Washington Mutual Announces Fourth Quarter and 2005 Earnings; Diluted EPS Increased 12 Percent for the Quarter and 14 Percent for the Year Board of Directors Increases Cash Dividend

Washington Mutual's Board of Directors declared a cash dividend of50 cents per share on the company's common stock, up from 49 cents pershare in the previous quarter. Dividends on the common stock arepayable on February 15, 2006 to shareholders of record as of January31, 2006.

"Despite the challenging environment, especially in the home loansbusiness, we delivered solid performance, achieving 12 percentearnings per share growth for the quarter and 14 percent for theyear," said Kerry Killinger, chairman and chief executive officer."Our strategies are sound and we continue to execute on our growth andproductivity initiatives. In addition, our risk management efforts areon track, and we have a proven management team in place as we enter2006."

Key Results

-- The company closed its merger with Providian Financial Corporation on October 1, 2005. The financial results for the fourth quarter and for all of 2005 reflect a full quarter's activity for the Card Services Group.

-- Total average assets of $349.93 billion in the fourth quarter of 2005 increased 7 percent from $327.29 billion in the third quarter of 2005 and included the addition of $13.42 billion of Providian assets in the fourth quarter. Average assets were up 15 percent for all of 2005, reflecting the company's continued strong asset generation capability.

-- The net interest margin increased to 2.77 percent in the fourth quarter from 2.61 percent in the third quarter of 2005, as the addition of Card Services' higher-yielding assets more than offset the effect of a flattening yield curve.

-- Depositor and other retail banking fees of $586 million in the fourth quarter of 2005 were up $71 million, or 14 percent, from the fourth quarter of 2004 and for the full year retail banking fees of $2.19 billion increased $194 million, or 10 percent, from 2004, reflecting the strong growth in checking accounts over the periods. During 2005, checking accounts grew by 902,000 accounts, or 10 percent.

-- During the fourth quarter, Card Services added $313 million in revenue from sales and servicing of consumer loans and $139 million in credit card fees to the company's total noninterest income.

-- Revenue from sales and servicing of home mortgage loans, including the results of all MSR risk management instruments, was $264 million in the fourth quarter of 2005, compared with $497 million in the third quarter of 2005 and $384 million in the fourth quarter of 2004. The further flattening of the yield curve in the fourth quarter significantly increased the cost of MSR risk management, which contributed to the decrease in revenue. For the full year, revenues were $1.79 billion, compared with $1.47 billion in 2004. The improved year-over-year performance reflected increased sales volume of the company's Option ARM product.

-- The provision for loan and lease losses was $121 million in the fourth quarter of 2005, of which $99 million was allocated for credit card loans. The loan loss provision of $220 million for 2005 also included $37 million for potential hurricane-related losses. The remaining provision of $84 million compares favorably with the $209 million provision in 2004 and reflected a positive credit environment for most of 2005.

-- Noninterest expense of $2.28 billion in the fourth quarter increased by $353 million from $1.93 billion in the third quarter of 2005 and increased by $340 million from $1.94 billion in the fourth quarter of 2004, primarily due to the addition of Card Services.

FOURTH QUARTER FINANCIAL SUMMARY

Net Interest Income

The net interest margin in the fourth quarter was 2.77 percent, up16 basis points from 2.61 percent in the third quarter of 2005, as theaddition of Card Services' higher-yielding assets more than offset themargin compression on the remainder of the company's portfolio. Whilethe net interest margin was up on a linked-quarter basis, it was down2 basis points from 2.79 percent in the fourth quarter of 2004. Thedecrease in the net interest margin from a year ago reflects theflattening of the yield curve and the continuing rise in short-terminterest rates since June of 2004, the impact of which was mostlyoffset by the addition of Card Services. On an annual basis, the 2005net interest margin of 2.67 percent was down 15 basis points from 2.82percent during 2004. The decline reflected the impact of a 200 basispoint increase in the Fed Funds rate over the past twelve months. Theupward repricing of the company's interest-bearing assets continues tolag the increase in the cost of its interest-bearing liabilities.

Net interest income of $2.15 billion in the fourth quarter was upfrom $1.92 billion in the third quarter of 2005 reflecting both the 6percent increase in average interest-earning assets and the inclusionof Card Services' higher-yielding credit card portfolio which had theeffect of increasing this quarter's net interest margin. Compared withthe fourth quarter a year ago, net interest income was up 16 percentfrom $1.85 billion, which reflected an 18 percent increase in averageinterest-earning assets that more than offset the margin compression.

Noninterest Income

Noninterest income was $1.59 billion in the fourth quarter of2005, up from $1.37 billion in the third quarter of 2005 and up from$1.22 billion in the fourth quarter of 2004. Card Services added $313million from the sales and servicing of consumer loans and $139million was from credit card fees.

Reflecting the strong growth in checking accounts, depositor andother retail banking fees of $586 million in the fourth quarter wereup $71 million, or 14 percent, from the same quarter a year ago and at$2.19 billion for 2005 were up $194 billion, or 10 percent, year overyear.

Revenue from sales and servicing of home mortgage loans, includingthe results of all MSR risk management instruments, was $264 millionin the fourth quarter of 2005, compared with $497 million in the thirdquarter of 2005 and $384 million in the fourth quarter of 2004. Asexpected, the interest rate environment for mortgage banking was morechallenging during the fourth quarter. Rising short-term rates and aflat yield curve significantly increased the cost of MSR riskmanagement during the fourth quarter when compared with the priorperiods. In addition, continued competitive pressure in both the primeand subprime markets affected gain on sale margins. For the full year,mortgage banking revenue of $1.79 billion was up from $1.47 billion in2004 as the company took advantage of the strong secondary market.

Noninterest Expense

Noninterest expense of $2.28 billion was up $353 million from thethird quarter of 2005 and up $340 million from the fourth quarter of2004. The majority of the increase in expenses reflects the additionof Card Services. Also contributing to the increase were the company'sgrowth initiatives, primarily the opening of 95 new retail bankingstores during the quarter and 210 during all of 2005. Noninterestexpense for the year, after factoring in the impact of the company'snew credit card business, was in line with 2004's level of $7.5billion.

At 58.17 percent, the company's efficiency ratio for 2005 was asignificant improvement from 64.25 percent in 2004. The efficiencyratio over the past year reflected the company's success in growingrevenue and its continued focus on productivity improvements andexpense management. However, it was negatively impacted by theflattening of the yield curve which put pressure on the company's netinterest margin, as well as by the higher cost of MSR risk managementin the fourth quarter. As a result the company's efficiency ratio inthe fourth quarter rose to 60.79 percent from 58.52 percent in thethird quarter of 2005.

Lending

Total home loan volume in the fourth quarter of 2005 was $50.43billion, compared with $56.14 billion in the third quarter of 2005 and$50.95 billion in the fourth quarter of 2004, reflecting a slowinghousing market. Short-term adjustable-rate loans made up 26 percent oftotal home loan volume in the fourth quarter of 2005, compared with 31percent in the third quarter of 2005 and 39 percent in the fourthquarter of 2004, as the flattening yield curve continued to influencethe product mix of loans originated.

Home equity loans and lines of credit volume of $9.12 billion inthe quarter was down from $10.83 billion in the prior quarter and$9.31 billion in the fourth quarter of 2004. As with home loan lendingvolume, the flattening of the yield curve is having a dampening effecton home equity lending.

Multi-family lending volume of $2.60 billion in the fourth quarterof 2005 was up slightly from $2.58 billion in the third quarter of2005 and up from $2.24 billion in the fourth quarter of 2004.

Total loan volume of $261.16 billion in 2005 was down onlyslightly from $266.73 billion in 2004. The year's solid performancereflected continued strong loan demand, relatively low long-terminterest rates, and record loan volume from the company's multi-familylending and its subsidiary Long Beach Mortgage Company.

Credit Quality

At December 31, 2005, nonperforming assets as a percentage oftotal assets were 0.57 percent, compared with 0.52 percent atSeptember 30, 2005 and 0.58 percent at December 31, 2004.Nonperforming assets of $1.96 billion increased $241 million duringthe fourth quarter due to a higher level of nonaccrual home loans, aportion of which were delinquent loans in hurricane impacted areas.

Net charge-offs for the quarter were $137 million, which included$98 million in credit card losses. The remaining net charge-offs forthe quarter were $39 million, compared with $31 million in the thirdquarter of 2005 and $38 million in the fourth quarter of 2004, andremained low, in part due to the company's proactive credit riskmanagement.

The provision for loan and lease losses was $121 million in thefourth quarter of 2005, of which $99 million was targeted for creditcard loans. The loan loss provision of $220 million for 2005 included$99 million for Card Services and $37 million for potentialhurricane-related losses. The remaining provision of $84 millioncompares favorably with the $209 million provision in 2004 andreflects the positive credit environment that existed for most of2005.

Balance Sheet and Capital Management

Average assets of $349.93 billion increased 7 percent from thethird quarter of 2005 and increased 18 percent from the fourth quarterof 2004, reflecting the addition of $13.42 billion of Providian assetsduring the quarter and the company's continued strong asset generationcapability.

Average deposits of $196.80 billion during the fourth quarter wereup $8.48 billion, or 5 percent, from the third quarter due to theinclusion of approximately $8.30 billion in deposits from Providian.Compared with the fourth quarter of 2004, average deposits were up$22.93 billion, or 13 percent, due to the growth in both retail andwholesale deposits.

The company's ratio of tangible equity to total tangible assetswas 5.73 percent at the end of the quarter. At the beginning of thequarter, the company issued approximately 121 million shares inconnection with the Providian merger, and subsequently repurchasedapproximately 18.9 million shares of its stock.

The capital ratios of the company's banking subsidiaries continuedto exceed the federal regulatory requirements for classification as"well-capitalized" institutions, the highest regulatory standard.

FOURTH QUARTER OPERATING SEGMENT RESULTS

Retail Banking and Financial Services Group

Net income for the company's Retail Banking and Financial Servicessegment was $628 million in the fourth quarter of 2005, up 4 percentfrom $603 million in the third quarter of 2005 and up 1 percent from$623 million in the fourth quarter of 2004. On a linked-quarter basis,net interest income was up $48 million due to an increase in theaverage balance of the home loans portfolio along with a slight marginexpansion.

Noninterest income of $818 million in the fourth quarter of 2005was up from $786 million in the prior quarter. The quarter's increasefrom $717 million in the fourth quarter a year ago included a 14percent growth in depositor and other retail banking fees.

The increase in noninterest expense to $1.17 billion during thefourth quarter from $1.13 billion in the third quarter and $1.05billion in the fourth quarter of 2004 included the cost of investingin 95 new retail stores during the quarter and 210 new retail storesduring the year.

The average balance of home equity loans and lines of credit was$50.46 billion during the fourth quarter, a 20 percent increase in thepast twelve months. Average retail deposits of $140.21 billion wereflat with the third quarter of 2005, and were up 6 percent from thefourth quarter of 2004.

Over the past year, the Retail Bank has been very successful inattracting new deposit accounts. The number of checking accountsincreased by 902,000 accounts, or 10 percent, reflecting the stronggrowth in free checking and momentum in attracting small businesses --both areas of continued focus. During the year, the number of smallbusiness checking accounts increased by 48 percent. In addition tosuccessfully promoting its checking products, the companysignificantly increased balances in its other deposit products, asaverage retail deposits for 2005 increased by 5 percent from 2004. Forthe year, the total number of retail accounts grew by approximately1.8 million accounts, or 12 percent.

The company's retail banking cross-sell ratio increased to 6.31products and services, up from 5.85 at December 31, 2004, reflectingthe company's success in selling products and services to itscustomers. The increase also reflects the number of existingWashington Mutual retail banking customers who hold Providian creditcards. Over the past year, WM Advisors' assets under management grewby $3.11 billion, or 14 percent, to $25.31 billion at December 31,2005.

Card Services Group

Card Services is the company's newest business line -- the resultof the merger with Providian on October 1. Consequently, only thefourth quarter operating results for Card Services are shown.

The quarter reflected encouraging results for Card Services. Netincome was $166 million. The integration process is on target.Specific marketing programs aimed at Washington Mutual retailcustomers were launched with positive early results. During thequarter, Card Services added $1.05 billion in managed receivables,however, because Card Services also sold $365 million of higher riskloans, the ending balance of managed receivables of $19.96 billion wasup $680 million for the quarter. A meaningful portion of this growthwas the direct result of cross selling cards to the company's retailcustomer base.

The credit quality of the card portfolio continues to be strong.The 30+ day managed delinquency rate at December 31 was 5.07 percentof total managed receivables, up slightly from 5.00 percent at the endof the third quarter. At 7.28 percent, managed net credit losses as apercentage of average managed receivables were essentially flat withthe third quarter.

Commercial Group

Net income for the Commercial Group segment, which includes LongBeach Mortgage, was $164 million in the fourth quarter of 2005,compared with $216 million in the third quarter of 2005 and $136million in the fourth quarter of 2004. Noninterest income of $97million was down from $156 million in the third quarter of 2005,reflecting gain on sale revenue at Long Beach that was adverselyimpacted by adjustments in estimates of the company's liability torepurchase loans resulting from whole loan sales and compressedmargins.

Noninterest expense of $180 million during the fourth quarter wasup from $163 million in the prior quarter and up from $155 million inthe fourth quarter of 2004, as the Commercial Group continued toexpand its Long Beach operations.

Loan volume of $41.00 billion during 2005 was up from $28.98billion in 2004 and reflected record loan volume for multi-familylending and from Long Beach.

Home Loans Group

Net income for the Home Loans segment was $47 million in thefourth quarter of 2005, compared with $191 million in the thirdquarter of 2005 and $164 million in the fourth quarter of 2004,reflecting the decrease in noninterest income over the periods.Contributing to the fourth quarter's decline in noninterest income wasthe increased cost of MSR risk management due to the flattening of theyield curve throughout the year, partially offset by a reduction ofthe company's estimated liability to repurchase loans resultingprincipally from improved repurchase experience.

Noninterest expense of $540 million in the fourth quarter of 2005was essentially flat with the third quarter of 2005, but was down $56million, or 9 percent, from $596 million in the fourth quarter of2004, as the hiring of additional sales staff was partially offset bycontinued productivity and efficiency improvements. Productivityimprovements throughout 2005 resulted in a decline in noninterestexpense of $347 million for the year.

The Home Loans segment loan volume in the fourth quarter of 2005was $41.49 billion, compared with $48.08 billion in the third quarterof 2005 and $41.78 billion in the fourth quarter of last year, as arelatively strong housing market and relatively low interest ratescontinued to drive volume.

Company Updates

During the quarter, the company hired Ronald J. Cathcart asexecutive vice president and chief enterprise risk officer and John F.Woods as its new corporate controller.

On December 21, 2005, the company announced the realignment ofLong Beach and Mortgage Banker Finance under the leadership of DavidSchneider - President of the Home Loans Group. Segment operatingresults will reflect the move in the first quarter of 2006.

To support the company's ambitious growth plans and to achieve toptier productivity, the company expects to relocate more of itsoperations to lower cost domestic markets and increase its use ofoffshore resources where appropriate. The company currently utilizesabout 1,600 offshore vendor FTEs and as it continues planning itsbusiness efficiency initiatives, the number of offshore FTE could growto over 6,000 over the next two years. In addition, the company'sregional operations in San Antonio, TX could grow to over 3,000 FTEsover that same period. To support that effort, today the companyinformed approximately 1,000 employees from its Chatsworth, CAfacility that over the next few months the majority of their positionswould be relocated to San Antonio, with a small portion of the workcurrently done by these employees migrating offshore.

About Washington Mutual

With a history dating back to 1889, Washington Mutual is aretailer of financial services that provides a diversified line ofproducts and services to consumers and commercial clients. At December31, 2005, Washington Mutual and its subsidiaries had assets of $343.12billion. Washington Mutual currently operates more than 2,600 retailbanking, mortgage lending, commercial banking, and financial servicesoffices throughout the nation. Washington Mutual's press releases areavailable at www.wamunewsroom.com.

Webcast information: A conference call to discuss the company'sfinancial results will be held on Wednesday, January 18, 2006, at 5:00p.m. EST and will be hosted by Kerry Killinger, chairman and chiefexecutive officer and Tom Casey, executive vice president and chieffinancial officer. The conference call is available by telephone or onthe Internet. The dial-in number for the live conference call is800-857-5735. Participants calling from outside the United States maydial 210-234-0006. The passcode "WaMu" is required to access the call.Via the Internet, the conference call is available on the InvestorRelations portion of the company's web site at www.wamu.com/ir. Atranscript of the prepared remarks will be available on the company'sweb site prior to the call and archived for 30 days. A recording ofthe conference call will be available after 7:00 p.m. EST onWednesday, January 18, 2006, through 11:59 p.m. EST on Friday, January27, 2006. The recorded message will be available at 800-395-6236.Callers from outside the United States may dial 203-369-3270.

Forward Looking Statement

Our Form 10-K for 2004 and other documents that we filed with theSecurities and Exchange Commission have forward-looking statements. Inaddition, our senior management may make forward-looking statementsorally to analysts, investors, the media and others. Forward-lookingstatements can be identified by the fact that they do not relatestrictly to historical or current facts. They often include words suchas "expects," "anticipates," "intends," "plans," "believes," "seeks,""estimates," or words of similar meaning, or future or conditionalverbs such as "will," "would," "should," "could" or "may."Forward-looking statements provide our expectations or predictions offuture conditions, events or results. They are not guarantees offuture performance. By their nature, forward-looking statements aresubject to risks and uncertainties. These statements speak only as ofthe date they are made. We do not undertake to update forward-lookingstatements to reflect the impact of circumstances or events that ariseafter the date the forward-looking statements were made. There are anumber of factors, many of which are beyond our control that couldcause actual conditions, events or results to differ significantlyfrom those described in the forward-looking statements. Some of thesefactors are:

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

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

-- The potential for negative amortization in the option adjustable-rate mortgage product could have an adverse effect on the company's credit performance;

-- The company faces competition from banking and nonbanking companies;

-- Changes in the regulation of financial services companies and housing government-sponsored enterprises, and in particular, declines in the liquidity of the mortgage loan secondary market, could adversely affect business;

-- General business and economic conditions, including movements in interest rates, the slope of the yield curve and the potential overextension of housing prices in certain geographic markets, may significantly affect the company's business activities and earnings;

-- Negative public opinion could damage the company's reputation and adversely affect earnings; and,

-- Matters related to Washington Mutual Card Services, including, among others, risk related to integration of systems and the realization of expected growth opportunities.

WM-1

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

Quarter Ended
--------------------------------------------------------
Dec. 31, Sept. 30, June 30,
2005 2005 2005
------------------------ ----------- --------- ---------
PROFITABILITY
Net income $ 865 $ 821 $ 844
Net interest income 2,154 1,916 1,926
Noninterest income 1,593 1,374 1,267
Noninterest expense 2,278 1,925 1,828

Diluted earnings per
common share 0.85 0.92 0.95

Diluted weighted
average
number of common
shares
outstanding(1) 1,011,395 888,495 887,250
Net interest margin 2.77 % 2.61 % 2.66 %
Dividends declared
per common share $ 0.49 $ 0.48 $ 0.47
Book value per
common share(2) 27.95 25.92 25.62
Return on average
assets 0.99 % 1.00 % 1.05 %
Return on average
common equity 12.49 14.66 15.33
Efficiency ratio(3) 60.79 58.52 57.24

ASSET QUALITY
Nonperforming
assets/total
assets(4)(5) 0.57 % 0.52 % 0.53 %
Allowance as a
percentage of total
loans held in
portfolio(4) 0.74 0.58 0.58
Provision for loan
and lease losses $ 121 $ 52 $ 31
Net charge-offs 137 31 39

CAPITAL ADEQUACY(5)
Capital Ratios at
WMI-consolidated
level:
Tangible
equity(6)/total
tangible
assets(6) 5.73 % 5.09 % 5.13 %
Estimated total
risk-based
capital/total
risk-weighted
assets(7) 11.10 10.71 11.10
Capital Ratios at
WMB-bank only level
(well-capitalized
minimum)(8):
Tier 1 capital
to adjusted
total assets
(5.00%) 6.59 5.85 5.74
Adjusted tier 1
capital to
total risk-
weighted assets
(6.00%) 8.73 8.47 8.38
Total risk-based
capital to
total risk-
weighted assets
(10.00%) 11.77 11.48 11.51

SUPPLEMENTAL DATA
Average balance sheet:
Total loans held
in portfolio $ 227,568 $213,016 $213,638
Total interest-
earning assets 314,531 296,568 290,876
Total assets 349,931 327,292 320,845
Total deposits 196,799 188,320 183,521
Total
stockholders'
equity 27,708 22,412 22,014
Period-end balance
sheet:
Total loans held in
portfolio, net of
allowance for loan
and lease losses 227,937 216,930 211,494
Total assets 343,119 333,622 323,533
Total deposits 193,167 190,412 184,317
Total
stockholders'
equity 27,616 22,596 22,350
Common shares
outstanding at
the end of
period(1)(9) 993,914 877,651 878,384
Employees at end
of period 60,798 56,214 54,377


Quarter Ended Year Ended
---------------------------------------------------------------------
Mar. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
--------------------------- --------- --------- --------- --------
PROFITABILITY
Net income $ 902 $ 668 $ 3,432 $ 2,878
Net interest income 1,890 1,850 7,886 7,116
Noninterest income 1,408 1,217 5,642 4,612
Noninterest expense 1,839 1,938 7,870 7,535

Diluted earnings per
common share 1.01 0.76 3.73 3.26

Diluted weighted
average number
of common shares
outstanding(1) 888,789 883,991 919,238 884,050
Net interest margin 2.73 % 2.79 % 2.67 % 2.82 %
Dividends declared per
common share $ 0.46 $ 0.45 $ 1.90 $ 1.74
Book value per common
share(2) 24.98 24.45 27.95 24.45
Return on average
assets 1.17 % 0.90 % 1.05 % 1.01 %
Return on average
common equity 16.63 12.71 14.63 14.02
Efficiency ratio(3) 55.77 63.18 58.17 64.25

ASSET QUALITY
Nonperforming
assets/total
assets(4)(5) 0.57 % 0.58 % 0.57 % 0.58 %
Allowance as a
percentage of total
loans held in
portfolio(4) 0.60 0.63 0.74 0.63
Provision for loan and
lease losses $ 16 $ 37 $ 220 $ 209
Net charge-offs 37 38 244 135

CAPITAL ADEQUACY(5)
Capital Ratios at WMI-
consolidated level:
Tangible
equity(6)/total
tangible assets(6) 5.03 % 5.05 % 5.73 % 5.05 %
Estimated total
risk-based
capital/total
risk-weighted
assets(7) 11.21 11.34 11.10 11.34
Capital Ratios at WMB-
bank only level
(well-capitalized
minimum)(8):
Tier 1 capital to
adjusted total
assets (5.00%) 5.69 5.46 6.59 5.46
Adjusted tier 1
capital to total
risk-weighted
assets (6.00%) 8.40 8.12 8.73 8.12
Total risk-based
capital to total
risk-weighted
assets (10.00%) 11.68 11.68 11.77 11.68

SUPPLEMENTAL DATA
Average balance sheet:
Total loans held in
portfolio $207,320 $208,296 $215,434 $194,433
Total interest-
earning assets 277,080 266,375 294,872 252,501
Total assets 308,172 297,158 326,677 284,078
Total deposits 175,185 173,873 186,023 165,408
Total stockholders'
equity 21,680 21,025 23,467 20,528
Period-end balance
sheet:
Total loans held in
portfolio, net of
allowance for loan
and lease losses 212,834 205,770 227,937 205,770
Total assets 319,696 307,918 343,119 307,918
Total deposits 183,631 173,658 193,167 173,658
Total stockholders'
equity 21,767 21,226 27,616 21,226
Common shares
outstanding at the
end of period(1)(9) 877,287 874,262 993,914 874,262
Employees at end of
period 52,488 52,579 60,798 52,579

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

(1) Number of shares in thousands.

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

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

(4) Excludes nonaccrual loans held for sale.

(5) As of period end.

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

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

(8) Capital ratios for Washington Mutual Bank ("WMB") at December 31,
2005 are preliminary.

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


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

Quarter Ended
----------------------------------------------------------------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2005 2005 2005 2005 2004
----------------------------------------------------------------------
Interest Income
Loans held for
sale $ 673 $ 661 $ 576 $ 470 $ 393
Loans held in
portfolio 3,347 2,862 2,754 2,544 2,421
Available-for-sale
securities 303 238 234 224 157
Trading assets 185 114 91 79 66
Other interest and
dividend income 73 65 51 43 29
----------------------------------------------------------------------
Total interest
income 4,581 3,940 3,706 3,360 3,066
Interest Expense
Deposits 1,184 996 852 696 604
Borrowings 1,243 1,028 928 774 612
----------------------------------------------------------------------
Total interest
expense 2,427 2,024 1,780 1,470 1,216
----------------------------------------------------------------------
Net interest
income 2,154 1,916 1,926 1,890 1,850
Provision for loan
and lease losses 121 52 31 16 37
----------------------------------------------------------------------
Net interest
income after
provision for
loan and lease
losses 2,033 1,864 1,895 1,874 1,813
Noninterest Income
Revenue from sales
and servicing of
home mortgage
loans 421 714 118 777 352
Revenue from sales
and servicing of
consumer loans 313 2 2 1 1
Depositor and
other retail
banking fees 586 578 540 490 515
Credit card fees 139 - - - -
Securities fees
and commissions 114 111 112 110 110
Insurance income 37 42 47 46 47
Portfolio loan
related income 103 103 96 85 101
Trading assets
income (loss) (273) (171) 285 (98) 26
Gain (loss) from
other available-
for-sale securities 46 (32) 25 (122) (23)
Gain on extinguishment
of borrowings 1 - - - -
Other income 106 27 42 119 88
----------------------------------------------------------------------
Total noninterest
income 1,593 1,374 1,267 1,408 1,217
Noninterest Expense
Compensation and
benefits 1,037 939 886 876 839
Occupancy and
equipment 399 372 350 402 462
Telecommunications
and outsourced
information
services 139 108 100 104 115
Depositor and
other retail
banking losses 60 61 49 55 61
Advertising and
promotion 114 81 77 55 57
Professional fees 63 48 38 34 54
Other expense 466 316 328 313 350
----------------------------------------------------------------------
Total noninterest
expense 2,278 1,925 1,828 1,839 1,938
----------------------------------------------------------------------
Income before
income taxes 1,348 1,313 1,334 1,443 1,092
Income taxes 483 492 490 541 424
----------------------------------------------------------------------
Net Income $ 865 $ 821 $ 844 $ 902 $ 668
======================================================================

Earnings Per Common
Share:
Basic $ 0.88 $ 0.95 $ 0.98 $ 1.04 $ 0.77
Diluted 0.85 0.92 0.95 1.01 0.76

Dividends declared
per common share 0.49 0.48 0.47 0.46 0.45
Basic weighted
average number of
common shares
outstanding (in
thousands) 980,084 866,541 865,221 864,933 863,055
Diluted weighted
average number of
common shares
outstanding (in
thousands) 1,011,395 888,495 887,250 888,789 883,991



WM-3

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


Year Ended
---------------------------------------------------------------------
Dec. 31, Dec. 31,
2005 2004
--------------------------------------------------- --------- --------
Interest Income
Loans held for sale $ 2,382 $ 1,472
Loans held in portfolio 11,507 8,825
Available-for-sale securities 998 764
Trading assets 469 151
Other interest and dividend income 232 138
--------------------------------------------------- --------- --------
Total interest income 15,588 11,350
Interest Expense
Deposits 3,728 2,043
Borrowings 3,974 2,191
--------------------------------------------------- --------- --------
Total interest expense 7,702 4,234
--------------------------------------------------- --------- --------
Net interest income 7,886 7,116
Provision for loan and lease losses 220 209
--------------------------------------------------- --------- --------
Net interest income after provision
for loan and lease losses 7,666 6,907
Noninterest Income
Revenue from sales and servicing of home
mortgage loans 2,030 1,387
Revenue from sales and servicing of consumer
loans 317 4
Depositor and other retail banking fees 2,193 1,999
Credit card fees 139 -
Securities fees and commissions 448 426
Insurance income 172 226
Portfolio loan related income 387 401
Trading assets income (loss) (257) 89
Gain (loss) from other available-for-sale
securities (84) 50
Gain (loss) on extinguishment of borrowings 1 (237)
Other income 296 267
--------------------------------------------------- --------- --------
Total noninterest income 5,642 4,612
Noninterest Expense
Compensation and benefits 3,737 3,428
Occupancy and equipment 1,523 1,659
Telecommunications and outsourced information
services 450 479
Depositor and other retail banking losses 226 195
Advertising and promotion 327 276
Professional fees 182 158
Other expense 1,425 1,340
--------------------------------------------------- --------- --------
Total noninterest expense 7,870 7,535
--------------------------------------------------- --------- --------
Income from continuing operations
before income taxes 5,438 3,984
Income taxes 2,006 1,505
--------------------------------------------------- --------- --------
Income from continuing
operations, net of taxes 3,432 2,479
--------------------------------------------------- --------- --------
Discontinued Operations
Loss from discontinued operations
before income taxes - (32)
Gain on disposition of discontinued
operations - 676
Income taxes - 245
--------------------------------------------------- --------- --------
Income from discontinued
operations, net of taxes - 399
--------------------------------------------------- --------- --------
Net Income $ 3,432 $ 2,878
=================================================== ========= ========

Basic Earnings Per Common Share:
Income from continuing operations $ 3.84 $ 2.88
Income from discontinued operations, net - 0.46
-------- --------
Net income 3.84 3.34

Diluted Earnings Per Common Share:
Income from continuing operations 3.73 2.81
Income from discontinued operations, net - 0.45
-------- --------
Net income 3.73 3.26

Dividends declared per common share 1.90 1.74
Basic weighted average number of common shares
outstanding (in thousands) 894,434 862,215
Diluted weighted average number of common shares
outstanding (in thousands) 919,238 884,050


WM-4

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

Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2005 2005 2005 2005 2004
--------------------- --------- --------- --------- --------- --------
Assets
Cash and cash
equivalents $ 6,214 $ 4,924 $ 4,614 $ 4,811 $ 4,455
Federal funds sold
and securities
purchased under
agreements to
resell 2,137 3,194 625 1,152 82
Trading assets 10,999 7,351 5,687 6,066 5,588
Available-for-
sale securities,
total amortized
cost of $24,810,
$20,757, $18,999,
$20,569 and
$19,047:
Mortgage-backed
securities 20,648 17,161 14,396 15,947 14,923
Investment
securities 4,011 3,603 4,852 4,756 4,296
Loans held for
sale 33,582 48,018 51,122 41,197 42,743
Loans held in
portfolio 229,632 218,194 212,737 214,114 207,071
Allowance for
loan and lease
losses (1,695) (1,264) (1,243) (1,280) (1,301)
--------------------- --------- --------- --------- --------- --------
Total loans
held in
portfolio, net
of allowance
for loan and
lease losses 227,937 216,930 211,494 212,834 205,770
Investment in
Federal Home
Loan Banks 4,257 4,228 4,194 3,973 4,059
Mortgage
servicing rights 8,041 7,042 5,730 6,802 5,906
Goodwill 8,298 6,196 6,196 6,196 6,196
Other assets 16,995 14,975 14,623 15,962 13,900
--------------------- --------- --------- --------- --------- --------
Total assets $343,119 $333,622 $323,533 $319,696 $307,918
===================== ========= ========= ========= ========= ========
Liabilities
Deposits:
Noninterest-
bearing
deposits $ 34,014 $ 36,850 $ 35,518 $ 34,941 $ 32,780
Interest-
bearing
deposits 159,153 153,562 148,799 148,690 140,878
--------------------- --------- --------- --------- --------- --------
Total deposits 193,167 190,412 184,317 183,631 173,658
Federal funds
purchased and
commercial paper 7,081 7,229 5,864 2,053 4,045
Securities sold
under agreements
to repurchase 15,532 14,508 14,089 16,716 15,944
Advances from
Federal Home
Loan Banks 68,771 69,405 71,534 66,730 70,074
Other borrowings 23,777 23,994 20,752 21,938 18,498
Other liabilities 7,175 5,478 4,627 6,861 4,473
--------------------- --------- --------- --------- --------- --------
Total
liabilities 315,503 311,026 301,183 297,929 286,692
Stockholders' equity 27,616 22,596 22,350 21,767 21,226
--------------------- --------- --------- --------- --------- --------
Total
liabilities
and
stockholders'
equity $343,119 $333,622 $323,533 $319,696 $307,918
===================== ========= ========= ========= ========= ========


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

Quarter Ended
-----------------------------------------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2005 2005 2005 2005 2004
-------- --------- --------- --------- --------
Stockholders' Equity
Rollforward
Balance, beginning of
period $22,596 $ 22,350 $ 21,767 $ 21,226 $ 20,820
Net income 865 821 844 902 668
Other comprehensive
(loss) income, net
of tax (91) (158) 98 (8) 49
Cash dividends
declared on common
stock (480) (419) (409) (402) (390)
Common stock
repurchased and
retired (723) (98) - (100) -
Common stock issued 5,449 100 50 149 79
---------------------- -------- --------- --------- --------- --------
Balance, end of
period $27,616 $ 22,596 $ 22,350 $ 21,767 $ 21,226
====================== ======== ========= ========= ========= ========


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

Quarter Ended
---------------------------------------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2005 2005 2005 2005 2004
------------------------ -------- -------- -------- -------- --------
RETAIL BANKING AND
FINANCIAL SERVICES GROUP
Condensed income
statement:
Net interest income $ 1,395 $ 1,347 $ 1,391 $ 1,344 $ 1,330
Provision for loan
and lease losses 42 47 40 37 35
Noninterest income 818 786 751 695 717
Inter-segment revenue 8 12 11 12 8
Noninterest expense 1,173 1,128 1,087 1,055 1,049
------------------------ -------- -------- -------- -------- --------
Income before income
taxes 1,006 970 1,026 959 971
Income taxes 378 367 388 363 348
------------------------ -------- -------- -------- -------- --------
Net income $ 628 $ 603 $ 638 $ 596 $ 623
======================== ======== ======== ======== ======== ========
Performance and other
data:
Efficiency ratio(1) 52.81% 52.61% 50.49% 51.46% 51.05%
Average loans $183,780 $179,361 $181,396 $177,635 $177,204
Average assets 196,868 191,926 194,026 190,494 189,892
Average deposits:
Checking deposits:
Noninterest
bearing 19,953 19,350 18,868 17,588 16,710
Interest bearing 43,192 45,186 47,531 49,777 51,974
-------- -------- -------- -------- --------
Total checking
deposits 63,145 64,536 66,399 67,365 68,684
Savings and money
market deposits 36,594 35,517 34,875 36,100 38,412
Time deposits 40,473 38,688 34,265 29,517 25,677
-------- -------- -------- -------- --------
Average total
deposits 140,212 138,741 135,539 132,982 132,773
Loan volume 11,563 11,191 11,704 12,493 13,337
Employees at end of
period 30,437 30,028 28,948 27,609 27,341
HOME LOANS GROUP
Condensed income
statement:
Net interest income $ 262 $ 327 $ 305 $ 289 $ 294
Noninterest income 362 530 617 682 566
Inter-segment
expense 8 12 11 12 8
Noninterest expense 540 538 536 526 596
------------------------ -------- -------- -------- -------- --------
Income before
income taxes 76 307 375 433 256
Income taxes 29 116 141 163 92
------------------------ -------- -------- -------- -------- --------
Net income $ 47 $ 191 $ 234 $ 270 $ 164
======================== ======== ======== ======== ======== ========
Performance and other
data:
Efficiency ratio(1) 87.60% 63.66% 58.84% 54.84% 69.94%
Average loans $ 30,914 $ 33,415 $ 31,434 $ 27,765 $ 24,880
Average assets 56,903 54,077 51,552 49,026 44,198
Average deposits 13,674 15,402 13,940 13,107 15,121
Loan volume 41,493 48,082 44,855 38,498 41,782
Employees at end of
period 13,256 12,954 12,530 12,561 13,838
CARD SERVICES GROUP
(managed basis
presentation)
Condensed income
statement(2):
Net interest income $ 637
Provision for loan
and lease losses 358
Noninterest income 256
Noninterest expense 268
------------------------ --------------------------------------------
Income before income
taxes 267
Income taxes 101
------------------------ --------------------------------------------
Net income $ 166
======================== ============================================
Performance and other
data:
Efficiency ratio (1) 29.99%
Average loans $ 19,472
Average assets 22,198
Employees at end of
period 3,124
COMMERCIAL GROUP
Condensed income
statement:
Net interest income $ 349 $ 356 $ 346 $ 320 $ 319
Provision for loan
and lease losses 2 2 1 2 9
Noninterest income 97 156 70 156 57
Noninterest expense 180 163 157 138 155
------------------------ -------- -------- -------- -------- --------
Income before
income taxes 264 347 258 336 212
Income taxes 100 131 97 127 76
------------------------ -------- -------- -------- -------- --------
Net income $ 164 $ 216 $ 161 $ 209 $ 136
======================== ======== ======== ======== ======== ========
Performance and other
data:
Efficiency ratio(1) 40.40% 31.90% 37.61% 28.92% 41.25%
Average loans $ 51,087 $ 50,441 $ 46,180 $ 40,734 $ 39,956
Average assets 55,954 54,966 50,508 44,790 44,003
Average deposits 7,888 8,646 7,641 7,298 7,744
Loan volume 10,140 11,392 11,039 8,430 7,997
Employees at end of
period 4,182 3,923 3,747 3,484 3,385

(This table is continued
on "WM-7".)



Year Ended
-------------------
Dec. 31, Dec. 31,
2005 2004
---------- --------
RETAIL BANKING AND FINANCIAL SERVICES GROUP
Condensed income statement:
Net interest income $ 5,478 $ 4,999
Provision for loan and lease losses 165 164
Noninterest income 3,049 2,758
Inter-segment revenue 42 23
Noninterest expense 4,444 4,123
-------------------------------------------------- ---------- --------
Income before income taxes 3,960 3,493
Income taxes 1,495 1,305
-------------------------------------------------- ---------- --------
Net income $ 2,465 $ 2,188
================================================== ========== ========
Performance and other data:
Efficiency ratio(1) 51.85% 53.00%
Average loans $ 180,556 $163,328
Average assets 193,342 175,713
Average deposits:
Checking deposits:
Noninterest bearing 18,948 15,522
Interest bearing 46,400 59,562
---------- --------
Total checking deposits 65,348 75,084
Savings and money market deposits 35,772 30,651
Time deposits 35,774 24,602
---------- --------
Average total deposits 136,894 130,337
Loan volume 46,951 55,282
Employees at end of period 30,437 27,341
HOME LOANS GROUP
Condensed income statement:
Net interest income $ 1,181 $ 1,240
Noninterest income 2,192 2,304
Inter-segment expense 42 23
Noninterest expense 2,140 2,487
-------------------------------------------------- ---------- --------
Income before income taxes 1,191 1,034
Income taxes 449 386
-------------------------------------------------- ---------- --------
Net income $ 742 $ 648
================================================== ========== ========
Performance and other data:
Efficiency ratio(1) 64.23% 70.63%
Average loans $ 30,898 $ 23,591
Average assets 52,915 41,934
Average deposits 14,036 16,299
Loan volume 172,928 182,212
Employees at end of period 13,256 13,838
CARD SERVICES GROUP (managed basis presentation)
Condensed income statement(2):
Net interest income $ 637
Provision for loan and lease losses 358
Noninterest income 256
Noninterest expense 268
-------------------------------------------------- -------------------
Income before income taxes 267
Income taxes 101
-------------------------------------------------- -------------------
Net income $ 166
================================================== ===================
Performance and other data:
Efficiency ratio (1) 29.99%
Average loans $ 4,908
Average assets 5,595
Employees at end of period 3,124
COMMERCIAL GROUP
Condensed income statement:
Net interest income $ 1,371 $ 1,314
Provision for loan and lease losses 7 41
Noninterest income 478 303
Noninterest expense 637 518
-------------------------------------------------- ---------- --------
Income before income taxes 1,205 1,058
Income taxes 455 395
-------------------------------------------------- ---------- --------
Net income $ 750 $ 663
================================================== ========== ========
Performance and other data:
Efficiency ratio(1) 34.46% 32.02%
Average loans $ 47,147 $ 37,916
Average assets 51,594 42,474
Average deposits 7,872 7,108
Loan volume 41,000 28,978
Employees at end of period 4,182 3,385

(This table is continued on "WM-7".)



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

(2) Operating results for the Card Services Group are presented on a
managed basis as the Company treats securitized and sold credit
card receivables as if they were still on the balance sheet in
evaluating the overall performance of this operating segment. A
managed basis presentation excludes the impact of securitizations,
including their effect on income, the provision for credit losses
and average loans and assets. Securitization adjustments to
arrive at the reported GAAP results for the fourth quarter of 2005
were: a decrease of $409 million in net interest income; an
increase of $150 million in noninterest income; a decrease of $259
million in the provision for credit losses; a decrease of $11.01
billion in average loans; and a decrease of $9.27 billion in
average assets, all of which are eliminated within Reconciling
Adjustments.


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

(This table is
continued from "WM-6".) Quarter Ended
----------------------------------------------------------------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2005 2005 2005 2005 2004

----------------------------------------------------------------------
CORPORATE
SUPPORT/TREASURY
AND OTHER
Condensed income
statement:
Net interest
expense $ (196) $ (229) $ (230) $ (176) $ (206)
Provision for
loan and lease
losses - - - - 1
Noninterest
income
(expense) 29 (48) (36) (63) 16
Noninterest
expense 117 96 48 120 138
----------------------------------------------------------------------
Loss from
continuing
operations
before income
taxes (284) (373) (314) (359) (329)
Income tax
benefit (112) (151) (127) (147) (136)
----------------------------------------------------------------------
Loss from
continuing
operations (172) (222) (187) (212) (193)
Income from
discontinued
operations,
net of taxes - - - - -
----------------------------------------------------------------------
Net loss $ (172) $ (222) $ (187) $ (212) $ (193)
======================================================================
Performance
and other
data:
Average
loans $ 1,148 $ 1,096 $ 1,053 $ 1,049 $ 961
Average
assets 28,991 28,050 26,524 25,663 20,953
Average
deposits 35,025 25,531 26,401 21,798 18,235
Loan volume 96 67 20 94 105
Employees at
end of
period 9,799 9,309 9,152 8,834 8,015

RECONCILING
ADJUSTMENTS
Condensed income
statement(2):
Net interest
income
(expense)(3)$ (293) $ 115 $ 114 $ 113 $ 113
Provision
(reversal of
reserve) for
loan and lease
losses(4) (281) 3 (10) (23) (8)
Noninterest
income
(expense)(5) 31 (50) (135) (62) (139)
----------------------------------------------------------------------
Income (loss)
before income
taxes 19 62 (11) 74 (18)
Income taxes
(benefit)(6) (13) 29 (9) 35 44
----------------------------------------------------------------------
Net income
(loss) $ 32 $ 33 $ (2) $ 39 $ (62)
======================================================================
Performance and
other data:
Average
loans(7) $ (12,527) $ (1,550) $ (1,541) $ (1,556) $ (1,622)
Average
assets(7)(8) (10,983) (1,727) (1,765) (1,801) (1,888)

TOTAL
CONSOLIDATED
Condensed
income
statement:
Net interest
income $ 2,154 $ 1,916 $ 1,926 $ 1,890 $ 1,850
Provision for
loan and lease
losses 121 52 31 16 37
Noninterest
income 1,593 1,374 1,267 1,408 1,217
Noninterest
expense 2,278 1,925 1,828 1,839 1,938
----------------------------------------------------------------------
Income from
continuing
operations
before income
taxes 1,348 1,313 1,334 1,443 1,092
Income taxes 483 492 490 541 424
----------------------------------------------------------------------
Income from
continuing
operations 865 821 844 902 668
Income from
discontinued
operations,
net of taxes - - - - -
----------------------------------------------------------------------
Net income$ 865 $ 821 $ 844 $ 902 $ 668
======================================================================
Performance and
other data:
Efficiency
ratio(1) 60.79% 58.52% 57.24% 55.77% 63.18%
Average
loans $ 273,874 $ 262,763 $ 258,522 $ 245,627 $ 241,379
Average
assets 349,931 327,292 320,845 308,172 297,158
Average
deposits 196,799 188,320 183,521 175,185 173,873
Loan volume 63,292 70,732 67,618 59,515 63,221
Employees at
end of
period 60,798 56,214 54,377 52,488 52,579



Year Ended
----------------------------------------------------------------------
Dec. 31, Dec. 31,
2005 2004
----------------------------------------------------------------------
CORPORATE SUPPORT/TREASURY AND OTHER
Condensed income statement:
Net interest expense $ (831) $ (869)
Provision for loan and lease losses 1 4
Noninterest income (expense) (118) (145)
Noninterest expense 381 407
----------------------------------------------------------------------
Loss from continuing operations before income
taxes (1,331) (1,425)
Income tax benefit (536) (569)
----------------------------------------------------------------------
Loss from continuing operations (795) (856)
Income from discontinued operations, net of taxes - 399
----------------------------------------------------------------------
Net loss $ (795) $ (457)
======================================================================
Performance and other data:
Average loans $ 1,088 $ 889
Average assets 27,319 25,753
Average deposits 27,221 11,664
Loan volume 278 261
Employees at end of period 9,799 8,015

RECONCILING ADJUSTMENTS
Condensed income statement(2):
Net interest income (expense)(3) $ 50 $ 432
Provision (reversal of reserve) for loan and
lease losses(4) (311) -
Noninterest income (expense)(5) (215) (608)
----------------------------------------------------------------------
Income (loss) before income taxes 146 (176)
Income taxes (benefit)(6) 42 (12)
----------------------------------------------------------------------
Net income (loss) $ 104 $ (164)
======================================================================
Performance and other data:
Average loans(7) $ (4,316) $ (1,570)
Average assets(7)(8) (4,088) (1,796)

TOTAL CONSOLIDATED
Condensed income statement:
Net interest income $ 7,886 $ 7,116
Provision for loan and lease losses 220 209
Noninterest income 5,642 4,612
Noninterest expense 7,870 7,535
----------------------------------------------------------------------
Income from continuing operations before income
taxes 5,438 3,984
Income taxes 2,006 1,505
----------------------------------------------------------------------
Income from continuing operations 3,432 2,479
Income from discontinued operations, net of taxes - 399
----------------------------------------------------------------------
Net income $ 3,432 $ 2,878
======================================================================
Performance and other data:
Efficiency ratio(1) 58.17% 64.25%
Average loans $ 260,281 $ 224,154
Average assets 326,677 284,078
Average deposits 186,023 165,408
Loan volume 261,157 266,733
Employees at end of period 60,798 52,579


(1) See note 1 on preceding table.

(2) See note 2 on preceding table.

(3) Represents the difference between home loan premium amortization
recorded by the Retail Banking and Financial Services Group and
the amount recognized in the Company's Consolidated Statements of
Income. For management reporting purposes, loans that are held in
portfolio by the Retail Banking and Financial Services 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 and Financial Services Group
includes this assumed profit factor and must therefore be
eliminated as a reconciling adjustment.

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

(5) Represents the difference between gain from mortgage loans
recorded by the Home Loans Group and the gain from mortgage loans
recognized in the Company's Consolidated Statements of Income. As
the Home Loans Group holds no loans in portfolio, all loans
originated or purchased by this segment are considered to be
salable for management reporting purposes.

(6) Represents the tax effect of reconciling adjustments.

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

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

Quarter Ended Year Ended
----------------------------------------------------------------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2005 2005 2005 2004 2005 2004
----------------------------------------------------------------------
$ (200) $ (177) $ (224) $ (245) $ (266) $ (211) $ (226)
----------------------------------------------------------------------


WM-8

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

Quarter Ended
-------------------------------------------------------
Dec. 31, 2005
---------------------------
Interest
Income/
Balance Rate Expense
-------------------------------------------------------
Average Balances and
Weighted Average Interest
Rates
Assets
Interest-earning assets:
Federal funds sold and
securities purchased
under agreements to
resell $ 2,380 4.01% $ 24
Trading assets 10,330 7.13 185
Available-for-sale
securities(1):
Mortgage-backed
securities 19,135 5.25 252
Investment securities 4,316 4.75 51
Loans held for sale(2) 46,306 5.79 673
Loans held in
portfolio(2):
Loans secured by real
estate:
Home 111,126 5.23 1,452 (3)
Specialty mortgage
finance(4) 22,415 5.40 302
---------------------------- -------- ------
Total home
loans 133,541 5.25 1,754
Home equity loans
and lines of
credit 50,464 6.47 822
Home
construction(5) 2,008 6.35 32
Multi-family 25,312 5.67 359
Other real estate 4,953 6.57 82
---------------------------- -------- ------
Total loans
secured by
real estate 216,278 5.63 3,049
Consumer:
Credit card 8,259 11.96 249
Other 654 10.79 18
Commercial business 2,377 5.25 31
---------------------------- -------- ------
Total loans
held in
portfolio 227,568 5.87 3,347
Other(6) 4,496 4.28 49
---------------------------- -------- ------
Total
interest-
earning
assets 314,531 5.81 4,581
Noninterest-earning assets:
Mortgage servicing rights 7,680
Goodwill 8,247
Other assets 19,473
---------------------------- --------
Total assets $349,931
============================ ========
Liabilities
Interest-bearing
liabilities:
Deposits:
Interest-bearing
checking deposits $ 43,302 2.23 243
Savings and money
market deposits 43,831 2.09 231
Time deposits 74,300 3.77 710
---------------------------- -------- ------
Total
interest-
bearing
deposits 161,433 2.90 1,184
Federal funds purchased
and commercial paper 8,236 4.07 85
Securities sold under
agreements to repurchase 15,330 4.09 160
Advances from Federal
Home Loan Banks 70,113 4.06 726
Other 24,715 4.38 272
---------------------------- -------- ------
Total
interest-
bearing
liabilities 279,827 3.42 2,427
Noninterest-bearing sources:
Noninterest-bearing
deposits 35,366
Other liabilities 7,030
Stockholders' equity 27,708
---------------------------- --------
Total liabilities
and stockholders'
equity $349,931
============================ ========
Net interest spread and
net interest income 2.39 $2,154
======
Impact of noninterest-
bearing sources 0.38
Net interest margin 2.77


Quarter Ended
-------------------------------------------------------
Sept. 30, 2005
---------------------------
Interest
Income/
Balance Rate Expense
-------------------------------------------------------
Average Balances and
Weighted Average Interest
Rates
Assets
Interest-earning assets:
Federal funds sold and
securities purchased
under agreements to
resell $ 2,891 3.52% $ 26
Trading assets 6,532 6.97 114
Available-for-sale
securities(1):
Mortgage-backed
securities 15,666 4.72 185
Investment securities 4,321 4.94 53
Loans held for sale(2) 49,747 5.30 661
Loans held in
portfolio(2):
Loans secured by real
estate:
Home 108,783 4.97 1,353 (3)
Specialty mortgage
finance(4) 20,298 5.07 257
---------------------------- -------- ------
Total home
loans 129,081 4.99 1,610
Home equity loans
and lines of
credit 49,237 6.08 753
Home
construction(5) 2,001 6.31 32
Multi-family 24,550 5.38 330
Other real estate 4,904 7.12 88
---------------------------- -------- ------
Total loans
secured by
real estate 209,773 5.35 2,813
Consumer:
Credit card - - -
Other 686 10.67 18
Commercial business 2,557 4.74 31
---------------------------- -------- ------
Total loans
held in
portfolio 213,016 5.36 2,862
Other(6) 4,395 3.51 39
---------------------------- -------- ------
Total
interest-
earning
assets 296,568 5.30 3,940
Noninterest-earning assets:
Mortgage servicing rights 6,408
Goodwill 6,196
Other assets 18,120
---------------------------- --------
Total assets $327,292
============================ ========
Liabilities
Interest-bearing
liabilities:
Deposits:
Interest-bearing
checking deposits $ 45,305 2.12 242
Savings and money
market deposits 42,944 1.92 208
Time deposits 63,338 3.41 546
---------------------------- -------- ------
Total
interest-
bearing
deposits 151,587 2.60 996
Federal funds purchased
and commercial paper 6,719 3.60 61
Securities sold under
agreements to repurchase 13,159 3.65 123
Advances from Federal
Home Loan Banks 68,597 3.54 620
Other 21,734 4.12 224
---------------------------- -------- ------
Total
interest-
bearing
liabilities 261,796 3.05 2,024
Noninterest-bearing sources:
Noninterest-bearing
deposits 36,733
Other liabilities 6,351
Stockholders' equity 22,412
---------------------------- --------
Total liabilities
and stockholders'
equity $327,292
============================ ========
Net interest spread and
net interest income 2.25 $1,916
======
Impact of noninterest-
bearing sources 0.36
Net interest margin 2.61


Quarter Ended
------------------------------------------------------------------
Dec. 31, 2004
-------------------------
Interest
Income/
Balance Rate Expense
-------------------------
Average Balances and
Weighted Average Interest
Rates
Assets
Interest-earning assets:
Federal funds sold and
securities purchased
under agreements to resell $ 560 1.92% $ 3
Trading assets 4,540 5.80 66
Available-for-sale
securities(1):
Mortgage-backed
securities 11,398 3.85 110
Investment securities 4,387 4.27 47
Loans held for sale(2) 33,083 4.74 393
Loans held in
portfolio(2):
Loans secured by real
estate:
Home 113,352 4.30 1,218
Specialty mortgage
finance(4) 17,389 4.87 212
---------------------------- -------- -------
Total home
loans 130,741 4.37 1,430
Home equity loans
and lines of
credit 42,034 4.93 520
Home
construction(5) 2,434 5.87 36
Multi-family 21,922 4.92 270
Other real estate 6,133 6.03 93
---------------------------- -------- -------
Total loans
secured by
real estate 203,264 4.62 2,349
Consumer:
Credit card - - -
Other 813 10.20 21
Commercial business 4,219 4.78 51
---------------------------- -------- -------
Total loans
held in
portfolio 208,296 4.64 2,421
Other(6) 4,111 2.60 26
---------------------------- -------- -------
Total
interest-
earning
assets 266,375 4.59 3,066
Noninterest-earning assets:
Mortgage servicing rights 5,928
Goodwill 6,196
Other assets 18,659
---------------------------- --------
Total assets $297,158
============================ ========
Liabilities
Interest-bearing
liabilities:
Deposits:
Interest-bearing
checking deposits $ 52,171 1.32 173
Savings and money
market deposits 44,017 1.36 151
Time deposits 43,750 2.53 280
---------------------------- -------- -------
Total
interest-
bearing
deposits 139,938 1.71 604
Federal funds purchased
and commercial paper 4,828 1.98 24
Securities sold under
agreements to repurchase 13,528 2.09 72
Advances from Federal
Home Loan Banks 63,053 2.34 376
Other 15,164 3.70 140
---------------------------- -------- -------
Total
interest-
bearing
liabilities 236,511 2.03 1,216
Noninterest-bearing sources:
Noninterest-bearing
deposits 33,935
Other liabilities 5,687
Stockholders' equity 21,025
---------------------------- --------
Total liabilities
and stockholders'
equity $297,158
============================ ========
Net interest spread and
net interest income 2.56 $ 1,850
=======
Impact of noninterest-
bearing sources 0.23
Net interest margin 2.79

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

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

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

(3) For the three months ended December 31, 2005 and September 30,
2005, deferred interest income resulting from negative
amortization within the Option ARM portfolio totaled $107 million
and $72 million.

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

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

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



WM-9

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

Year Ended
-------------------------------------------------
Dec. 31, 2005
----------------------------
Interest
Income/
Balance Rate Expense
--------------------------------------------------
Average Balances and
Weighted Average
Interest Rates
Assets
Interest-earning
assets:
Federal funds sold
and securities
purchased under
agreements to
resell $ 2,154 3.42 % $ 74
Trading assets 7,217 6.50 469
Available-for-sale
securities(1):
Mortgage-backed
securities 16,347 4.80 784
Investment
securities 4,506 4.74 214
Loans held for
sale(2) 44,847 5.31 2,382
Loans held in
portfolio(2):
Loans secured by
real estate:
Home 110,326 4.90 5,403 (3)
Specialty
mortgage
finance(4) 20,555 5.19 1,066
---------------------- -------- -------
Total home
loans 130,881 4.94 6,469
Home equity loans
and lines of
credit 47,915 5.93 2,841
Home
construction(5) 2,074 6.22 129
Multi-family 24,070 5.31 1,279
Other real estate 5,091 6.56 334
---------------------- -------- -------
Total loans
secured by
real estate 210,031 5.26 11,052
Consumer:
Credit card 2,082 11.96 249
Other 707 10.66 75
Commercial
business 2,614 5.00 131
---------------------- -------- -------
Total loans
held in
portfolio 215,434 5.34 11,507
Other(6) 4,367 3.63 158
---------------------- -------- -------
Total
interest-
earning
assets 294,872 5.29 15,588
Noninterest-earning
assets:
Mortgage servicing
rights 6,597
Goodwill 6,712
Other assets 18,496
---------------------- --------
Total assets $326,677
====================== ========
Liabilities
Interest-bearing
liabilities:
Deposits:
Interest-bearing
checking
deposits $ 46,524 1.95 906
Savings and
money market
deposits 42,555 1.76 750
Time deposits 62,175 3.33 2,072
---------------------- -------- -------
Total
interest-
bearing
deposits 151,254 2.46 3,728
Federal funds
purchased and
commercial paper 5,314 3.56 190
Securities sold
under agreements
to repurchase 15,365 3.40 523
Advances from
Federal Home Loan
Banks 68,713 3.46 2,377
Other 21,603 4.09 884
---------------------- -------- -------
Total
interest-
bearing
liabilities 262,249 2.94 7,702
Noninterest-bearing
sources:
Noninterest-bearing
deposits 34,769
Other liabilities 6,192
Stockholders'
equity 23,467
---------------------- --------
Total
liabilities
and
stockholders'
equity $326,677
====================== ========
Net interest spread
and net interest
income 2.35 $ 7,886
=======
Impact of
noninterest-
bearing sources 0.32
Net interest margin 2.67


Year Ended
-----------------------------------------------
Dec. 31, 2004
-------------------------
Interest
Income/
Balance Rate Expense
------------------------------------------------
Average Balances and
Weighted Average
Interest Rates
Assets
Interest-earning
assets:
Federal funds sold
and securities
purchased under
agreements to
resell $ 884 1.42 % $ 13
Trading assets 2,368 6.39 151
Available-for-sale
securities(1):
Mortgage-backed
securities 10,255 3.99 409
Investment
securities 10,732 3.30 355
Loans held for
sale(2) 29,721 4.95 1,472
Loans held in
portfolio(2):
Loans secured by
real estate:
Home 107,518 4.21 4,529
Specialty
mortgage
finance(4) 15,767 4.84 763
---------------------- -------- -------
Total home
loans 123,285 4.29 5,292
Home equity loans
and lines of
credit 35,859 4.69 1,683
Home
construction(5) 2,489 5.50 137
Multi-family 21,090 4.96 1,046
Other real estate 6,396 5.94 380
---------------------- -------- -------
Total loans
secured by
real estate 189,119 4.51 8,538
Consumer:
Credit card - - -
Other 899 10.11 91
Commercial
business 4,415 4.43 196
---------------------- -------- -------
Total loans
held in
portfolio 194,433 4.54 8,825
Other(6) 4,108 3.05 125
---------------------- -------- -------
Total
interest-
earning
assets 252,501 4.50 11,350
Noninterest-earning
assets:
Mortgage servicing
rights 6,406
Goodwill 6,196
Other assets 18,975
---------------------- --------
Total assets $284,078
====================== ========
Liabilities
Interest-bearing
liabilities:
Deposits:
Interest-bearing
checking
deposits $ 59,826 1.28 766
Savings and
money market
deposits 35,927 1.11 399
Time deposits 35,917 2.44 878
---------------------- -------- -------
Total
interest-
bearing
deposits 131,670 1.55 2,043
Federal funds
purchased and
commercial paper 3,522 1.50 53
Securities sold
under agreements
to repurchase 16,660 2.26 377
Advances from
Federal Home Loan
Banks 58,622 2.16 1,268
Other 13,724 3.59 493
---------------------- -------- -------
Total
interest-
bearing
liabilities 224,198 1.89 4,234
Noninterest-bearing
sources:
Noninterest-bearing
deposits 33,738
Other liabilities 5,614
Stockholders'
equity 20,528
---------------------- --------
Total
liabilities
and
stockholders'
equity $284,078
====================== ========
Net interest spread
and net interest
income 2.61 $ 7,116
=======
Impact of
noninterest-
bearing sources 0.21
Net interest margin 2.82


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

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

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

(3) For the year ended December 31, 2005, deferred interest income
resulting from negative amortization within the Option ARM
portfolio totaled $234 million.

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

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

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


WM-10

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

Change from
September 30, 2005
to Dec. Sept.
December 31, 30,
31, 2005 2005 2005
----------------------------------------------------------------------
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing $130 $20,752 $20,622
Interest bearing (2,041) 42,253 44,294
----------------------------------------------------------------------
Total checking deposits (1,911) 63,005 64,916
Savings and money market deposits 1,085 36,664 35,579
Time deposits(1) (117) 40,359 40,476
----------------------------------------------------------------------
Total retail deposits (943) 140,028 140,971
Commercial business deposits 1,701 11,459 9,758
Wholesale deposits 5,383 29,917 24,534
Custodial and escrow deposits(2) (3,386) 11,763 15,149
----------------------------------------------------------------------
Total deposits $2,755 $193,167 $190,412
======================================================================

June 30, Mar. 31, Dec. 31,
2005 2005 2004
----------------------------------------------------------------------
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing $19,093 $18,599 $17,463
Interest bearing 46,031 48,988 51,099
----------------------------------------------------------------------
Total checking deposits 65,124 67,587 68,562
Savings and money market deposits 34,514 35,184 36,836
Time deposits(1) 36,162 31,819 27,268
----------------------------------------------------------------------
Total retail deposits 135,800 134,590 132,666
Commercial business deposits 9,648 8,447 7,611
Wholesale deposits 23,638 24,969 18,448
Custodial and escrow deposits(2) 15,231 15,625 14,933
----------------------------------------------------------------------
Total deposits $184,317 $183,631 $173,658
======================================================================

(1) Weighted average remaining maturity of time deposits was 11 months
at December 31, 2005, 12 months at September 30, 2005, 13 months
at June 30, 2005, 14 months at March 31, 2005, and 16 months at
December 31, 2004.

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


Dec. 31, Sept. 30, June 30,
2005 2005 2005
----------------------------------------------------------------------
Retail Deposit Accounts(1)
Checking 9,883,507 9,680,317 9,427,222
Money market and savings 5,694,102 5,560,060 5,395,091
----------------------------------------------------------------------
Total transaction
accounts, end of
period(2) 15,577,609 15,240,377 14,822,313
======================================================================

Net checking account changes 203,190 253,095 244,028
Net total transaction account
changes 337,232 418,064 388,212



Mar. 31, Dec. 31,
2005 2004
----------------------------------------------------------------------
Retail Deposit Accounts(1)
Checking 9,183,194 8,981,060
Money market and savings 5,250,907 5,110,674
----------------------------------------------------------------------
Total transaction accounts, end of
period(2) 14,434,101 14,091,734
======================================================================

Net checking account changes 202,134 106,237
Net total transaction account changes 342,367 186,027


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

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


Dec. Sept. June Mar. Dec.
31, 30, 30, 31, 31,
2005 2005 2005 2005 2004
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
period 2,051 1,997 1,968 1,939 1,872
Net stores opened
during the quarter 89(1) 54 29 29 67
----------------------------------------------------------------------
Stores, end of period 2,140 2,051 1,997 1,968 1,939
======================================================================

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

Dec. Sept. June Mar. Dec.
31, 30, 30, 31, 31,
2005 2005 2005 2005 2004
----------------------------------------------------------------------
Assets Under Management $25,310 $24,546 $23,348 $22,454 $22,196
======================================================================


WM-11

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

Quarter Ended
----------------------------------------------------------------------
Dec. Sept. June Mar. Dec.
31, 30, 30, 31, 31,
2005 2005 2005 2005 2004
----------------------------------------------------------------------
Loan Volume
Home loans:
Adjustable rate $20,266 $26,607 $25,293 $22,947 $26,141
Fixed rate 20,494 21,122 19,355 17,147 15,448
Specialty mortgage
finance(1) 9,669 8,413 8,753 7,656 9,362
----------------------------------------------------------------------
Total home loan
volume 50,429 56,142 53,401 47,750 50,951
Home equity loans and
lines of credit 9,118 10,828 10,888 8,887 9,307
Home construction
loans(2) 479 370 258 245 293
Multi-family 2,595 2,580 2,459 2,121 2,240
Other real estate 419 465 371 345 257
----------------------------------------------------------------------
Total loans
secured by real
estate 63,040 70,385 67,377 59,348 63,048
Consumer(3) 79 182 82 43 77
Commercial business 173 165 159 124 96
----------------------------------------------------------------------
Total loan volume $63,292 $70,732 $67,618 $59,515 $63,221
======================================================================
Loan Volume by Channel
Retail $27,676 $32,614 $30,565 $25,569 $28,766
Wholesale 17,190 20,000 20,323 16,716 18,441
Purchased/correspondent 18,426 18,118 16,730 17,230 16,014
----------------------------------------------------------------------
Total loan volume
by channel $63,292 $70,732 $67,618 $59,515 $63,221
======================================================================
Refinancing Activity(4)
Home loan refinancing $27,435 $29,084 $27,583 $28,641 $30,752
Home equity loans and
lines of credit and
consumer 219 245 475 392 336
Home construction loans 12 17 13 10 13
Multi-family and other
real estate 831 738 700 660 565
----------------------------------------------------------------------
Total refinancing $28,497 $30,084 $28,771 $29,703 $31,666
======================================================================
Home Loan Volume
Short-term adjustable-
rate loans(5):
Option ARMs $11,699 $16,353 $19,564 $15,644 $18,898
Other ARMs 1,222 1,237 367 974 972
----------------------------------------------------------------------
Total short-term
adjustable-rate
loans 12,921 17,590 19,931 16,618 19,870
Medium-term adjustable-
rate loans(6) 15,447 16,454 13,388 13,409 14,890
Fixed-rate loans 22,061 22,098 20,082 17,723 16,191
----------------------------------------------------------------------
Total home loan
volume $50,429 $56,142 $53,401 $47,750 $50,951
======================================================================

Note: Pursuant to regulatory guidance, buyouts of delinquent
mortgages contained within Government National Mortgage Association
(GNMA) loan servicing pools must be classified as loans on the
balance sheet. Accordingly, total home loan volume includes GNMA
pool buy-out volume of $304 million, $466 million, $477 million, $563
million and $785 million for the quarters ended December 31, 2005,
September 30, 2005, June 30, 2005, March 31, 2005 and December 31,
2004.
---------------------------
(1) Represents purchased subprime loan portfolios and mortgages
originated by Long Beach Mortgage Company.

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

(3) Excludes credit card loan volume.

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

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

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


WM-12

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

Year Ended
----------------------------------------------------------------------
Dec. 31, Dec. 31,
2005 2004
----------------------------------------------------------------------
Loan Volume
Home loans:
Adjustable rate $95,114 $103,305
Fixed rate 78,118 77,723
Specialty mortgage finance(1) 34,490 31,334
----------------------------------------------------------------------
Total home loan volume 207,722 212,362
Home equity loans and lines of credit 39,721 39,822
Home construction loans(2) 1,352 2,382
Multi-family 9,755 8,161
Other real estate 1,599 1,740
----------------------------------------------------------------------
Total loans secured by real estate 260,149 264,467
Consumer(3) 387 336
Commercial business 621 1,930
----------------------------------------------------------------------
Total loan volume $261,157 $266,733
======================================================================
Loan Volume by Channel
Retail $116,425 $124,897
Wholesale 74,229 69,474
Purchased/correspondent 70,503 72,362
----------------------------------------------------------------------
Total loan volume by channel $261,157 $266,733
======================================================================
Refinancing Activity(4)
Home loan refinancing $112,743 $128,020
Home equity loans and lines of credit and
consumer 1,331 2,950
Home construction loans 53 47
Multi-family and other real estate 2,928 2,644
----------------------------------------------------------------------
Total refinancing $117,055 $133,661
======================================================================
Home Loan Volume
Short-term adjustable-rate loans(5):
Option ARMs $63,260 $67,485
Other ARMs 3,800 2,671
----------------------------------------------------------------------
Total short-term adjustable-rate loans 67,060 70,156
Medium-term adjustable-rate loans(6) 58,698 58,107
Fixed-rate loans 81,964 84,099
----------------------------------------------------------------------
Total home loan volume $207,722 $212,362
======================================================================

Note: Pursuant to regulatory guidance, buyouts of delinquent
mortgages contained within Government National Mortgage Association
(GNMA) loan servicing pools must be classified as loans on the
balance sheet. Accordingly, total home loan volume includes GNMA pool
buy-out volume of $1.81 billion and $3.42 billion for the years ended
December 31, 2005 and December 31, 2004.

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

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

(3) Excludes credit card loan volume.

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

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

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


WM-13

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

Change
from
September
30, 2005
to Dec. Sept.
December 31, 30,
31, 2005 2005 2005
----------------------------------------------------------------------
Loans by Property Type
Loans held in portfolio:
Loans secured by real estate:
Home:
Short-term adjustable-rate loans(1):
Option ARMs $2,328 $70,191 (2) $67,863
Other ARMs 1,710 14,666 12,956
----------------------------------------------------------------------
Total short-term adjustable-
rate loans 4,038 84,857 80,819
Medium-term adjustable-rate
loans(3) (2,099) 41,511 43,610
Fixed-rate loans 306 8,922 8,616
----------------------------------------------------------------------
Total home loans(4) 2,245 135,290 133,045
Home equity loans and lines of
credit 785 50,851 50,066
Home construction(5) 18 2,037 2,019
Multi-family 587 25,601 25,014
Other real estate 106 5,035 4,929
----------------------------------------------------------------------
Total loans secured by
real estate 3,741 218,814 215,073
Consumer:
Credit card 8,043 8,043 -
Other (31) 638 669
Commercial business (315) 2,137 2,452
----------------------------------------------------------------------
Total loans held in
portfolio(6) 11,438 229,632 218,194
Less: allowance for loan and lease
losses (431) (1,695) (1,264)
----------------------------------------------------------------------
Total net loans held in
portfolio 11,007 227,937 216,930
Loans held for sale(7) (14,436) 33,582 48,018
----------------------------------------------------------------------
Total net loans $(3,429)$261,519 $264,948
======================================================================


June Mar. Dec.
30, 31, 31,
2005 2005 2004
----------------------------------------------------------------------
Loans by Property Type
Loans held in portfolio:
Loans secured by real estate:
Home:
Short-term adjustable-rate loans(1):
Option ARMs $66,533 $67,938 $66,310
Other ARMs 10,903 10,462 9,065
----------------------------------------------------------------------
Total short-term adjustable-rate
loans 77,436 78,400 75,375
Medium-term adjustable-rate loans(3) 43,499 46,789 45,197
Fixed-rate loans 8,638 8,794 8,562
----------------------------------------------------------------------
Total home loans(4) 129,573 133,983 129,134
Home equity loans and lines of
credit 48,449 45,849 43,650
Home construction(5) 2,037 2,170 2,344
Multi-family 24,240 23,247 22,282
Other real estate 4,915 5,311 5,664
----------------------------------------------------------------------
Total loans secured by real
estate 209,214 210,560 203,074
Consumer:
Credit card - - -
Other 703 747 792
Commercial business 2,820 2,807 3,205
----------------------------------------------------------------------
Total loans held in
portfolio(6) 212,737 214,114 207,071
Less: allowance for loan and lease
losses (1,243) (1,280) (1,301)
----------------------------------------------------------------------
Total net loans held in
portfolio 211,494 212,834 205,770
Loans held for sale(7) 51,122 41,197 42,743
----------------------------------------------------------------------
Total net loans $262,616 $254,031 $248,513
======================================================================

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

(2) At December 31, 2005, the total amount by which the unpaid
principal balance ("UPB") of Option ARM loans exceeded their
original principal amount was $157 million.

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

(4) Includes specialty mortgage finance loans, which are composed of
purchased subprime home loans and subprime home loans originated
by Long Beach Mortgage Company and held in its investment
portfolio. Specialty mortgage finance loans were $21.15 billion,
$21.16 billion, $20.17 billion, $21.54 billion and $19.18 billion
at December 31, 2005, September 30, 2005, June 30, 2005, March 31,
2005 and December 31, 2004.

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

(6) Includes net unamortized deferred loan origination costs of $1.53
billion, $1.47 billion, $1.39 billion, $1.36 billion and $1.25
billion at December 31, 2005, September 30, 2005, June 30, 2005,
March 31, 2005 and December 31, 2004.

(7) Fair value of loans held for sale was $33.71 billion, $48.14
billion, $51.39 billion, $41.38 billion and $43.02 billion as of
December 31, 2005, September 30, 2005, June 30, 2005, March 31,
2005 and December 31, 2004.


WM-14

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

Change
from
Sept. 30, Weighted
2005 Dec. Average
to Dec. 31, Coupon
31, 2005 2005 Rate
----------------------------------------------------------------------
Selected Loans Secured by Real Estate and
MBS
Home loans held in portfolio:
Short-term adjustable-rate
loans(1):
Option ARMs $2,328 $70,191 5.87%
Other ARMs 1,710 14,666 6.44
----------------------------------------------------------------------
Total short-term
adjustable-rate loans 4,038 84,857 5.97
Medium-term adjustable-rate
loans(2) (2,099) 41,511 5.58
Fixed-rate loans 306 8,922 6.56
----------------------------------------------------------------------
Total home loans held in
portfolio 2,245 135,290 5.89
Home equity loans and lines of credit:
Short-term (Prime-based or
treasury-based)(1) (216) 37,112 7.26
Fixed-rate loans 1,001 13,739 6.56
----------------------------------------------------------------------
Total home equity loans
and lines of credit 785 50,851 7.07
Multi-family loans held in portfolio:
Short-term adjustable-rate
loans(1):
Option ARMs 80 9,529 5.74
Other ARMs (45) 6,406 5.92
----------------------------------------------------------------------
Total short-term
adjustable-rate loans 35 15,935 5.81
Medium-term adjustable-rate
loans(2) 593 8,118 5.29
Fixed-rate loans (41) 1,548 6.59
----------------------------------------------------------------------
Total multi-family loans
held in portfolio 587 25,601 5.69
----------------------------------------------------------------------
Total selected loans held
in portfolio secured by
real estate(3) 3,617 211,742 6.15
Loans held for sale(4) (14,460) 33,428 6.15
----------------------------------------------------------------------
Total selected loans
secured by real estate (10,843) 245,170 6.15
MBS(5):
Short-term adjustable-rate MBS(1) (2,324) 7,965 4.88
Medium-term adjustable-rate MBS(2) 1,848 4,504 4.97
Fixed-rate MBS 3,963 8,179 5.11
----------------------------------------------------------------------
Total MBS(6) 3,487 20,648 4.99
----------------------------------------------------------------------
Total selected loans
secured by real estate
and MBS $(7,356) $265,818 6.06
======================================================================

Weighted Weighted
Sept. Average Dec. Average
30, Coupon 31, Coupon
2005 Rate 2004 Rate
----------------------------------------------------------------------
Selected Loans Secured by Real
Estate and MBS
Home loans held in portfolio:
Short-term adjustable-rate
loans(1):
Option ARMs $67,863 5.44% $66,310 4.26%
Other ARMs 12,956 6.27 9,065 6.57
----------------------------------------------------------------------
Total short-term
adjustable-rate
loans 80,819 5.57 75,375 4.55
Medium-term adjustable-rate
loans(2) 43,610 5.58 45,197 5.43
Fixed-rate loans 8,616 6.60 8,562 6.75
----------------------------------------------------------------------
Total home loans
held in portfolio 133,045 5.64 129,134 5.01
Home equity loans and lines of
credit:
Short-term (Prime-based or
treasury-based)(1) 37,328 6.76 33,826 5.17
Fixed-rate loans 12,738 6.45 9,824 6.34
----------------------------------------------------------------------
Total home equity
loans and lines of
credit 50,066 6.68 43,650 5.43
Multi-family loans held in
portfolio:
Short-term adjustable-rate
loans(1):
Option ARMs 9,449 5.30 7,645 4.27
Other ARMs 6,451 5.49 5,617 4.51
----------------------------------------------------------------------
Total short-term
adjustable-rate
loans 15,900 5.38 13,262 4.37
Medium-term adjustable-rate
loans(2) 7,525 5.26 7,381 5.30
Fixed-rate loans 1,589 6.68 1,639 6.88
----------------------------------------------------------------------
Total multi-family
loans held in
portfolio 25,014 5.42 22,282 4.86
----------------------------------------------------------------------
Total selected loans
held in portfolio
secured by real
estate(3) 208,125 5.87 195,066 5.09
Loans held for sale(4) 47,888 5.34 42,599 4.70
----------------------------------------------------------------------
Total selected loans
secured by real
estate 256,013 5.77 237,665 5.02
MBS(5):
Short-term adjustable-rate
MBS(1) 10,289 4.58 9,924 3.49
Medium-term adjustable-rate
MBS(2) 2,656 5.02 702 4.25
Fixed-rate MBS 4,216 5.25 3,928 5.32
----------------------------------------------------------------------
Total MBS(6) 17,161 4.81 14,554 4.02
----------------------------------------------------------------------
Total selected loans
secured by real
estate and MBS $273,174 5.71 $252,219 4.96
======================================================================

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

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

(3) At December 31, 2005, September 30, 2005 and December 31, 2004,
the adjustable-rate loans with lifetime caps were $184.87 billion,
$182.35 billion and $171.44 billion with a lifetime weighted
average cap rate of 12.25%, 12.30% and 12.31%.

(4) Excludes credit card and student loans.

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

(6) At December 31, 2005, September 30, 2005 and December 31, 2004,
the adjustable-rate MBS with lifetime caps were $12.46 billion,
$12.74 billion and $10.58 billion with a lifetime weighted average
cap rate of 10.31%, 10.19% and 10.23%.


Sept. 30, Dec. 31,
2005 2004
to Dec. 31, to Dec. 31,
2005 2005
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
Balance, beginning of period $48,018 $42,743
Mortgage loans originated, purchased
and transferred from held in portfolio 39,525 167,710
Mortgage loans transferred to held in
portfolio (2,324) (8,690)
Mortgage loans sold and other (52,162) (168,691)
Net change in consumer loans held for
sale 525 510
----------------------------------------------------------------------
Balance, end of period $33,582 $33,582
======================================================================

Rollforward of Home Loans Held in Portfolio
Balance, beginning of period $133,045 $129,134
Loans originated, purchased and
transferred from held for sale 14,743 57,298
Loan payments, transferred to held for
sale and other (12,498) (51,142)
----------------------------------------------------------------------
Balance, end of period $135,290 $135,290
======================================================================


WM-15

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

Quarter Ended
----------------------------------------------------------------------
Detail of Revenue from Sales and Servicing of Home Dec. Sept. June
Mortgage Loans 31, 30, 30,
2005 2005 2005
----------------------------------------------------------------------
Gain from home mortgage loans and originated
mortgage-backed securities, net of hedging
and risk management instruments:
Gain from home mortgage loans and originated
mortgage-backed securities $213 $206 $250
Revaluation gain (loss) from derivatives 25 73 (79)
----------------------------------------------------------------------
Gain from home mortgage loans and originated
mortgage-backed securities, net of hedging
and risk management instruments 238 279 171
----------------------------------------------------------------------
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue, net(1) 547 538 527
Amortization of MSR (482) (555) (564)
MSR valuation adjustments(2) 91 412 (77)
Revaluation gain from derivatives 27 40 61
----------------------------------------------------------------------
Home mortgage loan servicing revenue
(expense), net of hedging and
derivative risk management instruments 183 435 (53)
----------------------------------------------------------------------
Total revenue from sales and servicing of
home mortgage loans 421 714 118
----------------------------------------------------------------------
Impact of other MSR risk management instruments:
Revaluation gain (loss) from certain trading
securities (157) (217) 259
Gain (loss) from certain available-for-sale
securities - - 26
----------------------------------------------------------------------
Total impact of other MSR risk management
instruments (157) (217) 285
----------------------------------------------------------------------
Total revenue from sales and servicing of
home mortgage loans and all
MSR risk management instruments $264 $497 $403
======================================================================

Detail of Revenue from Sales and Servicing of Mar. Dec.
Home Mortgage Loans 31, 31,
2005 2004
----------------------------------------------------------------------
Gain from home mortgage loans and originated mortgage-
backed securities, net of hedging and risk management
instruments:

Gain from home mortgage loans and originated mortgage-
backed securities $181 $157
Revaluation gain (loss) from derivatives 80 25
----------------------------------------------------------------------
Gain from home mortgage loans and originated
mortgage-backed securities, net of hedging
and risk management instruments 261 182
----------------------------------------------------------------------
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue, net(1) 512 479
Amortization of MSR (570)(636)
MSR valuation adjustments(2) 539 257
Revaluation gain from derivatives 35 70
----------------------------------------------------------------------
Home mortgage loan servicing revenue (expense), net
of hedging and derivative risk management
instruments 516 170
----------------------------------------------------------------------
Total revenue from sales and servicing of home
mortgage loans 777 352
----------------------------------------------------------------------
Impact of other MSR risk management instruments:
Revaluation gain (loss) from certain trading securities (109) 36
Gain (loss) from certain available-for-sale securities (44) (4)
----------------------------------------------------------------------
Total impact of other MSR risk management
instruments (153) 32
----------------------------------------------------------------------
Total revenue from sales and servicing of home
mortgage loans and all MSR risk management
instruments $624 $384
======================================================================


Year Ended
----------------------------------------------------------------------
Detail of Revenue from Sales and Servicing of Home Dec. Dec.
Mortgage Loans 31, 31,
2005 2004
----------------------------------------------------------------------
Gain from home mortgage loans and originated mortgage-
backed securities, net of hedging and risk management
instruments:
Gain from home mortgage loans and originated
mortgage-backed securities $850 $651
Revaluation gain from derivatives 99 80
----------------------------------------------------------------------
Gain from home mortgage loans and originated
mortgage-backed securities, net of hedging and
risk management instruments 949 731
----------------------------------------------------------------------
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue, net(1) 2,123 1,943
Amortization of MSR (2,170)(2,521)
MSR valuation adjustments(2) 965 (235)
Revaluation gain from derivatives 163 1,469
----------------------------------------------------------------------
Home mortgage loan servicing revenue, net of
hedging and derivative risk management
instruments 1,081 656
----------------------------------------------------------------------
Total revenue from sales and servicing of home
mortgage loans 2,030 1,387
----------------------------------------------------------------------
Impact of other MSR risk management instruments:
Revaluation gain (loss) from certain trading
securities (223) 81
Gain (loss) from certain available-for-sale
securities (18) 1
----------------------------------------------------------------------
Total impact of other MSR risk management
instruments (241) 82
----------------------------------------------------------------------
Total revenue from sales and servicing of
home mortgage loans and all
MSR risk management instruments $1,789 $1,469
======================================================================

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

(2) Net of fair value hedge ineffectiveness as well as any
impairment/reversal recognized on MSR that results from the
application of the lower of cost or market value accounting
methodology.


WM-16

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


Quarter Ended
----------------------------------------------------------------------
Dec. Sept. June
31, 30, 30,
2005 2005 2005
----------------------------------------------------------------------
MSR Risk Management and Amortization:
Statement No. 133 MSR accounting
valuation adjustments $ 419 $ 849 $ (813)
Amortization of MSR (482) (555) (564)
(Impairment) reversal 353 413 (250)
----------------------------------------------------------------------
Net change in MSR valuation 290 707 (1,627)
Gain (loss) on MSR hedging and risk
management instruments:
Statement No. 133 fair value hedging
adjustments (681) (850) 986
Revaluation gain from derivatives 27 40 61
Revaluation gain (loss) from certain
trading securities (157) (217) 259
Gain (loss) from certain available-for-
sale securities - - 26
----------------------------------------------------------------------
Total gain (loss) on MSR hedging
and risk management instruments (811) (1,027) 1,332
----------------------------------------------------------------------
Total MSR risk management and
amortization $(521) $ (320) $ (295)
======================================================================



Mar. Dec.
31, 31,
2005 2004
----------------------------------------------------------------------
MSR Risk Management and Amortization:
Statement No. 133 MSR accounting valuation
adjustments $ 545 $(123)
Amortization of MSR (570) (636)
(Impairment) reversal 427 179
----------------------------------------------------------------------
Net change in MSR valuation 402 (580)
Gain (loss) on MSR hedging and risk management
instruments:
Statement No. 133 fair value hedging adjustments (433) 201
Revaluation gain from derivatives 35 70
Revaluation gain (loss) from certain trading
securities (109) 36
Gain (loss) from certain available-for-sale
securities (44) (4)
----------------------------------------------------------------------
Total gain (loss) on MSR hedging and risk
management instruments (551) 303
----------------------------------------------------------------------
Total MSR risk management and amortization $(149) $(277)
======================================================================


Year Ended
----------------------------------------------------------------------
Dec. Dec.
31, 31,
2005 2004
----------------------------------------------------------------------
MSR Risk Management and Amortization:
Statement No. 133 MSR accounting valuation
adjustments $ 999 $ 699
Amortization of MSR (2,170) (2,521)
(Impairment) reversal 943 (466)
----------------------------------------------------------------------
Net change in MSR valuation (228) (2,288)
Gain (loss) on MSR hedging and risk management
instruments:
Statement No. 133 fair value hedging adjustments (977) (468)
Revaluation gain from derivatives 163 1,469
Revaluation gain (loss) from certain trading
securities (223) 81
Gain (loss) from certain available-for-sale
securities (18) 1
----------------------------------------------------------------------
Total gain (loss) on MSR hedging and risk
management instruments (1,055) 1,083
----------------------------------------------------------------------
Total MSR risk management and
amortization $(1,283) $(1,205)
======================================================================


WM-17

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


Quarter Ended
---------------------------------------------------------------------
Dec. Sept. June
31, 30, 30,
2005 2005 2005
----------------------------------------------------------------------
Rollforward of Mortgage Servicing
Rights(1)(2)
Balance, beginning of period $ 7,042 $ 5,730 $ 6,802
Home loans:
Additions 703 605 555
Amortization (482) (555) (564)
(Impairment) reversal 353 413 (250)
Statement No. 133 MSR
accounting valuation
adjustments 419 849 (813)
Net change in commercial real
estate MSR 6 - -
----------------------------------------------------------------------
Balance, end of period(3) $ 8,041 $ 7,042 $ 5,730
======================================================================
Rollforward of Valuation Allowance for
MSR Impairment
Balance, beginning of period $ 1,312 $ 1,746 $ 1,513
Impairment (reversal) (353) (413) 250
Other-than-temporary impairment (43) (18) (11)
Other (2) (3) (6)
----------------------------------------------------------------------
Balance, end of period $ 914 $ 1,312 $ 1,746
======================================================================
Rollforward of Mortgage Loans Serviced
for Others
Balance, beginning of period $547,578 $543,324 $542,797
Home loans:
Additions 51,642 43,418 36,174
Loan payments and other (37,245) (39,005) (35,689)
Net change in commercial real
estate loans serviced for others 1,233 (159) 42
----------------------------------------------------------------------
Balance, end of period $563,208 $547,578 $543,324
======================================================================

Dec. Sept. June
31, 30, 30,
2005 2005 2005
----------------------------------------------------------------------
Total Servicing Portfolio
Mortgage loans serviced for
others $563,208 $547,578 $543,324
Consumer loans serviced for
others 11,014 - -
Servicing on retained MBS without
MSR 1,404 1,487 1,592
Servicing on owned loans 242,114 245,165 243,494
Subservicing portfolio 629 749 825
----------------------------------------------------------------------
Total servicing portfolio $818,369 $794,979 $789,235
======================================================================

Mar. Dec.
31, 31,
2005 2004
----------------------------------------------------------------------
Rollforward of Mortgage Servicing Rights(1)(2)
Balance, beginning of period $ 5,906 $ 6,112
Home loans:
Additions 490 372
Amortization (570) (636)
(Impairment) reversal 427 179
Statement No. 133 MSR accounting
valuation adjustments 545 (123)
Net change in commercial real estate MSR 4 2
----------------------------------------------------------------------
Balance, end of period(3) $ 6,802 $ 5,906
======================================================================
Rollforward of Valuation Allowance for MSR
Impairment
Balance, beginning of period $ 1,981 $ 2,653
Impairment (reversal) (427) (179)
Other-than-temporary impairment (34) (486)
Other (7) (7)
----------------------------------------------------------------------
Balance, end of period $ 1,513 $ 1,981
======================================================================
Rollforward of Mortgage Loans Serviced
for Others
Balance, beginning of period $540,392 $551,245
Home loans:
Additions 34,533 27,218
Loan payments and other (32,861) (38,529)
Net change in commercial real estate loans
serviced for others 733 458
----------------------------------------------------------------------
Balance, end of period $542,797 $540,392
======================================================================

Mar. Dec.
31, 31,
2005 2004
----------------------------------------------------------------------
Total Servicing Portfolio
Mortgage loans serviced
for others $542,797 $540,392
Consumer loans serviced for others - -
Servicing on retained MBS without MSR 1,702 1,808
Servicing on owned loans 233,738 229,879
Subservicing portfolio 421 461
----------------------------------------------------------------------
Total servicing portfolio $778,658 $772,540
======================================================================

December 31, 2005
----------------------------------------------------------------------
Unpaid Weighted
Principal Average
Balance Servicing
Fee
----------------------------------------------------------------------
(in basis
points,
Mortgage Loans Serviced for Others by annualized)
Loan Type
Government $ 45,709 46
Agency 327,763 32
Private 161,412 39
Specialty home loans 28,324 51
----------------------------------------------------------------------
Total mortgage loans serviced for
others(4) $563,208 36
======================================================================

(1) Net of valuation allowance.

(2) MSR as a percentage of loans serviced for others was 1.43%, 1.29%,
1.05%, 1.25% and 1.09% at December 31, 2005, September 30, 2005,
June 30, 2005, March 31, 2005 and December 31, 2004.

(3) At December 31, 2005, the aggregate MSR fair value was $8.10
billion.

(4) Weighted average coupon rate (annualized) was 5.90% at December
31, 2005.


WM-18

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


Quarter Ended
----------------------------------------------------------------------
Dec. Sept. June
31, 30, 30,
2005 2005 2005
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
Balance, beginning of quarter $1,264 $1,243 $1,280
Allowance acquired through business
combinations/other 447 - (29)
Provision for loan and lease losses 121 52 31
----------------------------------------------------------------------
1,832 1,295 1,282
Loans charged off:
Loans secured by real estate:
Home (7) (9) (11)
Specialty mortgage finance(1) (14) (15) (11)
----------------------------------------------------------------------
Total home loans charged off (21) (24) (22)
Home equity loans and lines of
credit (6) (10) (8)
Home construction(2) - - (2)
Multi-family - - (1)
Other real estate (1) (4) (2)
----------------------------------------------------------------------
Total loans secured by real
estate (28) (38) (35)
Consumer:
Credit card (138) - -
Other (8) (8) (9)
Commercial business (16) (4) (8)
----------------------------------------------------------------------
Total loans charged off (190) (50) (52)
Recoveries of loans previously charged
off:
Loans secured by real estate:
Specialty mortgage finance(1) 1 1 1
Home equity loans and lines of
credit 7 1 1
Multi-family - 2 -
Other real estate - 8 3
----------------------------------------------------------------------
Total loans secured by real
estate 8 12 5
Consumer:
Credit card 40 - -
Other 3 5 6
Commercial business 2 2 2
----------------------------------------------------------------------
Total recoveries of loans
previously charged off 53 19 13
----------------------------------------------------------------------
Net charge-offs (137) (31) (39)
----------------------------------------------------------------------
Balance, end of quarter $1,695 $1,264 $1,243
======================================================================
Net charge-offs (annualized) as a
percentage of average loans held in
portfolio 0.24 % 0.06 % 0.07 %
Allowance as a percentage of total loans
held in portfolio 0.74 0.58 0.58


Mar. Dec.
31, 31,
2005 2004
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
Balance, beginning of quarter $1,301 $1,322
Allowance acquired through business
combinations/other - (20)
Provision for loan and lease losses 16 37
----------------------------------------------------------------------
1,317 1,339
Loans charged off:
Loans secured by real estate:
Home (11) (9)
Specialty mortgage finance(1) (10) (10)
----------------------------------------------------------------------
Total home loans charged off (21) (19)
Home equity loans and lines of credit (5) (3)
Home construction(2) - (1)
Multi-family - (2)
Other real estate (1) (1)
----------------------------------------------------------------------
Total loans secured by real estate (27) (26)
Consumer:
Credit card - -
Other (13) (17)
Commercial business (6) (8)
----------------------------------------------------------------------
Total loans charged off (46) (51)
Recoveries of loans previously charged off:
Loans secured by real estate:
Specialty mortgage finance(1) 1 1
Home equity loans and lines of credit - 2
Multi-family - -
Other real estate 1 2
----------------------------------------------------------------------
Total loans secured by real estate 2 5
Consumer:
Credit card - -
Other 5 4
Commercial business 2 4
----------------------------------------------------------------------
Total recoveries of loans previously
charged off 9 13
----------------------------------------------------------------------
Net charge-offs (37) (38)
----------------------------------------------------------------------
Balance, end of quarter $1,280 $1,301
======================================================================
Net charge-offs (annualized) as a percentage
of average loans held in portfolio 0.07 % 0.07 %
Allowance as a percentage of total loans held in
portfolio 0.60 0.63

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

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


WM-19

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


Dec. Sept. June
31, 30, 30,
2005 2005 2005
----------------------------------------------------------------------
Nonperforming Assets and Restructured Loans
Nonaccrual loans(1):
Loans secured by real estate:
Home $ 565 $ 472 $ 495
Specialty mortgage finance(2) 872 755 692
----------------------------------------------------------------------
Total home nonaccrual loans 1,437 1,227 1,187
Home equity loans and lines of credit 88 68 67
Home construction(3) 10 10 11
Multi-family 25 18 15
Other real estate 70 69 116
----------------------------------------------------------------------
Total nonaccrual loans secured
by real estate 1,630 1,392 1,396
Consumer(4) 8 8 8
Commercial business 48 65 59
----------------------------------------------------------------------
Total nonaccrual loans held in
portfolio 1,686 1,465 1,463
Foreclosed assets 276 256 256
----------------------------------------------------------------------
Total nonperforming assets $1,962 $1,721 $1,719
As a percentage of total assets 0.57% 0.52% 0.53%
Restructured loans $ 22 $ 25 $ 25
----------------------------------------------------------------------
Total nonperforming assets
and restructured loans $1,984 $1,746 $1,744
=====================================================================

Mar. Dec.
31, 31,
2005 2004
----------------------------------------------------------------------
Nonperforming Assets and Restructured Loans
Nonaccrual loans(1):
Loans secured by real estate:
Home $ 495 $ 534
Specialty mortgage finance(2) 734 682
----------------------------------------------------------------------
Total home nonaccrual loans 1,229 1,216
Home equity loans and lines of credit 74 66
Home construction(3) 25 28
Multi-family 15 12
Other real estate 159 162
----------------------------------------------------------------------
Total nonaccrual loans secured by real
estate 1,502 1,484
Consumer(4) 8 9
Commercial business 59 41
----------------------------------------------------------------------
Total nonaccrual loans held in portfolio 1,569 1,534
Foreclosed assets 264 261
----------------------------------------------------------------------
Total nonperforming assets $1,833 $1,795
As a percentage of total assets 0.57% 0.58%
Restructured loans $ 27 $ 34
----------------------------------------------------------------------
Total nonperforming assets and
restructured loans $1,860 $1,829
======================================================================


(1) Excludes nonaccrual loans held for sale of $245 million at
December 31, 2005. Prior periods also reflect the exclusion of
nonaccrual loans held for sale of $152 million, $108 million, $112
million and $76 million at September 30, 2005, June 30, 2005,
March 31, 2005 and December 31, 2004. Loans held for sale are
accounted for at lower of aggregate cost or market value, with
valuation changes included as adjustments to noninterest income.

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

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

(4) Excludes credit card loans.