UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 5, 2007
Washington Mutual, Inc.
(Exact name of registrant as specified in its charter)
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Washington |
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1-14667 |
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91-1653725 |
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(State or other jurisdiction |
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(Commission |
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(IRS Employer |
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of incorporation) |
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File Number) |
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Identification No.) |
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1301 Second Avenue, Seattle, Washington |
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98101 |
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(Address of principal executive offices) |
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(Zip Code) |
(206) 461-2000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 7.01 |
Regulation FD Disclosure |
On October 5, 2007, Washington Mutual, Inc. issued a press release regarding the expected impact of the market and credit environments to its third quarter 2007 results of operations. The text of the press release is included as Exhibit 99.1 to this report. The information included in the press release text is considered to be “furnished” under the Securities Exchange Act of 1934.
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Item 9.01 |
Financial Statements and Exhibits |
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(d) |
The following exhibit is being furnished herewith: |
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Exhibit No. |
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Exhibit Description |
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99.1 |
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Press release text of Washington Mutual, Inc. dated October 5, 2007 |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
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WASHINGTON MUTUAL, INC. |
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Dated: October 5, 2007 |
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By: |
/s/ Fay L. Chapman |
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Fay L. Chapman |
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Senior Executive Vice President |
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Exhibit 99.1
For Immediate Release
October 5, 2007
Washington Mutual Q3 Net Income
Impacted by Market and Credit Environments
SEATTLE - Washington Mutual, Inc. (WM: NYSE) announced today that a weakening housing market and disruptions in the secondary market through the end of the third quarter will result in a decline in net income of approximately 75% from the prior year quarter, subject to the finalization of third-quarter 2007 results.
The expected decline in third quarter net income results principally from the following items that are reported on a pre-tax basis:
• The third-quarter loan loss provision will be approximately $975 million, which exceeds net charge-offs for the quarter by approximately $550 million. The provision reflects ongoing weakness in the housing market, primarily as it affects subprime and home equity loans, as well as growth in the company’s loan portfolio;
• Downward adjustments of approximately $150 million, related to approximately $17 billion in held-for-sale mortgage loans that were transferred to the company’s investment portfolio due to secondary market conditions;
• Net losses of approximately $150 million in the company’s trading securities portfolio, including market valuation adjustments on capital markets assets, retained interests on credit cards and other residual interests; and,
• Impairment losses of approximately $110 million on investment grade mortgage-backed securities in the company’s available for sale portfolio.
WaMu Chairman and CEO Kerry Killinger said, “While we’re disappointed with our anticipated third-quarter results, we look forward to an improved fourth quarter as we continue to see good operating performance in our Retail Banking, Card Services and Commercial Group businesses.”
Killinger added that the company continues to have the liquidity and capital necessary to grow the company’s businesses and support its current dividend, as it continues to execute its long-term strategic plans.
Washington Mutual is providing preliminary information about its third quarter results prior to its scheduled earnings announcement date in light of the impact of the very challenging market environment. No further details will be provided concerning the company’s third quarter performance until its regularly scheduled earnings release on Oct. 17, 2007. In the conference call following its earnings release on Oct. 17, the company will update its 2007 earnings drivers, including its updated expectations for loan loss provisioning levels in the fourth quarter of 2007.
About WaMu
WaMu, through its subsidiaries, is one of the nation’s leading consumer and small business banks. At June 30, 2007, WaMu and its subsidiaries had assets of $312.22 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate approximately 2,700 consumer and small business banking stores throughout the nation. WaMu’s press releases are available at http://newsroom.wamu.com.
Cautionary Statements
This document contains forward-looking statements, which are not historical facts and pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, expectations and intentions and other statements contained in this document that are not historical facts. When used in this presentation, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” or words of similar meaning, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.
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Media Contact:
Libby Hutchinson
206-500-2770
Libby.hutchinson@wamu.net
Investor Relations Contact:
Alan Magleby
206-500-4148 (Seattle)
212-702-6955 (New York)
alan.magleby@wamu.net