8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report: April 15, 2008

Washington Mutual, Inc.

(Exact name of registrant as specified in its charter)

Washington	1-14667	91-1653725
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

1301 Second Avenue, Seattle, Washington	98101
(Address of principal executive offices)	(Zip Code)

(206) 461-2000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition

On April 15, 2008, Washington Mutual, Inc. issued a press release and held a conference call regarding its results of operations and financial condition for the quarter ended March 31, 2008. The text of the press release is included as Exhibit 99.1 to this report, the financial supplement to the press release is included as Exhibit 99.2 to this report, and the credit risk management slides supplement for the conference call is included as Exhibit 99.3 to this report. The information included in the press release text, financial supplement and credit risk management slides supplement for the conference call is considered to be “furnished” under the Securities Exchange Act of 1934. The Company will include final financial statements and additional analyses for the quarter ended March 31, 2008, as part of its Form 10-Q covering that period.

Item 9.01  Financial Statements and Exhibits

(d) The following exhibits are being furnished herewith:

Exhibit No.	Exhibit Description
99.1	Press release text of Washington Mutual, Inc. dated April 15, 2008.
99.2	Financial supplement of Washington Mutual, Inc.
99.3	Credit risk management slides supplement for Washington Mutual, Inc. conference call held on April 15, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	WASHINGTON MUTUAL, INC.
Dated: April 15, 2008	By:	/s/ Stewart M. Landefeld
		Stewart M. Landefeld
		Executive Vice President

EX-99.1

Exhibit 99.1

Washington Mutual, Inc.

(NYSE: WM)

April 15, 2008

WaMu Closes $7 Billion Equity Issuance

Strengthening Capital Position

WaMu Reports First Quarter Net Loss Per Share of $1.40

Reflecting Elevated Loan Loss Provisioning but Stable Revenues

Declares Cash Dividend of $0.01

On Apr. 14, WaMu closed the previously announced $7 billion capital issuance to TPG Capital and to other investors, including many of WaMu’s top institutional shareholders. With the proceeds of the offering, the company’s capital ratios are expected to remain well above its targeted levels while it absorbs elevated credit costs in its loan portfolios in 2008 and 2009. At the same time, the company will continue to grow its leading, national banking franchise.

“The completion of this offering demonstrates the confidence these major investors have expressed in WaMu’s underlying value and its growth potential,” said WaMu Chairman and Chief Executive Officer Kerry Killinger. “This substantial new capital will position us for a return to profitability as elevated credit costs subside. With the support of these investors, we have every confidence in our ability to deal with today’s market conditions and restore shareholder value.”

WaMu today announced a first quarter 2008 net loss of $1.14 billion, or $1.40 per diluted share, compared with the fourth quarter net loss of $1.87 billion, or $2.19 per diluted share, and net income of $784 million, or $0.86 per diluted share, during the first quarter of 2007. The quarter’s financial results reflect a higher level of provisioning as steep declines in home values led to further deterioration in mortgage credit markets.

“By issuing $7 billion of additional capital, we have taken decisive actions to withstand this period of unprecedented credit losses, while maintaining strong liquidity,” said Killinger. “We also recently announced plans to further advance our retail-focused strategy by:

 -   Investing in and growing our retail banking stores and call center production;

-   Closing all of our remaining freestanding home loan offices; and

-   Exiting wholesale lending – our broker channel.”

Killinger added that the Retail Bank, Card Services and Commercial businesses again delivered steady performance. During the quarter, retail deposits grew $8.1 billion to $151.7 billion and 256,069 net new checking accounts were opened – a good start to reaching our goal of adding more than a million net new checking accounts this year.

FIRST QUARTER FINANCIAL SUMMARY AND HIGHLIGHTS

Selected Financial Summary	Three Months Ended
($ in millions, except per share data)	Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007			Jun. 30, 2007			Mar. 31, 2007
Income Statement
Net interest income	$	2,175		$	2,047		$	2,014		$	2,034		$	2,081
Provision for loan losses		3,511			1,534			967			372			234
Noninterest income		1,569			1,365			1,379			1,758			1,541
Noninterest expense		2,152			4,166			2,191			2,138			2,105
Minority interest expense		75			65			53			42			43
Income (loss) before income taxes		(1,994	)		(2,353	)		182			1,240			1,240
Income taxes		(856	)		(486	)		(4	)		410			456
Net income (loss)	$	(1,138	)	$	(1,867	)	$	186		$	830		$	784
Diluted earnings (loss) per common share	$	(1.40	)	$	(2.19	)	$	0.20		$	0.92		$	0.86
Balance Sheet
Total assets, end of period	$	319,668		$	327,913		$	330,110		$	312,219		$	319,985
Average total assets		319,928			325,276			320,475			316,004			331,905
Average interest-earning assets		285,265			287,988			283,263			279,836			295,700
Average total deposits		184,304			185,636			198,649			206,765			210,764
Profitability Ratios
Return on average common equity		(23.27	)%		(32.64	)%		3.03	%		13.74	%		12.99	%
Net interest margin		3.05			2.86			2.86			2.91			2.80
Efficiency ratio		57.49			122.13			64.55			56.38			58.13
Nonperforming assets/total assets		2.87			2.17			1.65			1.29			1.02
Tangible equity/total tangible assets		6.40			6.67			5.60			6.07			5.78

·  Net interest margin expands by 19 basis points to 3.05 percent. Net interest income of $2.18 billion was up from the previous quarter as the growth in the net interest margin more than offset the effects of the 1 percent drop in average interest-earning assets. The 19 basis point increase in the net interest margin reflected significantly lower wholesale borrowing costs following the 200 basis point reduction in the Federal Funds rate since the beginning of the year.

·   Depositor and other retail banking fees up 6 percent year-over-year. During the first quarter, WaMu attracted 256,069 net new checking accounts, a good start towards reaching its goal of adding more than 1 million net new accounts this year. This growth, along with the company’s success in building profitable customer relationships through superior service and cross sales, led to a 6 percent year-over-year increase in depositor and other retail banking fees. The decline in depositor fees from the fourth quarter reflected normal seasonality and slowing consumer spending.

·   Market valuation losses decline. Reflecting continued illiquidity of the capital markets, the company reported net losses of $216 million in its trading securities, down from a loss of $267 million in the fourth quarter. Market conditions also resulted in the recording of $67 million in impairment losses on mortgage securities designated as available for sale, which was more than offset by $85 million of net gains on the sale of securities, a significant improvement from fourth quarter net losses of $261 million.

·   Provision increases as economy weakens and home values continue to slide. The company’s first quarter provision for loan losses of $3.51 billion more than doubled from the $1.53 billion provision in the fourth quarter of last year. The larger provision reflects an increase in delinquencies as the economy weakens, as well as a higher level of losses as home prices declined sharply from the start of the year. During the quarter, net charge-offs increased 83 percent over the prior quarter to $1.37 billion.

At the end of the quarter, nonperforming assets as a percentage of total assets grew to 2.87 percent from 2.17 percent at the end of 2007. The quarter’s provision was well in excess of net charge-offs and brought the allowance for loan losses to $4.71 billion at the end of the quarter from $2.57 billion at the end of 2007.

2

·  Noninterest expense down 4 percent. Noninterest expense was $2.15 billion in the quarter. This represents a 4 percent decline when compared with adjusted noninterest expense of $2.25 billion in the fourth quarter. The adjustments exclude the $1.78 billion charge for the writedown of all goodwill within the Home Loans Group and $143 million associated with the resizing of the Home Loans business along with other reductions in corporate support functions. During the quarter, the company reduced the number of employees 7 percent while continuing to grow the retail banking franchise. With the rise in the number of foreclosures and drop in home prices, foreclosure costs increased to $155 million from $133 million in the fourth quarter.

FIRST QUARTER SEGMENT RESULTS

Retail Banking Group

Selected Segment Information	Three Months Ended
($ in millions, except accounts and households)	Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007		Jun. 30, 2007		Mar. 31, 2007
Net interest income	$	1,203		$	1,262		$	1,306	$	1,291	$	1,284
Provision for loan losses		2,300			663			318		91		62
Noninterest income		775			850			833		820		751
Inter-segment revenue		9			5			9		16		18
Noninterest expense		1,221			1,212			1,149		1,131		1,069
Income (loss) before income taxes		(1,534	)		242			681		905		922
Income taxes		(491	)		(39	)		225		340		346
Net income (loss)	$	(1,043	)	$	281		$	456	$	565	$	576
Average loans	$	142,720		$	145,486		$	147,357	$	149,716	$	155,206
Average retail deposits		146,734			142,733			144,921		145,252		144,030
Net change in number of retail checking accounts		256,069			74,493			310,360		406,243		327,776
Net change in retail households		154,000			37,000			161,000		228,000		195,000

·   Results reflect weaker economy. Net interest income was down slightly from the fourth quarter due to the lag in the downward repricing of deposits as short-term interest rates fell. The major component of noninterest income is depositor fees, which totaled $704 million during the first quarter, down from the fourth quarter reflecting normal seasonality, but were up 6 percent year-over-year. Noninterest expense was up slightly as the company continued to invest in its retail banking network.

·  Further declines in home prices leads to increase in provision. The quarter’s net loss reflected the significant increase in the provision as deterioration in the company’s home loan and home equity portfolios accelerated during the quarter.

·  Growth in net new checking accounts on pace to reach annual goal. During the first quarter, the Retail Bank added 256,069 net new checking accounts, up from 74,493 in the fourth quarter as that quarter contained end of year inactive account clean up. Average retail deposits increased by $4.0 billion during the quarter reflecting both money market and CD growth. Retail deposit balances at the end of the quarter were up $8.07 billion to $151.65 billion while the company reduced average consolidated deposit costs by nearly 30 basis points from the prior quarter.

3

Card Services Group (managed basis)

Selected Segment Information	Three Months Ended
($ in millions)	Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007			Jun. 30, 2007			Mar. 31, 2007
Net interest income	$	765		$	694		$	674		$	649		$	641
Provision for loan losses		626			591			611			523			388
Noninterest income		418			315			400			393			474
Inter-segment expense		5			-			-			-			-
Noninterest expense		260			338			364			306			329
Income before income taxes		292			80			99			213			398
Income taxes		93			(12	)		33			80			149
Net income	$	199		$	92		$	66		$	133		$	249
Average managed receivables	$	26,889		$	26,665		$	25,718		$	24,234		$	23,604
Period end managed receivables		26,379			27,239			26,227			24,987			23,597
30+ day managed delinquency rate		6.89	%		6.47	%		5.73	%		5.11	%		5.15	%
Managed net credit losses		9.32			6.90			6.37			6.49			6.31

·  Solid quarter includes VISA settlement. The growth in net interest income was due to lower funding costs driven by a significant drop in short-term interest rates. Noninterest income was up from the prior quarter due to an $85 million benefit received from the company’s share of VISA’s IPO, while noninterest expense was down from the fourth quarter due to slower hiring and delays in marketing spend. Also, noninterest expense during the first quarter included a $38 million partial recovery of the VISA litigation expense recorded in the prior year.

·  Retail channel focus of new account growth. During the quarter, Card Services opened 666,407 new credit card accounts, 13,696 more than in the prior quarter as the company directed its card growth efforts to its core retail banking customer base and scaled back promotions on a national level to enhance the risk profile of the portfolio. WaMu’s Retail Bank customers accounted for 38 percent of total account production during the first quarter. Total managed receivables decreased 3 percent during the quarter to $26.38 billion as a result of lower purchase volumes with the softening economy and the seasonal increase in payments.

·   Credit losses up with slowing economy. Managed net credit losses and the 30+ day managed delinquency rate increased from prior periods reflecting the weakening economy and higher unemployment. The increase in the provision was also driven by the higher delinquency levels, partially offset by the decline in ending managed receivables.

Commercial Group

Selected Segment Information	Three Months Ended
($ in millions)	Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007			Jun. 30, 2007		Mar. 31, 2007
Net interest income	$	196		$	200		$	200		$	208	$	211
Provision for loan losses		29			19			12			2		(10	)
Noninterest income		(8	)		(10	)		(34	)		63		15
Noninterest expense		68			66			67			74		74
Income before income taxes		91			105			87			195		162
Income taxes		29			11			28			73		61
Net income	$	62		$	94		$	59		$	122	$	101
Loan volume	$	2,835		$	4,800		$	4,054		$	4,348	$	3,671
Average loans		40,934			40,129			38,333			38,789		38,641

·   Solid quarterly results. Net interest income of $196 million was down modestly from the prior quarter due to lower noninterest bearing deposits. Noninterest income slightly improved from the prior quarter as a result of lower trading and hedging losses, partially offset by lower loan sales volume.

4

·   Provision up slightly. The provision for loan losses of $29 million reflected increased delinquencies and portfolio growth, as the company holds more of its loan production in portfolio.

·   Reduced loan volume. Loan volume of $2.84 billion was down 41 percent from the prior quarter reflecting secondary market illiquidity and prudent management of loan portfolio growth.

Home Loans Group

Selected Segment Information	Three Months Ended
($ in millions)	Mar. 31, 2008			Dec. 31, 2007			Sept. 30, 2007			Jun. 30, 2007			Mar. 31, 2007
Net interest income	$	250		$	229		$	191		$	211		$	244
Provision for loan losses		907			511			323			101			49
Noninterest income		319			329			183			389			161
Inter-segment expense		4			5			9			16			18
Noninterest expense*		499			2,319			554			547			522
Income (loss) before income taxes		(841	)		(2,277	)		(512	)		(64	)		(184	)
Income taxes		(269	)		(312	)		(169	)		(24	)		(69	)
Net (loss)	$	(572	)	$	(1,965	)	$	(343	)	$	(40	)	$	(115	)
Loan volume	$	13,774		$	19,089		$	26,434		$	35,938		$	33,780
Average loans		55,672			52,278			43,737			43,312			53,254
*Includes $1.78 billion goodwill charge in fourth quarter 2007.

·   Improved quarter for Home Loans. Net interest income was up slightly from the fourth quarter reflecting lower funding costs that were largely offset by lower loan yields. Noninterest income was down slightly from the prior quarter due to additional writedowns on trading securities resulting from the continued market dislocation and higher MSR hedging costs. The impact of these two items was partially offset by improved gain on sale of $122 million during the quarter, which included $79 million in gains from the adoption of a new accounting pronouncement. Despite the increase in foreclosure costs, expenses were down 8 percent from the fourth quarter (excluding the $1.78 billion goodwill charge) due to actions taken in the fourth quarter to resize the Home Loans business in response to the smaller mortgage market. The number of employees decreased to 9,159 at the end of the first quarter from 11,812 at the end of 2007, and 13,449 as of Mar. 31, 2007.

·   Provision continues to reflect housing stress. Increasing subprime delinquencies along with higher loss severity rates drove the loan loss provision to $907 million from $511 million in the prior quarter.

·   Home loan volume reflects change in mix. Home loan segment volume of $13.77 billion in the first quarter was down from the prior quarter due to the decline in Option ARM, hybrid and home equity lending. Fixed-rate loans comprised the majority of first quarter volume as the company placed more emphasis on originating GSE conforming loans and borrowers took advantage of lower interest rates.

·  Further consolidation of Home Loans business. The company recently announced plans to further consolidate its Home Loans business, including:

o   Exiting its wholesale channel and closing its home loan centers;

o   Focusing its mortgage operations in its core retail banking network and direct to consumer channel;

o   Consolidating certain loan fulfillment centers, resulting in 3 loan fulfillment center locations.

5

COMPANY UPDATES

·   On Apr. 15, WaMu’s Board of Directors declared a cash dividend of $0.01 per share on the company’s common stock. Dividends on the common stock are payable on May 15, 2008 to shareholders of record as of Apr. 30, 2008. In addition to declaring a dividend on the company’s common stock, the company will pay a dividend of $0.2528 per depository share of Series K Preferred Stock to be payable on Jun. 16, 2008 to holders of record on Jun. 2, 2008, a dividend of $19.8056 per share of Series R Preferred Stock to be payable on Jun. 16, 2008 to holders of record on Jun. 2, 2008, and a dividend of $0.01 per share, on an as converted basis, on the company’s Series S and Series T Preferred Stock to be payable on May 15, 2008 to shareholders of record as of Apr. 30, 2008.

·   On Apr. 15, WaMu director, Mary E. Pugh, who served on the WaMu Board of Directors for nine years and as Chair of its Finance Committee for three years, resigned from the Board.

·   On Apr. 15, the term of WaMu director, Anne V. Farrell, expired.  Ms. Farrell, who served on the Board for thirteen years, did not stand for reelection because she reached the Board’s mandatory retirement age.

·   On Apr. 8, WaMu’s Board of Directors announced its intention to appoint TPG Partner David Bonderman (65) to the company’s Board. In addition, Larry Kellner (49), chairman and chief executive officer of Continental Airlines and former executive vice president and chief financial officer of American Savings Bank, will become a board observer at TPG’s request.

·   On Mar. 14, the United States Court of Federal Claims published its written decision in the case of Anchor Savings Bank, FSB vs. The United States of America, awarding Washington Mutual Bank $382 million for damages, and an additional amount for taxes that will be determined by the court. A significant portion of the award will benefit outstanding warrants. The government is expected to appeal the decision, a lengthy process that could delay, reduce or negate the award.

·   On Mar. 3, WaMu’s Board of Directors announced the election of Stephen Chazen (61) to the company’s Board. Under Washington law, Chazen will stand for re-election with other directors at the company’s annual shareholders’ meeting. Chazen has been designated a member of the Board’s Audit and Finance Committees. Chazen serves as president and chief financial officer of Occidental Petroleum Corporation, an international company based in Los Angeles.

ABOUT WAMU

WaMu, through its subsidiaries, is one of the nation’s leading consumer and small business banks. At Mar. 31, 2008, WaMu and its subsidiaries had assets of $319.67 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate approximately 2,500 consumer and small business banking stores throughout the nation. WaMu’s financial reports and news releases are available at www.wamu.com/ir.

WEBCAST INFORMATION

A conference call to discuss the company’s financial results will be held on Tuesday, Apr. 15, 2008, at 6:30 p.m. ET and will be hosted by Kerry Killinger, chairman and chief executive officer and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-391-7808. Participants calling from outside the United States may dial 630-395-0029. The passcode “WaMu” is required to access the call. Via the Internet, the conference call is available on the Investor Relations portion of the company’s web site at www.wamu.com/ir. A recording of the conference call will be available from approximately 8:30 p.m. ET on Tuesday, Apr. 15, 2008 through 11:59 p.m. on Friday, Apr. 25, 2008. The recorded message will be available at 866-360-3314. Callers from outside the United States may dial 203-369-0168.

6

CAUTIONARY STATEMENTS

This presentation contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this document that are not historical facts. When used in this presentation, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or words of similar meaning, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed under the heading “Factors That May Affect Future Results” in Washington Mutual’s 2007 Annual Report on Form 10-K which include:

·   Economic conditions that negatively affect housing prices and the job market that have resulted, and may continue to result, in a deterioration in credit quality of the Company's loan portfolio.

·   Access to market-based liquidity sources that may be negatively impacted if market conditions persist or if further ratings downgrades occur and could lead to increased funding costs and reduced gain on sale.

·   The need to raise additional capital due to significant additional losses which could have a dilutive effect on existing shareholders and could affect the ability to pay dividends.

·   Changes in interest rates.

·   Features of certain of the Company’s loan products that may result in increased credit risk.  

·   Estimates used by the Company to determine the fair value of certain of our assets that may prove to be imprecise and result in significant changes in valuation.

·   Risks related to the Company’s credit card operations that could adversely affect the credit card portfolio and our ability to continue growing the credit card business.

·   Operational risk which may result in incurring financial and reputational losses.

·   Failure to comply with laws and regulations.

·   Changes in the regulation of financial services companies, housing government-sponsored enterprises and credit card lenders.

·   General business, economic and market conditions and continued deterioration in these conditions.

·   Damage to the Company’s professional reputation and business as a result of allegations and negative public opinion as well as pending and threatened litigation.

·   Significant competition from banking and nonbanking companies.

There are other factors not described in our 2007 Form 10-K which are beyond the Company’s ability to anticipate or control that could cause results to differ.

####

Media Contact	Investor Relations Contact
Derek Aney	Alan Magleby
206-500-6094(Seattle)	206-500-4148 (Seattle)
212-326-6075 (New York)	212-702-6955 (New York)
derek.aney@wamu.net	alan.magleby@wamu.net

7

EX-99.2

Exhibit 99.2

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,
	2008			2007			2007			2007			2007
PROFITABILITY
Net income (loss)	$	(1,138	)	$	(1,867	)	$	186		$	830		$	784
Net interest income		2,175			2,047			2,014			2,034			2,081
Noninterest income		1,569			1,365			1,379			1,758			1,541
Noninterest expense		2,152			4,166			2,191			2,138			2,105
Diluted earnings per common share	$	(1.40	)	$	(2.19	)	$	0.20		$	0.92		$	0.86
Diluted weighted average number of common shares outstanding
(in thousands)		856,923			855,532			876,002			893,090			899,706
Net interest margin on a taxable-equivalent basis(1)		3.05	%		2.86	%		2.86	%		2.91	%		2.80	%
Dividends declared per common share	$	0.15		$	0.56		$	0.56		$	0.55		$	0.54
Book value per common share (period end)(2)		21.74			24.55			27.18			27.27			27.30
Return on average assets		(1.42	) %		(2.30	) %		0.23	%		1.05	%		0.95	%
Return on average common equity		(23.27	)		(32.64	)		3.03			13.74			12.99
Efficiency ratio(3)		57.49			122.13			64.55			56.38			58.13
ASSET QUALITY
Nonperforming assets(4) to total assets		2.87	%		2.17	%		1.65	%		1.29	%		1.02	%
Allowance as a percentage of loans held in portfolio		1.94			1.05			0.80			0.73			0.71
CREDIT PERFORMANCE
Provision for loan losses	$	3,511		$	1,534		$	967		$	372		$	234
Net charge-offs		1,368			747			421			271			183
CAPITAL ADEQUACY
Capital Ratios for WMI:
Tangible equity to total tangible assets(5)		6.40	%		6.67	%		5.60	%		6.07	%		5.78	%
Tier 1 capital to average total assets (leverage)(6)		6.56			6.84			5.86			6.09			5.87
Total risk-based capital to total risk-weighted assets(6)		12.24			12.34			10.67			11.04			11.17
Capital Ratios for WMB (well-capitalized minimum)(7):
Tier 1 capital to adjusted total assets (leverage) (5.00%)		6.94			7.05			6.41			7.52			7.04
Adjusted Tier 1 capital to total risk-weighted assets (6.00%)		8.11			8.33			7.62			8.77			8.32
Total risk-based capital to total risk-weighted assets (10.00%)		12.20			12.22			11.26			12.80			12.37
SUPPLEMENTAL DATA
Average balance sheet:
Total loans held in portfolio	$	244,186		$	241,690		$	227,348		$	216,004		$	222,617
Total interest-earning assets		285,265			287,988			283,263			279,836			295,700
Total assets		319,928			325,276			320,475			316,004			331,905
Total deposits		184,304			185,636			198,649			206,765			210,764
Total stockholders' equity		24,066			23,947			23,994			24,436			24,407
Period-end balance sheet:
Total loans held in portfolio, net		238,100			241,815			235,243			213,434			215,481
Total assets		319,668			327,913			330,110			312,219			319,985
Total deposits		188,049			181,926			194,280			201,380			210,209
Total stockholders' equity		22,449			24,584			23,941			24,210			24,578
Common shares outstanding at the end of period (in thousands)(8)		882,610			869,036			868,802			875,722			888,111
Employees at end of period		45,883			49,403			49,748			49,989			49,693
_______________________

(1)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on U.S. states and political subdivisions securities and loans related to the Company's community lending and investment activities.  The federal statutory tax rate was 35% for the periods presented.
(2)	Excludes six million shares held in escrow.
(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 cash flow hedging instruments, 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.  Minority interests of $3.91 billion, $3.92 billion, $2.94 billion, $2.94 billion and $2.45 billion at March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007 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, 2008 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,
	2008			2007			2007			2007			2007
Interest Income
Loans held for sale	$	87		$	160		$	248		$	421		$	562
Loans held in portfolio		3,954			4,156			3,992			3,786			3,900
Available-for-sale securities		357			380			392			351			332
Trading assets		116			101			108			108			113
Other interest and dividend income		77			79			116			82			101
Total interest income		4,591			4,876			4,856			4,748			5,008
Interest Expense
Deposits		1,329			1,464			1,650			1,723			1,772
Borrowings		1,087			1,365			1,192			991			1,155
Total interest expense		2,416			2,829			2,842			2,714			2,927
Net interest income		2,175			2,047			2,014			2,034			2,081
Provision for loan losses		3,511			1,534			967			372			234
Net interest income (expense) after provision for loan losses		(1,336	)		513			1,047			1,662			1,847
Noninterest Income
Revenue from sales and servicing of home mortgage loans		411			358			161			300			125
Revenue from sales and servicing of consumer loans		248			375			418			403			443
Depositor and other retail banking fees		704			769			740			720			665
Credit card fees		181			214			209			183			172
Securities fees and commissions		58			63			67			70			60
Insurance income		30			29			29			29			29
Loss on trading assets		(216	)		(267	)		(153	)		(145	)		(108	)
Gain (loss) on other available-for-sale securities		18			(261	)		(99	)		7			35
Other income		135			85			7			191			120
Total noninterest income		1,569			1,365			1,379			1,758			1,541
Noninterest Expense
Compensation and benefits		914			877			910			977			1,002
Occupancy and equipment		358			488			371			354			376
Telecommunications and outsourced information services		130			134			135			132			129
Depositor and other retail banking losses		63			72			71			58			61
Advertising and promotion		105			108			125			113			98
Professional fees		39			89			52			55			38
Foreclosed asset expense		155			133			82			56			39
Goodwill impairment charge		-			1,775			-			-			-
Other expense		388			490			445			393			362
Total noninterest expense		2,152			4,166			2,191			2,138			2,105
Minority interest expense		75			65			53			42			43
Income (loss) before income taxes		(1,994	)		(2,353	)		182			1,240			1,240
Income taxes		(856	)		(486	)		(4	)		410			456
Net Income (Loss)	$	(1,138	)	$	(1,867	)	$	186		$	830		$	784
Net Income (Loss) Applicable to Common Stockholders	$	(1,203	)	$	(1,875	)	$	178		$	822		$	777
Earnings Per Common Share:
Basic	$	(1.40	)	$	(2.19	)	$	0.21		$	0.95		$	0.89
Diluted		(1.40	)		(2.19	)		0.20			0.92			0.86
Dividends declared per common share		0.15			0.56			0.56			0.55			0.54
Basic weighted average number of common shares outstanding (in thousands)		856,923			855,518			857,005			868,968			874,816
Diluted weighted average number of common shares outstanding (in thousands)		856,923			855,532			876,002			893,090			899,706

WM - - 3

Washington Mutual, Inc.
Consolidated Statements of Financial Condition
(dollars in millions)
(unaudited)
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2008			2007			2007			2007			2007
Assets
Cash and cash equivalents	$	10,089		$	9,560		$	11,370		$	4,167		$	4,047
Federal funds sold and securities purchased under agreements to resell		2,527			1,877			4,042			3,267			8,279
Trading assets		2,483			2,768			3,797			5,534			5,290
Available-for-sale securities, total amortized cost of $24,907, $27,789,
$28,725, $28,934 and $22,921:
Mortgage-backed securities		18,140			19,249			20,562			20,393			16,543
Investment securities		5,466			8,291			7,844			7,947			6,296
Total available-for-sale securities		23,606			27,540			28,406			28,340			22,839
Loans held for sale		4,941			5,403			7,586			19,327			26,874
Loans held in portfolio		242,814			244,386			237,132			214,994			217,021
Allowance for loan losses		(4,714	)		(2,571	)		(1,889	)		(1,560	)		(1,540	)
Loans held in portfolio, net		238,100			241,815			235,243			213,434			215,481
Investment in Federal Home Loan Banks		3,514			3,351			2,808			1,596			2,230
Mortgage servicing rights		5,726			6,278			6,794			7,231			6,507
Goodwill		7,283			7,287			9,062			9,056			9,052
Other assets		21,399			22,034			21,002			20,267			19,386
Total assets	$	319,668		$	327,913		$	330,110		$	312,219		$	319,985
Liabilities
Deposits:
Noninterest-bearing deposits	$	31,911		$	30,389		$	31,341		$	33,557		$	34,367
Interest-bearing deposits		156,138			151,537			162,939			167,823			175,842
Total deposits		188,049			181,926			194,280			201,380			210,209
Federal funds purchased and commercial paper		250			2,003			2,482			3,390			563
Securities sold under agreements to repurchase		215			4,148			4,732			9,357			8,323
Advances from Federal Home Loan Banks		64,009			63,852			52,530			21,412			24,735
Other borrowings		32,710			38,958			40,887			40,313			39,430
Other liabilities		8,072			8,523			8,313			9,212			9,694
Minority interests		3,914			3,919			2,945			2,945			2,453
Total liabilities		297,219			303,329			306,169			288,009			295,407
Stockholders' Equity
Preferred stock		3,392			3,392			492			492			492
Capital surplus - common stock		2,646			2,630			2,575			2,715			3,121
Accumulated other comprehensive loss		(1,141	)		(359	)		(390	)		(568	)		(268	)
Retained earnings		17,552			18,921			21,264			21,571			21,233
Total stockholders' equity		22,449			24,584			23,941			24,210			24,578
Total liabilities and stockholders' equity	$	319,668		$	327,913		$	330,110		$	312,219		$	319,985

WM - - 4

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)
	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2008			2007			2007			2007			2007
Stockholders' Equity Rollforward
Balance, beginning of period	$	24,584		$	23,941		$	24,210		$	24,578		$	26,969
Net income (loss)		(1,138	)		(1,867	)		186			830			784
Cumulative effect from the adoption of new accounting pronouncements		(36	)(1)		-			-			-			(6	)(2)
Other comprehensive income (loss), net of income taxes		(782	)		31			177			(300	)		19
Cash dividends declared on common stock		(130	)		(482	)		(485	)		(484	)		(477	)
Cash dividends declared on preferred stock		(65	)		(8	)		(8	)		(8	)		(7	)
Cash dividends returned(3)		-			15			-			-			-
Common stock repurchased and retired(4)		-			-			(199	)		(500	)		(2,797	)
Common stock issued		16			54			60			94			93
Preferred stock issued		-			2,900			-			-			-
Balance, end of period	$	22,449		$	24,584		$	23,941		$	24,210		$	24,578

(1)	As of January 1, 2008, the Company adopted FASB Statement No. 157, Fair Value Measurements ("Statement No. 157"), EITF Issue No. 06-4, Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements ("Issue 06-4") and EITF Issue No. 06-10, Accounting for Collateral Assignment Split-Dollar Life Insurance Arrangements ("Issue 06-10").  The cumulative effect from the adoption of Statement No. 157, Issue 06-4 and Issue 06-10 was $1 million, $(35) million and $(2) million.
(2)	As of January 1, 2007, the Company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes.
(3)	Represents accumulated dividends on shares returned from escrow.
(4)	The Company repurchased zero shares of its common stock during the three months ended March 31, 2008 and December 31, 2007, and 7.2 million, 13.5 million and  61.4 million shares of its common stock during the three months ended September 30, 2007, June 30, 2007 and March 31, 2007.  At March 31, 2008, the total remaining common stock repurchase authority was 47.5 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,
		2008			2007			2007			2007			2007
RETAIL BANKING GROUP
Condensed income statement:
Net interest income		$	1,203		$	1,262		$	1,306		$	1,291		$	1,284
Provision for loan losses			2,300			663			318			91			62
Noninterest income			775			850			833			820			751
Inter-segment revenue			9			5			9			16			18
Noninterest expense			1,221			1,212			1,149			1,131			1,069
Income before income taxes			(1,534	)		242			681			905			922
Income taxes			(491	)		(39	)		225			340			346
Net income		$	(1,043	)	$	281		$	456		$	565		$	576
Performance and other data:
Efficiency ratio			61.48	%		57.25	%		53.48	%		53.19	%		52.08	%
Average loans		$	142,720		$	145,486		$	147,357		$	149,716		$	155,206
Average assets			151,609			155,100			157,194			159,515			165,044
Average deposits:
Checking deposits:
Noninterest bearing			23,425			22,748			22,860			23,107			22,331
Interest bearing			24,306			26,328			28,406			30,282			31,739
Total checking deposits			47,731			49,076			51,266			53,389			54,070
Savings and money market deposits			47,904			44,623			43,524			43,814			43,103
Time deposits			51,099			49,034			50,131			48,049			46,857
Average deposits			146,734			142,733			144,921			145,252			144,030
Loan volume			1,238			3,417			5,172			5,760			4,576
Employees at end of period			28,736			29,147			28,636			28,523			28,229
CARD SERVICES GROUP
Managed basis(1)
Condensed income statement:
	Net interest income	$	765		$	694		$	674		$	649		$	641
	Provision for loan losses		626			591			611			523			388
	Noninterest income		418			315			400			393			474
	Inter-segment expense		5			-			-			-			-
	Noninterest expense		260			338			364			306			329
	Income before income taxes		292			80			99			213			398
	Income taxes		93			(12	)		33			80			149
Net income		$	199		$	92		$	66		$	133		$	249
Performance and other data:
	Efficiency ratio		22.04	%		33.51	%		33.91	%		29.33	%		29.51	%
	Average loans	$	26,889		$	26,665		$	25,718		$	24,234		$	23,604
	Average assets		29,244			28,961			28,206			26,762			26,039
	Employees at end of period		2,881			2,860			2,878			2,827			2,579
Securitization adjustments
Condensed income statement:
	Net interest income	$	(503	)	$	(454	)	$	(456	)	$	(459	)	$	(414	)
	Provision for loan losses		(470	)		(335	)		(288	)		(294	)		(282	)
	Noninterest income		33			119			168			165			132
Performance and other data:
	Average loans		(17,391	)		(16,007	)		(14,488	)		(13,888	)		(12,507	)
	Average assets		(15,075	)		(14,180	)		(12,841	)		(12,287	)		(10,961	)
Adjusted basis
Condensed income statement:
	Net interest income	$	262		$	240		$	218		$	190		$	227
	Provision for loan losses		156			256			323			229			106
	Noninterest income		451			434			568			558			606
	Inter-segment expense		5			-			-			-			-
	Noninterest expense		260			338			364			306			329
	Income before income taxes		292			80			99			213			398
	Income taxes		93			(12	)		33			80			149
Net income		$	199		$	92		$	66		$	133		$	249
Performance and other data:
	Average loans	$	9,498		$	10,658		$	11,230		$	10,346		$	11,097
	Average assets		14,169			14,781			15,365			14,475			15,078
(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,
	2008			2007			2007			2007			2007
COMMERCIAL GROUP
Condensed income statement:
Net interest income	$	196		$	200		$	200		$	208		$	211
Provision for loan losses		29			19			12			2			(10	)
Noninterest income		(8	)		(10	)		(34	)		63			15
Noninterest expense		68			66			67			74			74
Income before income taxes		91			105			87			195			162
Income taxes		29			11			28			73			61
Net income	$	62		$	94		$	59		$	122		$	101
Performance and other data:
Efficiency ratio		36.09	%		34.49	%		40.26	%		27.42	%		32.85	%
Average loans	$	40,934		$	40,129		$	38,333		$	38,789		$	38,641
Average assets		43,004			42,336			40,663			41,184			41,005
Average deposits		7,474			9,762			13,816			15,294			12,028
Loan volume		2,835			4,800			4,054			4,348			3,671
Employees at end of period		1,358			1,502			1,524			1,508			1,459
HOME LOANS GROUP
Condensed income statement:
Net interest income	$	250		$	229		$	191		$	211		$	244
Provision for loan losses		907			511			323			101			49
Noninterest income		319			329			183			389			161
Inter-segment expense		4			5			9			16			18
Noninterest expense		499			2,319			554			547			522
Loss before income taxes		(841	)		(2,277	)		(512	)		(64	)		(184	)
Income taxes		(269	)		(312	)		(169	)		(24	)		(69	)
Net loss	$	(572	)	$	(1,965	)	$	(343	)	$	(40	)	$	(115	)
Performance and other data:
Efficiency ratio		88.26	%		419.52	%		151.63	%		93.71	%		134.82	%
Average loans	$	55,672		$	52,278		$	43,737		$	43,312		$	53,254
Average assets		66,841			66,172			61,106			60,342			71,382
Average deposits		5,469			6,714			7,780			8,372			8,501
Loan volume		13,774			19,089			26,434			35,938			33,780
Employees at end of period		9,159			11,812			12,668			13,150			13,449
CORPORATE SUPPORT/TREASURY AND OTHER
Condensed income statement:
Net interest income (expense)	$	132		$	(18	)	$	(39	)	$	(4	)	$	(22	)
Provision for loan losses		119			85			(9	)		(51	)		27
Noninterest income		86			(201	)		(91	)		60			94
Noninterest expense		104			231			57			80			111
Minority interest expense		75			65			53			42			43
Loss before income taxes		(80	)		(600	)		(231	)		(15	)		(109	)
Income taxes		(68	)		(157	)		(46	)		(37	)		(69	)
Net income (loss)	$	(12	)	$	(443	)	$	(185	)	$	22		$	(40	)
Performance and other data:
Average loans	$	1,556		$	1,482		$	1,420		$	1,367		$	1,345
Average assets		45,525			48,173			47,532			41,789			40,875
Average deposits		24,627			26,427			32,132			37,847			46,205
Loan volume		143			171			113			72			107
Employees at end of period		3,749			4,082			4,042			3,981			3,977
(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,
	2008			2007			2007			2007			2007
RECONCILING ADJUSTMENTS
Condensed income statement:
Net interest income(1)	$	132		$	134		$	138		$	138		$	137
Noninterest income (expense)(2)		(54	)		(37	)		(80	)		(132	)		(86	)
Income before income taxes		78			97			58			6			51
Income taxes(3)		(150	)		23			(75	)		(22	)		38
Net income	$	228		$	74		$	133		$	28		$	13
Performance and other data:
Average loans(4)	$	(1,220	)	$	(1,286	)	$	(1,385	)	$	(1,301	)	$	(1,479	)
Average assets(4)		(1,220	)		(1,286	)		(1,385	)		(1,301	)		(1,479	)
TOTAL CONSOLIDATED
Condensed income statement:
Net interest income	$	2,175		$	2,047		$	2,014		$	2,034		$	2,081
Provision for loan losses		3,511			1,534			967			372			234
Noninterest income		1,569			1,365			1,379			1,758			1,541
Noninterest expense		2,152			4,166			2,191			2,138			2,105
Minority interest expense		75			65			53			42			43
Income (loss) before income taxes		(1,994	)		(2,353	)		182			1,240			1,240
Income taxes		(856	)		(486	)		(4	)		410			456
Net income (loss)	$	(1,138	)	$	(1,867	)	$	186		$	830		$	784
Performance and other data:
Efficiency ratio		57.49	%		122.13	%		64.55	%		56.38	%		58.13	%
Average loans	$	249,160		$	248,747		$	240,692		$	242,229		$	258,064
Average assets		319,928			325,276			320,475			316,004			331,905
Average deposits		184,304			185,636			198,649			206,765			210,764
Loan volume		17,990			27,477			35,773			46,118			42,134
Employees at end of period		45,883			49,403			49,748			49,989			49,693
__________________________

(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.
(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, 2008							Dec. 31, 2007							Mar. 31, 2007
						Interest							Interest							Interest
						Income/							Income/							Income/
	Balance		Rate			Expense		Balance		Rate			Expense		Balance		Rate			Expense
Average Balances and Weighted Average Interest Rates
Assets (Taxable-Equivalent Basis(1))
Interest-earning assets(2):
Federal funds sold and securities purchased under
agreements to resell	$	2,118		3.48	%	$	18	$	1,673		4.65	%	$	20	$	3,930		5.39	%	$	52
Trading assets		2,726		17.10			116		3,114		12.89			101		5,594		8.10			113
Available-for-sale securities(3):
Mortgage-backed securities		18,945		5.80			275		20,104		5.47			275		18,460		5.48			253
Investment securities		6,316		5.39			85		8,029		5.35			107		6,180		5.23			81
Loans held for sale		4,974		6.98			87		7,057		8.99			160		35,447		6.37			562
Loans held in portfolio:
Loans secured by real estate:
Home loans(4)(5)		109,773		6.27			1,720		108,496		6.58			1,785		97,365		6.45			1,570
Home equity loans and lines of credit(5)		61,196		6.28			956		60,135		7.15			1,083		53,014		7.56			989
Subprime mortgage channel(6)		18,106		6.33			287		19,341		6.38			309		20,612		6.67			344
Home construction(7)		2,142		7.65			41		2,136		6.99			37		2,061		6.55			34
Multi-family		31,962		6.35			507		31,331		6.56			514		29,826		6.58			491
Other real estate		9,797		6.49			158		8,969		6.89			155		6,763		7.03			117
Total loans secured by real estate		232,976		6.31			3,669		230,408		6.73			3,883		209,641		6.79			3,545
Consumer:
Credit card		9,024		10.75			241		9,134		9.76			225		10,904		11.57			311
Other		195		17.47			8		213		15.77			8		267		12.96			9
Commercial		1,991		7.36			37		1,935		8.47			41		1,805		7.96			36
Total loans held in portfolio		244,186		6.49			3,955		241,690		6.86			4,157		222,617		7.04			3,901
Other		6,000		3.94			59		6,321		3.74			59		3,472		5.77			49
Total interest-earning assets		285,265		6.45			4,595		287,988		6.76			4,879		295,700		6.81			5,011
Noninterest-earning assets:
Mortgage servicing rights		5,882							6,472							6,304
Goodwill		7,286							8,907							9,054
Other assets		21,495							21,909							20,847
Total assets	$	319,928						$	325,276						$	331,905
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	24,384		1.75			107	$	26,425		2.15			143	$	31,821		2.63			206
Savings and money market deposits		55,951		2.73			379		54,622		3.14			432		54,862		3.27			443
Time deposits		74,225		4.57			843		73,741		4.78			889		91,631		4.97			1,123
Total interest-bearing deposits		154,560		3.46			1,329		154,788		3.75			1,464		178,314		4.03			1,772
Federal funds purchased and commercial paper		1,009		3.62			9		3,385		4.96			42		3,846		5.48			52
Securities sold under agreements to repurchase		885		3.78			8		4,273		4.80			52		12,098		5.48			164
Advances from Federal Home Loan Banks		62,799		4.29			670		56,146		5.13			726		36,051		5.38			478
Other		34,048		4.71			400		39,268		5.52			545		32,808		5.67			461
Total interest-bearing liabilities		253,301		3.83			2,416		257,860		4.36			2,829		263,117		4.51			2,927
Noninterest-bearing sources:
Noninterest-bearing deposits		29,744							30,848							32,450
Other liabilities		8,902							8,956							9,482
Minority interests		3,915							3,665							2,449
Stockholders' equity		24,066							23,947							24,407
Total liabilities and stockholders' equity	$	319,928						$	325,276						$	331,905
Net interest spread and net interest income on a  taxable-equivalent basis				2.62		$	2,179				2.40		$	2,050				2.30		$	2,084
Impact of noninterest-bearing sources				0.43							0.46							0.50
Net interest margin on a taxable-equivalent basis				3.05							2.86							2.80
_______________________________

(1)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on U.S. states and political subdivisions securities and loans related to the Company’s community lending and investment activities.  The federal statutory tax rate was 35% for the periods presented.
(2)	Nonaccrual assets and related income, if any, are included in their respective categories.
(3)	The average balance and yield are based on average amortized cost balances.
(4)	Capitalized interest recognized in earnings that resulted from negative amortization within the Option ARM portfolio totaled $336 million, $367 million and $361 million for the three months ended March 31, 2008, December 31, 2007 and March 31, 2007.
(5)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(6)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.
(7)	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 - - 9

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)
	Change from
	Dec. 31, 2007			Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	to Mar. 31, 2008			2008		2007		2007		2007		2007
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing	$	1,655		$	25,131	$	23,476	$	23,721	$	24,142	$	24,400
Interest bearing		(2,082	)		23,631		25,713		27,277		29,592		31,523
Total checking deposits		(427	)		48,762		49,189		50,998		53,734		55,923
Savings and money market deposits		6,330			51,317		44,987		43,360		43,617		44,058
Time deposits(1)		2,164			51,574		49,410		50,740		48,140		47,262
Total retail deposits		8,067			151,653		143,586		145,098		145,491		147,243
Commercial business and other deposits		(862	)		10,405		11,267		16,536		19,186		17,741
Brokered deposits:
Consumer		(350	)		17,739		18,089		17,484		17,153		18,995
Institutional		(804	)		1,711		2,515		8,107		11,025		17,256
Custodial and escrow deposits(2)		72			6,541		6,469		7,055		8,525		8,974
Total deposits	$	6,123		$	188,049	$	181,926	$	194,280	$	201,380	$	210,209

(1)	Weighted average remaining maturity of time deposits was 6 months at March 31, 2008, 7 months at December 31, 2007 and September 30, 2007, 8 months at June 30, 2007 and 9 months at March 31, 2007.
(2)	Substantially all custodial and escrow deposits reside in noninterest-bearing checking accounts.

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2008		2007		2007		2007		2007
Retail Deposit Accounts (number of accounts)
Noninterest-bearing checking		11,271,406		10,960,270		10,824,548		10,449,887		9,983,313
Interest-bearing checking		1,218,606		1,273,673		1,334,902		1,399,203		1,459,534
Savings and money market		7,293,256		7,118,349		7,087,311		6,936,870		6,708,784
Total transaction accounts, end of period(1)		19,783,268		19,352,292		19,246,761		18,785,960		18,151,631
Net change in noninterest-bearing checking accounts		311,136		135,722		374,661		466,574		371,607
Net change in checking accounts		256,069		74,493		310,360		406,243		327,776
_______________________________

(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,
	2008			2007			2007			2007			2007
Retail Banking Stores
Stores, beginning of period		2,257			2,212			2,235			2,228			2,225
Stores opened during the quarter		9			50			10			11			6
Stores closed during the quarter		(5	)		(5	)		(33	)		(4	)		(3	)
Stores, end of period		2,261			2,257			2,212			2,235			2,228

WM - - 10

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)
	Quarter Ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2008		2007		2007		2007		2007
Loan Volume
Home loans:
Short-term adjustable-rate loans(1):
Option ARMs	$	231	$	3,945	$	6,174	$	7,888	$	7,777
Other ARMs		19		10		111		22		36
Total short-term adjustable-rate loans		250		3,955		6,285		7,910		7,813
Medium-term adjustable-rate loans(2)		3,810		5,972		9,868		14,953		13,567
Fixed-rate loans		9,427		7,382		6,176		8,172		8,824
Total home loan volume		13,487		17,309		22,329		31,035		30,204
Home equity loans and lines of credit		1,297		4,619		8,544		9,988		7,600
Home construction(3)		128		378		483		426		298
Multi-family		2,250		3,412		2,856		3,067		2,663
Other real estate		728		1,487		1,285		1,246		1,080
Total loans secured by real estate		17,890		27,205		35,497		45,762		41,845
Commercial		100		272		276		356		289
Total loan volume	$	17,990	$	27,477	$	35,773	$	46,118	$	42,134
Loan Volume by Channel
Retail	$	10,585	$	17,341	$	21,223	$	24,707	$	21,171
Wholesale		7,091		9,536		13,387		17,020		14,746
Purchased		314		600		1,163		4,391		6,217
Total loan volume by channel	$	17,990	$	27,477	$	35,773	$	46,118	$	42,134
Refinancing Activity(4)
Home loan refinancing	$	10,779	$	12,297	$	14,722	$	22,637	$	22,552
Home equity loans and lines of credit		22		46		143		157		550
Home construction loans		1		30		30		20		12
Multi-family and other real estate		1,033		1,436		1,225		1,378		1,131
Total refinancing	$	11,835	$	13,809	$	16,120	$	24,192	$	24,245

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	Medium-term adjustable-rate loans 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 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, 2007			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	to Mar. 31, 2008			2008			2007			2007			2007			2007
Loans Held in Portfolio
Loans secured by real estate:
Home:
Short-term adjustable-rate loans(1):
Option ARMs(2)	$	(3,024	)	$	55,846		$	58,870		$	58,137		$	53,455		$	58,130
Other ARMs		(699	)		15,532			16,231			15,478			13,538			13,501
Total short-term adjustable-rate loans		(3,723	)		71,378			75,101			73,615			66,993			71,631
Medium-term adjustable-rate loans(3)		844			40,217			39,373			37,717			29,647			29,924
Fixed-rate loans		(148	)		11,857			12,005			11,813			9,505			9,506
Total home loans		(3,027	)		123,452			126,479			123,145			106,145			111,061
Home equity loans and lines of credit		58			63,546			63,488			61,831			58,631			56,123
Home construction(4)		(138	)		2,088			2,226			2,110			2,058			2,071
Multi-family		774			32,528			31,754			30,831			29,290			29,515
Other real estate		498			10,022			9,524			8,335			6,879			6,728
Total loans secured by real estate(5)		(1,835	)		231,636			233,471			226,252			203,003			205,498
Consumer:
Credit card		158			8,989			8,831			8,791			9,913			9,490
Other		(19	)		186			205			224			243			261
Commercial		124			2,003			1,879			1,865			1,835			1,772
Total loans held in portfolio(6)		(1,572	)		242,814			244,386			237,132			214,994			217,021
Less: allowance for loan losses		(2,143	)		(4,714	)		(2,571	)		(1,889	)		(1,560	)		(1,540	)
Total loans held in portfolio, net	$	(3,715	)	$	238,100		$	241,815		$	235,243		$	213,434		$	215,481

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	The total amount by which the unpaid principal balance of Option ARM loans exceeded their original principal amount was $1.93 billion, $1.73 billion, $1.50 billion, $1.30 billion and $1.12 billion at March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007.
(3)	Medium-term adjustable-rate loans 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 the investment portfolio as follows:
	Subprime Mortgage Channel	Mar. 31,	Dec. 31,	Sept. 30,	June 30,	Mar. 31,
		2008	2007	2007	2007	2007
	Home loans	$        15,032	$        16,092	$        17,285	$        17,602	$        17,610
	Home equity loans and lines of credit	2,312	2,525	2,711	2,855	2,749
	Total	$        17,344	$        18,617	$        19,996	$        20,457	$        20,359
(6)	Includes net unamortized deferred loan costs of $1.42 billion, $1.45 billion, $1.44 billion, $1.58 billion and $1.71 billion at March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007.

WM - - 12

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)
							Weighted			Weighted			Weighted
		Change from					Average			Average			Average
		Dec. 31, 2007			Mar. 31,		Coupon	Dec. 31,		Coupon	Mar. 31,		Coupon
	to Mar. 31, 2008				2008		Rate	2007		Rate	2007		Rate
Selected Loans Secured by Real Estate
Home loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs		$	(3,024	)	$	55,846	7.30%	$	58,870	7.68%	$	58,130	7.74
Other ARMs			(699	)		15,532	6.94		16,231	6.99		13,501	7.25
Total short-term adjustable-rate loans			(3,723	)		71,378	7.22		75,101	7.53		71,631	7.65
Medium-term adjustable-rate loans(2)			844			40,217	6.35		39,373	6.41		29,924	5.86
Fixed-rate loans			(148	)		11,857	6.75		12,005	6.75		9,506	6.68
Total home loans held in portfolio			(3,027	)		123,452	6.89		126,479	7.11		111,061	7.08
Home equity loans and lines of credit:
Adjustable-rate			751			53,850	6.02		53,099	7.52		45,288	8.25
Fixed-rate			(693	)		9,696	7.67		10,389	7.72		10,835	7.57
Total home equity loans and lines of credit			58			63,546	6.27		63,488	7.55		56,123	8.12
Multi-family loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs			(136	)		6,158	6.70		6,294	7.12		8,373	7.29
Other ARMs			(641	)		7,469	6.03		8,110	6.40		7,779	7.01
Total short-term adjustable-rate loans			(777	)		13,627	6.33		14,404	6.71		16,152	7.15
Medium-term adjustable-rate loans(2)			1,366			16,817	6.12		15,451	6.14		11,545	5.78
Fixed-rate loans			185			2,084	6.22		1,899	6.28		1,818	6.39
Total multi-family loans held in portfolio			774			32,528	6.22		31,754	6.41		29,515	6.57
Total selected loans held in portfolio secured by real estate(3)			(2,195	)		219,526	6.61		221,721	7.13		196,699	7.30
Loans held for sale(4)			568			4,941	5.73		4,373	6.12		26,394	6.44
Total selected loans secured by real estate		$	(1,627	)	$	224,467	6.59	$	226,094	7.12	$	223,093	7.20

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	Medium-term adjustable-rate loans reprice after one year.
(3)	At March 31, 2008, December 31, 2007 and March 31, 2007, adjustable-rate loans with lifetime caps were $182.93 billion, $182.12 billion and $162.24 billion with a lifetime weighted average cap rate of 12.60%, 12.49% and 12.31%.
(4)	Excludes credit card and student loans.

	Dec. 31, 2007
	to Mar. 31, 2008
Rollforward of Loans Held for Sale
Balance, beginning of period	$	5,403
Mortgage loans originated, purchased and transferred from held in portfolio		11,630
Mortgage loans transferred to held in portfolio		(346	)
Mortgage loans sold and other(1)		(10,716	)
Net change in consumer loans held for sale		(1,030	)
Balance, end of period	$	4,941
Rollforward of Home Loans Held in Portfolio
Balance, beginning of period	$	126,479
Loans originated, purchased and transferred from held for sale		2,265
Loan payments, transferred to held for sale and other		(5,292	)
Balance, end of period	$	123,452

(1) The unpaid principal balance ("UPB") of home loans sold was $10.0 billion for the three months ended March 31, 2008.

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,
	2008			2007			2007			2007			2007
Gain (loss) from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments:
Gain (loss) from home mortgage loans and originated mortgage-backed securities(1)	$	143		$	7		$	(169	)	$	66		$	149
Revaluation gain (loss) from derivatives economically hedging loans held for sale		(21	)		(12	)		(53	)		126			(54	)
Gain (loss) from home mortgage loans and originated mortgage-backed securities, net of hedging
and risk management instruments		122			(5	)		(222	)		192			95
Home mortgage loan servicing revenue:
Home mortgage loan servicing revenue(2)		470			490			516			526			514
Change in MSR fair value due to payments on loans and other		(230	)		(255	)		(351	)		(401	)		(356	)
Net mortgage loan servicing revenue		240			235			165			125			158
Change in MSR fair value due to valuation inputs or assumptions		(499	)		(390	)		(201	)		530			(96	)
Revaluation gain (loss) from derivatives economically hedging MSR		548			518			419			(547	)		(32	)
Home mortgage loan servicing revenue, net of  MSR valuation changes
and derivative risk management instruments		289			363			383			108			30
Total revenue from sales and servicing of home mortgage loans	$	411		$	358		$	161		$	300		$	125

(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 contractually specified servicing fees (net of guarantee fees paid to housing government-sponsored enterprises, where applicable), late charges and loan pool expenses (the shortfall of the scheduled interest required to be remitted to investors and that which is collected from borrrowers upon payoff).

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2008			2007			2007			2007			2007
MSR Valuation and Risk Management:
Change in MSR fair value due to valuation inputs or assumptions	$	(499	)	$	(390	)	$	(201	)	$	530		$	(96	)
Gain (loss) on MSR risk management instruments:
Revaluation gain (loss) from derivatives		548			518			419			(547	)		(32	)
Revaluation gain (loss) from certain trading securities		-			-			4			(4	)		4
Total gain (loss) on MSR risk management instruments		548			518			423			(551	)		(28	)
Total changes in MSR valuation and risk management	$	49		$	128		$	222		$	(21	)	$	(124	)

WM - - 14

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)
	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2008			2007			2007			2007			2007
Rollforward of Mortgage Servicing Rights(1)
Balance, beginning of period	$	6,278		$	6,794		$	7,231		$	6,507		$	6,193
Home loans:
Additions		181			127			116			592			760
Change in MSR fair value due to payments on loans and other		(230	)		(255	)		(351	)		(401	)		(356	)
Change in MSR fair value due to valuation inputs or
assumptions		(499	)		(390	)		(201	)		530			(96	)
Sale of MSR		(1	)		-			-			-			-
Net change in commercial real estate MSR		(3	)		2			(1	)		3			6
Balance, end of period	$	5,726		$	6,278		$	6,794		$	7,231		$	6,507
Rollforward of Mortgage Loans Serviced for Others
Balance, beginning of period	$	456,484		$	463,436		$	474,867		$	467,782		$	444,696
Home loans:
Additions		9,862			7,814			8,700			29,949			44,550
Sale of servicing		(109	)		-			-			-			-
Loan payments and other		(17,177	)		(15,739	)		(20,716	)		(24,213	)		(22,469	)
Net change in commercial real estate loans		66			973			585			1,349			1,005
Balance, end of period	$	449,126		$	456,484		$	463,436		$	474,867		$	467,782

(1) MSR as a percentage of mortgage loans serviced for others was 1.27%, 1.38%, 1.47%, 1.52% and 1.39% at March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007.

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2008		2007		2007		2007		2007
Total Servicing Portfolio
Mortgage loans serviced for others	$	449,126	$	456,484	$	463,436	$	474,867	$	467,782
Consumer loans serviced for others		17,390		17,379		16,078		14,745		13,645
Servicing on retained MBS without MSR		904		942		980		1,023		1,082
Servicing on owned loans		236,877		238,344		232,392		218,122		226,217
Subservicing portfolio		285		399		418		439		465
Total servicing portfolio	$	704,582	$	713,548	$	713,304	$	709,196	$	709,191
							March 31, 2008
							Unpaid		Weighted
							Principal		Average
							Balance		Servicing Fee
									(in basis points,
Mortgage Loans Serviced for Others by Loan Type									annualized)
Agency							$	249,621		32
Private								171,078		57
Subprime mortgage channel-home								28,427		51
Total mortgage loans serviced for others(1)							$	449,126		43

(1) Weighted average coupon rate was 6.24% at March 31, 2008.

WM - - 15

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)
	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2008			2007			2007			2007			2007
Allowance for Loan Losses
Balance, beginning of quarter	$	2,571		$	1,889		$	1,560		$	1,540		$	1,630
Allowance transferred to loans held for sale		-			(105	)		(217	)		(81	)		(148	)
Other		-			-			-			-			7
Provision for loan losses		3,511			1,534			967			372			234
		6,082			3,318			2,310			1,831			1,723
Loans charged off:
Loans secured by real estate:
Home loans(1)		(331	)		(105	)		(52	)		(21	)		(35	)
Home equity loans and lines of credit(1)		(486	)		(249	)		(104	)		(55	)		(29	)
Subprime mortgage channel(2)		(388	)		(277	)		(146	)		(103	)		(40	)
Home construction(3)		(8	)		-			-			(1	)		-
Multi-family		(4	)		(4	)		-			-			-
Other real estate		(2	)		(1	)		(1	)		(1	)		-
Total loans secured by real estate		(1,219	)		(636	)		(303	)		(181	)		(104	)
Consumer:
Credit card		(135	)		(126	)		(120	)		(106	)		(96	)
Other		(2	)		(2	)		(2	)		(2	)		(3	)
Commercial		(39	)		(32	)		(20	)		(15	)		(9	)
Total loans charged off		(1,395	)		(796	)		(445	)		(304	)		(212	)
Recoveries of loans previously charged off:
Loans secured by real estate:
Home loans(1)		1			4			1			1			1
Home equity loans and lines of credit(1)		9			4			3			3			3
Subprime mortgage channel(2)		1			4			1			11			1
Home construction(3)		-			2			-			-			-
Other real estate		1			2			2			-			-
Total loans secured by real estate		12			16			7			15			5
Consumer:
Credit card		12			31			14			15			16
Other		-			-			-			-			6
Commercial		3			2			3			3			2
Total recoveries of loans previously charged off		27			49			24			33			29
Net charge-offs		(1,368	)		(747	)		(421	)		(271	)		(183	)
Balance, end of quarter	$	4,714		$	2,571		$	1,889		$	1,560		$	1,540
Net charge-offs (annualized) as a percentage
of average loans held in portfolio		2.24	%		1.24	%		0.74	%		0.50	%		0.33	%
Allowance as a percentage of loans held in portfolio		1.94			1.05			0.80			0.73			0.71
______________________________

(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 the investment portfolio. Charge-offs in the second quarter of 2007 include $26 million of amounts primarily related to uncollected borrower expenses incurred in prior periods by and owed to a third party loan servicer.
(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,
	2008			2007			2007			2007			2007
Nonperforming Assets
Nonaccrual loans(1)(2):
Loans secured by real estate:
Home loans(3)	$	3,504		$	2,302		$	1,452		$	991		$	690
Home equity loans and lines of credit(3)		1,102			835			533			378			297
Subprime mortgage channel(4)		2,882			2,721			2,356			1,707			1,503
Home construction(5)		77			56			44			47			41
Multi-family		142			131			120			69			60
Other real estate		87			53			49			52			52
Total nonaccrual loans secured by real estate		7,794			6,098			4,554			3,244			2,643
Consumer		2			1			1			1			1
Commercial		28			24			22			30			28
Total nonaccrual loans held in portfolio		7,824			6,123			4,577			3,275			2,672
Foreclosed assets(6)		1,357			979			874			750			587
Total nonperforming assets(7)	$	9,181		$	7,102		$	5,451		$	4,025		$	3,259
Total nonperforming assets as a percentage of total assets		2.87	%		2.17	%		1.65	%		1.29	%		1.02	%
______________________________

(1)	Nonaccrual loans held for sale, which are excluded from the nonaccrual balances presented above, were zero, $4 million, $7 million, $171 million and $195 million at March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007.  Loans held for sale are accounted for at the lower of 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 the investment portfolio.
(5)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(6)	Foreclosed real estate securing Government National Mortgage Association (“GNMA”) loans of $25 million, $37 million, $46 million, $49 million and $72 million at March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007 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”).
(7)	Excludes accruing restructured loans of $372 million, $251 million, $269 million, $277 million and $340 million at March 31, 2008, December 31, 2007, September 30, 2007, June 30, 2007 and March 31, 2007.

EX-99.3

Exhibit 99.3

Credit Risk Management April 15, 2008

 Loan Portfolio Mix $242.8 Billion As of 3/31/08 ($ in billions) Other $2.3 Other Commercial  $12.0 Credit Cards $9.0 Subprime Mortgage Channel $17.3 Multi-Family  $32.5 Single-Family Residential $108.5 Home Equity $61.2 Single-Family Residential excludes Custom and Builder Construction and home loans in the Subprime Mortgage Channel. 2Home Equity excludes home equity loans in the Subprime Mortgage Channel. 3Managed Credit Card balances are $17.4 billion higher.

Single-Family Residential Portfolio 2003 2004 2005 1Q '062Q '063Q '06 4Q '06 2006 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 SFR$83.0 $100.0 $110.0 $114.1 123.8 125.2 121.1 $99.5 $99.5 $93.5 $88.5$ 105.9 $110.4 $108.5 Annualized NCO Rate 0.06% 0.06% 0.04% 0.03%0.04% 0.03% 0.04% 0.06% 0.04% 0.14% 0.09%0.21% 0.37% 1.20% 1Excludes Custom and Builder Construction and home loans in the Subprime Mortgage Channel. 2Estimated loan-to-value calculation based on OFHEO December 2007 data (released February 2008).

Option ARM Portfolio  2001 2002 2003 2004 2005 2006 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 Current > original balance as a % of loan balance 0.60% 0.25% 0.09% 0.02% 0.22% 1.40% 1.93% 2.42% 2.59% 3.04% 3.46% Loan balance $38.4  $35.2  $49.30  $66.3  $71.0  $62.7  $57.0  $52.2  $56.6  $57.2  $53.9  Amount by which the current principal balance exceeds the original principal balance $0.48  $0.21  $0.04  $0.01  $0.16  $0.89  $1.12  $1.30  $1.50  $1.73  $1.93  Annualized NCO Rate  0.02% 0.02% 0.06% 0.19% 0.08% 0.26% 0.51% 1.81% 1Estimated loan-to-value calculation based on OFHEO December 2007 data (released February 2008).

Option ARM Portfolio Resets  2008 2009 2010 2011 2012+ Balance by Recast Year $3.8  $7.2  $13.4  $12.8  $18.6 Data as of 3/31/2008.  Assumes that all balances recast no earlier than 5 years after origination.

Home Equity Loan / Home Equity LOC Portfolio1   2002 2003 2004 2005 1Q '06 2Q '06 3Q '06 4Q '06 2006 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 1st Lien HEL/HELOC   $21.6 $18.7    $14.8 $14.8 $14.1 $14.6 $15.7 $16.2 $16.0 2nd Lien HEL/HELOC   $22.0 $32.1    $38.1 $38.1 $39.3 $41.2 $43.4 $44.8 $45.2 Total Home Equity $16.0 $28.0 $43.6 $50.8 $51.90  52.6 52.8 52.9 52.9 $53.4 $55.8 $59.1 $61.0 $61.2 Annualized NCO Rate 0.10% 0.06% 0.05% 0.04% 0.02% 0.02% 0.05% 0.08% 0.04% 0.20% 0.38% 0.70% 1.63% 3.12% 1 Excludes home equity loans in the Subprime Mortgage Channel. 2Estimated combined loan-to-value ratio based on OFHEO December 2007 data (released February 2008).

Subprime Mortgage Channel Portfolio1  Home Loans Current FICO = 603 Original LTV = 78% Est. Current LTV2 = 71% Est. Current LTV >90% = 9% Est. Current LTV >80% = 30% Home Equity Current FICO = 669 Original Combined LTV = 94% Est. Current Combined LTV3 = 93% Est. Current Combined LTV >90% = 69% Est. Current Combined LTV >80% = 89%  2002 2003 2004 2005 1Q '06 2Q '06 3Q '06 4Q '06 2006 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 Home Loans $10.0 $13.0 $19.2 $21.2 $20.20  $20.5 $20.1 $18.7 $18.7 $17.6 $17.6 $17.3 $16.1 $15.0 Home Equity Loans $0.0 $0.0 $0.0 $0.0 $0.10  $0.4 $1.5 $2.1 $2.1 $2.8 $2.9 $2.7 $2.5 $2.3 Subprime Home Loan NCO Rate   0.20% 0.25% 0.37% 0.39% 0.79% 0.84% 0.59% 0.74% 1.02% 1.68% 3.81% 6.82% Subprime Home Equity NCO Rate      3.71% 2.72% 1.56% 2.03% 0.71% 7.01% 10.62% 17.03% 20.80% Total SMC Annualized NCO Rate 0.37% 0.33% 0.23% 0.23% 0.38% 0.41% 0.93% 0.92% 0.66% 0.76% 1.83% 2.84% 5.65% 8.55% 1Comprised of mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held for investment. 2Estimated loan-to-value ratio based on OFHEO December 2007 data (released February 2008). 3Estimated combined loan-to-value ratio based on OFHEO December 2007 data (released February 2008).

Subprime Mortgage Channel1 Resets Already Reset or Fixed Expected to Reset Data as of 3/31/2008. 1Comprised of mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held for investment.

Commercial Portfolio  2002 2003 2004 2005 1Q '06 2Q '06 3Q '06 4Q '06 2006 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 Multi-Family Lending $18.0 $20.0 $22.3 $25.6 $26.1  26.7 27.4 30.2 30.2 $29.5 $29.3 $30.8 $31.8 $32.5 Other Commercial $12 $11.0 $8.9 $7.2 $7.4  $7.3 $7.7 $8.4 $8.4 $8.5 $8.7 $10.2 $11.4 $12.0 Annualized Multi-Family NCO Rate   0.00% - -0.01%  -0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.05% 0.05% Annualized Other Commercial NCO Rate   0.07% 0.29%  0.11% 0.27% 0.33% 0.30% 0.33% 0.59% 0.68% 1.06% 1.26% 1 Other Commercial consists of Other Real Estate, Retail Small Business, and Commercial Loans. 2Charge-offs for Other Commercial in 4Q ’07 and 1Q ’08 are almost entirely driven from Retail Small Business.

Managed Card Services Portfolio   2002 2003 2004 2005 1Q '06 2Q '06 3Q '06 4Q '06 2006 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 Managed Card Services $20.0 $16.9 $18.5 $20.0 $20.1  $21.1 $22.2 $23.5 $23.5 $23.6 $25.0 $26.2 $27.2 $26.4 Managed Annualized NCO Rate 16.29% 15.82% 11.65% 7.84% 5.79% 5.99% 5.68% 5.84% 5.83% 6.31% 6.49% 6.37% 6.90% 9.32% 1Data presented for periods prior to 4Q ‘05 is for Providian Financial Corp.

Nonperforming Assets  2003 2004 1Q ’05 2Q ’05 3Q ’05 2005 1Q '06 2Q '06 3Q '06 2006 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 Nonperforming Assets as a % of Total Assets 0.70% 0.58% 0.57% 0.53% 0.52% 0.57% 0.59% 0.62% 0.69% 0.80% 1.02% 1.29% 1.65% 2.17% 2.87% Nonperforming Assets $ $1,937 $1,795 $1,833  $1,719  $1,721  $1,962 $2,040  $2,160  $2,392  $2,775  $3,259 $4,025 $5,451 $7,102 $9,181 SFR Prime  542    565    640 $690 $991 $1,452 $2,302 $3,504 Home Equity  66    87    231 $297 $378 $533 $835 $1,102 Subprime Mortgage Channel  674    873    1283 $1,503 $1,707 $2,356 $2,721 $2,882 MFL  12    25    46 $60 $69 $120 $131 $142 Other Commercial  203    107    67 $80 $82 $71 $77 $115 Other  37    29    28 $42 $48 $45 $57 $79 Foreclosed Assets  261    276    480 $587 $750 $874 $979 $1,357

Allowance for Loan and Lease Losses  2003 2004 2005 1Q '06 2Q '06 3Q '06 2006 1Q '07 2Q '07 3Q '07 4Q '07 1Q '08 Allowance for loan and lease losses (period end) $1,250 $1,301 $1,695 $1,642  $1,663  $1,550  $1,630 $1,540  $1,560  $1,889  $2,571  $4,714  Net Charge-offs $309 $135 $244 $105  $116  $154  $510 $183  $271  $421  $747  $1,368  Provision $42 $209 $316 $82  $224  $166  $816 $234  $372  $967  $1,534  $3,511  Allowance as a % of loans held in portfolio 0.71% 0.63% 0.74% 0.68% 0.68% 0.64% 0.72% 0.71% 0.73% 0.80% 1.05% 1.94%

Transition Roll Rates Current to 1+ PPD 1 PPD to 2+ PPD 2 PPD to 3+ PPD 3 PPD to Nonaccrual Rates shown are 3 month balance-weighted moving averages.  Estimation techniques have been applied in some instances to account for censored loan states occurring in specific periods.

Current Credit Quality Metrics Home Loans  Portfolio 1Includes home loans in the subprime mortgage channel. 2Estimated loan-to-value calculation based on OFHEO December 2007 data (released February 2008). 3Includes the HELOC and HEL portfolios and home equity loans in the subprime mortgage channel. 4Estimated combined loan-to-value calculations based on OFHEO December 2007 data(released February 2008).

Single-Family Residential Portfolio1 Loan-to-Value   at Origination   Portfolio by Vintage as of 3/31/08 UPB ($MM) 2004 & Prior 2005 2006 2007 2008 Total $2 Total % 50% $3,624 $1,229 $804 $2,867 $275 $8,799 8% >50-60% $3,938 $1,740 $1,422 $3,917 $313 $11,330 11% >60-70% $8,997 $5,080 $3,758 $7,688 $521 $26,044 24% >70-80% $15,470 $10,889 $9,960 $17,567 $729 $54,615 51% >80-90% $1,765 $663 $588 $1,595 $147 $4,758 4% >90% $984 $178 $193 $413 $7 $1,775 2% Total $2 $34,778 $19,779 $16,725 $34,047 $1,992 $107,321 100% Total % 32% 18% 16% 32% 2% 100% Average Original LTV 69% 71% 72% 70% 67% 70%   Avg Estimated Current LTV3 47% 68% 77% 72% 67% 64%   Average  Original FICO 700 705 703 720 735 709   1Excludes Custom and Builder Construction, FHA/VA loans, and home loans in the Subprime Mortgage Channel. 2Excludes accounting adjustments and invalid vintage and OLTV values; negative amortization is included in the loan balances. 3Estimated loan-to-value calculation based on OFHEO December 2007 data (released February 2008).

Single-Family Residential Option ARMs1 Loan-to-Value   at Origination   Portfolio by Vintage as of 3/31/08 UPB ($MM) 2004 & Prior 2005 2006 2007 2008 Total $2 Total % 50% $1,104 $673 $423 $735 $15 $2,950 6% >50-60% $1,309 $981 $832 $1,328 $29 $4,479 8% >60-70% $4,055 $3,289 $2,652 $3,272 $72 $13,340 24% >70-80% $7,882 $6,916 $7,865 $8,391 $87 $31,141 56% >80-90% $951 $477 $477 $930 $21 $2,856 5% >90% $271 $87 $142 $125 $2 $627 1% Total $2 $15,572 $12,423 $12,391 $14,781 $226 $55,393 100% Total % 28% 22% 22% 27% 1% 100% Average  Original LTV 71% 72% 73% 72% 70% 72% Avg Estimated Current LTV3 49% 71% 80% 75% 70% 68%   Average  Original FICO 689 701 700 713 729 701 1Excludes Custom and Builder Construction and FHA/VA loans. 2Excludes accounting adjustments and invalid vintage and OLTV values; negative amortization is included in the loan balances. 3Estimated loan-to-value calculation based on OFHEO December 2007 data (released February 2008).

Subprime Mortgage Channel1 Portfolio Loan-to-Value   at Origination   Portfolio by Vintage as of 3/31/08 UPB ($MM) 2004 & Prior 2005 2006 2007 2008 Total $2 Total % 50% $203 $105 $233 $58 $0 $599 4% >50-60% $243 $142 $217 $85 $0 $687 4% >60-70% $508 $320 $482 $201 $0 $1,511 9% >70-80% $1,595 $2,311 $2,224 $796 $0 $6,926 40% >80-90% $1,715 $1,157 $1,925 $630 $0 $5,427 31% >90% $30 $121 $1,745 $227 $0 $2,123 12% Total $2 $4,294 $4,156 $6,826 $1,997 $0 $17,273 100% Total % 25% 24% 39% 12% 0% 100% Average Original Combined LTV3 77% 79% 83% 80% N/A 80%  Avg Est Current Combined LTV3,4 57% 71% 82% 82% N/A 73%  Average Original FICO 625 631 661 632 N/A 641 Comprised of mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held for investment. Excludes accounting adjustments and invalid vintage and CLTV values. Origination loan-to-value used for 1st liens and combined loan-to-value used for 2nd Liens. 4Estimated loan-to-value calculation based on OFHEO December 2007 data (released February 2008).

1st & 2nd Lien Home Equity Portfolio1 Loan-to-Value at Origination Portfolio by Vintage as of 3/31/08 UPB ($MM) 2004 & Prior 2005 2006 2007 2008 Total $2 Total % 50% $2,860 $1,322 $1,438 $1,506 $131 $7,257 12% >50-60% $1,836 $928 $945 $1,050 $74 $4,833 8% >60-70% $2,714 $1,526 $1,496 $1,727 $109 $7,572 13% >70-80% $6,217 $4,322 $3,865 $4,948 $231 $19,583 33% >80-90% $2,757 $4,031 $5,521 $6,603 $85 $18,997 32% >90% $597 $212 $232 $501 $3 $1,545 2% Total $2 $16,981 $12,341 $13,497 $16,335 $633 $59,787 100% Total % 28% 21% 23% 27% 1% 100% Average Original Combined LTV 69% 74% 75% 76% 66% 73% Avg Est Current Combined LTV3 50% 67% 75% 77% 65% 67%   Average  Original FICO 737 733 728 734 748 734   1Excludes home equity loans in the Subprime Mortgage Channel. 2Excludes accounting adjustments and invalid vintage and CLTV values. 3Estimated loan-to-value calculation based on OFHEO December 2007 data (released February 2008).

2nd Lien Home Equity Portfolio1 Loan-to-Value   at Origination   Portfolio by Vintage as of 3/31/08 UPB ($MM) 2004 & Prior 2005 2006 2007 2008 Total $2 Total % <=50% $1,021 $644 $883 $742 $60 $3,350 8% >50-60% $930 $642 $796 $707 $47 $3,122 7% >60-70% $1,583 $1,170 $1,327 $1,188 $72 $5,340 12% >70-80% $3,990 $3,472 $3,481 $3,497 $150 $14,590 33% >80-90% $2,321 $3,668 $5,308 $5,232 $34 $16,563 38% >90% $314 $89 $186 $457 $2 $1,048 2% Total $2 $10,159 $9,685 $11,981 $11,823 $365 $44,013 100% Total % 23% 22% 27% 27% 1% 100% Average Original Combined LTV 73% 76% 77% 78% 67% 76% Avg Est Current Combined LTV3 55% 70% 77% 79% 66% 71%   Average  Original FICO 733 731 726 731 750 730   1Excludes home equity loans in the Subprime Mortgage Channel. 2Excludes accounting adjustments and invalid vintage and CLTV values. 3Estimated loan-to-value calculation based on OFHEO December 2007 data (released February 2008).

Cautionary Statements This presentation contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this document that are not historical facts. When used in this presentation, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or words of similar meaning, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed under the heading “Factors That May Affect Future Results” in Washington Mutual’s 2007 Annual Report on Form 10-K which include: Economic conditions that negatively affect housing prices and the job market that have resulted, and may continue to result, in a deterioration in credit quality of the Company's loan portfolio. Access to market-based liquidity sources that may be negatively impacted if market conditions persist or if further ratings downgrades occur and could lead to increased funding costs and reduced gain on sale. The need to raise additional capital due to significant additional losses which could have a dilutive effect on existing shareholders and could affect the ability to pay dividends. Changes in interest rates. Features of certain of the Company’s loan products that may result in increased credit risk. Estimates used by the Company to determine the fair value of certain of our assets that may prove to be imprecise and result in significant changes in valuation. Risks related to the Company’s credit card operations that could adversely affect the credit card portfolio and our ability to continue growing the credit card business. Operational risk which may result in incurring financial and reputational losses. Failure to comply with laws and regulations. Changes in the regulation of financial services companies, housing government-sponsored enterprises and credit card lenders. General business, economic and market conditions and continued deterioration in these conditions. Damage to the Company’s professional reputation and business as a result of allegations and negative public opinion as well as pending and threatened litigation. Significant competition from banking and non-banking companies. There are other factors not described in our 2007 Form 10-K which are beyond the Company’s ability to anticipate or control that could cause results to differ.