Mr. Cooper (COOP) 8-K Washington Mutual Announces First Quarter 2005 Earnings

Exhibit 99.2

WM - 1

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,
	2005			2004			2004			2004			2004
Interest Income
Loans held for sale	$	470		$	393		$	341		$	406		$	332
Loans held in portfolio	2,544			2,421			2,226			2,111			2,067
Available-for-sale securities	224			157			163			180			265
Trading securities	79			66			40			21			24
Other interest and dividend income	43			29			41			34			33
Total interest income	3,360			3,066			2,811			2,752			2,721
Interest Expense
Deposits	696			604			539			458			443
Borrowings	774			612			532			500			546
Total interest expense	1,470			1,216			1,071			958			989
Net interest income	1,890			1,850			1,740			1,794			1,732
Provision for loan and lease losses	16			37			56			60			56
Net interest income after provision for loan and lease losses	1,874			1,813			1,684			1,734			1,676
Noninterest Income
Home loan mortgage banking income, net	776			352			504			-			531
Depositor and other retail banking fees	490			515			514			507			463
Securities fees and commissions	110			110			104			105			107
Insurance income	46			47			61			57			61
Portfolio loan related income	85			101			109			103			87
Trading securities income (expense)	(89		)	26			51			5			8
Gain (loss) from other available-for-sale securities	(122		)	(23		)	11			41			21
Loss on extinguishment of borrowings	-			-			(147		)	(1		)	(89		)
Other income	112			89			57			77			48
Total noninterest income	1,408			1,217			1,264			894			1,237
Noninterest Expense
Compensation and benefits	876			839			841			849			899
Occupancy and equipment	402			462			404			393			400
Telecommunications and outsourced information services	104			115			118			123			123
Depositor and other retail banking losses	55			61			54			40			40
Advertising and promotion	55			57			76			84			58
Professional fees	34			54			34			32			39
Other expense	313			350			342			327			321
Total noninterest expense	1,839			1,938			1,869			1,848			1,880
Income from continuing operations before income taxes	1,443			1,092			1,079			780			1,033
Income taxes	541			424			405			291			385
Income from continuing operations, net of taxes	902			668			674			489			648
Discontinued Operations
Loss from discontinued operations before income taxes	-			-			-			-			(32		)
Gain on disposition of discontinued operations	-			-			-			-			676
Income taxes	-			-			-			-			245
Income from discontinued operations, net of taxes	-			-			-			-			399
Net Income	$	902		$	668		$	674		$	489		$	1,047
Basic Earnings Per Common Share:
Income from continuing operations	$	1.04		$	0.77		$	0.78		$	0.57		$	0.75
Income from discontinued operations, net	-			-			-			-			0.46
Net income	1.04			0.77			0.78			0.57			1.21
Diluted Earnings Per Common Share:
Income from continuing operations	$	1.01		$	0.76		$	0.76		$	0.55		$	0.73
Income from discontinued operations, net	-			-			-			-			0.45
Net income	1.01			0.76			0.76			0.55			1.18
Dividends declared per common share	0.46			0.45			0.44			0.43			0.42
Basic weighted average number of common shares outstanding (in thousands)	864,933			863,055			862,004			860,496			863,299
Diluted weighted average number of common shares outstanding (in thousands)	888,789			883,991			882,323			883,414			886,467

WM - 2

Washington Mutual, Inc.

Consolidated Statements of Financial Condition

(dollars in millions, except per share data)

(unaudited)

	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2005			2004			2004			2004			2004
Assets
Cash and cash equivalents	$	4,811		$	4,455		$	4,689		$	5,133		$	6,045
Federal funds sold and securities purchased under agreements to resell	1,152			82			30			70			1,783
Trading securities	6,066			5,588			3,113			1,336			968
Available-for-sale securities, total amortized cost of $20,569, $19,047, $16,312, $19,392 and $22,843:
Mortgage-backed securities	15,947			14,923			10,168			10,042			10,766
Investment securities	4,756			4,296			6,319			9,337			12,565
Loans held for sale	41,197			42,743			29,184			27,795			34,207
Loans held in portfolio	214,114			207,071			206,158			194,543			186,380
Allowance for loan and lease losses	(1,280		)	(1,301		)	(1,322		)	(1,293		)	(1,260		)
Total loans held in portfolio, net of allowance for loan and lease losses	212,834			205,770			204,836			193,250			185,120
Investment in Federal Home Loan Banks	3,973			4,059			3,883			3,965			3,916
Mortgage servicing rights	6,802			5,906			6,112			7,501			5,239
Goodwill	6,196			6,196			6,196			6,196			6,196
Other assets	15,962			13,900			14,298			13,919			13,963
Total assets	$	319,696		$	307,918		$	288,828		$	278,544		$	280,768
Liabilities
Deposits:
Noninterest-bearing deposits	$	34,941		$	32,780		$	32,250		$	33,343		$	35,714
Interest-bearing deposits	148,690			140,878			136,445			129,123			125,267
Total deposits	183,631			173,658			168,695			162,466			160,981
Federal funds purchased and commercial paper	2,053			4,045			7,025			2,293			4,501
Securities sold under agreements to repurchase	16,716			15,944			15,611			15,764			18,306
Advances from Federal Home Loan Banks	66,730			70,074			59,758			61,379			58,494
Other borrowings	21,938			18,498			12,747			12,113			13,692
Other liabilities	6,861			4,473			4,172			4,160			4,411
Total liabilities	297,929			286,692			268,008			258,175			260,385
Stockholders' equity	21,767			21,226			20,820			20,369			20,383
Total liabilities and stockholders' equity	$	319,696		$	307,918		$	288,828		$	278,544		$	280,768
Common shares outstanding at end of period (in thousands)(1)	877,287			874,262			873,085			872,246			868,953
Book value per common share(2)	$	24.98		$	24.45		$	24.01		$	23.51		$	23.62
Tangible book value per common share(2)	18.01			17.45			16.99			16.47			16.53
Employees at end of period	52,488			52,579			55,488			57,274			59,173

⁽¹⁾     Includes 6,000,000 shares held in escrow in all periods reported.

⁽²⁾     Excludes 6,000,000 shares held in escrow in all periods reported.

WM - 3

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2005			2004			2004			2004			2004
Stockholders' Equity Rollforward
Balance, beginning of period	$	21,226		$	20,820		$	20,369		$	20,383		$	19,742
Net income	902			668			674			489			1,047
Other comprehensive income (loss), net of tax	(8		)	49			98			(210		)	512
Cash dividends declared on common stock	(402		)	(390		)	(381		)	(372		)	(367		)
Common stock repurchased and retired	(100		)	-			-			-			(712		)
Common stock issued	149			79			60			79			161
Balance, end of period	$	21,767		$	21,226		$	20,820		$	20,369		$	20,383

WM - 4

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2005			2004			2004			2004			2004
RETAIL BANKING AND FINANCIAL SERVICES GROUP
Condensed income statement:
Net interest income	$	1,343		$	1,323		$	1,255		$	1,224		$	1,187
Provision for loan and lease losses	37			34			42			43			58
Noninterest income	695			717			715			703			623
Inter-segment revenue	12			8			3			7			6
Noninterest expense	1,148			1,132			1,116			1,115			1,071
Income before income taxes	865			882			815			776			687
Income taxes	327			317			309			294			260
Net income	$	538		$	565		$	506		$	482		$	427
Performance and other data:
Efficiency ratio(1)	49.78		%	48.95		%	49.97		%	50.97		%	51.86		%
Average loans	$	177,635		$	177,204		$	167,569		$	158,966		$	149,377
Average assets	190,479			189,872			180,003			171,343			161,359
Average deposits	132,982			132,771			131,850			128,680			128,000
Loan volume	12,493			13,337			14,178			14,988			12,778
Employees at end of period	31,152			30,107			30,069			29,640			29,077
MORTGAGE BANKING GROUP
Condensed income statement:
Net interest income	$	286		$	293		$	287		$	369		$	288
Noninterest income	682			566			769			208			761
Inter-segment expense	12			8			3			7			6
Noninterest expense	566			629			615			666			677
Income (loss) before income taxes	390			222			438			(96		)	366
Income taxes (benefit)	147			80			165			(37		)	138
Net income (loss)	$	243		$	142		$	273		$	(59	)	$	228
Performance and other data:
Efficiency ratio(1)	53.83		%	67.78		%	53.40		%	107.91		%	59.98		%
Average loans	$	27,765		$	24,880		$	22,611		$	26,999		$	19,871
Average assets	49,019			44,195			40,037			44,568			38,914
Average deposits	13,107			15,121			15,385			19,837			14,877
Loan volume	38,498			41,782			40,491			56,219			43,720
Employees at end of period	12,626			14,197			16,826			18,916			21,203
COMMERCIAL GROUP
Condensed income statement:
Net interest income	$	323		$	322		$	325		$	342		$	343
Provision for loan and lease losses	2			11			8			10			16
Noninterest income	158			61			65			102			86
Noninterest expense	175			192			164			149			156
Income before income taxes	304			180			218			285			257
Income taxes	104			56			75			101			90
Net income	$	200		$	124		$	143		$	184		$	167
Performance and other data:
Efficiency ratio(1)	30.36		%	42.23		%	34.52		%	26.89		%	29.57		%
Average loans	$	41,783		$	40,917		$	38,799		$	38,496		$	36,984
Average assets	46,647			45,678			43,730			43,749			42,805
Average deposits	7,308			7,791			7,811			6,898			6,049
Loan volume	8,524			8,102			7,156			8,314			5,667
Employees at end of period	3,530			3,100			3,248			3,207			3,130

(This table is continued on "WM-5".)

⁽¹⁾     The efficiency ratio is defined as noninterest expense, excluding a cost of capital charge on goodwill, divided by total revenue (net interest income and noninterest income).

WM - 5

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
(This table is continued from "WM-4".)	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2005			2004			2004			2004			2004
CORPORATE SUPPORT/TREASURY AND OTHER
Condensed income statement:
Net interest expense	$	(175	)	$	(201	)	$	(237	)	$	(247	)	$	(189	)
Noninterest income (expense)	(65		)	12			(123		)	24			(69		)
Noninterest expense	158			197			186			128			186
Income (loss) from continuing operations	(398		)	(386		)	(546		)	(351		)	(444		)
Income taxes (benefit)	(149		)	(150		)	(205		)	(131		)	(165		)
Income (loss) from continuing operations	(249		)	(236		)	(341		)	(220		)	(279		)
Income from discontinued operations, net of taxes	-			-			-			-			399
Net income (loss)	$	(249	)	$	(236	)	$	(341	)	$	(220	)	$	120
Performance and other data:
Average assets	$	23,809		$	19,279		$	21,721		$	26,025		$	29,996
Average deposits	21,788			18,190			13,820			9,391			5,028
Employees at end of period	5,180			5,175			5,345			5,511			5,763
RECONCILING ADJUSTMENTS
Condensed income statement:
Net interest income(2)	$	113		$	113		$	110		$	106		$	103
Provision (reversal of reserve) for loan and lease losses(3)	(23		)	(8		)	6			7			(18		)
Noninterest income (expense)(4)	(62		)	(139		)	(162		)	(143		)	(164		)
Noninterest (income) expense(5)	(208		)	(212		)	(212		)	(210		)	(210		)
Income before income taxes	282			194			154			166			167
Income taxes(6)	112			121			61			64			62
Net income	$	170		$	73		$	93		$	102		$	105
Performance and other data:
Average loans(7)	$	(1,556	)	$	(1,622	)	$	(1,600	)	$	(1,553	)	$	(1,505	)
Average assets(7)(8)	(1,782		)	(1,866		)	(1,822		)	(1,745		)	(1,668		)
TOTAL CONSOLIDATED
Condensed income statement:
Net interest income	$	1,890		$	1,850		$	1,740		$	1,794		$	1,732
Provision for loan and lease losses	16			37			56			60			56
Noninterest income	1,408			1,217			1,264			894			1,237
Noninterest expense	1,839			1,938			1,869			1,848			1,880
Income from continuing operations before income taxes	1,443			1,092			1,079			780			1,033
Income taxes	541			424			405			291			385
Income from continuing operations	902			668			674			489			648
Income from discontinued operations, net of taxes	-			-			-			-			399
Net income	$	902		$	668		$	674		$	489		$	1,047
Performance and other data:
Efficiency ratio(9)	55.77		%	63.18		%	62.19		%	68.77		%	63.34		%
Average loans	$	245,627		$	241,379		$	227,379		$	222,908		$	204,727
Average assets	308,172			297,158			283,669			283,940			271,406
Average deposits	175,185			173,873			168,866			164,806			153,954
Loan volume	59,515			63,221			61,825			79,521			62,165
Employees at end of period	52,488			52,579			55,488			57,274			59,173

⁽²⁾     Represents the difference between home loan premium amortization recorded by the Retail Banking and Financial Services segment and the amount recognized in the Company's Consolidated Statements of Income.  For management reporting purposes, loans that are held in portfolio by the Retail Banking and Financial Services segment are treated as if they are purchased from the Mortgage Banking segment.  Since the cost basis of these loans includes an assumed profit factor paid to the Mortgage Banking segment, the amortization of loan premiums recorded by the Retail Banking and Financial Services segment includes this assumed profit factor and must therefore be eliminated as a reconciling adjustment.

⁽³⁾     Represents the difference between the long-term, normalized net charge-off ratio used to assess expected loan and lease losses for the operating segments and the "losses inherent in the loan portfolio" methodology used by the Company.

⁽⁴⁾     Represents the difference between gain from mortgage loans recorded by the Mortgage Banking segment and the gain from mortgage loans recognized in the Company's Consolidated  Statements of Income.  As the Mortgage Banking segment holds no loans in portfolio, all loans originated or purchased by this segment are considered to be salable for management reporting purposes.

⁽⁵⁾     Represents the corporate offset for the cost of capital related to goodwill that has been allocated to the segments.

⁽⁶⁾     Represents the tax effect of reconciling adjustments.

⁽⁷⁾     Includes the inter-segment offset for inter-segment loan premiums that the Retail Banking and Financial Services segment recognized from the transfer of portfolio loans from the Mortgage Banking segment.

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

Quarter Ended
Mar. 31,	Dec. 31,		Sept. 30,		June 30,		Mar. 31,
2005	2004		2004		2004		2004
$(226)	$(244	)	$(222	)	$(192	)	$(163	)

⁽⁹⁾     The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).

WM - 6

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,
	2005			2004			2004			2004			2004
PROFITABILITY
Net interest income	$	1,890		$	1,850		$	1,740		$	1,794		$	1,732
Net interest margin	2.73		%	2.79		%	2.77		%	2.86		%	2.89		%
Noninterest income	$	1,408		$	1,217		$	1,264		$	894		$	1,237
Noninterest expense	1,839			1,938			1,869			1,848			1,880
Basic earnings per common share:
Income from continuing operations	$	1.04		$	0.77		$	0.78		$	0.57		$	0.75
Income from discontinued operations, net	-			-			-			-			0.46
Net income	1.04			0.77			0.78			0.57			1.21
Diluted earnings per common share:
Income from continuing operations	$	1.01		$	0.76		$	0.76		$	0.55		$	0.73
Income from discontinued operations, net	-			-			-			-			0.45
Net income	1.01			0.76			0.76			0.55			1.18
Dividends declared per common share	$	0.46		$	0.45		$	0.44		$	0.43		$	0.42
Return on average assets(1)	1.17		%	0.90		%	0.95		%	0.69		%	1.54		%
Return on average common equity(1)	16.63			12.71			13.03			9.63			20.85
Efficiency ratio(2)	55.77			63.18			62.19			68.77			63.34
ASSET QUALITY
Nonaccrual loans(3)(4)	$	1,569		$	1,534		$	1,471		$	1,396		$	1,542
Foreclosed assets(4)	264			261			281			286			307
Total nonperforming assets(3)(4)	1,833			1,795			1,752			1,682			1,849
Nonperforming assets/total assets(3)(4)	0.57		%	0.58		%	0.61		%	0.60		%	0.66		%
Restructured loans(4)	$	27		$	34		$	38		$	79		$	107
Total nonperforming assets and restructured loans(3)(4)	1,860			1,829			1,790			1,761			1,956
Allowance for loan and lease losses(4)	1,280			1,301			1,322			1,293			1,260
Allowance as a percentage of total loans held in portfolio(4)	0.60		%	0.63		%	0.64		%	0.66		%	0.68		%
Provision for loan and lease losses	$	16		$	37		$	56		$	60		$	56
Net charge-offs	37			38			27			24			46
CAPITAL ADEQUACY(4)
Stockholders' equity/total assets	6.81		%	6.89		%	7.21		%	7.31		%	7.26		%
Tangible common equity(5)/total tangible assets(5)	5.03			5.05			5.26			5.32			5.21
Estimated total risk-based capital/risk-weighted assets(6)	11.18			11.34			10.64			10.39			10.53
SUPPLEMENTAL DATA
Average balance sheet:
Total loans held for sale	$	38,307		$	33,083		$	28,220		$	33,096		$	24,464
Total loans held in portfolio	207,320			208,296			199,159			189,812			180,263
Total interest-earning assets	277,080			266,375			252,235			251,264			239,979
Total assets	308,172			297,158			283,669			283,940			271,406
Total interest-bearing deposits	142,639			139,938			135,600			127,670			123,336
Total noninterest-bearing deposits	32,546			33,935			33,266			37,136			30,618
Total stockholders' equity	21,680			21,025			20,703			20,288			20,088
Period-end balance sheet:
Loans held for sale	41,197			42,743			29,184			27,795			34,207
Loans held in portfolio, net of allowance for loan
and lease losses	212,834			205,770			204,836			193,250			185,120
Interest-earning assets	287,205			278,762			258,855			247,088			250,585
Total assets	319,696			307,918			288,828			278,544			280,768
Interest-bearing deposits	148,690			140,878			136,445			129,123			125,267
Noninterest-bearing deposits	34,941			32,780			32,250			33,343			35,714
Total stockholders' equity	21,767			21,226			20,820			20,369			20,383

⁽¹⁾     Includes income from continuing and discontinued operations for the period ending March 31, 2004.

⁽²⁾     The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).

⁽³⁾     Excludes nonaccrual loans held for sale.

⁽⁴⁾     As of quarter end.

⁽⁵⁾     Excludes unrealized net gain/loss on available-for-sale securities and derivatives, goodwill and intangible assets, but includes MSR.

⁽⁶⁾     Estimate of what the total risk-based capital ratio would be if Washington Mutual, Inc. were a bank holding company that is subject to Federal Reserve Board capital requirements.

WM - 7

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31, 2005						Dec. 31, 2004						Mar. 31, 2004
	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:
Federal funds sold and securities purchased under agreements to resell	$	1,354	2.55	%	$	9	$	560	1.92	%	$	3	$	1,026	1.34	%	$	3
Trading securities	5,713		5.55		79		4,540		5.80		66		1,228		7.91		24
Available-for-sale securities(1):
Mortgage-backed securities	15,487		4.45		173		11,398		3.85		110		9,999		4.35		109
Investment securities	4,627		4.44		51		4,387		4.27		47		19,073		3.29		156
Loans held for sale(2)	38,307		4.91		470		33,083		4.74		393		24,464		5.43		332
Loans held in portfolio(2):
Loans secured by real estate:
Home	110,131		4.59		1,263		113,352		4.30		1,218		102,691		4.24		1,089
Specialty mortgage finance(3)	18,554		5.05		234		17,389		4.87		212		14,016		5.21		182
Total home loans	128,685		4.65		1,497		130,741		4.37		1,430		116,707		4.36		1,271
Home equity loans and lines of credit	44,679		5.37		593		42,034		4.93		520		29,262		4.72		344
Home construction(4)	2,242		5.77		32		2,434		5.87		36		2,317		5.33		31
Multi-family	22,667		5.00		283		21,922		4.92		270		20,376		5.06		258
Other real estate	5,425		6.02		82		6,133		6.03		93		6,589		5.77		95
Total loans secured by real estate	203,698		4.90		2,487		203,264		4.62		2,349		175,251		4.57		1,999
Consumer	770		10.50		20		813		10.20		21		997		10.15		25
Commercial business	2,852		5.19		37		4,219		4.78		51		4,015		4.19		43
Total loans held in portfolio	207,320		4.92		2,544		208,296		4.64		2,421		180,263		4.59		2,067
Other	4,272		3.21		34		4,111		2.60		26		3,926		3.00		30
Total interest-earning assets	277,080		4.86		3,360		266,375		4.59		3,066		239,979		4.54		2,721
Noninterest-earning assets:
Mortgage servicing rights	6,090						5,928						5,872
Goodwill	6,196						6,196						6,196
Other assets	18,806						18,659						19,359
Total assets	$	308,172					$	297,158					$	271,406
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	49,917	1.63		201		$	52,171	1.32		173		$	67,431	1.28		214
Savings and money market deposits	41,997		1.42		147		44,017		1.36		151		26,915		0.75		50
Time deposits	50,725		2.77		348		43,750		2.53		280		28,990		2.48		179
Total interest-bearing deposits	142,639		1.97		696		139,938		1.71		604		123,336		1.45		443
Federal funds purchased and commercial paper	3,486		2.49		22		4,828		1.98		24		3,493		1.08		10
Securities sold under agreements to repurchase	16,621		2.65		110		13,528		2.09		72		21,954		1.93		107
Advances from Federal Home Loan Banks	66,591		2.82		469		63,053		2.34		376		52,921		2.28		305
Other	18,400		3.78		173		15,164		3.70		140		14,032		3.56		124
Total interest-bearing liabilities	247,737		2.39		1,470		236,511		2.03		1,216		215,736		1.83		989
Noninterest-bearing sources:
Noninterest-bearing deposits	32,546						33,935						30,618
Other liabilities	6,209						5,687						4,964
Stockholders’ equity	21,680						21,025						20,088
Total liabilities and stockholders’ equity	$	308,172					$	297,158					$	271,406
Net interest spread and net interest income			2.47		$	1,890			2.56		$	1,850			2.71		$	1,732
Impact of noninterest-bearing sources			0.26						0.23						0.18
Net interest margin			2.73						2.79						2.89

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

⁽²⁾     Nonaccrual loans are included in the average loan amounts outstanding.

⁽³⁾     Represents purchased subprime loan portfolios and certain mortgages originated by Long Beach Mortgage Company.

⁽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.

WM - 8

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2005		2004		2004		2004		2004
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing	$	18,599	$	17,463	$	16,178	$	15,666	$	15,107
Interest bearing	48,988		51,099		52,378		59,395		66,618
Total checking deposits	67,587		68,562		68,556		75,061		81,725
Savings and money market deposits	35,184		36,836		38,620		30,413		22,452
Time deposits(1)	31,819		27,268		24,825		23,990		24,128
Total retail deposits	134,590		132,666		132,001		129,464		128,305
Commercial business deposits	8,447		7,611		7,369		7,176		6,426
Wholesale deposits	24,969		18,448		14,052		8,874		6,219
Custodial and escrow deposits(2)	15,625		14,933		15,273		16,952		20,031
Total deposits	$	183,631	$	173,658	$	168,695	$	162,466	$	160,981

(1)	Weighted average remaining maturity of time deposits was 14 months at March 31, 2005 and 16 months at December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004.
(2)	Substantially all custodial and escrow deposits reside in noninterest-bearing checking accounts.

	Mar. 31,	Dec. 31,	Sept. 30,	June 30,	Mar. 31,
	2005	2004	2004	2004	2004
Retail Deposit Accounts(1)
Transaction accounts(2)	14,434,101	14,091,734	13,905,707	13,579,961	13,193,298
Time deposits	1,300,580	1,208,870	1,171,127	1,165,002	1,185,728
Total accounts, end of period	15,734,681	15,300,604	15,076,834	14,744,963	14,379,026
Net transaction account changes	342,367	186,027	325,746	386,663	398,396
Net total account changes	434,077	223,770	331,871	365,937	368,788

(1)	The information provided in this table represents the number of accounts.
(2)	Transaction accounts include retail checking, small business checking, retail savings and small business savings.

	Mar. 31,	Dec. 31,	Sept. 30,	June 30,	Mar. 31,
	2005	2004	2004	2004	2004
Retail Banking Stores
Stores, beginning of period	1,939	1,872	1,816	1,755	1,776
Net stores opened during the quarter	29	67	56	61	(21	)(1)
Stores, end of period	1,968	1,939	1,872	1,816	1,755

⁽¹⁾     The Company consolidated 79 grocery store locations into larger, existing, retail banking stores.

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2005		2004		2004		2004		2004
Assets Under Management	$	22,454	$	22,196	$	20,617	$	20,106	$	19,438

WM - 9

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2005		2004		2004		2004		2004
Loan Volume
Home loans:
Adjustable rate	$	22,947	$	26,141	$	25,589	$	29,753	$	21,822
Fixed rate	17,147		15,448		14,635		26,076		21,564
Specialty mortgage finance(1)	7,656		9,362		7,536		7,323		7,113
Total home loan volume	47,750		50,951		47,760		63,152		50,499
Home equity loans and lines of credit	8,887		9,307		10,527		11,572		8,416
Home construction loans(2)	245		293		640		839		609
Multi-family	2,121		2,240		2,050		2,346		1,525
Other real estate	345		257		352		760		370
Total loans secured by real estate	59,348		63,048		61,329		78,669		61,419
Consumer	43		77		138		63		58
Commercial business	124		96		358		789		688
Total loan volume	$	59,515	$	63,221	$	61,825	$	79,521	$	62,165
Loan Volume by Channel
Retail	$	25,569	$	28,766	$	30,285	$	37,720	$	28,126
Wholesale	16,716		18,441		16,079		19,534		15,419
Purchased/correspondent	17,230		16,014		15,461		22,267		18,620
Total loan volume by channel	$	59,515	$	63,221	$	61,825	$	79,521	$	62,165
Refinancing Activity(3)
Home loan refinancing	$	28,641	$	30,752	$	23,834	$	40,201	$	33,233
Home equity loans and lines of credit and consumer	392		336		360		1,147		1,107
Home construction loans	10		13		9		13		12
Multi-family and other real estate	660		565		621		883		575
Total refinancing	$	29,703	$	31,666	$	24,824	$	42,244	$	34,927
Home Loan Volume by Index
Short-term adjustable-rate loans(4):
Treasury indices	$	15,997	$	18,967	$	18,883	$	16,467	$	13,440
COFI	195		846		145		167		110
Other	426		57		45		812		218
Total short-term adjustable-rate loans	16,618		19,870		19,073		17,446		13,768
Medium-term adjustable-rate loans(5)	13,409		14,890		12,866		17,536		12,814
Fixed-rate loans	17,723		16,191		15,821		28,170		23,917
Total home loan volume	$	47,750	$	50,951	$	47,760	$	63,152	$	50,499

Note:  Pursuant to regulatory guidance, buyouts of delinquent mortgages contained within Government National Mortgage Association (GNMA) loan servicing pools must be classified as loans on the balance sheet.  Accordingly, total home loan volume includes GNMA pool buy-out volume of  $563 million, $785 million, $898 million, $689 million and $1.05 billion for the quarters ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004.

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

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

⁽³⁾     Includes loan refinancing entered into by both new and pre-existing loan customers.

⁽⁴⁾     Short-term is defined as adjustable-rate loans that reprice within one year or less.

⁽⁵⁾     Medium-term is defined as adjustable-rate loans that reprice after one year.

WM - 10

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	Dec. 31, 2004				Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	to Mar. 31, 2005				2005			2004			2004			2004			2004
Loans by Property Type
Loans held in portfolio:
Loans secured by real estate:
Home		$	2,453		$	112,444		$	109,991		$	112,230		$	106,312		$	104,946
Specialty mortgage finance(1)	2,396				21,539			19,143			17,305			16,217			15,437
Total home loans	4,849				133,983			129,134			129,535			122,529			120,383
Home equity loans and lines of credit	2,199				45,849			43,650			40,505			36,077			31,264
Home construction(2)	(174			)	2,170			2,344			2,732			2,605			2,370
Multi-family	965				23,247			22,282			21,640			21,156			20,579
Other real estate	(353			)	5,311			5,664			6,268			6,513			6,508
Total loans secured by real estate	7,486				210,560			203,074			200,680			188,880			181,104
Consumer	(45			)	747			792			831			892			954
Commercial business	(398			)	2,807			3,205			4,647			4,771			4,322
Total loans held in portfolio	7,043				214,114			207,071			206,158			194,543			186,380
Less: allowance for loan and lease losses	21				(1,280		)	(1,301		)	(1,322		)	(1,293		)	(1,260		)
Total net loans held in portfolio	7,064				212,834			205,770			204,836			193,250			185,120
Loans held for sale(3)	(1,546			)	41,197			42,743			29,184			27,795			34,207
Total net loans		$	5,518		$	254,031		$	248,513		$	234,020		$	221,045		$	219,327

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

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

⁽³⁾     Fair value of loans held for sale was $41.38 billion, $43.02 billion, $29.32 billion, $27.92 billion and $34.36 billion as of March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004.

WM - 11

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

							Weighted			Weighted			Weighted
	Change from						Average			Average			Average
	Dec. 31, 2004				Mar. 31,		Coupon	Dec. 31,		Coupon	Mar. 31,		Coupon
	to Mar. 31, 2005				2005		Rate	2004		Rate	2004		Rate
Loans Secured by Real Estate and MBS
Selected loans held in portfolio secured by real estate(1):
Short-term adjustable-rate loans(2):
COFI		$	(375	)	$	7,261	5.05%	$	7,636	4.91%	$	9,878	4.86%
Treasury indices	3,706				76,846		4.58	73,140		4.25	58,981		3.76
Other	2,281				43,967		5.86	41,686		5.42	30,759		4.78
Total short-term adjustable-rate loans	5,612				128,074		5.05	122,462		4.69	99,618		4.19
Medium-term adjustable-rate loans(3)	1,579				54,157		5.50	52,578		5.40	53,209		5.51
Fixed-rate loans	822				20,848		6.52	20,026		6.56	19,399		6.80
Total loans held in portfolio secured by real estate(4)	8,013				203,079		5.32	195,066		5.07	172,226		4.89
Loans held for sale(5)	(1,596			)	41,003		5.11	42,599		4.70	34,023		5.42
Total loans secured by real estate	6,417				244,082		5.28	237,665		5.01	206,249		4.98
MBS(6):
Short-term adjustable-rate MBS(2):
COFI	(552			)	3,121		3.93	3,673		3.72	4,964		3.82
Treasury indices	2,117				7,700		3.85	5,583		3.15	4,225		2.50
Other	69				737		5.06	668		5.04	9		3.08
Total short-term adjustable-rate MBS	1,634				11,558		3.95	9,924		3.49	9,198		3.21
Medium-term adjustable-rate MBS(3)	289				991		4.45	702		4.25	-		-
Fixed-rate MBS	(743			)	3,185		5.22	3,928		5.32	1,272		6.38
Total MBS(7)	1,180				15,734		4.24	14,554		4.02	10,470		3.60
Total loans secured by real estate and MBS		$	7,597		$	259,816	5.22	$	252,219	4.95	$	216,719	4.92

⁽¹⁾     Includes total home loans, home equity loans and lines of credit and multi-family loans.

⁽²⁾     Short-term is defined as adjustable-rate loans and MBS that reprice within one year or less.

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

⁽⁴⁾     At March 31, 2005, December 31, 2004, and March 31, 2004, the adjustable-rate loans with lifetime caps were $179.59 billion, $171.44 billion and $149.33 billion with a lifetime weighted average cap rate of 12.31%, 12.31% and 12.20%.

⁽⁵⁾     Excludes student loans.

⁽⁶⁾     Excludes principal-only strips and interest-only strips.

⁽⁷⁾     At March 31, 2005, December 31, 2004 and March 31, 2004, the adjustable-rate MBS with lifetime caps were $12.47 billion, $10.58 billion and $7.48 billion with a lifetime weighted average cap rate of 10.18%, 10.23% and 11.33%.

	Dec. 31, 2004
	to Mar. 31, 2005
Rollforward of Loans Held for Sale
Balance, beginning of period		$	42,743
Loans originated, purchased and transferred from held in portfolio		37,861
Loans transferred to held in portfolio		(4,631		)
Loans sold and other		(34,776		)
Balance, end of period		$	41,197
Rollforward of Loans Held in Portfolio
Balance, beginning of period		$	207,071
Loans originated, purchased and transferred from held for sale		24,493
Loan payments, transferred to held for sale and other		(17,450		)
Balance, end of period		$	214,114

WM - 12

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2005		2004		2004		2004		2004
Home Loan Mortgage Banking Income (Expense)
Loan servicing fees	$489		$481		$482		$485		$502
Amortization of MSR	(570	)	(636	)	(589	)	(546	)	(750	)
Net MSR valuation adjustments(1)	539		257		165		(51	)	(606	)
Other, net(2)	(51	)	(62	)	(62	)	(89	)	(66	)
Net home loan servicing income (expense)	407		40		(4	)	(201	)	(920	)
Revaluation gain (loss) from derivatives:
MSR risk management(3)	(23	)	14		130		(322	)	1,108
Loans held for sale risk management(4)	86		28		(23	)	142		(66	)
Total revaluation gain (loss) from derivatives	63		42		107		(180	)	1,042
Net settlement income from certain interest-rate swaps	51		53		126		192		167
Gain from mortgage loans(4)	178		155		210		113		171
Loan related income	74		60		65		76		71
Gain from sale of originated mortgage-backed securities	3		2		-		-		-
Total home loan mortgage banking income	776		352		504		-		531
Impact of other MSR risk management instruments(5):
Gain (loss) from certain available-for-sale securities	(44	)	(4	)	-		-		5
Revaluation gain (loss) from certain trading securities	(109	)	36		45		-		-
Total home loan mortgage banking income, net of other MSR risk management instruments	$623		$384		$549		$-		$536

⁽¹⁾     Represents fair value hedge ineffectiveness as well as any impairment/reversal recognized on MSR accounted for under the lower of cost or market value methodology.  The Company prospectively applied fair value hedge accounting treatment, as prescribed by Statement of Financial Accounting Standards No. 133, to most of its MSR on April 1, 2004.

⁽²⁾     Includes loan pool expense, which represent the shortfall of what is remitted to investors compared to what is collected from the borrowers.

⁽³⁾     Represents the change in fair value from certain derivatives that economically hedge the MSR.

⁽⁴⁾     Gain from mortgage loans net of loans held for sale hedging and risk management instruments was a net gain of $257 million, $180 million, $187 million, $252 million and $112 million for the quarters ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004, and March 31, 2004.

⁽⁵⁾     Includes only instruments designated for MSR risk management and does not include the effects of instruments held for asset/liability risk management.

WM - 13

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2005			2004			2004			2004			2004
Mortgage Servicing Rights (“MSR”) Performance
Statement No. 133 MSR accounting valuation adjustments	$	545		$	(123	)	$	(885	)	$	1,707		$	-
Statement No. 133 fair value hedging adjustments	(433		)	201			1,316			(1,985		)	-
Statement No. 133 ineffectiveness	112			78			431			(278		)	-
Change in value of MSR accounted for under lower of cost or market value methodology	427			179			(266		)	227			(606		)
Net MSR valuation adjustments(1)	539			257			165			(51		)	(606		)
Amortization of MSR	(570		)	(636		)	(589		)	(546		)	(750		)
MSR risk management:
Revaluation gain (loss) from derivatives	(23		)	14			130			(322		)	1,108
Net settlement income from certain interest-rate swaps	58			56			126			195			160
Gain (loss) from certain available-for-sale securities	(44		)	(4		)	-			-			5
Revaluation gain (loss) from certain trading securities	(109		)	36			45			-			-
Net MSR valuation less hedging expense	$	(149	)	$	(277	)	$	(123	)	$	(724	)	$	(83	)

⁽¹⁾     Represents fair value hedge ineffectiveness as well as any impairment/reversal recognized on MSR accounted for under the lower of cost or market value methodology. The Company began applying fair value hedge accounting treatment, as prescribed by Statement No. 133, to most of its MSR on a prospective basis as of April 1, 2004.

WM - 14

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2005			2004			2004			2004			2004
Rollforward of Mortgage Servicing Rights (“MSR”)(1) (2)
Balance, beginning of period	$	5,906		$	6,112		$	7,501		$	5,239		$	6,354
Home loans:
Additions	490			372			348			874			241
Amortization	(570		)	(636		)	(589		)	(546		)	(750		)
(Impairment) reversal	427			179			(266		)	227			(606		)
Statement No. 133 MSR accounting valuation adjustments	545			(123		)	(885		)	1,707			-
Net change in commercial real estate MSR	4			2			3			-			-
Balance, end of period(3)	$	6,802		$	5,906		$	6,112		$	7,501		$	5,239
Rollforward of Valuation Allowance for MSR Impairment
Balance, beginning of period	$	1,981		$	2,653		$	2,417		$	3,035		$	2,435
Impairment (reversal)	(427		)	(179		)	266			(227		)	606
Other-than-temporary impairment	(34		)	(486		)	(22		)	(388		)	-
Other	(7		)	(7		)	(8		)	(3		)	(6		)
Balance, end of period	$	1,513		$	1,981		$	2,653		$	2,417		$	3,035
Rollforward of Loans Serviced for Others
Balance, beginning of period	$	540,392		$	551,245		$	558,388		$	559,807		$	582,669
Home loans:
Additions	34,533			27,218			29,699			54,201			22,009
Loan payments and other	(32,861		)	(38,529		)	(37,035		)	(56,388		)	(46,058		)
Net change in commercial real estate loans serviced for others	733			458			193			768			1,187
Balance, end of period	$	542,797		$	540,392		$	551,245		$	558,388		$	559,807

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2005		2004		2004		2004		2004
Total Servicing Portfolio
Loans serviced for others	$	542,797	$	540,392	$	551,245	$	558,388	$	559,807
Servicing on retained MBS without MSR	1,702		1,808		2,713		2,938		3,208
Servicing on owned loans	233,738		229,879		217,592		205,714		204,449
Subservicing portfolio	421		461		502		563		1,528
Total servicing portfolio	$	778,658	$	772,540	$	772,052	$	767,603	$	768,992

	March 31, 2005
	Unpaid Principal Balance		Weighted Average Servicing Fee
			(in basis points, annualized)
Loans Serviced for Others by Loan Type
Government	$	52,046	47.56
Agency	340,472		30.19
Private	131,415		37.91
Specialty home loans	18,864		50.00
Total loans serviced for others(4)	$	542,797	34.41

⁽¹⁾Net of valuation allowance.

⁽²⁾MSR as a percentage of loans serviced for others was 1.25%, 1.09%, 1.11%, 1.34% and 0.94% at March 31, 2005, December 31, 2004, September 30, 2004,
June 30, 2004 and March 31, 2004.

⁽³⁾At March 31, 2005, the aggregate MSR fair value was $6.81 billion.

⁽⁴⁾Weighted average coupon rate (annualized) was 5.83% at March 31, 2005.

WM - 15

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2005			2004			2004			2004			2004
Allowance for Loan and Lease Losses
Balance, beginning of quarter	$	1,301		$	1,322		$	1,293		$	1,260		$	1,250
Other	-			(20		)	-			(3		)	-
Provision for loan and lease losses	16			37			56			60			56
	1,317			1,339			1,349			1,317			1,306
Loans charged off:
Loans secured by real estate:
Home	(11		)	(9		)	(6		)	(8		)	(16		)
Specialty mortgage finance(1)	(10		)	(10		)	(11		)	(9		)	(9		)
Total home loans charged off	(21		)	(19		)	(17		)	(17		)	(25		)
Home equity loans and lines of credit	(5		)	(3		)	(6		)	(5		)	(7		)
Home construction(2)	-			(1		)	-			-			(1		)
Multi-family	-			(2		)	-			-			-
Other real estate	(1		)	(1		)	(1		)	(1		)	(8		)
Total loans secured by real estate	(27		)	(26		)	(24		)	(23		)	(41		)
Consumer	(13		)	(17		)	(11		)	(11		)	(14		)
Commercial business	(6		)	(8		)	(4		)	(4		)	(6		)
Total loans charged off	(46		)	(51		)	(39		)	(38		)	(61		)
Recoveries of loans previously charged off:
Loans secured by real estate:
Specialty mortgage finance(1)	1			1			1			1			1
Home equity loans and lines of credit	-			2			-			1			1
Multi-family	-			-			1			-			2
Other real estate	1			2			2			4			2
Total loans secured by real estate	2			5			4			6			6
Consumer	5			4			5			5			5
Commercial business	2			4			3			3			4
Total recoveries of loans previously charged off	9			13			12			14			15
Net charge-offs	(37		)	(38		)	(27		)	(24		)	(46		)
Balance, end of quarter	$	1,280		$	1,301		$	1,322		$	1,293		$	1,260
Net charge-offs (annualized) as a percentage of average loans held in portfolio	0.07		%	0.07		%	0.05		%	0.05		%	0.10		%
Allowance as a percentage of total loans held in portfolio	0.60			0.63			0.64			0.66			0.68

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

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

WM - 16

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Mar. 31, 2005			Dec. 31, 2004			Sept. 30, 2004			June 30, 2004			Mar. 31, 2004
Nonperforming Assets and Restructured Loans
Nonaccrual loans(1):
Loans secured by real estate:
Home	$	495		$	542		$	538		$	535		$	622
Specialty mortgage finance(2)	734			674			608			585			615
Total home nonaccrual loans	1,229			1,216			1,146			1,120			1,237
Home equity loans and lines of credit	74			66			50			48			45
Home construction(3)	25			28			31			24			31
Multi-family	15			12			23			20			23
Other real estate	159			162			173			133			153
Total nonaccrual loans secured by real estate	1,502			1,484			1,423			1,345			1,489
Consumer	8			9			11			9			7
Commercial business	59			41			37			42			46
Total nonaccrual loans held in portfolio	1,569			1,534			1,471			1,396			1,542
Foreclosed assets	264			261			281			286			307
Total nonperforming assets	$	1,833		$	1,795		$	1,752		$	1,682		$	1,849
As a percentage of total assets	0.57		%	0.58		%	0.61		%	0.60		%	0.66		%
Restructured loans	$	27		$	34		$	38		$	79		$	107
Total nonperforming assets and restructured loans	$	1,860		$	1,829		$	1,790		$	1,761		$	1,956

(1)	Excludes nonaccrual loans held for sale of $112 million at March 31, 2005. Prior periods also reflect the exclusion of nonaccrual loans held for sale of $76 million, $84 million, $99 million and $135 million at December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004. Loans held for sale are accounted for at lower of aggregate cost or market value, with valuation changes included as adjustments to gain from mortgage loans.
(2)	Represents purchased subprime loan portfolios and certain mortgages originated by Long Beach Mortgage Company.
(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.