UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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): September 10, 2012

 

 

WMI Holdings Corp.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

Washington   001-14667   91-1653725

(State or Other Jurisdiction of

Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

1201 THIRD AVENUE, SUITE 3000

SEATTLE, WASHINGTON

  98101
(Address of Principal Executive Offices)   (Zip Code)

(206) 432-8887

(Registrant’s Telephone Number, Including Area Code)

Washington Mutual, Inc.

1301 Second Ave., Seattle, WA 98101

(Former Name or Former Address, if Changed Since Last Report)

 

 

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:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure.

On March 19, 2012, WMI Holdings Corp. (formerly known as Washington Mutual, Inc. (the “ Company ”)) issued $110 million aggregate principal amount of its 13% Senior First Lien Notes due 2030 (the “ First Lien Notes ”) under an indenture, dated as of March 19, 2012 (the “ First Lien Indenture ”), between the Company and Wilmington Trust, National Association, as Trustee. Additionally, the Company issued $20 million aggregate principal amount of its 13% Senior Second Lien Notes due 2030 (the “ Second Lien Notes ” and, together with the First Lien Notes, the “ Runoff Notes ”) under an indenture, dated as of March 19, 2012 (the “ Second Lien Indenture ” and, together with the First Lien Indenture, the “ Indentures ”), between the Company and Law Debenture Trust Company of New York, as Trustee. Under the Indentures, the Company is required to provide, to the holders of the Runoff Notes, unaudited monthly financial statements with respect to WM Mortgage Reinsurance Company, Inc. The unaudited financial statements for WM Mortgage Reinsurance Company, Inc., as of and for the period ended July 31, 2012, are attached to this Form 8-K as Exhibit 99.1.

Cautionary Statement Regarding Forward-Looking Statements

This Form 8-K and the exhibits contain certain statements that may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the Company’s current plans, expectations, estimates and management’s beliefs about the Company’s future performance. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates” or variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties that are difficult to predict and which may cause the Company’s actual results and performance to differ materially from those expressed or forecasted in any such forward-looking statements. These risks include, among other factors, changes in business, economic and market conditions, changes in government regulation, and changes in the competitive environment in which the Company operates. Some of the specific risks that are associated with the Company include, but are not limited to, the following: (i) the Company does not currently intend to have any of its securities listed on an exchange or a national market and, therefore, its common stock may have less liquidity than exchange-traded securities; (ii) transfers of the common stock of the Company are and will continue to be subject to certain transfer restrictions as set forth in the Articles and Bylaws; (iii) there is no guarantee that the Company will be able to successfully utilize the net operating losses that will be retained by the Company; and (iv) the Company may need to seek regulatory approval from the Hawaii State Insurance Commissioner from time to time with respect to certain aspects of WM Mortgage Reinsurance Company, Inc.’s operations. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements. However, readers should carefully review the statements set forth in the reports, which the Company has filed or will file from time to time with the Securities and Exchange Commission.

Section 9 – Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits:

 

99.1    Unaudited balance sheet and combining profit & loss statement of WM Mortgage Reinsurance Company, Inc. as of and for the period ended July 31, 2012.

 

2


SIGNATURES

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.

 

   

WMI HOLDINGS CORP.

(Registrant)

Date: September 10, 2012   By:  

/s/ Charles Edward Smith

    Name: Charles Edward Smith
    Title:   Interim Chief Executive Officer

 

3


EXHIBIT INDEX

 

99.1    Unaudited balance sheet and combining profit & loss statement of WM Mortgage Reinsurance Company, Inc. as of and for the period ended July 31, 2012.

 

4

Exhibit 99.1

WM MORTGAGE REINSURANCE COMPANY INC.

BALANCE SHEET

AS OF JULY 31, 2012

(UNAUDITED)

 

     MODIFIED GAAP
BALANCE SHEET
 

ASSETS

  

CASH & CASH EQUIVALENTS

     8,803,310   

INVESTMENTS

     11,732,819   

INVESTMENTS HELD IN TRUST

     304,270,671   

ACCRUED INTEREST

     1,899,891   

REINSURANCE PREMIUMS RECEIVABLE

     1,451,446   

OTHER RECEIVABLES

     0   

DEFERRED FEDERAL INCOME TAX

     0   

VALUATION ALLOWANCE FOR DEFERRED TAX

     (12,485,418

DEFERRED TAX ASSETS

     12,485,418   
  

 

 

 

TOTAL ASSETS

     328,158,137   
  

 

 

 

LIABILITIES AND STOCKHOLDER’S EQUITY

  

LIABILITIES:

  

ACCRUED EXPENSES

     131,277   

ACCRUED INVESTMENT EXPENSES

     54,110   

ACCRUED ADMINISTRATIVE FEES

     110,000   

ACCRUED CEDING FEES

     137,572   

PREMIUM TAX PAYABLE

     0   

FEDERAL INCOME TAX PAYABLE (RECEIVABLE)

     0   

ALLOWANCE FOR DOUBTFUL ACCOUNTS

     0   

CONTINGENT LIABILITY

     0   

INTEREST PAYABLE

     0   

UNEARNED PREMIUMS

     342,307   

LOSSES PAYABLE

     2,423,156   

LOSS RESERVES

     111,937,892   

IBNR

     5,362,627   

CONTINGENCY RESERVES

     50,109,127   
  

 

 

 

TOTAL LIABILITIES

     170,608,069   
  

 

 

 

STOCKHOLDER’S EQUITY:

  

CAPITAL STOCK

     1,000   

PAID-IN CAPITAL

     16,659,349   

ADDITIONAL PAID-IN CAPITAL

     53,219,568   

UNREALIZED GAIN/LOSS ON INVESTMENTS

     0   

CONTINGENCY RESERVES

     (50,109,127

DIVIDENDS PAID

     (250,000

RETAINED EARNINGS (ACCUMULATED DEFICIT)

     130,885,964   

NET INCOME (LOSS) - YEAR TO DATE

     7,143,314   
  

 

 

 

TOTAL STOCKHOLDER’S EQUITY

     157,550,068   
  

 

 

 

TOTAL LIABILITIES & STOCKHOLDER’S EQUITY

     328,158,137   
  

 

 

 


WM MORTGAGE REINSURANCE COMPANY INC.

UNAUDITED FINANCIAL STATEMENTS

COMBINING PROFIT & LOSS STATEMENT

FOR THE PERIOD ENDED JULY 31, 2012

 

     MONTH TO
DATE
    YEAR TO
DATE
 

UNDERWRITING INCOME:

    

ASSUMED PREMIUMS WRITTEN

     1,395,953        13,761,389   

CHANGE IN UNEARNED PREMIUMS

     15,163        113,630   
  

 

 

   

 

 

 

NET PREMIUMS EARNED

     1,411,116        13,875,018   
  

 

 

   

 

 

 

UNDERWRITING EXPENSES:

    

LOSSES PAID

     2,423,154        33,388,029   

PROVISION FOR LOSS RESERVES

     (2,961,519     (21,031,998

PROVISION FOR IBNR

     430,574        (686,765

CEDING COMMISSION

     137,572        1,640,421   

PREMIUM TAX EXPENSE

     0        0   
  

 

 

   

 

 

 

TOTAL UNDERWRITING EXPENSES

     29,781        13,309,687   
  

 

 

   

 

 

 

UNDERWRITING INCOME (LOSS)

     1,381,335        565,331   
  

 

 

   

 

 

 

GENERAL & ADMINISTRATIVE EXPENSES:

    

MANAGEMENT FEES

     16,777        133,599   

ACTUARY CONSULTING FEES

     22,500        162,170   

AUDIT FEES

     51,500        206,000   

LEGAL FEES

     0        47,281   

ADMINISTRATIVE FEES

     110,000        482,581   

LICENSE AND FEES

     0        300   

TRAVEL AND ENTERTAINMENT

     0        0   

BANK SERVICE FEES

     18,419        19,656   

MISCELLANEOUS EXPENSES

     0        0   
  

 

 

   

 

 

 

TOTAL GENERAL & ADMINISTRATIVE EXPENSES

     219,196        1,051,587   
  

 

 

   

 

 

 

INTEREST EXPENSE

     0        0   

IINTEREST INCOME

     1,937        8,614   

AMORTIZATION - COMMERCIAL PAPER

     0        0   

INVESTMENT INCOME - MUNICIPAL BONDS

     0        0   

INVESTMENT INCOME - CORPORATE BONDS

     414,722        3,389,361   

INVESTMENT INCOME - MBS BONDS

     67,771        508,022   

INVESTMENT INCOME - US AGENCY

     226,996        1,913,957   

INVESTMENT INCOME - US TREASURY

     79        544   

INVESTMENT INCOME - FOREIGN ISSUE

     88,561        666,801   

BOND AMORTIZATION - MUNICIPAL BONDS

     0        0   

BOND AMORTIZATION - CORPORATE BONDS

     (118,435     (898,101

BOND AMORTIZATION - MBS BONDS

     (2,982     (8,979

BOND AMORTIZATION - US AGENCY

     (27,621     (261,758

BOND AMORTIZATION - US TREASURY

     (12     (81

BOND AMORTIZATION - FOREIGN ISSUE

     (36,435     (247,929

INVESTMENT EXPENSE

     (54,110     (242,461

GAIN/LOSS ON SALE OF INVESTMENT

     2,240,133        2,687,000   

FAS 159 GAIN ON TRADING SECURITIES

     (1,207,223     114,579   
  

 

 

   

 

 

 

NET INVESTMENT INCOME

     1,593,383        7,629,570   
  

 

 

   

 

 

 

LEGAL SETTLEMENT

     0        0   

INCOME (LOSS) BEFORE TAX PROVISION

     2,755,522        7,143,314   

CURRENT FEDERAL INCOME TAX (BENEFIT) EXPENSE

     0        0   

PROVISION FOR DOUBTFUL INCOME TAX RECEIVABLE

     0        0   

DEFERRED FEDERAL INCOME TAX (BENEFIT) EXPENSE

     956,364        2,500,159   

CHANGE IN VALUATION ALLOWANCE

     (956,364     (2,500,159
  

 

 

   

 

 

 

FEDERAL INCOME TAX EXPENSE

     0        0   

NET INCOME (LOSS)

     2,755,522        7,143,314