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”).