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

Washington Mutual, Inc. (NYSE: WM) today reported first quarter2006 net income of $985 million, or $0.98 per diluted share, comparedwith net income of $902 million, or $1.01 per diluted share, in thefirst quarter of 2005.

Washington Mutual's Board of Directors declared a cash dividend of51 cents per share on the company's common stock, up from 50 cents pershare in the previous quarter. Dividends on the common stock arepayable on May 15, 2006 to shareholders of record as of April 28,2006.

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

"These businesses added customers at a record pace and deliveredsignificant revenue and earnings even in this difficult interest rateenvironment," Killinger added.
Earnings Highlights Three Months Ended
----------------------------------
March 31, December 31, March 31,
(In millions, except per share 2006 2005 2005
data) --------- --------- ---------
Total revenue $ 3,842 $ 3,843 $ 3,298
Net income 985 865 902
Diluted earnings per common share 0.98 0.85 1.01

Total assets, end of period $ 348,667 $ 343,839 $ 319,696

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

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

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

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

FIRST QUARTER FINANCIAL SUMMARY

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

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

EARNINGS PERFORMANCE

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

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

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

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

BALANCE SHEET ACTIVITY

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

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

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

FIRST QUARTER OPERATING SEGMENT RESULTS

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

Average loans $ 189,142 $ 183,780 $ 177,635
Average retail deposits 139,062 140,212 132,982
Net change in retail checking
accounts 340,157 203,190 202,134
Net change in retail households 210,000 143,000 150,000

-- Checking accounts top 10 million with boost from WaMu Free Checking(TM) account. During the quarter, the company launched its new Free Checking product and a new national advertising campaign. Customer reception has been strong, helping to drive the opening of 340,000 new checking accounts in the first quarter, for a 67 percent increase in new accounts compared with the prior quarter, and in attracting 210,000 net new retail households.

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

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

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

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

Average managed receivables $ 20,086 $ 19,472 -
30+ day managed delinquency rate 5.18 % 5.07 % -
Managed net credit losses 5.79 7.28 -

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

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

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

Commercial Group

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

Loan volume $ 2,769 $ 2,932 $ 2,433
Average loans 31,011 30,950 29,563

-- Commercial Group lending volume continues to be strong. Despite higher interest rates, total loan volume of $2.77 billion remained robust and reflects the company's continued leading position in multi-family lending.

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

Home Loans Group

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

Loan volume $ 44,998 $ 48,701 $ 44,495
Average loans 34,586 51,073 38,903

-- Difficult interest rate environment continues. The increase in short-term interest rates and the flat yield curve, in conjunction with a smaller portfolio of loans outstanding, contributed to the 35 percent decline in net interest income on a linked quarter basis.

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

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

COMPANY UPDATES

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

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

About Washington Mutual

Washington Mutual is one of the nation's leading consumer andsmall business banks. At March 31, 2006, Washington Mutual and itssubsidiaries had assets of $348.67 billion. The company wasestablished in 1889 and currently operates more than 2,600 consumerand small business banking stores throughout the nation. WashingtonMutual's press releases are available at www.wamunewsroom.com.

Webcast information: A conference call to discuss the company'sfinancial results will be held on Tuesday, April 18, 2006, at 6:00p.m. EDT 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 is888-946-6301. 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 Investor

Relations 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 9:00 p.m. EDT on Tuesday,April 18, 2006, through 11:59 p.m. EDT on Friday, April 28, 2006. Therecorded message will be available at 800-337-5620. Callers fromoutside the United States may dial 203-369-3253.

Forward Looking Statement

Our Form 10-K for 2005 and other documents that we file 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 described in detail in our Form 10-K for 2005 and include:volatile interest rates impact the mortgage banking business; risinginterest rates, unemployment and decreases in housing prices impactcredit performance; risks related to the option adjustable-ratemortgage product; risks related to subprime lending; risks related tothe integration of the Card Services business; risks related to creditcard operations; changes in the regulation of financial servicescompanies, housing government-sponsored enterprises and credit cardlenders; competition from banking and nonbanking companies; generalbusiness and economic conditions, including movements in interestrates, the slope of the yield curve, and the potential overextensionof housing prices in certain geographic markets; and negative publicopinion impacts the company's reputation. There are other factors notdescribed in the Form 10-K for 2005 and which are beyond the Company'sability to anticipate or control that could cause results to differ.

WM-1

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

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

Diluted earnings per common share 0.98 0.85 0.92

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

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

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

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



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

Diluted earnings per common share 0.95 1.01

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

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

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

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


(1) Number of shares in thousands.

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

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

(4) Excludes nonaccrual loans held for sale.

(5) As of period end.

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

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

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

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


WM-2

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

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

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

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



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

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

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


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


WM-3

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

Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2006 2005 2005 2005 2005
--------- --------- --------- --------- --------
Assets
Cash and cash
equivalents $ 5,868 $ 6,214 $ 4,924 $ 4,614 $ 4,811
Federal funds sold
and securities
purchased under
agreements to
resell 3,995 2,137 3,194 625 1,152
Trading assets 9,958 10,999 7,351 5,687 6,066
Available-for-sale
securities, total
amortized cost of
$27,424, $24,810,
$20,757, $18,999
and $20,569:
Mortgage-backed
securities 21,388 20,648 17,161 14,396 15,947
Investment
securities 5,586 4,011 3,603 4,852 4,756
Loans held for sale 25,020 33,582 48,018 51,122 41,197
Loans held in
portfolio 240,004 229,632 218,194 212,737 214,114
Allowance for loan
and lease losses (1,642) (1,695) (1,264) (1,243) (1,280)
--------------------- --------- --------- --------- --------- --------
Total loans held
in portfolio,
net of allowance
for loan and
lease losses 238,362 227,937 216,930 211,494 212,834
Investment in
Federal Home Loan
Banks 4,200 4,257 4,228 4,194 3,973
Mortgage servicing
rights 8,736 8,041 7,042 5,730 6,802
Goodwill 8,298 8,298 6,196 6,196 6,196
Other assets 17,256 17,715 14,975 14,623 15,962
--------------------- --------- --------- --------- --------- --------
Total assets $348,667 $343,839 $333,622 $323,533 $319,696
===================== ========= ========= ========= ========= ========
Liabilities
Deposits:
Noninterest-bearing
deposits $ 36,531 $ 34,014 $ 36,850 $ 35,518 $ 34,941
Interest-bearing
deposits 163,471 159,153 153,562 148,799 148,690
--------------------- --------- --------- --------- --------- --------
Total deposits 200,002 193,167 190,412 184,317 183,631
Federal funds
purchased and
commercial paper 6,841 7,081 7,229 5,864 2,053
Securities sold
under agreements
to repurchase 15,471 15,532 14,508 14,089 16,716
Advances from
Federal Home Loan
Banks 65,283 68,771 69,405 71,534 66,730
Other borrowings 24,872 23,777 23,994 20,752 21,938
Other liabilities 8,069 7,880 5,463 4,614 6,848
Minority
interests(1) 1,973 15 15 13 13
--------------------- --------- --------- --------- --------- --------
Total
liabilities 322,511 316,223 311,026 301,183 297,929
Stockholders' equity 26,156 27,616 22,596 22,350 21,767
--------------------- --------- --------- --------- --------- --------
Total
liabilities and
stockholders'
equity $348,667 $343,839 $333,622 $323,533 $319,696
===================== ========= ========= ========= ========= ========

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


WM-4

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

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

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


WM-5

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

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


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

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

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

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

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


WM-6

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

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

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

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

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

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

(1) See note 1 on preceding table.

(2) See note 2 on preceding table.

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

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

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

(6) Represents the tax effect of reconciling adjustments.

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

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

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


WM-7

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

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



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

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

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

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

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

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

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

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


WM-8

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


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


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

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

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


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

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


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

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

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

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


Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2006 2005 2005 2005 2005
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
period 2,140 2,051 1,997 1,968 1,939
Net stores opened
during the quarter 28 89 (1) 54 29 29
----------------------------------------------------------------------
Stores, end of period 2,168 2,140 2,051 1,997 1,968
======================================================================

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


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


WM-9

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

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

Note: Pursuant to regulatory guidance, buyouts of delinquent
mortgages contained within Government National Mortgage Association
(GNMA) loan servicing pools must be classified as loans on the balance
sheet. Accordingly, total home loan volume includes GNMA pool buy-out
volume of $266 million, $304 million, $466 million, $477 million and
$563 million for the quarters ended March 31, 2006, December 31, 2005,
September 30, 2005, June 30, 2005 and March 31, 2005.

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

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

(3) Excludes credit card loan volume.

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

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

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


WM-10

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

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

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

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

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

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

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

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

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


WM-11

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

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

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

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

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

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

(4) Excludes credit card and student loans.

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

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


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

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


WM-12

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

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

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

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

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


WM-13

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

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

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


WM-14

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

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

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

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

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

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

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

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


WM-15

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

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

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

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

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


WM-16

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

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

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

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

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