Mr. Cooper (COOP) 8-K WaMu Reports Third Quarter Earnings Per Share of $0.23

Exhibit 99.2

WM-1 

Washington Mutual, Inc. Selected Financial Information (dollars in millions, except per share data) (unaudited)
	Quarter Ended															Nine Months Ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2007			2007			2007			2006			2006			2007			2006
PROFITABILITY
Net income	$	210		$	830		$	784		$	1,058		$	748		$	1,825		$	2,501
Net interest income		2,014			2,034			2,081			1,998			1,947			6,131			6,123
Noninterest income		1,379			1,758			1,541			1,592			1,570			4,678			4,786
Noninterest expense		2,153			2,138			2,105			2,257			2,184			6,396			6,551
Diluted earnings per common share:
Income from continuing operations	$	0.23		$	0.92		$	0.86		$	0.66		$	0.76		$	2.02		$	2.51
Income from discontinued operations		-			-			-			0.44			0.01			-			0.03
Net income		0.23			0.92			0.86			1.10			0.77			2.02			2.54
Diluted weighted average number of common shares outstanding
(in thousands)		876,002			893,090			899,706			955,817			967,376			889,534			981,997
Net interest margin		2.86	%		2.90	%		2.79	%		2.58	%		2.53	%		2.85	%		2.64	%
Dividends declared per common share	$	0.56		$	0.55		$	0.54		$	0.53		$	0.52		$	1.65		$	1.53
Book value per common share (period end)(1)		27.21			27.27			27.30			28.21			27.65			27.21			27.65
Return on average assets		0.26	%		1.05	%		0.95	%		1.20	%		0.86	%		0.75	%		0.96	%
Return on average common equity		3.45			13.74			12.99			16.03			11.47			10.10			12.68
Efficiency ratio(2)(3)		63.42			56.38			58.13			62.87			62.09			59.18			60.05
ASSET QUALITY
Nonperforming assets(4) to total assets		1.65	%		1.29	%		1.02	%		0.80	%		0.69	%		1.65	%		0.69	%
Allowance as a percentage of loans held in portfolio		0.80			0.73			0.71			0.72			0.64			0.80			0.64
CREDIT PERFORMANCE
Provision for loan and lease losses	$	967		$	372		$	234		$	344		$	166		$	1,574		$	472
Net charge-offs		421			271			183			136			154			876			375
CAPITAL ADEQUACY
Capital Ratios for WMI:
Tangible equity to total tangible assets(5)		5.61	%		6.07	%		5.78	%		6.04	%		5.86	%		5.61	%		5.86	%
Total risk-based capital to total risk-weighted assets(6)		10.53			11.04			11.17			11.77			11.10			10.53			11.10
Tier 1 capital to average total assets(6)		5.86			6.09			5.87			6.35			6.28			5.86			6.28
Capital Ratios for WMB (well-capitalized minimum)(7):
Tier 1 capital to adjusted total assets (5.00%)		6.40			7.02			6.70			6.79			6.47			6.40			6.47
Adjusted tier 1 capital to total risk-weighted assets (6.00%)		7.47			8.14			7.88			8.28			8.12			7.47			8.12
Total risk-based capital to total risk-weighted assets (10.00%)		11.07			12.17			11.94			12.16			11.30			11.07			11.30
SUPPLEMENTAL DATA
Average balance sheet:
Total loans held in portfolio	$	227,348		$	216,004		$	222,617		$	239,265		$	242,165		$	222,007		$	239,037
Total interest-earning assets(2)		283,263			279,836			295,700			314,784			312,827			286,221			311,300
Total assets		320,475			316,004			331,905			353,056			349,542			322,753			347,310
Total deposits		198,649			206,765			210,764			214,801			208,912			205,348			200,131
Total stockholders' equity		23,994			24,436			24,407			26,700			26,147			24,278			26,308
Period-end balance sheet:
Total loans held in portfolio, net		235,243			213,434			215,481			223,330			240,215			235,243			240,215
Total assets		330,110			312,219			319,985			346,288			348,877			330,110			348,877
Total deposits		194,280			201,380			210,209			213,956			210,882			194,280			210,882
Total stockholders' equity		23,965			24,210			24,578			26,969			26,458			23,965			26,458
Common shares outstanding at the end of period (in thousands)(8)		868,802			875,722			888,111			944,479			945,098			868,802			945,098
Employees at end of period		49,748			49,989			49,693			49,824			51,056			49,748			51,056

(1)	Excludes six million shares held in escrow.
(2)	Based on continuing operations.
(3)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(4)	Excludes nonaccrual loans held for sale.
(5)	Excludes unrealized net gain/loss on available-for-sale securities and derivatives, goodwill and intangible assets (except MSR) and the impact from the adoption and application of FASB Statement No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans. Minority interests of $2.94 billion for September 30, 2007 and June 30, 2007, $2.45 billion for March 31, 2007 and December 31, 2006 and $1.96 billion for September 30, 2006 are included in the numerator.
(6)	The capital ratios are estimated as if Washington Mutual, Inc. were a bank holding company subject to Federal Reserve Board capital requirements.
(7)	Capital ratios for Washington Mutual Bank ("WMB") at September 30, 2007 are preliminary.
(8)	Includes six million shares held in escrow.

WM-2

Washington Mutual, Inc.

Consolidated Statements of Income

(dollars in millions, except per share data)

(unaudited)

	Quarter Ended
	Sept. 30			June 30,			Mar. 31,				Dec. 31,			Sept. 30,
	2007			2007			2007				2006			2006
Interest Income
Loans held for sale	$	248		$	421		$	562			$	515		$	435
Loans held in portfolio		3,992			3,786			3,900				4,053			4,012
Available-for-sale securities		392			351			332				392			379
Trading assets		108			108			113				102			140
Other interest and dividend income		116			82			101				148			139
Total interest income		4,856			4,748			5,008				5,210			5,105
Interest Expense
Deposits		1,650			1,723			1,772				1,843			1,739
Borrowings		1,192			991			1,155				1,369			1,419
Total interest expense		2,842			2,714			2,927				3,212			3,158
Net interest income		2,014			2,034			2,081				1,998			1,947
Provision for loan and lease losses		967			372			234				344			166
Net interest income after provision for loan and lease losses		1,047			1,662			1,847				1,654			1,781
Noninterest Income
Revenue from sales and servicing of home mortgage loans		161			300			125				164			118
Revenue from sales and servicing of consumer loans		418			403			443				372			355
Depositor and other retail banking fees		740			720			665				692			655
Credit card fees		209			183			172				182			165
Securities fees and commissions		67			70			60				54			52
Insurance income		29			29			29				30			31
Gain (loss) on trading assets		(153	)		(145	)		(108	)			(81	)		68
Gain (loss) from sales of other available-for-sale securities		(99	)		7			35				(1	)		(1	)
Other income		7			191			120				180			127
Total noninterest income		1,379			1,758			1,541				1,592			1,570
Noninterest Expense
Compensation and benefits		910			977			1,002				945			939
Occupancy and equipment		371			354			376				476			408
Telecommunications and outsourced information services		135			132			129				133			142
Depositor and other retail banking losses		71			58			61				64			57
Advertising and promotion		125			113			98				107			124
Professional fees		52			55			38				89			57
Other expense		489			449			401				443			457
Total noninterest expense		2,153			2,138			2,105				2,257			2,184
Minority interest expense		53			42			43				34			34
Income from continuing operations before income taxes		220			1,240			1,240				955			1,133
Income taxes		10			410			456				315			394
Income from continuing operations		210			830			784		��		640			739
Discontinued Operations(1)
Income from discontinued operations before income taxes		-			-			-				2			14
Gain on disposition of discontinued operations		-			-			-				667			-
Income taxes		-			-			-				251			5
Income from discontinued operations		-			-			-				418			9
Net Income	$	210		$	830		$	784			$	1,058		$	748
Net Income Available to Common Stockholders	$	202		$	822		$	777			$	1,050		$	748
Basic Earnings Per Common Share:
Income from continuing operations	$	0.24		$	0.95		$	0.89			$	0.68		$	0.78
Income from discontinued operations		-			-			-				0.45			0.01
Net Income		0.24			0.95			0.89				1.13			0.79
Diluted Earnings Per Common Share:
Income from continuing operations	$	0.23		$	0.92		$	0.86			$	0.66		$	0.76
Income from discontinued operations		-			-			-				0.44			0.01
Net Income		0.23			0.92			0.86				1.10			0.77
Dividends declared per common share		0.56			0.55			0.54				0.53			0.52
Basic weighted average number of common shares outstanding (in thousands)		857,005			868,968			874,816				931,484			941,898
Diluted weighted average number of common shares outstanding (in thousands)		876,002			893,090			899,706				955,817			967,376

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

WM-3

Washington Mutual, Inc.

Consolidated Statements of Income

(dollars in millions, except per share data)

(unaudited)

	Nine Months Ended
	Sept. 30,			Sept. 30,
	2007			2006
Interest Income
Loans held for sale	$	1,232		$	1,292
Loans held in portfolio		11,678			11,480
Available-for-sale securities		1,075			1,068
Trading assets		329			503
Other interest and dividend income		299			354
Total interest income		14,613			14,697
Interest Expense
Deposits		5,145			4,420
Borrowings		3,337			4,154
Total interest expense		8,482			8,574
Net interest income		6,131			6,123
Provision for loan and lease losses		1,574			472
Net interest income after provision for loan and lease losses		4,557			5,651
Noninterest Income
Revenue from sales and servicing of home mortgage loans		586			603
Revenue from sales and servicing of consumer loans		1,264			1,155
Depositor and other retail banking fees		2,125			1,875
Credit card fees		564			456
Securities fees and commissions		197			161
Insurance income		87			97
Loss on trading assets		(406	)		(74	)
Loss from sales of other available-for-sale securities		(58	)		(8	)
Other income		319			521
Total noninterest income		4,678			4,786
Noninterest Expense
Compensation and benefits		2,889			2,992
Occupancy and equipment		1,102			1,235
Telecommunications and outsourced information services		396			421
Depositor and other retail banking losses		190			165
Advertising and promotion		337			335
Professional fees		145			138
Other expense		1,337			1,265
Total noninterest expense		6,396			6,551
Minority interest expense		138			71
Income from continuing operations before income taxes		2,701			3,815
Income taxes		876			1,341
Income from continuing operations		1,825			2,474
Discontinued Operations(1)
Income from discontinued operations before income taxes		-			42
Income taxes		-			15
Income from discontinued operations		-			27
Net Income	$	1,825		$	2,501
Net Income Available to Common Stockholders	$	1,802		$	2,501
Basic Earnings Per Common Share:
Income from continuing operations	$	2.08		$	2.59
Income from discontinued operations		-			0.03
Net Income		2.08			2.62
Diluted Earnings Per Common Share:
Income from continuing operations	$	2.02		$	2.51
Income from discontinued operations		-			0.03
Net Income		2.02			2.54
Dividends declared per common share		1.65			1.53
Basic weighted average number of common shares outstanding (in thousands)		866,864			954,062
Diluted weighted average number of common shares outstanding (in thousands)		889,534			981,997

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

WM-4

Washington Mutual, Inc.

Consolidated Statements of Financial Condition

(dollars in millions)

(unaudited)

	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	2007			2007			2007			2006			2006
Assets
Cash and cash equivalents	$	11,370		$	4,167		$	4,047		$	6,948		$	6,649
Federal funds sold and securities purchased under agreements to resell		4,042			3,267			8,279			3,743			5,102
Trading assets		3,797			5,534			5,290			4,434			5,391
Available-for-sale securities, total amortized cost of $28,725, $28,934,
$22,921, $25,073 and $29,136:
Mortgage-backed securities		20,562			20,393			16,543			18,601			22,847
Investment securities		7,844			7,947			6,296			6,377			6,170
Total available-for-sale securities		28,406			28,340			22,839			24,978			29,017
Loans held for sale		7,586			19,327			26,874			44,970			23,720
Loans held in portfolio		237,132			214,994			217,021			224,960			241,765
Allowance for loan and lease losses		(1,889	)		(1,560	)		(1,540	)		(1,630	)		(1,550	)
Loans held in portfolio, net		235,243			213,434			215,481			223,330			240,215
Investment in Federal Home Loan Banks		2,808			1,596			2,230			2,705			3,013
Mortgage servicing rights		6,794			7,231			6,507			6,193			6,288
Goodwill		9,062			9,056			9,052			9,050			8,368
Other assets		21,002			20,267			19,386			19,937			21,114
Total assets	$	330,110		$	312,219		$	319,985		$	346,288		$	348,877
Liabilities
Deposits:
Noninterest-bearing deposits	$	31,341		$	33,557		$	34,367		$	33,386		$	34,667
Interest-bearing deposits		162,939			167,823			175,842			180,570			176,215
Total deposits		194,280			201,380			210,209			213,956			210,882
Federal funds purchased and commercial paper		2,482			3,390			563			4,778			5,282
Securities sold under agreements to repurchase		4,732			9,357			8,323			11,953			13,665
Advances from Federal Home Loan Banks		52,530			21,412			24,735			44,297			47,247
Other borrowings		40,887			40,313			39,430			32,852			33,883
Other liabilities		8,289			9,212			9,694			9,035			9,501
Minority interests		2,945			2,945			2,453			2,448			1,959
Total liabilities		306,145			288,009			295,407			319,319			322,419
Stockholders' equity
Preferred stock		492			492			492			492			492
Capital surplus - common stock		2,575			2,715			3,121			5,825			5,761
Accumulated other comprehensive loss		(390	)		(568	)		(268	)		(287	)		(180	)
Retained earnings		21,288			21,571			21,233			20,939			20,385
Total stockholders' equity		23,965			24,210			24,578			26,969			26,458
Total liabilities and stockholders' equity	$	330,110		$	312,219		$	319,985		$	346,288		$	348,877

WM-5

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	2007			2007			2007			2006			2006
Stockholders' Equity Rollforward
Balance, beginning of period	$	24,210		$	24,578		$	26,969		$	26,458		$	26,131
Net income		210			830			784			1,058			748
Cumulative effect from the adoption of new accounting pronouncements		-			-			(6	)(1)		(157	)(2)		-
Other comprehensive income (loss), net of income taxes		177			(300	)		19			50			419
Cash dividends declared on common stock		(485	)		(484	)		(476	)		(496	)		(497	)
Cash dividends declared on preferred stock		(8	)		(8	)		(7	)		(8	)		-
Common stock repurchased and retired(3)		(199	)		(500	)		(2,797	)		-			(930	)
Common stock issued		60			94			92			64			95
Preferred stock issued		-			-			-			-			492
Balance, end of period	$	23,965		$	24,210		$	24,578		$	26,969		$	26,458

(1)	As of January 1, 2007, the Company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes.
(2)	On December 31, 2006, the Company adopted Statement of Financial Accounting Standards ("Statement") No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans.  Statement No. 158 requires an entity to recognize the overfunded or underfunded status of its defined benefit postretirement plans as an asset or liability in its statement of financial condition and to recognize changes, through comprehensive income, in that funded status in the year in which the changes occur.  The cumulative effects, net of income taxes, resulted in a $274 million decrease to December 31, 2006 other assets and a $117 million decrease to December 31, 2006 other liabilities.
(3)	The Company repurchased 7.2 million, 13.5 million,  61.4 million, 1.7 million and 18.8 million shares of its common stock in the three months ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and September 30, 2006.  At September 30, 2007, the total remaining common stock repurchase authority was 47.5 million shares.

WM-6

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended															Nine Months Ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2007			2007			2007			2006			2006			2007			2006
RETAIL BANKING GROUP
Condensed income statement:
Net interest income	$	1,302		$	1,283		$	1,275		$	1,239		$	1,260		$	3,861		$	3,929
Provision for loan and lease losses		318			91			62			47			53			471			120
Noninterest income		833			819			751			774			738			2,404			2,140
Inter-segment revenue		14			21			22			17			17			57			47
Noninterest expense		1,155			1,137			1,074			1,100			1,079			3,367			3,268
Income from continuing operations before income taxes		676			895			912			883			883			2,484			2,728
Income taxes		223			336			342			337			337			901			1,043
Income from continuing operations		453			559			570			546			546			1,583			1,685
Income from discontinued operations		-			-			-			12			9			-			27
Net income	$	453		$	559		$	570		$	558		$	555		$	1,583		$	1,712
Performance and other data:
Efficiency ratio		53.75	%		53.56	%		52.43	%		54.22	%		53.55	%		53.26	%		53.44	%
Average loans	$	147,357		$	149,716		$	155,206		$	172,013		$	180,829		$	150,731		$	179,216
Average assets		157,196			159,518			165,047			182,240			191,288			160,559			189,587
Average deposits:
Checking deposits:
Noninterest bearing		22,860			23,107			22,331			21,873			21,440			22,768			21,072
Interest bearing		28,406			30,282			31,739			33,010			34,792			30,130			37,531
Total checking deposits		51,266			53,389			54,070			54,883			56,232			52,898			58,603
Savings and money market deposits		43,524			43,814			43,103			41,442			38,317			43,482			37,967
Time deposits		50,131			48,049			46,857			47,188			45,405			48,358			42,706
Average deposits		144,921			145,252			144,030			143,513			139,954			144,738			139,276
Loan volume		6,469			5,753			5,079			5,331			4,965			17,301			16,274
Employees at end of period		28,263			28,131			27,837			27,629			27,998			28,263			27,998
CARD SERVICES GROUP
Managed basis(1)
Condensed income statement:
Net interest income	$	689		$	660		$	653		$	664		$	633		$	2,004		$	1,866
Provision for loan and lease losses		611			523			388			555			345			1,523			1,092
Noninterest income		399			393			474			451			343			1,267			1,076
Inter-segment expense		5			5			4			2			2			14			4
Noninterest expense		320			300			325			316			294			946			884
Income before income taxes		152			225			410			242			335			788			962
Income taxes		50			84			154			92			128			288			368
Net income	$	102		$	141		$	256		$	150		$	207		$	500		$	594
Performance and other data:
Efficiency ratio		29.56	%		28.68	%		28.96	%		28.40	%		30.16	%		29.06	%		30.08	%
Average loans	$	25,718		$	24,234		$	23,604		$	22,875		$	21,706		$	24,527		$	20,762
Average assets		28,206			26,762			26,039			25,472			24,236			27,010			23,354
Employees at end of period		2,878			2,827			2,579			2,611			2,667			2,878			2,667
Securitization adjustments
Condensed income statement:
Net interest income	$	(456	)	$	(459	)	$	(414	)	$	(437	)	$	(411	)	$	(1,330	)	$	(1,249	)
Provision for loan and lease losses		(288	)		(294	)		(282	)		(280	)		(220	)		(865	)		(662	)
Noninterest income		168			165			132			157			191			465			587
Performance and other data:
Average loans		(14,488	)		(13,888	)		(12,507	)		(12,811	)		(12,169	)		(13,635	)		(11,947	)
Average assets		(12,841	)		(12,287	)		(10,961	)		(11,035	)		(10,330	)		(12,036	)		(10,101	)
Adjusted basis
Condensed income statement:
Net interest income	$	233		$	201		$	239		$	227		$	222		$	674		$	617
Provision for loan and lease losses		323			229			106			275			125			658			430
Noninterest income		567			558			606			608			534			1,732			1,663
Inter-segment expense		5			5			4			2			2			14			4
Noninterest expense		320			300			325			316			294			946			884
Income before income taxes		152			225			410			242			335			788			962
Income taxes		50			84			154			92			128			288			368
Net income	$	102		$	141		$	256		$	150		$	207		$	500		$	594
Performance and other data:
Average loans	$	11,230		$	10,346		$	11,097		$	10,064		$	9,537		$	10,892		$	8,815
Average assets		15,365			14,475			15,078			14,437			13,906			14,974			13,253

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

⁽¹⁾ The managed basis presentation treats securitized and sold credit card receivables as if they were still on the balance sheet. The Company uses this basis in assessing the overall performance of this operating segment. The managed basis presentation of the Card Services Group is derived by adjusting the GAAP financial information to add back securitized loan balances and the related interest, fee income and provision for credit losses.  Such adjustments are eliminated as securitization adjustments when reporting GAAP results.

WM-7

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended															Nine Months Ended
(This table is continued from "WM-6.")	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2007			2007			2007			2006			2006			2007			2006
COMMERCIAL GROUP
Condensed income statement:
Net interest income	$	193		$	195		$	200		$	189		$	159		$	588		$	488
Provision for loan and lease losses		12			2			(10	)		(69	)		(2	)		5			(12	)
Noninterest income		(34	)		62			14			40			25			41			54
Noninterest expense		67			74			74			72			60			214			184
Income before income taxes		80			181			150			226			126			410			370
Income taxes		26			68			56			86			48			150			141
Net income	$	54		$	113		$	94		$	140		$	78		$	260		$	229
Performance and other data:
Efficiency ratio		41.88	%		28.77	%		34.52	%		31.49	%		32.21	%		34.03	%		33.92	%
Average loans	$	38,333		$	38,789		$	38,641		$	37,552		$	32,414		$	38,586		$	31,774
Average assets		40,661			41,181			41,001			40,216			34,560			40,946			33,997
Average deposits		7,851			6,160			3,762			3,609			2,323			5,939			2,274
Loan volume		4,054			4,348			3,671			4,019			3,104			12,073			8,835
Employees at end of period		1,421			1,404			1,351			1,409			1,242			1,421			1,242
HOME LOANS GROUP
Condensed income statement:
Net interest income	$	183		$	215		$	245		$	273		$	276		$	644		$	904
Provision for loan and lease losses		323			101			49			47			84			474			141
Noninterest income		184			391			162			126			314			736			1,176
Inter-segment expense		9			16			18			15			15			43			43
Noninterest expense		554			548			521			534			528			1,622			1,765
Income (loss) before income taxes		(519	)		(59	)		(181	)		(197	)		(37	)		(759	)		131
Income taxes (benefit)		(171	)		(22	)		(68	)		(75	)		(14	)		(261	)		50
Net income (loss)	$	(348	)	$	(37	)	$	(113	)	$	(122	)	$	(23	)	$	(498	)	$	81
Performance and other data:
Efficiency ratio		154.63	%		92.82	%		133.90	%		138.93	%		92.00	%		121.30	%		86.65	%
Average loans	$	43,737		$	43,312		$	53,254		$	51,048		$	45,407		$	46,733		$	46,419
Average assets		61,068			60,314			71,367			71,503			70,563			64,212			73,199
Average deposits		13,745			17,506			16,767			19,788			20,659			15,995			19,120
Loan volume		26,434			35,857			34,022			37,532			41,241			96,312			134,037
Employees at end of period		12,167			12,666			12,952			12,941			13,857			12,167			13,857
CORPORATE SUPPORT/TREASURY AND OTHER
Condensed income statement:
Net interest income (expense)	$	(35	)	$	2		$	(15	)	$	(64	)	$	(107	)	$	(49	)	$	(210	)
Provision for loan and lease losses		(9	)		(51	)		27			44			(94	)		(34	)		(207	)
Noninterest income		(108	)		43			81			142			75			16			137
Noninterest expense		57			79			111			235			223			247			450
Minority interest expense		53			42			43			34			34			138			71
Loss from continuing operations before income taxes		(244	)		(25	)		(115	)		(235	)		(195	)		(384	)		(387	)
Income taxes (benefit)		(58	)		(40	)		(71	)		(103	)		(90	)		(170	)		(197	)
Loss from continuing operations		(186	)		15			(44	)		(132	)		(105	)		(214	)		(190	)
Income from discontinued operations		-			-			-			406			-			-			-
Net income (loss)	$	(186	)	$	15		$	(44	)	$	274		$	(105	)	$	(214	)	$	(190	)
Performance and other data:
Average loans	$	1,420		$	1,367		$	1,345		$	1,310		$	1,245		$	1,377		$	1,063
Average assets		47,570			41,817			40,891			46,233			40,825			43,450			38,865
Average deposits		32,132			37,847			46,205			47,891			45,976			38,676			39,461
Loan volume		113			72			107			144			58			292			163
Employees at end of period		5,019			4,961			4,974			5,234			5,292			5,019			5,292

(This table is continued on "WM-8.")

WM-8

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended															Nine Months Ended
(This table is continued from "WM-7.")	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2007			2007			2007			2006			2006			2007			2006
RECONCILING ADJUSTMENTS
Condensed income statement:
Net interest income(1)	$	138		$	138		$	137		$	134		$	137		$	413		$	395
Noninterest income (expense)(2)		(63	)		(115	)		(73	)		(98	)		(116	)		(251	)		(384	)
Income before income taxes		75			23			64			36			21			162			11
Income taxes (benefit)(3)		(60	)		(16	)		43			(22	)		(15	)		(32	)		(64	)
Net income	$	135		$	39		$	21		$	58		$	36		$	194		$	75
Performance and other data:
Average loans(4)	$	(1,385	)	$	(1,301	)	$	(1,479	)	$	(1,573	)	$	(1,600	)	$	(1,388	)	$	(1,591	)
Average assets(4)		(1,385	)		(1,301	)		(1,479	)		(1,573	)		(1,600	)		(1,388	)		(1,591	)
TOTAL CONSOLIDATED
Condensed income statement:
Net interest income	$	2,014		$	2,034		$	2,081		$	1,998		$	1,947		$	6,131		$	6,123
Provision for loan and lease losses		967			372			234			344			166			1,574			472
Noninterest income		1,379			1,758			1,541			1,592			1,570			4,678			4,786
Noninterest expense		2,153			2,138			2,105			2,257			2,184			6,396			6,551
Minority interest expense		53			42			43			34			34			138			71
Income from continuing operations before income taxes		220			1,240			1,240			955			1,133			2,701			3,815
Income taxes		10			410			456			315			394			876			1,341
Income from continuing operations		210			830			784			640			739			1,825			2,474
Income from discontinued operations		-			-			-			418			9			-			27
Net income	$	210		$	830		$	784		$	1,058		$	748		$	1,825		$	2,501
Performance and other data:
Efficiency ratio		63.42	%		56.38	%		58.13	%		62.87	%		62.09	%		59.18	%		60.05	%
Average loans	$	240,692		$	242,229		$	258,064		$	270,414		$	267,832		$	246,931		$	265,696
Average assets		320,475			316,004			331,905			353,056			349,542			322,753			347,310
Average deposits		198,649			206,765			210,764			214,801			208,912			205,348			200,131
Loan volume		37,070			46,030			42,879			47,026			49,368			125,978			159,309
Employees at end of period		49,748			49,989			49,693			49,824			51,056			49,748			51,056

(1)	Represents the difference between mortgage loan premium amortization recorded by the Retail Banking Group and the amount recognized in the Company's Consolidated Statements of Income.  For management reporting purposes, certain mortgage loans that are held in portfolio by the Retail Banking Group are treated as if they are purchased from the Home Loans Group.  Since the cost basis of these loans includes an assumed profit factor paid to the Home Loans Group, the amortization of loan premiums recorded by the Retail Banking Group reflects this assumed profit factor and must therefore be eliminated as a reconciling adjustment.
(2)	Represents the difference between gain from mortgage loans recorded by the Home Loans Group and gain from mortgage loans recognized in the Company's Consolidated Statements of Income.
(3)	Represents the tax effect of reconciling adjustments.
(4)	Represents the inter-segment offset for inter-segment loan premiums that the Retail Banking Group recognized upon transfer of portfolio loans from the Home Loans Group.

WM-9

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30, 2007							June 30, 2007							Sept. 30, 2006
						Interest							Interest							Interest
						Income/							Income/							Income/
	Balance		Rate			Expense		Balance		Rate			Expense		Balance		Rate			Expense
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets(1):
Federal funds sold and securities purchased under
agreements to resell	$	4,349		5.43	%	$	60	$	3,964		5.39	%	$	53	$	5,085		5.38	%	$	70
Trading assets		4,509		9.54			108		4,995		8.67			108		6,264		8.92			140
Available-for-sale securities(2)		28,536		5.49			392		26,559		5.28			351		28,398		5.33			379
Loans held for sale		13,344		7.41			248		26,225		6.43			421		25,667		6.75			435
Loans held in portfolio:
Loans secured by real estate:
Home loans(3)(4)		97,398		6.48			1,579		90,818		6.44			1,462		123,355		5.94			1,830
Home equity loans and lines  of credit(4)		57,469		7.56			1,094		54,431		7.59			1,031		52,646		7.53			998
Subprime mortgage channel(5)		20,405		6.63			338		20,152		6.80			343		20,207		6.26			316
Home construction(6)		2,056		6.90			35		2,043		6.72			34		2,059		6.41			33
Multi-family		30,058		6.63			498		29,419		6.63			488		27,100		6.42			435
Other real estate		7,418		6.99			131		6,843		7.03			120		5,696		6.76			98
Total loans secured by real estate		214,804		6.83			3,675		203,706		6.83			3,478		231,063		6.41			3,710
Consumer:
Credit card		10,332		10.28			268		10,101		10.44			263		9,058		11.39			260
Other		233		14.83			8		254		12.44			8		284		12.57			9
Commercial		1,979		8.25			41		1,943		7.73			37		1,760		7.33			33
Total loans held in portfolio		227,348		7.01			3,992		216,004		7.02			3,786		242,165		6.61			4,012
Other		5,177		4.33			56		2,089		5.47			29		5,248		5.21			69
Total interest-earning assets		283,263		6.84			4,856		279,836		6.79			4,748		312,827		6.51			5,105
Noninterest-earning assets:
Mortgage servicing rights		6,901							6,782							7,201
Goodwill		9,056							9,054							8,339
Other assets		21,255							20,332							21,175
Total assets	$	320,475						$	316,004						$	349,542
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	28,492		2.36			169	$	30,373		2.51			190	$	34,866		2.90			255
Savings and money market deposits		57,377		3.32			480		58,969		3.33			490		49,144		3.19			396
Time deposits		80,719		4.92			1,001		84,330		4.96			1,043		90,001		4.76			1,088
Total interest-bearing deposits		166,588		3.93			1,650		173,672		3.98			1,723		174,011		3.95			1,739
Federal funds purchased and commercial paper		2,991		5.40			41		2,169		5.36			29		7,382		5.31			99
Securities sold under agreements to repurchase		8,617		5.34			116		8,416		5.35			112		15,676		5.39			216
Advances from Federal Home Loan Banks		34,128		5.39			464		22,063		5.36			295		52,886		5.28			711
Other		40,567		5.60			571		39,886		5.57			555		27,815		5.59			393
Total interest-bearing liabilities		252,891		4.46			2,842		246,206		4.42			2,714		277,770		4.48			3,158
Noninterest-bearing sources:
Noninterest-bearing deposits		32,061							33,093							34,901
Other liabilities		8,584							9,610							8,765
Minority interests		2,945							2,659							1,959
Stockholders' equity		23,994							24,436							26,147
Total liabilities and stockholders' equity	$	320,475						$	316,004						$	349,542
Net interest spread and net interest income				2.38		$	2,014				2.37		$	2,034				2.03		$	1,947
Impact of noninterest-bearing sources				0.48							0.53							0.50
Net interest margin				2.86							2.90							2.53

(1)	Nonaccrual assets and related income, if any, are included in their respective categories.
(2)	The average balance and yield are based on average amortized cost balances.
(3)	Capitalized interest recognized in earnings that resulted from negative amortization within the Option ARM portfolio totaled $345 million, $344 million and $296 million for the three months ended September 30, 2007, June 30, 2007 and September 30, 2006.
(4)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(5)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.
(6)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

WM-10

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Nine Months Ended
	Sept. 30, 2007							Sept. 30, 2006
						Interest							Interest
						Income/							Income/
	Balance		Rate			Expense		Balance		Rate			Expense
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets(1):
Federal funds sold and securities purchased under
agreements to resell	$	4,083		5.41	%	$	165	$	4,422		5.04	%	$	169
Trading assets		5,029		8.73			329		8,831		7.60			503
Available-for-sale securities(2)		26,593		5.39			1,075		27,160		5.24			1,068
Loans held for sale		24,924		6.59			1,232		26,659		6.45			1,292
Loans held in portfolio:
Loans secured by real estate:
Home loans(3)(4)		95,194		6.46			4,611		122,232		5.76			5,282
Home equity loans and lines of credit(4)		54,988		7.57			3,114		52,068		7.26			2,830
Subprime mortgage channel(5)		20,389		6.70			1,025		19,939		6.14			918
Home construction(6)		2,053		6.72			103		2,062		6.41			99
Multi-family		29,768		6.61			1,476		26,388		6.19			1,226
Other real estate		7,011		7.02			368		5,482		6.85			284
Total loans secured by real estate		209,403		6.82			10,697		228,171		6.22			10,639
Consumer:
Credit card		10,443		10.78			842		8,442		11.16			704
Other		251		13.37			25		499		10.84			40
Commercial		1,910		7.98			114		1,925		6.67			97
Total loans held in portfolio		222,007		7.02			11,678		239,037		6.41			11,480
Other		3,585		5.01			134		5,191		4.74			185
Total interest-earning assets		286,221		6.81			14,613		311,300		6.30			14,697
Noninterest-earning assets:
Mortgage servicing rights		6,665							8,151
Goodwill		9,054							8,313
Other assets		20,813							19,546
Total assets	$	322,753						$	347,310
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking deposits	$	30,216		2.50			566	$	37,615		2.59			728
Savings and money market deposits		57,079		3.31			1,413		47,367		2.81			997
Time deposits		85,520		4.95			3,166		80,970		4.42			2,695
Total interest-bearing deposits		172,815		3.98			5,145		165,952		3.55			4,420
Federal funds purchased and commercial paper		2,999		5.43			122		7,537		4.92			279
Securities sold under agreements to repurchase		9,698		5.40			392		16,294		4.95			612
Advances from Federal Home Loan Banks		30,740		5.38			1,237		60,197		4.84			2,203
Other		37,782		5.61			1,586		26,901		5.23			1,060
Total interest-bearing liabilities		254,034		4.46			8,482		276,881		4.11			8,574
Noninterest-bearing sources:
Noninterest-bearing deposits		32,533							34,179
Other liabilities		9,222							8,445
Minority interests		2,686							1,497
Stockholders' equity		24,278							26,308
Total liabilities and stockholders' equity	$	322,753						$	347,310
Net interest spread and net interest income				2.35		$	6,131				2.19		$	6,123
Impact of noninterest-bearing sources				0.50							0.45
Net interest margin				2.85							2.64

(1)	Nonaccrual assets and related income, if any, are included in their respective categories.
(2)	The average balance and yield are based on average amortized cost balances.
(3)	Capitalized interest recognized in earnings that resulted from negative amortization within the Option ARM portfolio totaled $1.05 billion and $735 million for the nine months ended September 30, 2007 and September 30, 2006.
(4)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(5)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.
(6)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

WM-11

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from June 30, 2007			Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
	to Sept. 30, 2007			2007		2007		2007		2006		2006
Deposits
Retail deposits:
Checking deposits:
Noninterest bearing	$	(421	)	$	23,721	$	24,142	$	24,400	$	22,838	$	22,466
Interest bearing		(2,315	)		27,277		29,592		31,523		32,723		33,761
Total checking deposits		(2,736	)		50,998		53,734		55,923		55,561		56,227
Savings and money market deposits		(257	)		43,360		43,617		44,058		41,943		39,481
Time deposits(1)		2,600			50,740		48,140		47,262		46,821		47,361
Total retail deposits		(393	)		145,098		145,491		147,243		144,325		143,069
Commercial business and other deposits		(2,650	)		16,536		19,186		17,741		15,175		15,831
Brokered deposits:
Consumer		331			17,484		17,153		18,995		22,299		22,430
Institutional		(2,918	)		8,107		11,025		17,256		22,339		18,236
Custodial and escrow deposits(2)		(1,470	)		7,055		8,525		8,974		9,818		11,316
Total deposits	$	(7,100	)	$	194,280	$	201,380	$	210,209	$	213,956	$	210,882

(1)	Weighted average remaining maturity of time deposits was 7 months at September 30, 2007, 8 months at June 30, 2007, 9 months at March 31, 2007 and December 31, 2006 and 10 months at September 30, 2006.
(2)	Substantially all custodial and escrow deposits reside in noninterest-bearing checking accounts.

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
	2007		2007		2007		2006		2006
Retail Deposit Accounts (number of accounts)
Noninterest bearing checking		10,824,548		10,449,887		9,983,313		9,611,706		9,403,072
Interest bearing checking		1,334,902		1,399,203		1,459,534		1,503,365		1,532,215
Savings and money market		7,087,311		6,936,870		6,708,784		6,525,772		6,379,068
Total transaction accounts, end of period(1)		19,246,761		18,785,960		18,151,631		17,640,843		17,314,355
Net change in noninterest bearing checking accounts		374,661		466,574		371,607		208,634		339,614
Net change in checking accounts		310,360		406,243		327,776		179,784		307,433

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

	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	2007			2007			2007			2006			2006
Retail Banking Stores
Stores, beginning of period		2,235			2,228			2,225			2,225			2,201
Stores opened during the quarter		10			11			6			81	(1)		25
Stores closed during the quarter		(33	)		(4	)		(3	)		(81	)		(1	)
Stores, end of period		2,212			2,235			2,228			2,225			2,225

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

WM-12

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
	2007		2007		2007		2006		2006
Loan Volume
Home loans:
Short-term adjustable-rate loans(1):
Option ARMs	$	5,865	$	7,888	$	7,777	$	9,487	$	11,601
Other ARMs		111		22		36		13		42
Total short-term adjustable-rate loans		5,976		7,910		7,813		9,500		11,643
Medium-term adjustable-rate loans(2)		10,177		14,953		13,567		17,323		16,707
Fixed-rate loans		6,176		8,172		8,824		7,351		8,818
Total home loan volume		22,329		31,035		30,204		34,174		37,168
Home equity loans and lines of credit		9,835		9,880		8,319		8,098		8,498
Home construction(3)		483		426		298		298		269
Multi-family		2,856		3,067		2,663		2,977		2,186
Other real estate		1,285		1,246		1,080		1,182		983
Total loans secured by real estate(4)		36,788		45,654		42,564		46,729		49,104
Consumer(5)		6		20		26		23		26
Commercial		276		356		289		274		238
Total loan volume	$	37,070	$	46,030	$	42,879	$	47,026	$	49,368
Loan Volume by Channel
Retail	$	22,520	$	25,094	$	21,809	$	23,594	$	21,776
Wholesale		13,387		16,545		14,853		16,834		15,427
Purchased		1,163		4,391		6,217		6,398		11,560
Correspondent		-		-		-		200		605
Total loan volume by channel	$	37,070	$	46,030	$	42,879	$	47,026	$	49,368
Refinancing Activity(6)
Home loan refinancing	$	14,722	$	22,637	$	22,552	$	25,060	$	23,993
Home equity loans and lines of credit and consumer		143		157		550		599		689
Home construction loans		30		121		276		283		254
Multi-family and other real estate		1,225		1,378		1,131		2,240		1,398
Total refinancing	$	16,120	$	24,293	$	24,509	$	28,182	$	26,334

(1)	Short-term is defined as adjustable-rate loans that reprice within one year.
(2)	Medium-term is defined as adjustable-rate loans that reprice after one year.
(3)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(4)	Includes mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name of $483 million, $2.45 billion, $3.48 billion, $6.07 billion and $9.40 billion for the three months ended September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and September 30, 2006.
(5)	Excludes credit card loan volume.
(6)	Includes loan refinancing entered into by both new and pre-existing loan customers.

WM-13

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Nine Months Ended
	Sept. 30,		Sept. 30,
	2007		2006
Loan Volume
Home loans:
Short-term adjustable-rate loans(1):
Option ARMs	$	21,530	$	33,106
Other ARMs		170		3,372
Total short-term adjustable-rate loans		21,700		36,478
Medium-term adjustable-rate loans(2)		38,697		47,613
Fixed-rate loans		23,171		40,119
Total home loan volume		83,568		124,210
Home equity loans and lines of credit		28,034		24,055
Home construction(3)		1,206		1,183
Multi-family		8,585		6,450
Other real estate		3,611		2,486
Total loans secured by real estate(4)		125,004		158,384
Consumer(5)		52		111
Commercial		922		814
Total loan volume	$	125,978	$	159,309
Loan Volume by Channel
Retail	$	69,423	$	67,344
Wholesale		44,785		47,668
Purchased		11,770		30,911
Correspondent		-		13,386
Total loan volume by channel	$	125,978	$	159,309
Refinancing Activity(6)
Home loan refinancing	$	59,911	$	77,529
Home equity loans and lines of credit and consumer		851		1,066
Home construction loans		426		1,026
Multi-family and other real estate		3,734		4,173
Total refinancing	$	64,922	$	83,794

(1)	Short-term is defined as adjustable-rate loans that reprice within one year.
(2)	Medium-term is defined as adjustable-rate loans that reprice after one year.
(3)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(4)	Includes mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name of  $6.42 billion and $24.69 billion for the nine months ended September 30, 2007 and September 30, 2006.
(5)	Excludes credit card loan volume.
(6)	Includes loan refinancing entered into by both new and pre-existing loan customers.

WM-14

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from
	June 30, 2007			Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	to Sept. 30, 2007			2007			2007			2007			2006			2006
Loans Held in Portfolio
Loans secured by real estate:
Home:
Short-term adjustable-rate loans(1):
Option ARMs(2)	$	4,403		$	57,858		$	53,455		$	58,130		$	63,557		$	67,142
Other ARMs		(2,826	)		10,712			13,538			13,501			15,091			16,375
Total short-term adjustable-rate loans		1,577			68,570			66,993			71,631			78,648			83,517
Medium-term adjustable-rate loans(3)		13,115			42,762			29,647			29,924			29,774			47,740
Fixed-rate loans		2,308			11,813			9,505			9,506			9,782			9,928
Total home loans		17,000			123,145			106,145			111,061			118,204			141,185
Home equity loans and lines of credit		3,200			61,831			58,631			56,123			54,924			54,364
Home construction(4)		52			2,110			2,058			2,071			2,082			2,077
Multi-family		1,541			30,831			29,290			29,515			30,161			27,407
Other real estate		1,456			8,335			6,879			6,728			6,745			5,869
Total loans secured by real estate(5)		23,249			226,252			203,003			205,498			212,116			230,902
Consumer:
Credit card		(1,122	)		8,791			9,913			9,490			10,861			8,807
Other		(19	)		224			243			261			276			281
Commercial		30			1,865			1,835			1,772			1,707			1,775
Total loans held in portfolio(6)		22,138			237,132			214,994			217,021			224,960			241,765
Less: allowance for loan and lease losses		(329	)		(1,889	)		(1,560	)		(1,540	)		(1,630	)		(1,550	)
Total loans held in portfolio, net	$	21,809		$	235,243		$	213,434		$	215,481		$	223,330		$	240,215

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	The total amount by which the unpaid principal balance of Option ARM loans exceeded their original principal amount was $1.50 billion, $1.30 billion, $1.12 billion, $888 million and $681 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and September 30, 2006.
(3)	Medium-term adjustable-rate loans reprice after one year.
(4)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(5)	Includes subprime mortgage channel loans, comprising mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio as follows:

Subprime Mortgage Channel	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
	2007		2007		2007		2006		2006
Home loans	$	17,285	$	17,602	$	17,610	$	18,725	$	20,083
Home equity loans and lines of credit		2,711		2,855		2,749		2,042		1,522
Total	$	19,996	$	20,457	$	20,359	$	20,767	$	21,605

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

WM-15

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

						Weighted					Weighted					Weighted
	Change from					Average					Average					Average
	June 30, 2007			Sept. 30,		Coupon			June 30,		Coupon			Sept. 30,		Coupon
	to Sept. 30, 2007			2007		Rate			2007		Rate			2006		Rate
Selected Loans Secured by Real Estate
Home loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs	$	4,403		$	57,858		7.62	%	$	53,455		7.74	%	$	67,142		7.13	%
Other ARMs		(2,826	)		10,712		7.74			13,538		7.28			16,375		7.01
Total short-term adjustable-rate loans		1,577			68,570		7.64			66,993		7.65			83,517		7.11
Medium-term adjustable-rate loans(2)		13,115			42,762		6.30			29,647		5.99			47,740		5.72
Fixed-rate loans		2,308			11,813		6.74			9,505		6.71			9,928		6.59
Total home loans held in portfolio		17,000			123,145		7.09			106,145		7.10			141,185		6.60
Home equity loans and lines of credit:
Short-term (Prime-based or treasury-based)(1)		1,451			36,446		8.06			34,995		8.47			35,831		8.40
Fixed-rate loans		1,749			25,385		7.69			23,636		7.68			18,533		7.16
Total home equity loans and lines of credit		3,200			61,831		7.91			58,631		8.15			54,364		7.98
Multi-family loans held in portfolio:
Short-term adjustable-rate loans(1):
Option ARMs		(569	)		7,081		7.25			7,650		7.28			8,967		6.95
Other ARMs		(614	)		7,296		6.77			7,910		6.77			5,858		6.94
Total short-term adjustable-rate loans		(1,183	)		14,377		7.01			15,560		7.02			14,825		6.95
Medium-term adjustable-rate loans(2)		2,701			14,591		6.03			11,890		5.93			10,906		5.59
Fixed-rate loans		23			1,863		6.31			1,840		6.35			1,676		6.45
Total multi-family loans held in portfolio		1,541			30,831		6.50			29,290		6.53			27,407		6.38
Total selected loans held in portfolio secured by real estate(3)		21,741			215,807		7.24			194,066		7.33			222,956		6.90
Loans held for sale(4)		(12,772	)		6,227		6.36			18,999		6.39			23,387		6.64
Total selected loans secured by real estate	$	8,969		$	222,034		7.21		$	213,065		7.25		$	246,343		6.88

(1)	Short-term adjustable-rate loans reprice within one year.
(2)	Medium-term adjustable-rate loans reprice after one year.
(3)	At September 30, 2007, June 30, 2007 and September 30, 2006, adjustable-rate loans with lifetime caps were $175.21 billion, $158.24 billion and $190.36 billion with a lifetime weighted average cap rate of 12.44%, 12.96% and 12.13%.
(4)	Excludes credit card and student loans.

	June 30, 2007			Dec. 31, 2006
	to Sept. 30, 2007			to Sept. 30, 2007
Rollforward of Loans Held for Sale
Balance, beginning of period	$	19,327		$	44,970
Mortgage loans originated, purchased and transferred from held in portfolio		14,370			73,948
Mortgage loans transferred to held in portfolio		(17,004	)		(19,677	)
Mortgage loans sold and other(1)		(10,138	)		(92,768	)
Net change in consumer loans held for sale		1,031			1,113
Balance, end of period	$	7,586		$	7,586
Rollforward of Home Loans Held in Portfolio
Balance, beginning of period	$	106,145		$	118,204
Loans originated, purchased and transferred from held for sale		25,727			36,012
Loan payments, transferred to held for sale and other		(8,727	)		(31,071	)
Balance, end of period	$	123,145		$	123,145

⁽¹⁾ The unpaid principal balance ("UPB") of home loans sold was $9.03 billion and $84.58 billion for the three and nine months ended September 30, 2007.

WM-16

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
Detail of Revenue from Sales and Servicing of Home Mortgage Loans	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	2007			2007			2007			2006			2006
Gain (loss) from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments(1):
Gain (loss) from home mortgage loans and originated mortgage-backed securities	$	(169	)	$	66		$	149		$	64		$	206
Revaluation gain (loss) from derivatives economically hedging loans held for sale		(53	)		126			(54	)		91			(87	)
Gain (loss) from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments		(222	)		192			95			155			119
Home mortgage loan servicing revenue (expense):
Home mortgage loan servicing revenue(2)		516			526			514			497			525
Change in MSR fair value due to payments on loans and other		(351	)		(401	)		(356	)		(375	)		(410	)
Net mortgage loan servicing revenue		165			125			158			122			115
Change in MSR fair value due to valuation inputs or assumptions		(201	)		530			(96	)		(80	)		(469	)
Revaluation gain (loss) from derivatives economically hedging MSR		419			(547	)		(32	)		(33	)		353
Home mortgage loan servicing revenue (expense), net of  MSR valuation changes and derivative risk management instruments		383			108			30			9			(1	)
Total revenue from sales and servicing of home mortgage loans	$	161		$	300		$	125		$	164		$	118

	Nine Months Ended
Detail of Revenue from Sales and Servicing of Home Mortgage Loans	Sept. 30,			Sept. 30,
	2007			2006
Gain from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments(1):
Gain from home mortgage loans and originated mortgage-backed securities	$	45		$	563
Revaluation gain from derivatives economically hedging loans held for sale		20			17
Gain from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments		65			580
Home mortgage loan servicing revenue:
Home mortgage loan servicing revenue(2)		1,557			1,683
Change in MSR fair value due to payments on loans and other		(1,109	)		(1,279	)
Net mortgage loan servicing revenue		448			404
Change in MSR fair value due to valuation inputs or assumptions		233			379
Revaluation loss from derivatives economically hedging MSR		(160	)		(603	)
Adjustment to MSR fair value for MSR sale		-			(157	)
Home mortgage loan servicing revenue, net of  MSR valuation changes and derivative risk management instruments		521			23
Total revenue from sales and servicing of home mortgage loans	$	586		$	603

(1)	Originated mortgage-backed securities represent available-for-sale securities retained on the balance sheet subsequent to the securitization of mortgage loans that were originated by the Company.
(2)	Includes contractually specified servicing fees (net of guarantee fees paid to government housing-sponsored enterprises, where applicable), late charges and loan pool expenses (the shortfall of the scheduled interest required to be remitted to investors and that which is collected from borrowers upon payoff).

WM-17

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	2007			2007			2007			2006			2006
MSR Valuation and Risk Management:
Change in MSR fair value due to valuation inputs or assumptions	$	(201	)	$	530		$	(96	)	$	(80	)	$	(469	)
Gain (loss) on MSR risk management instruments:
Revaluation gain (loss) from derivatives		419			(547	)		(32	)		(33	)		353
Revaluation gain (loss) from certain trading securities		4			(4	)		4			(5	)		39
Loss from certain available-for-sale securities		-			-			-			-			(1	)
Total gain (loss) on MSR risk management instruments		423			(551	)		(28	)		(38	)		391
Total changes in MSR valuation and risk management	$	222		$	(21	)	$	(124	)	$	(118	)	$	(78	)

	Nine Months Ended
	Sept. 30,			Sept. 30,
	2007			2006
MSR Valuation and Risk Management(1):
Change in MSR fair value due to valuation inputs or assumptions	$	233		$	379
Loss on MSR risk management instruments:
Revaluation loss from derivatives		(160	)		(603	)
Revaluation gain (loss) from certain trading securities		4			(50	)
Loss from certain available-for-sale securities		-			(1	)
Total loss on MSR risk management instruments		(156	)		(654	)
Total changes in MSR valuation and risk management	$	77		$	(275	)

⁽¹⁾ Excludes $157 million downward adjustment to MSR fair value recognized in the nine months ended September 30, 2006.          

WM-18

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	2007			2007			2007			2006			2006
Rollforward of Mortgage Servicing Rights(1)
Balance, beginning of period	$	7,231		$	6,507		$	6,193		$	6,288		$	9,162
Home loans:
Additions		116			592			760			357			533
Change in MSR fair value due to payments on loans and other		(351	)		(401	)		(356	)		(375	)		(410	)
Change in MSR fair value due to valuation inputs or
assumptions		(201	)		530			(96	)		(80	)		(469	)
Sale of MSR		-			-			-			1			(2,527	)
Net change in commercial real estate MSR		(1	)		3			6			2			(1	)
Balance, end of period	$	6,794		$	7,231		$	6,507		$	6,193		$	6,288
Rollforward of Mortgage Loans Serviced for Others
Balance, beginning of period	$	474,867		$	467,782		$	444,696		$	439,208		$	570,352
Home loans:
Additions		8,700			29,949			44,550			25,833			29,899
Sale of servicing		-			-			-			-			(141,842	)
Loan payments and other		(20,716	)		(24,213	)		(22,469	)		(20,744	)		(19,288	)
Net change in commercial real estate loans		585			1,349			1,005			399			87
Balance, end of period	$	463,436		$	474,867		$	467,782		$	444,696		$	439,208

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
	2007		2007		2007		2006		2006
Total Servicing Portfolio
Mortgage loans serviced for others	$	463,436	$	474,867	$	467,782	$	444,696	$	439,208
Consumer loans serviced for others		16,078		14,745		13,645		12,415		13,112
Servicing on retained MBS without MSR		980		1,023		1,082		1,140		1,199
Servicing on owned loans		232,392		218,122		226,217		251,766		245,925
Subservicing portfolio		418		439		465		84,797		137,089
Total servicing portfolio	$	713,304	$	709,196	$	709,191	$	794,814	$	836,533

	September 30, 2007
	Unpaid		Weighted
	Principal		Average
	Balance		Servicing Fee
			(in basis points,
Mortgage Loans Serviced for Others by Loan Type			annualized)
Agency	$	247,878		31
Private		183,409		57
Subprime mortgage channel-home		32,149		51
Total mortgage loans serviced for others(2)	$	463,436		43

(1)	MSR as a percentage of mortgage loans serviced for others was 1.47%, 1.52%, 1.39%, 1.39% and 1.43% at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and September 30, 2006.
(2)	Weighted average coupon rate was 6.33% at September 30, 2007.

WM-19

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	2007			2007			2007			2006			2006
Allowance for Loan and Lease Losses
Balance, beginning of quarter	$	1,560		$	1,540		$	1,630		$	1,550		$	1,663
Allowance transferred to loans held for sale		(217	)		(81	)		(148	)		(158	)		(125	)
Allowance acquired through business combinations/other		-			-			7			30			-
Provision for loan and lease losses		967			372			234			344			166
		2,310			1,831			1,723			1,766			1,704
Loans charged off:
Loans secured by real estate:
Home loans(1)		(52	)		(21	)		(35	)		(16	)		(12	)
Home equity loans and lines of credit(1)		(104	)		(55	)		(29	)		(13	)		(8	)
Subprime mortgage channel(2)		(146	)		(103	)		(40	)		(52	)		(47	)
Home construction(3)		-			(1	)		-			(4	)		(3	)
Other real estate		(1	)		(1	)		-			(1	)		(2	)
Total loans secured by real estate		(303	)		(181	)		(104	)		(86	)		(72	)
Consumer:
Credit card		(120	)		(106	)		(96	)		(68	)		(98	)
Other		(2	)		(2	)		(3	)		(3	)		(3	)
Commercial		(20	)		(15	)		(9	)		(9	)		(6	)
Total loans charged off		(445	)		(304	)		(212	)		(166	)		(179	)
Recoveries of loans previously charged off:
Loans secured by real estate:
Home loans(1)		1			1			1			-			-
Home equity loans and lines of credit(1)		3			3			3			2			2
Subprime mortgage channel(2)		1			11			1			4			-
Other real estate		2			-			-			-			-
Total loans secured by real estate		7			15			5			6			2
Consumer:
Credit card		14			15			16			18			16
Other		-			-			6			3			4
Commercial		3			3			2			3			3
Total recoveries of loans previously charged off		24			33			29			30			25
Net charge-offs		(421	)		(271	)		(183	)		(136	)		(154	)
Balance, end of quarter	$	1,889		$	1,560		$	1,540		$	1,630		$	1,550
Net charge-offs (annualized) as a percentage
of average loans held in portfolio		0.74	%		0.50	%		0.33	%		0.23	%		0.26	%
Allowance as a percentage of loans held in portfolio		0.80			0.73			0.71			0.72			0.64

(1)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(2)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.
(3)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.

WM-20

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
	2007			2007			2007			2006			2006
Nonperforming Assets
Nonaccrual loans(1)(2):
Loans secured by real estate:
Home loans(3)	$	1,452		$	991		$	690		$	640		$	568
Home equity loans and lines of credit(3)		533			378			297			231			162
Subprime mortgage channel(4)		2,356			1,707			1,503			1,283			1,121
Home construction(5)		44			47			41			27			35
Multi-family		120			69			60			46			31
Other real estate		49			52			52			51			53
Total nonaccrual loans secured by real estate		4,554			3,244			2,643			2,278			1,970
Consumer		1			1			1			1			1
Commercial		22			30			28			16			16
Total nonaccrual loans held in portfolio		4,577			3,275			2,672			2,295			1,987
Foreclosed assets(6)		874			750			587			480			405
Total nonperforming assets(7)	$	5,451		$	4,025		$	3,259		$	2,775		$	2,392
Total nonperforming assets
as a percentage of total assets		1.65	%		1.29	%		1.02	%		0.80	%		0.69	%

(1)	Nonaccrual loans held for sale, which are excluded from the nonaccrual balances presented above, were $7 million, $171 million, $195 million, $185 million and $129 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and September 30, 2006.  Loans held for sale are accounted for at lower of aggregate cost or fair value, with valuation changes included as adjustments to noninterest income.
(2)	Credit card loans are exempt under regulatory rules from being classified as nonaccrual because they are charged off when they are determined to be uncollectible, or by the end of the month in which the account becomes 180 days past due.
(3)	Excludes home loans and home equity loans and lines of credit in the subprime mortgage channel.
(4)	Represents mortgage loans purchased from recognized subprime lenders and mortgage loans originated under the Long Beach Mortgage name and held in the investment portfolio.
(5)	Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale and construction loans made directly to the intended occupant of a single-family residence.
(6)	Foreclosed real estate securing Government National Mortgage Association (“GNMA”) loans of $46 million, $49 million, $72 million, $99 million and $129 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and September 30, 2006 have been excluded.  These assets are fully collectible as the corresponding GNMA loans are insured by the Federal Housing Administration (“FHA”) or guaranteed by the Department of Veterans Affairs (“VA”).
(7)	Excludes accruing restructured loans of $287 million, $285 million, $355 million, $330 million and $331 million at September 30, 2007, June 30, 2007, March 31, 2007, December 31, 2006 and September 30, 2006.