-----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, R28YTfibAp0k9HOi1j9K5kjfM3PnOFBIb9HC1Ejw9JgbRU0rcC6cozKHqicgFWF1 kxyfOoGxPH3IqT4zMcdgVg== 0001157523-04-009654.txt : 20041021 0001157523-04-009654.hdr.sgml : 20041021 20041021160557 ACCESSION NUMBER: 0001157523-04-009654 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041021 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20041021 DATE AS OF CHANGE: 20041021 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: 041089779 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 a4747015.txt 8-K GOLDEN WEST FINANCIAL ================================================================================ 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, 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 7.01 Regulation FD Disclosure. The following information is furnished under Item 12 (Results of Operations and Financial Condition). Exhibit No. Exhibit ----------- ------- 99.1 Third Quarter 2004 Earnings Press Release 99.2 September 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: October 21, 2004 /s/ Russell W. Kettell ---------------------------------------- Russell W. Kettell President and Chief Financial Officer EX-99.1 2 a4747015ex991.txt GOLDEN WEST FINANCIAL EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Golden West Financial Reports Record Earnings, Loan Originations, and Deposits OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 21, 2004--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, announced record diluted earnings per share of $2.09 in the third quarter, up 14% from the $1.83 reported during the same period in 2003. Per share profits for the first nine months of 2004 reached $6.07, a 16% increase from the $5.25 posted in the first three quarters of 2003. The Company also announced all-time high loan originations of $14.1 billion in the third quarter, up 39% from the $10.1 billion reported one year earlier. For the first nine months of 2004, new mortgage volume totaled $35.9 billion, a 43% increase from the $25.1 billion recorded in the first three quarters of 2003. Golden West's savings operations also turned in a record performance. Deposit balances grew $3.1 billion in the third quarter, a 74% jump from the $1.8 billion of net inflows experienced one year earlier. For the first nine months of 2004, retail savings rose $4.9 billion, similar to the $5.1 billion increase in the first three quarters of 2003. In other news, the Company reached a milestone in terms of size in the third quarter. As of September 30th, total assets exceeded $100 billion for the first time in Golden West's history. Starting with a discussion of the Company's rapid loan growth, Herbert Sandler, Chairman of the Board and Chief Executive Officer, said, "During the first nine months of 2004, the interest rates on our primary product, the adjustable rate mortgage, or ARM, have remained low and stable, while the cost of the borrowers' other alternative, a fixed-rate loan, has been more volatile. Our lending team has taken advantage of this opportunity to produce a record volume of new loans." Sandler added, "The substantial increase in our mortgage originations so far this year is noteworthy, because it contrasts with overall nationwide lending activity, which has declined from the record setting levels experienced in 2003." Continuing, Sandler remarked, "The Company's mortgage portfolio, which is our primary earning asset, has increased dramatically this year." Golden West's loan balances grew $7.5 billion, or at a 34% annualized rate, in the third quarter, and have increased $18.3 billion, or at a 31% annualized rate, during the first nine months of the year. Sandler added, "This sizable growth is important because the larger the Company's mortgage portfolio, the greater our ability to generate profits." Wrapping up his comments on the Company's lending results, Sandler stated, "In the third quarter, 99% of Golden West's new originations consisted of monthly adjustable rate loans, up from 93% a year ago. This is significant, because ARMs are responsive to changes in interest rates, which helps limit the Company's earnings exposure when interest rates rise." 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." In the third quarter, Golden West's spread averaged 2.70%, down from 2.93% one year earlier. Sandler explained, "Market interest rates have been moving up since early in the second quarter. As a result, our primary spread has declined somewhat because our liabilities, which are made up of deposits and borrowings, tend to respond to interest rate movements a bit faster than our adjustable rate mortgage portfolio. Some compression of our profit margin is normal in a rising interest rate environment." Covering a final earnings related subject, Sandler commented on the Company's general and administrative expenses (G&A). He noted, "Total G&A was up 16% from the third quarter of last year. As you would expect, a large portion of this spending increase supported our record loan volume. We also continued to invest in people and technology to ensure we have the resources to take advantage of future growth opportunities." He added, "Despite the rise in expenses, our G&A ratio improved significantly from the third quarter of last year because of the Company's strong asset growth." Golden West's ratio of G&A to average assets was .87% in the third quarter of 2004, compared to .98% one year earlier. Switching to the topic of credit risk, Sandler explained, "One way we measure the success of our risk management is the ratio of nonperforming assets and troubled debt restructured to total assets." At September 30, 2004, Golden West's ratio was .36%, down from just ..56% one year earlier. "As our percentage indicates, the Company's history of impressive loan quality continued in the third quarter." Moving to a discussion of Golden West's savings activity, Sandler stated, "In the third quarter the Company posted record deposit growth. Customers responded enthusiastically to our promoted products and rates, as they continued to search for predictable, secure investments. As a result, our savings balances grew $3.1 billion, easily surpassing our prior all-time high for a quarter of $2.5 billion, set in the third quarter of 2002." Finally, the Company reported that for the third consecutive quarter World Savings Bank, Golden West's primary operating subsidiary, brought to market $1.0 billion of long-term senior debt. Sandler observed, "Continuing to issue these borrowings provides an additional source of funds to support the rapid growth of our loan portfolio." Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $100 billion as of September 30, 2004. The Company has one of the most extensive thrift branch systems in the country, with 276 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 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 Nine Months Ended September 30 September 30 ------------------------- ------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Interest Income Interest on loans $1,025,021 $795,003 $2,835,482 $2,350,687 Interest on mortgage-backed securities 28,843 60,246 104,578 207,100 Interest and dividends on investments 19,066 21,637 50,359 67,856 ------------ ------------ ------------ ------------ 1,072,930 876,886 2,990,419 2,625,643 Interest Expense Interest on deposits 243,669 232,789 679,023 719,019 Interest on advances 123,565 63,181 279,547 202,837 Interest on repurchase agreements 13,767 1,878 29,407 3,160 Interest on other borrowings 26,800 25,708 75,373 76,935 ------------ ------------ ------------ ------------ 407,801 323,556 1,063,350 1,001,951 ------------ ------------ ------------ ------------ Net Interest Income 665,129 553,330 1,927,069 1,623,692 Provision for loan losses 197 2,082 830 10,062 ------------ ------------ ------------ ------------ Net Interest Income after Provision for Loan Losses 664,932 551,248 1,926,239 1,613,630 Noninterest Income Fees 53,292 45,692 150,601 122,123 Gain on the sale of securities, MBS and loans 1,901 25,972 11,154 62,487 Change in fair value of derivatives 0 2,993 1,141 8,639 Other 16,412 16,083 49,663 47,483 ------------ ------------ ------------ ------------ 71,605 90,740 212,559 240,732 Noninterest Expense General and administrative: Personnel 135,808 115,499 404,111 331,183 Occupancy 21,640 19,286 62,778 56,763 Technology and tele- communications 18,768 18,600 59,070 59,559 Deposit insurance 1,743 1,732 5,303 5,005 Advertising 7,979 5,240 18,458 16,531 Other 24,522 20,696 67,787 58,902 ------------ ------------ ------------ ------------ 210,460 181,053 617,507 527,943 Earnings before Taxes on Income 526,077 460,935 1,521,291 1,326,419 Taxes on Income 201,299 178,029 580,071 510,975 ------------ ------------ ------------ ------------ Net Earnings $324,778 $282,906 $941,220 $815,444 ============ ============ ============ ============ Basic Earnings Per Share $2.12 $1.86 $6.17 $5.34 ============ ============ ============ ============ Diluted Earnings Per Share $2.09 $1.83 $6.07 $5.25 ============ ============ ============ ============ Average common shares outstanding 152,853,203 152,180,798 152,593,907 152,699,508 Average diluted common shares outstanding 155,286,689 154,810,821 155,017,202 155,179,200 Ratios: (a) Net earnings / average stockholders' equity 19.31% 20.48% 19.57% 20.43% Net earnings / average assets 1.34% 1.53% 1.39% 1.52% Net interest margin (b) 2.78% 3.07% 2.88% 3.11% General and administrative expense / average assets .87% .98% .91% .98% Efficiency ratio(c) 28.57% 28.11% 28.86% 28.32% (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 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 2004 2004 2004 ------------- ------------- -------------- ASSETS Cash $283,776 $296,330 $248,710 Securities available for sale at fair value 919,647 1,539,885 1,123,463 Purchased mortgage-backed securities available for sale at fair value 15,915 18,401 19,895 Purchased mortgage-backed securities held to maturity at cost 395,887 411,881 437,580 Mortgage-backed securities with recourse held to maturity at cost (a) 1,889,322 2,083,852 2,342,210 Loans held for sale 55,899 107,692 157,666 Loans held in portfolio less allowance for loan losses (a) 94,259,118 86,471,707 80,121,686 ------------- ------------- -------------- Total Loans Receivable and Mortgage-Backed Securities 96,616,141 89,093,533 83,079,037 Interest earned but uncollected 233,257 203,145 191,475 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,484,560 1,318,642 1,203,589 Foreclosed real estate 8,815 9,885 13,348 Premises and equipment, net 378,769 376,501 367,579 Other assets 322,662 320,381 377,570 ------------- ------------- -------------- $100,247,627 $93,158,302 $86,604,771 ============= ============= ============== LIABILITIES and STOCKHOLDERS' EQUITY Deposits $51,666,515 $48,611,353 $47,383,623 Advances from Federal Home Loan Banks 32,017,135 28,712,498 24,805,930 Securities sold under agreements to repurchase 3,650,179 3,470,761 2,672,049 Federal funds purchased 0 0 0 Bank notes 869,154 1,786,668 2,504,917 Senior debt 3,997,707 2,989,726 1,989,944 Subordinated notes 0 0 0 Taxes on income 611,997 587,357 627,431 Other liabilities 544,153 434,178 377,018 Stockholders' equity 6,890,787 6,565,761 6,243,859 ------------- ------------- -------------- $100,247,627 $93,158,302 $86,604,771 ============= ============= ============== Book value per common share $45.02 $42.98 $40.95 Common shares outstanding 153,051,389 152,749,211 152,492,139 Dec. 31 Sep. 30 2003 2003 ------------- -------------- ASSETS Cash $260,823 $219,000 Securities available for sale at fair value 1,879,443 950,329 Purchased mortgage-backed securities available for sale at fair value 22,071 24,824 Purchased mortgage-backed securities held to maturity at cost 433,319 425,741 Mortgage-backed securities with recourse held to maturity at cost (a) 3,650,048 4,078,140 Loans held for sale 124,917 324,297 Loans held in portfolio less allowance for loan losses (a) 74,080,661 68,096,299 ------------- -------------- Total Loans Receivable and Mortgage- Backed Securities 78,311,016 72,949,301 Interest earned but uncollected 183,761 179,091 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,152,339 1,142,582 Foreclosed real estate 13,904 16,838 Premises and equipment, net 360,327 355,955 Other assets 388,277 344,744 ------------- -------------- $82,549,890 $76,157,840 ============= ============== LIABILITIES and STOCKHOLDERS' EQUITY Deposits $46,726,965 $46,145,048 Advances from Federal Home Loan Banks 22,000,234 19,689,871 Securities sold under agreements to repurchase 3,021,385 721,639 Federal funds purchased 0 300,000 Bank notes 3,015,854 1,489,946 Senior debt 991,257 990,862 Subordinated notes 0 200,000 Taxes on income 561,406 580,969 Other liabilities 285,521 404,258 Stockholders' equity 5,947,268 5,635,247 ------------- -------------- $82,549,890 $76,157,840 ============= ============== Book value per common share $39.10 $37.10 Common shares outstanding 152,119,108 151,900,958 (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 -------------------------------------- Sep. 30 Jun. 30 Mar. 31 2004 2004 2004 ------------ ------------ ------------ Net interest income $665,129 $642,686 $619,254 Provision for loan losses 197 392 241 Noninterest income 71,605 81,147 59,807 Noninterest expense 210,460 207,533 199,514 ------------ ------------ ------------ Earnings before taxes on income 526,077 515,908 479,306 Taxes on income (a) 201,299 199,190 179,582 ------------ ------------ ------------ Net earnings $324,778 $316,718 $299,724 ============ ============ ============ Basic EPS $2.12 $2.07 $1.97 Diluted EPS $2.09 $2.04 $1.93 Average common shares outstanding 152,853,203 152,652,032 152,273,637 Average diluted common shares outstanding 155,286,689 155,213,548 155,040,581 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) 19.31% 19.79% 19.65% Net earnings / average assets (ROA) 1.34% 1.41% 1.42% Net interest margin (c) 2.78% 2.91% 2.99% General and administrative expense / average assets .87% .93% .95% Efficiency ratio (d) 28.57% 28.67% 29.38% Loan loss reserve $290,079 $289,996 $289,351 Net loan chargeoffs (recoveries) $114 $(253) $827 Stockholders' equity / total assets 6.87% 7.05% 7.21% Total deposit net activity $3,055,162 $1,227,730 $656,658 For the Quarter Ended ------------------------- Dec. 31 Sep. 30 2003 2003 ------------ ------------ Net interest income $584,692 $553,330 Provision for loan losses 1,802 2,082 Noninterest income 72,598 90,740 Noninterest expense 192,572 181,053 ------------ ------------ Earnings before taxes on income 462,916 460,935 Taxes on income (a) 172,261 178,029 ------------ ------------ Net earnings $290,655 $282,906 ============ ============ Basic EPS $1.91 $1.86 Diluted EPS $1.88 $1.83 Average common shares outstanding 152,001,578 152,180,798 Average diluted common shares outstanding 154,830,609 154,810,821 Number of shares repurchased and retired 0 630,000 Cost of shares repurchased $0 $53,407 Remaining number of shares authorized for repurchase 9,328,179 9,328,179 Ratios: (b) Net earnings / average stockholders' equity (ROE) 20.09% 20.48% Net earnings / average assets (ROA) 1.47% 1.53% Net interest margin (c) 3.01% 3.07% General and administrative expense / average assets .97% .98% Efficiency ratio (d) 29.30% 28.11% Loan loss reserve $289,937 $288,949 Net loan chargeoffs (recoveries) $814 $1,001 Stockholders' equity / total assets 7.20% 7.40% Total deposit net activity $581,917 $1,759,331 (a) The Company's effective tax rate may fluctuate from quarter to quarter due to various state tax matters, particularly changes in the volume of business activity in the various states in which the Company operates. (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 --------------------------------------- Sep. 30 Jun. 30 Mar. 31 2004 2004 2004 ------------ ------------ ------------- AVERAGE BALANCES (a) Cash and investments $1,680,206 $1,650,596 $1,641,994 Loans receivable and mortgage- backed securities 92,976,928 85,818,380 80,498,053 Investment in capital stock of Federal Home Loan Banks 1,413,980 1,245,010 1,165,153 Deposits 50,229,774 47,798,007 47,029,050 Advances from Federal Home Loan Banks 30,684,256 26,735,540 23,231,041 Securities sold under agreements to repurchase 3,590,338 3,021,646 2,558,780 Other borrowings 4,604,075 4,654,051 4,351,662 Stockholders' equity 6,729,240 6,401,862 6,100,369 Total Average Assets 96,997,990 89,649,483 84,252,424 Average Earning Assets 95,778,195 88,389,797 82,963,346 Average Interest-Bearing Liabilities 89,108,443 82,209,244 77,170,533 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage- backed securities $96,616,141 $89,093,533 $83,079,037 Adjustable rate loans receivable and mortgage-backed securities 93,426,505 85,731,774 79,889,765 New real estate loans originated $14,071,739 $12,439,588 $9,393,862 New adjustable rate mortgages as a percentage of new real estate loans originated 99% 99% 98% New refinanced mortgages as a percentage of new real estate loans originated 69% 71% 72% LOANS SOLD AND SERVICED DATA Loan sales $99,405 $224,874 $131,589 Loans serviced for others 4,812,072 5,095,475 5,438,165 Balance of capitalized mortgage servicing rights 63,763(b) 76,217 82,503 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $346,585 $368,502 $399,904 Foreclosed real estate 8,815 9,885 13,348 ------------ ------------ ------------- Total nonperforming assets $355,400 $378,387 $413,252 ============ ============ ============= Ratio of nonperforming assets (NPAs) to total assets .35% .41% .48% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% .01% Ratio of NPAs and TDRs to total assets .36% .41% .48% SPREAD DATA Yield on loan portfolio 4.59% 4.50% 4.58% Yield on interest-earning investments 1.90% 1.35% 1.05% Yield on interest-earning assets 4.57% 4.46% 4.55% Cost of deposits 1.97% 1.88% 1.85% Cost of borrowings 1.87% 1.43% 1.32% Cost of funds 1.93% 1.69% 1.63% Yield on interest-earning assets less cost of funds (Primary Spread) at quarterend 2.64% 2.77% 2.92% Average Primary Spread for the quarter 2.70% 2.86% 2.90% For the Quarter Ended ------------------------- Dec. 31 Sep. 30 2003 2003 ------------ ------------ AVERAGE BALANCES (a) Cash and investments $1,409,734 $1,275,081 Loans receivable and mortgage-backed securities 75,544,443 70,888,271 Investment in capital stock of Federal Home Loan Banks 1,146,948 1,137,138 Deposits 46,448,866 45,314,936 Advances from Federal Home Loan Banks 20,642,344 19,417,796 Securities sold under agreements to repurchase 1,921,788 522,116 Other borrowings 3,219,452 2,399,344 Stockholders' equity 5,787,207 5,525,243 Total Average Assets 79,029,081 74,194,553 Average Earning Assets 77,773,138 72,951,855 Average Interest-Bearing Liabilities 72,232,450 67,654,192 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage-backed securities $78,311,016 $72,949,301 Adjustable rate loans receivable and mortgage-backed securities 75,238,723 69,528,396 New real estate loans originated $10,905,670 $10,092,199 New adjustable rate mortgages as a percentage of new real estate loans originated 98% 93% New refinanced mortgages as a percentage of new real estate loans originated 70% 70% LOANS SOLD AND SERVICED DATA Loan sales $401,091 $1,117,899 Loans serviced for others 5,764,986 5,886,668 Balance of capitalized mortgage servicing rights 88,967 92,098 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $410,064 $409,001 Foreclosed real estate 13,904 16,838 ------------ ------------ Total nonperforming assets $423,968 $425,839 ============ ============ Ratio of nonperforming assets (NPAs) to total assets .51% .56% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% Ratio of NPAs and TDRs to total assets .51% .56% SPREAD DATA Yield on loan portfolio 4.61% 4.73% Yield on interest-earning investments .93% 1.10% Yield on interest-earning assets 4.54% 4.70% Cost of deposits 1.85% 1.95% Cost of borrowings 1.37% 1.45% Cost of funds 1.67% 1.78% Yield on interest-earning assets less cost of funds (Primary Spread) at quarterend 2.87% 2.92% Average Primary Spread for the quarter 2.91% 2.93% (a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four. (b) Includes impairment reserve of $4.4 million, which resulted in an after-tax charge of $2.7 million. CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 EX-99.2 3 a4747015ex992.txt GOLDEN WEST FINANCIAL EXHIBIT 99.2 13 MONTH PRESS Exhibit 99.2 Golden West Financial Releases Thirteen Month Statistical Data OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 21, 2004--Golden West Financial Corporation (NYSE:GDW) (PCX:GDW), parent of World Savings Bank, today released statistical data for the thirteen months ended September 30, 2004. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $100 billion as of September 30, 2004. The Company has one of the most extensive thrift branch systems in the country, with 276 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. (Financial Information Attached) GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS September 2003 - September 2004 (Dollars in millions) 2004 --------------------------------------- SEP AUG JUL JUN --------- --------- --------- --------- Total Assets $100,248 $ 98,553 $ 96,033 $ 93,158 Cash and Investments $ 1,203 $ 1,655 $ 2,026 $ 1,836 Loans and MBS $ 96,616 $ 94,521 $ 91,677 $ 89,094 Adjustable Rate Mortgages and MBS $ 93,427 $ 91,201 $ 88,452 $ 85,732 Loans Originated - Month $ 4,343 $ 4,873 $ 4,856 $ 4,791 Percentage ARMs - Month 99% 99% 99% 99% Percentage Refinances - Month 71% 68% 68% 69% Loans Originated - YTD $ 35,905 $ 31,562 $ 26,689 $ 21,833 Percentage ARMs - YTD 99% 99% 98% 98% Percentage Refinances - YTD 71% 71% 71% 72% Total Deposits $ 51,667 $ 50,867 $ 49,775 $ 48,611 Total Deposit Net Activity - Month $ 800 $ 1,092 $ 1,164 $ 767 Total Deposit Net Activity - YTD $ 4,940 $ 4,140 $ 3,048 $ 1,884 Federal Home Loan Bank Borrowings $ 32,017 $ 31,775 $ 30,232 $ 28,712 Other Borrowings: Reverse Repurchases 3,650 3,669 3,571 3,471 Federal Funds Purchased 0 0 0 0 Bank Notes 869 1,148 1,631 1,787 Senior Debt 3,998 3,001 2,993 2,990 Subordinated Notes 0 0 0 0 --------- --------- --------- --------- Total Borrowings $ 40,534 $ 39,593 $ 38,427 $ 36,960 ========= ========= ========= ========= Yield on Loan Portfolio 4.59% 4.54% 4.50% 4.50% Yield on Interest-Earning Investments 1.90 1.56 1.32 1.35 --------- --------- --------- --------- Combined Yield on Interest-Earning Assets 4.57% 4.51% 4.46% 4.46% Cost of Deposits 1.97% 1.94% 1.91% 1.88% Cost of Federal Home Loan Bank Borrowings 1.78 1.65 1.48 1.35 Cost of Other Borrowings 2.21 1.95 1.84 1.73 --------- --------- --------- --------- Combined Cost of Funds 1.93% 1.84% 1.75% 1.69% --------- --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.64% 2.67% 2.71% 2.77% ========= ========= ========= ========= Loans Sold $ 30 $ 35 $ 35 $ 79 Loan and MBS Repayments and Payoffs - Month $ 2,113 $ 2,103 $ 2,104 $ 2,308 As a % of Prior Month Loan Balances (Annualized) 26.96% 27.66% 28.47% 32.18% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .36% .37% .40% .41% 2004 ----------------------------- MAY APR MAR --------- --------- --------- Total Assets $ 90,336 $ 88,499 $ 86,605 Cash and Investments $ 1,706 $ 1,688 $ 1,372 Loans and MBS $ 86,437 $ 84,664 $ 83,079 Adjustable Rate Mortgages and MBS $ 83,278 $ 81,549 $ 79,890 Loans Originated - Month $ 3,853 $ 3,795 $ 3,839 Percentage ARMs - Month 98% 98% 98% Percentage Refinances - Month 72% 73% 72% Loans Originated - YTD $ 17,042 $ 13,189 $ 9,394 Percentage ARMs - YTD 98% 98% 98% Percentage Refinances - YTD 72% 73% 72% Total Deposits $ 47,844 $ 47,353 $ 47,384 Total Deposit Net Activity - Month $ 491 $ (31) $ 253 Total Deposit Net Activity - YTD $ 1,117 $ 626 $ 657 Federal Home Loan Bank Borrowings $ 27,210 $ 26,214 $ 24,806 Other Borrowings: Reverse Repurchases 2,872 3,072 2,672 Federal Funds Purchased 0 0 0 Bank Notes 2,865 2,500 2,505 Senior Debt 1,990 1,990 1,990 Subordinated Notes 0 0 0 --------- --------- --------- Total Borrowings $ 34,937 $ 33,776 $ 31,973 ========= ========= ========= Yield on Loan Portfolio 4.52% 4.55% 4.58% Yield on Interest-Earning Investments 1.04 1.05 1.05 --------- --------- --------- Combined Yield on Interest-Earning Assets 4.47% 4.51% 4.55% Cost of Deposits 1.85% 1.85% 1.85% Cost of Federal Home Loan Bank Borrowings 1.24 1.22 1.23 Cost of Other Borrowings 1.61 1.61 1.64 --------- --------- --------- Combined Cost of Funds 1.63% 1.62% 1.63% --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.84% 2.89% 2.92% ========= ========= ========= Loans Sold $ 81 $ 64 $ 51 Loan and MBS Repayments and Payoffs - Month $ 2,090 $ 2,099 $ 1,949 As a % of Prior Month Loan Balances (Annualized) 29.62% 30.32% 28.87% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .44% .45% .48% GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS September 2003 - September 2004 (Dollars in millions) 2004 --------------------- FEB JAN --------- --------- Total Assets $ 84,945 $ 82,910 Cash and Investments $ 1,839 $ 1,216 Loans and MBS $ 81,003 $ 79,600 Adjustable Rate Mortgages and MBS $ 78,042 $ 76,769 Loans Originated - Month $ 2,690 $ 2,865 Percentage ARMs - Month 98% 98% Percentage Refinances - Month 74% 71% Loans Originated - YTD $ 5,555 $ 2,865 Percentage ARMs - YTD 98% 98% Percentage Refinances - YTD 72% 71% Total Deposits $ 47,131 $ 46,875 Total Deposit Net Activity - Month $ 256 $ 148 Total Deposit Net Activity - YTD $ 404 $ 148 Federal Home Loan Bank Borrowings $ 24,110 $ 22,008 Other Borrowings: Reverse Repurchases 1,971 2,571 Federal Funds Purchased 0 0 Bank Notes 3,509 3,413 Senior Debt 992 991 Subordinated Notes 0 0 --------- --------- Total Borrowings $ 30,582 $ 28,983 ========= ========= Yield on Loan Portfolio 4.61% 4.60% Yield on Interest-Earning Investments 1.05 1.04 --------- --------- Combined Yield on Interest-Earning Assets 4.56% 4.57% Cost of Deposits 1.85% 1.85% Cost of Federal Home Loan Bank Borrowings 1.25 1.28 Cost of Other Borrowings 1.68 1.66 --------- --------- Combined Cost of Funds 1.65% 1.67% --------- --------- Net Interest Rate Spread (Primary Spread) 2.91% 2.90% ========= ========= Loans Sold $ 31 $ 50 Loan and MBS Repayments and Payoffs - Month $ 1,401 $ 1,323 As a % of Prior Month Loan Balances (Annualized) 21.13% 20.28% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .52% .52% 2003 ------------------------------------------ DEC NOV OCT SEP --------- --------- --------- --------- Total Assets $ 82,550 $ 79,661 $ 77,748 $ 76,158 Cash and Investments $ 2,140 $ 1,285 $ 1,045 $ 1,169 Loans and MBS $ 78,311 $ 76,272 $ 74,645 $ 72,949 Adjustable Rate Mortgages and MBS $ 75,239 $ 73,222 $ 71,521 $ 69,528 Loans Originated - Month $ 3,761 $ 3,276 $ 3,869 $ 3,698 Percentage ARMs - Month 98% 98% 98% 97% Percentage Refinances - Month 71% 70% 69% 67% Loans Originated - YTD $ 35,985 $ 32,224 $ 28,948 $ 25,079 Percentage ARMs - YTD 94% 93% 92% 92% Percentage Refinances - YTD 70% 70% 70% 71% Total Deposits $ 46,727 $ 46,489 $ 46,434 $ 46,145 Total Deposit Net Activity - Month $ 238 $ 55 $ 289 $ 384 Total Deposit Net Activity - YTD $ 5,688 $ 5,450 $ 5,395 $ 5,106 Federal Home Loan Bank Borrowings $ 22,000 $ 20,689 $ 20,190 $ 19,690 Other Borrowings: Reverse Repurchases 3,021 2,572 1,372 722 Federal Funds Purchased 0 0 100 300 Bank Notes 3,016 1,971 1,837 1,490 Senior Debt 991 991 991 991 Subordinated Notes 0 0 0 200 --------- --------- --------- --------- Total Borrowings $ 29,028 $ 26,223 $ 24,490 $ 23,393 ========= ========= ========= ========= Yield on Loan Portfolio 4.61% 4.64% 4.68% 4.73% Yield on Interest-Earning Investments .93 1.03 1.04 1.10 --------- --------- --------- --------- Combined Yield on Interest-Earning Assets 4.54% 4.61% 4.65% 4.70% Cost of Deposits 1.85% 1.86% 1.87% 1.95% Cost of Federal Home Loan Bank Borrowings 1.28 1.28 1.28 1.27 Cost of Other Borrowings 1.66 1.80 1.97 2.38 --------- --------- --------- --------- Combined Cost of Funds 1.67% 1.69% 1.71% 1.78% --------- --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.87% 2.92% 2.94% 2.92% ========= ========= ========= ========= Loans Sold $113 $83 $205 $231 Loan and MBS Repayments and Payoffs - Month $1,717 $1,543 $1,845 $1,918 As a % of Prior Month Loan Balances (Annualized) 27.02% 24.81% 30.35% 32.30% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .51% .52% .54% .56% CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 -----END PRIVACY-ENHANCED MESSAGE-----