WM-1

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions, except per share data)
(unaudited)
		Quarter Ended																				Six Months Ended
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,				June 30,				June 30,
		2007				2007				2006				2006				2006				2007				2006
PROFITABILITY
Net income		$	830			$	784			$	1,058			$	748			$	767			$	1,614			$	1,752
Net interest income			2,034				2,081				1,998				1,947				2,060				4,115				4,176
Noninterest income			1,758				1,541				1,592				1,570				1,578				3,299				3,216
Noninterest expense			2,138				2,105				2,257				2,184				2,229				4,244				4,367
Diluted earnings per common share:
Income from continuing operations		$	0.92			$	0.86			$	0.66			$	0.76			$	0.78			$	1.78			$	1.75
Income from discontinued operations			-				-				0.44				0.01				0.01				-				0.02
Net income			0.92				0.86				1.10				0.77				0.79				1.78				1.77
Diluted weighted average number of common shares outstanding
(in thousands)			893,090				899,706				955,817				967,376				975,504				896,304				989,408
Net interest margin			2.90	%			2.79	%			2.58	%			2.53	%			2.65	%			2.85	%			2.70	%
Dividends declared per common share		$	0.55			$	0.54			$	0.53			$	0.52			$	0.51			$	1.09			$	1.01
Book value per common share (period end)(1)			27.27				27.30				28.21				27.65				27.31				27.27				27.31
Return on average assets			1.05	%			0.95	%			1.20	%			0.86	%			0.88	%			1.00	%			1.01	%
Return on average common equity			13.74				12.99				16.03				11.47				11.82				13.36				13.28
Efficiency ratio(2)(3)			56.38				58.13				62.87				62.09				61.27				57.24				59.08
ASSET QUALITY
Nonperforming assets(4) to total assets			1.29	%			1.02	%			0.80	%			0.69	%			0.62	%			1.29	%			0.62	%
Allowance as a percentage of loans held in portfolio			0.73				0.71				0.72				0.64				0.68				0.73				0.68
CREDIT PERFORMANCE
Provision for loan and lease losses		$	372			$	234			$	344			$	166			$	224			$	606			$	306
Net charge-offs			271				183				136				154				116				454				221
CAPITAL ADEQUACY
Capital Ratios for WMI:
Tangible equity to total tangible assets(5)			6.07	%			5.78	%			6.04	%			5.86	%			5.84	%			6.07	%			5.84	%
Total risk-based capital to total risk-weighted assets(6)			10.98				11.17				11.77				11.10				11.26				10.98				11.26
Tier 1 capital to average total assets(6)			6.09				5.87				6.35				6.28				6.24				6.09				6.24
Capital Ratios for WMB (well-capitalized minimum)(7):
Tier 1 capital to adjusted total assets (5.00%)			7.02				6.70				6.79				6.47				6.33				7.02				6.33
Adjusted tier 1 capital to total risk-weighted assets (6.00%)			8.06				7.88				8.28				8.12				8.13				8.06				8.13
Total risk-based capital to total risk-weighted assets (10.00%)			12.05				11.94				12.16				11.30				11.39				12.05				11.39
SUPPLEMENTAL DATA
Average balance sheet:
Total loans held in portfolio		$	216,004			$	222,617			$	239,265			$	242,165			$	242,334			$	219,292			$	237,446
Total interest-earning assets(2)			279,836				295,700				314,784				312,827				313,239				287,724				310,523
Total assets			316,004				331,905				353,056				349,542				348,664				323,911				346,175
Total deposits			206,765				210,764				214,801				208,912				200,252				208,753				195,668
Total stockholders' equity			24,436				24,407				26,700				26,147				25,958				24,422				26,388
Period-end balance sheet:
Total loans held in portfolio, net			213,434				215,481				223,330				240,215				241,840				213,434				241,840
Total assets			312,219				319,985				346,288				348,877				350,884				312,219				350,884
Total deposits			201,380				210,209				213,956				210,882				204,558				201,380				204,558
Total stockholders' equity			24,210				24,578				26,969				26,458				26,131				24,210				26,131
Common shares outstanding at the end of period (in thousands)(8)			875,722				888,111				944,479				945,098				962,880				875,722				962,880
Employees at end of period			49,989				49,693				49,824				51,056				56,247				49,989				56,247

(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 $2.94 billion for June 30, 2007, $2.45 billion for March 31, 2007 and December 31, 2006 and $1.96 billion for September 30, 2006 and June 30, 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 June 30, 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
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
Interest Income
Loans held for sale		$	421			$	562			$	515			$	435			$	395
Loans held in portfolio			3,786				3,900				4,053				4,012				3,887
Available-for-sale securities			351				332				392				379				368
Trading assets			108				113				102				140				165
Other interest and dividend income			82				101				148				139				120
Total interest income			4,748				5,008				5,210				5,105				4,935
Interest Expense
Deposits			1,723				1,772				1,843				1,739				1,461
Borrowings			991				1,155				1,369				1,419				1,414
Total interest expense			2,714				2,927				3,212				3,158				2,875
Net interest income			2,034				2,081				1,998				1,947				2,060
Provision for loan and lease losses			372				234				344				166				224
Net interest income after provision for loan and lease losses			1,662				1,847				1,654				1,781				1,836
Noninterest Income
Revenue from sales and servicing of home mortgage loans			300				125				164				118				222
Revenue from sales and servicing of consumer loans			403				443				372				355				424
Depositor and other retail banking fees			720				665				692				655				641
Credit card fees			183				172				182				165				152
Securities fees and commissions			70				60				54				52				56
Insurance income			29				29				30				31				33
Net gain (loss) on trading assets			(145	)			(108	)			(81	)			68				(129	)
Gain (loss) from sales of other available-for-sale securities			7				35				(1	)			(1	)			-
Other income			191				120				180				127				179
Total noninterest income			1,758				1,541				1,592				1,570				1,578
Noninterest Expense
Compensation and benefits			977				1,002				945				939				1,021
Occupancy and equipment			354				376				476				408				435
Telecommunications and outsourced information services			132				129				133				142				145
Depositor and other retail banking losses			58				61				64				57				51
Advertising and promotion			113				98				107				124				117
Professional fees			55				38				89				57				45
Other expense			449				401				443				457				415
Total noninterest expense			2,138				2,105				2,257				2,184				2,229
Minority interest expense			42				43				34				34				37
Income from continuing operations before income taxes			1,240				1,240				955				1,133				1,148
Income taxes			410				456				315				394				389
Income from continuing operations			830				784				640				739				759
Discontinued Operations(1)
Income from discontinued operations before income taxes			-				-				2				14				12
Gain on disposition of discontinued operations			-				-				667				-				-
Income taxes			-				-				251				5				4
Income from discontinued operations			-				-				418				9				8
Net Income		$	830			$	784			$	1,058			$	748			$	767
Net Income Available to Common Stockholders		$	822			$	777			$	1,050			$	748			$	767
Basic Earnings Per Common Share:
Income from continuing operations		$	0.95			$	0.89			$	0.68			$	0.78			$	0.80
Income from discontinued operations			-				-				0.45				0.01				0.01
Net Income			0.95				0.89				1.13				0.79				0.81
Diluted Earnings Per Common Share:
Income from continuing operations		$	0.92			$	0.86			$	0.66			$	0.76			$	0.78
Income from discontinued operations			-				-				0.44				0.01				0.01
Net Income			0.92				0.86				1.10				0.77				0.79
Dividends declared per common share			0.55				0.54				0.53				0.52				0.51
Basic weighted average number of common shares outstanding (in thousands)			868,968				874,816				931,484				941,898				947,023
Diluted weighted average number of common shares outstanding (in thousands)			893,090				899,706				955,817				967,376				975,504

⁽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 Income
(dollars in millions, except per share data)
(unaudited)
		Six Months Ended
		June 30,				June 30,
		2007				2006
Interest Income
Loans held for sale		$	984			$	856
Loans held in portfolio			7,686				7,468
Available-for-sale securities			682				690
Trading assets			221				363
Other interest and dividend income			183				215
Total interest income			9,756				9,592
Interest Expense
Deposits			3,495				2,682
Borrowings			2,146				2,734
Total interest expense			5,641				5,416
Net interest income			4,115				4,176
Provision for loan and lease losses			606				306
Net interest income after provision for loan and lease losses			3,509				3,870
Noninterest Income
Revenue from sales and servicing of home mortgage loans			425				486
Revenue from sales and servicing of consumer loans			846				801
Depositor and other retail banking fees			1,385				1,219
Credit card fees			355				291
Securities fees and commissions			131				108
Insurance income			58				66
Net loss on trading assets			(253	)			(142	)
Gain (loss) from sales of other available-for-sale securities			41				(8	)
Other income			311				395
Total noninterest income			3,299				3,216
Noninterest Expense
Compensation and benefits			1,979				2,054
Occupancy and equipment			731				826
Telecommunications and outsourced information services			261				279
Depositor and other retail banking losses			119				108
Advertising and promotion			211				211
Professional fees			93				81
Other expense			850				808
Total noninterest expense			4,244				4,367
Minority interest expense			85				37
Income from continuing operations before income taxes			2,479				2,682
Income taxes			865				947
Income from continuing operations			1,614				1,735
Discontinued Operations(1)
Income from discontinued operations before income taxes			-				27
Income taxes			-				10
Income from discontinued operations			-				17
Net Income		$	1,614			$	1,752
Net Income Available to Common Stockholders		$	1,599			$	1,752
Basic Earnings Per Common Share:
Income from continuing operations		$	1.83			$	1.81
Income from discontinued operations			-				0.02
Net Income			1.83				1.83
Diluted Earnings Per Common Share:
Income from continuing operations		$	1.78			$	1.75
Income from discontinued operations			-				0.02
Net Income			1.78				1.77
Dividends declared per common share			1.09				1.01
Basic weighted average number of common shares outstanding (in thousands)			871,876				960,245
Diluted weighted average number of common shares outstanding (in thousands)			896,304				989,408

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

WM-4

Washington Mutual, Inc.
Consolidated Statements of Financial Condition
(dollars in millions)
(unaudited)
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
Assets
Cash and cash equivalents		$	4,167			$	4,047			$	6,948			$	6,649			$	6,675
Federal funds sold and securities purchased under agreements to resell			3,267				8,279				3,743				5,102				4,112
Trading assets			5,534				5,290				4,434				5,391				7,445
Available-for-sale securities, total amortized cost of $28,934, $22,921,
$25,073, $29,136 and $28,504:
Mortgage-backed securities			19,810				15,939				18,063				22,353				21,438
Investment securities			8,530				6,900				6,915				6,664				6,358
Total available-for-sale securities			28,340				22,839				24,978				29,017				27,796
Loans held for sale			19,327				26,874				44,970				23,720				23,342
Loans held in portfolio			214,994				217,021				224,960				241,765				243,503
Allowance for loan and lease losses			(1,560	)			(1,540	)			(1,630	)			(1,550	)			(1,663	)
Loans held in portfolio, net			213,434				215,481				223,330				240,215				241,840
Investment in Federal Home Loan Banks			1,596				2,230				2,705				3,013				3,500
Mortgage servicing rights			7,231				6,507				6,193				6,288				9,162
Goodwill			9,056				9,052				9,050				8,368				8,339
Other assets			20,267				19,386				19,937				21,114				18,673
Total assets		$	312,219			$	319,985			$	346,288			$	348,877			$	350,884
Liabilities
Deposits:
Noninterest-bearing deposits		$	33,557			$	34,367			$	33,386			$	34,667			$	35,457
Interest-bearing deposits			167,823				175,842				180,570				176,215				169,101
Total deposits			201,380				210,209				213,956				210,882				204,558
Federal funds purchased and commercial paper			3,390				563				4,778				5,282				6,138
Securities sold under agreements to repurchase			9,357				8,323				11,953				13,665				19,866
Advances from Federal Home Loan Banks			21,412				24,735				44,297				47,247				55,311
Other borrowings			40,313				39,430				32,852				33,883				27,995
Other liabilities			9,212				9,694				9,035				9,501				8,926
Minority interests			2,945				2,453				2,448				1,959				1,959
Total liabilities			288,009				295,407				319,319				322,419				324,753
Stockholders' equity
Preferred stock			492				492				492				492				-
Capital surplus - common stock			2,715				3,121				5,825				5,761				6,596
Accumulated other comprehensive loss			(568	)			(268	)			(287	)			(180	)			(599	)
Retained earnings			21,571				21,233				20,939				20,385				20,134
Total stockholders' equity			24,210				24,578				26,969				26,458				26,131
Total liabilities and stockholders' equity		$	312,219			$	319,985			$	346,288			$	348,877			$	350,884

WM-5

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
Stockholders' Equity Rollforward
Balance, beginning of period		$	24,578			$	26,969			$	26,458			$	26,131			$	25,819
Net income			830				784				1,058				748				767
Cumulative effect from the adoption of new accounting pronouncements			-				(6	)	(1)		(157	)	(2)		-				-
Other comprehensive income (loss), net of income taxes			(300	)			19				50				419				(151	)
Cash dividends declared on common stock			(484	)			(476	)			(496	)			(497	)			(486	)
Cash dividends declared on preferred stock			(8	)			(7	)			(8	)			-				-
Common stock repurchased and retired(3)			(500	)			(2,797	)			-				(930	)			-
Common stock issued			94				92				64				95				182
Preferred stock issued			-				-				-				492				-
Balance, end of period		$	24,210			$	24,578			$	26,969			$	26,458			$	26,131

(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⁾ The Company repurchased 13.5 million,  61.4 million, 1.7 million, 18.8 million and zero shares of its common stock in the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006.  At June 30, 2007, the total remaining common stock repurchase authority was 54.7 million shares.

WM-6

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)
		Quarter Ended																				Six Months Ended
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,				June 30,				June 30,
		2007				2007				2006				2006				2006				2007				2006
RETAIL BANKING GROUP
Condensed income statement:
Net interest income		$	1,283			$	1,275			$	1,239			$	1,260			$	1,323			$	2,558			$	2,670
Provision for loan and lease losses			91				62				47				53				13				153				67
Noninterest income			819				751				774				738				732				1,571				1,401
Inter-segment revenue			21				22				17				17				16				43				30
Noninterest expense			1,139				1,075				1,102				1,079				1,109				2,215				2,197
Income from continuing operations before income taxes			893				911				881				883				949				1,804				1,837
Income taxes			335				342				336				337				363				677				702
Income from continuing operations			558				569				545				546				586				1,127				1,135
Income from discontinued operations			-				-				12				9				8				-				17
Net income		$	558			$	569			$	557			$	555			$	594			$	1,127			$	1,152
Performance and other data:
Efficiency ratio			53.65	%			52.50	%			54.29	%			53.55	%			53.53	%			53.09	%			53.57	%
Average loans		$	149,716			$	155,206			$	172,029			$	180,829			$	182,891			$	152,445			$	178,396
Average assets			159,518				165,047				182,256				191,288				193,246				162,267				188,721
Average deposits:
Checking deposits:
Noninterest bearing			23,107				22,331				21,873				21,440				21,418				22,722				20,884
Interest bearing			30,282				31,739				33,010				34,792				37,518				31,006				38,922
Total checking deposits			53,389				54,070				54,883				56,232				58,936				53,728				59,806
Savings and money market deposits			43,814				43,103				41,442				38,317				38,143				43,460				37,790
Time deposits			48,049				46,857				47,188				45,405				41,724				47,456				41,334
Average deposits			145,252				144,030				143,513				139,954				138,803				144,644				138,930
Loan volume			10,069				8,492				7,966				9,006				10,105				18,561				17,360
Employees at end of period			28,178				27,883				27,671				28,042				31,432				28,178				31,432
CARD SERVICES GROUP
Managed basis(1)
Condensed income statement:
Net interest income		$	660			$	653			$	664			$	633			$	615			$	1,314			$	1,232
Provision for loan and lease losses			523				388				555				345				417				912				747
Noninterest income			393				474				451				343				389				867				734
Inter-segment expense			5				4				2				2				1				9				2
Noninterest expense			300				325				316				294				293				626				590
Income before income taxes			225				410				242				335				293				634				627
Income taxes			84				154				93				128				112				238				240
Net income		$	141			$	256			$	149			$	207			$	181			$	396			$	387
Performance and other data:
Efficiency ratio			28.68	%			28.96	%			28.41	%			30.16	%			29.19	%			28.82	%			30.05	%
Average loans		$	24,234			$	23,604			$	22,875			$	21,706			$	20,474			$	23,921			$	20,281
Average assets			26,762				26,039				25,472				24,236				23,044				26,403				22,905
Employees at end of period			2,889				2,646				2,676				2,731				2,597				2,889				2,597
Securitization adjustments
Condensed income statement:
Net interest income		$	(459	)		$	(414	)		$	(437	)		$	(411	)		$	(405	)		$	(874	)		$	(837	)
Provision for loan and lease losses			(294	)			(282	)			(280	)			(220	)			(217	)			(577	)			(442	)
Noninterest income			165				132				157				191				188				297				395
Performance and other data:
Average loans			(13,888	)			(12,507	)			(12,811	)			(12,169	)			(11,565	)			(13,201	)			(11,835	)
Average assets			(12,287	)			(10,961	)			(11,035	)			(10,330	)			(9,753	)			(11,627	)			(9,985	)
Adjusted basis
Condensed income statement:
Net interest income		$	201			$	239			$	227			$	222			$	210			$	440			$	395
Provision for loan and lease losses			229				106				275				125				200				335				305
Noninterest income			558				606				608				534				577				1,164				1,129
Inter-segment expense			5				4				2				2				1				9				2
Noninterest expense			300				325				316				294				293				626				590
Income before income taxes			225				410				242				335				293				634				627
Income taxes			84				154				93				128				112				238				240
Net income		$	141			$	256			$	149			$	207			$	181			$	396			$	387
Performance and other data:
Average loans		$	10,346			$	11,097			$	10,064			$	9,537			$	8,909			$	10,720			$	8,446
Average assets			14,475				15,078				14,437				13,906				13,291				14,776				12,920
(This table is continued on "WM-7.")

⁽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-7

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)
		Quarter Ended																				Six Months Ended
(This table is continued from "WM-6.")		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,				June 30,				June 30,
		2007				2007				2006				2006				2006				2007				2006
COMMERCIAL GROUP
Condensed income statement:
Net interest income		$	195			$	200			$	189			$	159			$	166			$	395			$	329
Provision for loan and lease losses			2				(10	)			(69	)			(2	)			(10	)			(7	)			(10	)
Noninterest income			62				14				40				25				17				76				29
Noninterest expense			74				74				72				60				57				148				125
Income before income taxes			181				150				226				126				136				330				243
Income taxes			68				56				86				48				52				124				93
Net income		$	113			$	94			$	140			$	78			$	84			$	206			$	150
Performance and other data:
Efficiency ratio			28.77	%			34.52	%			31.49	%			32.21	%			31.28	%			31.38	%			34.80	%
Average loans		$	38,789			$	38,641			$	37,552			$	32,414			$	31,505			$	38,715			$	31,260
Average assets			41,181				41,001				40,216				34,560				33,709				41,092				33,522
Average deposits			6,160				3,762				3,609				2,323				2,242				4,968				2,250
Loan volume			4,348				3,671				4,019				3,104				2,961				8,018				5,731
Employees at end of period			1,404				1,351				1,409				1,242				1,252				1,404				1,252
HOME LOANS GROUP
Condensed income statement:
Net interest income		$	215			$	245			$	273			$	276			$	290			$	460			$	628
Provision for loan and lease losses			101				49				47				84				38				150				57
Noninterest income			391				162				126				314				461				553				862
Inter-segment expense			16				18				15				15				15				34				28
Noninterest expense			548				521				534				528				617				1,069				1,239
Income (loss) before income taxes			(59	)			(181	)			(197	)			(37	)			81				(240	)			166
Income taxes (benefit)			(22	)			(68	)			(75	)			(14	)			31				(90	)			63
Net income (loss)		$	(37	)		$	(113	)		$	(122	)		$	(23	)		$	50			$	(150	)		$	103
Performance and other data:
Efficiency ratio			92.82	%			133.90	%			138.93	%			92.00	%			83.80	%			109.14	%			84.70	%
Average loans		$	43,312			$	53,254			$	51,048			$	45,407			$	43,988			$	48,255			$	46,934
Average assets			60,330				71,381				71,512				70,565				70,958				65,824				74,541
Average deposits			17,506				16,767				19,788				20,659				20,124				17,139				18,339
Loan volume			31,541				30,609				34,897				37,200				41,747				62,150				86,745
Employees at end of period			12,735				13,025				13,025				13,936				15,560				12,735				15,560
CORPORATE SUPPORT/TREASURY AND OTHER
Condensed income statement:
Net interest income (expense)		$	2			$	(15	)		$	(64	)		$	(107	)		$	(60	)		$	(13	)		$	(104	)
Provision for loan and lease losses			(51	)			27				44				(94	)			(17	)			(25	)			(113	)
Noninterest income (expense)			42				81				142				75				(88	)			123				63
Noninterest expense			77				110				233				223				153				186				216
Minority interest expense			42				43				34				34				37				85				37
Loss from continuing operations before income taxes			(24	)			(114	)			(233	)			(195	)			(321	)			(136	)			(181	)
Income taxes (benefit)			(38	)			(71	)			(103	)			(90	)			(129	)			(109	)			(96	)
Income (loss) from continuing operations			14				(43	)			(130	)			(105	)			(192	)			(27	)			(85	)
Income from discontinued operations			-				-				406				-				-				-				-
Net income (loss)		$	14			$	(43	)		$	276			$	(105	)		$	(192	)		$	(27	)		$	(85	)
Performance and other data:
Average loans		$	1,367			$	1,345			$	1,294			$	1,245			$	1,178			$	1,356			$	1,160
Average assets			41,801				40,877				46,208				40,823				39,061				41,341				38,057
Average deposits			37,847				46,205				47,891				45,976				39,083				42,002				36,149
Loan volume			72				107				144				58				82				179				105
Employees at end of period			4,783				4,788				5,043				5,105				5,406				4,783				5,406
(This table is continued on "WM-8.")

WM-8

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended																				Six Months Ended
(This table is continued from "WM-7.")		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,				June 30,				June 30,
		2007				2007				2006				2006				2006				2007				2006
RECONCILING ADJUSTMENTS
Condensed income statement:
Net interest income(1)		$	138			$	137			$	134			$	137			$	131			$	275			$	258
Noninterest income (expense)(2)			(114	)			(73	)			(98	)			(116	)			(121	)			(188	)			(268	)
Income (loss) before income taxes			24				64				36				21				10				87				(10	)
Income taxes (benefit)(3)			(17	)			43				(22	)			(15	)			(40	)			25				(55	)
Net income		$	41			$	21			$	58			$	36			$	50			$	62			$	45
Performance and other data:
Average loans(4)		$	(1,301	)		$	(1,479	)		$	(1,573	)		$	(1,600	)		$	(1,601	)		$	(1,389	)		$	(1,586	)
Average assets(4)			(1,301	)			(1,479	)			(1,573	)			(1,600	)			(1,601	)			(1,389	)			(1,586	)
TOTAL CONSOLIDATED
Condensed income statement:
Net interest income		$	2,034			$	2,081			$	1,998			$	1,947			$	2,060			$	4,115			$	4,176
Provision for loan and lease losses			372				234				344				166				224				606				306
Noninterest income			1,758				1,541				1,592				1,570				1,578				3,299				3,216
Noninterest expense			2,138				2,105				2,257				2,184				2,229				4,244				4,367
Minority interest expense			42				43				34				34				37				85				37
Income from continuing operations before income taxes			1,240				1,240				955				1,133				1,148				2,479				2,682
Income taxes			410				456				315				394				389				865				947
Income from continuing operations			830				784				640				739				759				1,614				1,735
Income from discontinued operations			-				-				418				9				8				-				17
Net income		$	830			$	784			$	1,058			$	748			$	767			$	1,614			$	1,752
Performance and other data:
Efficiency ratio			56.38	%			58.13	%			62.87	%			62.09	%			61.27	%			57.24	%			59.08	%
Average loans		$	242,229			$	258,064			$	270,414			$	267,832			$	266,870			$	250,102			$	264,610
Average assets			316,004				331,905				353,056				349,542				348,664				323,911				346,175
Average deposits			206,765				210,764				214,801				208,912				200,252				208,753				195,668
Loan volume			46,030				42,879				47,026				49,368				54,895				88,908				109,941
Employees at end of period			49,989				49,693				49,824				51,056				56,247				49,989				56,247

(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-9

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended
		June 30, 2007												Mar. 31, 2007												June 30, 2006
		Balance				Rate				Interest Income/ Expense				Balance				Rate				Interest Income/ Expense				Balance				Rate				Interest Income/ Expense
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets(1):
Federal funds sold and securities purchased under agreements to resell		$	3,964				5.39	%		$	53			$	3,930				5.39	%		$	52			$	4,413				4.99	%		$	56
Trading assets			4,995				8.67				108				5,594				8.10				113				8,595				7.69				165
Available-for-sale securities(2):
Mortgage-backed securities			18,576				5.36				249				17,887				5.47				245				21,840				5.34				292
Investment securities			7,983				5.10				102				6,753				5.17				87				6,215				4.91				76
Loans held for sale			26,225				6.43				421				35,447				6.37				562				24,536				6.42				395
Loans held in portfolio:
Loans secured by real estate:
Home loans(3)(4)			90,818				6.44				1,462				97,365				6.45				1,570				125,559				5.77				1,809
Home equity loans and lines of credit(4)			54,431				7.59				1,031				53,014				7.56				989				52,225				7.28				949
Subprime mortgage channel(5)			20,152				6.80				343				20,612				6.67				344				19,640				6.21				305
Home construction(6)			2,043				6.72				34				2,061				6.55				34				2,068				6.47				33
Multi-family			29,419				6.63				488				29,826				6.57				490				26,291				6.23				410
Other real estate			6,843				7.03				120				6,763				7.03				117				5,585				6.97				98
Total loans secured by real estate			203,706				6.83				3,478				209,641				6.79				3,544				231,368				6.23				3,604
Consumer:
Credit card			10,101				10.44				263				10,904				11.57				311				8,448				11.28				238
Other			254				12.44				8				267				12.96				9				594				9.74				14
Commercial			1,943				7.73				37				1,805				7.95				36				1,924				6.61				31
Total loans held in portfolio			216,004				7.02				3,786				222,617				7.04				3,900				242,334				6.42				3,887
Other			2,089				5.47				29				3,472				5.77				49				5,306				4.80				64
Total interest-earning assets			279,836				6.79				4,748				295,700				6.81				5,008				313,239				6.30				4,935
Noninterest-earning assets:
Mortgage servicing rights			6,782												6,304												9,003
Goodwill			9,054												9,054												8,302
Other assets			20,332												20,847												18,120
Total assets		$	316,004											$	331,905											$	348,664
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits		$	30,373				2.51				190			$	31,821				2.63				206			$	37,603				2.61				245
Savings and money market deposits			58,969				3.33				490				54,862				3.27				443				48,095				2.82				339
Time deposits			84,330				4.96				1,043				91,631				4.97				1,123				79,541				4.39				877
Total interest-bearing deposits			173,672				3.98				1,723				178,314				4.03				1,772				165,239				3.53				1,461
Federal funds purchased and commercial paper			2,169				5.36				29				3,846				5.48				52				7,767				4.97				97
Securities sold under agreements to repurchase			8,416				5.35				112				12,098				5.48				164				17,923				4.97				225
Advances from Federal Home Loan Banks			22,063				5.36				295				36,051				5.38				478				60,862				4.85				745
Other			39,886				5.57				555				32,808				5.67				461				26,239				5.27				347
Total interest-bearing liabilities			246,206				4.42				2,714				263,117				4.51				2,927				278,030				4.12				2,875
Noninterest-bearing sources:
Noninterest-bearing deposits			33,093												32,450												35,013
Other liabilities			9,610												9,482												7,698
Minority interests			2,659												2,449												1,965
Stockholders' equity			24,436												24,407												25,958
Total liabilities and stockholders' equity		$	316,004											$	331,905											$	348,664
Net interest spread and net interest income							2.37			$	2,034								2.30			$	2,081								2.18			$	2,060
Impact of noninterest-bearing sources							0.53												0.49												0.47
Net interest margin							2.90												2.79												2.65

(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 $344 million, $361 million and $245 million for the three months ended June 30, 2007, March 31, 2007 and June 30, 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 the 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.

WM-10

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Six Months Ended
		June 30, 2007												June 30, 2006
										Interest												Interest
										Income/												Income/
		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		$	3,947				5.39	%		$	105			$	4,086				4.82	%		$	99
Trading assets			5,293				8.37				221				10,135				7.18				363
Available-for-sale securities(2):
Mortgage-backed securities			18,234				5.42				494				20,997				5.31				558
Investment securities			7,372				5.13				188				5,534				4.78				132
Loans held for sale			30,810				6.40				984				27,164				6.30				856
Loans held in portfolio:
Loans secured by real estate:
Home loans(3)(4)			94,074				6.45				3,033				121,661				5.68				3,452
Home equity loans and lines of credit(4)			53,726				7.57				2,020				51,776				7.12				1,831
Subprime mortgage channel(5)			20,381				6.74				686				19,803				6.08				602
Home construction(6)			2,052				6.63				68				2,063				6.41				66
Multi-family			29,621				6.60				977				26,026				6.08				791
Other real estate			6,803				7.03				238				5,372				6.90				186
Total loans secured by real estate			206,657				6.81				7,022				226,701				6.12				6,928
Consumer:
Credit card			10,500				11.03				574				8,130				11.02				444
Other			261				12.70				17				607				10.40				32
Commercial			1,874				7.83				73				2,008				6.39				64
Total loans held in portfolio			219,292				7.03				7,686				237,446				6.30				7,468
Other			2,776				5.65				78				5,161				4.50				116
Total interest-earning assets			287,724				6.80				9,756				310,523				6.19				9,592
Noninterest-earning assets:
Mortgage servicing rights			6,545												8,634
Goodwill			9,054												8,300
Other assets			20,588												18,718
Total assets		$	323,911											$	346,175
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits		$	31,093				2.57				397			$	39,012				2.45				473
Savings and money market deposits			56,927				3.31				933				46,464				2.61				602
Time deposits			87,960				4.96				2,165				76,379				4.22				1,607
Total interest-bearing deposits			175,980				4.00				3,495				161,855				3.33				2,682
Federal funds purchased and commercial paper			3,003				5.44				81				7,616				4.72				179
Securities sold under agreements to repurchase			10,247				5.43				276				16,608				4.74				396
Advances from Federal Home Loan Banks			29,019				5.37				773				63,912				4.65				1,491
Other			36,366				5.62				1,016				26,437				5.04				668
Total interest-bearing liabilities			254,615				4.47				5,641				276,428				3.92				5,416
Noninterest-bearing sources:
Noninterest-bearing deposits			32,773												33,813
Other liabilities			9,547												8,284
Minority interests			2,554												1,262
Stockholders' equity			24,422												26,388
Total liabilities and stockholders' equity		$	323,911											$	346,175
Net interest spread and net interest income							2.33			$	4,115								2.27			$	4,176
Impact of noninterest-bearing sources							0.52												0.43
Net interest margin							2.85												2.70

(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 $706 million and $439 million for the six months ended June 30, 2007 and June 30, 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 the 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.

WM-11

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Change from Mar. 31, 2007 to June 30, 2007				June 30, 2007				Mar. 31, 2007				Dec. 31, 2006				Sept. 30, 2006				June 30, 2006
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing		$	(258	)		$	24,142			$	24,400			$	22,838			$	22,466			$	22,450
Interest bearing			(1,931	)			29,592				31,523				32,723				33,761				35,958
Total checking deposits			(2,189	)			53,734				55,923				55,561				56,227				58,408
Savings and money market deposits			(441	)			43,617				44,058				41,943				39,481				37,664
Time deposits(1)			878				48,140				47,262				46,821				47,361				43,685
Total retail deposits			(1,752	)			145,491				147,243				144,325				143,069				139,757
Commercial business and other deposits			1,445				19,186				17,741				15,175				15,831				15,625
Brokered deposits:
Consumer			(1,842	)			17,153				18,995				22,299				22,430				14,316
Institutional			(6,231	)			11,025				17,256				22,339				18,236				22,708
Custodial and escrow deposits(2)			(449	)			8,525				8,974				9,818				11,316				12,152
Total deposits		$	(8,829	)		$	201,380			$	210,209			$	213,956			$	210,882			$	204,558

(1)	Weighted average remaining maturity of time deposits was 8 months at June 30, 2007, 9 months at March 31, 2007 and December 31, 2006 and 10 months at September 30, 2006 and June 30, 2006.
(2)	Substantially all custodial and escrow deposits are reported as noninterest-bearing checking deposits.

		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
Retail Deposit Accounts (number of accounts)
Noninterest bearing checking			10,449,887				9,983,313				9,611,706				9,403,072				9,063,458
Interest bearing checking			1,399,203				1,459,534				1,503,365				1,532,215				1,564,396
Savings and money market			6,936,870				6,708,784				6,525,772				6,379,068				6,161,187
Total transaction accounts, end of period(1)			18,785,960				18,151,631				17,640,843				17,314,355				16,789,041
Net change in noninterest bearing checking accounts			466,574				371,607				208,634				339,614				432,812
Net change in checking accounts			406,243				327,776				179,784				307,433				404,190

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

		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
Retail Banking Stores
Stores, beginning of period			2,228				2,225				2,225				2,201				2,168
Stores opened during the quarter			11				6				81	(1)			25				35
Stores closed during the quarter			(4	)			(3	)			(81	)			(1	)			(2	)
Stores, end of period			2,235				2,228				2,225				2,225				2,201

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

WM-12

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended
		June 30, 2007				Mar. 31, 2007				Dec. 31, 2006				Sept. 30, 2006				June 30, 2006
Loan Volume
Home loans:
Short-term adjustable-rate loans(1):
Option ARMs		$	7,888			$	7,777			$	9,487			$	11,601			$	12,728
Other ARMs			22				36				13				42				387
Total short-term adjustable-rate loans			7,910				7,813				9,500				11,643				13,115
Medium-term adjustable-rate loans(2)			14,953				13,567				17,323				16,707				16,041
Fixed-rate loans			8,172				8,824				7,351				8,818				13,695
Total home loan volume			31,035				30,204				34,174				37,168				42,851
Home equity loans and lines of credit			9,880				8,319				8,098				8,498				8,251
Home construction(3)			426				298				298				269				421
Multi-family			3,067				2,663				2,977				2,186				2,230
Other real estate			1,246				1,080				1,182				983				787
Total loans secured by real estate(4)			45,654				42,564				46,729				49,104				54,540
Consumer(5)			20				26				23				26				36
Commercial			356				289				274				238				319
Total loan volume		$	46,030			$	42,879			$	47,026			$	49,368			$	54,895
Loan Volume by Channel
Retail		$	27,051			$	23,284			$	24,426			$	22,239			$	23,709
Wholesale			14,588				13,378				16,002				14,964				14,798
Purchased			4,391				6,217				6,398				11,560				12,033
Correspondent			-				-				200				605				4,355
Total loan volume by channel		$	46,030			$	42,879			$	47,026			$	49,368			$	54,895
Refinancing Activity(6)
Home loan refinancing		$	22,637			$	22,552			$	25,060			$	23,993			$	26,667
Home equity loans and lines of credit and consumer			157				550				599				689				161
Home construction loans			121				276				283				254				379
Multi-family and other real estate			1,378				1,131				2,240				1,398				1,419
Total refinancing		$	24,293			$	24,509			$	28,182			$	26,334			$	28,626

(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 $2.45 billion, $3.48 billion, $6.07 billion, $9.40 billion and $8.20 billion for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006.
(5)	Excludes credit card loan volume.
(6)	Includes loan refinancing entered into by both new and pre-existing loan customers.

WM-13

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Six Months Ended
		June 30,				June 30,
		2007				2006
Loan Volume
Home loans:
Short-term adjustable-rate loans(1):
Option ARMs		$	15,666			$	21,505
Other ARMs			58				3,330
Total short-term adjustable-rate loans			15,724				24,835
Medium-term adjustable-rate loans(2)			28,519				30,906
Fixed-rate loans			16,996				31,300
Total home loan volume			61,239				87,041
Home equity loans and lines of credit			18,199				15,558
Home construction(3)			724				914
Multi-family			5,729				4,264
Other real estate			2,326				1,502
Total loans secured by real estate(4)			88,217				109,279
Consumer(5)			46				85
Commercial			645				577
Total loan volume		$	88,908			$	109,941
Loan Volume by Channel
Retail		$	50,335			$	46,289
Wholesale			27,965				31,520
Purchased			10,608				19,351
Correspondent			-				12,781
Total loan volume by channel		$	88,908			$	109,941
Refinancing Activity(6)
Home loan refinancing		$	45,190			$	53,537
Home equity loans and lines of credit and consumer			707				377
Home construction loans			396				772
Multi-family and other real estate			2,509				2,774
Total refinancing		$	48,802			$	57,460

(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  $5.93 billion and $15.29 billion for the six months ended June 30, 2007 and June 30, 2006.
(5)	Excludes credit card loan volume.
(6)	Includes loan refinancing entered into by both new and pre-existing loan customers.

WM-14

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Change from Mar. 31, 2007 to June 30, 2007				June 30, 2007				Mar. 31, 2007				Dec. 31, 2006				Sept. 30, 2006				June 30, 2006
Loans Held in Portfolio
Loans secured by real estate:
Home:
Short-term adjustable-rate loans(1):
Option ARMs(2)		$	(4,675	)		$	53,455			$	58,130			$	63,557			$	67,142			$	69,224
Other ARMs			37				13,538				13,501				15,091				16,375				15,021
Total short-term adjustable-rate loans			(4,638	)			66,993				71,631				78,648				83,517				84,245
Medium-term adjustable-rate loans(3)			(277	)			29,647				29,924				29,774				47,740				52,032
Fixed-rate loans			(1	)			9,505				9,506				9,782				9,928				9,424
Total home loans			(4,916	)			106,145				111,061				118,204				141,185				145,701
Home equity loans and lines of credit			2,508				58,631				56,123				54,924				54,364				52,981
Home construction(4)			(13	)			2,058				2,071				2,082				2,077				2,082
Multi-family			(225	)			29,290				29,515				30,161				27,407				26,749
Other real estate			151				6,879				6,728				6,745				5,869				5,537
Total loans secured by real estate(5)			(2,495	)			203,003				205,498				212,116				230,902				233,050
Consumer:
Credit card			423				9,913				9,490				10,861				8,807				8,451
Other			(18	)			243				261				276				281				287
Commercial			63				1,835				1,772				1,707				1,775				1,715
Total loans held in portfolio(6)			(2,027	)			214,994				217,021				224,960				241,765				243,503
Less: allowance for loan and lease losses			(20	)			(1,560	)			(1,540	)			(1,630	)			(1,550	)			(1,663	)
Total loans held in portfolio, net		$	(2,047	)		$	213,434			$	215,481			$	223,330			$	240,215			$	241,840

(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 $1.30 billion, $1.12 billion, $888 million, $681 million and $474 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006.
(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		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
			2007				2007				2006				2006				2006
	Home loans		$	17,602			$	17,610			$	18,725			$	20,083			$	20,498
	Home equity loans and lines of credit			2,855				2,749				2,042				1,522				424
	Total		$	20,457			$	20,359			$	20,767			$	21,605			$	20,922

⁽⁶⁾ Includes net unamortized deferred loan origination costs of $1.33 billion, $1.43 billion, $1.48 billion, $1.61 billion and $1.62 billion at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006.

WM-15

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Change from Mar. 31, 2007 to June 30, 2007				June 30, 2007					Weighted Average Coupon Rate			Mar. 31, 2007					Weighted Average Coupon Rate			June 30, 2006					Weighted Average Coupon Rate
Selected Loans Secured by Real Estate and MBS
Home loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs		$	(4,675	)		$	53,455				7.74	%		$	58,130				7.74	%		$	69,224				6.72
Other ARMs			37				13,538				7.28				13,501				7.25				15,021				6.75
Total short-term adjustable-rate loans			(4,638	)			66,993				7.65				71,631				7.65				84,245				6.72
Medium-term adjustable-rate loans(2)			(277	)			29,647				5.99				29,924				5.86				52,032				5.68
Fixed-rate loans			(1	)			9,505				6.71				9,506				6.68				9,424				6.50
Total home loans held in portfolio			(4,916	)			106,145				7.10				111,061				7.08				145,701				6.34
Home equity loans and lines of credit:
Short-term (Prime-based or treasury-based)(1)			1,141				34,995				8.47				33,854				8.45				36,640				8.33
Fixed-rate loans			1,367				23,636				7.68				22,269				7.62				16,341				6.88
Total home equity loans and lines of credit			2,508				58,631				8.15				56,123				8.12				52,981				7.88
Multi-family loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs			(723	)			7,650				7.28				8,373				7.29				9,255				6.54
Other ARMs			131				7,910				6.77				7,779				7.01				6,095				6.66
Total short-term adjustable-rate loans			(592	)			15,560				7.02				16,152				7.15				15,350				6.59
Medium-term adjustable-rate loans(2)			345				11,890				5.93				11,545				5.78				9,781				5.46
Fixed-rate loans			22				1,840				6.35				1,818				6.39				1,618				6.48
Total multi-family loans held in portfolio			(225	)			29,290				6.53				29,515				6.57				26,749				6.17
Total selected loans held in portfolio secured by real estate(3)			(2,633	)			194,066				7.33				196,699				7.30				225,431				6.68
Loans held for sale(4)			(7,395	)			18,999				6.39				26,394				6.44				23,031				6.43
MBS(5):
Short-term adjustable-rate MBS(1)			(510	)			5,453				5.70				5,963				5.71				9,058				5.42
Medium-term adjustable-rate MBS(2)			349				2,802				5.22				2,453				5.09				3,853				4.97
Fixed-rate MBS			4,032				11,555				5.39				7,523				5.25				8,527				5.27
Total MBS(6)			3,871				19,810				5.45				15,939				5.40				21,438				5.28
Total selected loans secured by real estate and MBS		$	(6,157	)		$	232,875				7.10			$	239,032				7.08			$	269,900				6.55

(1)	Short-term adjustable-rate loans and MBS reprice within one year.
(2)	Medium-term adjustable-rate loans and MBS reprice after one year.
(3)	At June 30, 2007, March 31, 2007, and June 30, 2006, adjustable-rate loans with lifetime caps were $158.24 billion, $162.24  billion, and $193.17 billion with a lifetime weighted average cap rate of 12.96%, 12.31% and 12.13%.
(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 June 30, 2007, March 31, 2007 and June 30, 2006, the par value of adjustable-rate MBS with lifetime caps were $8.02 billion, $8.16 billion and $12.81 billion with a lifetime weighted average cap rate of 10.57%, 10.55% and 10.42%.

Rollforward of Loans Held for Sale		Mar. 31, 2007 to June 30, 2007				Dec. 31, 2006 to June 30, 2007
Balance, beginning of period		$	26,874			$	44,970
Mortgage loans originated, purchased and transferred from held in portfolio			29,492				59,578
Mortgage loans transferred to held in portfolio			(1,760	)			(2,674	)
Mortgage loans sold and other(1)			(35,127	)			(82,630	)
Net change in consumer loans held for sale			(152	)			83
Balance, end of period		$	19,327			$	19,327
Rollforward of Home Loans Held in Portfolio
Balance, beginning of period		$	111,061			$	118,204
Loans originated, purchased and transferred from held for sale			5,136				10,285
Loan payments, transferred to held for sale and other			(10,052	)			(22,344	)
Balance, end of period		$	106,145			$	106,145

⁽¹⁾ The unpaid principal balance ("UPB") of home loans sold was $30.30 billion and $75.55 billion for the three and six months ended June 30, 2007.

WM-16

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended
Detail of Revenue from Sales and Servicing of Home Mortgage Loans		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				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		$	66			$	149			$	64			$	206			$	190
Revaluation gain (loss) from derivatives economically hedging loans held for sale			126				(54	)			91				(87	)			61
Gain from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments			192				95				155				119				251
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue(2)			526				514				497				525				586
Change in MSR fair value due to payments on loans and other			(401	)			(356	)			(375	)			(410	)			(460	)
Net mortgage loan servicing revenue			125				158				122				115				126
Change in MSR fair value due to valuation inputs or assumptions			530				(96	)			(80	)			(469	)			435
Revaluation gain (loss) from derivatives economically hedging MSR			(547	)			(32	)			(33	)			353				(433	)
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			108				30				9				(1	)			(29	)
Total revenue from sales and servicing of home mortgage loans		$	300			$	125			$	164			$	118			$	222

		Six Months Ended
Detail of Revenue from Sales and Servicing of Home Mortgage Loans		June 30,				June 30,
		2007				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		$	214			$	356
Revaluation gain from derivatives economically hedging loans held for sale			72				104
Gain from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments			286				460
Home mortgage loan servicing revenue:
Home mortgage loan servicing revenue(2)			1,041				1,159
Change in MSR fair value due to payments on loans and other			(757	)			(869	)
Net mortgage loan servicing revenue			284				290
Change in MSR fair value due to valuation inputs or assumptions			434				849
Revaluation loss from derivatives economically hedging MSR			(579	)			(956	)
Adjustment to MSR fair value for MSR sale			-				(157	)
Home mortgage loan servicing revenue, net of  MSR valuation
changes and derivative risk management instruments			139				26
Total revenue from sales and servicing of home mortgage loans		$	425			$	486

(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, late charges and the shortfall of the scheduled interest required to be remitted to investors and that which is collected from borrowers upon payoff.

WM-17

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
MSR Valuation and Risk Management(1):
Change in MSR fair value due to valuation inputs or assumptions		$	530			$	(96	)		$	(80	)		$	(469	)		$	435
Gain (loss) on MSR risk management instruments:
Revaluation gain (loss) from derivatives			(547	)			(32	)			(33	)			353				(433	)
Revaluation gain (loss) from certain trading securities			(4	)			4				(5	)			39				(47	)
Loss from certain available-for-sale securities			-				-				-				(1	)			-
Total gain (loss) on MSR risk management instruments			(551	)			(28	)			(38	)			391				(480	)
Total changes in MSR valuation and risk management		$	(21	)		$	(124	)		$	(118	)		$	(78	)		$	(45	)

		Six Months Ended
		June 30,				June 30,
		2007				2006
MSR Valuation and Risk Management(1):
Change in MSR fair value due to valuation inputs or assumptions		$	434			$	849
Loss on MSR risk management instruments:
Revaluation loss from derivatives			(579	)			(956	)
Revaluation loss from certain trading securities			-				(89	)
Total loss on MSR risk management instruments			(579	)			(1,045	)
Total changes in MSR valuation and risk management		$	(145	)		$	(196	)

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

WM-18

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
Rollforward of Mortgage Servicing Rights(1)
Balance, beginning of period		$	6,507			$	6,193			$	6,288			$	9,162			$	8,736
Home loans:
Additions			592				760				357				533				607
Change in MSR fair value due to payments on loans and other			(401	)			(356	)			(375	)			(410	)			(460	)
Change in MSR fair value due to valuation inputs or assumptions			530				(96	)			(80	)			(469	)			435
Adjustment to MSR fair value for MSR sale			-				-				-				-				(157	)
Sale of MSR			-				-				1				(2,527	)			-
Net change in commercial real estate MSR			3				6				2				(1	)			1
Balance, end of period		$	7,231			$	6,507			$	6,193			$	6,288			$	9,162
Rollforward of Mortgage Loans Serviced for Others
Balance, beginning of period		$	467,782			$	444,696			$	439,208			$	570,352			$	569,501
Home loans:
Additions			29,949				44,550				25,833				29,899				30,949
Sale of servicing			-				-				-				(141,842	)			(9	)
Loan payments and other			(24,213	)			(22,469	)			(20,744	)			(19,288	)			(30,368	)
Net change in commercial real estate loans			1,349				1,005				399				87				279
Balance, end of period		$	474,867			$	467,782			$	444,696			$	439,208			$	570,352

		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
Total Servicing Portfolio
Mortgage loans serviced for others		$	474,867			$	467,782			$	444,696			$	439,208			$	570,352
Consumer loans serviced for others			14,745				13,645				12,415				13,112				12,644
Servicing on retained MBS without MSR			1,023				1,082				1,140				1,199				1,262
Servicing on owned loans			218,122				226,217				251,766				245,925				247,489
Subservicing portfolio			439				465				84,797				137,089				552
Total servicing portfolio		$	709,196			$	709,191			$	794,814			$	836,533			$	832,299

		June 30, 2007
		Unpaid				Weighted
		Principal				Average
		Balance				Servicing Fee
						(in basis points,
Mortgage Loans Serviced for Others by Loan Type						annualized)
Agency		$	246,758				31
Private			193,661				57
Subprime mortgage channel-home			34,448				50
Total mortgage loans serviced for others(2)		$	474,867				43

(1)	MSR as a percentage of mortgage loans serviced for others was 1.52%, 1.39%, 1.39%, 1.43% and 1.61% at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006.
(2)	Weighted average coupon rate was 6.33% at June 30, 2007.

WM-19

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		Quarter Ended
		June 30, 2007				Mar. 31, 2007				Dec. 31, 2006				Sept. 30, 2006				June 30, 2006
Allowance for Loan and Lease Losses
Balance, beginning of quarter		$	1,540			$	1,630			$	1,550			$	1,663			$	1,642
Allowance transferred to loans held for sale			(81	)			(148	)			(158	)			(125	)			(87	)
Allowance acquired through business combinations/other			-				7				30				-				-
Provision for loan and lease losses			372				234				344				166				224
			1,831				1,723				1,766				1,704				1,779
Loans charged off:
Loans secured by real estate:
Home loans(1)			(21	)			(35	)			(16	)			(12	)			(11	)
Home equity loans and lines of credit(1)			(55	)			(29	)			(13	)			(8	)			(6	)
Subprime mortgage channel(2)			(103	)			(40	)			(52	)			(47	)			(21	)
Home construction(3)			(1	)			-				(4	)			(3	)			-
Other real estate			(1	)			-				(1	)			(2	)			-
Total loans secured by real estate			(181	)			(104	)			(86	)			(72	)			(38	)
Consumer:
Credit card			(106	)			(96	)			(68	)			(98	)			(94	)
Other			(2	)			(3	)			(3	)			(3	)			(6	)
Commercial			(15	)			(9	)			(9	)			(6	)			(4	)
Total loans charged off			(304	)			(212	)			(166	)			(179	)			(142	)
Recoveries of loans previously charged off:
Loans secured by real estate:
Home loans(1)			1				1				-				-				1
Home equity loans and lines of credit(1)			3				3				2				2				3
Subprime mortgage channel(2)			11				1				4				-				1
Multi-family			-				-				-				-				1
Other real estate			-				-				-				-				1
Total loans secured by real estate			15				5				6				2				7
Consumer:
Credit card			15				16				18				16				15
Other			-				6				3				4				3
Commercial			3				2				3				3				1
Total recoveries of loans previously charged off			33				29				30				25				26
Net charge-offs			(271	)			(183	)			(136	)			(154	)			(116	)
Balance, end of quarter		$	1,560			$	1,540			$	1,630			$	1,550			$	1,663
Net charge-offs (annualized) as a percentage
of average loans held in portfolio			0.50	%			0.33	%			0.23	%			0.26	%			0.19	%
Allowance as a percentage of loans held in portfolio			0.73				0.71				0.72				0.64				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 the 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-20

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2007				2007				2006				2006				2006
Nonperforming Assets
Nonaccrual loans(1)(2):
Loans secured by real estate:
Home loans(3)		$	991			$	690			$	640			$	568			$	512
Home equity loans and lines of credit(3)			378				297				231				162				103
Subprime mortgage channel (4)			1,707				1,503				1,283				1,121				1,092
Home construction(5)			47				41				27				35				31
Multi-family			69				60				46				31				19
Other real estate			52				52				51				53				56
Total nonaccrual loans secured by real estate			3,244				2,643				2,278				1,970				1,813
Consumer			1				1				1				1				1
Commercial			30				28				16				16				16
Total nonaccrual loans held in portfolio			3,275				2,672				2,295				1,987				1,830
Foreclosed assets(6)			750				587				480				405				330
Total nonperforming assets(7)		$	4,025			$	3,259			$	2,775			$	2,392			$	2,160
Total nonperforming assets
as a percentage of total assets			1.29	%			1.02	%			0.80	%			0.69	%			0.62	%

(1)	Nonaccrual loans held for sale, which are excluded from the nonaccrual balances presented above, were $171 million, $195 million, $185 million, $129 million, and $122 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 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 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 $49 million, $72 million, $99 million, $129 million, and $142 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 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”).
(7)	Excludes accruing restructured loans of $285 million, $355 million, $330 million, $331 million, and $336 million at June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006, and June 30, 2006.