-----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, SS4oLtfKYu2pkhqvV9VO5goo9N51qrWAxVv0bGLMaRlKzjd6Hyd2XFxbb7B6I/P8 xFChTExi6/gvkG4XyIhoOQ== 0000042293-04-000014.txt : 20040422 0000042293-04-000014.hdr.sgml : 20040422 20040422165136 ACCESSION NUMBER: 0000042293-04-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040331 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040422 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: 04748657 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 form8k2004q1earnings.txt GDW2004Q1 ================================================================================ 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 20, 2004 --------------------- 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 2004 Earnings Press Release 99.2 March 2004 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 22, 2004 /s/ Russell W. Kettell ------------------------------------------- Russell W. Kettell President and Chief Financial Officer April 20, 2004 Exhibit 99.1 FOR FURTHER INFORMATION CONTACT FOR IMMEDIATE RELEASE William C. Nunan, Group Senior Vice President Telephone: (510) 446-3614 April 20, 2004 GOLDEN WEST REPORTS RECORD FIRST QUARTER EARNINGS AND LOAN ORIGINATIONS Oakland, California: Golden West Financial Corporation, parent of World Savings Bank, announced record diluted earnings per share of $1.93 for the first three months of 2004, up 16% from the $1.67 reported during the same period in 2003. The Company also reported all-time high first quarter mortgage originations of $9.4 billion, up from $6.9 billion one year earlier. In discussing the Company's year-over-year quarterly results, Herbert M. Sandler, Chairman of the Board and Chief Executive Officer of Golden West, remarked, "Our loan volume in the first quarter of 2004 was 35% higher than in the same period of 2003, in large part because of the desirability of our primary product, the adjustable rate mortgage or ARM. ARMs were attractive because the rates on these loans were even less than the more traditional fixed-rate mortgage." Sandler added, "Golden West's growth is especially noteworthy, since early indications are that first quarter mortgage originations in the U.S. market as a whole were considerably lower than in 2003." Continuing his quarterly comparisons, Sandler said, "The record loan volume we generated in the first three months of 2004 far exceeded the payoffs of our existing mortgages. As a result, our loan portfolio, which is our primary earning asset, grew $4.8 billion, or at a 24% annualized rate." He further noted, "Rapid expansion is nothing new. Since the first quarter of last year, the Company's loan balances have increased 24%, providing impetus for earnings growth." Wrapping up his comments on the Company's lending results, Sandler pointed out, "It is important to note that during the first quarter 98% of Golden West's new originations consisted of adjustable rate loans, up from 91% a year ago. This increase is significant, because ARMs help limit the exposure of our earnings to swings in interest rates." Moving to the subject of general and administrative expenses (G&A), Sandler said, "In keeping with the Company's long-standing emphasis on cost control, our numbers remained among the lowest in the financial services industry." Golden West's ratio of G&A to average assets was .95% in the first three months of 2004, down from .98% one year earlier. Sandler continued, "While average assets grew 21% from the first quarter of last year, our G&A expenses rose only 18%. As you would expect, a large portion of the spending increase was used to support record loan volume. The additional costs also reflect our continued investment in people and technology to ensure we have the resources in place to take advantage of future growth opportunities." Touching on an additional earnings related topic, Sandler stated, "Tax expense was lowered $5.8 million in the first quarter by a reduction in the Company's combined state tax rate, which included a $3.8 million decrease in deferred state taxes." Switching to the topic of loan quality, Sandler explained, "A key measurement of the success of our credit risk management is the ratio of nonperforming assets and troubled debt restructured to total assets." At March 31, 2004 Golden West's ratio was .48%, down from .63% one year earlier. "As our low percentage indicates, we remain committed to originating high-quality mortgages in order to minimize credit risk." In other first quarter news, Golden West reported retail deposit growth of $657 million, down from $2.5 billion one year earlier. Commenting on the Company's results, Sandler stated, "A strong stock market together with the low rates being offered on savings accounts have caused savers to look at other investment opportunities. As a result, deposit inflows have slowed from the high levels experienced in 2002 and 2003." Finally, the Company reported that during the first quarter World Savings Bank, Golden West's primary operating subsidiary, successfully brought to market $1.0 billion of floating-rate notes, the first debt issuance by either Golden West or World Savings since the third quarter of 2002. Sandler commented that, "Issuing this debt, which consisted of $700 million of two-year notes and $300 million of five-year notes, provided an additional source of funds to support the growth of our loan portfolio." Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $85 billion as of March 31, 2004. The Company opened its first savings branch in New York state during the first quarter and now operates 492 savings and lending offices in 38 states under the World name. 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 March 31 ------------------------------- 2004 2003 -------------- ------------- Interest Income Interest on loans $ 878,816 $ 773,829 Interest on mortgage-backed securities 43,677 78,915 Interest and dividends on investments 17,264 24,690 -------------- ------------- 939,757 877,434 Interest Expense Interest on deposits 215,900 250,102 Interest on advances 73,038 69,941 Interest on repurchase agreements 6,922 1,269 Interest on other borrowings 24,643 27,381 -------------- ------------- 320,503 348,693 -------------- ------------- Net Interest Income 619,254 528,741 Provision for loan losses 241 4,479 -------------- ------------- Net Interest Income after Provision for 619,013 Loan Losses 524,262 Noninterest Income Fees 40,674 34,511 Gain on the sale of securities, MBS and loans 2,962 15,323 Change in fair value of derivatives 1,082 2,853 Other 15,089 14,375 -------------- ------------- 59,807 67,062 Noninterest Expense General and administrative: Personnel 130,998 104,996 Occupancy 20,394 18,489 Technology and telecommunications 21,019 20,904 Deposit insurance 1,770 1,621 Advertising 5,256 5,977 Other 20,077 17,723 -------------- ------------- 199,514 169,710 Earnings before Taxes on Income 479,306 421,614 Taxes on Income 179,582 161,549 -------------- ------------- Net Earnings $ 299,724 $ 260,065 ============== ============= Basic Earnings Per Share $1.97 $ 1.70 ============== ============= Diluted Earnings Per Share $1.93 $ 1.67 ============== ============= Average common shares outstanding 152,273,637 153,347,780 Average diluted common shares outstanding 155,040,581 155,851,663 Ratios: (a) Net earnings / average stockholders' equity 19.65% 20.32% Net earnings / average assets 1.42% 1.50% Net interest margin (b) 2.99% 3.14% General and administrative expense / average assets .95% .98% Efficiency ratio (c) 29.38% 28.48% (a) Ratios are annualized by multiplying the quarterly computation by four. Averages are computed by adding the beginning balances and each monthend balance during the quarter and dividing by four. (b) Net interest margin is net interest income divided by average 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) Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2004 2003 2003 2003 2003 ------------ ------------ ----------- ----------- ----------- ASSETS Cash $ 248,710 $ 260,823 $ 219,000 $ 267,960 $ 305,998 Securities available for sale at fair value 1,123,463 1,879,443 950,329 604,998 618,377 Purchased mortgage-backed securities available for sale at fair value 19,895 22,071 24,824 27,524 31,727 Purchased mortgage-backed securities held to maturity at cost 437,580 433,319 425,741 106,098 132,654 Mortgage-backed securities with recourse held to maturity at cost (a) 2,342,210 3,650,048 4,078,140 4,667,649 5,281,816 Loans held for sale 157,666 124,917 324,297 502,308 473,303 Loans held in portfolio less allowance for loan losses (a) 80,121,686 74,080,661 68,096,299 63,991,745 61,138,534 ------------ ------------ ----------- ----------- ----------- Total Loans Receivable and Mortgage-Backed 83,079,037 78,311,016 72,949,301 69,295,324 67,058,034 Securities Interest earned but uncollected 191,475 183,761 179,091 198,639 191,377 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,203,589 1,152,339 1,142,582 1,132,714 1,121,798 Foreclosed real estate 13,348 13,904 16,838 11,027 11,362 Premises and equipment, net 367,579 360,327 355,955 355,042 356,301 Other assets 377,570 388,277 344,744 332,321 340,256 ------------ ------------ ----------- ----------- ----------- $ 86,604,771 $ 82,549,890 $76,157,840 $72,198,025 $70,003,503 ============ ============ =========== =========== =========== LIABILITIES and STOCKHOLDERS' EQUITY Deposits $ 47,383,623 $ 46,726,965 $46,145,048 $44,385,717 $43,503,235 Advances from Federal Home Loan Banks 24,805,930 22,000,234 19,689,871 19,927,189 18,882,322 Securities sold under agreements to repurchase 2,672,049 3,021,385 721,639 21,247 21,988 Federal funds purchased 0 0 300,000 265,000 200,000 Bank notes 2,504,917 3,015,854 1,489,946 99,990 0 Senior debt 1,989,944 991,257 990,862 990,467 990,076 Subordinated notes 0 0 200,000 199,955 199,911 Taxes on income 627,431 561,406 580,969 533,122 615,978 Other liabilities 377,018 285,521 404,258 363,584 396,322 Stockholders' equity 6,243,859 5,947,268 5,635,247 5,411,754 5,193,671 ------------ ------------ ----------- ----------- ----------- $86,604,771 $82,549,890 $76,157,840 $72,198,025 $70,003,503 ============ ============ =========== =========== =========== Book value per common share $ 40.95 $ 39.10 $ 37.10 $ 35.50 $ 34.00 Common shares outstanding 152,492,139 152,119,108 151,900,958 152,451,133 152,774,708 (a) During the first quarter of 2004, the Company desecuritized $1 billion of Mortgage-backed securities 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 2004 2003 2003 2003 2003 -------------- -------------- -------------- -------------- -------------- Net interest income $ 619,254 $ 584,692 $ 553,330 $ 541,621 $ 528,741 Provision for loan losses 241 1,802 2,082 3,501 4,479 Noninterest income 59,807 72,598 90,740 82,930 67,062 Noninterest expense 199,514 192,572 181,053 177,180 169,710 -------------- -------------- -------------- -------------- -------------- Earnings before taxes on income 479,306 462,916 460,935 443,870 421,614 Taxes on income 179,582 172,261 178,029 171,397 161,549 -------------- -------------- -------------- -------------- -------------- Net earnings $ 299,724 $ 290,655 $ 282,906 $ 272,473 $ 260,065 ============== ============== ============== ============== ============== Basic EPS $ 1.97 $ 1.91 $ 1.86 $ 1.79 $ 1.70 Diluted EPS $ 1.93 $ 1.88 $ 1.83 $ 1.76 $ 1.67 Average common shares outstanding 152,273,637 152,001,578 152,180,798 152,582,771 153,347,780 Average diluted common shares outstanding 155,040,581 154,830,609 154,810,821 155,091,780 155,851,663 Number of shares repurchased and retired 0 0 630,000 486,975 839,395 Cost of shares repurchased $ 0 $ 0 $ 53,407 $ 37,086 $ 60,737 Remaining number of shares authorized for repurchase 9,328,179 9,328,179 9,328,179 9,958,179 10,445,154 Ratios: (a) Net earnings / average stockholders' equity (ROE) 19.65% 20.09% 20.48% 20.50% 20.32% Net earnings / average assets (ROA) 1.42% 1.47% 1.53% 1.53% 1.50% Net interest margin (b) 2.99% 3.01% 3.07% 3.13% 3.14% General and administrative expense / average assets .95% .97% .98% .99% .98% Efficiency ratio (c) 29.38% 29.30% 28.11% 28.37% 28.48% Loan loss reserve $ 289,351 $ 289,937 $ 288,949 $ 287,868 $ 284,673 Net loan chargeoffs $ 827 $ 814 $ 1,001 $ 306 $ 903 Stockholders' equity / total assets 7.21% 7.20% 7.40% 7.50% 7.42% Total deposit net activity $ 656,658 $ 581,917 $ 1,759,331 $ 882,482 $ 2,464,438 (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 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 -------------------------------------------------------------------------------------- Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2004 2003 2003 2003 2003 -------------- -------------- -------------- -------------- -------------- AVERAGE BALANCES (a) Cash and investments $ 1,641,994 $ 1,409,734 $ 1,275,081 $ 1,099,522 $ 1,331,028 Loans receivable and mortgage-backed securities 80,498,053 75,544,443 70,888,271 68,162,253 65,949,782 Investment in capital stock of Federal Home Loan Banks 1,165,153 1,146,948 1,137,138 1,126,629 1,097,405 Deposits 47,029,050 46,448,866 45,314,936 43,891,768 42,339,391 Advances from Federal Home Loan Banks 23,231,041 20,642,344 19,417,796 19,765,434 18,598,691 Securities sold under agreements to repurchase 2,558,780 1,921,788 522,116 21,557 372,164 Other borrowings 4,351,662 3,219,452 2,399,344 1,331,453 2,085,239 Stockholders' equity 6,100,369 5,787,207 5,525,243 5,315,729 5,118,183 Total Average Assets 84,252,424 79,029,081 74,194,553 71,279,693 69,428,026 Average Earning Assets 82,963,346 77,773,138 72,951,855 70,035,195 68,047,446 Average Interest-Bearing Liabilities 77,170,533 72,232,450 67,654,192 65,010,212 63,395,485 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage-backed securities $ 83,079,037 $ 78,311,016 $ 72,949,301 $ 69,295,324 $ 67,058,034 Adjustable rate loans receivable and mortgage-backed securities 79,889,765 75,238,723 69,528,396 66,078,182 63,915,960 New real estate loans originated $ 9,393,862 $ 10,905,670 $ 10,092,199 $ 8,044,095 $ 6,942,757 New adjustable rate mortgages as a percentage of new real estate loans originated 98% 98% 93% 91% 91% New refinanced mortgages as a percentage of new real estate loans originated 72% 70% 70% 70% 72% LOANS SOLD AND SERVICED DATA Loan sales $ 131,589 $ 401,091 $ 1,117,899 $ 894,345 $ 804,541 Loans serviced for others 5,438,165 5,764,986 5,886,668 5,653,002 5,566,570 Balance of capitalized mortgage servicing rights 82,503 88,967 92,098 82,060 74,192 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $ 399,904 $ 410,064 $ 409,001 $ 436,595 $ 432,479 Foreclosed real estate 13,348 13,904 16,838 11,027 11,362 ------------ ------------ ------------ ------------ ------------ Total nonperforming assets $ 413,252 $ 423,968 $ 425,839 $ 447,622 $ 443,841 ============ ============ ============ ============ ============ Ratio of nonperforming assets (NPAs) to total assets .48% .51% .56% .62% .63% Ratio of troubled debt restructured (TDRs) to total assets .01% .00% .00% .00% .00% Ratio of NPAs and TDRs to total assets .48% .51% .56% .62% .63% SPREAD DATA Yield on loan portfolio 4.58% 4.61% 4.73% 4.92% 5.08% Yield on interest-earning investments 1.05% .93% 1.10% 1.27% 1.39% Yield on interest-earning assets 4.55% 4.54% 4.70% 4.90% 5.07% Cost of deposits 1.85% 1.85% 1.95% 2.12% 2.25% Cost of borrowings 1.32% 1.37% 1.45% 1.58% 1.67% Cost of funds 1.63% 1.67% 1.78% 1.94% 2.06% Yield on interest-earning assets less cost of funds (Primary Spread) 2.92% 2.87% 2.92% 2.96% 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 20, 2004 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, 2004. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $85 billion as of March 31, 2004. The Company currently operates 492 savings and lending offices in 38 states under the World name. 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 2003 - March 2004 (Dollars in millions) 2004 2003 -------------------------------------- -------------------------------------------------- MAR FEB JAN DEC NOV OCT SEP ----------- ------------ ----------- ----------- ----------- ----------- ----------- Total Assets $ 86,605 $ 84,945 $ 82,910 $ 82,550 $ 79,661 $ 77,748 $ 76,158 Cash and Investments $ 1,372 $ 1,839 $ 1,216 $ 2,140 $ 1,285 $ 1,045 $ 1,169 Loans and MBS $ 83,079 $ 81,003 $ 79,600 $ 78,311 $ 76,272 $ 74,645 $ 72,949 Adjustable Rate Mortgages and MBS $ 79,890 $ 78,042 $ 76,769 $ 75,239 $ 73,222 $ 71,521 $ 69,528 Loans Originated - Month $ 3,839 $ 2,690 $ 2,865 $ 3,761 $ 3,276 $ 3,869 $ 3,698 Percentage ARMs - Month 98% 98% 98% 98% 98% 98% 97% Percentage Refinances - Month 72% 74% 71% 71% 70% 69% 67% Loans Originated - YTD $ 9,394 $ 5,555 $ 2,865 $ 35,985 $ 32,224 $ 28,948 $ 25,079 Percentage ARMs - YTD 98% 98% 98% 94% 93% 92% 92% Percentage Refinances - YTD 72% 72% 71% 70% 70% 70% 71% Total Deposits $ 47,384 $ 47,131 $ 46,875 $ 46,727 $ 46,489 $ 46,434 $ 46,145 Total Deposit Net Activity - Month $ 253 $ 256 $ 148 $ 238 $ 55 $ 289 $ 384 Total Deposit Net Activity - YTD $ 657 $ 404 $ 148 $ 5,688 $ 5,450 $ 5,395 $ 5,106 Federal Home Loan Bank Borrowings $ 24,806 $ 24,110 $ 22,008 $ 22,000 $ 20,689 $ 20,190 $ 19,690 Other Borrowings: Reverse Repurchases 2,672 1,971 2,571 3,021 2,572 1,372 722 Federal Funds Purchased 0 0 0 0 0 100 300 Bank Notes 2,505 3,509 3,413 3,016 1,971 1,837 1,490 Senior Debt 1,990 992 991 991 991 991 991 Subordinated Notes 0 0 0 0 0 0 200 ----------- ------------ ----------- ----------- ----------- ----------- ----------- Total Borrowings $ 31,973 $ 30,582 $ 28,983 $ 29,028 $ 26,223 $ 24,490 $ 23,393 =========== ============ =========== =========== =========== =========== =========== Yield on Loan Portfolio 4.58% 4.61% 4.60% 4.61% 4.64% 4.68% 4.73% Yield on Interest-Earning Investments 1.05 1.05 1.04 .93 1.03 1.04 1.10 ----------- ------------ ----------- ----------- ----------- ----------- ----------- Combined Yield on Interest-Earning Assets 4.55% 4.56% 4.57% 4.54% 4.61% 4.65% 4.70% Cost of Deposits 1.85% 1.85% 1.85% 1.85% 1.86% 1.87% 1.95% Cost of Federal Home Loan Bank Borrowings 1.23 1.25 1.28 1.28 1.28 1.28 1.27 Cost of Other Borrowings 1.64 1.68 1.66 1.66 1.80 1.97 2.38 ----------- ------------ ----------- ----------- ----------- ----------- ----------- Combined Cost of Funds 1.63% 1.65% 1.67% 1.67% 1.69% 1.71% 1.78% ----------- ------------ ----------- ----------- ----------- ----------- ----------- Net Interest Rate Spread (Primary Spread) 2.92% 2.91% 2.90% 2.87% 2.92% 2.94% 2.92% =========== ============ =========== =========== =========== =========== =========== Loans Sold $ 51 $ 31 $ 50 $ 113 $ 83 $ 205 $ 231 Loan and MBS Repayments and Payoffs - Month $ 1,949 $ 1,401 $ 1,323 $ 1,717 $ 1,543 $ 1,845 $ 1,918 As a % of Prior Month Loan Balances (Annualized) 28.87% 21.13% 20.28% 27.02% 24.81% 30.35% 32.30% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .48% .52% .52% .51% .52% .54% .56% Page 1 of 2
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS March 2003 - March 2004 (Dollars in millions) 2003 -------------------------------------------------------------------------------- AUG JUL JUN MAY APR MAR ------------ ------------ ------------- ----------- ------------ ------------ Total Assets $ 75,028 $ 73,395 $ 72,198 $ 72,059 $ 70,859 $ 70,004 Cash and Investments $ 1,693 $ 1,365 $ 873 $ 1,570 $ 1,031 $ 924 Loans and MBS $ 71,270 $ 70,038 $ 69,295 $ 68,474 $ 67,821 $ 67,058 Adjustable Rate Mortgages and MBS $ 67,843 $ 66,868 $ 66,078 $ 65,318 $ 64,633 $ 63,916 Loans Originated - Month $ 3,237 $ 3,157 $ 2,786 $ 2,606 $ 2,652 $ 2,531 Percentage ARMs - Month 92% 90% 92% 91% 90% 91% Percentage Refinances - Month 71% 71% 70% 70% 71% 71% Loans Originated - YTD $ 21,381 $ 18,144 $ 14,987 $ 12,201 $ 9,595 $ 6,943 Percentage ARMs - YTD 91% 91% 91% 90% 90% 91% Percentage Refinances - YTD 71% 71% 71% 71% 72% 72% Total Deposits $ 45,761 $ 44,968 $ 44,386 $ 44,083 $ 43,595 $ 43,503 Total Deposit Net Activity - Month $ 793 $ 582 $ 303 $ 488 $ 92 $ 795 Total Deposit Net Activity - YTD $ 4,722 $ 3,929 $ 3,347 $ 3,044 $ 2,556 $ 2,464 Federal Home Loan Bank Borrowings $ 19,131 $ 18,923 $ 19,927 $ 20,374 $ 19,878 $ 18,882 Other Borrowings: Reverse Repurchases 623 723 21 22 21 22 Federal Funds Purchased 0 0 265 0 0 200 Bank Notes 1,590 1,090 100 0 0 0 Senior Debt 991 991 990 990 990 990 Subordinated Notes 200 200 200 200 200 200 ------------ ------------ ------------- ----------- ------------ ------------ Total Borrowings $ 22,535 $ 21,927 $ 21,503 $ 21,586 $ 21,089 $ 20,294 ============ ============ ============= =========== ============ ============ Yield on Loan Portfolio 4.80% 4.86% 4.92% 4.96% 5.02% 5.08% Yield on Interest-Earning Investments 1.03 1.06 1.27 1.30 1.34 1.39 ------------ ------------ ------------- ----------- ------------ ------------ Combined Yield on Interest-Earning Assets 4.74% 4.81% 4.90% 4.91% 5.00% 5.07% Cost of Deposits 2.03% 2.06% 2.12% 2.14% 2.17% 2.25% Cost of Federal Home Loan Bank Borrowings 1.29 1.32 1.37 1.40 1.43 1.46 Cost of Other Borrowings 2.49 2.67 4.17 5.03 5.03 4.51 ------------ ------------ ------------- ----------- ------------ ------------ Combined Cost of Funds 1.84% 1.88% 1.94% 1.97% 1.99% 2.06% ------------ ------------ ------------- ----------- ------------ ------------ Net Interest Rate Spread (Primary Spread) 2.90% 2.93% 2.96% 2.94% 3.01% 3.01% ============ ============ ============= =========== ============ ============ Loans Sold $ 431 $ 456 $ 336 $ 286 $ 272 $ 252 Loan and MBS Repayments and Payoffs - Month $ 1,920 $ 1,949 $ 1,728 $ 1,662 $ 1,681 $ 1,473 As a % of Prior Month Loan Balances (Annualized) 32.90% 33.75% 30.28% 29.41% 30.07% 26.72% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .57% .60% .62% .63% .64% .63% Page 2 of 2
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