-----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, OdHGn6rFzhf860Nk6Ht8gKq5IhYecwxr319iQzWOm5lHG9pWLSM1zdHk4uKIc9JI RHB/aQUgXuLxUnfKjNCAgw== 0001157523-04-006540.txt : 20040721 0001157523-04-006540.hdr.sgml : 20040721 20040720174216 ACCESSION NUMBER: 0001157523-04-006540 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040720 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040721 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: 04922771 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 a4683554.txt GOLDEN WEST FINANCIAL CORP. 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): July 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 Second Quarter 2004 Earnings Press Release 99.2 June 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: July 20, 2004 /s/ Russell W. Kettell ------------------------------ Russell W. Kettell President and Chief Financial Officer EX-99.1 2 a4683554ex991.txt SECOND QUARTER 2004 EARNINGS PRESS RELEASE EXHIBIT 99.1 Golden West Financial Reports All-Time High Earnings and Loan Originations OAKLAND, Calif.--(BUSINESS WIRE)--July 20, 2004--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, announced record diluted earnings per share of $2.04 in the second quarter, up 16% from the $1.76 reported during the same period in 2003. Per share profits for the first half of 2004 reached $3.98, a 16% increase from the $3.43 posted in the first six months of 2003. The Company also announced record loan originations of $12.4 billion in the second quarter, up 55% from the $8.0 billion reported one year earlier. For the first six months of 2004, new mortgage volume totaled $21.8 billion, a 46% increase from the $15.0 billion recorded in the first half of 2003. Starting with a discussion of the Company's rapid loan growth, Marion Sandler, Chairman of the Board and Chief Executive Officer, said, "As usual, the popularity of our primary product, the monthly adjustable rate mortgage or ARM, is influenced by what's happening with fixed-rate mortgages, which are the borrowers' major alternative. While the cost of fixed-rate loans jumped up in the second quarter, interest rates on ARMs remained low and stable. Our lending team took advantage of this favorable environment and produced record new volume." Sandler added, "The dramatic increase in Golden West's loan originations is noteworthy because it is in stark contrast to the rest of the U.S. mortgage market, which based on early indications, is experiencing a significant decline." Continuing, Sandler remarked, "The Company's mortgage portfolio has increased substantially this year, since our record loan volume far exceeded the payoffs of existing mortgages." Golden West's loan balances grew $6.0 billion, or at a 29% annualized rate, in the second quarter, and increased $10.8 billion, or at a 28% annualized rate, during the first six months of the year. Sandler added, "This sizable growth is significant because an expanding mortgage portfolio, which is our major earning asset, is the key contributor to increasing profits." Wrapping up her comments on the Company's lending results, Sandler stated, "It is important to note that during the second quarter 99% of Golden West's new originations consisted of monthly adjustable rate loans, up from 91% a year ago. ARMs are a wonderful product. They have many consumer benefits, including payment flexibility, and are desirable from the Company's point of view as well, because adjustables help limit earnings exposure to rising interest rates." Discussing other factors related to the Company's profits, Sandler pointed out, "Some of the benefit we enjoyed from the increased size of our loan portfolio was offset by a decline in our primary spread, which is the difference between what we earn on our loans and other assets and what we pay for savings and borrowings. As market interest rates started to move up this past quarter in anticipation of the June Federal Funds rate increase by the Federal Reserve, our spread experienced some compression." In the second quarter, Golden West's spread averaged 2.86%, down from 2.98% one year earlier. Covering a final earnings related subject, Sandler commented on the Company's general and administrative expenses (G&A). She noted, "Total G&A was up 17% from the second quarter of last year. As you would expect, a large portion of this spending increase supported our record loan volume. In addition, we continued to invest in people and technology to ensure we have the resources to take advantage of growth opportunities." Sandler added, "Despite the rise in expenses, our G&A ratio improved from the second quarter last year due to the Company's strong asset growth, and our numbers remained among the lowest in the financial services industry." Golden West's ratio of G&A to average assets was .93% in the second quarter of 2004, compared to .99% one year earlier. Switching to the topic of credit risk, Sandler explained, "The Company's history of impressive loan quality continued in the second quarter. A key measurement of the success of our risk management is the ratio of nonperforming assets and troubled debt restructured to total assets." At June 30, 2004 Golden West's ratio was .41%, down from just .62% one year earlier. "As our low percentage indicates, we remain committed to originating high-quality mortgages to minimize credit risk." In other second quarter news, Golden West reported retail deposit growth of $1.2 billion, up from $882 million one year earlier. For the first six months of 2004, savings inflows amounted to $1.9 billion, compared to $3.3 billion in the first half of 2003. Commenting on these results, Sandler stated, "In the second quarter the Company posted solid deposit growth as customers responded favorably to our featured products. For the first six months of 2004, however, total deposit growth was down compared to last year, primarily because of the exceptionally strong inflows experienced in the first three months of 2003." Finally, the Company reported that for the second consecutive quarter World Savings Bank, Golden West's primary operating subsidiary, brought to market $1.0 billion of long-term senior debt. Sandler observed, "This borrowing provides an important source of funds to support the growth of our loan portfolio. We were able to issue debt at favorable price levels because of our high credit ratings, Aa3 and AA- by Moody's Investors Services and Standard and Poor's, respectively, which are among the highest for any financial institution." Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $90 billion as of June 30, 2004. The Company has one of the most extensive thrift branch systems in the country, with 274 savings branches in 10 states and lending operations in 38 states. 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 on 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. 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 Six Months Ended June 30 June 30 ------------------------- ------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Interest Income Interest on loans $931,645 $781,855 $1,810,461 $1,555,684 Interest on mortgage-backed securities 32,058 67,939 75,735 146,854 Interest and dividends on investments 14,029 21,529 31,293 46,219 ------------ ------------ ------------ ------------ 977,732 871,323 1,917,489 1,748,757 Interest Expense Interest on deposits 219,454 236,128 435,354 486,230 Interest on advances 82,944 69,715 155,982 139,656 Interest on repurchase agreements 8,718 13 15,640 1,282 Interest on other borrowings 23,930 23,846 48,573 51,227 ------------ ------------ ------------ ------------ 335,046 329,702 655,549 678,395 ------------ ------------ ------------ ------------ Net Interest Income 642,686 541,621 1,261,940 1,070,362 Provision for loan losses 392 3,501 633 7,980 ------------ ------------ ------------ ------------ Net Interest Income after Provision for Loan Losses 642,294 538,120 1,261,307 1,062,382 Noninterest Income Fees 56,635 41,920 97,309 76,431 Gain on the sale of securities, MBS and loans 6,291 21,192 9,253 36,515 Change in fair value of derivatives 59 2,793 1,141 5,646 Other 18,162 17,025 33,251 31,400 ------------ ------------ ------------ ------------ 81,147 82,930 140,954 149,992 Noninterest Expense General and administrative: Personnel 137,305 110,688 268,303 215,684 Occupancy 20,744 18,988 41,138 37,477 Technology and telecom- munications 19,283 20,055 40,302 40,959 Deposit insurance 1,790 1,652 3,560 3,273 Advertising 5,223 5,314 10,479 11,291 Other 23,188 20,483 43,265 38,206 ------------ ------------ ------------ ------------ 207,533 177,180 407,047 346,890 Earnings before Taxes on Income 515,908 443,870 995,214 865,484 Taxes on Income 199,190 171,397 378,772 332,946 ------------ ------------ ------------ ------------ Net Earnings $316,718 $272,473 $616,442 $532,538 ============ ============ ============ ============ Basic Earnings Per Share $2.07 $1.79 $4.04 $3.48 ============ ============ ============ ============ Diluted Earnings Per Share $2.04 $1.76 $3.98 $3.43 ============ ============ ============ ============ Average common shares outstanding 152,652,032 152,582,771 152,462,835 152,963,162 Average diluted common shares outstanding 155,213,548 155,091,780 155,041,181 155,424,954 Ratios: (a) Net earnings / average stockholders' equity 19.79% 20.50% 19.72% 20.40% Net earnings / average assets 1.41% 1.53% 1.42% 1.51% Net interest margin (b) 2.91% 3.13% 2.94% 3.13% General and administrative expense / average assets .93% .99% .94% .99% Efficiency ratio (c) 28.67% 28.37% 29.01% 28.43% (a) Ratios are annualized by multiplying the quarterly computation by four and the semi-annual computations by two. Averages are computed by adding the beginning balances and each monthend balance during the quarter and six month period and dividing by four and seven, respectively. (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) Jun. 30 Mar. 31 Dec. 31 2004 2004 2003 ------------ ------------ ------------ ASSETS Cash $296,330 $248,710 $260,823 Securities available for sale at fair value 1,539,885 1,123,463 1,879,443 Purchased mortgage-backed securities available for sale at fair value 18,401 19,895 22,071 Purchased mortgage-backed securities held to maturity at cost 411,881 437,580 433,319 Mortgage-backed securities with recourse held to maturity at cost (a) 2,083,852 2,342,210 3,650,048 Loans held for sale 107,692 157,666 124,917 Loans held in portfolio less allowance for loan losses (a) 86,471,707 80,121,686 74,080,661 ------------ ------------ ------------ Total Loans Receivable and Mortgage-Backed Securities 89,093,533 83,079,037 78,311,016 Interest earned but uncollected 203,145 191,475 183,761 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,318,642 1,203,589 1,152,339 Foreclosed real estate 9,885 13,348 13,904 Premises and equipment, net 376,501 367,579 360,327 Other assets 320,381 377,570 388,277 ------------ ------------ ------------ $93,158,302 $86,604,771 $82,549,890 ============ ============ ============ LIABILITIES and STOCKHOLDERS' EQUITY Deposits $48,611,353 $47,383,623 $46,726,965 Advances from Federal Home Loan Banks 28,712,498 24,805,930 22,000,234 Securities sold under agreements to repurchase 3,470,761 2,672,049 3,021,385 Federal funds purchased 0 0 0 Bank notes 1,786,668 2,504,917 3,015,854 Senior debt 2,989,726 1,989,944 991,257 Subordinated notes 0 0 0 Taxes on income 587,357 627,431 561,406 Other liabilities 434,178 377,018 285,521 Stockholders' equity 6,565,761 6,243,859 5,947,268 ------------ ------------ ------------ $93,158,302 $86,604,771 $82,549,890 ============ ============ ============ Book value per common share $42.98 $40.95 $39.10 Common shares outstanding 152,749,211 152,492,139 152,119,108 Sep. 30 Jun. 30 2003 2003 ------------ ------------ ASSETS Cash $219,000 $267,960 Securities available for sale at fair value 950,329 604,998 Purchased mortgage-backed securities available for sale at fair value 24,824 27,524 Purchased mortgage-backed securities held to maturity at cost 425,741 106,098 Mortgage-backed securities with recourse held to maturity at cost (a) 4,078,140 4,667,649 Loans held for sale 324,297 502,308 Loans held in portfolio less allowance for loan losses (a) 68,096,299 63,991,745 ------------ ------------ Total Loans Receivable and Mortgage- Backed Securities 72,949,301 69,295,324 Interest earned but uncollected 179,091 198,639 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,142,582 1,132,714 Foreclosed real estate 16,838 11,027 Premises and equipment, net 355,955 355,042 Other assets 344,744 332,321 ------------ ------------ $76,157,840 $72,198,025 ============ ============ LIABILITIES and STOCKHOLDERS' EQUITY Deposits $46,145,048 $44,385,717 Advances from Federal Home Loan Banks 19,689,871 19,927,189 Securities sold under agreements to repurchase 721,639 21,247 Federal funds purchased 300,000 265,000 Bank notes 1,489,946 99,990 Senior debt 990,862 990,467 Subordinated notes 200,000 199,955 Taxes on income 580,969 533,122 Other liabilities 404,258 363,584 Stockholders' equity 5,635,247 5,411,754 ------------ ------------ $76,157,840 $72,198,025 ============ ============ Book value per common share $37.10 $35.50 Common shares outstanding 151,900,958 152,451,133 (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 -------------------------------------- Jun. 30 Mar. 31 Dec. 31 2004 2004 2003 ------------ ------------ ------------ Net interest income $642,686 $619,254 $584,692 Provision for loan losses 392 241 1,802 Noninterest income 81,147 59,807 72,598 Noninterest expense 207,533 199,514 192,572 ------------ ------------ ------------ Earnings before taxes on income 515,908 479,306 462,916 Taxes on income (a) 199,190 179,582 172,261 ------------ ------------ ------------ Net earnings $316,718 $299,724 $290,655 ============ ============ ============ Basic EPS $2.07 $1.97 $1.91 Diluted EPS $2.04 $1.93 $1.88 Average common shares outstanding 152,652,032 152,273,637 152,001,578 Average diluted common shares outstanding 155,213,548 155,040,581 154,830,609 Number of shares repurchased and retired 0 0 0 Cost of shares repurchased $0 $0 $0 Remaining number of shares authorized for repurchase 9,328,179 9,328,179 9,328,179 Ratios: (b) Net earnings / average stockholders' equity (ROE) 19.79% 19.65% 20.09% Net earnings / average assets (ROA) 1.41% 1.42% 1.47% Net interest margin (c) 2.91% 2.99% 3.01% General and administrative expense / average assets .93% .95% .97% Efficiency ratio (d) 28.67% 29.38% 29.30% Loan loss reserve $289,996 $289,351 $289,937 Net loan chargeoffs (recoveries) $(253) $827 $814 Stockholders' equity / total assets 7.05% 7.21% 7.20% Total deposit net activity $1,227,730 $656,658 $581,917 For the Quarter Ended ------------------------- Sep. 30 Jun. 30 2003 2003 ------------ ------------ Net interest income $553,330 $541,621 Provision for loan losses 2,082 3,501 Noninterest income 90,740 82,930 Noninterest expense 181,053 177,180 ------------ ------------ Earnings before taxes on income 460,935 443,870 Taxes on income (a) 178,029 171,397 ------------ ------------ Net earnings $282,906 $272,473 ============ ============ Basic EPS $1.86 $1.79 Diluted EPS $1.83 $1.76 Average common shares outstanding 152,180,798 152,582,771 Average diluted common shares outstanding 154,810,821 155,091,780 Number of shares repurchased and retired 630,000 486,975 Cost of shares repurchased $53,407 $37,086 Remaining number of shares authorized for repurchase 9,328,179 9,958,179 Ratios: (b) Net earnings / average stockholders' equity (ROE) 20.48% 20.50% Net earnings / average assets (ROA) 1.53% 1.53% Net interest margin (c) 3.07% 3.13% General and administrative expense / average assets .98% .99% Efficiency ratio (d) 28.11% 28.37% Loan loss reserve $288,949 $287,868 Net loan chargeoffs (recoveries) $1,001 $306 Stockholders' equity / total assets 7.40% 7.50% Total deposit net activity $1,759,331 $882,482 (a) From quarter to quarter, the effective tax rate may fluctuate due to changes in the volume of business activity in the various states where we operate. (b) 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. (c) Net interest margin is net interest income divided by average earning assets. (d) 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 -------------------------------------- Jun. 30 Mar. 31 Dec. 31 2004 2004 2003 ------------ ------------ ------------ AVERAGE BALANCES (a) Cash and investments $1,650,596 $1,641,994 $1,409,734 Loans receivable and mortgage-backed securities 85,818,380 80,498,053 75,544,443 Investment in capital stock of Federal Home Loan Banks 1,245,010 1,165,153 1,146,948 Deposits 47,798,007 47,029,050 46,448,866 Advances from Federal Home Loan Banks 26,735,540 23,231,041 20,642,344 Securities sold under agreements to repurchase 3,021,646 2,558,780 1,921,788 Other borrowings 4,654,051 4,351,662 3,219,452 Stockholders' equity 6,401,862 6,100,369 5,787,207 Total Average Assets 89,649,483 84,252,424 79,029,081 Average Earning Assets 88,389,797 82,963,346 77,773,138 Average Interest-Bearing Liabilities 82,209,244 77,170,533 72,232,450 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage-backed securities $89,093,533 $83,079,037 $78,311,016 Adjustable rate loans receivable and mortgage- backed securities 85,731,774 79,889,765 75,238,723 New real estate loans originated $12,439,588 $9,393,862 $10,905,670 New adjustable rate mortgages as a percentage of new real estate loans originated 99% 98% 98% New refinanced mortgages as a percentage of new real estate loans originated 71% 72% 70% LOANS SOLD AND SERVICED DATA Loan sales $224,874 $131,589 $401,091 Loans serviced for others 5,095,475 5,438,165 5,764,986 Balance of capitalized mortgage servicing rights 76,217 82,503 88,967 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $368,502 $399,904 $410,064 Foreclosed real estate 9,885 13,348 13,904 ------------ ------------ ------------ Total nonperforming assets $378,387 $413,252 $423,968 ============ ============ ============ Ratio of nonperforming assets (NPAs) to total assets .41% .48% .51% Ratio of troubled debt restructured (TDRs) to total assets .00% .01% .00% Ratio of NPAs and TDRs to total assets .41% .48% .51% SPREAD DATA Yield on loan portfolio 4.50% 4.58% 4.61% Yield on interest-earning investments 1.35% 1.05% .93% Yield on interest-earning assets 4.46% 4.55% 4.54% Cost of deposits 1.88% 1.85% 1.85% Cost of borrowings 1.43% 1.32% 1.37% Cost of funds 1.69% 1.63% 1.67% Yield on interest-earning assets less cost of funds (Primary Spread) at quarterend 2.77% 2.92% 2.87% Average Primary Spread for the quarter 2.86% 2.90% 2.91% For the Quarter Ended ------------------------- Sep. 30 Jun. 30 2003 2003 ------------ ------------ AVERAGE BALANCES (a) Cash and investments $1,275,081 $1,099,522 Loans receivable and mortgage-backed securities 70,888,271 68,162,253 Investment in capital stock of Federal Home Loan Banks 1,137,138 1,126,629 Deposits 45,314,936 43,891,768 Advances from Federal Home Loan Banks 19,417,796 19,765,434 Securities sold under agreements to repurchase 522,116 21,557 Other borrowings 2,399,344 1,331,453 Stockholders' equity 5,525,243 5,315,729 Total Average Assets 74,194,553 71,279,693 Average Earning Assets 72,951,855 70,035,195 Average Interest-Bearing Liabilities 67,654,192 65,010,212 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage-backed securities $72,949,301 $69,295,324 Adjustable rate loans receivable and mortgage-backed securities 69,528,396 66,078,182 New real estate loans originated $10,092,199 $8,044,095 New adjustable rate mortgages as a percentage of new real estate loans originated 93% 91% New refinanced mortgages as a percentage of new real estate loans originated 70% 70% LOANS SOLD AND SERVICED DATA Loan sales $1,117,899 $894,345 Loans serviced for others 5,886,668 5,653,002 Balance of capitalized mortgage servicing rights 92,098 82,060 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $409,001 $436,595 Foreclosed real estate 16,838 11,027 ------------ ------------ Total nonperforming assets $425,839 $447,622 ============ ============ Ratio of nonperforming assets (NPAs) to total assets .56% .62% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% Ratio of NPAs and TDRs to total assets .56% .62% SPREAD DATA Yield on loan portfolio 4.73% 4.92% Yield on interest-earning investments 1.10% 1.27% Yield on interest-earning assets 4.70% 4.90% Cost of deposits 1.95% 2.12% Cost of borrowings 1.45% 1.58% Cost of funds 1.78% 1.94% Yield on interest-earning assets less cost of funds (Primary Spread) at quarterend 2.92% 2.96% Average Primary Spread for the quarter 2.93% 2.98% (a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four. CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 EX-99.2 3 a4683554ex992.txt JUNE 2004 13-MONTH STATISTICAL DATA PRESS RELEASE EXHIBIT 99.2 Golden West Financial Releases Thirteen Month Statistical Data OAKLAND, Calif.--(BUSINESS WIRE)--July 20, 2004--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, today released statistical data for the thirteen months ended June 30, 2004. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $90 billion as of June 30, 2004. The Company has one of the most extensive thrift branch systems in the country, with 274 savings branches in 10 states and lending operations in 38 states. 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. GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS June 2003 - June 2004 (Dollars in millions) 2004 ------------------------------------ JUN MAY APR MAR -------- -------- -------- -------- Total Assets $93,158 $90,336 $88,499 $86,605 Cash and Investments $1,836 $1,706 $1,688 $1,372 Loans and MBS $89,094 $86,437 $84,664 $83,079 Adjustable Rate Mortgages and MBS $85,732 $83,278 $81,549 $79,890 Loans Originated - Month $4,791 $3,853 $3,795 $3,839 Percentage ARMs - Month 99% 98% 98% 98% Percentage Refinances - Month 69% 72% 73% 72% Loans Originated - YTD $21,833 $17,042 $13,189 $9,394 Percentage ARMs - YTD 98% 98% 98% 98% Percentage Refinances - YTD 72% 72% 73% 72% Total Deposits $48,611 $47,844 $47,353 $47,384 Total Deposit Net Activity - Month $767 $491 $(31) $253 Total Deposit Net Activity - YTD $1,884 $1,117 $626 $657 Federal Home Loan Bank Borrowings $28,712 $27,210 $26,214 $24,806 Other Borrowings: Reverse Repurchases 3,471 2,872 3,072 2,672 Federal Funds Purchased 0 0 0 0 Bank Notes 1,787 2,865 2,500 2,505 Senior Debt 2,990 1,990 1,990 1,990 Subordinated Notes 0 0 0 0 -------- -------- -------- -------- Total Borrowings $36,960 $34,937 $33,776 $31,973 ======== ======== ======== ======== Yield on Loan Portfolio 4.50% 4.52% 4.55% 4.58% Yield on Interest-Earning Investments 1.35 1.04 1.05 1.05 -------- -------- -------- -------- Combined Yield on Interest- Earning Assets 4.46% 4.47% 4.51% 4.55% Cost of Deposits 1.88% 1.85% 1.85% 1.85% Cost of Federal Home Loan Bank Borrowings 1.35 1.24 1.22 1.23 Cost of Other Borrowings 1.73 1.61 1.61 1.64 -------- -------- -------- -------- Combined Cost of Funds 1.69% 1.63% 1.62% 1.63% -------- -------- -------- -------- Net Interest Rate Spread (Primary Spread) 2.77% 2.84% 2.89% 2.92% ======== ======== ======== ======== Loans Sold $79 $81 $64 $51 Loan and MBS Repayments and Payoffs - Month $2,308 $2,090 $2,099 $1,949 As a % of Prior Month Loan Balances (Annualized) 32.18% 29.62% 30.32% 28.87% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .41% .44% .45% .48% 2004 2003 ----------------- -------- FEB JAN DEC -------- -------- -------- Total Assets $84,945 $82,910 $82,550 Cash and Investments $1,839 $1,216 $2,140 Loans and MBS $81,003 $79,600 $78,311 Adjustable Rate Mortgages and MBS $78,042 $76,769 $75,239 Loans Originated - Month $2,690 $2,865 $3,761 Percentage ARMs - Month 98% 98% 98% Percentage Refinances - Month 74% 71% 71% Loans Originated - YTD $5,555 $2,865 $35,985 Percentage ARMs - YTD 98% 98% 94% Percentage Refinances - YTD 72% 71% 70% Total Deposits $47,131 $46,875 $46,727 Total Deposit Net Activity - Month $256 $148 $238 Total Deposit Net Activity - YTD $404 $148 $5,688 Federal Home Loan Bank Borrowings $24,110 $22,008 $22,000 Other Borrowings: Reverse Repurchases 1,971 2,571 3,021 Federal Funds Purchased 0 0 0 Bank Notes 3,509 3,413 3,016 Senior Debt 992 991 991 Subordinated Notes 0 0 0 -------- -------- -------- Total Borrowings $30,582 $28,983 $29,028 ======== ======== ======== Yield on Loan Portfolio 4.61% 4.60% 4.61% Yield on Interest-Earning Investments 1.05 1.04 .93 -------- -------- -------- Combined Yield on Interest-Earning Assets 4.56% 4.57% 4.54% Cost of Deposits 1.85% 1.85% 1.85% Cost of Federal Home Loan Bank Borrowings 1.25 1.28 1.28 Cost of Other Borrowings 1.68 1.66 1.66 -------- -------- -------- Combined Cost of Funds 1.65% 1.67% 1.67% -------- -------- -------- Net Interest Rate Spread (Primary Spread) 2.91% 2.90% 2.87% ======== ======== ======== Loans Sold $31 $50 $113 Loan and MBS Repayments and Payoffs - Month $1,401 $1,323 $1,717 As a % of Prior Month Loan Balances (Annualized) 21.13% 20.28% 27.02% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .52% .52% .51% GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS June 2003 - June 2004 (Dollars in millions) 2003 --------------------------- NOV OCT SEP -------- -------- -------- Total Assets $79,661 $77,748 $76,158 Cash and Investments $1,285 $1,045 $1,169 Loans and MBS $76,272 $74,645 $72,949 Adjustable Rate Mortgages and MBS $73,222 $71,521 $69,528 Loans Originated - Month $3,276 $3,869 $3,698 Percentage ARMs - Month 98% 98% 97% Percentage Refinances - Month 70% 69% 67% Loans Originated - YTD $32,224 $28,948 $25,079 Percentage ARMs - YTD 93% 92% 92% Percentage Refinances - YTD 70% 70% 71% Total Deposits $46,489 $46,434 $46,145 Total Deposit Net Activity - Month $55 $289 $384 Total Deposit Net Activity - YTD $5,450 $5,395 $5,106 Federal Home Loan Bank Borrowings $20,689 $20,190 $19,690 Other Borrowings: Reverse Repurchases 2,572 1,372 722 Federal Funds Purchased 0 100 300 Bank Notes 1,971 1,837 1,490 Senior Debt 991 991 991 Subordinated Notes 0 0 200 -------- -------- -------- Total Borrowings $26,223 $24,490 $23,393 ======== ======== ======== Yield on Loan Portfolio 4.64% 4.68% 4.73% Yield on Interest-Earning Investments 1.03 1.04 1.10 -------- -------- -------- Combined Yield on Interest-Earning Assets 4.61% 4.65% 4.70% Cost of Deposits 1.86% 1.87% 1.95% Cost of Federal Home Loan Bank Borrowings 1.28 1.28 1.27 Cost of Other Borrowings 1.80 1.97 2.38 -------- -------- -------- Combined Cost of Funds 1.69% 1.71% 1.78% -------- -------- -------- Net Interest Rate Spread (Primary Spread) 2.92% 2.94% 2.92% ======== ======== ======== Loans Sold $83 $205 $231 Loan and MBS Repayments and Payoffs - Month $1,543 $1,845 $1,918 As a % of Prior Month Loan Balances (Annualized) 24.81% 30.35% 32.30% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .52% .54% .56% 2003 -------------------------- AUG JUL JUN -------- -------- -------- Total Assets $75,028 $73,395 $72,198 Cash and Investments $1,693 $1,365 $873 Loans and MBS $71,270 $70,038 $69,295 Adjustable Rate Mortgages and MBS $67,843 $66,868 $66,078 Loans Originated - Month $3,237 $3,157 $2,786 Percentage ARMs - Month 92% 90% 92% Percentage Refinances - Month 71% 71% 70% Loans Originated - YTD $21,381 $18,144 $14,987 Percentage ARMs - YTD 91% 91% 91% Percentage Refinances - YTD 71% 71% 71% Total Deposits $45,761 $44,968 $44,386 Total Deposit Net Activity - Month $793 $582 $303 Total Deposit Net Activity - YTD $4,722 $3,929 $3,347 Federal Home Loan Bank Borrowings $19,131 $18,923 $19,927 Other Borrowings: Reverse Repurchases 623 723 21 Federal Funds Purchased 0 0 265 Bank Notes 1,590 1,090 100 Senior Debt 991 991 990 Subordinated Notes 200 200 200 -------- -------- -------- Total Borrowings $22,535 $21,927 $21,503 ======== ======== ======== Yield on Loan Portfolio 4.80% 4.86% 4.92% Yield on Interest-Earning Investments 1.03 1.06 1.27 -------- -------- -------- Combined Yield on Interest-Earning Assets 4.74% 4.81% 4.90% Cost of Deposits 2.03% 2.06% 2.12% Cost of Federal Home Loan Bank Borrowings 1.29 1.32 1.37 Cost of Other Borrowings 2.49 2.67 4.17 -------- -------- -------- Combined Cost of Funds 1.84% 1.88% 1.94% -------- -------- -------- Net Interest Rate Spread (Primary Spread) 2.90% 2.93% 2.96% ======== ======== ======== Loans Sold $431 $456 $336 Loan and MBS Repayments and Payoffs - Month $1,920 $1,949 $1,728 As a % of Prior Month Loan Balances (Annualized) 32.90% 33.75% 30.28% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .57% .60% .62% CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 -----END PRIVACY-ENHANCED MESSAGE-----