Washington Mutual ( WM), the nation's largest thrift, said second-quarter profits fell from a year ago, largely because of a series of restructuring charges. One of the charges related to a major asset sale that was also announced Wednesday.

The Seattle-based lender, in conjunction with the release of its earnings, said it is selling a portion of its mortgage servicing business to Wells Fargo ( WFC) and took a hefty $101 million charge.

In the quarter, WaMu earned $767 million, or 79 cents a share, compared with $844 million, or 95 cents a share, a year ago. Revenue rose 16% to $3.64 billion, which fell short of analyst expectations.

Excluding the $101 million after-tax charge and another $52 million charge stemming from related cost cuts, WaMu earned $920 million, or 94 cents a share, in the quarter.

Analysts, as surveyed by Thomson Financial, had WaMu earning 93 cents a share on revenue of $3.77 billion.

Most of the analyst estimates were compiled before Wednesday's announcement that WaMu was selling its $140 billion government mortgage servicing portfolio to Wells Fargo. In the deal, Wells Fargo is assuming $2.6 billion in mortgage servicing rights and will take 800 WaMu employees onto its books.

That wasn't the only corporate streamlining announced by WaMu. The savings and loan giant also said it intends to sell WM Advisors, its investment management advisory group.

"The transformational actions we're taking will make us an even more diversified bank positioned for improved financial performance as we move forward," says WaMu Chairman and CEO Kerry Killinger.

The bank says the restructuring moves are aimed at refocusing WaMu on its big home lending operation.

Shares of WaMu, in afterhours trading, were down 26 cents to $46.16, after closing Wednesday at $46.42.

Net interest income in the quarter was up just 3% from a year ago to $2.1 billion. The bank blamed the tricky interest environment for its inability to generate more profits from its lending and deposit operation.