Mr. Cooper 8K Washington Mutual Announces Fourth Quarter and 2005 Earnings | COOP 18 Jan 06

WM - 1

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions, except per share data)
(unaudited)

	Quarter Ended															Year Ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2005			2005			2005			2005			2004			2005			2004
PROFITABILITY
Net income	$	865		$	821		$	844		$	902		$	668		$	3,432		$	2,878
Net interest income		2,154			1,916			1,926			1,890			1,850			7,886			7,116
Noninterest income		1,593			1,374			1,267			1,408			1,217			5,642			4,612
Noninterest expense		2,278			1,925			1,828			1,839			1,938			7,870			7,535

Diluted earnings per common share		0.85			0.92			0.95			1.01			0.76			3.73			3.26

Diluted weighted average number of common shares outstanding⁽¹⁾		1,011,395			888,495			887,250			888,789			883,991			919,238			884,050
Net interest margin		2.77	%		2.61	%		2.66	%		2.73	%		2.79	%		2.67	%		2.82	%
Dividends declared per common share	$	0.49		$	0.48		$	0.47		$	0.46		$	0.45		$	1.90		$	1.74
Book value per common share⁽²⁾		27.95			25.92			25.62			24.98			24.45			27.95			24.45
Return on average assets		0.99	%		1.00	%		1.05	%		1.17	%		0.90	%		1.05	%		1.01	%
Return on average common equity		12.49			14.66			15.33			16.63			12.71			14.63			14.02
Efficiency ratio⁽³⁾		60.79			58.52			57.24			55.77			63.18			58.17			64.25

ASSET QUALITY
Nonperforming assets/total assets⁽⁴⁾⁽⁵⁾		0.57	%		0.52	%		0.53	%		0.57	%		0.58	%		0.57	%		0.58	%
Allowance as a percentage of total loans held in portfolio⁽⁴⁾		0.74			0.58			0.58			0.60			0.63			0.74			0.63
Provision for loan and lease losses	$	121		$	52		$	31		$	16		$	37		$	220		$	209
Net charge-offs		137			31			39			37			38			244			135

CAPITAL ADEQUACY⁽⁵⁾
Capital Ratios at WMI-consolidated level:
Tangible equity⁽⁶⁾/total tangible assets⁽⁶⁾		5.73	%		5.09	%		5.13	%		5.03	%		5.05	%		5.73	%		5.05	%
Estimated total risk-based capital/total risk-weighted assets⁽⁷⁾		11.10			10.71			11.10			11.21			11.34			11.10			11.34
Capital Ratios at WMB-bank only level
(well-capitalized minimum)⁽⁸⁾:
Tier 1 capital to adjusted total assets (5.00%)		6.59			5.85			5.74			5.69			5.46			6.59			5.46
Adjusted tier 1 capital to total risk-weighted assets (6.00%)		8.73			8.47			8.38			8.40			8.12			8.73			8.12
Total risk-based capital to total risk-weighted assets (10.00%)		11.77			11.48			11.51			11.68			11.68			11.77			11.68

SUPPLEMENTAL DATA
Average balance sheet:
Total loans held in portfolio	$	227,568		$	213,016		$	213,638		$	207,320		$	208,296		$	215,434		$	194,433
Total interest-earning assets		314,531			296,568			290,876			277,080			266,375			294,872			252,501
Total assets		349,931			327,292			320,845			308,172			297,158			326,677			284,078
Total deposits		196,799			188,320			183,521			175,185			173,873			186,023			165,408
Total stockholders' equity		27,708			22,412			22,014			21,680			21,025			23,467			20,528
Period-end balance sheet:
Total loans held in portfolio, net of allowance for loan
and lease losses		227,937			216,930			211,494			212,834			205,770			227,937			205,770
Total assets		343,119			333,622			323,533			319,696			307,918			343,119			307,918
Total deposits		193,167			190,412			184,317			183,631			173,658			193,167			173,658
Total stockholders' equity		27,616			22,596			22,350			21,767			21,226			27,616			21,226
Common shares outstanding at the end of period⁽¹⁾⁽⁹⁾		993,914			877,651			878,384			877,287			874,262			993,914			874,262
Employees at end of period		60,798			56,214			54,377			52,488			52,579			60,798			52,579

⁽¹⁾	Number of shares in thousands.
⁽²⁾	Excludes six million shares held in escrow in all periods reported.
⁽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⁾	As of period end.
⁽⁶⁾	Excludes unrealized net gain/loss on available-for-sale securities and derivatives, goodwill and intangible assets, but includes MSR.
⁽⁷⁾	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.
⁽⁸⁾	Capital ratios for Washington Mutual Bank ("WMB") at December 31, 2005 are preliminary.
⁽⁹⁾	Includes six million shares held in escrow in all periods reported.

WM - 2

Washington Mutual, Inc.
Consolidated Statements of Income
(dollars in millions, except per share data)
(unaudited)

	Quarter Ended
	Dec. 31,			Sept. 30,			June 30,		Mar. 31,			Dec. 31,
	2005			2005			2005		2005			2004
Interest Income
Loans held for sale	$	673		$	661		$	576	$	470		$	393
Loans held in portfolio		3,347			2,862			2,754		2,544			2,421
Available-for-sale securities		303			238			234		224			157
Trading assets		185			114			91		79			66
Other interest and dividend income		73			65			51		43			29
Total interest income		4,581			3,940			3,706		3,360			3,066
Interest Expense
Deposits		1,184			996			852		696			604
Borrowings		1,243			1,028			928		774			612
Total interest expense		2,427			2,024			1,780		1,470			1,216
Net interest income		2,154			1,916			1,926		1,890			1,850
Provision for loan and lease losses		121			52			31		16			37
Net interest income after provision for loan and lease losses		2,033			1,864			1,895		1,874			1,813
Noninterest Income
Revenue from sales and servicing of home mortgage loans		421			714			118		777			352
Revenue from sales and servicing of consumer loans		313			2			2		1			1
Depositor and other retail banking fees		586			578			540		490			515
Credit card fees		139			-			-		-			-
Securities fees and commissions		114			111			112		110			110
Insurance income		37			42			47		46			47
Portfolio loan related income		103			103			96		85			101
Trading assets income (loss)		(273	)		(171	)		285		(98	)		26
Gain (loss) from other available-for-sale securities		46			(32	)		25		(122	)		(23	)
Gain on extinguishment of borrowings		1			-			-		-			-
Other income		106			27			42		119			88
Total noninterest income		1,593			1,374			1,267		1,408			1,217
Noninterest Expense
Compensation and benefits		1,037			939			886		876			839
Occupancy and equipment		399			372			350		402			462
Telecommunications and outsourced information services		139			108			100		104			115
Depositor and other retail banking losses		60			61			49		55			61
Advertising and promotion		114			81			77		55			57
Professional fees		63			48			38		34			54
Other expense		466			316			328		313			350
Total noninterest expense		2,278			1,925			1,828		1,839			1,938
Income before income taxes		1,348			1,313			1,334		1,443			1,092
Income taxes		483			492			490		541			424
Net Income	$	865		$	821		$	844	$	902		$	668

Earnings Per Common Share:
Basic	$	0.88		$	0.95		$	0.98	$	1.04		$	0.77
Diluted		0.85			0.92			0.95		1.01			0.76

Dividends declared per common share		0.49			0.48			0.47		0.46			0.45
Basic weighted average number of common shares outstanding (in thousands)		980,084			866,541			865,221		864,933			863,055
Diluted weighted average number of common shares outstanding (in thousands)		1,011,395			888,495			887,250		888,789			883,991

WM - 3

Washington Mutual, Inc.
Consolidated Statements of Income
(dollars in millions, except per share data)
(unaudited)

	Year Ended
	Dec. 31,			Dec. 31,
	2005			2004
Interest Income
Loans held for sale	$	2,382		$	1,472
Loans held in portfolio		11,507			8,825
Available-for-sale securities		998			764
Trading assets		469			151
Other interest and dividend income		232			138
Total interest income		15,588			11,350
Interest Expense
Deposits		3,728			2,043
Borrowings		3,974			2,191
Total interest expense		7,702			4,234
Net interest income		7,886			7,116
Provision for loan and lease losses		220			209
Net interest income after provision for loan and lease losses		7,666			6,907
Noninterest Income
Revenue from sales and servicing of home mortgage loans		2,030			1,387
Revenue from sales and servicing of consumer loans		317			4
Depositor and other retail banking fees		2,193			1,999
Credit card fees		139			-
Securities fees and commissions		448			426
Insurance income		172			226
Portfolio loan related income		387			401
Trading assets income (loss)		(257	)		89
Gain (loss) from other available-for-sale securities		(84	)		50
Gain (loss) on extinguishment of borrowings		1			(237	)
Other income		296			267
Total noninterest income		5,642			4,612
Noninterest Expense
Compensation and benefits		3,737			3,428
Occupancy and equipment		1,523			1,659
Telecommunications and outsourced information services		450			479
Depositor and other retail banking losses		226			195
Advertising and promotion		327			276
Professional fees		182			158
Other expense		1,425			1,340
Total noninterest expense		7,870			7,535
Income from continuing operations before income taxes		5,438			3,984
Income taxes		2,006			1,505
Income from continuing operations, net of taxes		3,432			2,479
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	$	3,432		$	2,878

Basic Earnings Per Common Share:
Income from continuing operations	$	3.84		$	2.88
Income from discontinued operations, net		-			0.46
Net income		3.84			3.34

Diluted Earnings Per Common Share:
Income from continuing operations		3.73			2.81
Income from discontinued operations, net		-			0.45
Net income		3.73			3.26

Dividends declared per common share		1.90			1.74
Basic weighted average number of common shares outstanding (in thousands)		894,434			862,215
Diluted weighted average number of common shares outstanding (in thousands)		919,238			884,050

WM - 4

Washington Mutual, Inc.
Consolidated Statements of Financial Condition
(dollars in millions, except per share data)
(unaudited)

	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
	2005			2005			2005			2005			2004
Assets
Cash and cash equivalents	$	6,214		$	4,924		$	4,614		$	4,811		$	4,455
Federal funds sold and securities purchased under agreements to resell		2,137			3,194			625			1,152			82
Trading assets		10,999			7,351			5,687			6,066			5,588
Available-for-sale securities, total amortized cost of $24,810, $20,757,
$18,999, $20,569 and $19,047:
Mortgage-backed securities		20,648			17,161			14,396			15,947			14,923
Investment securities		4,011			3,603			4,852			4,756			4,296
Loans held for sale		33,582			48,018			51,122			41,197			42,743
Loans held in portfolio		229,632			218,194			212,737			214,114			207,071
Allowance for loan and lease losses		(1,695	)		(1,264	)		(1,243	)		(1,280	)		(1,301	)
Total loans held in portfolio, net of allowance for loan and lease losses		227,937			216,930			211,494			212,834			205,770
Investment in Federal Home Loan Banks		4,257			4,228			4,194			3,973			4,059
Mortgage servicing rights		8,041			7,042			5,730			6,802			5,906
Goodwill		8,298			6,196			6,196			6,196			6,196
Other assets		16,995			14,975			14,623			15,962			13,900
Total assets	$	343,119		$	333,622		$	323,533		$	319,696		$	307,918
Liabilities
Deposits:
Noninterest-bearing deposits	$	34,014		$	36,850		$	35,518		$	34,941		$	32,780
Interest-bearing deposits		159,153			153,562			148,799			148,690			140,878
Total deposits		193,167			190,412			184,317			183,631			173,658
Federal funds purchased and commercial paper		7,081			7,229			5,864			2,053			4,045
Securities sold under agreements to repurchase		15,532			14,508			14,089			16,716			15,944
Advances from Federal Home Loan Banks		68,771			69,405			71,534			66,730			70,074
Other borrowings		23,777			23,994			20,752			21,938			18,498
Other liabilities		7,175			5,478			4,627			6,861			4,473
Total liabilities		315,503			311,026			301,183			297,929			286,692
Stockholders' equity		27,616			22,596			22,350			21,767			21,226
Total liabilities and stockholders' equity	$	343,119		$	333,622		$	323,533		$	319,696		$	307,918

WM - 5

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

	Quarter Ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
	2005			2005			2005			2005			2004
Stockholders' Equity Rollforward
Balance, beginning of period	$	22,596		$	22,350		$	21,767		$	21,226		$	20,820
Net income		865			821			844			902			668
Other comprehensive (loss) income, net of tax		(91	)		(158	)		98			(8	)		49
Cash dividends declared on common stock		(480	)		(419	)		(409	)		(402	)		(390	)
Common stock repurchased and retired		(723	)		(98	)		-			(100	)		-
Common stock issued		5,449			100			50			149			79
Balance, end of period	$	27,616		$	22,596		$	22,350		$	21,767		$	21,226

WM - 6

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

	Quarter Ended															Year Ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2005			2005			2005			2005			2004			2005			2004
RETAIL BANKING AND FINANCIAL SERVICES GROUP
Condensed income statement:
Net interest income	$	1,395		$	1,347		$	1,391		$	1,344		$	1,330		$	5,478		$	4,999
Provision for loan and lease losses		42			47			40			37			35			165			164
Noninterest income		818			786			751			695			717			3,049			2,758
Inter-segment revenue		8			12			11			12			8			42			23
Noninterest expense		1,173			1,128			1,087			1,055			1,049			4,444			4,123
Income before income taxes		1,006			970			1,026			959			971			3,960			3,493
Income taxes		378			367			388			363			348			1,495			1,305
Net income	$	628		$	603		$	638		$	596		$	623		$	2,465		$	2,188
Performance and other data:
Efficiency ratio⁽¹⁾		52.81	%		52.61	%		50.49	%		51.46	%		51.05	%		51.85	%		53.00	%
Average loans	$	183,780		$	179,361		$	181,396		$	177,635		$	177,204		$	180,556		$	163,328
Average assets		196,868			191,926			194,026			190,494			189,892			193,342			175,713
Average deposits:
Checking deposits:
Noninterest bearing		19,953			19,350			18,868			17,588			16,710			18,948			15,522
Interest bearing		43,192			45,186			47,531			49,777			51,974			46,400			59,562
Total checking deposits		63,145			64,536			66,399			67,365			68,684			65,348			75,084
Savings and money market deposits		36,594			35,517			34,875			36,100			38,412			35,772			30,651
Time deposits		40,473			38,688			34,265			29,517			25,677			35,774			24,602
Average total deposits		140,212			138,741			135,539			132,982			132,773			136,894			130,337
Loan volume		11,563			11,191			11,704			12,493			13,337			46,951			55,282
Employees at end of period		30,437			30,028			28,948			27,609			27,341			30,437			27,341
HOME LOANS GROUP
Condensed income statement:
Net interest income	$	262		$	327		$	305		$	289		$	294		$	1,181		$	1,240
Noninterest income		362			530			617			682			566			2,192			2,304
Inter-segment expense		8			12			11			12			8			42			23
Noninterest expense		540			538			536			526			596			2,140			2,487
Income before income taxes		76			307			375			433			256			1,191			1,034
Income taxes		29			116			141			163			92			449			386
Net income	$	47		$	191		$	234		$	270		$	164		$	742		$	648
Performance and other data:
Efficiency ratio⁽¹⁾		87.60	%		63.66	%		58.84	%		54.84	%		69.94	%		64.23	%		70.63	%
Average loans	$	30,914		$	33,415		$	31,434		$	27,765		$	24,880		$	30,898		$	23,591
Average assets		56,903			54,077			51,552			49,026			44,198			52,915			41,934
Average deposits		13,674			15,402			13,940			13,107			15,121			14,036			16,299
Loan volume		41,493			48,082			44,855			38,498			41,782			172,928			182,212
Employees at end of period		13,256			12,954			12,530			12,561			13,838			13,256			13,838
CARD SERVICES GROUP (managed basis presentation)
Condensed income statement⁽²⁾:
Net interest income	$	637														$	637
Provision for loan and lease losses		358															358
Noninterest income		256															256
Noninterest expense		268															268
Income before income taxes		267															267
Income taxes		101															101
Net income	$	166														$	166
Performance and other data:
Efficiency ratio ⁽¹⁾		29.99	%														29.99	%
Average loans	$	19,472														$	4,908
Average assets		22,198															5,595
Employees at end of period		3,124															3,124
COMMERCIAL GROUP
Condensed income statement:
Net interest income	$	349		$	356		$	346		$	320		$	319		$	1,371		$	1,314
Provision for loan and lease losses		2			2			1			2			9			7			41
Noninterest income		97			156			70			156			57			478			303
Noninterest expense		180			163			157			138			155			637			518
Income before income taxes		264			347			258			336			212			1,205			1,058
Income taxes		100			131			97			127			76			455			395
Net income	$	164		$	216		$	161		$	209		$	136		$	750		$	663
Performance and other data:
Efficiency ratio⁽¹⁾		40.40	%		31.90	%		37.61	%		28.92	%		41.25	%		34.46	%		32.02	%
Average loans	$	51,087		$	50,441		$	46,180		$	40,734		$	39,956		$	47,147		$	37,916
Average assets		55,954			54,966			50,508			44,790			44,003			51,594			42,474
Average deposits		7,888			8,646			7,641			7,298			7,744			7,872			7,108
Loan volume		10,140			11,392			11,039			8,430			7,997			41,000			28,978
Employees at end of period		4,182			3,923			3,747			3,484			3,385			4,182			3,385

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

⁽¹⁾	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
⁽²⁾	Operating results for the Card Services Group are presented on a managed basis as the Company treats securitized and sold credit card receivables as if they were still on the balance sheet in evaluating the
	overall performance of this operating segment. A managed basis presentation excludes the impact of securitizations, including their effect on income, the provision for credit losses and average loans and
	assets. Securitization adjustments to arrive at the reported GAAP results for the fourth quarter of 2005 were: a decrease of $409 million in net interest income; an increase of $150 million in noninterest income; a decrease of $259 million in the provision for credit losses; a decrease of $11.01 billion in average loans; and a decrease of $9.27 billion in average assets, all of which are eliminated within Reconciling Adjustments.

WM - 7

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

	Quarter Ended															Year Ended
(This table is continued from "WM-6".)	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2005			2005			2005			2005			2004			2005			2004
CORPORATE SUPPORT/TREASURY AND OTHER
Condensed income statement:
Net interest expense	$	(196	)	$	(229	)	$	(230	)	$	(176	)	$	(206	)	$	(831	)	$	(869	)
Provision for loan and lease losses		-			-			-			-			1			1			4
Noninterest income (expense)		29			(48	)		(36	)		(63	)		16			(118	)		(145	)
Noninterest expense		117			96			48			120			138			381			407
Loss from continuing operations before income taxes		(284	)		(373	)		(314	)		(359	)		(329	)		(1,331	)		(1,425	)
Income tax benefit		(112	)		(151	)		(127	)		(147	)		(136	)		(536	)		(569	)
Loss from continuing operations		(172	)		(222	)		(187	)		(212	)		(193	)		(795	)		(856	)
Income from discontinued operations, net of taxes		-			-			-			-			-			-			399
Net loss	$	(172	)	$	(222	)	$	(187	)	$	(212	)	$	(193	)	$	(795	)	$	(457	)
Performance and other data:
Average loans	$	1,148		$	1,096		$	1,053		$	1,049		$	961		$	1,088		$	889
Average assets		28,991			28,050			26,524			25,663			20,953			27,319			25,753
Average deposits		35,025			25,531			26,401			21,798			18,235			27,221			11,664
Loan volume		96			67			20			94			105			278			261
Employees at end of period		9,799			9,309			9,152			8,834			8,015			9,799			8,015

RECONCILING ADJUSTMENTS
Condensed income statement⁽²⁾:
Net interest income (expense)⁽³⁾	$	(293	)	$	115		$	114		$	113		$	113		$	50		$	432
Provision (reversal of reserve) for loan and lease losses⁽⁴⁾		(281	)		3			(10	)		(23	)		(8	)		(311	)		-
Noninterest income (expense)⁽⁵⁾		31			(50	)		(135	)		(62	)		(139	)		(215	)		(608	)
Income (loss) before income taxes		19			62			(11	)		74			(18	)		146			(176	)
Income taxes (benefit)⁽⁶⁾		(13	)		29			(9	)		35			44			42			(12	)
Net income (loss)	$	32		$	33		$	(2	)	$	39		$	(62	)	$	104		$	(164	)
Performance and other data:
Average loans⁽⁷⁾	$	(12,527	)	$	(1,550	)	$	(1,541	)	$	(1,556	)	$	(1,622	)	$	(4,316	)	$	(1,570	)
Average assets⁽⁷⁾⁽⁸⁾		(10,983	)		(1,727	)		(1,765	)		(1,801	)		(1,888	)		(4,088	)		(1,796	)

TOTAL CONSOLIDATED
Condensed income statement:
Net interest income	$	2,154		$	1,916		$	1,926		$	1,890		$	1,850		$	7,886		$	7,116
Provision for loan and lease losses		121			52			31			16			37			220			209
Noninterest income		1,593			1,374			1,267			1,408			1,217			5,642			4,612
Noninterest expense		2,278			1,925			1,828			1,839			1,938			7,870			7,535
Income from continuing operations before income taxes		1,348			1,313			1,334			1,443			1,092			5,438			3,984
Income taxes		483			492			490			541			424			2,006			1,505
Income from continuing operations		865			821			844			902			668			3,432			2,479
Income from discontinued operations, net of taxes		-			-			-			-			-			-			399
Net income	$	865		$	821		$	844		$	902		$	668		$	3,432		$	2,878
Performance and other data:
Efficiency ratio⁽¹⁾		60.79	%		58.52	%		57.24	%		55.77	%		63.18	%		58.17	%		64.25	%
Average loans	$	273,874		$	262,763		$	258,522		$	245,627		$	241,379		$	260,281		$	224,154
Average assets		349,931			327,292			320,845			308,172			297,158			326,677			284,078
Average deposits		196,799			188,320			183,521			175,185			173,873			186,023			165,408
Loan volume		63,292			70,732			67,618			59,515			63,221			261,157			266,733
Employees at end of period		60,798			56,214			54,377			52,488			52,579			60,798			52,579

__________________________

⁽¹⁾	See note 1 on preceding table.
⁽²⁾	See note 2 on preceding table.
⁽³⁾	Represents the difference between home loan premium amortization recorded by the Retail Banking and Financial Services Group 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 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 and Financial Services Group includes this assumed profit factor and must therefore be eliminated as a reconciling adjustment.
⁽⁴⁾	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.
⁽⁵⁾	Represents the difference between gain from mortgage loans recorded by the Home Loans Group and the gain from mortgage loans recognized in the Company's Consolidated Statements of Income. As the Home Loans Group holds no loans in portfolio, all loans originated or purchased by this segment are considered to be salable for management reporting purposes.
⁽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 Group recognized from the transfer of portfolio loans from the Home Loans Group.
⁽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					Year Ended
Dec. 31,	Sept. 30,	June 30,	Mar. 31,	Dec. 31,	Dec. 31,	Dec. 31,
2005	2005	2005	2005	2004	2005	2004
$(200)	$(177)	$(224)	$(245)	$(266)	$(211)	$(226)

WM - 8

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Dec. 31, 2005								Sept. 30, 2005								Dec. 31, 2004
						Interest								Interest								Interest
						Income/								Income/								Income/
	Balance		Rate			Expense			Balance		Rate			Expense			Balance		Rate			Expense
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets:
Federal funds sold and securities purchased under
agreements to resell	$	2,380		4.01	%	$	24		$	2,891		3.52	%	$	26		$	560		1.92	%	$	3
Trading assets		10,330		7.13			185			6,532		6.97			114			4,540		5.80			66
Available-for-sale securities⁽¹⁾:
Mortgage-backed securities		19,135		5.25			252			15,666		4.72			185			11,398		3.85			110
Investment securities		4,316		4.75			51			4,321		4.94			53			4,387		4.27			47
Loans held for sale ⁽²⁾		46,306		5.79			673			49,747		5.30			661			33,083		4.74			393
Loans held in portfolio⁽²⁾:
Loans secured by real estate:
Home		111,126		5.23			1,452	⁽³⁾		108,783		4.97			1,353	⁽³⁾		113,352		4.30			1,218
Specialty mortgage finance⁽⁴⁾		22,415		5.40			302			20,298		5.07			257			17,389		4.87			212
Total home loans		133,541		5.25			1,754			129,081		4.99			1,610			130,741		4.37			1,430
Home equity loans and lines of credit		50,464		6.47			822			49,237		6.08			753			42,034		4.93			520
Home construction⁽⁵⁾		2,008		6.35			32			2,001		6.31			32			2,434		5.87			36
Multi-family		25,312		5.67			359			24,550		5.38			330			21,922		4.92			270
Other real estate		4,953		6.57			82			4,904		7.12			88			6,133		6.03			93
Total loans secured by real estate		216,278		5.63			3,049			209,773		5.35			2,813			203,264		4.62			2,349
Consumer:
Credit card		8,259		11.96			249			-		-			-			-		-			-
Other		654		10.79			18			686		10.67			18			813		10.20			21
Commercial business		2,377		5.25			31			2,557		4.74			31			4,219		4.78			51
Total loans held in portfolio		227,568		5.87			3,347			213,016		5.36			2,862			208,296		4.64			2,421
Other⁽⁶⁾		4,496		4.28			49			4,395		3.51			39			4,111		2.60			26
Total interest-earning assets		314,531		5.81			4,581			296,568		5.30			3,940			266,375		4.59			3,066
Noninterest-earning assets:
Mortgage servicing rights		7,680								6,408								5,928
Goodwill		8,247								6,196								6,196
Other assets		19,473								18,120								18,659
Total assets	$	349,931							$	327,292							$	297,158
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	43,302		2.23			243		$	45,305		2.12			242		$	52,171		1.32			173
Savings and money market deposits		43,831		2.09			231			42,944		1.92			208			44,017		1.36			151
Time deposits		74,300		3.77			710			63,338		3.41			546			43,750		2.53			280
Total interest-bearing deposits		161,433		2.90			1,184			151,587		2.60			996			139,938		1.71			604
Federal funds purchased and commercial paper		8,236		4.07			85			6,719		3.60			61			4,828		1.98			24
Securities sold under agreements to repurchase		15,330		4.09			160			13,159		3.65			123			13,528		2.09			72
Advances from Federal Home Loan Banks		70,113		4.06			726			68,597		3.54			620			63,053		2.34			376
Other		24,715		4.38			272			21,734		4.12			224			15,164		3.70			140
Total interest-bearing liabilities		279,827		3.42			2,427			261,796		3.05			2,024			236,511		2.03			1,216
Noninterest-bearing sources:
Noninterest-bearing deposits		35,366								36,733								33,935
Other liabilities		7,030								6,351								5,687
Stockholders' equity		27,708								22,412								21,025
Total liabilities and stockholders' equity	$	349,931							$	327,292							$	297,158
Net interest spread and net interest income				2.39		$	2,154					2.25		$	1,916					2.56		$	1,850
Impact of noninterest-bearing sources				0.38								0.36								0.23
Net interest margin				2.77								2.61								2.79

⁽¹⁾

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

⁽²⁾

Nonaccrual loans and related income, if any, are included in their respective loan categories.

⁽³⁾

For the three months ended December 31, 2005 and September 30, 2005, deferred interest income resulting from negative amortization within the Option ARM portfolio totaled $107 million and $72

million.

⁽⁴⁾

Represents purchased subprime home loan portfolios and subprime home loans originated by Long Beach Mortgage Company and held in its investment portfolio.

⁽⁵⁾

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

single-family residence.

⁽⁶⁾

Interest-earning assets in nonaccrual status and related income, if any, are included within this catagory.

WM - 9

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

	Year Ended
	Dec. 31, 2005								Dec. 31, 2004
						Interest								Interest
						Income/								Income/
	Balance		Rate			Expense			Balance		Rate			Expense
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets:
Federal funds sold and securities purchased under agreements to resell	$	2,154		3.42	%	$	74		$	884		1.42	%	$	13
Trading assets		7,217		6.50			469			2,368		6.39			151
Available-for-sale securities⁽¹⁾:
Mortgage-backed securities		16,347		4.80			784			10,255		3.99			409
Investment securities		4,506		4.74			214			10,732		3.30			355
Loans held for sale⁽²⁾		44,847		5.31			2,382			29,721		4.95			1,472
Loans held in portfolio⁽²⁾:
Loans secured by real estate:
Home		110,326		4.90			5,403	⁽³⁾		107,518		4.21			4,529
Specialty mortgage finance⁽⁴⁾		20,555		5.19			1,066			15,767		4.84			763
Total home loans		130,881		4.94			6,469			123,285		4.29			5,292
Home equity loans and lines of credit		47,915		5.93			2,841			35,859		4.69			1,683
Home construction⁽⁵⁾		2,074		6.22			129			2,489		5.50			137
Multi-family		24,070		5.31			1,279			21,090		4.96			1,046
Other real estate		5,091		6.56			334			6,396		5.94			380
Total loans secured by real estate		210,031		5.26			11,052			189,119		4.51			8,538
Consumer:
Credit card		2,082		11.96			249			-		-			-
Other		707		10.66			75			899		10.11			91
Commercial business		2,614		5.00			131			4,415		4.43			196
Total loans held in portfolio		215,434		5.34			11,507			194,433		4.54			8,825
Other⁽⁶⁾		4,367		3.63			158			4,108		3.05			125
Total interest-earning assets		294,872		5.29			15,588			252,501		4.50			11,350
Noninterest-earning assets:
Mortgage servicing rights		6,597								6,406
Goodwill		6,712								6,196
Other assets		18,496								18,975
Total assets	$	326,677							$	284,078
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	46,524		1.95			906		$	59,826		1.28			766
Savings and money market deposits		42,555		1.76			750			35,927		1.11			399
Time deposits		62,175		3.33			2,072			35,917		2.44			878
Total interest-bearing deposits		151,254		2.46			3,728			131,670		1.55			2,043
Federal funds purchased and commercial paper		5,314		3.56			190			3,522		1.50			53
Securities sold under agreements to repurchase		15,365		3.40			523			16,660		2.26			377
Advances from Federal Home Loan Banks		68,713		3.46			2,377			58,622		2.16			1,268
Other		21,603		4.09			884			13,724		3.59			493
Total interest-bearing liabilities		262,249		2.94			7,702			224,198		1.89			4,234
Noninterest-bearing sources:
Noninterest-bearing deposits		34,769								33,738
Other liabilities		6,192								5,614
Stockholders' equity		23,467								20,528
Total liabilities and stockholders' equity	$	326,677							$	284,078
Net interest spread and net interest income				2.35		$	7,886					2.61		$	7,116
Impact of noninterest-bearing sources				0.32								0.21
Net interest margin				2.67								2.82

⁽¹⁾	The average balance and yield are based on average amortized cost balances.
⁽²⁾	Nonaccrual loans and related income, if any, are included in their respective loan categories.
⁽³⁾	For the year ended December 31, 2005, deferred interest income resulting from negative amortization within the Option ARM portfolio totaled $234 million.
⁽⁴⁾	Represents purchased subprime home loan portfolios and subprime home loans originated by Long Beach Mortgage Company and held in its investment portfolio.
⁽⁵⁾	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a
	single-family residence.
⁽⁶⁾	Interest-earning assets in nonaccrual status and related income, if any, are included within this catagory.

WM - 10

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	September 30, 2005			Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
	to December 31, 2005			2005		2005		2005		2005		2004
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing	$	130		$	20,752	$	20,622	$	19,093	$	18,599	$	17,463
Interest bearing		(2,041	)		42,253		44,294		46,031		48,988		51,099
Total checking deposits		(1,911	)		63,005		64,916		65,124		67,587		68,562
Savings and money market deposits		1,085			36,664		35,579		34,514		35,184		36,836
Time deposits⁽¹⁾		(117	)		40,359		40,476		36,162		31,819		27,268
Total retail deposits		(943	)		140,028		140,971		135,800		134,590		132,666
Commercial business deposits		1,701			11,459		9,758		9,648		8,447		7,611
Wholesale deposits		5,383			29,917		24,534		23,638		24,969		18,448
Custodial and escrow deposits⁽²⁾		(3,386	)		11,763		15,149		15,231		15,625		14,933
Total deposits	$	2,755		$	193,167	$	190,412	$	184,317	$	183,631	$	173,658

⁽¹⁾

Weighted average remaining maturity of time deposits was 11 months at December 31, 2005, 12 months at September 30, 2005, 13 months at June 30, 2005, 14 months at March 31, 2005, and 16 months

at December 31, 2004.

⁽²⁾

Substantially all custodial and escrow deposits reside in noninterest-bearing checking accounts.


	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
	2005		2005		2005		2005		2004
Retail Deposit Accounts⁽¹⁾
Checking		9,883,507		9,680,317		9,427,222		9,183,194		8,981,060
Money market and savings		5,694,102		5,560,060		5,395,091		5,250,907		5,110,674
Total transaction accounts, end of period⁽²⁾		15,577,609		15,240,377		14,822,313		14,434,101		14,091,734

Net checking account changes		203,190		253,095		244,028		202,134		106,237
Net total transaction account changes		337,232		418,064		388,212		342,367		186,027

⁽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.

	Dec. 31,			Sept. 30,		June 30,		Mar. 31,		Dec. 31,
	2005			2005		2005		2005		2004
Retail Banking Stores
Stores, beginning of period		2,051			1,997		1,968		1,939		1,872
Net stores opened during the quarter		89	⁽¹⁾		54		29		29		67
Stores, end of period		2,140			2,051		1,997		1,968		1,939

⁽¹⁾

Includes two retail stores acquired through the merger with Providian Financial Corporation. These stores are not considered to be an integral component of Washington Mutual's retail banking franchise.

		Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
		2005		2005		2005		2005		2004
Assets Under Management	$	25,310	$	24,546	$	23,348	$	22,454	$	22,196

WM - 11

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

	Quarter Ended
	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
	2005		2005		2005		2005		2004
Loan Volume
Home loans:
Adjustable rate	$	20,266	$	26,607	$	25,293	$	22,947	$	26,141
Fixed rate		20,494		21,122		19,355		17,147		15,448
Specialty mortgage finance⁽¹⁾		9,669		8,413		8,753		7,656		9,362
Total home loan volume		50,429		56,142		53,401		47,750		50,951
Home equity loans and lines of credit		9,118		10,828		10,888		8,887		9,307
Home construction loans⁽²⁾		479		370		258		245		293
Multi-family		2,595		2,580		2,459		2,121		2,240
Other real estate		419		465		371		345		257
Total loans secured by real estate		63,040		70,385		67,377		59,348		63,048
Consumer⁽³⁾		79		182		82		43		77
Commercial business		173		165		159		124		96
Total loan volume	$	63,292	$	70,732	$	67,618	$	59,515	$	63,221
Loan Volume by Channel
Retail	$	27,676	$	32,614	$	30,565	$	25,569	$	28,766
Wholesale		17,190		20,000		20,323		16,716		18,441
Purchased/correspondent		18,426		18,118		16,730		17,230		16,014
Total loan volume by channel	$	63,292	$	70,732	$	67,618	$	59,515	$	63,221
Refinancing Activity⁽⁴⁾
Home loan refinancing	$	27,435	$	29,084	$	27,583	$	28,641	$	30,752
Home equity loans and lines of credit and consumer		219		245		475		392		336
Home construction loans		12		17		13		10		13
Multi-family and other real estate		831		738		700		660		565
Total refinancing	$	28,497	$	30,084	$	28,771	$	29,703	$	31,666
Home Loan Volume
Short-term adjustable-rate loans⁽⁵⁾:
Option ARMs	$	11,699	$	16,353	$	19,564	$	15,644	$	18,898
Other ARMs		1,222		1,237		367		974		972
Total short-term adjustable-rate loans		12,921		17,590		19,931		16,618		19,870
Medium-term adjustable-rate loans⁽⁶⁾		15,447		16,454		13,388		13,409		14,890
Fixed-rate loans		22,061		22,098		20,082		17,723		16,191
Total home loan volume	$	50,429	$	56,142	$	53,401	$	47,750	$	50,951

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 $304 million, $466 million, $477 million, $563 million and $785 million for the quarters ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 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⁾	Excludes credit card loan volume.
⁽⁴⁾	Includes loan refinancing entered into by both new and pre-existing loan customers.
⁽⁵⁾	Short-term is defined as adjustable-rate loans that reprice within one year or less.
⁽⁶⁾	Medium-term is defined as adjustable-rate loans that reprice after one year.

WM - 12

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

	Year Ended
	Dec. 31,		Dec. 31,
	2005		2004
Loan Volume
Home loans:
Adjustable rate	$	95,114	$	103,305
Fixed rate		78,118		77,723
Specialty mortgage finance⁽¹⁾		34,490		31,334
Total home loan volume		207,722		212,362
Home equity loans and lines of credit		39,721		39,822
Home construction loans⁽²⁾		1,352		2,382
Multi-family		9,755		8,161
Other real estate		1,599		1,740
Total loans secured by real estate		260,149		264,467
Consumer⁽³⁾		387		336
Commercial business		621		1,930
Total loan volume	$	261,157	$	266,733
Loan Volume by Channel
Retail	$	116,425	$	124,897
Wholesale		74,229		69,474
Purchased/correspondent		70,503		72,362
Total loan volume by channel	$	261,157	$	266,733
Refinancing Activity⁽⁴⁾
Home loan refinancing	$	112,743	$	128,020
Home equity loans and lines of credit and consumer		1,331		2,950
Home construction loans		53		47
Multi-family and other real estate		2,928		2,644
Total refinancing	$	117,055	$	133,661
Home Loan Volume
Short-term adjustable-rate loans⁽⁵⁾:
Option ARMs	$	63,260	$	67,485
Other ARMs		3,800		2,671
Total short-term adjustable-rate loans		67,060		70,156
Medium-term adjustable-rate loans⁽⁶⁾		58,698		58,107
Fixed-rate loans		81,964		84,099
Total home loan volume	$	207,722	$	212,362

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 $1.81 billion and $3.42 billion for the years ended December 31, 2005 and December 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⁾	Excludes credit card loan volume.
⁽⁴⁾	Includes loan refinancing entered into by both new and pre-existing loan customers.
⁽⁵⁾	Short term is defined as adjustable-rate loans that reprice within one year or less.
⁽⁶⁾	Medium term is defined as adjustable-rate loans that reprice after one year.

WM - 13

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	September 30, 2005			Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
	to December 31, 2005			2005			2005			2005			2005			2004
Loans by Property Type
Loans held in portfolio:
Loans secured by real estate:
Home:
Short-term adjustable-rate loans⁽¹⁾:
Option ARMs	$	2,328		$	$ 70,191	⁽²⁾	$	67,863		$	66,533		$	67,938		$	66,310
Other ARMs		1,710			14,666			12,956			10,903			10,462			9,065
Total short-term adjustable-rate loans		4,038			84,857			80,819			77,436			78,400			75,375
Medium-term adjustable-rate loans⁽³⁾		(2,099	)		41,511			43,610			43,499			46,789			45,197
Fixed-rate loans		306			8,922			8,616			8,638			8,794			8,562
Total home loans⁽⁴⁾		2,245			135,290			133,045			129,573			133,983			129,134
Home equity loans and lines of credit		785			50,851			50,066			48,449			45,849			43,650
Home construction⁽⁵⁾		18			2,037			2,019			2,037			2,170			2,344
Multi-family		587			25,601			25,014			24,240			23,247			22,282
Other real estate		106			5,035			4,929			4,915			5,311			5,664
Total loans secured by real estate		3,741			218,814			215,073			209,214			210,560			203,074
Consumer:
Credit card		8,043			8,043			-			-			-			-
Other		(31	)		638			669			703			747			792
Commercial business		(315	)		2,137			2,452			2,820			2,807			3,205
Total loans held in portfolio⁽⁶⁾		11,438			229,632			218,194			212,737			214,114			207,071
Less: allowance for loan and lease losses		(431	)		(1,695	)		(1,264	)		(1,243	)		(1,280	)		(1,301	)
Total net loans held in portfolio		11,007			227,937			216,930			211,494			212,834			205,770
Loans held for sale⁽⁷⁾		(14,436	)		33,582			48,018			51,122			41,197			42,743
Total net loans	$	(3,429	)	$	261,519		$	264,948		$	262,616		$	254,031		$	248,513

⁽¹⁾

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

⁽²⁾

At December 31, 2005, the total amount by which the unpaid principal balance ("UPB") of Option ARM loans exceeded their original principal amount was $157 million.

⁽³⁾

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

⁽⁴⁾

Includes specialty mortgage finance loans, which are composed of purchased subprime home loans and subprime home loans originated by Long Beach Mortgage Company and held in its investment

portfolio. Specialty mortgage finance loans were $21.15 billion, $21.16 billion, $20.17 billion, $21.54 billion and $19.18 billion at December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005

and December 31, 2004.

⁽⁵⁾

single-family residence.

⁽⁶⁾

Includes net unamortized deferred loan origination costs of $1.53 billion, $1.47 billion, $1.39 billion, $1.36 billion and $1.25 billion at December 31, 2005, September 30, 2005, June 30, 2005, March 31,

2005 and December 31, 2004.

⁽⁷⁾

Fair value of loans held for sale was $33.71 billion, $48.14 billion, $51.39 billion, $41.38 billion and $43.02 billion as of December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and

December 31, 2004.

WM - 14

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

						Weighted					Weighted					Weighted
	Change from					Average					Average					Average
	Sept. 30, 2005			Dec. 31,		Coupon			Sept. 30,		Coupon			Dec. 31,		Coupon
	to Dec. 31, 2005			2005		Rate			2005		Rate			2004		Rate
Selected Loans Secured by Real Estate and MBS
Home loans held in portfolio:
Short-term adjustable-rate loans⁽¹⁾:
Option ARMs	$	2,328		$	70,191		5.87	%	$	67,863		5.44	%	$	66,310		4.26	%
Other ARMs		1,710			14,666		6.44			12,956		6.27			9,065		6.57
Total short-term adjustable-rate loans		4,038			84,857		5.97			80,819		5.57			75,375		4.55
Medium-term adjustable-rate loans⁽²⁾		(2,099	)		41,511		5.58			43,610		5.58			45,197		5.43
Fixed-rate loans		306			8,922		6.56			8,616		6.60			8,562		6.75
Total home loans held in portfolio		2,245			135,290		5.89			133,045		5.64			129,134		5.01
Home equity loans and lines of credit:
Short-term (Prime-based or treasury-based)⁽¹⁾		(216	)		37,112		7.26			37,328		6.76			33,826		5.17
Fixed-rate loans		1,001			13,739		6.56			12,738		6.45			9,824		6.34
Total home equity loans and lines of credit		785			50,851		7.07			50,066		6.68			43,650		5.43
Multi-family loans held in portfolio:
Short-term adjustable-rate loans⁽¹⁾:
Option ARMs		80			9,529		5.74			9,449		5.30			7,645		4.27
Other ARMs		(45	)		6,406		5.92			6,451		5.49			5,617		4.51
Total short-term adjustable-rate loans		35			15,935		5.81			15,900		5.38			13,262		4.37
Medium-term adjustable-rate loans⁽²⁾		593			8,118		5.29			7,525		5.26			7,381		5.30
Fixed-rate loans		(41	)		1,548		6.59			1,589		6.68			1,639		6.88
Total multi-family loans held in portfolio		587			25,601		5.69			25,014		5.42			22,282		4.86
Total selected loans held in portfolio secured by real estate⁽³⁾		3,617			211,742		6.15			208,125		5.87			195,066		5.09
Loans held for sale⁽⁴⁾		(14,460	)		32,928		6.15			47,888		5.34			42,599		4.70
Total selected loans secured by real estate		(10,843	)		244,670		6.15			256,013		5.77			237,665		5.02
MBS⁽⁵⁾:
Short-term adjustable-rate MBS⁽¹⁾		(2,324	)		7,965		4.88			10,289		4.58			9,924		3.49
Medium-term adjustable-rate MBS⁽²⁾		1,848			4,504		4.97			2,656		5.02			702		4.25
Fixed-rate MBS		3,963			8,179		5.11			4,216		5.25			3,928		5.32
Total MBS⁽⁶⁾		3,487			20,648		4.99			17,161		4.81			14,554		4.02
Total selected loans secured by real estate and MBS	$	(7,356	)	$	265,318		6.06		$	273,174		5.71		$	252,219		4.96

⁽¹⁾	Short-term is defined as adjustable-rate loans and MBS that reprice within one year or less.
⁽²⁾	Medium-term is defined as adjustable-rate loans and MBS that reprice after one year.
⁽³⁾	At December 31, 2005, September 30, 2005 and December 31, 2004, the adjustable-rate loans with lifetime caps were $184.87 billion, $182.35 billion and $171.44 billion with a lifetime weighted average
	cap rate of 12.25%, 12.30% and 12.31%.
⁽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 December 31, 2005, September 30, 2005 and December 31, 2004, the adjustable-rate MBS with lifetime caps were $12.46 billion, $12.74 billion and $10.58 billion with a lifetime weighted average cap
	rate of 10.31%, 10.19% and 10.23%.

	Sept. 30, 2005			Dec. 31, 2004
	to Dec. 31, 2005			to Dec. 31, 2005
Rollforward of Loans Held for Sale
Balance, beginning of period	$	48,018		$	42,743
Mortgage loans originated, purchased and transferred from held in portfolio		39,525			167,710
Mortgage loans transferred to held in portfolio		(2,324	)		(8,690	)
Mortgage loans sold and other		(52,162	)		(168,691	)
Net change in consumer loans held for sale		525			510
Balance, end of period	$	33,582		$	33,582

Rollforward of Home Loans Held in Portfolio
Balance, beginning of period	$	133,045		$	129,134
Loans originated, purchased and transferred from held for sale		14,743			57,298
Loan payments, transferred to held for sale and other		(12,498	)		(51,142	)
Balance, end of period	$	135,290		$	135,290

WM - 15

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

	Quarter Ended
Detail of Revenue from Sales and Servicing of Home Mortgage Loans	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
	2005			2005			2005			2005			2004
Gain from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments:
Gain from home mortgage loans and originated mortgage-backed securities	$	213		$	206		$	250		$	181		$	157
Revaluation gain (loss) from derivatives		25			73			(79	)		80			25
Gain from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments		238			279			171			261			182
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue, net⁽¹⁾		547			538			527			512			479
Amortization of MSR		(482	)		(555	)		(564	)		(570	)		(636	)
MSR valuation adjustments⁽²⁾		91			412			(77	)		539			257
Revaluation gain from derivatives		27			40			61			35			70
Home mortgage loan servicing revenue (expense), net of hedging and
derivative risk management instruments		183			435			(53	)		516			170
Total revenue from sales and servicing of home mortgage loans		421			714			118			777			352
Impact of other MSR risk management instruments:
Revaluation gain (loss) from certain trading securities		(157	)		(217	)		259			(109	)		36
Gain (loss) from certain available-for-sale securities		-			-			26			(44	)		(4	)
Total impact of other MSR risk management instruments		(157	)		(217	)		285			(153	)		32
Total revenue from sales and servicing of home mortgage loans and all
MSR risk management instruments	$	264		$	497		$	403		$	624		$	384

										Year Ended
Detail of Revenue from Sales and Servicing of Home Mortgage Loans											Dec. 31,			Dec. 31,
											2005			2004
Gain from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments:
Gain from home mortgage loans and originated mortgage-backed securities										$	850		$	651
Revaluation gain from derivatives											99			80
Gain from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments											949			731
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue, net⁽¹⁾											2,123			1,943
Amortization of MSR											(2,170	)		(2,521	)
MSR valuation adjustments⁽²⁾											965			(235	)
Revaluation gain from derivatives											163			1,469
Home mortgage loan servicing revenue, net of hedging and derivative
risk management instruments											1,081			656
Total revenue from sales and servicing of home mortgage loans											2,030			1,387
Impact of other MSR risk management instruments:
Revaluation gain (loss) from certain trading securities											(223	)		81
Gain (loss) from certain available-for-sale securities											(18	)		1
Total impact of other MSR risk management instruments											(241	)		82
Total revenue from sales and servicing of home mortgage loans and all
MSR risk management instruments										$	1,789		$	1,469

⁽¹⁾	Includes late charges, prepayment fees and loan pool expenses (the shortfall of the scheduled interest required to be remitted to investors compared to what is collected from the borrowers upon payoff).
⁽²⁾	Net of fair value hedge ineffectiveness as well as any impairment/reversal recognized on MSR that results from the application of the lower of cost or market value accounting methodology.

WM - 16

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
	2005			2005			2005			2005			2004
MSR Risk Management and Amortization:
Statement No. 133 MSR accounting valuation adjustments	$	419		$	849		$	(813	)	$	545		$	(123	)
Amortization of MSR		(482	)		(555	)		(564	)		(570	)		(636	)
(Impairment) reversal		353			413			(250	)		427			179
Net change in MSR valuation		290			707			(1,627	)		402			(580	)
Gain (loss) on MSR hedging and risk management instruments:
Statement No. 133 fair value hedging adjustments		(681	)		(850	)		986			(433	)		201
Revaluation gain from derivatives		27			40			61			35			70
Revaluation gain (loss) from certain trading securities		(157	)		(217	)		259			(109	)		36
Gain (loss) from certain available-for-sale securities		-			-			26			(44	)		(4	)
Total gain (loss) on MSR hedging and risk management
instruments		(811	)		(1,027	)		1,332			(551	)		303
Total MSR risk management and amortization	$	(521	)	$	(320	)	$	(295	)	$	(149	)	$	(277	)

										Year Ended
											Dec. 31,			Dec. 31,
											2005			2004
MSR Risk Management and Amortization:
Statement No. 133 MSR accounting valuation adjustments										$	999		$	699
Amortization of MSR											(2,170	)		(2,521	)
(Impairment) reversal											943			(466	)
Net change in MSR valuation											(228	)		(2,288	)
Gain (loss) on MSR hedging and risk management instruments:
Statement No. 133 fair value hedging adjustments											(977	)		(468	)
Revaluation gain from derivatives											163			1,469
Revaluation gain (loss) from certain trading securities											(223	)		81
Gain (loss) from certain available-for-sale securities											(18	)		1
Total gain (loss) on MSR hedging and risk management
instruments											(1,055	)		1,083
Total MSR risk management and amortization										$	(1,283	)	$	(1,205	)

WM - 17

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
	2005			2005			2005			2005			2004
Rollforward of Mortgage Servicing Rights⁽¹⁾⁽²⁾
Balance, beginning of period	$	7,042		$	5,730		$	6,802		$	5,906		$	6,112
Home loans:
Additions		703			605			555			490			372
Amortization		(482	)		(555	)		(564	)		(570	)		(636	)
(Impairment) reversal		353			413			(250	)		427			179
Statement No. 133 MSR accounting valuation adjustments		419			849			(813	)		545			(123	)
Net change in commercial real estate MSR		6			-			-			4			2
Balance, end of period⁽³⁾	$	8,041		$	7,042		$	5,730		$	6,802		$	5,906
Rollforward of Valuation Allowance for MSR Impairment
Balance, beginning of period	$	1,312		$	1,746		$	1,513		$	1,981		$	2,653
Impairment (reversal)		(353	)		(413	)		250			(427	)		(179	)
Other-than-temporary impairment		(43	)		(18	)		(11	)		(34	)		(486	)
Other		(2	)		(3	)		(6	)		(7	)		(7	)
Balance, end of period	$	914		$	1,312		$	1,746		$	1,513		$	1,981
Rollforward of Mortgage Loans Serviced for Others
Balance, beginning of period	$	547,578		$	543,324		$	542,797		$	540,392		$	551,245
Home loans:
Additions		51,642			43,418			36,174			34,533			27,218
Loan payments and other		(37,245	)		(39,005	)		(35,689	)		(32,861	)		(38,529	)
Net change in commercial real estate loans serviced for others		1,233			(159	)		42			733			458
Balance, end of period	$	563,208		$	547,578		$	543,324		$	542,797		$	540,392

		Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
		2005			2005			2005			2005			2004
Total Servicing Portfolio
Mortgage loans serviced for others	$	563,208		$	547,578		$	543,324		$	542,797		$	540,392
Consumer loans serviced for others		11,014			-			-			-			-
Servicing on retained MBS without MSR		1,404			1,487			1,592			1,702			1,808
Servicing on owned loans		242,114			245,165			243,494			233,738			229,879
Subservicing portfolio		629			749			825			421			461
Total servicing portfolio	$	818,369		$	794,979		$	789,235		$	778,658		$	772,540

										December 31, 2005
											Unpaid			Weighted
											Principal			Average
											Balance			Servicing Fee
														(in basis points,
Mortgage Loans Serviced for Others by Loan Type														annualized)
Government										$	45,709			46
Agency											327,763			32
Private											161,412			39
Specialty home loans											28,324			51
Total mortgage loans serviced for others⁽⁴⁾										$	563,208			36

⁽¹⁾

Net of valuation allowance.

⁽²⁾

MSR as a percentage of loans serviced for others was 1.43%, 1.29%, 1.05%, 1.25% and 1.09% at December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004.

⁽³⁾

At December 31, 2005, the aggregate MSR fair value was $8.10 billion.

⁽⁴⁾

Weighted average coupon rate (annualized) was 5.90% at December 31, 2005.

WM - 18

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
	2005			2005			2005			2005			2004
Allowance for Loan and Lease Losses
Balance, beginning of quarter	$	1,264		$	1,243		$	1,280		$	1,301		$	1,322
Allowance acquired through business combinations/other		447			-			(29	)		-			(20	)
Provision for loan and lease losses		121			52			31			16			37
		1,832			1,295			1,282			1,317			1,339
Loans charged off:
Loans secured by real estate:
Home		(7	)		(9	)		(11	)		(11	)		(9	)
Specialty mortgage finance⁽¹⁾		(14	)		(15	)		(11	)		(10	)		(10	)
Total home loans charged off		(21	)		(24	)		(22	)		(21	)		(19	)
Home equity loans and lines of credit		(6	)		(10	)		(8	)		(5	)		(3	)
Home construction⁽²⁾		-			-			(2	)		-			(1	)
Multi-family		-			-			(1	)		-			(2	)
Other real estate		(1	)		(4	)		(2	)		(1	)		(1	)
Total loans secured by real estate		(28	)		(38	)		(35	)		(27	)		(26	)
Consumer:
Credit card		(138	)		-			-			-			-
Other		(8	)		(8	)		(9	)		(13	)		(17	)
Commercial business		(16	)		(4	)		(8	)		(6	)		(8	)
Total loans charged off		(190	)		(50	)		(52	)		(46	)		(51	)
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		7			1			1			-			2
Multi-family		-			2			-			-			-
Other real estate		-			8			3			1			2
Total loans secured by real estate		8			12			5			2			5
Consumer:
Credit card		40			-			-			-			-
Other		3			5			6			5			4
Commercial business		2			2			2			2			4
Total recoveries of loans previously charged off		53			19			13			9			13
Net charge-offs		(137	)		(31	)		(39	)		(37	)		(38	)
Balance, end of quarter	$	1,695		$	1,264		$	1,243		$	1,280		$	1,301

Net charge-offs (annualized) as a percentage
of average loans held in portfolio		0.24	%		0.06	%		0.07	%		0.07	%		0.07	%
Allowance as a percentage of total loans held in portfolio		0.74			0.58			0.58			0.60			0.63

⁽¹⁾

Represents purchased subprime home loan portfolios and subprime home loans originated by Long Beach Mortgage Company and held in its investment portfolio.

⁽²⁾

single-family residence.

WM - 19

Washington Mutual, Inc.
Selected Financial Information
(dollars in millions)
(unaudited)

	Dec. 31,			Sept. 30,			June 30,			Mar. 31,			Dec. 31,
	2005			2005			2005			2005			2004
Nonperforming Assets and Restructured Loans
Nonaccrual loans⁽¹⁾:
Loans secured by real estate:
Home	$	565		$	472		$	495		$	495		$	534
Specialty mortgage finance⁽²⁾		872			755			692			734			682
Total home nonaccrual loans		1,437			1,227			1,187			1,229			1,216
Home equity loans and lines of credit		88			68			67			74			66
Home construction⁽³⁾		10			10			11			25			28
Multi-family		25			18			15			15			12
Other real estate		70			69			116			159			162
Total nonaccrual loans secured by real estate		1,630			1,392			1,396			1,502			1,484
Consumer⁽⁴⁾		8			8			8			8			9
Commercial business		48			65			59			59			41
Total nonaccrual loans held in portfolio		1,686			1,465			1,463			1,569			1,534
Foreclosed assets		276			256			256			264			261
Total nonperforming assets	$	1,962		$	1,721		$	1,719		$	1,833		$	1,795
As a percentage of total assets		0.57	%		0.52	%		0.53	%		0.57	%		0.58	%
Restructured loans	$	22		$	25		$	25		$	27		$	34
Total nonperforming assets and restructured loans	$	1,984		$	1,746		$	1,744		$	1,860		$	1,829

⁽¹⁾	Excludes nonaccrual loans held for sale of $245 million at December 31, 2005. Prior periods also reflect the exclusion of nonaccrual loans held for sale of $152 million, $108 million, $112 million and
	$76 million at September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004. Loans held for sale are accounted for at lower of aggregate cost or market value, with valuation changes
	included as adjustments to noninterest income.
⁽²⁾	Represents purchased subprime home loan portfolios and subprime home loans originated by Long Beach Mortgage Company and held in its investment portfolio.
⁽³⁾	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant
	of a single-family residence.
⁽⁴⁾	Excludes credit card loans.

Mr. Cooper (COOP) 8-KWashington Mutual Announces Fourth Quarter and 2005 Earnings