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WaMu Reports First Quarter Earnings Per Share of $0.86 and Increases Cash Dividend to 55 Cents

SEATTLE--(BUSINESS WIRE)--April 17, 2007--Washington Mutual, Inc. (NYSE:WM) reported first quarter 2007 net income of $784 million, or $0.86 per diluted share, compared with net income of $985 million, or $0.98 per diluted share, in the first quarter of 2006, a period that included an $85 million after tax partial settlement related to Home Savings goodwill litigation.

Based on these earnings and the company's strong financial position, the Board of Directors increased the cash dividend on the company's common stock for the 47th consecutive quarter to 55 cents per share.

"Our Retail Banking, Card Services, and Commercial groups continued to post strong results in the first quarter as we successfully attracted a growing number of new customers to our expanding national banking franchise," said Kerry Killinger, the company's chairman and CEO. "Overall, we delivered solid results in the first quarter despite the challenging interest rate environment and slowing housing market."

"Our Home Loans business was challenged during the first quarter by difficult market conditions," he added. "Over the past 12 months, we have taken a number of prudent actions to reduce our exposure to the subprime mortgage industry. These actions, along with a diversified business mix, limited our exposure to the mortgage market's downturn and position us well to expand and grow as market conditions improve."

FIRST QUARTER FINANCIAL SUMMARY AND HIGHLIGHTS
----------------------------------------------------------------------

Financial Summary
                                             Three Months Ended
                                       -------------------------------
(in millions, except per share data)   Mar. 31,   Dec. 31,   Mar. 31,
                                          2007       2006       2006
                                       ---------- ---------- ---------
Income Statement
Net interest income                    $   2,081   $  1,998  $  2,117
Provision for loan and lease losses          234        344        82
Noninterest income                         1,541      1,592     1,638
Noninterest expense                        2,105      2,257     2,138
Income from continuing operations            784        640       976
Income from discontinued operations,
 net of taxes                                  -        418         9
Net income                                   784      1,058       985

Diluted earnings per common share      $    0.86   $   1.10  $   0.98

Balance Sheet
Total assets, end of period            $ 319,985   $346,288  $348,401
Average total assets                     331,905    353,056   343,660
Average interest-earning assets          295,700    314,784   307,777
Average total deposits                   210,764    214,801   191,034

Performance Ratios
Return on average common equity           12.99 %    16.03 %   14.69 %
Net interest margin                         2.79       2.58      2.75
Efficiency ratio                           58.13      62.87     56.95
Nonperforming assets/total assets           1.02       0.80      0.59
Tangible equity/total tangible assets       5.78       6.04      5.75
----------------------------------------------------------------------
    --  Net interest margin expands 21 basis points to 2.79 percent.
        The net interest margin during the first quarter increased to
        2.79 percent from 2.58 percent in the fourth quarter. The
        increase reflected the balance sheet repositioning initiated
        during the previous quarter, upward repricing of the company's
        loan portfolio, and strong deposit pricing discipline.

The increase in the net interest margin contributed to a 4 percent increase in net interest income in the first quarter from the prior quarter despite a 6 percent decrease in average interest-earning assets. The modest decline in net interest income from a year ago reflected a decline in average interest-earning assets.

    --  Customer and account growth continues to be robust. During the
        first quarter, the company continued to be successful in
        attracting customers, adding 195,000 net new retail households
        to its customer base and adding 328,000 net new checking
        accounts. Checking account growth during the first quarter was
        up 82 percent from the prior quarter and was down only
        slightly from a year ago, which included the company's March
        launch of its WaMu Free Checking(TM) product. The company also
        continued its strong credit card growth, opening 782,000 new
        accounts.

    --  Depositor and other retail banking fees up 15 percent.
        Depositor and other retail banking fees of $665 million during
        the first quarter were up 15 percent from a year ago, which
        reflected the company's continued success in growing checking
        accounts. They were down from the fourth quarter due to normal
        seasonality.

    --  Home Loans loss due to subprime deterioration. Weakening
        subprime mortgage credit performance and widening market
        credit spreads drove the first quarter $113 million loss for
        the company's Home Loans group. First quarter gain on sale
        included net losses of $164 million on sales of subprime
        mortgage loans and adjustments to reflect declines in market
        values of loans held for sale. Based on actual and estimates
        of future credit performance, the company decreased the value
        of its subprime mortgage residual portfolio by $88 million to
        a balance of $105 million at the end of the first quarter.

    --  Provision reflects housing downturn. The provision for loan
        losses of $234 million was down from $344 million on a linked
        quarter basis but up from $82 million in the first quarter of
        2006. The decline from the prior quarter was the result of a
        lower provision for credit card loans. The card provision
        declined from $275 million in the fourth quarter to $106
        million in the first quarter, primarily reflecting a decline
        in the balance of credit card receivables in the company's
        loan portfolio, as well as an improvement in the credit
        quality.

Excluding the decline in the provision for Card Services, the provision increased due to the downturn in the housing sector and related increase in the level of net charge-offs. This weakening of credit contributed to an increase in the level of non-card provisioning which significantly exceeded net charge-offs in the quarter. Partially offsetting this increase was a refinement of the company's provisioning methodology for home equity lending.

The much smaller provision in the first quarter a year ago reflected a stronger housing market and more benign credit environment.


    --  Lower operating expense reflects successful efficiency
        efforts. Noninterest expense of $2.11 billion during the first
        quarter was down 7 percent from the prior quarter or
        essentially flat after excluding $155 million of costs
        associated with efficiency initiatives recorded in the fourth
        quarter. Compared with the same period a year ago, noninterest
        expense was down 2 percent as efficiency gains helped fund the
        expansion of the franchise.

FIRST QUARTER OPERATING SEGMENT RESULTS
----------------------------------------------------------------------
Retail Banking Group

Selected Segment Information
                                              Three Months Ended
                                         -----------------------------
(in millions, except accounts and        Mar. 31,  Dec. 31,  Mar. 31,
 households)                                2007      2006      2006
                                         --------- --------- ---------
Net interest income                      $  1,275  $  1,239  $  1,347
Provision for loan and lease losses            62        47        54
Noninterest income                            751       774       670
Noninterest expense                         1,075     1,102     1,088
Net income from continuing operations         569       545       548

Average loans                            $155,206  $172,029  $173,852
Average retail deposits                   144,030   143,513   139,060
Net change in number of retail checking
 accounts                                 327,776   179,784   340,157
Net change in retail households           195,000   123,000   210,000
----------------------------------------------------------------------
    --  Retail Bank delivers strong performance. Net income from
        continuing operations of $569 million was up 4 percent from
        the prior quarter and up 4 percent from a year ago. Excluding
        the contribution from portfolio management, which contains the
        bulk of the company's loans held in portfolio and is
        particularly impacted by the interest rate environment, net
        income from continuing operations for the Retail Bank network
        was up 5 percent from the prior quarter, and was up 21 percent
        compared with last year's first quarter. The substantial
        year-over-year growth reflected both the strong growth in
        retail banking fees and efficiency improvements.

The provision was up from prior periods in response to the downturn in the housing market that has resulted in increased delinquencies and higher charge-offs. This increase in the provision was partially offset by a refinement of the company's provisioning methodology for home equity lending.


    --  Customer and account growth continues to be strong. During the
        first quarter, the company added 328,000 net new checking
        accounts, up 82 percent from the fourth quarter, but down
        slightly from the first quarter a year ago, which included the
        March launch of WaMu's new free checking product. During the
        first quarter, the company also increased its household base,
        with net new growth up 59 percent compared with the prior
        quarter.

    --  Cross-sell ratio improvement driven by card growth. The Retail
        Bank's success in marketing credit cards to its retail banking
        customers contributed to the increase in the cross-sell ratio
        to 6.78 products and services at the end of the first quarter
        from 6.66 at year end and 6.46 at the end of last year's first
        quarter.


----------------------------------------------------------------------
Card Services Group (managed basis)

Selected Segment Information
                                                Three Months Ended
                                            --------------------------
(in millions)                               Mar. 31, Dec. 31, Mar. 31,
                                              2007     2006     2006
                                            -------- -------- --------
Net interest income                         $   653  $   664  $   619
Provision for loan and lease losses             388      555      330
Noninterest income                              474      451      344
Noninterest expense                             325      316      298
Net income                                      256      149      207

Average managed receivables                 $23,604  $22,875  $20,086
Period-end managed receivables               23,597   23,501   20,099
30+ day managed delinquency rate              5.15 %   5.25 %   5.18 %
Managed net credit losses                      6.31     5.84     5.79
----------------------------------------------------------------------
    --  Card Services posts another strong quarter. Card Services
        reported net income of $256 million, up 72 percent from the
        prior quarter and up 24 percent from a year ago. The decrease
        in the provision was the result of the prior quarter's higher
        level of provisioning due to that quarter's substantial growth
        in period-end receivables.

    --  Retail channel continues to show strong customer growth.
        During the quarter, Card Services opened 782,000 new credit
        card accounts, more than a third of which came through the
        company's retail channel. During the first quarter, the
        company modestly grew its managed card receivables to $23.60
        billion at quarter end.

    --  Card Services' credit quality continues to be good. At 5.15
        percent of period-end managed receivables, the 30+ day managed
        delinquency rate was down from prior quarters. The first
        quarter is typically a high payment period which has a
        beneficial impact on the level of delinquencies. Net credit
        losses of 6.31 percent during the quarter were up from prior
        periods, reflecting in part an increase in contractual losses
        due to the 2006 change in minimum payment policy.

----------------------------------------------------------------------
Commercial Group

Selected Segment Information
                                                Three Months Ended
                                            --------------------------
(in millions)                               Mar. 31, Dec. 31, Mar. 31,
                                              2007     2006     2006
                                            -------- -------- --------
Net interest income                         $   200  $   189  $   163
Reversal of reserve for loan and lease
 losses                                         (10)     (69)       -
Noninterest income                               14       40       12
Noninterest expense                              74       72       67
Net income                                       94      140       67

Loan volume                                 $ 3,671  $ 4,019  $ 2,769
Average loans                                38,641   37,552   31,011
----------------------------------------------------------------------
    --  Commercial Group net income up 40 percent year over year. The
        Commercial Group's net income of $94 million for the first
        quarter was up 40 percent from the same period a year ago. The
        increase in net interest income was primarily due to an
        increase in average loans as a result of the fourth quarter
        acquisition of Commercial Capital Bancorp and continued growth
        in multi-family and nonresidential loans.

Although net income was down from the fourth quarter, the prior quarter results included a $67 million reduction in the allowance for loan and lease losses associated with the characteristics of the multi-family loan portfolio. The lower amount of noninterest income for the first quarter reflected a decrease of $24 million in the value of derivatives that economically hedge the pipeline and warehouse of loans held for sale.


    --  Loan volume remains strong. Loan volume of $3.67 billion was
        up 33 percent from a year ago, benefited by the addition of
        CCBI. The decline from the fourth quarter was due to normal
        seasonality in multi-family lending.


----------------------------------------------------------------------
Home Loans Group

Selected Segment Information
                                                Three Months Ended
                                            --------------------------
(in millions)                               Mar. 31, Dec. 31, Mar. 31,
                                              2007     2006     2006
                                            -------- -------- --------
Net interest income                         $   245  $   273  $   338
Provision for loan and lease losses              49       47       21
Noninterest income                              162      126      401
Noninterest expense                             521      534      621
Net income                                     (113)    (122)      52

Loan volume                                 $29,645  $34,897  $44,998
Average loans                                53,254   51,048   49,913
----------------------------------------------------------------------
    --  Weakness in the subprime mortgage market overshadows
        improvement in prime business. During the quarter, production
        volume for prime loans was solid and gain on sale increased
        from the prior quarter. However, due to the difficult subprime
        mortgage market, the Home Loans group recorded a $113 million
        loss for the quarter. Noninterest income included an $88
        million decrease in value of the company's subprime residuals
        and net losses of $164 million on sales of subprime loans and
        adjustments to reflect declines in market values of loans held
        for sale. Impacting first quarter results when compared with a
        year ago was a reduction in net interest income as the
        continuation of a flat yield curve has decreased lending
        volumes and spread income.

    --  Decrease in home loan volume reflects strategic actions. The
        decline in home loan volume from the fourth quarter was the
        result of the proactive steps the company has taken to reduce
        its subprime exposure through this point in the cycle.
        Subprime mortgage production for the first quarter was down 51
        percent from the same quarter in 2006. The decline in home
        loan volume, year over year, also reflected the company's
        decision to exit its traditional correspondent business.

    --  Efficiency gains drive down expenses. The 16 percent drop in
        noninterest expense from a year ago reflected the company's
        success in reducing its cost structure. The 2 percent decline
        in noninterest expense compared with the fourth quarter was
        due to the continued success of the company's efficiency
        initiatives, that more than offset increased subprime mortgage
        asset foreclosure and due diligence costs.

    COMPANY UPDATES

    --  On Feb. 7, WaMu announced that the corporation's bylaws had
        been amended to include a majority vote standard for the
        election of directors in uncontested elections.

    --  On Feb. 12, the company announced that Anthony (Tony) F. Vuoto
        had been named president of the company's credit card business
        succeeding Joseph W. Saunders.

    --  On Apr. 17, WaMu's Board of Directors declared a cash dividend
        of 55 cents per share on the company's common stock, up from
        54 cents per share in the previous quarter. Dividends on the
        common stock are payable on May 15, 2007 to shareholders of
        record as of Apr. 30, 2007. In addition to declaring a
        dividend on the company's common stock, the company will pay a
        dividend of $0.3868 per depository share of Series K Preferred
        Stock to be payable on June 15, 2007 to holders of record on
        June 1, 2007.

    ABOUT WAMU

WaMu, through its subsidiaries, is one of the nation's leading consumer and small business banks. At Mar. 31, 2007, WaMu and its subsidiaries had assets of $319.99 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate nearly 2,700 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 Tuesday, Apr. 17, 2007, at 6:30 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 888-391-7808. Participants calling from outside the United States may dial 210-795-2680. 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 9:00 p.m ET on Tuesday, Apr. 17, 2007, through 11:59 p.m. ET on Friday, Apr. 27, 2007. The recorded message will be available at 866-469-5760. Callers from outside the United States may dial 203-369-1459.

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 2006 Annual Report on Form 10-K which include:

    --  Volatile interest rates and their impact on the mortgage
        banking business;

    --  Credit risk;

    --  Operational risk;

    --  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, economic and market conditions; and

    --  Reputational risk.

There are other factors not described in our 2006 Form 10-K which are beyond the company's ability to anticipate or control that could cause results to differ.

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

                                      Quarter Ended
----------------------------------------------------------------------
                   Mar. 31,  Dec. 31,  Sept. 30, June 30,   Mar. 31,
                     2007      2006      2006      2006      2006
----------------------------------------------------------------------
PROFITABILITY
  Net income           $784    $1,058      $748      $767       $985
  Net interest
   income             2,081     1,998     1,947     2,060      2,117
  Noninterest
   income             1,541     1,592     1,570     1,578      1,638
  Noninterest
   expense            2,105     2,257     2,184     2,229      2,138
  Diluted earnings
   per common
   share:
    Income from
     continuing
     operations       $0.86     $0.66     $0.76     $0.78      $0.97
    Income from
     discontinued
     operations           -      0.44      0.01      0.01       0.01
      Net income       0.86      1.10      0.77      0.79       0.98
  Diluted weighted
   average number
   of common
   shares
   outstanding
  (in thousands)    899,706   955,817   967,376   975,504  1,003,460
  Net interest
   margin              2.79 %    2.58 %    2.53 %    2.65 %     2.75 %
  Dividends
   declared per
   common share        0.54      0.53      0.52      0.51       0.50
  Book value per
   common share
   (period end)(1)    27.30     28.21     27.65     27.31      27.10
  Return on
   average assets      0.95 %    1.20 %    0.86 %    0.88 %     1.15 %
  Return on
   average common
   equity             12.99     16.03     11.47     11.82      14.69
  Efficiency
   ratio(2)(3)        58.13     62.87     62.09     61.27      56.95

ASSET QUALITY
  Nonperforming
   assets(4) to
   total assets        1.02 %    0.80 %    0.69 %    0.62 %     0.59 %
  Allowance as a
   percentage of
   total loans
   held in
   portfolio           0.71      0.72      0.64      0.68       0.68

CREDIT PERFORMANCE
  Provision for
   loan and lease
   losses              $234      $344      $166      $224        $82
  Net charge-offs       183       136       154       116        105

CAPITAL ADEQUACY
  Capital Ratios
   for WMI:
    Tangible
     equity to
     total
     tangible
     assets(5)         5.78 %    6.04 %    5.86 %    5.84 %     5.75 %
    Total risk-
     based capital
     to total
     risk-weighted
     assets(6)        11.14     11.77     11.10     11.26      10.77
    Tier 1 capital
     to average
     total
     assets(6)         5.87      6.35      6.28      6.24       6.13
  Capital Ratios
   for WMB (well-
   capitalized
   minimum)(7):
    Tier 1 capital
     to adjusted
     total assets
     (5.00%)           6.71      6.79      6.47      6.33       6.76
    Adjusted tier
     1 capital to
     total risk-
     weighted
     assets
     (6.00%)           7.84      8.28      8.12      8.13       8.92
    Total risk-
     based capital
     to total
     risk-weighted
     assets
     (10.00%)         11.89     12.16     11.30     11.39      11.82

SUPPLEMENTAL DATA
  Average balance
   sheet:
    Total loans
     held in
     portfolio     $222,617  $239,265  $242,165  $242,334   $232,505
    Total
     interest-
     earning
     assets(2)      295,700   314,784   312,827   313,239    307,777
    Total assets    331,905   353,056   349,542   348,664    343,660
    Total deposits  210,764   214,801   208,912   200,252    191,034
    Total
     stockholders'
     equity          24,407    26,700    26,147    25,958     26,825
  Period-end
   balance sheet:
    Total loans
     held in
     portfolio,
     net of
     allowance for
     loan and
     lease losses   215,481   223,330   240,215   241,840    238,362
    Total assets    319,985   346,288   348,877   350,884    348,401
    Total deposits  210,209   213,956   210,882   204,558    200,002
    Total
     stockholders'
     equity          24,578    26,969    26,458    26,131     25,819
    Common shares
     outstanding
     at the end of
     period (in
     thousands)(8)  888,111   944,479   945,098   962,880    958,819
    Employees at
     end of period   49,693    49,824    51,056    56,247     60,381

(1) Excludes six million shares held in escrow.

(2) Based on continuing operations.

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

(4) Excludes nonaccrual loans held for sale.

(5) Excludes unrealized net gain/loss on available-for-sale securities
     and derivatives, goodwill and intangible assets (except MSR) and
     the impact from the adoption and application of FASB Statement
     No. 158, Employers' Accounting for Defined Benefit Pension and
     Other Postretirement Plans, as of December 31, 2006. Minority
     interests of $2.45 billion for March 31, 2007 and 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.

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

(7) Capital ratios for Washington Mutual Bank ("WMB") at March 31,
     2007 are preliminary.

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

                                        Quarter Ended
----------------------------------------------------------------------
                       Mar. 31, Dec. 31, Sept. 30, June 30,  Mar. 31,
                        2007     2006      2006     2006      2006
----------------------------------------------------------------------
Interest Income
  Loans held for sale     $562     $515      $435     $395       $462
  Loans held in
   portfolio             3,900    4,053     4,012    3,887      3,580
  Available-for-sale
   securities              332      392       379      368        322
  Trading assets           113      102       140      165        198
  Other interest and
   dividend income         101      148       139      120         95
                       -----------------------------------------------
    Total interest
     income              5,008    5,210     5,105    4,935      4,657
Interest Expense
  Deposits               1,772    1,843     1,739    1,461      1,221
  Borrowings             1,155    1,369     1,419    1,414      1,319
                       -----------------------------------------------
    Total interest
     expense             2,927    3,212     3,158    2,875      2,540
----------------------------------------------------------------------
      Net interest
       income            2,081    1,998     1,947    2,060      2,117
  Provision for loan
   and lease losses        234      344       166      224         82
----------------------------------------------------------------------
      Net interest
       income after
       provision for
       loan and lease
       losses            1,847    1,654     1,781    1,836      2,035
Noninterest Income
  Revenue from sales
   and servicing of
   home mortgage loans     125      164       118      222        263
  Revenue from sales
   and servicing of
   consumer loans          443      372       355      424        376
  Depositor and other
   retail banking fees     665      692       655      641        578
  Credit card fees         172      182       165      152        138
  Securities fees and
   commissions              60       54        52       56         52
  Insurance income          29       30        31       33         33
  Trading assets
   income (loss)          (108)     (81)       68     (129)       (13)
  Gain (loss) from
   sales of other
   available-for-sale
   securities               35       (1)       (1)       -         (7)
  Other income             120      180       127      179        218
----------------------------------------------------------------------
    Total noninterest
     income              1,541    1,592     1,570    1,578      1,638
Noninterest Expense
  Compensation and
   benefits              1,002      945       939    1,021      1,032
  Occupancy and
   equipment               376      476       408      435        391
  Telecommunications
   and outsourced
   information
   services                129      133       142      145        134
  Depositor and other
   retail banking
   losses                   61       64        57       51         56
  Advertising and
   promotion                98      107       124      117         95
  Professional fees         38       89        57       45         36
  Other expense            401      443       457      415        394
----------------------------------------------------------------------
    Total noninterest
     expense             2,105    2,257     2,184    2,229      2,138
  Minority interest
   expense                  43       34        34       37          -
----------------------------------------------------------------------
        Income from
         continuing
         operations
         before income
         taxes           1,240      955     1,133    1,148      1,535
        Income taxes       456      315       394      389        559
----------------------------------------------------------------------
        Income from
         continuing
         operations        784      640       739      759        976
----------------------------------------------------------------------
Discontinued
 Operations(1)
        Income from
         discontinued
         operations
         before income
         taxes               -        2        14       12         15
        Gain on
         disposition
         of
         discontinued
         operations          -      667         -        -          -
        Income taxes         -      251         5        4          6
----------------------------------------------------------------------
        Income from
         discontinued
         operations          -      418         9        8          9
----------------------------------------------------------------------
Net Income                $784   $1,058      $748     $767       $985
======================================================================
Net Income Available
 to Common
 Stockholders             $777   $1,050      $748     $767       $985
======================================================================

Basic Earnings Per
 Common Share:
  Income from
   continuing
   operations            $0.89    $0.68     $0.78    $0.80      $1.00
  Income from
   discontinued
   operations                -     0.45      0.01     0.01       0.01
------------------------------- -------- --------- -------- ----------
    Net Income            0.89     1.13      0.79     0.81       1.01

Diluted Earnings Per
 Common Share:
  Income from
   continuing
   operations            $0.86    $0.66     $0.76    $0.78      $0.97
  Income from
   discontinued
   operations                -     0.44      0.01     0.01       0.01
------------------------------- -------- --------- -------- ----------
    Net Income            0.86     1.10      0.77     0.79       0.98

Dividends declared per
 common share             0.54     0.53      0.52     0.51       0.50
Basic weighted average
 number of common
 shares outstanding
 (in thousands)        874,816  931,484   941,898  947,023    973,614
Diluted weighted
 average number of
 common shares
 outstanding (in
 thousands)            899,706  955,817   967,376  975,504  1,003,460

(1) 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 Financial Condition
                        (dollars in millions)
                             (unaudited)

                     Mar. 31,  Dec. 31,  Sept. 30, June 30,  Mar. 31,
                       2007      2006      2006      2006      2006
----------------------------------------------------------------------
Assets
  Cash and cash
   equivalents         $4,047    $6,948    $6,649    $6,675    $5,868
  Federal funds sold
   and securities
   purchased under
   agreements to
   resell               8,279     3,743     5,102     4,112     3,995
  Trading assets        5,290     4,434     5,391     7,445     9,958
  Available-for-sale
   securities, total
   amortized cost of
   $22,921, $25,073,
   $29,136, $28,504,
   and $27,424:
    Mortgage-backed
     securities        15,939    18,063    22,353    21,438    21,388
    Investment
     securities         6,900     6,915     6,664     6,358     5,586
----------------------------------------------------------------------
      Total
       available-
       for-sale
       securities      22,839    24,978    29,017    27,796    26,974
  Loans held for
   sale                26,874    44,970    23,720    23,342    25,020
  Loans held in
   portfolio          217,021   224,960   241,765   243,503   240,004
  Allowance for loan
   and lease losses    (1,540)   (1,630)   (1,550)   (1,663)   (1,642)
----------------------------------------------------------------------
    Total loans held
     in portfolio,
     net of
     allowance for
     loan and lease
     losses           215,481   223,330   240,215   241,840   238,362
  Investment in
   Federal Home Loan
   Banks                2,230     2,705     3,013     3,500     4,200
  Mortgage servicing
   rights               6,507     6,193     6,288     9,162     8,736
  Goodwill              9,052     9,050     8,368     8,339     8,298
  Other assets         19,386    19,937    21,114    18,673    16,990
----------------------------------------------------------------------
      Total assets   $319,985  $346,288  $348,877  $350,884  $348,401
======================================================================
Liabilities
  Deposits:
    Noninterest-
     bearing
     deposits         $34,367   $33,386   $34,667   $35,457   $36,531
    Interest-bearing
     deposits         175,842   180,570   176,215   169,101   163,471
----------------------------------------------------------------------
      Total deposits  210,209   213,956   210,882   204,558   200,002
  Federal funds
   purchased and
   commercial paper       563     4,778     5,282     6,138     6,841
  Securities sold
   under agreements
   to repurchase        8,323    11,953    13,665    19,866    15,471
  Advances from
   Federal Home Loan
   Banks               24,735    44,297    47,247    55,311    65,283
  Other borrowings     39,430    32,852    33,883    27,995    24,872
  Other liabilities     9,694     9,035     9,501     8,926     8,140
  Minority interests    2,453     2,448     1,959     1,959     1,973
----------------------------------------------------------------------
     Total
      liabilities     295,407   319,319   322,419   324,753   322,582
Stockholders' equity
  Preferred stock         492       492       492         -         -
  Capital surplus -
   common stock         3,121     5,825     5,761     6,596     6,414
  Accumulated other
   comprehensive
   loss                  (268)     (287)     (180)     (599)     (448)
  Retained earnings    21,233    20,939    20,385    20,134    19,853
----------------------------------------------------------------------
     Total
      stockholders'
      equity           24,578    26,969    26,458    26,131    25,819
----------------------------------------------------------------------
     Total
      liabilities
      and
      stockholders'
      equity         $319,985  $346,288  $348,877  $350,884  $348,401
======================================================================
WM-4
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                   Quarter Ended
----------------------------------------------------------------------
                 Mar. 31,    Dec. 31,   Sept. 30, June 30, Mar. 31,
                  2007        2006        2006     2006     2006
----------------------------------------------------------------------
Stockholders'
 Equity
 Rollforward
Balance,
 beginning of
 period          $26,969     $26,458     $26,131  $25,819  $27,279
Net income           784       1,058         748      767      985
Cumulative
 effect from the
 adoption of new
 accounting
 pronouncements       (6)(1)    (157)(2)       -        -       35 (3)
Other
 comprehensive
 income (loss),
 net of income
 taxes                19          50         419     (151)    (219)
Cash dividends
 declared on
 common stock       (476)       (496)       (497)    (486)    (499)
Cash dividends
 declared on
 preferred stock      (7)         (8)          -        -        -
Common stock
 repurchased and
 retired(4)       (2,797)          -        (930)       -   (2,108)
Common stock
 issued               92          64          95      182      346
Preferred stock
 issued                -           -         492        -        -
-------------------------------------------------------------------
Balance, end of
 period          $24,578     $26,969     $26,458  $26,131  $25,819
===================================================================

(1) As of January 1, 2007, the Company adopted FASB Interpretation
     No. 48, Accounting for Uncertainty in Income Taxes.

(2) On December 31, 2006, the Company adopted Statement of Financial
     Accounting Standards ("Statement") No. 158, Employers' Accounting
     for Defined Benefit Pension and Other Postretirement Plans.
     Statement No. 158 requires an entity to recognize the overfunded
     or underfunded status of its defined benefit postretirement plans
     as an asset or liability in its statement of financial condition
     and to recognize changes, through comprehensive income, in that
     funded status in the year in which the changes occur. The
     cumulative effects, net of income taxes, resulted in a $274
     million decrease to December 31, 2006 other assets and a $117
     million decrease to December 31, 2006 other liabilities.

(3) As of January 1, 2006, the Company adopted 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.

(4) The Company repurchased 61.4 million, 1.7 million, 18.8 million,
     zero and 47.0 million shares of its common stock in the three
     months ended March 31, 2007, December 31, 2006, September 30,
     2006, June 30, 2006 and March 31, 2006. At March 31, 2007, the
     total remaining common stock repurchase authority was 68.2
     million shares.
WM-5
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Quarter Ended
----------------------------------------------------------------------
                     Mar. 31,  Dec. 31,  Sept. 30, June 30,  Mar. 31,
                       2007      2006      2006      2006      2006
----------------------------------------------------------------------
RETAIL BANKING GROUP
   Condensed income
    statement:
     Net interest
      income           $1,275    $1,239    $1,260    $1,323    $1,347
     Provision for
      loan and lease
      losses               62        47        53        13        54
     Noninterest
      income              751       774       738       732       670
     Inter-segment
      revenue              22        17        17        16        13
     Noninterest
      expense           1,075     1,102     1,079     1,109     1,088
----------------------------------------------------------------------
     Income from
      continuing
      operations
      before income
      taxes               911       881       883       949       888
     Income taxes         342       336       337       363       340
----------------------------------------------------------------------
       Income from
        continuing
        operations        569       545       546       586       548
       Income from
        discontinued
        operations          -        12         9         8         9
----------------------------------------------------------------------
         Net income      $569      $557      $555      $594      $557
======================================================================
   Performance and
    other data:
     Efficiency ratio   52.50%    54.29%    53.55%    53.53%    53.61%
     Average loans   $155,206  $172,029  $180,829  $182,891  $173,852
     Average assets   165,047   182,256   191,288   193,246   184,147
     Average
      deposits:
       Checking
        deposits:
       Noninterest
        bearing        22,331    21,873    21,440    21,418    20,344
       Interest
        bearing        31,739    33,010    34,792    37,518    40,343
----------------------------------------------------------------------
       Total checking
        deposits       54,070    54,883    56,232    58,936    60,687
       Savings and
        money market
        deposits       43,103    41,442    38,317    38,143    37,433
       Time deposits   46,857    47,188    45,405    41,724    40,940
----------------------------------------------------------------------
         Average
          deposits    144,030   143,513   139,954   138,803   139,060
     Loan volume        8,492     7,966     9,006    10,488     7,255
     Employees at end
      of period        27,873    27,664    28,034    31,426    32,863
CARD SERVICES GROUP
  Managed basis(1)
   Condensed income
    statement:
     Net interest
      income             $653      $664      $633      $615      $619
     Provision for
      loan and lease
      losses              388       555       345       417       330
     Noninterest
      income              474       451       343       389       344
     Inter-segment
      expense               4         2         2         1         -
     Noninterest
      expense             325       316       294       293       298
----------------------------------------------------------------------
     Income before
      income taxes        410       242       335       293       335
     Income taxes         154        93       128       112       128
----------------------------------------------------------------------
         Net income      $256      $149      $207      $181      $207
======================================================================
   Performance and
    other data:
    Efficiency ratio    28.96%    28.41%    30.16%    29.19%    30.95%
    Average loans     $23,604   $22,875   $21,706   $20,474   $20,086
    Average assets     26,039    25,472    24,236    23,044    22,764
    Employees at end
     of period          2,646     2,676     2,731     2,597     2,871
  Securitization
   adjustments
   Condensed income
    statement:
     Net interest
      income            $(414)    $(437)    $(411)    $(405)    $(432)
     Provision for
      loan and lease
      losses             (282)     (280)     (220)     (217)     (225)
     Noninterest
      income              132       157       191       188       207
     Performance and
      other data:
     Average loans    (12,507)  (12,811)  (12,169)  (11,565)  (12,107)
     Average assets   (10,961)  (11,035)  (10,330)   (9,753)  (10,219)
  Adjusted basis
    Condensed income
     statement:
    Net interest
     income              $239      $227      $222      $210      $187
    Provision for
     loan and lease
     losses               106       275       125       200       105
    Noninterest
     income               606       608       534       577       551
    Inter-segment
     expense                4         2         2         1         -
    Noninterest
     expense              325       316       294       293       298
----------------------------------------------------------------------
    Income before
     income taxes         410       242       335       293       335
    Income taxes          154        93       128       112       128
----------------------------------------------------------------------
         Net income      $256      $149      $207      $181      $207
======================================================================
   Performance and
    other data:
     Average loans    $11,097   $10,064    $9,537    $8,909    $7,979
     Average assets    15,078    14,437    13,906    13,291    12,545

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

(1) The managed basis presentation treats securitized and sold credit
     card receivables as if they were still on the balance sheet. The
     Company uses this basis in assessing the overall performance of
     this operating segment. The managed basis presentation of the
     Card Services Group is derived by adjusting the GAAP financial
     information to add back securitized loan balances and the related
     interest, fee income and provision for credit losses. Such
     adjustments are eliminated as securitization adjustments when
     reporting GAAP results.
WM-6
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                         Quarter Ended
----------------------------------------------------------------------
(This table is continued
 from "WM-5.")           Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                          2007     2006      2006     2006     2006
----------------------------------------------------------------------
COMMERCIAL GROUP
  Condensed income
   statement:
    Net interest income     $200     $189      $159     $166     $163
    Provision (reversal
     of reserve) for
     loan and lease
     losses                  (10)     (69)       (2)     (10)       -
    Noninterest income        14       40        25       17       12
    Noninterest expense       74       72        60       57       67
----------------------------------------------------------------------
    Income before income
     taxes                   150      226       126      136      108
    Income taxes              56       86        48       52       41
----------------------------------------------------------------------
        Net income           $94     $140       $78      $84      $67
======================================================================
  Performance and other
   data:
    Efficiency ratio       34.52%   31.49%    32.21%   31.28%   38.47%
    Average loans        $38,641  $37,552   $32,414  $31,505  $31,011
    Average assets        41,001   40,216    34,560   33,709   33,334
    Average deposits       3,762    3,609     2,323    2,242    2,259
    Loan volume            3,671    4,019     3,104    2,961    2,769
    Employees at end of
     period                1,351    1,409     1,242    1,252    1,326
HOME LOANS GROUP
  Condensed income
   statement:
    Net interest income     $245     $273      $276     $290     $338
    Provision for loan
     and lease losses         49       47        84       38       21
    Noninterest income       162      126       314      461      401
    Inter-segment
     expense                  18       15        15       15       13
    Noninterest expense      521      534       528      617      621
----------------------------------------------------------------------
    Income (loss) before
     income taxes           (181)    (197)      (37)      81       84
    Income taxes
     (benefit)               (68)     (75)      (14)      31       32
----------------------------------------------------------------------
        Net income
         (loss)            $(113)   $(122)     $(23)     $50      $52
======================================================================
  Performance and other
   data:
    Efficiency ratio      133.90%  138.93%    92.00%   83.80%   85.62%
    Average loans        $53,254  $51,048   $45,407  $43,988  $49,913
    Average assets        71,381   71,512    70,565   70,958   78,163
    Average deposits      16,767   19,788    20,659   20,124   16,532
    Loan volume           29,645   34,897    37,200   41,364   44,998
    Employees at end of
     period               13,025   13,025    13,936   15,560   17,653
CORPORATE
 SUPPORT/TREASURY AND
 OTHER
  Condensed income
   statement:
    Net interest expense    $(15)    $(64)    $(107)    $(60)    $(44)
    Provision (reversal
     of reserve) for
     loan and lease
     losses                   27       44       (94)     (17)     (98)
    Noninterest income
     (expense)                81      142        75      (88)     150
    Noninterest expense      110      233       223      153       64
    Minority interest
     expense                  43       34        34       37        -
----------------------------------------------------------------------
    Income (loss) from
     continuing
     operations before
     income taxes           (114)    (233)     (195)    (321)     140
    Income taxes
     (benefit)               (71)    (103)      (90)    (129)      33
----------------------------------------------------------------------
      Income (loss) from
       continuing
       operations            (43)    (130)     (105)    (192)     107
      Income from
       discontinued
       operations              -      406         -        -        -
----------------------------------------------------------------------
        Net income
         (loss)             $(43)    $276     $(105)   $(192)    $107
======================================================================
  Performance and other
   data:
    Average loans         $1,345   $1,294    $1,245   $1,178   $1,142
    Average assets        40,877   46,208    40,823   39,061   37,042
    Average deposits      46,205   47,891    45,976   39,083   33,183
    Loan volume              107      144        58       82       24
    Employees at end of
     period                4,798    5,050     5,113    5,412    5,668

(This table is continued on "WM-7.")
WM-7
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                         Quarter Ended
----------------------------------------------------------------------
(This table is continued
 from "WM-6.")           Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                          2007     2006      2006     2006     2006
----------------------------------------------------------------------
RECONCILING ADJUSTMENTS
  Condensed income
   statement:
    Net interest
     income(1)              $137     $134      $137     $131     $126
    Noninterest income
     (expense)(2)            (73)     (98)     (116)    (121)    (146)
----------------------------------------------------------------------
    Income (loss) before
     income taxes             64       36        21       10      (20)
    Income taxes
     (benefit)(3)             43      (22)      (15)     (40)     (15)
----------------------------------------------------------------------
        Net income
         (loss)              $21      $58       $36      $50      $(5)
======================================================================
  Performance and other
   data:
    Average loans(4)     $(1,479) $(1,573)  $(1,600) $(1,601) $(1,571)
    Average assets(4)     (1,479)  (1,573)   (1,600)  (1,601)  (1,571)

TOTAL CONSOLIDATED
  Condensed income
   statement:
    Net interest income   $2,081   $1,998    $1,947   $2,060   $2,117
    Provision for loan
     and lease losses        234      344       166      224       82
    Noninterest income     1,541    1,592     1,570    1,578    1,638
    Noninterest expense    2,105    2,257     2,184    2,229    2,138
    Minority interest
     expense                  43       34        34       37        -
----------------------------------------------------------------------
    Income from
     continuing
     operations before
     income taxes          1,240      955     1,133    1,148    1,535
    Income taxes             456      315       394      389      559
----------------------------------------------------------------------
       Income from
        continuing
        operations           784      640       739      759      976
       Income from
        discontinued
        operations             -      418         9        8        9
----------------------------------------------------------------------
         Net income         $784   $1,058      $748     $767     $985
======================================================================
  Performance and other
   data:
    Efficiency ratio       58.13%   62.87%    62.09%   61.27%   56.95%
    Average loans        258,064  270,414   267,832  266,870  262,326
    Average assets       331,905  353,056   349,542  348,664  343,660
    Average deposits     210,764  214,801   208,912  200,252  191,034
    Loan volume           41,915   47,026    49,368   54,895   55,046
    Employees at end of
     period               49,693   49,824    51,056   56,247   60,381

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

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

(3) Represents the tax effect of reconciling adjustments.

(4) Represents the inter-segment offset for inter-segment loan
     premiums that the Retail Banking Group recognized upon transfer
     of portfolio loans from the Home Loans Group.
WM-8
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                                  Quarter Ended
----------------------------------------------------------------------
                                                  Mar. 31, 2007
----------------------------------------------------------------------
                                                             Interest
                                                             Income/
                                             Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets(1):
  Federal funds sold and securities
   purchased under agreements to resell       $3,930   5.39%     $52
  Trading assets                               5,594   8.10      113
  Available-for-sale securities(2):
    Mortgage-backed securities                17,887   5.47      245
    Investment securities                      6,753   5.17       87
  Loans held for sale                         35,447   6.37      562
  Loans held in portfolio:
    Loans secured by real estate:
      Home loans(3)(4)                        97,365   6.45    1,570
      Home equity loans and lines of
       credit(4)                              53,014   7.56      989
      Subprime mortgage channel(5)            20,612   6.67      344
      Home construction(6)                     2,061   6.55       34
      Multi-family                            29,826   6.57      490
      Other real estate                        6,763   7.03      117
                                            ---------        ---------
        Total loans secured by real estate   209,641   6.79    3,544
    Consumer:
       Credit card                            10,904  11.57      311
       Other                                     267  12.96        9
    Commercial                                 1,805   7.95       36
                                            ---------        ---------
        Total loans held in portfolio        222,617   7.04    3,900
  Other                                        3,472   5.77       49
                                            ---------        ---------
        Total interest-earning assets        295,700   6.81    5,008
Noninterest-earning assets:
  Mortgage servicing rights                    6,304
  Goodwill                                     9,054
  Other assets(7)                             20,847
                                            ---------
        Total assets                        $331,905
                                            =========
Liabilities
Interest-bearing liabilities:
  Deposits:
    Interest-bearing checking deposits       $31,821   2.63      206
    Savings and money market deposits         54,862   3.27      443
    Time deposits                             91,631   4.97    1,123
                                            ---------        ---------
        Total interest-bearing deposits      178,314   4.03    1,772
  Federal funds purchased and commercial
   paper                                       3,846   5.48       52
  Securities sold under agreements to
   repurchase                                 12,098   5.48      164
  Advances from Federal Home Loan Banks       36,051   5.38      478
  Other                                       32,808   5.67      461
                                            ---------        ---------
        Total interest-bearing liabilities   263,117   4.51    2,927
                                                             ---------
Noninterest-bearing sources:
  Noninterest-bearing deposits                32,450
  Other liabilities(8)                         9,482
  Minority interests                           2,449
  Stockholders' equity                        24,407
                                            ---------
        Total liabilities and stockholders'
         equity                             $331,905
                                            =========
  Net interest spread and net interest
   income                                              2.30   $2,081
                                                             =========
  Impact of noninterest-bearing sources                0.49
  Net interest margin                                  2.79


                                                 Quarter Ended
----------------------------------------------------------------------
                                                  Dec. 31, 2006
----------------------------------------------------------------------
                                                             Interest
                                                             Income/
                                             Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets(1):
  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(2):
    Mortgage-backed securities                21,661   5.58      302
    Investment securities                      6,952   5.15       90
  Loans held for sale                         31,149   6.59      515
  Loans held in portfolio:
    Loans secured by real estate:
      Home loans(3)(4)                       114,645   6.04    1,729
      Home equity loans and lines of
       credit(4)                              52,850   7.54    1,004
      Subprime mortgage channel(5)            20,982   6.81      357
      Home construction(6)                     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   7.72       35
                                            ---------        ---------
        Total loans held in portfolio        239,265   6.76    4,053
  Other                                        5,305   5.35       72
                                            ---------        ---------
        Total interest-earning assets        314,784   6.60    5,210
Noninterest-earning assets:
  Mortgage servicing rights                    6,230
  Goodwill                                     9,011
  Other assets(7)                             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(8)                        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
----------------------------------------------------------------------
                                                   Mar. 31, 2006
----------------------------------------------------------------------
                                                              Interest
                                                              Income/
                                              Balance   Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average
 Interest Rates
Assets
Interest-earning assets(1):
  Federal funds sold and securities
   purchased under agreements to resell        $3,754   4.62%     $43
  Trading assets                               11,692   6.80      198
  Available-for-sale securities(2):
    Mortgage-backed securities                 20,144   5.29      266
    Investment securities                       4,845   4.62       56
  Loans held for sale                          29,821   6.20      462
  Loans held in portfolio:
    Loans secured by real estate:
      Home loans(3)(4)                        117,720   5.58    1,643
      Home equity loans and lines of
       credit(4)                               51,320   6.96      883
      Subprime mortgage channel(5)             19,967   5.95      296
      Home construction(6)                      2,059   6.34       33
      Multi-family                             25,758   5.92      382
      Other real estate                         5,157   6.84       88
                                             ---------        --------
        Total loans secured by real estate    221,981   6.01    3,325
    Consumer:
       Credit card                              7,808  10.74      206
       Other                                      622  11.03       17
    Commercial                                  2,094   6.19       32
                                             ---------        --------
        Total loans held in portfolio         232,505   6.18    3,580
  Other                                         5,016   4.17       52
                                             ---------        --------
        Total interest-earning assets         307,777   6.07    4,657
Noninterest-earning assets:
  Mortgage servicing rights                     8,260
  Goodwill                                      8,298
  Other assets(7)                              19,325
                                             ---------
        Total assets                         $343,660
                                             =========
Liabilities
Interest-bearing liabilities:
  Deposits:
    Interest-bearing checking deposits        $40,436   2.29      228
    Savings and money market deposits          44,816   2.38      263
    Time deposits                              73,182   4.02      730
                                             ---------        --------
        Total interest-bearing deposits       158,434   3.11    1,221
  Federal funds purchased and commercial
   paper                                        7,463   4.46       83
  Securities sold under agreements to
   repurchase                                  15,280   4.46      170
  Advances from Federal Home Loan Banks        66,995   4.46      746
  Other                                        26,636   4.81      320
                                             ---------        --------
        Total interest-bearing liabilities    274,808   3.72    2,540
                                                              --------
Noninterest-bearing sources:
  Noninterest-bearing deposits                 32,600
  Other liabilities(8)                          8,875
  Minority interests                              552
  Stockholders' equity                         26,825
                                             ---------
        Total liabilities and stockholders'
         equity                              $343,660
                                             =========
  Net interest spread and net interest
   income                                               2.35   $2,117
                                                              ========
  Impact of noninterest-bearing sources                 0.40
  Net interest margin                                   2.75


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

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

(3) Capitalized interest recognized in earnings that resulted from
     negative amortization within the Option ARM portfolio totaled
     $361 million, $333 million and $194 million for the three months
     ended March 31, 2007, December 31, 2006 and March 31, 2006.

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

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

(6) 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.

(7) Includes assets of discontinued operations for the three months
     ended December 31, 2006 and March 31, 2006.

(8) Includes liabilities of discontinued operations for the three
     months ended December 31, 2006 and March 31, 2006.
WM-9
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                  Change
                    from
                 Dec. 31,
                    2006    Mar. 31,    Dec. 31,      Sept. 30,
                 to Mar.
                  31, 2007    2007        2006          2006
----------------------------------------------------------------------
Deposits
 Retail deposits:
  Checking
   deposits:
   Noninterest
    bearing        $1,562     $24,400     $22,838       $22,466
   Interest
    bearing        (1,200)     31,523      32,723        33,761
----------------------------------------------------------------------
     Total
      checking
      deposits        362      55,923      55,561        56,227
   Savings and
    money market
    deposits        2,115      44,058      41,943        39,481
   Time
    deposits(1)       441      47,262      46,821        47,361
----------------------------------------------------------------------
     Total retail
      deposits      2,918     147,243     144,325       143,069
   Commercial
    business and
    other
    deposits        2,566      17,741      15,175        15,831
   Brokered
    deposits:
    Consumer       (3,304)     18,995      22,299        22,430
    Institutional  (5,083)     17,256      22,339        18,236
   Custodial and
    escrow
    deposits(2)      (844)      8,974       9,818        11,316
----------------------------------------------------------------------
     Total
      deposits    $(3,747)   $210,209    $213,956      $210,882
======================================================================

(1) Weighted average remaining maturity of time deposits was 9 months
     at March 31, 2007 and December 31, 2006 and 10 months at
     September 30, 2006, June 30, 2006 and March 31, 2006.

(2) Substantially all custodial and escrow deposits are reported as
     noninterest-bearing checking deposits.

                              Mar. 31,    Dec. 31,     Sept. 30,
                                 2007        2006          2006
----------------------------------------------------------------------
Retail Deposit Accounts (number of
 accounts)
  Noninterest
   bearing
   checking                 9,983,313   9,611,706     9,403,072
  Interest
   bearing
   checking                 1,459,534   1,503,365     1,532,215
  Savings and
   money market             6,708,784   6,525,772     6,379,068
----------------------------------------------------------------------
      Total transaction
       accounts, end of
       period(1)           18,151,631  17,640,843    17,314,355
======================================================================

  Net change in noninterest
   bearing checking
   accounts                   371,607     208,634       339,614
  Net change in checking
   accounts                   327,776     179,784       307,433

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



                              Mar. 31,    Dec. 31,     Sept. 30,
                                 2007        2006          2006
----------------------------------------------------------------------
Retail Banking
 Stores
Stores, beginning
 of period                      2,225       2,225         2,201
  Stores opened during the
   quarter                          6          81 (1)        25
  Stores closed during the
   quarter                         (3)        (81)           (1)
----------------------------------------------------------------------
Stores, end of
 period                         2,228       2,225         2,225
======================================================================

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

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



                                       June 30,     Mar. 31,
                                         2006         2006
--------------------------------------------------------------
Deposits
 Retail deposits:
  Checking
   deposits:
   Noninterest
    bearing                              $22,450      $22,378
   Interest
    bearing                               35,958       39,289
--------------------------------------------------------------
     Total
      checking
      deposits                            58,408       61,667
   Savings and
    money market
    deposits                              37,664       38,197
   Time
    deposits(1)                           43,685       41,534
--------------------------------------------------------------
     Total retail
      deposits                           139,757      141,398
   Commercial
    business and
    other
    deposits                              15,625       14,559
   Brokered
    deposits:
    Consumer                              14,316        8,111
    Institutional                         22,708       23,166
   Custodial and
    escrow
    deposits(2)                           12,152       12,768
--------------------------------------------------------------
     Total
      deposits                          $204,558     $200,002
==============================================================

(1) Weighted average remaining maturity of time deposits was 9
     months at March 31, 2007 and December 31, 2006 and 10
     months at September 30, 2006, June 30, 2006 and March 31,
     2006.

(2) Substantially all custodial and escrow deposits are
     reported as noninterest-bearing checking deposits.

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

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

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



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

(1) Includes 26 retail banking stores acquired through the
     merger with Commercial Capital Bancorp.
WM-10
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                         Quarter Ended
----------------------------------------------------------------------
                         Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                            2007     2006      2006     2006     2006
----------------------------------------------------------------------
Loan Volume
   Home loans:
    Short-term
     adjustable-rate
     loans(1):
      Option ARMs         $7,552   $9,487   $11,601  $12,728   $8,777
      Other ARMs              36       13        42      387    2,943
----------------------------------------------------------------------
         Total short-term
          adjustable-rate
          loans            7,588    9,500    11,643   13,115   11,720
    Medium-term
     adjustable-rate
     loans(2)             13,131   17,323    16,707   16,041   14,865
    Fixed-rate loans       8,521    7,351     8,818   13,695   17,605
----------------------------------------------------------------------
         Total home loan
          volume          29,240   34,174    37,168   42,851   44,190
   Home equity loans and
    lines of credit        8,319    8,098     8,498    8,251    7,306
   Home construction(3)      298      298       269      421      493
   Multi-family            2,663    2,977     2,186    2,230    2,034
   Other real estate       1,080    1,182       983      787      716
----------------------------------------------------------------------
         Total loans
          secured by real
          estate(4)       41,600   46,729    49,104   54,540   54,739
   Consumer(5)                26       23        26       36       49
   Commercial                289      274       238      319      258
----------------------------------------------------------------------
         Total loan
          volume         $41,915  $47,026   $49,368  $54,895  $55,046
======================================================================
Loan Volume by Channel
   Retail                $22,670  $24,426   $22,239  $23,709  $22,580
   Wholesale              13,028   16,002    14,964   14,798   16,722
   Purchased               6,217    6,398    11,560   12,033    7,318
   Correspondent               -      200       605    4,355    8,426
----------------------------------------------------------------------
         Total loan
          volume by
          channel        $41,915  $47,026   $49,368  $54,895  $55,046
======================================================================
Refinancing Activity(6)
   Home loan refinancing $21,874  $25,060   $23,993  $26,667  $26,871
   Home equity loans and
    lines of credit and
    consumer                 537      599       689      161      215
   Home construction
    loans                    276      283       254      379      393
   Multi-family and other
    real estate              257    1,254       763      799      774
----------------------------------------------------------------------
         Total
          refinancing    $22,944  $27,196   $25,699  $28,006  $28,253
======================================================================

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

(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) Includes mortgage loans purchased from recognized subprime lenders
     and mortgage loans originated under the Long Beach Mortgage name
     of $3.48 billion, $6.07 billion, $9.40 billion, $8.20 billion and
     $7.09 billion for the three months ended March 31, 2007, December
     31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006.

(5) Excludes credit card loan volume.

(6) Includes loan refinancing entered into by both new and pre-
     existing loan customers.
WM-11
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                               Change from
                                    Dec. 31, 2006  Mar. 31,  Dec. 31,
                                     to Mar. 31,
                                         2007       2007      2006
----------------------------------------------------------------------
Loans Held in Portfolio
  Loans secured by real estate:
    Home:
       Short-term adjustable-rate
       loans(1):
         Option ARMs(2)                  $(5,427)  $58,130   $63,557
         Other ARMs                       (1,590)   13,501    15,091
----------------------------------------------------------------------
            Total short-term
             adjustable-rate loans        (7,017)   71,631    78,648
       Medium-term adjustable-rate
        loans(3)                             150    29,924    29,774
       Fixed-rate loans                     (276)    9,506     9,782
----------------------------------------------------------------------
            Total home loans              (7,143)  111,061   118,204
    Home equity loans and lines of
     credit                                1,199    56,123    54,924
    Home construction(4)                     (11)    2,071     2,082
    Multi-family                            (646)   29,515    30,161
    Other real estate                        (17)    6,728     6,745
----------------------------------------------------------------------
            Total loans secured by
             real estate(5)               (6,618)  205,498   212,116
  Consumer:
    Credit card                           (1,371)    9,490    10,861
    Other                                    (15)      261       276
  Commercial                                  65     1,772     1,707
----------------------------------------------------------------------
            Total loans held in
             portfolio(6)                 (7,939)  217,021   224,960
   Less: allowance for loan and
    lease losses                              90    (1,540)   (1,630)
----------------------------------------------------------------------
            Total net loans held in
             portfolio                   $(7,849) $215,481  $223,330
======================================================================




                                         Sept. 30,  June 30, Mar. 31,
                                           2006      2006      2006
----------------------------------------------------------------------
Loans Held in Portfolio
  Loans secured by real estate:
    Home:
       Short-term adjustable-rate
       loans(1):
         Option ARMs(2)                   $67,142   $69,224   $71,153
         Other ARMs                        16,375    15,021    14,797
----------------------------------------------------------------------
            Total short-term adjustable-
             rate loans                    83,517    84,245    85,950
       Medium-term adjustable-rate
        loans(3)                           47,740    52,032    49,391
       Fixed-rate loans                     9,928     9,424     8,660
----------------------------------------------------------------------
            Total home loans              141,185   145,701   144,001
    Home equity loans and lines of
     credit                                54,364    52,981    51,872
    Home construction(4)                    2,077     2,082     2,095
    Multi-family                           27,407    26,749    26,151
    Other real estate                       5,869     5,537     5,353
----------------------------------------------------------------------
            Total loans secured by real
             estate(5)                    230,902   233,050   229,472
  Consumer:
    Credit card                             8,807     8,451     7,906
    Other                                     281       287       602
  Commercial                                1,775     1,715     2,024
----------------------------------------------------------------------
            Total loans held in
             portfolio(6)                 241,765   243,503   240,004
   Less: allowance for loan and lease
    losses                                 (1,550)   (1,663)   (1,642)
----------------------------------------------------------------------
            Total net loans held in
             portfolio                   $240,215  $241,840  $238,362
======================================================================


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

(2)The total amount by which the unpaid principal balance of Option
    ARM loans exceeded their original principal amount was $1.12
    billion, $888 million, $681 million, $474 million and $298 million
    at March 31, 2007, December 31, 2006, September 30, 2006, June 30,
    2006 and March 31, 2006.

(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 subprime mortgage channel loans, comprising mortgage loans
    purchased from recognized subprime lenders and mortgage loans
    originated under the Long Beach Mortgage name and held in its
    investment portfolio as follows:
   -------------------------------------------------------------------
   Subprime Mortgage
    Channel               Mar. 31, Dec. 31, Sept. 30,June 30, Mar. 31,
                           2007      2006     2006     2006    2006
   -------------------------------------------------------------------
   Home loans             $17,610  $18,725  $20,083  $20,498  $20,238
   Home equity loans and
    lines of credit         2,749    2,042    1,522      424       12
   -------------------------------------------------------------------
            Total         $20,359  $20,767  $21,605  $20,922  $20,250
   ===================================================================

(6)Includes net unamortized deferred loan origination costs of $1.43
    billion, $1.48 billion, $1.61 billion, $1.62 billion and $1.61
    billion at March 31, 2007, December 31, 2006, September 30, 2006,
    June 30, 2006 and March 31, 2006.
WM-12
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)



                             Change
                               from
                            Dec. 31,          Weighted
                               2006            Average
                            to Mar.  Mar. 31,  Coupon
                             31, 2007  2007     Rate
--------------------------------------------------------
Selected Loans Secured by
 Real Estate and MBS
   Home loans held in
    portfolio:
       Short-term
        adjustable-rate
        loans(1):
           Option ARMs       $(5,427) $58,130     7.74 %
           Other ARMs         (1,590)  13,501     7.25
----------------------------------------------
                Total short-
                 term
                 adjustable-
                 rate loans   (7,017)  71,631     7.65
       Medium-term
        adjustable-rate
        loans(2)                 150   29,924     5.86
       Fixed-rate loans         (276)   9,506     6.68
----------------------------------------------
                Total home
                 loans held
                 in
                 portfolio    (7,143) 111,061     7.08
   Home equity loans and
    lines of credit:
       Short-term (Prime-
        based or treasury-
        based)(1)               (359)  33,854     8.45
       Fixed-rate loans        1,558   22,269     7.62
----------------------------------------------
                Total home
                 equity
                 loans and
                 lines of
                 credit        1,199   56,123     8.12
   Multi-family loans held
    in portfolio:
       Short-term
        adjustable-rate
        loans(1):
           Option ARMs          (791)   8,373     7.29
           Other ARMs            306    7,779     7.01
----------------------------------------------
                Total short-
                 term
                 adjustable-
                 rate loans     (485)  16,152     7.15
       Medium-term
        adjustable-rate
        loans(2)                (212)  11,545     5.78
       Fixed-rate loans           51    1,818     6.39
----------------------------------------------
                Total multi-
                 family
                 loans held
                 in
                 portfolio      (646)  29,515     6.57
----------------------------------------------
                Total
                 selected
                 loans held
                 in
                 portfolio
                 secured by
                 real
                 estate(3)    (6,590) 196,699     7.30
   Loans held for sale(4)    (18,330)  26,394     6.44
   MBS(5):
       Short-term
        adjustable-rate
        MBS(1)                   (93)   5,963     5.71
       Medium-term
        adjustable-rate
        MBS(2)                    (6)   2,453     5.09
       Fixed-rate MBS         (2,025)   7,523     5.25
----------------------------------------------
                Total MBS(6)  (2,124)  15,939     5.40
----------------------------------------------
                Total
                 selected
                 loans
                 secured by
                 real estate
                 and MBS    $(27,044)$239,032     7.08
==============================================




                                     Weighted          Weighted
                                     Average           Average
                            Dec. 31,  Coupon  Mar. 31,  Coupon
                              2006     Rate     2006     Rate
---------------------------------------------------------------
Selected Loans Secured by
 Real Estate and MBS
   Home loans held in
    portfolio:
       Short-term
        adjustable-rate
        loans(1):
           Option ARMs       $63,557    7.44 % $70,169    6.34 %
           Other ARMs         15,091    7.17    15,781    6.64
-------------------------------------         ---------
                Total short-
                 term
                 adjustable-
                 rate loans   78,648    7.39    85,950    6.39
       Medium-term
        adjustable-rate
        loans(2)              29,774    5.77    49,391    5.61
       Fixed-rate loans        9,782    6.65     8,660    6.54
-------------------------------------         ---------
                Total home
                 loans held
                 in
                 portfolio   118,204    6.92   144,001    6.13
   Home equity loans and
    lines of credit:
       Short-term (Prime-
        based or treasury-
        based)(1)             34,213    8.40    37,181    7.79
       Fixed-rate loans       20,711    7.45    14,691    6.69
-------------------------------------         ---------
                Total home
                 equity
                 loans and
                 lines of
                 credit       54,924    8.04    51,872    7.48
   Multi-family loans held
    in portfolio:
       Short-term
        adjustable-rate
        loans(1):
           Option ARMs         9,164    7.18     9,506    6.13
           Other ARMs          7,473    7.12     6,280    6.27
-------------------------------------         ---------
                Total short-
                 term
                 adjustable-
                 rate loans   16,637    7.15    15,786    6.19
       Medium-term
        adjustable-rate
        loans(2)              11,757    5.68     8,791    5.35
       Fixed-rate loans        1,767    6.44     1,574    6.51
-------------------------------------         ---------
                Total multi-
                 family
                 loans held
                 in
                 portfolio    30,161    6.54    26,151    5.93
-------------------------------------         ---------
                Total
                 selected
                 loans held
                 in
                 portfolio
                 secured by
                 real
                 estate(3)   203,289    7.17   222,024    6.42
   Loans held for sale(4)     44,724    6.32    24,843    6.53
   MBS(5):
       Short-term
        adjustable-rate
        MBS(1)                 6,056    5.68     8,763    5.13
       Medium-term
        adjustable-rate
        MBS(2)                 2,459    5.08     4,020    4.93
       Fixed-rate MBS          9,548    5.27     8,605    5.21
-------------------------------------         ---------
                Total MBS(6)  18,063    5.38    21,388    5.13
-------------------------------------         ---------
                Total
                 selected
                 loans
                 secured by
                 real estate
                 and MBS    $266,076    6.90  $268,255    6.33
=====================================         =========


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

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

(3) At March 31, 2007, December 31, 2006, and March 31, 2006,
     adjustable-rate loans with lifetime caps were $162.24 billion,
     $169.60 billion, and $193.55 billion with a lifetime weighted
     average cap rate of 12.31%, 12.29% and 12.16%.

(4) Excludes credit card and student loans.

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

(6) At March 31, 2007, December 31, 2006, and March 31, 2006, the par
     value of adjustable-rate MBS with lifetime caps were $8.16
     billion, $8.17 billion and $12.92 billion with a lifetime
     weighted average cap rate of 10.55%, 10.54% and 10.36%.

                                                           Dec. 31,
                                                              2006
                                                            to Mar.
                                                           31, 2007
---------------------------------------------------------------------
Rollforward of Loans Held for Sale
    Balance, beginning of period                            $44,970
       Mortgage loans originated, purchased and
        transferred from held in portfolio                   30,057
       Mortgage loans transferred to held in
        portfolio                                            (1,753)
       Mortgage loans sold and other(1)                     (46,635)
       Net change in consumer loans held for sale               235
--------------------------------------------------------------------
    Balance, end of period                                  $26,874
====================================================================

Rollforward of Home Loans Held in Portfolio
    Balance, beginning of period                           $118,204
        Loans originated, purchased and transferred
         from held for sale                                  17,007
        Loan payments, transferred to held for sale
         and other                                          (24,150)
--------------------------------------------------------------------
    Balance, end of period                                 $111,061
====================================================================

(1) The unpaid principal balance ("UPB") of home loans sold was $45.25
     billion for the three months ended March 31, 2007.
WM-13
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                               Quarter Ended
----------------------------------------------------------------------
Detail of Revenue from Sales and      Mar.   Dec.  Sept.  June  Mar.
 Servicing of Home Mortgage Loans      31,    31,    30,    30,   31,
                                      2007   2006   2006  2006  2006
----------------------------------------------------------------------
Gain from home mortgage loans and
 originated mortgage-backed
 securities, net of hedging and risk
 management instruments(1):
   Gain from home mortgage loans and
    originated mortgage-backed
    securities                        $149    $64   $206  $190   $166
   Revaluation gain (loss) from
    derivatives economically hedging
    loans held for sale                (54)    91    (87)   61     43
----------------------------------------------------------------------
     Gain from home mortgage loans
      and originated mortgage-backed
      securities, net of hedging and
      risk management instruments       95    155    119   251    209
Home mortgage loan servicing revenue
 (expense):
   Home mortgage loan servicing
    revenue(2)                         514    497    525   586    572
   Change in MSR fair value due to
    payments on loans and other       (356)  (375)  (410) (460)  (409)
----------------------------------------------------------------------
     Net mortgage loan servicing
      revenue                          158    122    115   126    163
   Change in MSR fair value due to
    valuation inputs or assumptions    (96)   (80)  (469)  435    413
   Revaluation gain (loss) from
    derivatives economically hedging
    MSR                                (32)   (33)   353  (433)  (522)
   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                       30      9     (1)  (29)    54
     Total revenue from sales and
      servicing of home mortgage
      loans                           $125   $164   $118  $222   $263
======================================================================

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

(2)  Includes contractualy specified servicing fees, late charges and
      loan pool expenses (the shortfall of the scheduled interest
      required to be remitted to investors and that which is collected
      from borrowers upon payoff).


                                               Quarter Ended
----------------------------------------------------------------------
                                      Mar.   Dec.  Sept.  June  Mar.
                                       31,    31,    30,    30,   31,
                                      2007   2006   2006  2006  2006
----------------------------------------------------------------------
MSR Valuation and Risk Management(1):
 Change in MSR fair value due to
  valuation inputs or assumptions     $(96)  $(80) $(469) $435   $413
Gain (loss) on MSR risk management
 instruments:
 Revaluation gain (loss) from
  derivatives                          (32)   (33)   353  (433)  (522)
 Revaluation gain (loss) from certain
  trading securities                     4     (5)    39   (47)   (42)
 Loss from certain available-for-sale
  securities                             -      -     (1)    -      -
----------------------------------------------------------------------
   Total gain (loss) on MSR risk
    management instruments             (28)   (38)   391  (480)  (564)
----------------------------------------------------------------------
     Total changes in MSR valuation
      and risk management            $(124) $(118)  $(78) $(45) $(151)
======================================================================

(1)  Excludes $157 million downward adjustment to MSR fair value
      recognized in the three months ended June 30, 2006.
WM-14
                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                                               Quarter Ended
----------------------------------------------------------------------
                                        Mar. 31,  Dec. 31,  Sept. 30,
                                         2007       2006      2006
----------------------------------------------------------------------
Rollforward of Mortgage Servicing
 Rights(1)
   Balance, beginning of period           $6,193    $6,288    $9,162
      Home loans:
         Additions                           760       357       533
         Change in MSR fair value due
          to payments on loans and
          other                             (356)     (375)     (410)
         Change in MSR fair value due
          to valuation inputs or
           assumptions                       (96)      (80)     (469)
         Adjustment to MSR fair value
          for MSR sale                         -         -         -
         Fair value basis
          adjustment(2)                        -         -         -
         Sale of MSR                           -         1    (2,527)
      Net change in commercial real
       estate MSR                              6         2        (1)
----------------------------------------------------------------------
   Balance, end of period                 $6,507    $6,193    $6,288
======================================================================
Rollforward of Mortgage Loans Serviced
 for Others
   Balance, beginning of period         $444,696  $439,208  $570,352
      Home loans:
         Additions                        44,526    25,833    29,899
         Sale of servicing                    24         -  (141,842)
         Loan payments and other         (22,469)  (20,744)  (19,288)
      Net change in commercial real
       estate loans                        1,005       399        87
----------------------------------------------------------------------
   Balance, end of period               $467,782  $444,696  $439,208
======================================================================

                                         Mar. 31,  Dec. 31, Sept. 30,
                                            2007      2006      2006
----------------------------------------------------------------------
Total Servicing Portfolio
      Mortgage loans serviced for
       others                           $467,782  $444,696  $439,208
      Consumer loans serviced for
       others                             13,645    12,415    13,112
      Servicing on retained MBS
       without MSR                         1,082     1,140     1,199
      Servicing on owned loans           226,217   251,766   245,925
      Subservicing portfolio                 465    84,797   137,089
----------------------------------------------------------------------
   Total servicing portfolio           $ 709,191  $794,814  $836,533
======================================================================



                                                      Quarter Ended
----------------------------------------------------------------------
                                                   June 30,  Mar. 31,
                                                     2006      2006
----------------------------------------------------------------------
Rollforward of Mortgage Servicing Rights(1)
   Balance, beginning of period                      $8,736    $8,041
      Home loans:
         Additions                                      607       633
         Change in MSR fair value due to payments on
          loans and other                              (460)     (409)
         Change in MSR fair value due to valuation
          inputs or
           assumptions                                  435       413
         Adjustment to MSR fair value for MSR sale     (157)        -
         Fair value basis adjustment(2)                   -        57
         Sale of MSR                                      -         -
      Net change in commercial real estate MSR            1         1
----------------------------------------------------------------------
   Balance, end of period                            $9,162    $8,736
======================================================================
Rollforward of Mortgage Loans Serviced for Others
   Balance, beginning of period                    $569,501  $563,208
      Home loans:
         Additions                                   30,949    35,026
         Sale of servicing                               (9)        -
         Loan payments and other                    (30,368)  (29,063)
      Net change in commercial real estate loans        279       330
----------------------------------------------------------------------
   Balance, end of period                          $570,352  $569,501
======================================================================

                                                    June 30,  Mar. 31,
                                                       2006      2006
----------------------------------------------------------------------
Total Servicing Portfolio
      Mortgage loans serviced for others           $570,352  $569,501
      Consumer loans serviced for others             12,644    12,194
      Servicing on retained MBS without MSR           1,262     1,334
      Servicing on owned loans                      247,489   245,469
      Subservicing portfolio                            552       588
----------------------------------------------------------------------
   Total servicing portfolio                       $832,299  $829,086
======================================================================



                                                        March 31, 2007
----------------------------------------------------------------------
                                                            Weighted
                                                    Unpaid   Average
                                                 Principal Servicing
                                                   Balance     Fee
----------------------------------------------------------------------
                                                           (in basis
                                                             points,
Mortgage Loans Serviced for Others by Loan                 annualized)
 Type
      Agency                                     $247,330          31
      Private                                     186,931          55
      Subprime mortgage channel-home               33,521          51
----------------------------------------------------------------------
   Total mortgage loans serviced for
    others(3)                                    $467,782          42
======================================================================

(1)  MSR as a percentage of mortgage loans serviced for others was
      1.39%, 1.39%, 1.43%, 1.61% and 1.53% at March 31, 2007, December
      31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006.

(2)  Pursuant to the adoption of Statement No. 156 on January 1, 2006,
      the Company applied the fair value method of accounting to its
      mortgage servicing assets. The valuation allowance of $914
      million was written off against the recorded value of the MSR,
      and the $57 million difference between the net carrying value
      and fair value of the MSR was recorded as an increase to the
      basis of the Company's mortgage servicing rights.

(3)  Weighted average coupon rate was 6.30% at March 31, 2007.
WM-15
                       Washington Mutual, Inc.
                   Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                       Quarter Ended
----------------------------------------------------------------------
                        Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                           2007     2006      2006     2006     2006
----------------------------------------------------------------------
Allowance for Loan and
 Lease Losses
Balance, beginning of
 quarter                 $1,630   $1,550    $1,663   $1,642   $1,695
Allowance transferred
 to loans held for sale    (148)    (158)     (125)     (87)     (30)
Allowance acquired
 through business
 combinations/other           7       30         -        -        -
Provision for loan and
 lease losses               234      344       166      224       82
----------------------------------------------------------------------
                          1,723    1,766     1,704    1,779    1,747
Loans charged off:
   Loans secured by
    real estate:
      Home loans(1)         (35)     (16)      (12)     (11)     (12)
      Home equity loans
       and lines of
       credit(1)            (29)     (13)       (8)      (6)      (4)
      Subprime mortgage
       channel(2)           (40)     (52)      (47)     (21)     (20)
      Home
       construction(3)        -       (4)       (3)       -        -
      Other real estate       -       (1)       (2)       -       (3)
----------------------------------------------------------------------
           Total loans
            secured by
            real estate    (104)     (86)      (72)     (38)     (39)
   Consumer:
     Credit card            (96)     (68)      (98)     (94)     (63)
     Other                   (3)      (3)       (3)      (6)      (7)
   Commercial                (9)      (9)       (6)      (4)      (8)
----------------------------------------------------------------------
           Total loans
            charged off    (212)    (166)     (179)    (142)    (117)
Recoveries of loans
 previously charged
 off:
   Loans secured by
    real estate:
      Home loans(1)           1        -         -        1        -
      Home equity loans
       and lines of
       credit(1)              3        2         2        3        1
      Subprime mortgage
       channel(2)             1        4         -        1        1
      Multi-family            -        -         -        1        -
      Other real estate       -        -         -        1        1
----------------------------------------------------------------------
           Total loans
            secured by
            real estate       5        6         2        7        3
   Consumer:
      Credit card            16       18        16       15        4
      Other                   6        3         4        3        4
   Commercial                 2        3         3        1        1
----------------------------------------------------------------------
           Total
            recoveries
            of loans
            previously
            charged off      29       30        25       26       12
----------------------------------------------------------------------
               Net
                charge-
                offs       (183)    (136)     (154)    (116)    (105)
----------------------------------------------------------------------
Balance, end of quarter  $1,540   $1,630    $1,550   $1,663   $1,642
======================================================================

Net charge-offs
 (annualized) as a
 percentage of average
 loans held in
 portfolio                 0.33 %   0.23 %    0.26 %   0.19 %   0.18 %
Allowance as a
 percentage of total
 loans held in
 portfolio                 0.71     0.72      0.64     0.68     0.68

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

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

(3) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale and construction loans made directly to the
    intended occupant of a single-family residence.
WM-16
                       Washington Mutual, Inc.
                   Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                        Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
                         2007     2006      2006     2006     2006
--- ------------------------------------------------------------------
Nonperforming Assets and
 Restructured Loans
Nonaccrual loans(1)(2):
Loans secured by real
 estate:
 Home loans(3)             $690     $640      $568     $512     $490
 Home equity loans and
  lines of credit(3)        297      231       162      103       91
 Subprime mortgage
  channel (4)             1,503    1,283     1,121    1,092    1,013
 Home construction(5)        41       27        35       31       15
 Multi-family                60       46        31       19       21
 Other real estate           52       51        53       56       69
----------------------------------------------------------------------
       Total nonaccrual
        loans secured by
        real estate       2,643    2,278     1,970    1,813    1,699
Consumer                      1        1         1        1        6
Commercial                   28       16        16       16       26
----------------------------------------------------------------------
       Total nonaccrual
        loans held in
        portfolio         2,672    2,295     1,987    1,830    1,731
Foreclosed assets(6)        587      480       405      330      309
----------------------------------------------------------------------
       Total
        nonperforming
        assets           $3,259   $2,775    $2,392   $2,160   $2,040
       As a percentage
        of total assets    1.02 %   0.80 %    0.69 %   0.62 %   0.59 %
Restructured loans          $16      $18       $19      $20      $21
----------------------------------------------------------------------
          Total
           nonperforming
           assets and
           restructured
           loans         $3,275   $2,793    $2,411   $2,180   $2,061
======================================================================

(1) Nonaccrual loans held for sale, which are excluded from the
     nonaccrual balances presented above, were $195 million, $185
     million, $129 million, $122 million, and $201 million at March
     31, 2007, December 31, 2006, September 30, 2006, June 30, 2006,
     and March 31, 2006. 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) Excludes home loans and home equity loans and lines of credit in
     the subprime mortgage channel.

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

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

(6) Foreclosed real estate securing Government National Mortgage
     Association ("GNMA") loans of $72 million, $99 million, $129
     million, $142 million, and $167 million at March 31, 2007,
     December 31, 2006, September 30, 2006, June 30, 2006, and March
     31, 2006 have been excluded. These assets are fully collectible
     as the corresponding GNMA loans are insured by the Federal
     Housing Administration ("FHA") or guaranteed by the Department of
     Veterans Affairs ("VA").


    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)
             212-702-6955 (New York)
             alan.magleby@wamu.net

    SOURCE: Washington Mutual, Inc.