005
----------------------------------------------------------------------
Total Servicing
 Portfolio
   Mortgage
    loans
    serviced
    for others   $444,696  $439,208  $570,352  $569,501      $563,208
   Consumer
    loans
    serviced
    for others     12,415    13,112    12,644    12,194        11,421
   Servicing on
    retained
    MBS without
    MSR             1,140     1,199     1,262     1,334         1,404
   Servicing on
    owned loans   251,766   245,925   247,489   245,469       242,114
   Subservicing
    portfolio      84,797   137,089       552       588           926
----------------------------------------------------------------------
 Total
  servicing
  portfolio      $794,814  $836,533  $832,299  $829,086      $819,073
======================================================================

                                                   December 31, 2006
----------------------------------------------------------------------
                                                             Weighted
                                                Unpaid        Average
                                               Principal     Servicing
                                                Balance         Fee
----------------------------------------------------------------------
Mortgage Loans                                               (in basis
 Serviced for                                                 points,
 Others by Loan                                               annual-
 Type                                                          ized)
   Agency                                       240,429            31
   Private                                      169,315            52
   Specialty
    home loans                                   34,952            50
----------------------------------------------------------------------
 Total mortgage
  loans
  serviced for
  others(4)                                    $444,696            41
======================================================================


(1) Net of valuation allowance for the quarter ended December 31,
     2005.

(2) MSR as a percentage of mortgage loans serviced for others was
     1.39%, 1.43%, 1.61%, 1.53%, and 1.43% at December 31, 2006,
     September 30, 2006, June 30, 2006, March 31, 2006, and December
     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 was 6.28% at December 31, 2006.
WM-18
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                        Quarter Ended
----------------------------------------------------------------------
                        Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
                           2006      2006     2006     2006     2005
----------------------------------------------------------------------
Allowance for Loan and
 Lease Losses
  Balance, beginning of
   quarter               $1,550    $1,663   $1,642   $1,695   $1,264
  Allowance transferred
   to loans held for
   sale                    (158)     (125)     (87)     (30)    (241)
  Allowance acquired
   through business
   combinations              30         -        -        -      592
  Provision for loan
   and lease losses         344       166      224       82      217
----------------------------------------------------------------------
                          1,766     1,704    1,779    1,747    1,832
  Loans charged off:
    Loans secured by
     real estate:
      Home loans            (16)      (12)     (11)     (12)      (6)
      Specialty
       mortgage
       finance(1)           (52)      (47)     (21)     (20)     (15)
      Home equity loans
       and lines of
       credit               (13)       (8)      (6)      (4)      (6)
      Home
       construction(2)       (4)       (3)       -        -        -
      Other real estate      (1)       (2)       -       (3)      (1)
----------------------------------------------------------------------
        Total loans
         secured by
         real estate        (86)      (72)     (38)     (39)     (28)
    Consumer:
      Credit card           (68)      (98)     (94)     (63)    (138)
      Other                  (3)       (3)      (6)      (7)      (8)
    Commercial               (9)       (6)      (4)      (8)     (16)
----------------------------------------------------------------------
        Total loans
         charged off       (166)     (179)    (142)    (117)    (190)
   Recoveries of loans
    previously charged
    off:
     Loans secured by
      real estate:
       Home loans             -         -        1        -        -
       Specialty
        mortgage
        finance(1)            4         -        1        1        1
       Home equity
        loans and lines
        of credit             2         2        3        1        7
       Multi-family           -         -        1        -        -
       Other real
        estate                -         -        1        1        -
----------------------------------------------------------------------
        Total loans
         secured by
         real estate          6         2        7        3        8
     Consumer:
        Credit card          18        16       15        4       40
        Other                 3         4        3        4        3
     Commercial               3         3        1        1        2
----------------------------------------------------------------------
        Total
         recoveries of
         loans
         previously
         charged off         30        25       26       12       53
----------------------------------------------------------------------
     Net charge-offs       (136)     (154)    (116)    (105)    (137)
----------------------------------------------------------------------
   Balance, end of
    quarter              $1,630    $1,550   $1,663   $1,642   $1,695
======================================================================

   Net charge-offs
    (annualized) as a
    percentage of
    average loans held
    in portfolio           0.23 %    0.26 %   0.19 %   0.18 %   0.24 %
   Allowance as a
    percentage of total
    loans held in
    portfolio              0.72      0.64     0.68     0.68     0.74


(1) Represents home loans purchased from dedicated subprime lenders
     and all loans originated by Long Beach Mortgage 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-19
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                        Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
                           2006      2006     2006     2006     2005
---------------------------------------------------------------------
Nonperforming Assets and
 Restructured Loans
  Nonaccrual
   loans(1)(2):
    Loans secured by
     real estate:
      Home loans           $640      $568     $512     $490     $565
      Specialty mortgage
       finance(3)         1,273     1,120    1,092    1,013      873
      Home equity loans
       and lines of
       credit               241       163      103       91       87
      Home
       construction(4)       27        35       31       15       10
      Multi-family           46        31       19       21       25
      Other real estate      51        53       56       69       70
---------------------------------------------------------------------
       Total nonaccrual
        loans secured by
        real estate       2,278     1,970    1,813    1,699    1,630
    Consumer                  1         1        1        6        8
    Commercial               16        16       16       26       48
---------------------------------------------------------------------
        Total nonaccrual
         loans held in
         portfolio        2,295     1,987    1,830    1,731    1,686
  Foreclosed assets(5)      480       405      330      309      276
---------------------------------------------------------------------
        Total
         nonperforming
         assets          $2,775    $2,392   $2,160   $2,040   $1,962
        As a percentage
         of total assets   0.80 %    0.69 %   0.62 %   0.59 %   0.57 %
  Restructured loans        $18       $19      $20      $21      $22
---------------------------------------------------------------------
          Total
           nonperforming
           assets and
           restructured
           loans         $2,793    $2,411   $2,180   $2,061   $1,984
=====================================================================


(1) Nonaccrual loans held for sale, which are excluded from the
     nonaccrual balances presented above, were $185 million, $129
     million, $122 million, $201 million, and $245 million at December
     31, 2006, September 30, 2006, June 30, 2006, March 31, 2006, and
     December 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) Credit card loans are exempt under regulatory rules from being
     classified as nonaccrual because they are charged off when they
     are determined to be uncollectible, or by the end of the month in
     which the account becomes 180 days past due.

(3) Represents home loans purchased from dedicated subprime lenders
     and all loans originated by Long Beach Mortgage and held in its
     investment portfolio.

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

(5) Foreclosed real estate securing Government National Mortgage
     Association ("GNMA") loans of $99 million, $129 million, $142
     million, $167 million, and $79 million at December 31, 2006,
     September 30, 2006, June 30, 2006, March 31, 2006, and December
     31, 2005 have been excluded. These assets are fully collectible
     as the corresponding GNMA loans are insured by the Federal
     Housing Administration ("FHA") or guaranteed by the Department of
     Veteran's Affairs ("VA").

    CONTACT: Washington Mutual
             Media Contact
             Alan Gulick, 206-500-2760
             alan.gulick@wamu.net
             or
             Washington Mutual
             Investor Relations Contact
             Alan Magleby
             206-500-4148 (Seattle)
             212-326-6019 (New York)
             alan.magleby@wamu.net

    SOURCE: Washington Mutual, Inc.