WM-1

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions, except per share data)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2007			2006			2006			2006			2006
PROFITABILITY
Net income	$	784		$	1,058		$	748		$	767		$	985
Net interest income		2,081			1,998			1,947			2,060			2,117
Noninterest income		1,541			1,592			1,570			1,578			1,638
Noninterest expense		2,105			2,257			2,184			2,229			2,138
Diluted earnings per common share:
Income from continuing operations	$	0.86		$	0.66		$	0.76		$	0.78		$	0.97
Income from discontinued operations		-			0.44			0.01			0.01			0.01
Net income		0.86			1.10			0.77			0.79			0.98
Diluted weighted average number of common shares outstanding
(in thousands)		899,706			955,817			967,376			975,504			1,003,460
Net interest margin		2.79	%		2.58	%		2.53	%		2.65	%		2.75	%
Dividends declared per common share		0.54			0.53			0.52			0.51			0.50
Book value per common share (period end)(1)		27.30			28.21			27.65			27.31			27.10
Return on average assets		0.95	%		1.20	%		0.86	%		0.88	%		1.15	%
Return on average common equity		12.99			16.03			11.47			11.82			14.69
Efficiency ratio(2)(3)		58.13			62.87			62.09			61.27			56.95
ASSET QUALITY
Nonperforming assets(4) to total assets		1.02	%		0.80	%		0.69	%		0.62	%		0.59	%
Allowance as a percentage of total loans held in portfolio		0.71			0.72			0.64			0.68			0.68
CREDIT PERFORMANCE
Provision for loan and lease losses	$	234		$	344		$	166		$	224		$	82
Net charge-offs		183			136			154			116			105
CAPITAL ADEQUACY
Capital Ratios for WMI:
Tangible equity to total tangible assets(5)		5.78	%		6.04	%		5.86	%		5.84	%		5.75	%
Total risk-based capital to total risk-weighted assets(6)		11.14			11.77			11.10			11.26			10.77
Tier 1 capital to average total assets(6)		5.87			6.35			6.28			6.24			6.13
Capital Ratios for WMB (well-capitalized minimum)(7):
Tier 1 capital to adjusted total assets (5.00%)		6.71			6.79			6.47			6.33			6.76
Adjusted tier 1 capital to total risk-weighted assets (6.00%)		7.84			8.28			8.12			8.13			8.92
Total risk-based capital to total risk-weighted assets (10.00%)		11.89			12.16			11.30			11.39			11.82
SUPPLEMENTAL DATA
Average balance sheet:
Total loans held in porfolio	$	222,617		$	239,265		$	242,165		$	242,334		$	232,505
Total interest-earning assets(2)		295,700			314,784			312,827			313,239			307,777
Total assets		331,905			353,056			349,542			348,664			343,660
Total deposits		210,764			214,801			208,912			200,252			191,034
Total stockholders' equity		24,407			26,700			26,147			25,958			26,825
Period-end balance sheet:
Total lons held in portfolio, net of allowance for loan and lease losses		215,481			223,330			240,215			241,840			238,362
Total assets		319,985			346,288			348,877			350,884			348,401
Total deposits		210,209			213,956			210,882			204,558			200,002
Total stockholders' equity		24,578			26,969			26,458			26,131			25,819
Common shares outstanding at the end of period (in thousands)(8)		888,111			944,479			945,098			962,880			958,819
Employees at end of period		49,693			49,824			51,056			56,247			60,381

_______________________

(1)	Excludes six million shares held in escrow.
(2)	Based on continuing operations.
(3)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(4)	Excludes nonaccrual loans held for sale.
(5)	Excludes unrealized net gain/loss on available-for-sale securities and derivatives, goodwill and intangible assets (except MSR) and the impact from the adoption and application of FASB Statement No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans, as of December 31, 2006. Minority interests of $2.45 billion for March 31, 2007 and December 31, 2006, $1.96 billion for September 30, 2006 and June 30, 2006 and $1.97 billion for March 31, 2006 are included in the numerator.
(6)	The capital ratios are estimated as if Washington Mutual, Inc. were a bank holding company subject to Federal Reserve Board capital requirements.
(7)	Capital ratios for Washington Mutual Bank ("WMB") at March 31, 2007 are preliminary.
(8)	Includes six million shares held in escrow.

WM-2

Washington Mutual, Inc.

Consolidated Statements of Income

(dollars in millions, except per share data)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2007			2006			2006			2006			2006
Interest Income
Loans held for sale	$	562		$	515		$	435		$	395		$	462
Loans held in portfolio		3,900			4,053			4,012			3,887			3,580
Available-for-sale securities		332			392			379			368			322
Trading assets		113			102			140			165			198
Other interest and dividend income		101			148			139			120			95
Total interest income		5,008			5,210			5,105			4,935			4,657
Interest Expense
Deposits		1,772			1,843			1,739			1,461			1,221
Borrowings		1,155			1,369			1,419			1,414			1,319
Total interest expense		2,927			3,212			3,158			2,875			2,540
Net interest income		2,081			1,998			1,947			2,060			2,117
Provision for loan and lease losses		234			344			166			224			82
Net interest income after provision for loan and lease losses		1,847			1,654			1,781			1,836			2,035
Noninterest Income
Revenue from sales and servicing of home mortgage loans		125			164			118			222			263
Revenue from sales and servicing of consumer loans		443			372			355			424			376
Depositor and other retail banking fees		665			692			655			641			578
Credit card fees		172			182			165			152			138
Securities fees and commissions		60			54			52			56			52
Insurance income		29			30			31			33			33
Trading assets income (loss)		(108	)		(81	)		68			(129	)		(13	)
Gain (loss) from sales of other available-for-sale securities		35			(1	)		(1	)		-			(7	)
Other income		120			180			127			179			218
Total noninterest income		1,541			1,592			1,570			1,578			1,638
Noninterest Expense
Compensation and benefits		1,002			945			939			1,021			1,032
Occupancy and equipment		376			476			408			435			391
Telecommunications and outsourced information services		129			133			142			145			134
Depositor and other retail banking losses		61			64			57			51			56
Advertising and promotion		98			107			124			117			95
Professional fees		38			89			57			45			36
Other expense		401			443			457			415			394
Total noninterest expense		2,105			2,257			2,184			2,229			2,138
Minority interest expense		43			34			34			37			-
Income from continuing operations before income taxes		1,240			955			1,133			1,148			1,535
Income taxes		456			315			394			389			559
Income from continuing operations		784			640			739			759			976
Discontinued Operations(1)
Income from discontinued operations before income taxes		-			2			14			12			15
Gain on disposition of discontinued operations		-			667			-			-			-
Income taxes		-			251			5			4			6
Income from discontinued operations		-			418			9			8			9
Net Income	$	784		$	1,058		$	748		$	767		$	985
Net Income Available to Common Stockholders	$	777		$	1,050		$	748		$	767		$	985
Basic Earnings Per Common Share:
Income from continuing operations	$	0.89		$	0.68		$	0.78		$	0.80		$	1.00
Income from discontinued operations		-			0.45			0.01			0.01			0.01
Net Income		0.89			1.13			0.79			0.81			1.01
Diluted Earnings Per Common Share:
Income from continuing operations	$	0.86		$	0.66		$	0.76		$	0.78		$	0.97
Income from discontinued operations		-			0.44			0.01			0.01			0.01
Net Income		0.86			1.10			0.77			0.79			0.98
Dividends declared per common share		0.54			0.53			0.52			0.51			0.50
Basic weighted average number of common shares outstanding (in thousands)		874,816			931,484			941,898			947,023			973,614
Diluted weighted average number of common shares outstanding (in thousands)		899,706			955,817			967,376			975,504			1,003,460

_______________________

⁽¹⁾ Represents WM Advisors, Inc., the Company's retail mutual fund management business, which was sold in the fourth quarter of 2006.

WM-3

Washington Mutual, Inc.

Consolidated Statements of Financial Condition

(dollars in millions)

(unaudited)

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

WM-4

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

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

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

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

⁽³⁾ As of January 1, 2006, the Company adopted Statement No. 156, Accounting for Servicing of Financial Assets. Statement No. 156 permits an entity to choose either to continue the practice of amortizing servicing assets and assess such assets for impairment, or to report servicing assets at fair value. The Company has elected to report its mortgage servicing assets at fair value. Statement No. 156 also permits the one-time transfer of available-for-sale securities being utilized as MSR risk management instruments to trading securities. The cumulative effects, net of income taxes, resulted in a $29 million increase to January 1, 2006 retained earnings from the MSR fair value election and a $6 million increase to January 1, 2006 accumulated other comprehensive income from the transfer of AFS securities, designated as MSR risk management instruments, to the trading portfolio.

⁽⁴⁾ The Company repurchased 61.4 million, 1.7 million, 18.8 million, zero and 47.0 million shares of its common stock in the three months ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006. At March 31, 2007, the total remaining common stock repurchase authority was 68.2 million shares.

WM-5

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2007			2006			2006			2006			2006
RETAIL BANKING GROUP
Condensed income statement:
Net interest income	$	1,275		$	1,239		$	1,260		$	1,323		$	1,347
Provision for loan and lease losses		62			47			53			13			54
Noninterest income		751			774			738			732			670
Inter-segment revenue		22			17			17			16			13
Noninterest expense		1,075			1,102			1,079			1,109			1,088
Income from continuing operations before income taxes		911			881			883			949			888
Income taxes		342			336			337			363			340
Income from continuing operations		569			545			546			586			548
Income from discontinued operations		-			12			9			8			9
Net income	$	569		$	557		$	555		$	594		$	557
Performance and other data:
Efficiency ratio		52.50	%		54.29	%		53.55	%		53.53	%		53.61	%
Average loans	$	155,206		$	172,029		$	180,829		$	182,891		$	173,852
Average assets		165,047			182,256			191,288			193,246			184,147
Average deposits:
Checking deposits:
Noninterest bearing		22,331			21,873			21,440			21,418			20,344
Interest bearing		31,739			33,010			34,792			37,518			40,343
Total checking deposits		54,070			54,883			56,232			58,936			60,687
Savings and money market deposits		43,103			41,442			38,317			38,143			37,433
Time deposits		46,857			47,188			45,405			41,724			40,940
Average deposits		144,030			143,513			139,954			138,803			139,060
Loan volume		8,492			7,966			9,006			10,488			7,255
Employees at end of period		27,873			27,664			28,034			31,426			32,863
CARD SERVICES GROUP
Managed basis(1)
Condensed income statement:
Net interest income	$	653		$	664		$	633		$	615		$	619
Provision for loan and lease losses		388			555			345			417			330
Noninterest income		474			451			343			389			344
Inter-segment expense		4			2			2			1			-
Noninterest expense		325			316			294			293			298
Income before income taxes		410			242			335			293			335
Income taxes		154			93			128			112			128
Net income	$	256		$	149		$	207		$	181		$	207
Performance and other data:
Efficiency ratio		28.96	%		28.41	%		30.16	%		29.19	%		30.95	%
Average loans	$	23,604		$	22,875		$	21,706		$	20,474		$	20,086
Average assets		26,039			25,472			24,236			23,044			22,764
Employees at end of period		2,646			2,676			2,731			2,597			2,871
Securitization adjustments
Condensed income statement:
Net interest income	$	(414	)	$	(437	)	$	(411	)	$	(405	)	$	(432	)
Provision for loan and lease losses		(282	)		(280	)		(220	)		(217	)		(225	)
Noninterest income		132			157			191			188			207
Performance and other data:
Average loans		(12,507	)		(12,811	)		(12,169	)		(11,565	)		(12,107	)
Average assets		(10,961	)		(11,035	)		(10,330	)		(9,753	)		(10,219	)
Adjusted basis
Condensed income statement:
Net interest income	$	239		$	227		$	222		$	210		$	187
Provision for loan and lease losses		106			275			125			200			105
Noninterest income		606			608			534			577			551
Inter-segment expenses		4			2			2			1			-
Noninterest expense		325			316			294			293			298
Income before income taxes		410			242			335			293			335
Income taxes		154			93			128			112			128
Net income	$	256		$	149		$	207		$	181		$	207
Performance and other data:
Average loans	$	11,097		$	10,064		$	9,537		$	8,909		$	7,979
Average assets		15,078			14,437			13,906			13,291			12,545
(This table is continued on "WM-6.")

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

WM-6

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

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

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

WM-7

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
(This table is continued from "WM-6.")	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2007			2006			2006			2006			2006
RECONCILING ADJUSTMENTS
Condensed income statement:
Net interest income(1)	$	137		$	134		$	137		$	131		$	126
Noninterest income (expense)(2)		(73	)		(98	)		(116	)		(121	)		(146	)
Income (loss) before income taxes		64			36			21			10			(20	)
Income taxes (benefit)(3)		43			(22	)		(15	)		(40	)		(15	)
Net income (loss)	$	21		$	58		$	36		$	50		$	(5	)
Performance and other data:
Average loans(4)	$	(1,479	)	$	(1,573	)	$	(1,600	)	$	(1,601	)	$	(1,571	)
Average assets(4)		(1,479	)		(1,573	)		(1,600	)		(1,601	)		(1,571	)
TOTAL CONSOLIDATED
Condensed income statement:
Net interest income	$	2,081		$	1,998		$	1,947		$	2,060		$	2,117
Provision for loan and lease losses		234			344			166			224			82
Noninterest income		1,541			1,592			1,570			1,578			1,638
Noninterest expense		2,105			2,257			2,184			2,229			2,138
Minority interest expense		43			34			34			37			-
Income from continuing operations before income taxes		1,240			955			1,133			1,148			1,535
Income taxes		456			315			394			389			559
Income from continuing operations		784			640			739			759			976
Income from discontinued operations		-			418			9			8			9
Net income	$	784		$	1,058		$	748		$	767		$	985
Performance and other data:
Efficiency ratio		58.13	%		62.87	%		62.09	%		61.27	%		56.95	%
Average loans		258,064			270,414			267,832			266,870			262,326
Average assets		331,905			353,056			349,542			348,664			343,660
Average deposits		210,764			214,801			208,912			200,252			191,034
Loan volume		41,915			47,026			49,368			54,895			55,046
Employees at end of period		49,693			49,824			51,056			56,247			60,381

__________________________

 

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

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

⁽³⁾ Represents the tax effect of reconciling adjustments.

⁽⁴⁾ Represents the inter-segment offset for inter-segment loan premiums that the Retail Banking Group recognized upon transfer of portfolio loans from the Home Loans Group.

WM-8

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31, 2007							Dec. 31, 2006							Mar. 31, 2006
						Interest							Interest							Interest
						Income/							Income/							Income/
	Balance		Rate			Expense		Balance		Rate			Expense		Balance		Rate			Expense
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets(1):
Federal funds sold and securities purchased under
agreements to resell	$	3,930		5.39	%	$	52	$	5,597		5.33	%	$	76	$	3,754		4.62	%	$	43
Trading assets		5,594		8.10			113		4,855		8.39			102		11,692		6.80			198
Available-for-sale securities(2):
Mortgage-backed securities		17,887		5.47			245		21,661		5.58			302		20,144		5.29			266
Investment securities		6,753		5.17			87		6,952		5.15			90		4,845		4.62			56
Loans held for sale		35,447		6.37			562		31,149		6.59			515		29,821		6.20			462
Loans held in portfolio:
Loans secured by real estate:
Home loans(3)(4)		97,365		6.45			1,570		114,645		6.04			1,729		117,720		5.58			1,643
Home equity loans and lines of credit(4)		53,014		7.56			989		52,850		7.54			1,004		51,320		6.96			883
Subprime mortgage channel(5)		20,612		6.67			344		20,982		6.81			357		19,967		5.95			296
Home construction(6)		2,061		6.55			34		2,060		6.62			34		2,059		6.34			33
Multi-family		29,826		6.57			490		30,348		6.52			494		25,758		5.92			382
Other real estate		6,763		7.03			117		6,732		6.88			118		5,157		6.84			88
Total loans secured by real estate		209,641		6.79			3,544		227,617		6.55			3,736		221,981		6.01			3,325
Consumer:
Credit card		10,904		11.57			311		9,597		11.28			273		7,808		10.74			206
Other		267		12.96			9		280		12.54			9		622		11.03			17
Commercial		1,805		7.95			36		1,771		7.72			35		2,094		6.19			32
Total loans held in portfolio		222,617		7.04			3,900		239,265		6.76			4,053		232,505		6.18			3,580
Other		3,472		5.77			49		5,305		5.35			72		5,016		4.17			52
Total interest-earning assets		295,700		6.81			5,008		314,784		6.60			5,210		307,777		6.07			4,657
Noninterest-earning assets:
Mortgage servicing rights		6,304							6,230							8,260
Goodwill		9,054							9,011							8,298
Other assets(7)		20,847							23,031							19,325
Total assets	$	331,905						$	353,056						$	343,660
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	31,821		2.63			206	$	33,098		2.78			232	$	40,436		2.29			228
Savings and money market deposits		54,862		3.27			443		53,314		3.34			449		44,816		2.38			263
Time deposits		91,631		4.97			1,123		93,415		4.90			1,162		73,182		4.02			730
Total interest-bearing deposits		178,314		4.03			1,772		179,827		4.05			1,843		158,434		3.11			1,221
Federal funds purchased and commercial paper		3,846		5.48			52		6,781		5.40			93		7,463		4.46			83
Securities sold under agreements to repurchase		12,098		5.48			164		12,177		5.43			169		15,280		4.46			170
Advances from Federal Home Loan Banks		36,051		5.38			478		46,005		5.31			625		66,995		4.46			746
Other		32,808		5.67			461		34,420		5.54			482		26,636		4.81			320
Total interest-bearing liabilities		263,117		4.51			2,927		279,210		4.53			3,212		274,808		3.72			2,540
Noninterest-bearing sources:
Noninterest-bearing deposits		32,450							34,974							32,600
Other liabilities(8)		9,482							10,111							8,875
Minority interests		2,449							2,061							552
Stockholders' equity		24,407							26,700							26,825
Total liabilities and stockholders' equity	$	331,905						$	353,056						$	343,660
Net interest spread and net interest income				2.30		$	2,081				2.07		$	1,998				2.35		$	2,117
Impact of noninterest-bearing sources				0.49							0.51							0.40
Net interest margin				2.79							2.58							2.75

^{_______________________________}

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

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

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

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

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

⁽⁶⁾ Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

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

⁽⁸⁾ Includes liabilities of discontinued operations for the three months ended December 31, 2006 and March 31, 2006.

WM-9

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	Dec. 31, 2006			Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	to Mar. 31, 2007			2007		2006		2006		2006		2006
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing	$	1,562		$	24,400	$	22,838	$	22,466	$	22,450	$	22,378
Interest bearing		(1,200	)		31,523		32,723		33,761		35,958		39,289
Total checking deposits		362			55,923		55,561		56,227		58,408		61,667
Savings and money market deposits		2,115			44,058		41,943		39,481		37,664		38,197
Time deposits(1)		441			47,262		46,821		47,361		43,685		41,534
Total retail deposits		2,918			147,243		144,325		143,069		139,757		141,398
Commercial business and other deposits		2,566			17,741		15,175		15,831		15,625		14,559
Brokered deposits:
Consumer		(3,304	)		18,995		22,299		22,430		14,316		8,111
Institutional		(5,083	)		17,256		22,339		18,236		22,708		23,166
Custodial and escrow deposits(2)		(844	)		8,974		9,818		11,316		12,152		12,768
Total deposits	$	(3,747	)	$	210,209	$	213,956	$	210,882	$	204,558	$	200,002

(1)	Weighted average remaining maturity of time deposits was 9 months at March 31, 2007 and December 31, 2006 and 10 months at September 30, 2006, June 30, 2006 and March 31, 2006.
(2)	Substantially all custodial and escrow deposits are reported as noninterest-bearing checking deposits.

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2007		2006		2006		2006		2006
Retail Deposit Accounts (number of accounts)
Noninterest bearing checking		9,983,313		9,611,706		9,403,072		9,063,458		8,630,646
Interest bearing checking		1,459,534		1,503,365		1,532,215		1,564,396		1,593,018
Savings and money market		6,708,784		6,525,772		6,379,068		6,161,187		5,929,653
Total transaction accounts, end of period(1)		18,151,631		17,640,843		17,314,355		16,789,041		16,153,317
Net change in noninterest bearing checking accounts		371,607		208,634		339,614		432,812		331,615
Net change in checking accounts		327,776		179,784		307,433		404,190		340,157

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

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2007			2006			2006			2006			2006
Retail Banking Stores
Stores, beginning of period		2,225			2,225			2,201			2,168			2,140
Stores opened during the quarter		6			81	(1)		25			35			29
Stores closed during the quarter		(3	)		(81	)		(1	)		(2	)		(1	)
Stores, end of period		2,228			2,225			2,225			2,201			2,168

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

WM-10

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

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

(1)	Short-term is defined as adjustable-rate loans that reprice within one year.
(2)	Medium-term is defined as adjustable-rate loans that reprice after one year.
(3)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(4)	Includes mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name of $3.48 billion, $6.07 billion, $9.40 billion, $8.20 billion and $7.09 billion for the three months ended March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006.
(5)	Excludes credit card loan volume.
(6)	Includes loan refinancing entered into by both new and pre-existing loan customers.

WM-11

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	Dec. 31, 2006			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	to Mar. 31, 2007			2007			2006			2006			2006			2006
Loans Held in Portfolio
Loans secured by real estate:
Home:
Short-term adjustable-rate loans(1):
Option ARMs(2)	$	(5,427	)	$	58,130		$	63,557		$	67,142		$	69,224		$	71,153
Other ARMs		(1,590	)		13,501			15,091			16,375			15,021			14,797
Total short-term adjustable-rate loans		(7,017	)		71,631			78,648			83,517			84,245			85,950
Medium-term adjustable-rate loans(3)		150			29,924			29,774			47,740			52,032			49,391
Fixed-rate loans		(276	)		9,506			9,782			9,928			9,424			8,660
Total home loans		(7,143	)		111,061			118,204			141,185			145,701			144,001
Home equity loans and lines of credit		1,199			56,123			54,924			54,364			52,981			51,872
Home construction(4)		(11	)		2,071			2,082			2,077			2,082			2,095
Multi-family		(646	)		29,515			30,161			27,407			26,749			26,151
Other real estate		(17	)		6,728			6,745			5,869			5,537			5,353
Total loans secured by real estate(5)		(6,618	)		205,498			212,116			230,902			233,050			229,472
Consumer:
Credit card		(1,371	)		9,490			10,861			8,807			8,451			7,906
Other		(15	)		261			276			281			287			602
Commercial		65			1,772			1,707			1,775			1,715			2,024
Total loans held in portfolio(6)		(7,939	)		217,021			224,960			241,765			243,503			240,004
Less: allowance for loan and lease losses		90			(1,540	)		(1,630	)		(1,550	)		(1,663	)		(1,642	)
Total net loans held in portfolio	$	(7,849	)	$	215,481		$	223,330		$	240,215		$	241,840		$	238,362

(1)	Short-term is defined as adjustable-rate loans that reprice within one year.
(2)	The total amount by which the unpaid principal balance of Option ARM loans exceeded their original principal amount was $1.12 billion, $888 million, $681 million, $474 million and $298 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006.
(3)	Medium-term is defined as adjustable-rate loans that reprice after one year.
(4)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(5)	Includes subprime mortgage channel loans, comprising mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in its investment portfolio as follows:

Subprime Mortgage Channel	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2007		2006		2006		2006		2006
Home loans	$	17,610	$	18,725	$	20,083	$	20,498	$	20,238
Home equity loans and lines of credit		2,749		2,042		1,522		424		12
Total	$	20,359	$	20,767	$	21,605	$	20,922	$	20,250

⁽⁶⁾ Includes net unamortized deferred loan origination costs of $1.43 billion, $1.48 billion, $1.61 billion, $1.62 billion and $1.61 billion at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006.

WM-12

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

						Weighted				Weighted				Weighted
	Change from					Average				Average				Average
	Dec. 31, 2006			Mar. 31,		Coupon		Dec. 31,		Coupon		Mar. 31,		Coupon
	to Mar. 31, 2007			2007		Rate		2006		Rate		2006		Rate
Selected Loans Secured by Real Estate and MBS
Home loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs	$	(5,427	)	$	58,130		7.74%	$	63,557		7.44%	$	70,169		6.34%
Other ARMs		(1,590	)		13,501		7.25		15,091		7.17		15,781		6.64
Total short-term adjustable-rate loans		(7,017	)		71,631		7.65		78,648		7.39		85,950		6.39
Medium-term adjustable-rate loans(2)		150			29,924		5.86		29,774		5.77		49,391		5.61
Fixed-rate loans		(276	)		9,506		6.68		9,782		6.65		8,660		6.54
Total home loans held in portfolio		(7,143	)		111,061		7.08		118,204		6.92		144,001		6.13
Home equity loans and lines of credit:
Short-term (Prime-based or treasury-based)(1)		(359	)		33,854		8.45		34,213		8.40		37,181		7.79
Fixed-rate loans		1,558			22,269		7.62		20,711		7.45		14,691		6.69
Total home equity loans and lines of credit		1,199			56,123		8.12		54,924		8.04		51,872		7.48
Multi-family loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs		(791	)		8,373		7.29		9,164		7.18		9,506		6.13
Other ARMs		306			7,779		7.01		7,473		7.12		6,280		6.27
Total short-term adjustable-rate loans		(485	)		16,152		7.15		16,637		7.15		15,786		6.19
Medium-term adjustable-rate loans(2)		(212	)		11,545		5.78		11,757		5.68		8,791		5.35
Fixed-rate loans		51			1,818		6.39		1,767		6.44		1,574		6.51
Total multi-family loans held in portfolio		(646	)		29,515		6.57		30,161		6.54		26,151		5.93
Total selected loans held in portfolio secured by real estate(3)		(6,590	)		196,699		7.30		203,289		7.17		222,024		6.42
Loans held for sale(4)		(18,330	)		26,394		6.44		44,724		6.32		24,843		6.53
MBS(5):
Short-term adjustable-rate MBS(1)		(93	)		5,963		5.71		6,056		5.68		8,763		5.13
Medium-term adjustable-rate MBS(2)		(6	)		2,453		5.09		2,459		5.08		4,020		4.93
Fixed-rate MBS		(2,025	)		7,523		5.25		9,548		5.27		8,605		5.21
Total MBS(6)		(2,124	)		15,939		5.40		18,063		5.38		21,388		5.13
Total selected loans secured by real estate and MBS	$	(27,044	)	$	239,032		7.08	$	266,076		6.90	$	268,255		6.33

(1)	Short-term is defined as adjustable-rate loans and MBS that reprice within one year.
(2)	Medium-term is defined as adjustable-rate loans and MBS that reprice after one year.
(3)	At March 31, 2007, December 31, 2006, and March 31, 2006, adjustable-rate loans with lifetime caps were $162.24 billion, $169.60 billion, and $193.55 billion with a lifetime weighted average cap rate of 12.31%, 12.29% and 12.16%.
(4)	Excludes credit card and student loans.
(5)	Includes only those securities designated as available-for-sale. Excludes principal-only strips and interest-only strips.
(6)	At March 31, 2007, December 31, 2006, and March 31, 2006, the par value of adjustable-rate MBS with lifetime caps were $8.16 billion, $8.17 billion and $12.92 billion with a lifetime weighted average cap rate of 10.55%, 10.54% and 10.36%.

	Dec. 31, 2006
	to Mar. 31, 2007
Rollforward of Loans Held for Sale
Balance, beginning of period	$	44,970
Mortgage loans originated, purchased and transferred from held in portfolio		30,057
Mortgage loans transferred to held in portfolio		(1,753	)
Mortgage loans sold and other(1)		(46,635	)
Net change in consumer loans held for sale		235
Balance, end of period	$	26,874
Rollforward of Home Loans Held in Portfolio
Balance, beginning of period	$	118,204
Loans originated, purchased and transferred from held for sale		17,007
Loan payments, transferred to held for sale and other		(24,150	)
Balance, end of period	$	111,061

⁽¹⁾ The unpaid principal balance ("UPB") of home loans sold was $45.25 billion for the three months ended March 31, 2007.

WM-13

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
Detail of Revenue from Sales and Servicing of Home Mortgage Loans	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2007			2006			2006			2006			2006
Gain from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments(1):
Gain from home mortgage loans and originated mortgage-backed securities	$	149		$	64		$	206		$	190		$	166
Revaluation gain (loss) from derivatives economically hedging loans held for sale		(54	)		91			(87	)		61			43
Gain from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments		95			155			119			251			209
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue(2)		514			497			525			586			572
Change in MSR fair value due to payments on loans and other		(356	)		(375	)		(410	)		(460	)		(409	)
Net mortgage loan servicing revenue		158			122			115			126			163
Change in MSR fair value due to valuation inputs or assumptions		(96	)		(80	)		(469	)		435			413
Revaluation gain (loss) from derivatives economically hedging MSR		(32	)		(33	)		353			(433	)		(522	)
Adjustment to MSR fair value for MSR sale		-			-			-			(157	)		-
Home mortgage loan servicing revenue (expense), net of MSR valuation
changes and derivative risk management instruments		30			9			(1	)		(29	)		54
Total revenue from sales and servicing of home mortgage loans	$	125		$	164		$	118		$	222		$	263

(1)	Originated mortgage-backed securities represent available-for-sale securities retained on the balance sheet subsequent to the securitization of mortgage loans that were originated by the Company.
(2)	Includes contractualy specified servicing fees, late charges and loan pool expenses (the shortfall of the scheduled interest required to be remitted to investors and that which is collected from borrowers upon payoff).

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

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

WM-14

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2007			2006			2006			2006			2006
Rollforward of Mortgage Servicing Rights(1)
Balance, beginning of period	$	6,193		$	6,288		$	9,162		$	8,736		$	8,041
Home loans:
Additions		760			357			533			607			633
Change in MSR fair value due to payments on loans and other		(356	)		(375	)		(410	)		(460	)		(409	)
Change in MSR fair value due to valuation inputs or
assumptions		(96	)		(80	)		(469	)		435			413
Adjustment to MSR fair value for MSR sale		-			-			-			(157	)		-
Fair value basis adjustment(2)		-			-			-			-			57
Sale of MSR		-			1			(2,527	)		-			-
Net change in commercial real estate MSR		6			2			(1	)		1			1
Balance, end of period	$	6,507		$	6,193		$	6,288		$	9,162		$	8,736
Rollforward of Mortgage Loans Serviced for Others
Balance, beginning of period	$	444,696		$	439,208		$	570,352		$	569,501		$	563,208
Home loans:
Additions		44,526			25,833			29,899			30,949			35,026
Sale of servicing		24			-			(141,842	)		(9	)		-
Loan payments and other		(22,469	)		(20,744	)		(19,288	)		(30,368	)		(29,063	)
Net change in commercial real estate loans		1,005			399			87			279			330
Balance, end of period	$	467,782		$	444,696		$	439,208		$	570,352		$	569,501

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2007		2006		2006		2006		2006
Total Servicing Portfolio
Mortgage loans serviced for others	$	467,782	$	444,696	$	439,208	$	570,352	$	569,501
Consumer loans serviced for others		13,645		12,415		13,112		12,644		12,194
Servicing on retained MBS without MSR		1,082		1,140		1,199		1,262		1,334
Servicing on owned loans		226,217		251,766		245,925		247,489		245,469
Subservicing portfolio		465		84,797		137,089		552		588
Total servicing portfolio	$	709,191	$	794,814	$	836,533	$	832,299	$	829,086

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

(1)	MSR as a percentage of mortgage loans serviced for others was 1.39%, 1.39%, 1.43%, 1.61% and 1.53% at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006.
(2)	Pursuant to the adoption of Statement No. 156 on January 1, 2006, the Company applied the fair value method of accounting to its mortgage servicing assets. The valuation allowance of $914 million was written off against the recorded value of the MSR, and the $57 million difference between the net carrying value and fair value of the MSR was recorded as an increase to the basis of the Company's mortgage servicing rights.
(3)	Weighted average coupon rate was 6.30% at March 31, 2007.

WM-15

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2007			2006			2006			2006			2006
Allowance for Loan and Lease Losses
Balance, beginning of quarter	$	1,630		$	1,550		$	1,663		$	1,642		$	1,695
Allowance transferred to loans held for sale		(148	)		(158	)		(125	)		(87	)		(30	)
Allowance acquired through business combinations/other		7			30			-			-			-
Provision for loan and lease losses		234			344			166			224			82
		1,723			1,766			1,704			1,779			1,747
Loans charged off:
Loans secured by real estate:
Home loans(1)		(35	)		(16	)		(12	)		(11	)		(12	)
Home equity loans and lines of credit(1)		(29	)		(13	)		(8	)		(6	)		(4	)
Subprime mortgage channel(2)		(40	)		(52	)		(47	)		(21	)		(20	)
Home construction(3)		-			(4	)		(3	)		-			-
Other real estate		-			(1	)		(2	)		-			(3	)
Total loans secured by real estate		(104	)		(86	)		(72	)		(38	)		(39	)
Consumer:
Credit card		(96	)		(68	)		(98	)		(94	)		(63	)
Other		(3	)		(3	)		(3	)		(6	)		(7	)
Commercial		(9	)		(9	)		(6	)		(4	)		(8	)
Total loans charged off		(212	)		(166	)		(179	)		(142	)		(117	)
Recoveries of loans previously charged off:
Loans secured by real estate:
Home loans(1)		1			-			-			1			-
Home equity loans and lines of credit(1)		3			2			2			3			1
Subprime mortgage channel(2)		1			4			-			1			1
Multi-family		-			-			-			1			-
Other real estate		-			-			-			1			1
Total loans secured by real estate		5			6			2			7			3
Consumer:
Credit card		16			18			16			15			4
Other		6			3			4			3			4
Commercial		2			3			3			1			1
Total recoveries of loans previously charged off		29			30			25			26			12
Net charge-offs		(183	)		(136	)		(154	)		(116	)		(105	)
Balance, end of quarter	$	1,540		$	1,630		$	1,550		$	1,663		$	1,642
Net charge-offs (annualized) as a percentage
of average loans held in portfolio		0.33	%		0.23	%		0.26	%		0.19	%		0.18	%
Allowance as a percentage of total loans held in portfolio		0.71			0.72			0.64			0.68			0.68

(1)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(2)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in its investment portfolio.
(3)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

WM-16

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

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

(1)	Nonaccrual loans held for sale, which are excluded from the nonaccrual balances presented above, were $195 million, $185 million, $129 million, $122 million, and $201 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006, and March 31, 2006. Loans held for sale are accounted for at lower of aggregate cost or fair value, with valuation changes included as adjustments to noninterest income.
(2)	Credit card loans are exempt under regulatory rules from being classified as nonaccrual because they are charged off when they are determined to be uncollectible, or by the end of the month in which the account becomes 180 days past due.
(3)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(4)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in its investment portfolio.
(5)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(6)	Forclosed real estate securing Government National Mortgage Association (“GNMA”) loans of $72 million, $99 million, $129 million, $142 million, and $167 million at March 31, 2007, December 31, 2006, September 30, 2006, June 30, 2006, and March 31, 2006 have been excluded. These assets are fully collectible as the corresponding GNMA loans are insured by the Federal Housing Administration (“FHA”) or guaranteed by the Department of Veterans Affairs (“VA”).