THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

W Holding Company, Inc. (WHI)

5/1/2006 Proxy Information

The Company’s conflict of interest policy permits only loans with a first mortgage to be executed by the Company to directors and executive officers with respect to their primary residence. Home equity and second mortgage loans are not permitted. No officer, director or employee may have any other type of loan or indebtedness with the Company, except for a credit card, unless such loan or indebtedness is fully cash collateralized. All loans to directors and executive officers were made (i) in the ordinary course of business, (ii) were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and (iii) did not involve more than normal risk of collectibility or present other unfavorable features. As of December 31, 2005, all loans made by Westernbank to the directors or executive officers of the Company were in compliance with these requirements.

Legal Counsel

On July 12, 2005, José M. Biaggi, Esq., became the Chief Executive Officer and President and a director of Westernbank. Prior to his appointment, Mr. Biaggi practiced commercial law with the law firm of Biaggi & Biaggi, P.S.C. since 1993. Biaggi & Biaggi, P.S.C. provides legal services to the Company and the Bank on a regular basis. The Company and the Bank paid an aggregate of approximately $5.1 million in fees for services rendered by Biaggi & Biaggi, P.S.C. in fiscal year 2005.

4/15/2005 Proxy Information

The Company’s conflict of interest policy permits only loans with a first mortgage to be executed by the Company to directors and executive officers with respect to their primary residence. Home equity and second mortgage loans are not permitted. No officer, director or employee may have any other type of loan or indebtedness with the Company, except for a credit card, unless such loan or indebtedness is fully cash collateralized. All loans to directors and executive officers were made (i) in the ordinary course of business, (ii) were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, and (iii) did not involve more than normal risk of collectibility or present other unfavorable features. As of December 31, 2004, all loans made by Westernbank to the directors or executive officers of the Company were in compliance with these requirements.

Ms. Frontera is Mr. Stipes' aunt and Mr. Juan C. Frontera's mother.

4/15/2004 Proxy Information

The Company’s conflict of interest policy permits only loans with a first mortgage to be executed by the Company to directors and executive officers over their primary residence. Home equity second mortgage loans are not permitted. No officer, director or employee may have any other type of loan or indebtedness with the Company, except for a credit card, unless such loan or indebtedness is fully cash collateralized. All loans to directors and executive officers were made (i) in the ordinary course of business, (ii) were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and (iii) did not involve more than normal risk of collectibility or present other unfavorable features. As of December 31, 2003, all loans made by Westernbank to the directors or executive officers of the Company were in compliance with these requirements.