-----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, HdiDUNZhp/nMxyeCivC1k2ymLMYy+C9fvUUMQppbZNOGIf8dolWDqI6xQzcAU9q4 pW+/X247tEsKwJVouAPARg== 0001157523-05-000395.txt : 20050120 0001157523-05-000395.hdr.sgml : 20050120 20050120160210 ACCESSION NUMBER: 0001157523-05-000395 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050120 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20050120 DATE AS OF CHANGE: 20050120 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: 05538897 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 a4803818.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): January 20, 2005 _____________________ 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 2.02 (Results of Operations and Financial Condition). Exhibit No. Exhibit ----------- ------- 99.1 Fourth Quarter 2004 Earnings Press Release 99.2 December 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: January 20, 2005 /s/ Russell W. Kettell ----------------------------------------- Russell W. Kettell President and Chief Financial Officer EX-99.1 2 a4803818ex991.txt EARNINGS PRESS RELEASE EXHIBIT 99.1 Golden West Posts Record Earnings and Loan Originations in 2004; Total Assets Exceed $100 Billion OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 20, 2005--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, announced record diluted earnings per share of $4.13 for 2004, up 16% from the previous all-time high of $3.57 reported in 2003. Per share profits in the fourth quarter of 2004 reached $1.09, a 16% increase from the $0.94 registered one year earlier. The Company also reached a milestone in terms of size in 2004. Total assets exceeded $100 billion for the first time, ranking Golden West 15th among bank and thrift holding companies based on asset size. The Company's lending operation provided another 2004 highlight, producing record loan originations of $49.0 billion, a 36% increase from the $36.0 billion reported in 2003. For the fourth quarter of 2004, new loans totaled $13.1 billion, up 20% from the $10.9 billion booked during the same period one year earlier. In discussing the year's accomplishments, Marion Sandler, Chairman of the Board and Chief Executive Officer of Golden West, first touched on the Company's earnings growth. She remarked, "An important contributor to our record earnings this past year was our ability to expand the mortgage portfolio, which is our primary earning asset. Our loan balances grew 31% in 2004. Clearly, having more loans on the books increases our capacity to generate income." Reflecting on the Company's rapid loan growth, Sandler stated, "This past year customers were particularly attracted to the affordable payments and flexible terms offered by our primary product, the adjustable rate mortgage, or ARM. In addition, we continued to provide excellent customer service, facilitating the rapid processing of mortgage applications. Our lending team took advantage of these factors and produced a record volume of new loans." Sandler added, "The substantial increase in our mortgage originations this year is noteworthy, because it contrasts with overall nationwide lending, which based on industry estimates, is projected to be down 25% from the record setting levels experienced in 2003." Continuing her comments on the Company's lending results, Sandler said, "In 2004, 99% of Golden West's new originations were adjustable rate loans, up from 94% one year earlier. This is significant, because ARMs are responsive to changes in interest rates, which helps mitigate the Company's earnings sensitivity when interest rates rise." Returning to her discussion of the factors influencing 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 investments and what we pay for savings and borrowings." She continued, "Short-term interest rates more than doubled this past year. As a result, our spread decreased 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 portfolio." In 2004, Golden West's spread averaged 2.76%, down from 2.94% one year earlier. Covering a final earnings related topic, Sandler commented on the Company's general and administrative expenses (G&A). She noted, "Total G&A was 17% higher than in 2003. As you would expect, a large portion of this spending increase supported our record loan volume." She added, "Despite the rise in expenses, our G&A ratio improved significantly from last year because of the Company's strong asset growth." Golden West's ratio of G&A to average assets was .90% in 2004, compared to .98% one year earlier. Switching to the topic of loan quality, Sandler explained, "In 2004, Golden West's loan portfolio continued to exhibit the positive effects of our focus on producing high-quality assets in order to manage credit risk. A key indicator of our performance is the ratio of net chargeoffs to average loans outstanding. This measure relates losses on foreclosed properties to the size of the loan portfolio. Aided by a strong real estate market, the Company's chargeoff ratio amounted to zero basis points for the seventh consecutive year." Continuing, Sandler added, "Our success can also be judged by our nonperforming asset level." At December 31, 2004, Golden West's ratio of nonperforming assets and troubled debt restructured to total assets was just .33%, compared to an already low .51% at yearend 2003. In other 2004 news, Golden West reported retail savings growth of $6.2 billion, a 10% increase from the $5.7 billion experienced in 2003. For the fourth quarter of 2004, deposit inflows were $1.3 billion, compared with $582 million in the same period one year earlier. Sandler commented, "This past year customers responded enthusiastically to our promoted products and rates, as they continued to search for predictable, secure investments. As a result, we were able to grow deposits significantly. In fact, in 2004 we had the second largest increase in savings balances in the Company's history, just below our all-time high of $6.6 billion set in 2002." The Company also reported that World Savings Bank, Golden West's primary operating subsidiary, brought to market $1.3 billion of long-term senior debt in the fourth quarter, bringing the total for the year to $4.3 billion. Sandler observed, "These borrowings provided an additional source of funds to support the rapid growth of our loan portfolio." Finally, in October Golden West's Board of Directors voted to increase the Company's annual cash dividend rate by 20%, and announced a two-for-one split of the Company's stock. Commenting on the split, Sandler said, "We took this action to encourage the wider distribution and marketability of the stock." At December 31, 2004, Golden West had approximately 307 million shares outstanding. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $105 billion as of December 31, 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 Year Ended December 31 December 31 ------------------------- ------------------------- 2004 2003 2004 2003 ------------ ------------ ------------ ------------ Interest Income Interest on loans $1,141,137 $827,400 $3,976,619 $3,178,087 Interest on mortgage-backed securities 27,142 54,612 131,720 261,712 Interest and dividends on investments 20,158 20,689 70,517 88,545 ------------ ------------ ------------ ------------ 1,188,437 902,701 4,178,856 3,528,344 Interest Expense Interest on deposits 265,470 219,104 944,493 938,123 Interest on advances 168,988 66,956 448,535 269,793 Interest on repurchase agreements 20,182 5,888 49,589 9,048 Interest on other borrowings 42,261 26,061 117,634 102,996 ------------ ------------ ------------ ------------ 496,901 318,009 1,560,251 1,319,960 ------------ ------------ ------------ ------------ Net Interest Income 691,536 584,692 2,618,605 2,208,384 Provision for loan losses 2,571 1,802 3,401 11,864 ------------ ------------ ------------ ------------ Net Interest Income after Provision for Loan Losses 688,965 582,890 2,615,204 2,196,520 Noninterest Income Fees 59,975 41,183 210,576 163,306 Gain on the sale of securities, MBS and loans 2,062 9,787 13,216 72,274 Change in fair value of derivatives 0 2,251 1,141 10,890 Other 19,327 19,377 68,990 66,860 ------------ ------------ ------------ ------------ 81,364 72,598 293,923 313,330 Noninterest Expense General and administrative: Personnel 143,321 122,293 547,432 453,476 Occupancy 23,339 19,886 86,117 76,649 Technology and tele- communications 20,383 19,142 79,453 78,701 Deposit insurance 1,765 1,678 7,068 6,683 Advertising 8,285 5,985 26,743 22,516 Other 25,526 23,588 93,313 82,490 ------------ ------------ ------------ ------------ 222,619 192,572 840,126 720,515 Earnings before Taxes on Income 547,710 462,916 2,069,001 1,789,335 Taxes on Income 209,209 172,261 789,280 683,236 ------------ ------------ ------------ ------------ Net Earnings $338,501 $290,655 $1,279,721 $1,106,099 ============ ============ ============ ============ Basic Earnings Per Share $1.11 $0.96 $4.19 $3.63 ============ ============ ============ ============ Diluted Earnings Per Share $1.09 $0.94 $4.13 $3.57 ============ ============ ============ ============ Average common shares outstanding 306,312,759 304,003,156 305,470,587 305,047,184 Average diluted common shares outstanding 311,179,468 309,661,218 310,119,746 309,974,406 Ratios: (a) Net earnings / average stockholders' equity 19.14% 20.09% 19.45% 20.33% Net earnings / average assets 1.31% 1.47% 1.37% 1.50% Net interest margin (b) 2.70% 3.01% 2.83% 3.05% General and administrative expense / average assets .86% .97% .90% .98% Efficiency ratio(c) 28.80% 29.30% 28.85% 28.57% (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 the year and dividing by four and thirteen, 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) Dec. 31 Sep. 30 Jun. 30 2004 2004 2004 --------------- ------------- ------------ ASSETS Cash $292,421 $283,776 $296,330 Securities available for sale at fair value 1,374,385 919,647 1,539,885 Purchased mortgage-backed securities available for sale at fair value 14,438 15,915 18,401 Purchased mortgage-backed securities held to maturity at cost 375,632 395,887 411,881 Mortgage-backed securities with recourse held to maturity at cost (a) 1,719,982 1,889,322 2,083,852 Loans held for sale 52,325 55,899 107,692 Loans held in portfolio less allowance for loan losses (a) 100,506,854 94,259,118 86,471,707 --------------- ------------- ------------ Total Loans Receivable and Mortgage-Backed Securities 102,669,231 96,616,141 89,093,533 Interest earned but uncollected 248,073 233,257 203,145 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,563,276 1,484,560 1,318,642 Foreclosed real estate 11,461 8,815 9,885 Premises and equipment, net 391,523 378,769 376,501 Other assets 338,171 322,662 320,381 --------------- ------------- ------------ $106,888,541 $100,247,627 $93,158,302 =============== ============= ============ LIABILITIES and STOCKHOLDERS' EQUITY Deposits $52,965,311 $51,666,515 $48,611,353 Advances from Federal Home Loan Banks 33,781,895 32,017,135 28,712,498 Securities sold under agreements to repurchase 3,900,000 3,650,179 3,470,761 Bank notes 2,709,895 869,154 1,786,668 Senior debt 5,291,840 3,997,707 2,989,726 Taxes on income 561,772 611,997 587,357 Other liabilities 402,952 544,153 434,178 Stockholders' equity 7,274,876 6,890,787 6,565,761 --------------- ------------- ------------ $106,888,541 $100,247,627 $93,158,302 =============== ============= ============ Book value per common share $23.73 $22.51 $21.49 Common shares outstanding 306,524,716 306,102,778 305,498,422 Mar. 31 Dec. 31 2004 2003 ------------ ------------ ASSETS Cash $248,710 $260,823 Securities available for sale at fair value 1,123,463 1,879,443 Purchased mortgage-backed securities available for sale at fair value 19,895 22,071 Purchased mortgage-backed securities held to maturity at cost 437,580 433,319 Mortgage-backed securities with recourse held to maturity at cost (a) 2,342,210 3,650,048 Loans held for sale 157,666 124,917 Loans held in portfolio less allowance for loan losses (a) 80,121,686 74,080,661 ------------ ------------ Total Loans Receivable and Mortgage- Backed Securities 83,079,037 78,311,016 Interest earned but uncollected 191,475 183,761 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,203,589 1,152,339 Foreclosed real estate 13,348 13,904 Premises and equipment, net 367,579 360,327 Other assets 377,570 388,277 ------------ ------------ $86,604,771 $82,549,890 ============ ============ LIABILITIES and STOCKHOLDERS' EQUITY Deposits $47,383,623 $46,726,965 Advances from Federal Home Loan Banks 24,805,930 22,000,234 Securities sold under agreements to repurchase 2,672,049 3,021,385 Bank notes 2,504,917 3,015,854 Senior debt 1,989,944 991,257 Taxes on income 627,431 561,406 Other liabilities 377,018 285,521 Stockholders' equity 6,243,859 5,947,268 ------------ ------------ $86,604,771 $82,549,890 ============ ============ Book value per common share $20.47 $19.55 Common shares outstanding 304,984,278 304,238,216 (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 Loans Held in Portfolio. GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES QUARTERLY FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands except per share figures) For the Quarter Ended -------------------------------------- Dec. 31 Sep. 30 Jun. 30 2004 2004 2004 ------------ ------------ ------------ Net interest income $691,536 $665,129 $642,686 Provision for loan losses 2,571 197 392 Noninterest income 81,364 71,605 81,147 Noninterest expense 222,619 210,460 207,533 ------------ ------------ ------------ Earnings before taxes on income 547,710 526,077 515,908 Taxes on income (a) 209,209 201,299 199,190 ------------ ------------ ------------ Net earnings $338,501 $324,778 $316,718 ============ ============ ============ Basic EPS $1.11 $1.06 $1.04 Diluted EPS $1.09 $1.05 $1.02 Average common shares outstanding 306,312,759 305,706,406 305,304,064 Average diluted common shares outstanding 311,179,468 310,573,378 310,427,096 Number of shares repurchased and retired 0 0 0 Cost of shares repurchased $0 $0 $0 Remaining number of shares authorized for repurchase 18,656,358 18,656,358 18,656,358 Ratios: (b) Net earnings / average stockholders' equity (ROE) 19.14% 19.31% 19.79% Net earnings / average assets (ROA) 1.31% 1.34% 1.41% Net interest margin (c) 2.70% 2.78% 2.91% General and administrative expense / average assets .86% .87% .93% Efficiency ratio (d) 28.80% 28.57% 28.67% Loan loss reserve $290,110 $290,079 $289,996 Net loan chargeoffs (recoveries) $2,540 $114 $(253) Stockholders' equity / total assets 6.81% 6.87% 7.05% Total deposit net activity $1,298,796 $3,055,162 $1,227,730 For the Quarter Ended --------------------------- Mar. 31 Dec. 31 2004 2003 ------------- ------------- Net interest income $619,254 $584,692 Provision for loan losses 241 1,802 Noninterest income 59,807 72,598 Noninterest expense 199,514 192,572 ------------- ------------- Earnings before taxes on income 479,306 462,916 Taxes on income (a) 179,582 172,261 ------------- ------------- Net earnings $299,724 $290,655 ============= ============= Basic EPS $0.98 $0.96 Diluted EPS $0.97 $0.94 Average common shares outstanding 304,547,274 304,003,156 Average diluted common shares outstanding 310,081,162 309,661,218 Number of shares repurchased and retired 0 0 Cost of shares repurchased $0 $0 Remaining number of shares authorized for repurchase 18,656,358 18,656,358 Ratios: (b) Net earnings / average stockholders' equity (ROE) 19.65% 20.09% Net earnings / average assets (ROA) 1.42% 1.47% Net interest margin (c) 2.99% 3.01% General and administrative expense / average assets .95% .97% Efficiency ratio (d) 29.38% 29.30% Loan loss reserve $289,351 $289,937 Net loan chargeoffs (recoveries) $827 $814 Stockholders' equity / total assets 7.21% 7.20% Total deposit net activity $656,658 $581,917 (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 --------------------------------------- Dec. 31 Sep. 30 Jun. 30 2004 2004 2004 ------------- ------------ ------------ AVERAGE BALANCES (a) Cash and investments $1,442,083 $1,680,206 $1,650,596 Loans receivable and mortgage- backed securities 99,698,762 92,976,928 85,818,380 Investment in capital stock of Federal Home Loan Banks 1,521,608 1,413,980 1,245,010 Deposits 52,317,613 50,229,774 47,798,007 Advances from Federal Home Loan Banks 32,754,803 30,684,256 26,735,540 Securities sold under agreements to repurchase 3,900,045 3,590,338 3,021,646 Other borrowings 6,373,852 4,604,075 4,654,051 Stockholders' equity 7,073,030 6,729,240 6,401,862 Total Average Assets 103,634,158 96,997,990 89,649,483 Average Earning Assets 102,371,618 95,778,195 88,389,797 Average Interest-Bearing Liabilities 95,346,313 89,108,443 82,209,244 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage- backed securities $102,669,231 $96,616,141 $89,093,533 Adjustable rate loans receivable and mortgage- backed securities 99,730,701 93,426,505 85,731,774 New real estate loans originated $13,083,888 $14,071,739 $12,439,588 New adjustable rate mortgages as a percentage of new real estate loans originated 99% 99% 99% New refinanced mortgages as a percentage of new real estate loans originated 75% 69% 71% LOANS SOLD AND SERVICED DATA Loan sales $97,096 $99,405 $224,874 Loans serviced for others 4,537,024 4,812,072 5,095,475 Balance of capitalized mortgage servicing rights 53,234(b) 63,763(b) 76,217 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $332,329 $346,585 $368,502 Foreclosed real estate 11,461 8,815 9,885 ------------- ------------ ------------ Total nonperforming assets $343,790 $355,400 $378,387 ============= ============ ============ Ratio of nonperforming assets (NPAs) to total assets .32% .35% .41% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% .00% Ratio of NPAs and TDRs to total assets .33% .36% .41% SPREAD DATA Yield on loan portfolio 4.75% 4.59% 4.50% Yield on interest-earning investments 2.08% 1.90% 1.35% Yield on interest-earning assets 4.73% 4.57% 4.46% Cost of deposits 2.08% 1.97% 1.88% Cost of borrowings 2.38% 1.87% 1.43% Cost of funds 2.22% 1.93% 1.69% Yield on interest-earning assets less cost of funds (Primary Spread) at quarterend 2.51% 2.64% 2.77% Average Primary Spread for the quarter 2.60% 2.70% 2.86% For the Quarter Ended -------------------------- Mar. 31 Dec. 31 2004 2003 ------------- ------------ AVERAGE BALANCES (a) Cash and investments $1,641,994 $1,409,734 Loans receivable and mortgage-backed securities 80,498,053 75,544,443 Investment in capital stock of Federal Home Loan Banks 1,165,153 1,146,948 Deposits 47,029,050 46,448,866 Advances from Federal Home Loan Banks 23,231,041 20,642,344 Securities sold under agreements to repurchase 2,558,780 1,921,788 Other borrowings 4,351,662 3,219,452 Stockholders' equity 6,100,369 5,787,207 Total Average Assets 84,252,424 79,029,081 Average Earning Assets 82,963,346 77,773,138 Average Interest-Bearing Liabilities 77,170,533 72,232,450 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage-backed securities $83,079,037 $78,311,016 Adjustable rate loans receivable and mortgage-backed securities 79,889,765 75,238,723 New real estate loans originated $9,393,862 $10,905,670 New adjustable rate mortgages as a percentage of new real estate loans originated 98% 98% New refinanced mortgages as a percentage of new real estate loans originated 72% 70% LOANS SOLD AND SERVICED DATA Loan sales $131,589 $401,091 Loans serviced for others 5,438,165 5,764,986 Balance of capitalized mortgage servicing rights 82,503 88,967 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $399,904 $410,064 Foreclosed real estate 13,348 13,904 ------------- ------------ Total nonperforming assets $413,252 $423,968 ============= ============ Ratio of nonperforming assets (NPAs) to total assets .48% .51% Ratio of troubled debt restructured (TDRs) to total assets .01% .00% Ratio of NPAs and TDRs to total assets .48% .51% SPREAD DATA Yield on loan portfolio 4.58% 4.61% Yield on interest-earning investments 1.05% .93% Yield on interest-earning assets 4.55% 4.54% Cost of deposits 1.85% 1.85% Cost of borrowings 1.32% 1.37% Cost of funds 1.63% 1.67% Yield on interest-earning assets less cost of funds (Primary Spread) at quarterend 2.92% 2.87% Average Primary Spread for the quarter 2.90% 2.91% (a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four. (b) Includes a yearend impairment reserve of $7.3 million which resulted from a fourth quarter after-tax charge of $1.8 million and a third quarter after-tax charge of $2.7 million. CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 EX-99.2 3 a4803818ex992.txt STATISTICAL DATA PRESS RELEASE EXHIBIT 99.2 Golden West Financial Releases Thirteen Month Statistical Data OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 20, 2005--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, today released statistical data for the thirteen months ended December 31, 2004. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $105 billion as of December 31, 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. GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS December 2003 - December 2004 (Dollars in millions) 2004 ---------------------------------------- DEC NOV OCT SEP ---------- --------- --------- --------- Total Assets $106,889 $104,641 $102,759 $100,248 Cash and Investments $1,667 $1,284 $1,614 $1,203 Loans and MBS $102,669 $100,846 $98,664 $96,616 Adjustable Rate Mortgages and MBS $99,731 $97,572 $95,580 $93,427 Loans Originated - Month $4,727 $4,135 $4,222 $4,343 Percentage ARMs - Month 99% 99% 99% 99% Percentage Refinances - Month 76% 75% 73% 71% Loans Originated - YTD $48,989 $44,262 $40,127 $35,905 Percentage ARMs - YTD 99% 99% 99% 99% Percentage Refinances - YTD 72% 71% 71% 71% Total Deposits $52,965 $52,424 $52,215 $51,667 Total Deposit Net Activity - Month $541 $209 $548 $800 Total Deposit Net Activity - YTD $6,238 $5,697 $5,488 $4,940 Federal Home Loan Bank Borrowings $33,782 $32,957 $32,263 $32,017 Other Borrowings: Reverse Repurchases 3,900 4,150 3,900 3,650 Federal Funds Purchased 0 20 0 0 Bank Notes 2,710 2,544 2,069 869 Senior Debt 5,292 3,993 4,000 3,998 ---------- --------- --------- --------- Total Borrowings $45,684 $43,664 $42,232 $40,534 ========== ========= ========= ========= Yield on Loan Portfolio 4.75% 4.71% 4.64% 4.59% Yield on Interest-Earning Investments 2.08 2.08 1.83 1.90 ---------- --------- --------- --------- Combined Yield on Interest-Earning Assets 4.73% 4.69% 4.62% 4.57% Cost of Deposits 2.08% 2.02% 2.00% 1.97% Cost of Federal Home Loan Bank Borrowings 2.30 2.10 1.91 1.78 Cost of Other Borrowings 2.60 2.27 2.22 2.21 ---------- --------- --------- --------- Combined Cost of Funds 2.22% 2.07% 1.99% 1.93% ---------- --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.51% 2.62% 2.63% 2.64% ========== ========= ========= ========= Loans Sold $33 $27 $37 $30 Loan and MBS Repayments and Payoffs - Month $2,506 $2,114 $2,045 $2,113 As a % of Prior Month Loan Balances (Annualized) 29.99% 25.86% 25.54% 26.96% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .33% .35% .35% .36% 2004 ---------------------------- AUG JUL JUN --------- --------- -------- Total Assets $98,553 $96,033 $93,158 Cash and Investments $1,655 $2,026 $1,836 Loans and MBS $94,521 $91,677 $89,094 Adjustable Rate Mortgages and MBS $91,201 $88,452 $85,732 Loans Originated - Month $4,873 $4,856 $4,791 Percentage ARMs - Month 99% 99% 99% Percentage Refinances - Month 68% 68% 69% Loans Originated - YTD $31,562 $26,689 $21,833 Percentage ARMs - YTD 99% 98% 98% Percentage Refinances - YTD 71% 71% 72% Total Deposits $50,867 $49,775 $48,611 Total Deposit Net Activity - Month $1,092 $1,164 $767 Total Deposit Net Activity - YTD $4,140 $3,048 $1,884 Federal Home Loan Bank Borrowings $31,775 $30,232 $28,712 Other Borrowings: Reverse Repurchases 3,669 3,571 3,471 Federal Funds Purchased 0 0 0 Bank Notes 1,148 1,631 1,787 Senior Debt 3,001 2,993 2,990 --------- --------- -------- Total Borrowings $39,593 $38,427 $36,960 ========= ========= ======== Yield on Loan Portfolio 4.54% 4.50% 4.50% Yield on Interest-Earning Investments 1.56 1.32 1.35 --------- --------- -------- Combined Yield on Interest-Earning Assets 4.51% 4.46% 4.46% Cost of Deposits 1.94% 1.91% 1.88% Cost of Federal Home Loan Bank Borrowings 1.65 1.48 1.35 Cost of Other Borrowings 1.95 1.84 1.73 --------- --------- -------- Combined Cost of Funds 1.84% 1.75% 1.69% --------- --------- -------- Net Interest Rate Spread (Primary Spread) 2.67% 2.71% 2.77% ========= ========= ======== Loans Sold $35 $35 $79 Loan and MBS Repayments and Payoffs - Month $2,103 $2,104 $2,308 As a % of Prior Month Loan Balances (Annualized) 27.66% 28.47% 32.18% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .37% .40% .41% GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS December 2003 - December 2004 (Dollars in millions) 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 ----------- --------- --------- 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% 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 ----------- --------- --------- 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% CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 -----END PRIVACY-ENHANCED MESSAGE-----