Washington Mutual Inc. reported a first-quarter loss of $1.14 billion late Tuesday, as the lender continues to suffer from the mortgage meltdown and credit crisis.
The Seattle-based company also confirmed it closed a previously announced deal to raise $7 billion from a group of investors led by TPG Inc., a private-equity firm Texas Pacific Group.
By issuing $7 billion of additional capital, we have taken decisive actions to withstand this period of unprecedented credit losses, while maintaining strong liquidity, WaMu Chairman and Chief Executive Officer Kerry Killinger said in a statement.
WaMu said it lost $1.14 billion, or $1.40 a share, in the period, compared to its net income of $784 million, or 86 cents a share, reported during the first quarter of 2007.
Killinger also announced on Tuesday that Mary Pugh, the head of the finance committee of WaMu's board is stepping down. Critics claim that Pugh failed to protect the company from risky mortgages, along with subprime loans and adjustable-rate mortgages, which have all the company's finances in bad shape.
Results were in line with analysts' expectations of a loss of $1.40 a share, after the bank said on April 8 that it projected a loss of that size, or equal to about $1.1 billion.
The company also plans to cut 3,000 jobs and cut its dividend 93 percent.
WaMu set aside $3.51 billion of provisions to cover potential loan losses as the economy and mortgage values continue to deteriorate. The amount is more than double what was previously set aside in last year's fourth quarter.
Washington Mutual shares rose 10 cents to $10.76 in after-hours trading. They had closed Tuesday up 31 cents, at $10.66. Through the close, the shares have fallen 22 percent this year.