-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CTQAgP+dgSsFgppBeOI4d3iVWDfAwDUv2bcTWR8ukn5CwNHYm5yM82sSE6wqLmlq Iajs5J+1nVcJyyVoQwjJUw== 0000042293-03-000030.txt : 20030418 0000042293-03-000030.hdr.sgml : 20030418 20030417190501 ACCESSION NUMBER: 0000042293-03-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030417 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLDEN WEST FINANCIAL CORP /DE/ CENTRAL INDEX KEY: 0000042293 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 952080059 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04629 FILM NUMBER: 03655134 BUSINESS ADDRESS: STREET 1: 1901 HARRISON STREET STREET 2: 1901 HARRISON STREET CITY: OAKLAND STATE: CA ZIP: 94612-3575 BUSINESS PHONE: 510-466-3402 MAIL ADDRESS: STREET 1: 1901 HARRISON STREET STREET 2: 1901 HARRISON STREET CITY: OAKLAND STATE: CA ZIP: 94612-3575 FORMER COMPANY: FORMER CONFORMED NAME: TRANS WORLD FINANCIAL CO DATE OF NAME CHANGE: 19751124 FORMER COMPANY: FORMER CONFORMED NAME: TRANS WORLD FINANCIAL CORP DATE OF NAME CHANGE: 19760806 8-K 1 form8kapril2003.txt GDW APRIL 17, 2003 8-K ================================================================================ 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): April 17, 2003 --------------------- GOLDEN WEST FINANCIAL CORPORATION --------------------- Commission file number 1-4629 Incorporated Pursuant to the Laws of Delaware State IRS Employer Identification No. 95-2080059 1901 Harrison Street, Oakland, California 94612 (510) 446-3420 ================================================================================ Item 9. Regulation FD Disclosure. The following information is furnished under Item 12 (Results of Operations and Financial Condition). Exhibit No. Exhibit ----------- ------- 99.1 First Quarter 2003 Earnings Press Release 99.2 March 2003 Thirteen Month Statistical Data Press Release 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 thereunto duly authorized. GOLDEN WEST FINANCIAL CORPORATION Dated: April 17, 2003 /s/ Russell W. Kettell --------------------------------- Russell W. Kettell President and Chief Financial Officer Exhibit 99.1 FOR FURTHER INFORMATION CONTACT FOR IMMEDIATE RELEASE William C. Nunan, Group Senior Vice President Telephone: (510) 446-3614 April 17, 2003 GOLDEN WEST FINANCIAL REPORTS RECORD FIRST QUARTER EARNINGS, LOAN ORIGINATIONS, AND DEPOSITS Oakland, California: Golden West Financial Corporation, parent of World Savings Bank, announced record first quarter diluted earnings per share of $1.67, up 11% from the $1.51 reported during the same period in 2002. The Company also posted all-time highs in first quarter mortgage originations and retail savings growth. New loan volume totaled $6.9 billion, up 28% from the $5.4 billion recorded one year earlier. At the same time, deposit inflows amounted to $2.5 billion, two and a half times the $1.0 billion recorded in the first three months of 2002. In other first quarter news, Golden West was voted the nation's most admired mortgage services company as reported in the March 3, 2003 issue of FORTUNE magazine. This recognition comes after the Company had been named most admired savings institution seven times in previous surveys. Herbert M. Sandler, Chairman of the Board and Chief Executive Officer of Golden West, opened his discussion of the firm's first quarter accomplishments with a comment on FORTUNE's announcement. He stated, "We are pleased to have received this honor, which reflects the broad strengths of the Company and our ability to meet the needs of the nation's homeowners." Moving to a discussion of the Company's year-over-year growth in earnings, Sandler said, "Expanding the mortgage portfolio, which is our major earning asset, is always a key contributor to growth in profits. Fueled by record originations, our loan balances increased 19% during the past twelve months." Continuing his comparison of this year's first quarter earnings results to the same period last year, Sandler explained, "The benefit we received from expanding our loan portfolio over the past twelve months was partially offset by a modest decrease in our primary spread." Golden West's primary spread, which is the difference between the yield earned on loans and other assets and the rate paid on savings and borrowings, averaged 2.97% during the first quarter of 2003, compared to the all-time high of 3.12% set one year ago. Wrapping up his earnings related comments, Sandler observed, "Our general and administrative expenses were 20% higher in the first quarter of 2003 than they were in the same period one year earlier, reflecting the increased activity on both the loan and savings sides of the business, as well as our continued investment in resources to support future expansion of the Company." Turning his comments to a review of lending results, Sandler remarked, "Demand for residential mortgages has remained strong, primarily because of a robust refinance market. Our originations in the first quarter outpaced repayments of existing loans, and as a result our mortgage portfolio grew $2.1 billion during the first three months of the year, compared to an increase of only $798 million one year earlier." Continuing, Sandler added, "The great majority of the loans we originated during the quarter were adjustable rate mortgages, and virtually all had interest rates that change monthly. These variable rate loans are critical because they help limit the Company's earnings exposure when market interest rates rise." Adjustable rate mortgages comprised 91% of new loan production in the first quarter of 2003. Addressing credit quality, Sandler pointed out, "Golden West's loan program emphasizes originating high-quality assets to limit credit risk. We measure success in this area by our ratio of nonperforming assets and troubled debt restructured to total assets." At March 31, 2003, this ratio was .63%, compared to .72% one year earlier. Switching to the Company's deposit growth, Sandler stated, "The struggling stock market and an uncertain economy caused consumers to seek out predictable, secure investments. Our products met these goals, and, as a result, we had another very strong quarter of deposit growth." Finally, the Company reported that it bought 839,395 shares of Golden West Stock during the first three months of 2003, at a cost of $60.7 million. At March 31, 2003, 10.4 million shares were available to be acquired under current authorizations. Headquartered in Oakland, California, Golden West is the nation's second largest savings institution with assets of $70 billion as of March 31, 2003. Currently operating 472 savings and lending offices in 38 states under the World name, the Company has one of the most extensive thrift branch systems in the country. Golden West's stock is listed on the New York Stock and Pacific Exchanges under the ticker symbol GDW. Options on the Company's stock are traded on the Chicago Board Options Exchange and the Pacific Exchange. Golden West investor information is available at www.gdw.com. Information about the Company's home loans and savings and checking accounts can be found at www.worldsavings.com and about its proprietary no-load mutual funds and annuities at www.atlasfunds.com. Information in this Press Release may contain various forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include projections, statements of the plans and objectives of management for future operations, statements of future economic performance, assumptions underlying these statements and other statements that are not statements of historical facts. Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond Golden West's control. Should one or more of these risks, uncertainties or contingencies materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated. Among the key risk factors that may have a direct bearing on Golden West's results of operations and financial condition are: competitive practices in the financial services industries; operational and systems risks; general economic and capital market conditions, including fluctuations in interest rates; economic conditions in certain geographic areas; and the impact of current and future laws and governmental regulations affecting the financial services industry in general and Golden West's operations in particular. # # # Financial Information Attached
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF NET EARNINGS AND OTHER FINANCIAL DATA (Unaudited) (Dollars in thousands except per share figures) Three Months Ended March 31 -------------------------------- 2003 2002 -------------- -------------- Interest Income Interest on loans $ 773,829 $ 658,200 Interest on mortgage-backed securities 78,915 179,968 Interest and dividends on investments 24,690 30,068 -------------- -------------- 877,434 868,236 Interest Expense Interest on deposits 250,102 276,581 Interest on advances 69,941 100,267 Interest on repurchase agreements 1,269 420 Interest on other borrowings 27,381 24,069 -------------- -------------- 348,693 401,337 -------------- -------------- Net Interest Income 528,741 466,899 Provision for loan losses 4,479 8,539 -------------- -------------- Net Interest Income after Provision for Loan Losses 524,262 458,360 Noninterest Income Fees 34,511 36,503 Gain on the sale of securities, MBS and loans 15,323 14,419 Change in fair value of derivatives 2,853 7,131 Other 14,375 11,951 -------------- -------------- 67,062 70,004 Noninterest Expense General and administrative: Personnel 96,894 82,832 Occupancy 23,599 21,165 Deposit insurance 1,621 1,502 Advertising 5,985 3,885 Other 41,611 31,677 -------------- -------------- 169,710 141,061 Earnings before Taxes on Income 421,614 387,303 Taxes on Income 161,549 149,222 -------------- -------------- Net Earnings $ 260,065 $ 238,081 ============== ============== Basic Earnings Per Share $ 1.70 $ 1.53 ============== ============== Diluted Earnings Per Share $ 1.67 $ 1.51 ============== ============== Average common shares outstanding 153,347,780 155,415,549 Average diluted common shares outstanding 155,851,663 157,570,350 Ratios (a) Net earnings / average net worth 20.32% 21.73% Net earnings / average assets 1.50% 1.62% Net interest margin (b) 3.14% 3.27% General and administrative expense / average assets .98% .96% Efficiency ratio 28.48% 26.27% (a) Ratios are annualized by multiplying the quarterly computation by four. Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four. (b) Net Interest Margin is Net Interest Income divided by Average Interest-Earning Assets.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AND OTHER FINANCIAL DATA (Unaudited) (Dollars in thousands except per share figures) For the Quarter Ended ----------------------------------------------------------------------- Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2003 2002 2002 2002 2002 ----------- ----------- ----------- ----------- ----------- ASSETS Cash $ 305,998 $ 318,914 $ 290,578 $ 332,027 $ 373,229 Securities available for sale at fair value 618,377 922,177 586,329 369,238 462,201 Purchased mortgage-backed securities available for sale 31,727 34,543 37,828 40,562 44,957 Purchased mortgage-backed securities held to maturity at cost 132,654 161,846 193,747 216,697 238,934 Mortgage-backed securities with recourse held to maturity at cost (a) 5,281,816 5,871,069 6,539,387 7,141,275 10,114,205 Loans receivable less allowance for loan losses (a) 60,960,882 58,268,899 55,110,526 51,624,345 45,543,068 ----------- ----------- ------------ ----------- ----------- Total Loans Receivable 66,407,079 64,336,357 61,881,488 59,022,879 55,941,164 Interest earned but uncollected 191,377 183,130 203,042 198,842 208,521 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,121,798 1,072,817 1,063,098 1,050,819 1,038,353 Foreclosed real estate 11,362 11,244 11,774 11,664 11,663 Premises and equipment, net 356,301 351,942 346,476 343,620 336,827 Other assets 991,211 1,209,247 1,132,042 993,025 975,796 ----------- ----------- ----------- ----------- ----------- $70,003,503 $68,405,828 $65,514,827 $62,322,114 $59,347,754 =========== =========== =========== =========== =========== LIABILITIES and STOCKHOLDERS' EQUITY Deposits $43,503,235 $41,038,797 $38,748,938 $36,230,741 $35,508,352 Advances from Federal Home Loan Banks 18,882,322 18,635,099 18,577,094 18,948,901 17,540,760 Securities sold under agreements to repurchase 21,988 522,299 21,766 21,936 28,523 Federal funds purchased 200,000 0 200,000 50,000 200,000 Bank notes 0 1,209,925 1,134,953 1,052,822 0 Senior debt 990,076 989,690 989,295 198,407 198,311 Subordinated notes 199,911 199,867 199,822 399,761 499,654 Taxes on income 615,978 489,252 470,623 462,940 569,938 Other liabilities 396,322 295,649 378,730 302,017 340,504 Stockholders' equity 5,193,671 5,025,250 4,793,606 4,654,589 4,461,712 ----------- ----------- ----------- ----------- ----------- $70,003,503 $68,405,828 $65,514,827 $62,322,114 $59,347,754 =========== =========== =========== =========== =========== Book value per common share $ 34.00 $ 32.73 $ 31.17 $ 30.04 $ 28.78 Common shares outstanding 152,774,708 153,521,103 153,813,352 154,957,387 155,011,562 (a) During the second quarter of 2002, the Company desecuritized $2.073 billion of FNMA MBS with recourse held to maturity and the underlying loans were transferred to the loan portfolio.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES QUARTERLY FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands except per share figures) For the Quarter Ended ----------------------------------------------------------------------- Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2003 2002 2002 2002 2002 ----------- ----------- ----------- ----------- ----------- Net interest income $ 528,741 $ 502,676 $ 495,700 $ 465,019 $ 466,899 Provision for loan losses 4,479 961 6,484 5,186 8,539 Noninterest income 67,062 67,841 57,862 51,293 70,004 Noninterest expense 169,710 163,699 153,767 142,967 141,061 ----------- ----------- ----------- ----------- ----------- Earnings before taxes on income 421,614 405,857 393,311 368,159 387,303 Taxes on income 161,549 156,486 148,852 141,791 149,222 ----------- ----------- ----------- ----------- ----------- Net earnings $ 260,065 $ 249,371 $ 244,459 $ 226,368 $ 238,081 =========== =========== =========== =========== =========== Basic EPS $ 1.70 $ 1.62 $ 1.58 $ 1.46 $ 1.53 Diluted EPS $ 1.67 $ 1.60 $ 1.56 $ 1.44 $ 1.51 Average common shares outstanding 153,347,780 153,511,006 154,441,454 154,899,196 155,415,549 Average diluted common shares outstanding 155,851,663 155,688,363 156,490,431 157,078,432 157,570,350 Ratios: (a) Net earnings / average net worth (ROE) 20.32% 20.33% 20.66% 19.85% 21.73% Net earnings / average assets (ROA) 1.50% 1.49% 1.52% 1.49% 1.62% Net interest margin (b) 3.14% 3.10% 3.19% 3.15% 3.27% General and administrative expense / average assets .98% .98% .96% .94% .96% Efficiency ratio 28.48% 28.69% 27.78% 27.69% 26.27% Loan loss reserve $ 284,673 $ 281,097 $ 279,818 $ 273,881 $ 269,327 Net loan chargeoffs (recoveries) $ 903 $ (318) $ 547 $ 632 $ 225 Stockholders' equity / total assets 7.42% 7.35% 7.32% 7.47% 7.52% Total deposit net activity 2,464,438 $ 2,289,859 $ 2,518,197 $ 722,389 $ 1,035,767 (a) Ratios are annualized by multiplying the quarterly computation by four. Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four. (b) Net Interest Margin is Net Interest Income divided by Average Interest-Earning Assets.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES OTHER FINANCIAL DATA (Unaudited) (Dollars in thousands) For the Quarter Ended ----------------------------------------------------------------------- Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2003 2002 2002 2002 2002 ----------- ----------- ----------- ----------- ----------- AVERAGE BALANCES (a) Cash and investments $ 1,331,028 $ 988,223 $ 1,009,279 $ 795,661 $ 879,542 Loans receivable including mortgage-backed securities 65,342,133 63,115,392 60,490,880 57,462,160 55,439,619 Investment in capital stock of Federal Home Loan Banks 1,097,405 1,066,836 1,056,282 1,043,922 1,050,966 Deposits 42,339,391 39,874,352 37,446,424 35,718,354 34,987,193 Advances from Federal Home Loan Banks 18,598,691 18,418,659 18,902,821 18,596,039 17,667,900 Securities sold under agreements to repurchase 372,164 171,762 22,248 23,076 123,155 Other borrowings 2,085,239 2,572,539 2,152,415 1,090,520 772,847 Stockholders' equity 5,118,183 4,906,872 4,732,215 4,561,323 4,383,426 Total Average Assets 69,428,026 66,868,244 64,134,621 60,820,162 58,810,122 Average Interest-Earning Assets 67,439,798 64,853,046 62,248,688 59,001,340 57,072,122 Average Interest-Bearing Liabilities 63,395,485 61,037,312 58,523,909 55,427,989 53,551,095 LOAN ACTIVITY New real estate loans originated $ 6,942,757 $ 7,644,576 $ 6,711,955 $ 6,897,783 $ 5,428,576 New adjustable rate mortgages as a percentage of new real estate loans originated 91% 89% 93% 95% 89% LOANS SOLD AND SERVICED DATA Loan sales $ 804,541 $ 988,743 $ 329,601 $ 339,498 $ 771,289 Loans serviced for others 5,566,570 5,408,494 5,131,994 5,253,957 5,263,867 Balance of capitalized mortgage servicing rights 74,192 69,448 60,687 61,778 61,470 NONPERFORMING ASSETS Loans (including MBS with recourse) 90 days or more past due $ 432,479 $ 413,123 $ 405,806 $ 382,458 $ 408,862 Foreclosed real estate 11,362 11,244 11,774 11,664 11,663 ----------- ----------- ----------- ----------- ----------- Total nonperforming assets $ 443,841 $ 424,367 $ 417,580 $ 394,122 $ 420,525 =========== =========== =========== =========== =========== Ratio of nonperforming assets (NPAs) to total assets .63% .62% .64% .63% .71% Ratio of troubled debt restructured (TDRs) to total assets .00 .00 .01 .01 .01 ----------- ------------ ----------- ----------- ----------- Ratio of NPAs and TDRs to total assets .63% .62% .65% .64% .72% =========== ============ =========== =========== =========== SPREAD DATA Yield on loan portfolio 5.08% 5.28% 5.50% 5.59% 5.82% Yield on investments 1.39% 1.94% 3.50% 17.23% 5.95% Yield on earning assets 5.07% 5.25% 5.49% 5.59% 5.82% Cost of deposits 2.25% 2.56% 2.81% 2.92% 3.04% Cost of borrowings 1.67% 1.85% 2.10% 2.20% 2.35% Cost of funds 2.06% 2.32% 2.56% 2.65% 2.81% Yield on earning assets less cost of funds 3.01% 2.93% 2.93% 2.94% 3.01% (a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four.
Exhibit 99.2 FOR FURTHER INFORMATION CONTACT FOR IMMEDIATE RELEASE William C. Nunan, Group Senior Vice President Telephone: (510) 446-3614 April 17, 2003 GOLDEN WEST FINANCIAL RELEASES THIRTEEN MONTH STATISTICAL DATA Oakland, California: Golden West Financial Corporation, parent of World Savings Bank, today released statistical data for the thirteen months ended March 31, 2003. Headquartered in Oakland, California, Golden West is the nation's second largest savings institution with assets of $70 billion as of March 31, 2003. Currently operating 472 savings and lending offices in 38 states under the World name, the Company has one of the most extensive thrift branch systems in the country. Golden West's stock is listed on the New York Stock and Pacific Exchanges under the ticker symbol GDW. Golden West investor information is available at www.gdw.com. (Financial Information Attached)
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS March 2002 - March 2003 (Dollars in millions) 2003 2002 ------------------------------ ---------------------------------------- MAR FEB JAN DEC NOV OCT SEP -------- -------- -------- -------- -------- -------- -------- Total Assets $ 70,004 $ 69,590 $ 69,713 $ 68,406 $ 67,032 $ 66,520 $ 65,515 Cash and Investments $ 924 $ 1,201 $ 1,957 $ 1,241 $ 844 $ 991 $ 877 Loan Balance (Including MBS) $ 66,407 $ 65,598 $ 65,027 $ 64,336 $ 63,463 $ 62,781 $ 61,881 Adjustable Rate Mortgages (Including MBS) $ 63,916 $ 63,127 $ 62,511 $ 61,770 $ 60,789 $ 60,106 $ 59,159 Loans Originated - Month $ 2,531 $ 2,074 $ 2,338 $ 2,648 $ 2,337 $ 2,660 $ 2,212 Percentage ARMs - Month 91% 90% 90% 89% 88% 89% 91% Percentage Refinances - Month 71% 73% 72% 69% 68% 68% 64% Loans Originated - YTD $ 6,943 $ 4,412 $ 2,338 $ 26,683 $ 24,035 $ 21,698 $ 19,038 Percentage ARMs - YTD 91% 90% 90% 92% 92% 92% 93% Percentage Refinances - YTD 72% 73% 72% 62% 61% 60% 59% Total Deposits $ 43,503 $ 42,708 $ 42,107 $ 41,039 $ 40,219 $ 39,490 $ 38,749 Total Deposit Net Activity - Month $ 795 $ 601 $ 1,068 $ 820 $ 729 $ 741 $ 923 Total Deposit Net Activity - YTD $ 2,464 $ 1,669 $ 1,068 $ 6,566 $ 5,746 $ 5,017 $ 4,276 Federal Home Loan Bank Borrowings $ 18,882 $ 18,337 $ 18,541 $ 18,635 $ 18,129 $ 18,333 $ 18,577 Other Borrowings: Reverse Repurchases 22 422 522 522 122 21 22 Federal Funds Purchased 200 0 0 0 450 450 200 Bank Notes 0 812 1,360 1,210 913 1,175 1,135 Senior Debt 990 990 990 990 990 989 989 Subordinated Notes 200 200 200 200 200 200 200 -------- -------- -------- -------- -------- -------- -------- Total Borrowings $ 20,294 $ 20,761 $ 21,613 $ 21,557 $ 20,804 $ 21,168 $ 21,123 ======== ======== ======== ======== ======== ======== ======== Yield on Loan Portfolio 5.08% 5.16% 5.22% 5.28% 5.39% 5.42% 5.50% Yield on Investments 1.39 1.32 1.34 1.94 4.04 3.06 3.50 -------- -------- -------- -------- -------- -------- -------- Combined Yield on Earning Assets 5.07% 5.12% 5.14% 5.25% 5.38% 5.41% 5.49% Cost of Deposits 2.25% 2.30% 2.47% 2.56% 2.63% 2.74% 2.81% Cost of Federal Home Loan Bank Borrowings 1.46 1.51 1.57 1.68 1.82 1.89 1.93 Cost of Other Borrowings 4.51 3.20 2.84 2.92 3.11 3.20 3.34 -------- -------- -------- -------- -------- -------- -------- Combined Cost of Funds 2.06% 2.10% 2.23% 2.32% 2.41% 2.50% 2.56% -------- -------- -------- -------- -------- -------- -------- Net Interest Rate Spread 3.01% 3.02% 2.91% 2.93% 2.97% 2.91% 2.93% ======== ======== ======== ======== ======== ======== ======== Loans Sold $ 252 $ 251 $ 302 $ 329 $ 328 $ 332 $ 149 Loan and MBS Repayments and Payoffs - Month $ 1,473 $ 1,253 $ 1,353 $ 1,510 $ 1,384 $ 1,500 $ 1,238 As a % of Prior Month Loan Balances (Annualized) 26.95% 23.13% 25.23% 28.55% 26.45% 29.08% 24.34% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .63% .65% .63% .62% .63% .64% .65%
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GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS March 2002 - March 2003 (Dollars in millions) 2002 --------------------------------------------------------------------------- AUG JUL JUN MAY APR MAR ---------- ---------- ---------- ---------- ---------- ---------- Total Assets $ 65,110 $ 63,592 $ 62,322 $ 61,383 $ 60,228 $ 59,348 Cash and Investments $ 1,497 $ 962 $ 701 $ 808 $ 838 $ 835 Loan Balance (Including MBS) $ 61,005 $ 60,055 $ 59,023 $ 57,975 $ 56,910 $ 55,941 Adjustable Rate Mortgages (Including MBS) $ 58,280 $ 57,342 $ 56,263 $ 55,192 $ 54,070 $ 53,039 Loans Originated - Month $ 2,235 $ 2,265 $ 2,174 $ 2,353 $ 2,370 $ 2,055 Percentage ARMs - Month 93% 95% 95% 95% 95% 92% Percentage Refinances - Month 59% 55% 55% 57% 58% 60% Loans Originated - YTD $ 16,826 $ 14,591 $ 12,326 $ 10,152 $ 7,799 $ 5,429 Percentage ARMs - YTD 93% 93% 93% 92% 91% 89% Percentage Refinances - YTD 59% 59% 59% 60% 61% 63% Total Deposits $ 37,826 $ 36,980 $ 36,231 $ 35,743 $ 35,391 $ 35,508 Total Deposit Net Activity - Month $ 846 $ 749 $ 488 $ 352 $ (117) $ 334 Total Deposit Net Activity - YTD $ 3,353 $ 2,507 $ 1,758 $ 1,270 $ 918 $ 1,035 Federal Home Loan Bank Borrowings $ 18,916 $ 19,170 $ 18,949 $ 18,953 $ 18,942 $ 17,541 Other Borrowings: Reverse Repurchases 22 24 22 21 21 29 Federal Funds Purchased 0 0 50 0 0 200 Bank Notes 1,873 1,318 1,053 567 0 0 Senior Debt 496 198 198 198 198 198 Subordinated Notes 200 300 400 400 400 500 ---------- ---------- ---------- ---------- ---------- ---------- Total Borrowings $ 21,507 $ 21,010 $ 20,672 $ 20,139 $ 19,561 $ 18,468 ========== ========== ========== ========== ========== ========== Yield on Loan Portfolio 5.54% 5.56% 5.59% 5.60% 5.71% 5.82% Yield on Investments 2.45 3.05 17.23 4.95 4.21 5.95 ---------- ---------- ---------- ---------- ---------- ---------- Combined Yield on Earning Assets 5.51% 5.55% 5.59% 5.60% 5.71% 5.82% Cost of Deposits 2.85% 2.89% 2.92% 2.94% 2.98% 3.04% Cost of Federal Home Loan Bank Borrowings 1.98 2.03 2.09 2.13 2.16 2.19 Cost of Other Borrowings 2.73 3.01 3.37 4.13 6.11 5.40 ---------- ---------- ---------- ---------- ---------- ---------- Combined Cost of Funds 2.57% 2.61% 2.65% 2.69% 2.73% 2.81% ---------- ---------- ---------- ---------- ---------- ---------- Net Interest Rate Spread 2.94% 2.94% 2.94% 2.91% 2.98% 3.01% ========== ========== ========== ========== ========== ========== Loans Sold $ 85 $ 96 $ 92 $ 113 $ 134 $ 130 Loan and MBS Repayments and Payoffs - Month $ 1,259 $ 1,202 $ 1,102 $ 1,239 $ 1,324 $ 1,373 As a % of Prior Month Loan Balances (Annualized) 25.17% 24.45% 22.82% 26.12% 28.40% 29.76% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .63% .66% .64% .66% .69% .72%
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