Mr. Cooper 8K Washington Mutual Reports First Quarter 2006 Earnings Per Share of 98 Cents | COOP 18 Apr 06

Exhibit 99.2

WM - 1

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

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2006			2005			2005			2005			2005
PROFITABILITY
Net income	$	985		$	865		$	821		$	844		$	902
Net interest income		2,117			2,241			2,005			2,009			1,963
Noninterest income		1,725			1,602			1,285			1,184			1,335
Noninterest expense		2,211			2,278			1,925			1,828			1,839

Diluted earnings per common share		0.98			0.85			0.92			0.95			1.01

Diluted weighted average number of common shares outstanding⁽¹⁾		1,003,460			1,011,395			888,495			887,250			888,789
Net interest margin		2.75	%		2.88	%		2.73	%		2.77	%		2.83	%
Dividends declared per common share	$	0.50		$	0.49		$	0.48		$	0.47		$	0.46
Book value per common share⁽²⁾		27.45			27.95			25.92			25.62			24.98
Return on average assets		1.14	%		0.99	%		1.00	%		1.05	%		1.17	%
Return on average common equity		14.18			12.49			14.66			15.33			16.63
Efficiency ratio⁽³⁾		57.54			59.27			58.52			57.24			55.77

ASSET QUALITY
Nonperforming assets/total assets⁽⁴⁾⁽⁵⁾		0.59	%		0.57	%		0.52	%		0.53	%		0.57	%
Allowance as a percentage of total loans held in portfolio⁽⁵⁾		0.68			0.74			0.58			0.58			0.60
Provision for loan and lease losses	$	82		$	217		$	52		$	31		$	16
Net charge-offs		105			137			31			39			37

CAPITAL ADEQUACY⁽⁵⁾
Capital Ratios at WMI-consolidated level:
Tangible equity⁽⁶⁾ to total tangible assets⁽⁶⁾		5.85	%		5.72	%		5.09	%		5.13	%		5.03	%
Estimated total risk-based capital to total risk-weighted assets⁽⁷⁾		10.94			10.90			10.71			11.10			11.21
Capital Ratios at WMB-bank only level
(well-capitalized minimum)⁽⁸⁾:
Tier 1 capital to adjusted total assets (5.00%)		6.86			6.56			5.85			5.74			5.69
Adjusted tier 1 capital to total risk-weighted assets (6.00%)		9.12			8.61			8.47			8.38			8.40
Total risk-based capital to total risk-weighted assets (10.00%)		11.97			11.62			11.48			11.51			11.68

SUPPLEMENTAL DATA
Average balance sheet:
Total loans held in portfolio	$	232,505		$	227,568		$	213,016		$	213,638		$	207,320
Total interest-earning assets		307,825			314,531			296,568			290,876			277,080
Total assets		344,562			349,931			327,292			320,845			308,172
Total deposits		191,034			196,799			188,320			183,521			175,185
Total stockholders' equity		27,798			27,708			22,412			22,014			21,680
Period-end balance sheet:
Total loans held in portfolio, net of allowance for loan
and lease losses		238,362			227,937			216,930			211,494			212,834
Total assets		348,667			343,839			333,622			323,533			319,696
Total deposits		200,002			193,167			190,412			184,317			183,631
Total stockholders' equity		26,156			27,616			22,596			22,350			21,767
Common shares outstanding at the end of period⁽¹⁾⁽⁹⁾		958,819			993,914			877,651			878,384			877,287
Employees at end of period		60,381			60,798			56,214			54,377			52,488


⁽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⁾	Includes MSR, but excludes unrealized net gain/loss on available-for-sale securities and derivatives, goodwill and intangible assets, all of which are applied to both the numerator and the denominator. Calculation of ratio at March 31, 2006 includes minority interests of $1.97 billion in the numerator.
⁽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 March 31, 2006 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
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,		Mar. 31,
	2006			2005			2005			2005		2005
Interest Income
Loans held for sale	$	466		$	676		$	665		$	580	$	472
Loans held in portfolio		3,576			3,431			2,947			2,833		2,615
Available-for-sale securities		322			303			238			234		224
Trading assets		198			185			114			91		79
Other interest and dividend income		95			73			65			51		43
Total interest income		4,657			4,668			4,029			3,789		3,433
Interest Expense
Deposits		1,221			1,184			996			852		696
Borrowings		1,319			1,243			1,028			928		774
Total interest expense		2,540			2,427			2,024			1,780		1,470
Net interest income		2,117			2,241			2,005			2,009		1,963
Provision for loan and lease losses		82			217			52			31		16
Net interest income after provision for loan and lease losses		2,035			2,024			1,953			1,978		1,947
Noninterest Income
Revenue from sales and servicing of home mortgage loans		263			418			710			114		775
Revenue from sales and servicing of consumer loans		431			409			2			2		1
Depositor and other retail banking fees		578			586			578			540		490
Credit card fees		138			139			-			-		-
Securities fees and commissions		119			114			111			112		110
Insurance income		33			37			42			47		46
Trading assets income (loss)		(68	)		(273	)		(171	)		285		(98	)
Gain (loss) from other available-for-sale securities		(7	)		46			(32	)		25		(122	)
Other income		238			126			45			59		133
Total noninterest income		1,725			1,602			1,285			1,184		1,335
Noninterest Expense
Compensation and benefits⁽¹⁾		1,044			1,037			939			886		876
Occupancy and equipment		392			399			372			350		402
Telecommunications and outsourced information services		135			139			108			100		104
Depositor and other retail banking losses		56			60			61			49		55
Advertising and promotion		96			114			81			77		55
Professional fees		36			63			48			38		34
Other expense		452			466			316			328		313
Total noninterest expense		2,211			2,278			1,925			1,828		1,839
Income before income taxes		1,549			1,348			1,313			1,334		1,443
Income taxes		564			483			492			490		541
Net Income	$	985		$	865		$	821		$	844	$	902

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

Dividends declared per common share		0.50			0.49			0.48			0.47		0.46
Basic weighted average number of common shares outstanding (in thousands)		973,614			980,084			866,541			865,221		864,933
Diluted weighted average number of common shares outstanding (in thousands)		1,003,460			1,011,395			888,495			887,250		888,789

⁽¹⁾

As of January 1, 2006, the Company applied Statement of Financial Accounting Standards ("Statement") No. 123R, Share-Based Payment. Statement No. 123R requires an entity that previously had a policy of recognizing the effect of forfeitures as they occurred to estimate the number of outstanding instruments for which the requisite service is not expected to be rendered. The effect of this change in accounting principle amounted to $25 million and has been reflected as a decrease to compensation and benefits expense in the first quarter of 2006.

WM - 3

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,
	2006			2005			2005			2005			2005
Assets
Cash and cash equivalents	$	5,868		$	6,214		$	4,924		$	4,614		$	4,811
Federal funds sold and securities purchased under agreements to resell		3,995			2,137			3,194			625			1,152
Trading assets		9,958			10,999			7,351			5,687			6,066
Available-for-sale securities, total amortized cost of $27,424, $24,810,
$20,757, $18,999 and $20,569:
Mortgage-backed securities		21,388			20,648			17,161			14,396			15,947
Investment securities		5,586			4,011			3,603			4,852			4,756
Loans held for sale		25,020			33,582			48,018			51,122			41,197
Loans held in portfolio		240,004			229,632			218,194			212,737			214,114
Allowance for loan and lease losses		(1,642	)		(1,695	)		(1,264	)		(1,243	)		(1,280	)
Total loans held in portfolio, net of allowance for loan and lease losses		238,362			227,937			216,930			211,494			212,834
Investment in Federal Home Loan Banks		4,200			4,257			4,228			4,194			3,973
Mortgage servicing rights		8,736			8,041			7,042			5,730			6,802
Goodwill		8,298			8,298			6,196			6,196			6,196
Other assets		17,256			17,715			14,975			14,623			15,962
Total assets	$	348,667		$	343,839		$	333,622		$	323,533		$	319,696
Liabilities
Deposits:
Noninterest-bearing deposits	$	36,531		$	34,014		$	36,850		$	35,518		$	34,941
Interest-bearing deposits		163,471			159,153			153,562			148,799			148,690
Total deposits		200,002			193,167			190,412			184,317			183,631
Federal funds purchased and commercial paper		6,841			7,081			7,229			5,864			2,053
Securities sold under agreements to repurchase		15,471			15,532			14,508			14,089			16,716
Advances from Federal Home Loan Banks		65,283			68,771			69,405			71,534			66,730
Other borrowings		24,872			23,777			23,994			20,752			21,938
Other liabilities		8,069			7,880			5,463			4,614			6,848
Minority interests⁽¹⁾		1,973			15			15			13			13
Total liabilities		322,511			316,223			311,026			301,183			297,929
Stockholders' equity		26,156			27,616			22,596			22,350			21,767
Total liabilities and stockholders' equity	$	348,667		$	343,839		$	333,622		$	323,533		$	319,696

⁽¹⁾

Includes the issuance of perpetual non-cumulative preferred securities by Washington Mutual Preferred Funding, LLC, an indirect subsidiary of Washington Mutual, Inc.

WM - 4

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

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2006			2005			2005			2005			2005
Stockholders' Equity Rollforward
Balance, beginning of period	$	27,616		$	22,596		$	22,350		$	21,767		$	21,226
Net income		985			865			821			844			902
Cumulative effect of a change in accounting principle, net of income taxes⁽¹⁾		29			-			-			-			-
Other comprehensive (loss) income, net of income taxes		(213	)		(91	)		(158	)		98			(8	)
Cash dividends declared on common stock		(499	)		(480	)		(419	)		(409	)		(402	)
Common stock repurchased and retired		(2,108	)		(723	)		(98	)		-			(100	)
Common stock issued for acquisition		-			5,030			-			-			-
Common stock issued		346			419			100			50			149
Balance, end of period	$	26,156		$	27,616		$	22,596		$	22,350		$	21,767

⁽¹⁾

As of January 1, 2006, the Company prospectively applied Statement of Financial Accounting Standards No. 156, Accounting for Servicing of Financial Assets ("Statement"). This Statement amends Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, and permits an entity to choose either to continue the current practice of amortizing servicing assets and assess such assets for impairment, or to report servicing assets at fair value. The Company has elected to report all classes of servicing assets at fair value. This Statement also permits the transfer of available-for-sale securities being utilized as MSR risk management instruments to trading securities. The cumulative effects, net of income taxes, applied to January 1, 2006 retained earnings was an increase of $35 million from the MSR fair value election and a decrease of $6 million from the transfer of AFS securities, designated as MSR risk management instruments, to the trading portfolio.

WM - 5

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

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2006			2005			2005			2005			2005
RETAIL BANKING GROUP
Condensed income statement:
Net interest income	$	1,523		$	1,457		$	1,417		$	1,458		$	1,401
Provision for loan and lease losses		50			42			47			40			37
Noninterest income		741			756			716			684			638
Inter-segment revenue		14			8			12			11			12
Noninterest expense		1,160			1,175			1,131			1,090			1,058
Income before income taxes		1,068			1,004			967			1,023			956
Income taxes		408			376			367			387			361
Net income	$	660		$	628		$	600		$	636		$	595
Performance and other data:
Efficiency ratio⁽¹⁾		50.91	%		52.94	%		52.75	%		50.62	%		51.59	%
Average loans	$	189,142		$	183,780		$	179,361		$	181,396		$	177,635
Average assets		202,235			196,872			191,929			194,029			190,496
Average deposits:
Checking deposits:
Noninterest bearing		20,346			19,953			19,350			18,868			17,588
Interest bearing		40,343			43,192			45,186			47,531			49,777
Total checking deposits		60,689			63,145			64,536			66,399			67,365
Savings and money market deposits		37,433			36,594			35,517			34,875			36,100
Time deposits		40,940			40,473			38,688			34,265			29,517
Average total deposits		139,062			140,212			138,741			135,539			132,982
Loan volume		7,255			11,563			11,191			11,704			12,493
Employees at end of period		30,336			30,532			30,123			29,046			27,699
CARD SERVICES GROUP (managed basis presentation)
Condensed income statement⁽²⁾:
Net interest income	$	614		$	637
Provision for loan and lease losses		330			454
Noninterest income		345			352
Noninterest expense		289			268
Income before income taxes		340			267
Income taxes		130			101
Net income	$	210		$	166
Performance and other data:
Efficiency ratio ⁽¹⁾		30.15	%		27.08	%
Average loans	$	20,086		$	19,472
Average assets		22,764			22,198
Employees at end of period		2,871			3,124
COMMERCIAL GROUP⁽³⁾
Condensed income statement:
Net interest income	$	198		$	222		$	222		$	218		$	229
Provision for loan and lease losses		1			1			1			1			1
Noninterest income		13			109			8			3			75
Noninterest expense		68			66			63			57			54
Income before income taxes		142			264			166			163			249
Income taxes		54			100			62			61			94
Net income	$	88		$	164		$	104		$	102		$	155
Performance and other data:
Efficiency ratio⁽¹⁾		32.37	%		19.85	%		27.44	%		25.84	%		17.83	%
Average loans	$	31,011		$	30,950		$	30,455		$	29,597		$	29,563
Average assets		33,833			34,443			33,854			33,078			32,726
Average deposits		2,263			2,428			2,485			2,462			2,998
Loan volume		2,769			2,932			3,003			2,864			2,433
Employees at end of period		1,351			1,334			1,272			1,284			1,268
HOME LOANS GROUP⁽³⁾
Condensed income statement:
Net interest income	$	268		$	415		$	480		$	449		$	396
Provision for loan and lease losses		1			1			1			-			1
Noninterest income		408			324			659			668			747
Inter-segment expense		14			8			12			11			12
Noninterest expense		599			656			640			637			611
Income before income taxes		62			74			486			469			519
Income taxes		24			29			183			177			196
Net income	$	38		$	45		$	303		$	292		$	323
Performance and other data:
Efficiency ratio⁽¹⁾		90.47	%		89.69	%		56.76	%		57.58	%		53.95	%
Average loans	$	34,586		$	51,073		$	53,424		$	48,040		$	38,903
Average assets		64,198			78,438			75,213			69,005			61,038
Average deposits		16,530			19,134			21,563			19,119			17,408
Loan volume		44,998			48,701			56,471			53,030			44,495
Employees at end of period		16,017			16,171			15,669			15,055			14,815

(This table is continued on "WM-6".)

⁽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 are eliminated within Reconciling Adjustments.
⁽³⁾	Effective January 1, 2006, the Company reorganized its single family residential mortgage lending operations. This reorganization combined the Company's subprime mortgage origination business, Long Beach Mortgage Company, as well as its Mortgage Banker Finance lending operations with the Home Loans Group. Previously these operations were reported within the Commercial Group. Prior periods have been recast to reflect this change in organization.

WM - 6

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
(This table is continued from "WM-5".)	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2006			2005			2005			2005			2005
CORPORATE SUPPORT/TREASURY AND OTHER
Condensed income statement:
Net interest expense	$	(173	)	$	(196	)	$	(229	)	$	(230	)	$	(176	)
Noninterest income (expense)		173			29			(48	)		(36	)		(63	)
Noninterest expense		95			113			91			44			116
Loss before income taxes		(95	)		(280	)		(368	)		(310	)		(355	)
Income tax benefit		(52	)		(111	)		(150	)		(126	)		(144	)
Net loss	$	(43	)	$	(169	)	$	(218	)	$	(184	)	$	(211	)
Performance and other data:
Average loans	$	1,142		$	1,126		$	1,073		$	1,030		$	1,082
Average assets		33,452			28,963			28,023			26,498			25,713
Average deposits		33,179			35,025			25,531			26,401			21,797
Loan volume		24			96			67			20			94
Employees at end of period		9,806			9,637			9,150			8,992			8,706

RECONCILING ADJUSTMENTS
Condensed income statement:
Net interest income⁽³⁾	$	119		$	115		$	115		$	114		$	113
Provision (reversal of reserve) for loan and lease losses⁽⁴⁾		(75	)		(22	)		3			(10	)		(23	)
Noninterest income (expense)⁽⁵⁾		(162	)		(118	)		(50	)		(135	)		(62	)
Securitization adjustments:⁽²⁾
Net interest income		(432	)		(409	)		-			-			-
Provision (reversal of reserve) for loan and lease losses		(225	)		(259	)		-			-			-
Noninterest income (expense)		207			150			-			-			-
Income (loss) before income taxes		32			19			62			(11	)		74
Income taxes (benefit)⁽⁶⁾		-			(12	)		30			(9	)		34
Net income (loss)	$	32		$	31		$	32		$	(2	)	$	40
Performance and other data:
Average loans⁽⁷⁾	$	(1,534	)	$	(1,516	)	$	(1,550	)	$	(1,541	)	$	(1,556	)
Average assets⁽⁷⁾⁽⁸⁾		(1,701	)		(1,716	)		(1,727	)		(1,765	)		(1,801	)
Securitization adjustments:⁽²⁾
Average loans		(12,107	)		(11,011	)		-			-			-
Average assets		(10,219	)		(9,267	)		-			-			-

TOTAL CONSOLIDATED
Condensed income statement:
Net interest income	$	2,117		$	2,241		$	2,005		$	2,009		$	1,963
Provision for loan and lease losses		82			217			52			31			16
Noninterest income		1,725			1,602			1,285			1,184			1,335
Noninterest expense		2,211			2,278			1,925			1,828			1,839
Income before income taxes		1,549			1,348			1,313			1,334			1,443
Income taxes		564			483			492			490			541
Net income	$	985		$	865		$	821		$	844		$	902
Performance and other data:
Efficiency ratio⁽¹⁾		57.54	%		59.27	%		58.52	%		57.24	%		55.77	%
Average loans	$	262,326		$	273,874		$	262,763		$	258,522		$	245,627
Average assets		344,562			349,931			327,292			320,845			308,172
Average deposits		191,034			196,799			188,320			183,521			175,185
Loan volume		55,046			63,292			70,732			67,618			59,515
Employees at end of period		60,381			60,798			56,214			54,377			52,488

⁽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 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 Group are treated as if they are purchased from the Home Loans Group. Since the cost basis of these loans includes an assumed profit factor paid to the Home Loans Group, the amortization of loan premiums recorded by the Retail Banking Group 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 primarily recorded by the Home Loans Group and the gain from mortgage loans recognized in the Company's Consolidated Statements of Income. A substantial amount of loans originated or purchased by this segment are considered to be salable for management reporting purposes.

⁽⁶⁾

Represents the tax effect of reconciling adjustments.

⁽⁷⁾

Includes the inter-segment offset for inter-segment loan premiums that the Retail Banking Group recognized from the transfer of portfolio loans from the Home Loans Group.

⁽⁸⁾

Includes the impact to the allowance for 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,
2006	2005	2005	2005	2005
$(167)	$(200)	$(177)	$(224)	$(245)

WM - 7

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31, 2006							Dec. 31, 2005							Mar. 31, 2005
						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	$	3,754		4.62	%	$	43	$	2,380		4.01	%	$	24	$	1,354		2.55	%	$	9
Trading assets		11,692		6.80			198		10,330		7.13			185		5,713		5.54			79
Available-for-sale securities⁽¹⁾:
Mortgage-backed securities		20,144		5.29			266		19,135		5.25			252		15,487		4.45			173
Investment securities		4,845		4.62			56		4,316		4.75			51		4,627		4.44			51
Loans held for sale⁽²⁾		29,821		6.25			466		46,306		5.82			676		38,307		4.94			472
Loans held in portfolio⁽²⁾:
Loans secured by real estate:
Home⁽³⁾		117,720		5.58			1,643		111,126		5.30			1,472		110,131		4.65			1,280
Specialty mortgage finance⁽⁴⁾		19,956		5.92			295		22,415		6.04			339		18,554		5.73			266
Total home loans		137,676		5.63			1,938		133,541		5.42			1,811		128,685		4.81			1,546
Home equity loans and lines of credit		51,331		6.97			884		50,464		6.55			832		44,679		5.44			601
Home construction⁽⁵⁾		2,059		6.34			33		2,008		6.35			32		2,242		5.77			32
Multi-family		25,758		5.92			382		25,312		5.77			365		22,667		5.08			288
Other real estate		5,157		6.84			88		4,953		7.38			92		5,425		6.71			91
Total loans secured by real estate		221,981		6.01			3,325		216,278		5.78			3,132		203,698		5.04			2,558
Consumer:
Credit card		7,808		10.74			206		8,259		11.96			249		-		-			-
Other		622		11.03			17		654		10.79			18		770		10.50			20
Commercial business		2,094		5.42			28		2,377		5.28			32		2,852		5.25			37
Total loans held in portfolio		232,505		6.18			3,576		227,568		6.02			3,431		207,320		5.06			2,615
Other⁽⁶⁾		5,064		4.17			52		4,496		4.28			49		4,272		3.21			34
Total interest-earning assets		307,825		6.07			4,657		314,531		5.92			4,668		277,080		4.97			3,433
Noninterest-earning assets:
Mortgage servicing rights		8,260							7,680							6,090
Goodwill		8,298							8,247							6,196
Other assets		20,179							19,473							18,806
Total assets	$	344,562						$	349,931						$	308,172
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	40,436		2.29			228	$	43,302		2.23			243	$	49,917		1.63			201
Savings and money market deposits		44,816		2.38			263		43,831		2.09			231		41,997		1.42			147
Time deposits		73,182		4.02			730		74,300		3.77			710		50,725		2.77			348
Total interest-bearing deposits		158,434		3.11			1,221		161,433		2.90			1,184		142,639		1.97			696
Federal funds purchased and commercial paper		7,463		4.46			83		8,236		4.07			85		3,486		2.49			22
Securities sold under agreements to repurchase		15,280		4.46			170		15,330		4.09			160		16,621		2.65			110
Advances from Federal Home Loan Banks		66,995		4.46			746		70,113		4.06			726		66,591		2.82			469
Other		26,636		4.81			320		24,715		4.38			272		18,400		3.78			173
Total interest-bearing liabilities		274,808		3.72			2,540		279,827		3.42			2,427		247,737		2.39			1,470
Noninterest-bearing sources:
Noninterest-bearing deposits		32,600							35,366							32,546
Other liabilities		8,804							7,015							6,196
Minority interests		552							15							13
Stockholders' equity		27,798							27,708							21,680
Total liabilities and stockholders' equity	$	344,562						$	349,931						$	308,172
Net interest spread and net interest income				2.35		$	2,117				2.50		$	2,241				2.58		$	1,963
Impact of noninterest-bearing sources				0.40							0.38							0.25
Net interest margin				2.75							2.88							2.83

⁽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 March 31, 2006, December 31, 2005 and March 31, 2005, deferred interest recognized in earnings that resulted from negative amortization within the Option ARM portfolio totaled $203 million, $140 million and $25 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 (other than loans) and related income, if any, are included within this category.

WM - 8

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	December 31, 2005			Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	to March 31, 2006			2006		2005		2005		2005		2005
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing	$	1,626		$	22,378	$	20,752	$	20,622	$	19,093	$	18,599
Interest bearing		(2,964	)		39,289		42,253		44,294		46,031		48,988
Total checking deposits		(1,338	)		61,667		63,005		64,916		65,124		67,587
Savings and money market deposits		1,533			38,197		36,664		35,579		34,514		35,184
Time deposits⁽¹⁾		1,175			41,534		40,359		40,476		36,162		31,819
Total retail deposits		1,370			141,398		140,028		140,971		135,800		134,590
Commercial business deposits		3,100			14,559		11,459		9,758		9,648		8,447
Wholesale deposits		1,360			31,277		29,917		24,534		23,638		24,969
Custodial and escrow deposits⁽²⁾		1,005			12,768		11,763		15,149		15,231		15,625
Total deposits	$	6,835		$	200,002	$	193,167	$	190,412	$	184,317	$	183,631

⁽¹⁾

Weighted average remaining maturity of time deposits was 10 months at March 31, 2006, 11 months at December 31, 2005, 12 months at September 30, 2005, 13 months at June 30, 2005 and 14 months at March 31, 2005.

⁽²⁾

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


	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2006		2005		2005		2005		2005
Retail Deposit Accounts⁽¹⁾
Checking		10,223,664		9,883,507		9,680,317		9,427,222		9,183,194
Money market and savings		5,929,653		5,694,102		5,560,060		5,395,091		5,250,907
Total transaction accounts, end of period⁽²⁾		16,153,317		15,577,609		15,240,377		14,822,313		14,434,101

Net checking account changes		340,157		203,190		253,095		244,028		202,134
Net total transaction account changes		575,708		337,232		418,064		388,212		342,367

⁽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,
	2006		2005			2005		2005		2005
Retail Banking Stores
Stores, beginning of period		2,140		2,051			1,997		1,968		1,939
Net stores opened during the quarter		28		89	⁽¹⁾		54		29		29
Stores, end of period		2,168		2,140			2,051		1,997		1,968

⁽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 and were subsequently sold in April 2006.

	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2006		2005		2005		2005		2005
Assets Under Management	$	26,386	$	25,310	$	24,546	$	23,348	$	22,454

WM - 9

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

	Quarter Ended
	Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2006		2005		2005		2005		2005
Loan Volume
Home loans:
Adjustable rate	$	21,200	$	20,266	$	26,607	$	25,293	$	22,947
Fixed rate		16,568		20,494		21,122		19,355		17,147
Specialty mortgage finance⁽¹⁾		6,422		9,669		8,413		8,753		7,656
Total home loan volume		44,190		50,429		56,142		53,401		47,750
Home equity loans and lines of credit		7,306		9,118		10,828		10,888		8,887
Home construction loans⁽²⁾		493		479		370		258		245
Multi-family		2,034		2,595		2,580		2,459		2,121
Other real estate		716		419		465		371		345
Total loans secured by real estate		54,739		63,040		70,385		67,377		59,348
Consumer⁽³⁾		49		79		182		82		43
Commercial business		258		173		165		159		124
Total loan volume	$	55,046	$	63,292	$	70,732	$	67,618	$	59,515
Loan Volume by Channel
Retail	$	22,580	$	27,676	$	32,614	$	30,565	$	25,569
Wholesale		16,722		17,190		20,000		20,323		16,716
Purchased/correspondent		15,744		18,426		18,118		16,730		17,230
Total loan volume by channel	$	55,046	$	63,292	$	70,732	$	67,618	$	59,515
Refinancing Activity⁽⁴⁾
Home loan refinancing	$	23,756	$	27,435	$	29,084	$	27,583	$	28,641
Home equity loans and lines of credit and consumer		211		219		245		475		392
Home construction loans		17		12		17		13		10
Multi-family and other real estate		774		831		738		700		660
Total refinancing	$	24,758	$	28,497	$	30,084	$	28,771	$	29,703
Home Loan Volume
Short-term adjustable-rate loans⁽⁵⁾:
Option ARMs	$	7,121	$	11,699	$	16,353	$	19,564	$	15,644
Other ARMs		2,943		1,222		1,237		367		974
Total short-term adjustable-rate loans		10,064		12,921		17,590		19,931		16,618
Medium-term adjustable-rate loans⁽⁶⁾		16,521		15,447		16,454		13,388		13,409
Fixed-rate loans		17,605		22,061		22,098		20,082		17,723
Total home loan volume	$	44,190	$	50,429	$	56,142	$	53,401	$	47,750

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 $266 million, $304 million, $466 million, $477 million and $563 million for the quarters ended March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005.

⁽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 - 10

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	December 31, 2005			Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	to March 31, 2006			2006			2005			2005			2005			2005
Loans by Product Type
Loans held in portfolio:
Loans secured by real estate:
Home:
Short-term adjustable-rate loans⁽¹⁾:
Option ARMs⁽²⁾	$	(22	)	$	70,169		$	70,191		$	67,863		$	66,533		$	67,938
Other ARMs		1,115			15,781			14,666			12,956			10,903			10,462
Total short-term adjustable-rate loans		1,093			85,950			84,857			80,819			77,436			78,400
Medium-term adjustable-rate loans⁽³⁾		7,880			49,391			41,511			43,610			43,499			46,789
Fixed-rate loans		(262	)		8,660			8,922			8,616			8,638			8,794
Total home loans⁽⁴⁾		8,711			144,001			135,290			133,045			129,573			133,983
Home equity loans and lines of credit		1,021			51,872			50,851			50,066			48,449			45,849
Home construction⁽⁵⁾		58			2,095			2,037			2,019			2,037			2,170
Multi-family		550			26,151			25,601			25,014			24,240			23,247
Other real estate		318			5,353			5,035			4,929			4,915			5,311
Total loans secured by real estate		10,658			229,472			218,814			215,073			209,214			210,560
Consumer:
Credit card		(137	)		7,906			8,043			-			-			-
Other		(36	)		602			638			669			703			747
Commercial business		(113	)		2,024			2,137			2,452			2,820			2,807
Total loans held in portfolio⁽⁶⁾		10,372			240,004			229,632			218,194			212,737			214,114
Less: allowance for loan and lease losses		53			(1,642	)		(1,695	)		(1,264	)		(1,243	)		(1,280	)
Total net loans held in portfolio		10,425			238,362			227,937			216,930			211,494			212,834
Loans held for sale⁽⁷⁾		(8,562	)		25,020			33,582			48,018			51,122			41,197
Total net loans	$	1,863		$	263,382		$	261,519		$	264,948		$	262,616		$	254,031	��

⁽¹⁾

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

⁽²⁾

The total amount by which the unpaid principal balance ("UPB") of Option ARM loans exceeded their original principal amount was $291 million at March 31, 2006, $157 million at December 31, 2005, $76 million at September 30, 2005, $34 million at June 30, 2005 and $20 million at March 31, 2005.

⁽³⁾

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

⁽⁴⁾

Includes specialty mortgage finance loans, which are comprised 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 $20.24 billion, $21.15 billion, $21.16 billion, $20.17 billion and $21.54 billion at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005.

⁽⁵⁾

⁽⁶⁾

Includes net unamortized deferred loan origination costs of $1.61 billion, $1.53 billion, $1.47 billion, $1.39 billion and $1.36 billion at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005.

⁽⁷⁾

Fair value of loans held for sale was $25.03 billion, $33.70 billion, $48.14 billion, $51.39 billion and $41.38 billion as of March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005.

WM - 11

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

	Change from					Weighted					Weighted					Weighted
	Dec. 31, 2005					Average					Average					Average
	to March 31, 2006			Mar. 31, 2006		Coupon Rate			Dec. 31, 2005		Coupon Rate			Mar. 31, 2005		Coupon Rate
Selected Loans Secured by Real Estate and MBS
Home loans held in portfolio:
Short-term adjustable-rate loans⁽¹⁾:
Option ARMs	$	(22	)	$	70,169		6.34	%	$	70,191		5.87	%	$	67,938		4.60	%
Other ARMs		1,115			15,781		6.64			14,666		6.44			10,462		6.34
Total short-term adjustable-rate loans		1,093			85,950		6.39			84,857		5.97			78,400		4.83
Medium-term adjustable-rate loans⁽²⁾		7,880			49,391		5.61			41,511		5.58			46,789		5.53
Fixed-rate loans		(262	)		8,660		6.54			8,922		6.56			8,794		6.67
Total home loans held in portfolio		8,711			144,001		6.13			135,290		5.89			133,983		5.20
Home equity loans and lines of credit:
Short-term (Prime-based or treasury-based)⁽¹⁾		69			37,181		7.79			37,112		7.26			35,359		5.69
Fixed-rate loans		952			14,691		6.69			13,739		6.56			10,490		6.34
Total home equity loans and lines of credit		1,021			51,872		7.48			50,851		7.07			45,849		5.84
Multi-family loans held in portfolio:
Short-term adjustable-rate loans⁽¹⁾:
Option ARMs		(23	)		9,506		6.13			9,529		5.74			8,253		4.55
Other ARMs		(126	)		6,280		6.27			6,406		5.92			6,062		4.82
Total short-term adjustable-rate loans		(149	)		15,786		6.19			15,935		5.81			14,315		4.66
Medium-term adjustable-rate loans⁽²⁾		673			8,791		5.35			8,118		5.29			7,368		5.28
Fixed-rate loans		26			1,574		6.51			1,548		6.59			1,564		6.80
Total multi-family loans held in portfolio		550			26,151		5.93			25,601		5.69			23,247		5.00
Total selected loans held in portfolio secured by real estate⁽³⁾		10,282			222,024		6.42			211,742		6.15			203,079		5.32
Loans held for sale⁽⁴⁾		(8,085	)		24,843		6.53			32,928		6.15			41,003		5.11
Total selected loans secured by real estate		2,197			246,867		6.44			244,670		6.15			244,082		5.28
MBS⁽⁵⁾:
Short-term adjustable-rate MBS⁽¹⁾		798			8,763		5.13			7,965		4.88			11,558		3.95
Medium-term adjustable-rate MBS⁽²⁾		(484	)		4,020		4.93			4,504		4.97			991		4.45
Fixed-rate MBS		426			8,605		5.21			8,179		5.11			3,185		5.22
Total MBS⁽⁶⁾		740			21,388		5.13			20,648		4.99			15,734		4.24
Total selected loans secured by real estate and MBS	$	2,937		$	268,255		6.33		$	265,318		6.06		$	259,816		5.22

⁽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 March 31, 2006, December 31, 2005 and March 31, 2005, the adjustable-rate loans with lifetime caps were $193.55 billion, $184.87 billion and $179.59 billion with a lifetime weighted average cap rate of 12.16%, 12.25% 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 March 31, 2006, December 31, 2005 and March 31, 2005, the par value of adjustable-rate MBS with lifetime caps were $12.92 billion, $12.46 billion and $12.47 billion with a lifetime weighted average cap rate of 10.36%, 10.31% and 10.18%.

		Dec. 31, 2005
	to March 31, 2006
Rollforward of Loans Held for Sale
Balance, beginning of period		$	33,582
Mortgage loans originated, purchased and transferred from held in portfolio			28,912
Mortgage loans transferred to held in portfolio			(2,009	)
Mortgage loans sold and other			(34,987	)
Net change in consumer loans held for sale			(478	)
Balance, end of period		$	25,020

Rollforward of Home Loans Held in Portfolio
Balance, beginning of period		$	135,290
Loans originated, purchased and transferred from held for sale			18,350
Loan payments, transferred to held for sale and other			(9,639	)
Balance, end of period		$	144,001

WM - 12

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

	Quarter Ended

				Pro Forma Results Assuming Retrospective Application of SFAS No. 156
Detail of Revenue from Sales and Servicing of Home Mortgage Loans⁽¹⁾	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2006			2005			2005			2005			2005
Gain from home mortgage loans and originated mortgage-backed securities,⁽²⁾
net of hedging and risk management instruments:
Gain from home mortgage loans and originated mortgage-backed securities	$	157		$	213		$	206		$	250		$	181
Revaluation gain (loss) from derivatives economically hedging loans held for sale		52			25			73			(79	)		80
Gain from home mortgage loans and originated mortgage-backed securities,
net of hedging and risk management instruments		209			238			279			171			261
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue⁽³⁾		572			544			534			523			510
Change in MSR fair value due to payments on loans and other⁽¹⁾		(409	)		(483	)		(480	)		(404	)		(362	)
Net mortgage loan servicing revenue		163			61			54			119			148
Change in MSR fair value due to valuation inputs or assumptions⁽¹⁾		413			805			1,193			(1,224	)		764
Revaluation gain (loss) from derivatives economically hedging MSR ⁽¹⁾		(522	)		(654	)		(810	)		1,047			(398	)
Home mortgage loan servicing revenue (expense), net of MSR valuation
changes and derivative risk management instruments		54			212			437			(58	)		514
Total revenue from sales and servicing of home mortgage loans	$	263			450			716			113			775
Reconciliation from pro forma to GAAP results:⁽¹⁾
Deduct: Increase in MSR fair value not recorded due to lower of cost or fair value					(39	)		(10	)		(3	)		(5	)
Other					7			4			4			5
Total GAAP revenue from sales and servicing of home mortgage loans				$	418		$	710		$	114		$	775

⁽¹⁾	The results for the quarter ended March 31, 2006 reflect the adoption of the fair value measurement method of accounting for mortgage servicing rights ("MSR") permitted by Statement of Financial Accounting Standards No. 156, Accounting for Servicing of Financial Assets, an amendment to FASB Statement No. 140 ("Statement"). The Company has adopted the Statement effective January 1, 2006, and the retrospective application of this Statement to prior periods is not permitted. Management believes that due to the significant differences between the fair value measurement method and the amortization method of accounting for MSR, comparative information prepared on a similar basis of accounting is valuable to users of this financial information. The quarterly information for 2005 is a non-GAAP measure, and incorporates the following assumptions: 1) the fair value measurement method of accounting for MSR was in effect during 2005, 2) MSR are initially capitalized at fair value instead of allocated book value, and 3) the change in value of available-for-sale securities that were on the balance sheet at December 31, 2005 and designated as MSR risk management instruments are reported as revaluation gain (loss) on trading securities. A reconciliation of the non-GAAP amounts to the previously disclosed GAAP results has been provided.
⁽²⁾	Originated mortgage-backed securities represent available-for-sale securities retained on the balance sheet subsequent to the securitization of mortgage loans that were originated by the Company.
⁽³⁾	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).

WM - 13

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

	Quarter Ended

				Pro Forma Results Assuming Retrospective Application of SFAS No. 156
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2006			2005			2005			2005			2005
MSR Risk Management:
Change in MSR fair value due to valuation inputs or assumptions⁽¹⁾	$	413		$	805		$	1,193		$	(1,224	)	$	764
Gain (loss) on MSR risk management instruments:
Revaluation gain (loss) from derivatives		(522	)		(654	)		(810	)		1,047			(398	)
Revaluation gain (loss) from certain trading securities⁽¹⁾		(42	)		(165	)		(219	)		259			(109	)
Gain (loss) from certain available-for-sale securities		-			-			-			26			(44	)
Total gain (loss) on MSR risk management instruments		(564	)		(819	)		(1,029	)		1,332			(551	)
Total MSR risk management	$	(151	)	$	(14	)	$	164		$	108		$	213
Reconciliation from pro forma to GAAP results:⁽¹⁾
Revaluation gain (loss) from certain trading securities				$	(165	)	$	(219	)	$	259		$	(109	)
Add back: Decrease in value of trading securities assumed transferred
from the available-for-sale-securities portfolio					8			2			-			-
Total GAAP impact of MSR risk management trading securities				$	(157	)	$	(217	)	$	259		$	(109	)

⁽¹⁾

Refer to footnote (1) on table WM-12.

WM - 14

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2006			2005			2005			2005			2005
Rollforward of Mortgage Servicing Rights⁽¹⁾⁽²⁾
Balance, beginning of period	$	8,041		$	7,042		$	5,730		$	6,802		$	5,906
Home loans:
Additions		633			703			605			555			490
Changes in MSR fair value due to valuation inputs or
assumptions		413			-			-			-			-
Payments on loans and other		(409	)		-			-			-			-
Fair value basis adjustment⁽³⁾		57			-			-			-			-
Amortization		-			(482	)		(555	)		(564	)		(570	)
(Impairment) reversal		-			353			413			(250	)		427
Statement No. 133 MSR accounting valuation adjustments		-			419			849			(813	)		545
Net change in commercial real estate MSR		1			6			-			-			4
Balance, end of period	$	8,736		$	8,041		$	7,042		$	5,730		$	6,802
Rollforward of Valuation Allowance for MSR Impairment
Balance, beginning of period	$	914		$	1,312		$	1,746		$	1,513		$	1,981
Impairment (reversal)		-			(353	)		(413	)		250			(427	)
Other-than-temporary impairment		-			(43	)		(18	)		(11	)		(34	)
Other		(914	)⁽³⁾		(2	)		(3	)		(6	)		(7	)
Balance, end of period	$	-		$	914		$	1,312		$	1,746		$	1,513
Rollforward of Mortgage Loans Serviced for Others
Balance, beginning of period	$	563,208		$	547,578		$	543,324		$	542,797		$	540,392
Home loans:
Additions		35,026			51,642			43,418			36,174			34,533
Loan payments and other		(29,063	)		(37,245	)		(39,005	)		(35,689	)		(32,861	)
Net change in commercial real estate loans serviced for others		330			1,233			(159	)		42			733
Balance, end of period	$	569,501		$	563,208		$	547,578		$	543,324		$	542,797


		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
		2006		2005		2005		2005		2005
Total Servicing Portfolio
Mortgage loans serviced for others	$	569,501	$	563,208	$	547,578	$	543,324	$	542,797
Consumer loans serviced for others		11,822		11,014		-		-		-
Servicing on retained MBS without MSR		1,334		1,404		1,487		1,592		1,702
Servicing on owned loans		245,469		242,114		245,165		243,494		233,738
Subservicing portfolio		588		629		749		825		421
Total servicing portfolio	$	828,714	$	818,369	$	794,979	$	789,235	$	778,658


		March 31, 2006
		Unpaid	Weighted
		Principal	Average
		Balance	Servicing Fee
			(in basis points,
Mortgage Loans Serviced for Others by Loan Type			annualized)
Government	$	44,452	46
Agency		329,780	32
Private		164,518	44
Specialty home loans		30,751	50
Total mortgage loans serviced for others⁽⁴⁾	$	569,501	37

⁽¹⁾

Net of valuation allowance for all periods in 2005.

⁽²⁾

MSR as a percentage of loans serviced for others was 1.53%, 1.43%, 1.29%, 1.05% and 1.25% at March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005.

⁽³⁾

The Company adopted Statement No. 156, Accounting for Servicing of Financial Assets, on January 1, 2006, and elected to measure mortgage servicing assets at fair value. In accordance with this Statement, this new accounting principle has been applied prospectively to all new and existing mortgage servicing assets. Upon adoption of the fair value election, the valuation allowance was written off against the recorded value of the MSR, and the $57 million difference between the net carrying value and fair value was recorded as an increase to the basis of the Company's mortgage servicing rights.

⁽⁴⁾

Weighted average coupon rate (annualized) was 5.98% at March 31, 2006.

WM - 15

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
	2006			2005			2005			2005			2005
Allowance for Loan and Lease Losses
Balance, beginning of quarter	$	1,695		$	1,264		$	1,243		$	1,280		$	1,301
Allowance transferred to loans held for sale		(30	)		(241	)		-			(29	)		-
Allowance acquired through business combinations		-			592			-			-			-
Provision for loan and lease losses		82			217			52			31			16
		1,747			1,832			1,295			1,282			1,317
Loans charged off:												��
Loans secured by real estate:
Home		(11	)		(7	)		(9	)		(11	)		(11	)
Specialty mortgage finance⁽¹⁾		(20	)		(14	)		(15	)		(11	)		(10	)
Total home loans charged off		(31	)		(21	)		(24	)		(22	)		(21	)
Home equity loans and lines of credit		(5	)		(6	)		(10	)		(8	)		(5	)
Home construction⁽²⁾		-			-			-			(2	)		-
Multi-family		-			-			-			(1	)		-
Other real estate		(3	)		(1	)		(4	)		(2	)		(1	)
Total loans secured by real estate		(39	)		(28	)		(38	)		(35	)		(27	)
Consumer:
Credit card		(63	)		(138	)		-			-			-
Other		(7	)		(8	)		(8	)		(9	)		(13	)
Commercial business		(8	)		(16	)		(4	)		(8	)		(6	)
Total loans charged off		(117	)		(190	)		(50	)		(52	)		(46	)
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		1			7			1			1			-
Multi-family		-			-			2			-			-
Other real estate		1			-			8			3			1
Total loans secured by real estate		3			8			12			5			2
Consumer:
Credit card		4			40			-			-			-
Other		4			3			5			6			5
Commercial business		1			2			2			2			2
Total recoveries of loans previously charged off		12			53			19			13			9
Net charge-offs		(105	)		(137	)		(31	)		(39	)		(37	)
Balance, end of quarter	$	1,642		$	1,695		$	1,264		$	1,243		$	1,280

Net charge-offs (annualized) as a percentage
of average loans held in portfolio		0.18	%		0.24	%		0.06	%		0.07	%		0.07	%
Allowance as a percentage of total loans held in portfolio		0.68			0.74			0.58			0.58			0.60

⁽¹⁾

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

⁽²⁾

WM - 16

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

		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
		2006			2005			2005			2005			2005
Nonperforming Assets and Restructured Loans
Nonaccrual loans⁽¹⁾:
Loans secured by real estate:
Home	$	490		$	565		$	472		$	495		$	495
Specialty mortgage finance⁽²⁾		1,012			872			755			692			734
Total home nonaccrual loans		1,502			1,437			1,227			1,187			1,229
Home equity loans and lines of credit		92			88			68			67			74
Home construction⁽³⁾		15			10			10			11			25
Multi-family		21			25			18			15			15
Other real estate		69			70			69			116			159
Total nonaccrual loans secured by real estate		1,699			1,630			1,392			1,396			1,502
Consumer		6			8			8			8			8
Commercial business		26			48			65			59			59
Total nonaccrual loans held in portfolio		1,731			1,686			1,465			1,463			1,569
Foreclosed assets		309			276			256			256			264
Total nonperforming assets	$	2,040		$	1,962		$	1,721		$	1,719		$	1,833
As a percentage of total assets		0.59	%		0.57	%		0.52	%		0.53	%		0.57	%
Restructured loans	$	21		$	22		$	25		$	25		$	27
Total nonperforming assets and restructured loans	$	2,061		$	1,984		$	1,746		$	1,744		$	1,860

⁽¹⁾

Excludes nonaccrual loans held for sale of $201 million at March 31, 2006. Prior periods also reflect the exclusion of nonaccrual loans held for sale of $245 million, $152 million, $108 million and $112 million at December 31, 2005, September 30, 2005, June 30, 2005 and March 31, 2005. Loans held for sale are accounted for at lower of aggregate cost or fair value, with valuation changes included as adjustments to noninterest income.

⁽²⁾

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

⁽³⁾

Mr. Cooper (COOP) 8-KWashington Mutual Reports First Quarter 2006 Earnings Per Share of 98 Cents