-----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, F3xrAoYBiwZ/yuIy/SuY1PVIJSLkpDTebBwj8fkx3rcjNTMITHD52zNqQmmxveK1 SNxdo21aLGbXapZiQY67Qw== 0000042293-03-000057.txt : 20031022 0000042293-03-000057.hdr.sgml : 20031022 20031022151500 ACCESSION NUMBER: 0000042293-03-000057 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030930 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20031022 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: 03951824 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 CORP DATE OF NAME CHANGE: 19760806 FORMER COMPANY: FORMER CONFORMED NAME: TRANS WORLD FINANCIAL CO DATE OF NAME CHANGE: 19751124 8-K 1 form8koctober2003.txt GDW OCTOBER 21, 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): October 21, 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 Third Quarter 2003 Earnings Press Release 99.2 September 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: October 21, 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 October 21, 2003 GOLDEN WEST FINANCIAL REPORTS RECORD EARNINGS AND LOAN ORIGINATIONS Oakland, California: Golden West Financial Corporation, parent of World Savings Bank, posted record diluted earnings per share of $1.83 in the third quarter, up 17% from the $1.56 reported for the same period in 2002. For the first nine months of 2003, per share profits reached $5.25, a 16% increase from the $4.52 registered in the first three quarters of 2002. The Company also announced record loan originations of $10.1 billion in the third quarter, a 50% jump from the $6.7 billion reported one year earlier. For the first nine months of 2003, new mortgage volume totaled $25.1 billion, a 32% increase from the $19.0 billion recorded in the first three quarters of 2002. Adjustable rate loans comprised 93% of the new lending in the third quarter of 2003, and 92% of the volume for the first nine months. Starting with a discussion of the reasons behind the Company's growth in earnings, Herbert M. Sandler, Chairman of the Board and Chief Executive Officer, said, "Our record 2003 mortgage volume led to 16% growth in the Company's loan balances over the past twelve months. Having a larger mortgage portfolio, our primary earning asset, increases net interest income, our principal revenue source, because the more loans we have on the books, the greater our capacity to generate profits." Continuing his discussion of the factors influencing earnings, Sandler observed, "Higher revenue from sources other than net interest income also played a part in the earnings increase." Noninterest income totaled $91 million in the third quarter of 2003, compared to $58 million one year earlier. "The biggest contributor to the growth in noninterest income was an increase in gains on sale of fixed-rate mortgages." Golden West sold $1.1 billion in loans during the third quarter, compared with $330 million one year earlier. Concluding his earnings related comments, Sandler stated, "Our general and administrative expenses were 18% higher in the third quarter of 2003 than they were in the same three months of 2002. A large portion of this increase in spending was used to support the record loan volume we produced during this past quarter. The higher costs also reflected our continued investment in people and technology, so that we are prepared to capitalize on future growth opportunities." Turning to a review of lending activity, Sandler remarked, "Golden West's primary product is an adjustable rate mortgage, or ARM. The popularity of this loan is affected by what is happening with fixed-rate mortgages, which are the borrowers' other alternative. In June, interest rates on fixed home loans dipped below 5%. But by the end of July, the cost of these loans had spiked up to over 6%. Because interest on ARMs moves slowly, mortgage rates at Golden West were low and stable. Small wonder that ARMs became increasingly attractive to customers, and our loan volume reached all-time high levels." Sandler continued, "The demand for ARMs waned a bit toward the end of the quarter, however, as rates on fixed loans fell below 6% again." Concluding his comments on mortgage activity, Sandler stated, "The record loan volume we posted in the third quarter exceeded by far the payoffs and sales of our mortgages. The net result was a significant increase in the size of our mortgage portfolio." Golden West's adjustable rate mortgage balance grew $3.5 billion, or at a 21% annualized rate, in the third quarter of 2003, and increased $7.8 billion, or at a 17% annualized rate, during the first nine months of the year. Moving to the topic of credit quality, Sandler pointed out, "Golden West's loan program emphasizes originating high-quality mortgages to minimize credit risk. We measure our performance by the ratio of nonperforming assets and troubled debt restructured to total assets." At September 30, 2003, this ratio was a nominal .56%, down from the low .65% ratio recorded one year earlier. On the savings side of the business, Golden West posted retail deposit growth of $1.8 billion in the third quarter of 2003, down from the record $2.5 billion reported in the same period of 2002. But for the first nine months of 2003, inflows amounted to $5.1 billion, a 19% increase from the $4.3 billion experienced in the first three quarters of 2002. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $75 billion as of September 30, 2003. Currently operating 475 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, governmental regulations, and accounting and other rulings and guidelines affecting the financial services industry in general and Golden West's operations in particular. In addition, actual results may differ materially from the results discussed in any forward-looking statements. # # # 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 Nine Months Ended September 30 September 30 ------------------------------ ------------------------------ 2003 2002 2003 2002 ------------- ------------- ------------- ------------- Interest Income Interest on loans $ 795,003 $ 752,343 $ 2,350,687 $ 2,122,065 Interest on mortgage-backed securities 60,246 105,700 207,100 398,147 Interest and dividends on investments 21,637 30,416 67,856 90,272 ------------- ------------- ------------- ------------- 876,886 888,459 2,625,643 2,610,484 Interest Expense Interest on deposits 232,789 270,530 719,019 810,259 Interest on advances 63,181 95,403 202,837 295,680 Interest on repurchase agreements 1,878 299 3,160 1,331 Interest on other borrowings 25,708 26,527 76,935 75,596 ------------- ------------- ------------- ------------- 323,556 392,759 1,001,951 1,182,866 ------------- ------------- ------------- ------------- Net Interest Income 553,330 495,700 1,623,692 1,427,618 Provision for loan losses 2,082 6,484 10,062 20,209 ------------- ------------- ------------- ------------- Net Interest Income after Provision for Loan Losses 551,248 489,216 1,613,630 1,407,409 Noninterest Income Fees 45,692 32,280 122,123 102,152 Gain on the sale of securities, MBS and loans 25,972 5,914 62,487 26,820 Change in fair value of derivatives 2,993 (54) 8,639 4,903 Other 16,083 19,722 47,483 45,284 ------------- ------------- ------------- ------------- 90,740 57,862 240,732 179,159 Noninterest Expense General and administrative: Personnel 108,976 92,622 310,152 260,661 Occupancy 24,404 22,922 72,301 65,327 Deposit insurance 1,732 1,521 5,005 4,532 Advertising 5,252 4,048 16,569 10,975 Other 40,689 32,654 123,916 96,300 ------------- ------------- ------------- ------------- 181,053 153,767 527,943 437,795 Earnings before Taxes on Income 460,935 393,311 1,326,419 1,148,773 Taxes on Income 178,029 148,852 510,975 439,865 ------------- ------------- ------------- ------------- Net Earnings $ 282,906 $ 244,459 $ 815,444 $ 708,908 ============= ============= ============= ============= Basic Earnings Per Share $ 1.86 $ 1.58 $ 5.34 $ 4.58 ============= ============= ============= ============= Diluted Earnings Per Share $ 1.83 $ 1.56 $ 5.25 $ 4.52 ============= ============= ============= ============= Average common shares outstanding 152,180,798 154,441,454 152,699,508 154,915,165 Average diluted common shares outstanding 154,810,821 156,490,431 155,179,200 156,979,733 Ratios: (a) Net earnings / average stockholders' equity 20.48% 20.66% 20.43% 20.73% Net earnings / average assets 1.53% 1.52% 1.52% 1.54% Net interest margin (b) 3.07% 3.19% 3.11% 3.20% General and administrative expense / average assets .98% .96% .98% .95% Efficiency ratio (c) 28.11% 27.78% 28.32% 27.25% (a) Ratios are annualized by multiplying the quarterly computation by four and the nine month computation by one and one third. Averages are computed by adding the beginning balances and each monthend balance during the quarter and nine month period and dividing by four and ten, respectively. (b) Net interest margin is net interest income divided by average interest-earning assets. (c) Efficiency ratio is general and administrative expense divided by the sum of net interest income and noninterest income.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AND OTHER FINANCIAL DATA (Unaudited) (Dollars in thousands except per share figures) Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 2003 2003 2003 2002 2002 ------------ ------------ ----------- ----------- ----------- ASSETS Cash $ 219,000 $ 267,960 $ 305,998 $ 318,914 $ 290,578 Securities available for sale at fair value 950,329 604,998 618,377 922,177 586,329 Purchased mortgage-backed securities available for sale at fair value 24,824 27,524 31,727 34,543 37,828 Purchased mortgage-backed securities held to maturity at cost 425,741 106,098 132,654 161,846 193,747 Mortgage-backed securities with recourse held to maturity at cost 4,078,140 4,667,649 5,281,816 5,871,069 6,539,387 Loans receivable less allowance for loan losses 67,507,415 63,690,274 60,960,882 58,268,899 55,110,526 ------------ ------------ ----------- ----------- ----------- Total Loans Receivable including 72,036,120 68,491,545 66,407,079 64,336,357 61,881,488 Mortgage-Backed Securities Interest earned but uncollected 179,091 198,639 191,377 183,130 203,042 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,142,582 1,132,714 1,121,798 1,072,817 1,063,098 Foreclosed real estate 16,838 11,027 11,362 11,244 11,774 Premises and equipment, net 355,955 355,042 356,301 351,942 346,476 Other assets 1,257,925 1,136,100 991,211 1,209,247 1,132,042 ------------ ------------ ----------- ----------- ----------- $ 76,157,840 $ 72,198,025 $ 70,003,503 $ 68,405,828 $ 65,514,827 ============ ============ =========== =========== =========== LIABILITIES and STOCKHOLDERS' EQUITY Deposits $ 46,145,048 $ 44,385,717 $43,503,235 $ 41,038,797 $ 38,748,938 Advances from Federal Home Loan Banks 19,689,871 19,927,189 18,882,322 18,635,099 18,577,094 Securities sold under agreements to repurchase 721,639 21,247 21,988 522,299 21,766 Federal funds purchased 300,000 265,000 200,000 0 200,000 Bank notes 1,489,946 99,990 0 1,209,925 1,134,953 Senior debt 990,862 990,467 990,076 989,690 989,295 Subordinated notes 200,000 199,955 199,911 199,867 199,822 Taxes on income 580,969 533,122 615,978 489,252 470,623 Other liabilities 404,258 363,584 396,322 295,649 378,730 Stockholders' equity 5,635,247 5,411,754 5,193,671 5,025,250 4,793,606 ------------ ------------ ----------- ----------- ----------- $ 76,157,840 $ 72,198,025 $ 70,003,503 $ 68,405,828 $ 65,514,827 ============ ============ =========== =========== =========== Book value per common share $ 37.10 $ 35.50 $ 34.00 $ 32.73 $ 31.17 Common shares outstanding 151,900,958 152,451,133 152,774,708 153,521,103 153,813,352
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES QUARTERLY FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands except per share figures) For the Quarter Ended -------------------------------------------------------------------------------------- Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 2003 2003 2003 2002 2002 -------------- -------------- -------------- -------------- -------------- Net interest income $ 553,330 $ 541,621 $ 528,741 $ 502,676 $ 495,700 Provision for loan losses 2,082 3,501 4,479 961 6,484 Noninterest income 90,740 82,930 67,062 67,841 57,862 Noninterest expense 181,053 177,180 169,710 163,699 153,767 -------------- -------------- -------------- -------------- -------------- Earnings before taxes on income 460,935 443,870 421,614 405,857 393,311 Taxes on income 178,029 171,397 161,549 156,486 148,852 -------------- -------------- -------------- -------------- -------------- Net earnings $ 282,906 $ 272,473 $ 260,065 $ 249,371 $ 244,459 ============== ============== ============== ============== ============== Basic EPS $ 1.86 $ 1.79 $ 1.70 $ 1.62 $ 1.58 Diluted EPS $ 1.83 $ 1.76 $ 1.67 $ 1.60 $ 1.56 Average common shares outstanding 152,180,798 152,582,771 153,347,780 153,511,006 154,441,454 Average diluted common shares outstanding 154,810,821 155,091,780 155,851,663 155,688,363 156,490,431 Number of shares repurchased and retired 630,000 486,975 839,395 445,000 1,217,160 Cost of shares repurchased $ 53,407 $ 37,086 $ 60,737 $ 26,804 $ 77,075 Remaining number of shares authorized for repurchase 9,328,179 9,958,179 10,445,154 11,284,549 11,729,549 Ratios: (a) Net earnings / average stockholders' equity (ROE) 20.48% 20.50% 20.32% 20.33% 20.66% Net earnings / average assets (ROA) 1.53% 1.53% 1.50% 1.49% 1.52% Net interest margin (b) 3.07% 3.13% 3.14% 3.10% 3.19% General and administrative expense / average assets .98% .99% .98% .98% .96% Efficiency ratio (c) 28.11% 28.37% 28.48% 28.69% 27.78% Loan loss reserve $ 288,949 $ 287,868 $ 284,673 $ 281,097 $ 279,818 Net loan chargeoffs (recoveries) $ 1,001 $ 306 $ 903 $ (318) $ 547 Stockholders' equity / total assets 7.40% 7.50% 7.42% 7.35% 7.32% Total deposit net activity $ 1,759,331 $ 882,482 $ 2,464,438 $ 2,289,859 $ 2,518,197 (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. (c) Efficiency ratio is general and administrative expense divided by the sum of net interest income and noninterest income.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES OTHER FINANCIAL DATA (Unaudited) (Dollars in thousands) For the Quarter Ended ---------------------------------------------------------------------------- Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 2003 2003 2003 2002 2002 ------------- ------------- ------------- ------------- ------------- AVERAGE BALANCES (a) Cash and investments $ 1,275,081 $ 1,099,522 $ 1,331,028 $ 988,223 $ 1,009,279 Loans receivable including mortgage-backed securities 70,044,462 67,444,562 65,342,133 63,115,392 60,490,880 Investment in capital stock of Federal Home Loan Banks 1,137,138 1,126,629 1,097,405 1,066,836 1,056,282 Deposits 45,314,936 43,891,768 42,339,391 39,874,352 37,446,424 Advances from Federal Home Loan Banks 19,417,796 19,765,434 18,598,691 18,418,659 18,902,821 Securities sold under agreements to repurchase 522,116 21,557 372,164 171,762 22,248 Other borrowings 2,399,344 1,331,453 2,085,239 2,572,539 2,152,415 Stockholders' equity 5,525,243 5,315,729 5,118,183 4,906,872 4,732,215 Total Average Assets 74,194,553 71,279,693 69,428,026 66,868,244 64,134,621 Average Interest-Earning Assets 72,108,046 69,317,504 67,439,798 64,853,046 62,248,688 Average Interest-Bearing Liabilities 67,654,192 65,010,212 63,395,485 61,037,312 58,523,909 LOAN BALANCE AND ACTIVITY Loans receivable including mortgage-backed securities $ 72,036,120 $ 68,491,545 $ 66,407,079 $ 64,336,357 $ 61,881,488 Adjustable rate loans receivable including mortgage-backed securities 69,528,396 66,078,182 63,915,960 61,770,142 59,158,704 New real estate loans originated $ 10,092,199 $ 8,044,095 $ 6,942,757 $ 7,644,576 $ 6,711,955 New adjustable rate mortgages as a percentage of new real estate loans originated 93% 91% 91% 89% 93% New refinanced mortgages as a percentage of new real estate loans originated 70% 70% 72% 68% 59% LOANS SOLD AND SERVICED DATA Loan sales $ 1,117,899 $ 894,345 $ 804,541 $ 988,743 $ 329,601 Loans serviced for others 5,886,668 5,653,002 5,566,570 5,408,494 5,131,994 Balance of capitalized mortgage servicing rights 92,098 82,060 74,192 69,448 60,687 NONPERFORMING ASSETS Loans (including MBS with recourse) 90 days or more past due $ 409,001 $ 436,595 $ 432,479 $ 413,123 $ 405,806 Foreclosed real estate 16,838 11,027 11,362 11,244 11,774 ------------- ------------- ------------- ------------- ------------- Total nonperforming assets $ 425,839 $ 447,622 $ 443,841 $ 424,367 $ 417,580 ============= ============= ============= ============= ============= Ratio of nonperforming assets (NPAs) to total assets .56% .62% .63% .62% .64% Ratio of troubled debt restructured (TDRs) to total assets .00 .00 .00 .00 .01 ------------- ------------- ------------- ------------- ------------- Ratio of NPAs and TDRs to total assets .56% .62% .63% .62% .65% ============= ============= ============= ============= ============= SPREAD DATA Yield on loan portfolio 4.73% 4.92% 5.08% 5.28% 5.50% Yield on investments 1.10% 1.27% 1.39% 1.94% 3.50% Yield on earning assets 4.70% 4.90% 5.07% 5.25% 5.49% Cost of deposits 1.95% 2.12% 2.25% 2.56% 2.81% Cost of borrowings 1.45% 1.58% 1.67% 1.85% 2.10% Cost of funds 1.78% 1.94% 2.06% 2.32% 2.56% Yield on earning assets less cost of funds (Primary Spread) 2.92% 2.96% 3.01% 2.93% 2.93% (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 October 21, 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 September 30, 2003. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets of over $75 billion as of September 30, 2003. Currently operating 475 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 September 2002 - September 2003 (Dollars in millions) 2003 ----------------------------------------------------------------------------------------- SEP AUG JUL JUN MAY APR MAR ----------- ------------ ----------- ----------- ----------- ----------- ---------- Total Assets $ 76,158 $ 75,028 $ 73,395 $ 72,198 $ 72,059 $ 70,859 $ 70,004 Cash and Investments $ 1,169 $ 1,693 $ 1,365 $ 873 $ 1,570 $ 1,031 $ 924 Loan Balance (Including MBS) $ 72,036 $ 70,403 $ 69,248 $ 68,492 $ 67,767 $ 67,113 $ 66,407 Adjustable Rate Mortgages (Including MBS) $ 69,528 $ 67,843 $ 66,868 $ 66,078 $ 65,318 $ 64,633 $ 63,916 Loans Originated - Month $ 3,698 $ 3,237 $ 3,157 $ 2,786 $ 2,606 $ 2,652 $ 2,531 Percentage ARMs - Month 97% 92% 90% 92% 91% 90% 91% Percentage Refinances - Month 67% 71% 71% 70% 70% 71% 71% Loans Originated - YTD $ 25,079 $ 21,381 $ 18,144 $ 14,987 $ 12,201 $ 9,595 $ 6,943 Percentage ARMs - YTD 92% 91% 91% 91% 90% 90% 91% Percentage Refinances - YTD 71% 71% 71% 71% 71% 72% 72% Total Deposits $ 46,145 $ 45,761 $ 44,968 $ 44,386 $ 44,083 $ 43,595 $ 43,503 Total Deposit Net Activity - Month $ 384 $ 793 $ 582 $ 303 $ 488 $ 92 $ 795 Total Deposit Net Activity - YTD $ 5,106 $ 4,722 $ 3,929 $ 3,347 $ 3,044 $ 2,556 $ 2,464 Federal Home Loan Bank Borrowings $ 19,690 $ 19,131 $ 18,923 $ 19,927 $ 20,374 $ 19,878 $ 18,882 Other Borrowings: Reverse Repurchases 722 623 723 21 22 21 22 Federal Funds Purchased 300 0 0 265 0 0 200 Bank Notes 1,490 1,590 1,090 100 0 0 0 Senior Debt 991 991 991 990 990 990 990 Subordinated Notes 200 200 200 200 200 200 200 ----------- ------------ ----------- ----------- ----------- ----------- ---------- Total Borrowings $ 23,393 $ 22,535 $ 21,927 $ 21,503 $ 21,586 $ 21,089 $ 20,294 =========== ============ =========== =========== =========== =========== ========== Yield on Loan Portfolio 4.73% 4.80% 4.86% 4.92% 4.96% 5.02% 5.08% Yield on Investments 1.10 1.03 1.06 1.27 1.30 1.34 1.39 ----------- ------------ ----------- ----------- ----------- ----------- ---------- Combined Yield on Earning Assets 4.70% 4.74% 4.81% 4.90% 4.91% 5.00% 5.07% Cost of Deposits 1.95% 2.03% 2.06% 2.12% 2.14% 2.17% 2.25% Cost of Federal Home Loan Bank Borrowings 1.27 1.29 1.32 1.37 1.40 1.43 1.46 Cost of Other Borrowings 2.38 2.49 2.67 4.17 5.03 5.03 4.51 ----------- ------------ ----------- ----------- ----------- ----------- ---------- Combined Cost of Funds 1.78% 1.84% 1.88% 1.94% 1.97% 1.99% 2.06% ----------- ------------ ----------- ----------- ----------- ----------- ---------- Net Interest Rate Spread (Primary Spread) 2.92% 2.90% 2.93% 2.96% 2.94% 3.01% 3.01% =========== ============ =========== =========== =========== =========== ========== Loans Sold $ 231 $ 431 $ 456 $ 336 $ 286 $ 272 $ 252 Loan and MBS Repayments and Payoffs - Month $ 1,918 $ 1,920 $ 1,949 $ 1,728 $ 1,662 $ 1,681 $ 1,473 As a % of Prior Month Loan Balances (Annualized) 32.70% 33.28% 34.14% 30.59% 29.72% 30.37% 26.95% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .56% .57% .60% .62% .63% .64% .63%
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GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS September 2002 - September 2003 (Dollars in millions) 2003 2002 -------------------------- ----------------------------------------------------- FEB JAN DEC NOV OCT SEP ------------ ------------ ------------- ----------- ------------ ------------ Total Assets $ 69,590 $ 69,713 $ 68,406 $ 67,032 $ 66,520 $ 65,515 Cash and Investments $ 1,201 $ 1,957 $ 1,241 $ 844 $ 991 $ 877 Loan Balance (Including MBS) $ 65,598 $ 65,027 $ 64,336 $ 63,463 $ 62,781 $ 61,881 Adjustable Rate Mortgages (Including MBS) $ 63,127 $ 62,511 $ 61,770 $ 60,789 $ 60,106 $ 59,159 Loans Originated - Month $ 2,074 $ 2,338 $ 2,648 $ 2,337 $ 2,660 $ 2,212 Percentage ARMs - Month 90% 90% 89% 88% 89% 91% Percentage Refinances - Month 73% 72% 69% 68% 68% 64% Loans Originated - YTD $ 4,412 $ 2,338 $ 26,683 $ 24,035 $ 21,698 $ 19,038 Percentage ARMs - YTD 90% 90% 92% 92% 92% 93% Percentage Refinances - YTD 73% 72% 62% 61% 60% 59% Total Deposits $ 42,708 $ 42,107 $ 41,039 $ 40,219 $ 39,490 $ 38,749 Total Deposit Net Activity - Month $ 601 $ 1,068 $ 820 $ 729 $ 741 $ 923 Total Deposit Net Activity - YTD $ 1,669 $ 1,068 $ 6,566 $ 5,746 $ 5,017 $ 4,276 Federal Home Loan Bank Borrowings $ 18,337 $ 18,541 $ 18,635 $ 18,129 $ 18,333 $ 18,577 Other Borrowings: Reverse Repurchases 422 522 522 122 21 22 Federal Funds Purchased 0 0 0 450 450 200 Bank Notes 812 1,360 1,210 913 1,175 1,135 Senior Debt 990 990 990 990 989 989 Subordinated Notes 200 200 200 200 200 200 ------------ ------------ ------------- ----------- ------------ ------------ Total Borrowings $ 20,761 $ 21,613 $ 21,557 $ 20,804 $ 21,168 $ 21,123 ============ ============ ============= =========== ============ ============ Yield on Loan Portfolio 5.16% 5.22% 5.28% 5.39% 5.42% 5.50% Yield on Investments 1.32 1.34 1.94 4.04 3.06 3.50 ------------ ------------ ------------- ----------- ------------ ------------ Combined Yield on Earning Assets 5.12% 5.14% 5.25% 5.38% 5.41% 5.49% Cost of Deposits 2.30% 2.47% 2.56% 2.63% 2.74% 2.81% Cost of Federal Home Loan Bank Borrowings 1.51 1.57 1.68 1.82 1.89 1.93 Cost of Other Borrowings 3.20 2.84 2.92 3.11 3.20 3.34 ------------ ------------ ------------- ----------- ------------ ------------ Combined Cost of Funds 2.10% 2.23% 2.32% 2.41% 2.50% 2.56% ------------ ------------ ------------- ----------- ------------ ------------ Net Interest Rate Spread (Primary Spread) 3.02% 2.91% 2.93% 2.97% 2.91% 2.93% ============ ============ ============= =========== ============ ============ Loans Sold $ 251 $ 302 $ 329 $ 328 $ 332 $ 149 Loan and MBS Repayments and Payoffs - Month $ 1,253 $ 1,353 $ 1,510 $ 1,384 $ 1,500 $ 1,238 As a % of Prior Month Loan Balances (Annualized) 23.13% 25.23% 28.55% 26.45% 29.08% 24.34% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .65% .63% .62% .63% .64% .65%
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