Mr. Cooper (COOP) 8-K Washington Mutual Announces Third Consecutive $1 Billion Quarter

Exhibit 99.2

WM - 1

Washington Mutual, Inc.

Consolidated Statements of Income

(dollars in millions, except per share data)

(unaudited)

	Quarter Ended									Nine Months Ended
	Sept. 30, 2003			June 30, 2003			Sept. 30, 2002			Sept. 30, 2003			Sept. 30, 2002
Interest Income
Loans held for sale	$	619		$	626		$	388		$	1,834		$	1,192
Loans held in portfolio		1,997			2,050			2,287			6,152			7,033
Available-for-sale securities		402			469			652			1,388			2,411
Other interest and dividend income		65			72			86			218			245
Total interest income		3,083			3,217			3,413			9,592			10,881
Interest Expense
Deposits		538			548			679			1,674			1,996
Borrowings		591			644			815			1,923			2,470
Total interest expense		1,129			1,192			1,494			3,597			4,466
Net interest income		1,954			2,025			1,919			5,995			6,415
Provision for loan and lease losses		113			118			135			356			470
Net interest income after provision for loan and lease losses		1,841			1,907			1,784			5,639			5,945
Noninterest Income
Home loan mortgage banking income (expense):
Loan servicing fees		542			593			508			1,748			1,609
Amortization of mortgage servicing rights		(665	)		(1,032	)		(713	)		(2,665	)		(1,696	)
Mortgage servicing rights recovery (impairment)		368			(309	)		(1,849	)		96			(2,911	)
Revaluation gain (loss) from derivatives		(172	)		598			1,694			643			2,535
Net settlement income from certain interest-rate swaps		130			84			116			354			224
Gain (loss) from mortgage loans		(271	)		622			418			939			889
Other home loan mortgage banking income, net		292			149			105			538			260
Total home loan mortgage banking income		224			705			279			1,653			910
Depositor and other retail banking fees		471			454			426			1,346			1,185
Securities fees and commissions		103			100			92			291			272
Insurance income		50			53			46			155			132
Portfolio loan related income		116			111			85			344			226
Gain from other available-for-sale securities		557			137			356			689			195
Gain (loss) on extinguishment of securities sold under agreements to repurchase		7			(49	)		98			(129	)		293
Other income		125			118			(2	)		339			183
Total noninterest income		1,653			1,629			1,380			4,688			3,396
Noninterest Expense
Compensation and benefits		860			867			719			2,497			2,141
Occupancy and equipment		356			375			289			1,035			859
Telecommunications and outsourced information services		153			143			136			440			409
Depositor and other retail banking losses		50			50			55			151			153
Amortization of other intangible assets		15			15			17			46			50
Advertising and promotion		55			83			75			201			188
Professional fees		71			68			55			195			161
Other expense		304			317			270			925			763
Total noninterest expense		1,864			1,918			1,616			5,490			4,724
Income before income taxes		1,630			1,618			1,548			4,837			4,617
Income taxes		602			598			567			1,786			1,690
Net Income	$	1,028		$	1,020		$	981		$	3,051		$	2,927
Net Income Attributable to Common Stock	$	1,028		$	1,020		$	980		$	3,051		$	2,922
Net income per common share:
Basic	$	1.14		$	1.12		$	1.04		$	3.35		$	3.08
Diluted		1.12			1.10			1.02			3.29			3.02
Dividends declared per common share		0.40			0.30			0.27			0.99			0.78
Basic weighted average number of common shares outstanding (in thousands)		899,579			910,921			947,293			910,449			949,868
Diluted weighted average number of common shares outstanding (in thousands)		918,372			929,386			963,422			927,470			966,938

WM - 2

Washington Mutual, Inc.

Consolidated Statements of Financial Condition

(dollars in millions, except per share data)

(unaudited)

	Sept. 30, 2003			June 30, 2003			Dec. 31, 2002
Assets
Cash and cash equivalents	$	5,811		$	7,388		$	7,208
Federal funds sold and securities purchased under resale agreements		12			2,085			2,015
Available-for-sale securities, total amortized cost of $36,916, $43,306 and $42,592:
Mortgage-backed securities		14,352			24,875			28,375
Investment securities		22,831			20,292			15,597
Loans held for sale		31,339			40,631			33,996
Loans held in portfolio		164,499			153,866			147,528
Allowance for loan and lease losses		(1,699	)		(1,680	)		(1,653	)
Total loans held in portfolio, net of allowance for loan and lease losses		162,800			152,186			145,875
Investment in Federal Home Loan Banks		3,429			3,596			3,703
Mortgage servicing rights		5,870			4,598			5,341
Goodwill		6,253			6,253			6,270
Other assets		34,021			21,299			19,918
Total assets	$	286,718		$	283,203		$	268,298
Liabilities
Deposits:
Noninterest-bearing deposits	$	39,197		$	46,505		$	37,515
Interest-bearing deposits		124,944			119,952			118,001
Total deposits		164,141			166,457			155,516
Federal funds purchased and commercial paper		4,140			3,579			1,247
Securities sold under agreements to repurchase		20,468			22,964			16,717
Advances from Federal Home Loan Banks		43,743			46,127			51,265
Other borrowings		14,424			14,700			15,264
Other liabilities		19,274			8,315			8,155
Total liabilities		266,190			262,142			248,164
Stockholders’ equity		20,528			21,061			20,134
Total liabilities and stockholders’ equity	$	286,718		$	283,203		$	268,298
Common shares outstanding at end of period (in thousands)(1)		913,854			924,238			944,047
Book value per common share(2)	$	22.87		$	23.22		$	21.74
Tangible book value per common share(2)		16.04			16.45			15.06
Full-time equivalent employees at end of period		59,975			57,516			52,459

⁽¹⁾ Includes 16,200,000 shares at September 30, 2003, 17,100,000 shares at June 30, 2003 and 18,000,000 shares at December 31, 2002, held in escrow pending resolution of the Company’s asserted right to the return of such shares.

⁽²⁾ Excludes 16,200,000 shares at September 30, 2003, 17,100,000 shares at June 30, 2003 and 18,000,000 shares at December 31, 2002, held in escrow pending resolution of the Company’s asserted right to the return of such shares.

WM - 3

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Nine Months Ended
	Sept. 30, 2003			Sept. 30, 2002
Stockholders’ Equity Rollforward
Balance, beginning of period	$	20,134		$	14,063
Net income		3,051			2,927
Other comprehensive (loss) income, net of tax		(594	)		844
Cash dividends declared on common stock		(898	)		(756	)
Cash dividends declared on redeemable preferred stock		–			(5	)
Common stock repurchased and retired		(1,430	)		(942	)
Common stock issued for acquisitions		–			3,672
Fair value of Dime stock options		–			90
Common stock issued to redeem preferred stock		–			102
Common stock issued		265			183
Balance, end of period	$	20,528		$	20,178

WM - 4

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions, except per share data)

(unaudited)

	Quarter Ended
	Sept. 30, 2003			June 30, 2003			Mar. 31, 2003			Dec. 31, 2002			Sept. 30, 2002
PROFITABILITY
Net interest income	$	1,954		$	2,025		$	2,017		$	1,926		$	1,919
Net interest margin		3.15	%		3.30	%		3.32	%		3.25	%		3.36	%
Noninterest income	$	1,653		$	1,629		$	1,406		$	1,394		$	1,380
Noninterest expense		1,864			1,918			1,709			1,658			1,616
Net income		1,028			1,020			1,003			969			981
Net income per common share:
Basic	$	1.14		$	1.12		$	1.09		$	1.05		$	1.04
Diluted		1.12			1.10			1.07			1.03			1.02
Dividends declared per common share	$	0.40		$	0.30		$	0.29		$	0.28		$	0.27
Return on average assets		1.42	%		1.44	%		1.43	%		1.42	%		1.50	%
Return on average common equity		19.82			19.25			19.44			18.34			18.79
Efficiency ratio(1)		51.69			52.49			49.91			49.94			48.99
ASSET QUALITY
Nonaccrual loans(2)	$	1,920		$	1,996		$	2,166		$	2,257		$	2,188
Foreclosed assets		304			317			334			336			309
Total nonperforming assets		2,224			2,313			2,500			2,593			2,497
Nonperforming assets/total assets		0.78	%		0.82	%		0.90	%		0.97	%		0.95	%
Restructured loans	$	118		$	89		$	99		$	98		$	112
Total nonperforming assets and restructured loans		2,342			2,402			2,599			2,691			2,609
Allowance for loan and lease losses		1,699			1,680			1,680			1,653			1,705
Allowance as a percentage of total loans held in portfolio		1.03	%		1.09	%		1.12	%		1.12	%		1.15	%
Provision for loan and lease losses	$	113		$	118		$	125		$	125		$	135
Net charge-offs		111			118			95			108			88
CAPITAL ADEQUACY
Stockholders’ equity/total assets		7.16	%		7.44	%		7.47	%		7.50	%		7.68	%
Tangible common equity(3)/total tangible assets(3)		5.29			5.28			5.29			5.29			5.27
Estimated total risk-based capital/risk-weighted assets(4)		11.51			11.72			11.73			11.57			11.16
SUPPLEMENTAL DATA
Average balance sheet:
Loans held for sale	$	46,956		$	46,727		$	42,327		$	37,322		$	25,740
Loans held in portfolio		156,577			151,489			148,382			149,173			146,160
Interest-earning assets		249,641			246,021			241,690			237,842			229,364
Total assets		290,300			284,118			280,850			273,729			261,170
Interest-bearing deposits		124,488			120,144			119,056			116,177			111,408
Noninterest-bearing deposits		49,457			43,536			38,851			32,375			24,065
Stockholders’ equity		20,742			21,193			20,633			21,121			20,872
Period-end balance sheet:
Loans held for sale		31,339			40,631			44,014			33,996			29,508
Loans held in portfolio, net of allowance for loan and lease losses		162,800			152,186			148,877			145,875			146,157
Interest-earning assets		236,462			245,345			242,451			231,214			230,167
Total assets		286,718			283,203			276,970			268,298			262,631
Interest-bearing deposits		124,944			119,952			119,394			118,001			112,969
Noninterest-bearing deposits		39,197			46,505			40,478			37,515			27,639
Stockholders’ equity		20,528			21,061			20,687			20,134			20,178

⁽¹⁾ The efficiency ratio is defined as noninterest expense, divided by total revenue (net interest income and noninterest income).

⁽²⁾ Excludes nonaccrual loans held for sale.

⁽³⁾ Excludes unrealized net gain/loss on available-for-sale securities and derivatives, goodwill and intangible assets but includes MSR.

⁽⁴⁾ Estimate of what the total risk-based capital ratio would be if Washington Mutual, Inc. was a bank holding company that complies with Federal Reserve Board capital requirements.

WM -5

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30, 2003						June 30, 2003						Sept. 30, 2002
	Balance		Rate		Interest Income/ Expense		Balance		Rate		Interest Income/ Expense		Balance		Rate		Interest Income/ Expense
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets:
Federal funds sold and securities purchased under resale agreements	$	1,350	2.16	%	$	7	$	3,448	1.29	%	$	11	$	3,707	1.74	%	$	17
Available-for-sale securities(1):
Mortgage-backed securities		21,174	4.51			239		24,087	5.22			314		24,882	5.53			344
Investment securities		17,788	3.65			163		14,969	4.15			155		24,472	5.02			308
Loans held for sale(2)		46,956	5.27			619		46,727	5.36			626		25,740	6.03			388
Loans held in portfolio(2):
Loans secured by real estate:
Home loans		84,460	4.56			963		83,426	4.95			1,033		84,276	5.85			1,232
Purchased specialty mortgage finance		10,777	5.30			143		10,475	5.50			144		9,141	6.28			144
Total home loans		95,237	4.64			1,106		93,901	5.01			1,177		93,417	5.89			1,376
Home construction loans:
Builder(3)		1,105	4.47			13		1,103	4.77			13		1,214	5.53			17
Custom(4)		977	6.90			17		927	7.48			17		891	8.15			18
Home equity loans and lines of credit:
Banking subsidiaries		22,209	4.82			267		19,238	5.13			246		14,170	5.97			211
Washington Mutual Finance		2,077	11.56			60		2,041	11.77			60		2,225	11.96			67
Multi-family		19,920	5.16			258		19,036	5.34			255		18,094	5.92			269
Other real estate		6,989	6.31			111		7,306	6.25			114		8,412	6.76			143
Total loans secured by real estate		148,514	4.93			1,832		143,552	5.25			1,882		138,423	6.07			2,101
Consumer:
Banking subsidiaries		1,191	8.46			25		1,253	8.93			28		2,119	9.53			51
Washington Mutual Finance		1,784	19.68			88		1,732	19.61			85		1,708	19.13			82
Commercial business		5,088	4.02			52		4,952	4.38			55		3,910	5.34			53
Total loans held in portfolio		156,577	5.09			1,997		151,489	5.41			2,050		146,160	6.25			2,287
Other		5,796	3.96			58		5,301	4.61			61		4,403	6.23			69
Total interest-earning assets		249,641	4.93			3,083		246,021	5.23			3,217		229,364	5.94			3,413
Noninterest-earning assets:
Mortgage servicing rights		6,250						4,754						5,933
Goodwill		6,253						6,253						6,231
Other		28,156						27,090						19,642
Total assets	$	290,300					$	284,118					$	261,170
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking	$	64,057	1.68			272	$	60,597	1.74			262	$	46,508	2.59			304
Savings accounts and money market deposit accounts		28,674	0.88			63		28,229	0.98			69		29,963	1.45			110
Time deposit accounts		31,757	2.53			203		31,318	2.77			217		34,937	3.01			265
Total interest-bearing deposits		124,488	1.72			538		120,144	1.83			548		111,408	2.42			679
Federal funds purchased and commercial paper		5,041	1.37			17		3,843	1.37			13		1,983	2.06			10
Securities sold under agreements to repurchase		21,399	2.19			120		20,040	2.66			134		26,814	3.06			207
Advances from Federal Home Loan Banks		45,334	2.59			300		51,916	2.56			334		56,926	3.01			431
Other		14,053	4.38			154		14,898	4.37			163		13,549	4.87			167
Total interest-bearing liabilities		210,315	2.12			1,129		210,841	2.26			1,192		210,680	2.81			1,494
Noninterest-bearing sources:
Noninterest-bearing deposits		49,457						43,536						24,065
Other liabilities		9,786						8,548						5,553
Stockholders’ equity		20,742						21,193						20,872
Total liabilities and stockholders’ equity	$	290,300					$	284,118					$	261,170
Net interest spread and net interest income			2.81		$	1,954			2.97		$	2,025			3.13		$	1,919
Impact of noninterest-bearing sources			0.34						0.33						0.23
Net interest margin			3.15						3.30						3.36

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

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

⁽³⁾ Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale.

⁽⁴⁾ Represents construction loans made directly to the intended occupant of a single-family residence.

WM -6

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Nine Months Ended
	Sept. 30, 2003						Sept. 30, 2002
	Balance		Rate		Interest Income/ Expense		Balance		Rate		Interest Income/ Expense
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets:
Federal funds sold and securities purchased under resale agreements	$	3,297	1.39	%	$	35	$	2,289	1.77	%	$	31
Available-for-sale securities(1):
Mortgage-backed securities		23,805	5.04			900		24,199	5.62			1,019
Investment securities		15,926	4.09			488		37,301	4.98			1,392
Loans held for sale(2)		45,353	5.39			1,834		25,059	6.34			1,192
Loans held in portfolio(2):
Loans secured by real estate:
Home loans		83,657	4.91			3,079		86,251	6.02			3,894
Purchased specialty mortgage finance		10,456	5.57			437		8,905	6.52			435
Total home loans		94,113	4.98			3,516		95,156	6.07			4,329
Home construction loans:
Builder(3)		1,088	4.75			39		1,386	5.93			62
Custom(4)		942	7.36			52		904	8.15			55
Home equity loans and lines of credit:
Banking subsidiaries		19,583	5.08			747		12,709	6.01			571
Washington Mutual Finance		2,026	11.79			179		2,146	12.02			193
Multi-family		19,149	5.38			773		17,689	6.08			808
Other real estate		7,344	6.30			348		8,415	6.84			432
Total loans secured by real estate		144,245	5.22			5,654		138,405	6.21			6,450
Consumer:
Banking subsidiaries		1,259	8.79			83		2,560	9.43			181
Washington Mutual Finance		1,749	19.54			256		1,713	18.77			241
Commercial business		4,926	4.28			159		4,103	5.19			161
Total loans held in portfolio		152,179	5.39			6,152		146,781	6.39			7,033
Other		5,253	4.64			183		4,624	6.17			214
Total interest-earning assets		245,813	5.20			9,592		240,253	6.04			10,881
Noninterest-earning assets:
Mortgage servicing rights		5,490						6,918
Goodwill		6,257						5,995
Other		27,553						17,539
Total assets	$	285,113					$	270,705
Liabilities
Interest-bearing liabilities:
Deposits:
Interest-bearing checking	$	60,980	1.78			810	$	35,873	2.65			711
Savings accounts and money market deposit accounts		28,265	0.98			207		32,488	1.53			372
Time deposit accounts		31,976	2.74			657		38,628	3.16			913
Total interest-bearing deposits		121,221	1.85			1,674		106,989	2.49			1,996
Federal funds purchased and commercial paper		3,766	1.40			40		3,690	1.98			55
Securities sold under agreements to repurchase		20,607	2.52			394		38,595	2.21			638
Advances from Federal Home Loan Banks		50,993	2.62			1,012		60,595	2.79			1,265
Other		14,819	4.31			477		13,892	4.93			512
Total interest-bearing liabilities		211,406	2.26			3,597		223,761	2.66			4,466
Noninterest-bearing sources:
Noninterest-bearing deposits		44,015						23,044
Other liabilities		8,847						4,305
Stockholders’ equity		20,845						19,595
Total liabilities and stockholders’ equity	$	285,113					$	270,705
Net interest spread and net interest income			2.94		$	5,995			3.38		$	6,415
Impact of noninterest-bearing sources			0.32						0.17
Net interest margin			3.26						3.55

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

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

⁽³⁾ Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale.

⁽⁴⁾ Represents construction loans made directly to the intended occupant of a single-family residence.

WM - 7

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended						Nine Months Ended
	Sept. 30, 2003		June 30, 2003		Sept. 30, 2002		Sept. 30, 2003		Sept. 30, 2002
Loan Volume
Home loans:
Adjustable rate	$	28,225	$	24,847	$	25,928	$	76,503	$	58,629
Fixed rate		81,694		78,650		38,323		229,854		108,553
Specialty mortgage finance(1)		5,460		4,658		3,187		14,647		9,388
Total home loan volume		115,379		108,155		67,438		321,004		176,570
Home construction loans:
Builder(2)		787		606		567		1,870		1,452
Custom (3)		363		273		214		799		567
Home equity loans and lines of credit:
Banking subsidiaries		9,369		7,152		3,374		21,717		10,533
Washington Mutual Finance		285		287		244		860		835
Multi-family		2,598		2,022		1,870		6,418		3,976
Other real estate		439		595		636		1,314		1,305
Total loans secured by real estate		129,220		119,090		74,343		353,982		195,238
Consumer:
Banking subsidiaries		146		61		178		267		646
Washington Mutual Finance		528		462		435		1,413		1,310
Commercial business		692		709		527		1,867		1,755
Total loan volume	$	130,586	$	120,322	$	75,483	$	357,529	$	198,949
Loan Volume by Channel
Originated	$	82,670	$	73,711	$	52,020	$	217,670	$	135,225
Purchased/Correspondent		47,916		46,611		23,463		139,859		63,724
Total loan volume by channel	$	130,586	$	120,322	$	75,483	$	357,529	$	198,949
Refinancing Activity(4)
Home loan refinancing	$	83,564	$	81,511	$	45,334	$	237,523	$	112,583
Home construction loans		16		13		12		41		40
Home equity loans and lines of credit and consumer		2,030		1,203		584		3,926		1,912
Multi-family and other real estate		1,164		893		391		2,764		1,250
Total refinancing	$	86,774	$	83,620	$	46,321	$	244,254	$	115,785
Home Loan Volume by Index:
Short-term adjustable-rate loans(5):
Treasury indices	$	7,076	$	5,510	$	4,020	$	17,125	$	15,502
COFI		124		198		743		571		2,915
Other		336		223		333		777		545
Total short-term adjustable-rate loans		7,536		5,931		5,096		18,473		18,962
Medium-term adjustable-rate loans(6)		24,138		22,070		23,552		67,737		47,701
Fixed-rate loans		83,705		80,154		38,790		234,794		109,907
Total home loan volume	$	115,379	$	108,155	$	67,438	$	321,004	$	176,570

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

⁽²⁾ Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale.

⁽³⁾ Represents construction loans made directly to the intended occupant of a single-family residence.

⁽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 - 8

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from June 30, 2003 to Sept. 30, 2003			Sept. 30, 2003			June 30, 2003			Dec. 31, 2002
Loans by Property Type and Mortgage-Backed Securities (“MBS”)
Loans held in portfolio:
Loans secured by real estate:
Home loans	$	6,404		$	90,243		$	83,839		$	82,842
Purchased specialty mortgage finance		530			11,366			10,836			10,128
Total home loans		6,934			101,609			94,675			92,970
Home construction loans:
Builder(1)		(60	)		1,061			1,121			1,017
Custom(2)		69			1,032			963			932
Home equity loans and lines of credit:
Banking subsidiaries		3,555			24,060			20,505			16,168
Washington Mutual Finance		44			2,117			2,073			1,930
Multi-family		709			20,191			19,482			18,000
Other real estate		(190	)		6,932			7,122			7,986
Total loans secured by real estate		11,061			157,002			145,941			139,003
Consumer:
Banking subsidiaries		(86	)		1,121			1,207			1,663
Washington Mutual Finance		83			1,826			1,743			1,729
Commercial business		(425	)		4,550			4,975			5,133
Total loans held in portfolio		10,633			164,499			153,866			147,528
Less: allowance for loan and lease losses		(19	)		(1,699	)		(1,680	)		(1,653	)
Loans securitized and retained as MBS		(10,154	)		12,622			22,776			25,054
Total net loans held in portfolio and loans securitized and retained as MBS		460			175,422			174,962			170,929
Loans held for sale(3)		(9,292	)		31,339			40,631			33,996
Total net loans and loans securitized and retained as MBS		(8,832	)		206,761			215,593			204,925
Purchased MBS		(369	)		1,730			2,099			3,321
Total net loans and MBS	$	(9,201	)	$	208,491		$	217,692		$	208,246

⁽¹⁾ Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale.

⁽²⁾ Represents construction loans made directly to the intended occupant of a single-family residence.

⁽³⁾ Fair value of loans held for sale was $31.38 billion, $40.63 billion and $34.06 billion as of September 30, 2003, June 30, 2003 and December 31, 2002.

WM - 9

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Change from June 30, 2003 to Sept. 30, 2003			Sept. 30, 2003		Weighted Average Coupon Rate		June 30, 2003		Weighted Average Coupon Rate		Dec. 31, 2002		Weighted Average Coupon Rate
Loans Secured by Real Estate and MBS
Selected loans held in portfolio(1):
Short-term adjustable-rate loans(2):
COFI	$	(1,502	)	$	11,708	5.05	%	$	13,210	5.20	%	$	15,315	5.59	%
Treasury indices		3,537			39,947	3.99			36,410	4.26			31,015	4.78
Other		1,990			24,428	5.02			22,438	5.37			18,046	5.89
Total short-term adjustable-rate loans		4,025			76,083	4.48			72,058	4.78			64,376	5.28
Medium-term adjustable-rate loans(3)		5,556			49,983	5.65			44,427	6.01			43,715	6.55
Fixed-rate loans		1,661			21,911	7.69			20,250	8.08			20,977	8.22
Total loans held in portfolio secured by real estate(4)		11,242			147,977	5.35			136,735	5.67			129,068	6.19
Loans held for sale(5)		(9,293	)		31,234	5.71			40,527	5.57			33,901	6.05
Total loans secured by real estate		1,949			179,211	5.41			177,262	5.65			162,969	6.16
MBS(6):
Short-term adjustable-rate MBS(2):
COFI		(2,723	)		6,832	3.97			9,555	4.10			11,459	5.71
Treasury indices		(2,725	)		5,065	3.08			7,790	3.46			8,984	4.76
Other		(2,888	)		412	3.88			3,300	5.31			3,562	5.88
Total short-term adjustable-rate MBS		(8,336	)		12,309	3.60			20,645	4.05			24,005	5.38
Fixed-rate MBS		(2,488	)		1,450	6.85			3,938	6.08			3,707	6.98
Total MBS(7)		(10,824	)		13,759	3.94			24,583	4.38			27,712	5.59
Total loans secured by real estate and MBS	$	(8,875	)	$	192,970	5.31		$	201,845	5.49		$	190,681	6.08

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

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

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

⁽⁴⁾ At September 30, 2003, June 30, 2003 and December 31, 2002 the adjustable-rate loans with lifetime caps were $123.99 billion, $113.05 billion and $105.64 billion with a lifetime weighted average cap rate of 12.15%, 12.54% and 12.67%.

⁽⁵⁾ Excludes student loans.

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

⁽⁷⁾ At September 30, 2003, June 30, 2003 and December 31, 2002 the adjustable-rate MBS with lifetime caps were $11.82 billion, $20.57 billion and $23.84 billion with a lifetime weighted average cap rate of 11.27%, 11.35% and 11.34%.

	June 30, 2003 to Sept. 30, 2003			Dec. 31, 2002 to Sept. 30, 2003
Rollforward of Loans Held for Sale
Balance, beginning of period	$	40,631		$	33,996
Loans originated and purchased		97,938			275,220
Loans sold and other		(107,230	)		(277,877	)
Balance, end of period	$	31,339		$	31,339
Rollforward of Loans Held in Portfolio
Balance, beginning of period	$	153,866		$	147,528
Loans originated and purchased		32,648			82,309
Loan payments and other		(22,015	)		(65,338	)
Balance, end of period	$	164,499		$	164,499

WM - 10

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	June 30, 2003 to Sept. 30, 2003			Dec. 31, 2002 to Sept. 30, 2003
Rollforward of Mortgage Servicing Rights (“MSR”)(1)
Balance, beginning of period	$	4,598		$	5,341
Home loans:
Additions		1,587			3,502
Amortization		(665	)		(2,665	)
Recovery		368			96
Sales of MSR		(18	)		(406	)
Net change in commercial real estate MSR		–			2
Balance, end of period(2)	$	5,870		$	5,870
Rollforward of Valuation Allowance for MSR Impairment
Balance, beginning of period	$	3,444		$	4,521
Recovery		(368	)		(96	)
Other than temporary impairment		–			(1,115	)
Sales of MSR		(1	)		(235	)
Balance, end of period	$	3,075		$	3,075
Rollforward of Loans Serviced for Others
Balance, beginning of period	$	583,823		$	604,504
Home loans:
Additions		105,883			291,391
Sales of servicing		–			(2,960	)
Loan payments and other		(111,834	)		(315,257	)
Net change in commercial real estate loans serviced for others		(50	)		144
Balance, end of period	$	577,822		$	577,822
				Sept. 30, 2003 Balance
Total Servicing Portfolio
Loans serviced for others				$	577,822
Servicing on retained MBS					3,810
Servicing on owned loans					182,570
Subservicing portfolio					249
Total servicing portfolio				$	764,451

	Sept. 30, 2003
	Unpaid Principal Balance		Weighted Average Servicing Fee
			(in basis points, annualized)
Loans Serviced for Others by Loan Type
Government	$	68,680	51
Agency		382,639	31
Private		111,246	38
Specialty home loans		15,257	50
Total loans serviced for others(3)	$	577,822	35

⁽¹⁾ Net of valuation allowance.

⁽²⁾ At September 30, 2003, aggregate mortgage servicing rights fair value was $5.90 billion.

⁽³⁾ Weighted average coupon rate (annualized) was 6.18% at September 30, 2003.

WM - 11

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30, 2003			June 30, 2003			Mar. 31, 2003			Dec. 31, 2002			Sept. 30, 2002
Home Loan Mortgage Banking Income (Expense)
Loan servicing fees	$	542		$	593		$	613		$	628		$	508
Loan subservicing fees		1			7			5			14			34
Amortization of mortgage servicing rights		(665	)		(1,032	)		(969	)		(920	)		(713	)
Mortgage servicing rights recovery (impairment)		368			(309	)		37			(308	)		(1,849	)
Other, net		(221	)		(168	)		(137	)		(134	)		(97	)
Net home loan servicing income (expense)		25			(909	)		(451	)		(720	)		(2,117	)
Revaluation gain (loss) from derivatives:
Mortgage servicing rights risk management		(317	)		745			412			109			1,694
Loans held for sale risk management(1)		145			(147	)		(195	)		(128	)		–
Total revaluation gain (loss) from derivatives		(172	)		598			217			(19	)		1,694
Net settlement income from certain interest-rate swaps		130			84			140			158			116
Gain (loss) from mortgage loans(1)		(271	)		622			587			392			418
GNMA pool buy-out income		146			219			154			119			109
Loan related income		108			91			75			76			60
Gain (loss) from sale of originated mortgage-backed securities		258			–			1			15			(1	)
Total home loan mortgage banking income		224			705			723			21			279
Impact of other mortgage servicing rights risk management instruments(2):
Gain from certain available-for-sale securities		176			140			–			407			388
Gain on extinguishment of securities sold under agreements to repurchase		–			–			–			–			136
Total home loan mortgage banking income, net of other mortgage servicing rights risk management instruments	$	400		$	845		$	723		$	428		$	803

	Nine Months Ended
	Sept. 30, 2003			Sept. 30, 2002
Home Loan Mortgage Banking Income (Expense)
Loan servicing fees	$	1,748		$	1,609
Loan subservicing fees		13			87
Amortization of mortgage servicing rights		(2,665	)		(1,696	)
Mortgage servicing rights recovery (impairment)		96			(2,911	)
Other, net		(528	)		(238	)
Net home loan servicing income (expense)		(1,336	)		(3,149	)
Revaluation gain (loss) from derivatives:
Mortgage servicing rights risk management		840			2,535
Loans held for sale risk management(1)		(197	)		–
Total revaluation gain (loss) from derivatives		643			2,535
Net settlement income from certain interest-rate swaps		354			224
Gain (loss) from mortgage loans(1)		939			889
GNMA pool buy-out income		519			200
Loan related income		274			192
Gain from sale of originated mortgage-backed securities		260			19
Total home loan mortgage banking income		1,653			910
Impact of other mortgage servicing rights risk management instruments(2):
Gain from certain available-for-sale securities		316			388
Gain on extinguishment of securities sold under agreements to repurchase		–			257
Total home loan mortgage banking income, net of other mortgage servicing rights risk management instruments	$	1,969		$	1,555

⁽¹⁾ The Company’s policy of recording the fair value of rate lock commitments on its Consolidated Statements of Financial Condition has the effect of recognizing gain (loss) from mortgage loans before the loans are sold. Gain (loss) from mortgage loans net of revaluation gain (loss) from derivatives used for loans held for sale risk management was a loss of $126 million for the quarter ended September 30, 2003, compared with a net gain of $475 million for the quarter ended June 30, 2003.

⁽²⁾ Includes only instruments designated for mortgage servicing rights risk management and does not include the effects of instruments held for asset/liability risk management.

WM - 12

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Sept. 30, 2003		June 30, 2003		Dec. 31, 2002
Deposits
Deposits:
Checking accounts:
Noninterest bearing	$	35,649	$	43,702	$	35,730
Interest bearing		66,353		61,440		56,132
Total checking accounts		102,002		105,142		91,862
Savings and money market deposit accounts		31,348		30,650		29,886
Time deposit accounts(1)		30,791		30,665		33,768
Total deposits(2)	$	164,141	$	166,457	$	155,516

⁽¹⁾ Weighted average remaining maturity of time deposits was 15 months at September 30, 2003, 16 months at June 30, 2003 and 15 months at December 31, 2002.

⁽²⁾ Includes custodial and escrow deposits of $24.92 billion at September 30, 2003, $32.95 billion at June 30, 2003 and $25.90 billion at December 31, 2002.

	Sept. 30, 2003	June 30, 2003	Mar. 31, 2003	Dec. 31, 2002	Sept. 30, 2002
Retail Checking Accounts(1)
Accounts, beginning of period	7,637,914	7,461,320	7,258,555	7,091,568	6,817,543
Net accounts opened during the quarter	245,032	176,594	202,765	166,987	274,025
Accounts, end of period	7,882,946	7,637,914	7,461,320	7,258,555	7,091,568

⁽¹⁾ Retail checking accounts exclude commercial business accounts. The information provided refers to the number of accounts, not dollar amounts.

	Sept. 30, 2003	June 30, 2003	Mar. 31, 2003	Dec. 31, 2002	Sept. 30, 2002
Retail Banking Stores
Stores, beginning of period	1,602	1,556	1,526	1,462	1,435
Net stores opened during the quarter	75	46	30	64	27
Stores, end of period	1,677	1,602	1,556	1,526	1,462

WM - 13

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Quarter Ended
	Sept. 30, 2003			June 30, 2003			Mar. 31, 2003			Dec. 31, 2002			Sept. 30, 2002
Allowance for Loan and Lease Losses
Balance, beginning of quarter	$	1,680		$	1,680		$	1,653		$	1,705		$	1,665
Allowance transferred to loans held for sale		–			–			(3	)		(17	)		(7	)
Allowance for certain loan commitments		17			–			–			(52	)		–
Provision for loan and lease losses		113			118			125			125			135
		1,810			1,798			1,775			1,761			1,793
Loans charged off:
Loans secured by real estate:
Home loans		(22	)		(9	)		(15	)		(23	)		(9	)
Purchased specialty mortgage finance		(9	)		(9	)		(10	)		(7	)		(9	)
Total home loan charge-offs		(31	)		(18	)		(25	)		(30	)		(18	)
Home construction loans - builder		(1	)		–			–			–			–
Home equity loans and lines of credit:
Banking subsidiaries		(4	)		(4	)		(4	)		(9	)		(3	)
Washington Mutual Finance		(1	)		(1	)		(3	)		(4	)		(2	)
Multi-family		(4	)		–			–			–			(1	)
Other real estate		(16	)		(21	)		(10	)		(5	)		(11	)
Total loans secured by real estate		(57	)		(44	)		(42	)		(48	)		(35	)
Consumer:
Banking subsidiaries		(20	)		(18	)		(17	)		(16	)		(15	)
Washington Mutual Finance		(43	)		(42	)		(40	)		(43	)		(42	)
Commercial business		(19	)		(31	)		(14	)		(20	)		(17	)
Total loans charged off		(139	)		(135	)		(113	)		(127	)		(109	)
Recoveries of loans previously charged off:
Loans secured by real estate:
Home loans		7			2			–			–			2
Purchased specialty mortgage finance		1			1			1			–			–
Total home loan recoveries		8			3			1			–			2
Multi-family		–			–			–			–			1
Other real estate		6			2			4			5			6
Total loans secured by real estate		14			5			5			5			9
Consumer:
Banking subsidiaries		5			3			3			5			3
Washington Mutual Finance		7			6			6			4			5
Commercial business		2			3			4			5			4
Total recoveries of loans previously charged off		28			17			18			19			21
Net charge-offs		(111	)		(118	)		(95	)		(108	)		(88	)
Balance, end of quarter	$	1,699		$	1,680		$	1,680		$	1,653		$	1,705
Net charge-offs (annualized) as a percentage of average loans held in portfolio		0.28	%		0.31	%		0.26	%		0.29	%		0.24	%
Allowance as a percentage of total loans held in portfolio		1.03			1.09			1.12			1.12			1.15

WM - 14

Washington Mutual, Inc.

Selected Financial Information

(dollars in millions)

(unaudited)

	Sept. 30, 2003			June 30, 2003			Mar. 31, 2003			Dec. 31, 2002			Sept. 30, 2002
Nonperforming Assets and Restructured Loans
Nonaccrual loans(1):
Home loans	$	760		$	804		$	954		$	1,068		$	1,117
Purchased specialty mortgage finance		553			483			479			438			358
Total home loan nonaccrual loans		1,313			1,287			1,433			1,506			1,475
Home construction loans:
Builder(2)		31			31			38			42			48
Custom(3)		9			9			9			7			6
Home equity loans and lines of credit:
Banking subsidiaries		45			49			44			36			35
Washington Mutual Finance		43			41			41			37			35
Multi-family		39			54			49			50			58
Other real estate		309			369			402			413			356
Total nonaccrual loans secured by real estate		1,789			1,840			2,016			2,091			2,013
Consumer:
Banking subsidiaries		8			13			10			18			13
Washington Mutual Finance		67			64			67			69			76
Commercial business		56			79			73			79			86
Total nonaccrual loans held in portfolio		1,920			1,996			2,166			2,257			2,188
Foreclosed assets		304			317			334			336			309
Total nonperforming assets	$	2,224		$	2,313		$	2,500		$	2,593		$	2,497
As a percentage of total assets		0.78	%		0.82	%		0.90	%		0.97	%		0.95	%
Restructured loans	$	118		$	89		$	99		$	98		$	112
Total nonperforming assets and restructured loans	$	2,342		$	2,402		$	2,599		$	2,691		$	2,609

⁽¹⁾ Excludes nonaccrual loans held for sale of $67 million at September 30, 2003. Prior periods also reflect the exclusion of nonaccrual loans held for saleof $73 million, $72 million, $119 million and $105 million at June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002. Loans held for sale are accounted for at lower of aggregate cost or market value, with valuation changes included as adjustments to gain from mortgage loans.

⁽²⁾ Represents loans to builders for the purpose of financing the acquisition, development and construction of single-family residences for sale.

⁽³⁾ Represents construction loans made directly to the intended occupant of a single-family residence.