-----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, FpPN06UCjIBcyd1zgKcdJoZF/KRY9Ns17f5yvKeXLdWvboy/mAZ2NgyjvYdbKsyN 1Sl5GcuNNp6vl2kUp7hJTw== 0001157523-05-003530.txt : 20050420 0001157523-05-003530.hdr.sgml : 20050420 20050420142404 ACCESSION NUMBER: 0001157523-05-003530 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050420 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20050420 DATE AS OF CHANGE: 20050420 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: 05761647 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 a4868386.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): April 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 First Quarter 2005 Earnings Press Release 99.2 March 2005 Thirteen Month Statistical Data Press Release SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. GOLDEN WEST FINANCIAL CORPORATION Dated: April 20, 2005 By: /s/ Russell W. Kettell ------------------------------- Russell W. Kettell President and Chief Financial Officer EX-99.1 2 a4868386ex991.txt EARNINGS PRESS RELEASE Exhibit 99.1 Golden West Reports 15% Increase in Earnings Per Share, Record First Quarter Loan Originations and Deposit Growth OAKLAND, Calif.--(BUSINESS WIRE)--April 20, 2005--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, announced diluted earnings per share of $1.12 for the first three months of 2005, up 15% from the $0.97 reported during the same period in 2004. The Company also posted all-time high first quarter mortgage originations and retail savings growth. New loan volume totaled $11.2 billion, up 19% from the $9.4 billion reported one year earlier. At the same time, deposit inflows amounted to $2.6 billion, nearly four times the $657 million recorded in the first three months of 2004. In other news, Golden West received two separate accolades from the financial community during the first quarter. In early January, Morningstar, a leading provider of independent investment research, named the Company's Chief Executive Officers, Herbert and Marion Sandler, "2004 CEOs of the Year." Two months later, in the March 7, 2005 issue of FORTUNE magazine, Golden West was voted the nation's most admired mortgage services company. Opening with a discussion of the Company's loan growth, Herbert Sandler, Chairman of the Board of Golden West, reflected, "Customers continue to be attracted to the affordable payments and flexible terms offered by our primary product, the adjustable rate mortgage, or ARM. In addition, we maintained our high level of customer service, facilitating the rapid processing of mortgage applications. Our lending team took advantage of these factors and increased new loan volume 19% from the same period one year earlier." Sandler added, "The increase in our mortgage originations is noteworthy, because, according to industry estimates, total nationwide lending in the first quarter is projected to be down a bit from 2004 levels, and is substantially lower than the all-time highs experienced in 2003." Continuing, Sandler remarked, "The strong loan volume we generated in the first three months of 2005 easily exceeded the payoffs of existing mortgages. As a result, our loan portfolio, which is our primary earning asset, grew $4.8 billion, or at a 19% annualized rate. This growth is important, because the larger the Company's mortgage portfolio, the greater our ability to generate profits." Wrapping up his comments on lending results, Sandler noted, "In the first quarter, 99% of Golden West's new loan volume was monthly adjustable rate mortgages. Originating ARMs is an important part of our strategy, because the yields on these loans are responsive to changes in interest rates, thereby helping to limit the Company's earnings sensitivity when rates fluctuate." Adding to his 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." He continued, "Short-term interest rates have more than doubled since the first quarter last year. As a result, our spread has decreased, because our liabilities, which are made up of deposits and borrowings, respond to interest rate movements a bit faster than our ARM portfolio, which is tied to indexes that lag changes in market interest rates." In the first quarter of 2005, Golden West's spread averaged 2.46%, down from 2.90% one year earlier. Covering a final earnings related topic, Sandler commented on the Company's general and administrative expenses (G&A). He noted, "Total G&A was up 12% from the first quarter of 2004. As you would expect, a large portion of this spending increase supported the growth in our loan portfolio." He added, "Despite the rise in G&A, our expense ratio improved significantly from the first three months of 2004 because of the Company's strong asset growth." Golden West's ratio of G&A to average assets was .82% in the first quarter of 2005, compared to .95% 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 March 31, 2005, Golden West's ratio was .32%, down from just .48% one year earlier. "As our percentage indicates, the Company's history of impressive loan quality continued in the first quarter." Concluding with a discussion of Golden West's savings activity, Sandler stated, "Customers responded enthusiastically to the promoted products and rates we offered in the first quarter. As a result, our savings balances grew $2.6 billion, surpassing the previous record for the first quarter, which was set in 2003." Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $110 billion as of March 31, 2005. The Company has one of the most extensive thrift branch systems in the country, with 279 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 March 31 ------------------------- 2005 2004 ------------ ------------ Interest Income Interest on loans $ 1,258,615 $ 878,816 Interest on mortgage-backed securities 25,457 43,677 Interest and dividends on investments 27,413 17,264 ------------ ------------ 1,311,485 939,757 Interest Expense Interest on deposits 298,318 215,900 Interest on advances 223,268 73,038 Interest on repurchase agreements 25,264 6,922 Interest on other borrowings 60,071 24,643 ------------ ------------ 606,921 320,503 ------------ ------------ Net Interest Income 704,564 619,254 Provision for loan losses 884 241 ------------ ------------ Net Interest Income after Provision for Loan Losses 703,680 619,013 Noninterest Income Fees 63,922 40,674 Gain on the sale of securities, MBS and loans 1,758 2,962 Change in fair value of derivatives 219 1,082 Other 16,714 15,089 ------------ ------------ 82,613 59,807 Noninterest Expense General and administrative: Personnel 151,831 130,998 Occupancy 22,225 20,394 Technology and telecommunications 21,422 21,019 Deposit insurance 1,855 1,770 Advertising 7,540 5,256 Other 19,366 20,077 ------------ ------------ 224,239 199,514 Earnings before Taxes on Income 562,054 479,306 Taxes on Income 213,804 179,582 ------------ ------------ Net Earnings $ 348,250 $ 299,724 ============ ============ Basic Earnings Per Share $ 1.13 $ 0.98 ============ ============ Diluted Earnings Per Share $ 1.12 $ 0.97 ============ ============ Average common shares outstanding 306,861,057 304,547,274 Average diluted common shares outstanding 311,539,734 310,081,162 Ratios: (a) Net earnings / average stockholders' equity 18.78% 19.65% Net earnings / average assets 1.27% 1.42% Net interest margin (b) 2.60% 2.99% General and administrative expense / average assets .82% .95% Efficiency ratio (c) 28.49% 29.38% (a) Ratios are annualized by multiplying the quarterly computation by four. Averages are computed by adding the beginning balances and each monthend balance during the quarter and dividing by four. (b) Net interest margin is net interest income divided by average earning assets. (c) Efficiency ratio is general and administrative expense divided by the sum of net interest income and noninterest income. GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AND OTHER FINANCIAL DATA (Unaudited) (Dollars in thousands except per share figures) Mar. 31 Dec. 31 Sep. 30 2005 2004 2004 ------------- ------------- ------------- ASSETS Cash $ 311,607 $ 292,421 $ 283,776 Securities available for sale at fair value 2,053,996 1,374,385 919,647 Purchased mortgage-backed securities available for sale at fair value 13,548 14,438 15,915 Purchased mortgage-backed securities held to maturity at cost 357,843 375,632 395,887 Mortgage-backed securities with recourse held to maturity at cost 1,440,341 1,719,982 1,889,322 Loans held for sale 40,988 52,325 55,899 Loans held in portfolio less allowance for loan losses 105,641,104 100,506,854 94,259,118 ------------- ------------- ------------- Total Loans Receivable and Mortgage-Backed Securities 107,493,824 102,669,231 96,616,141 Interest earned but uncollected 298,693 248,073 233,257 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,662,312 1,563,276 1,484,560 Foreclosed real estate 10,840 11,461 8,815 Premises and equipment, net 398,181 391,523 378,769 Other assets 358,396 338,171 322,662 ------------- ------------- ------------- $112,587,849 $106,888,541 $100,247,627 ============= ============= ============= LIABILITIES and STOCKHOLDERS' EQUITY Deposits $ 55,593,265 $ 52,965,311 $ 51,666,515 Advances from Federal Home Loan Banks 35,511,757 33,781,895 32,017,135 Securities sold under agreements to repurchase 4,050,000 3,900,000 3,650,179 Bank notes 2,485,936 2,709,895 869,154 Senior debt 5,955,989 5,291,840 3,997,707 Taxes on income 730,094 561,772 611,997 Other liabilities 681,310 402,952 544,153 Stockholders' equity 7,579,498 7,274,876 6,890,787 ------------- ------------- ------------- $112,587,849 $106,888,541 $100,247,627 ============= ============= ============= Book value per common share $ 24.68 $ 23.73 $ 22.51 Common shares outstanding 307,126,766 306,524,716 306,102,778 Jun. 30 Mar. 31 2004 2004 ------------- ------------- ASSETS Cash $ 296,330 $ 248,710 Securities available for sale at fair value 1,539,885 1,123,463 Purchased mortgage-backed securities available for sale at fair value 18,401 19,895 Purchased mortgage-backed securities held to maturity at cost 411,881 437,580 Mortgage-backed securities with recourse held to maturity at cost 2,083,852 2,342,210 Loans held for sale 107,692 157,666 Loans held in portfolio less allowance for loan losses 86,471,707 80,121,686 ------------- ------------- Total Loans Receivable and Mortgage-Backed Securities 89,093,533 83,079,037 Interest earned but uncollected 203,145 191,475 Investment in capital stock of Federal Home Loan Banks at cost which approximates fair value 1,318,642 1,203,589 Foreclosed real estate 9,885 13,348 Premises and equipment, net 376,501 367,579 Other assets 320,381 377,570 ------------- ------------- $ 93,158,302 $ 86,604,771 ============= ============= LIABILITIES and STOCKHOLDERS' EQUITY Deposits $ 48,611,353 $ 47,383,623 Advances from Federal Home Loan Banks 28,712,498 24,805,930 Securities sold under agreements to repurchase 3,470,761 2,672,049 Bank notes 1,786,668 2,504,917 Senior debt 2,989,726 1,989,944 Taxes on income 587,357 627,431 Other liabilities 434,178 377,018 Stockholders' equity 6,565,761 6,243,859 ------------- ------------- $ 93,158,302 $ 86,604,771 ============= ============= Book value per common share $21.49 $20.47 Common shares outstanding 305,498,422 304,984,278 GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES QUARTERLY FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands except per share figures) For the Quarter Ended -------------------------------------- Mar. 31 Dec. 31 Sep. 30 2005 2004 2004 ------------ ------------ ------------ Net interest income $ 704,564 $ 691,536 $ 665,129 Provision for loan losses 884 2,571 197 Noninterest income 82,613 81,364 71,605 Noninterest expense 224,239 222,619 210,460 ------------ ------------ ------------ Earnings before taxes on income 562,054 547,710 526,077 Taxes on income (a) 213,804 209,209 201,299 ------------ ------------ ------------ Net earnings $ 348,250 $ 338,501 $ 324,778 ============ ============ ============ Basic EPS $ 1.13 $ 1.11 $ 1.06 Diluted EPS $ 1.12 $ 1.09 $ 1.05 Average common shares outstanding 306,861,057 306,312,759 305,706,406 Average diluted common shares outstanding 311,539,734 311,179,468 310,573,378 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) 18.78% 19.14% 19.31% Net earnings / average assets (ROA) 1.27% 1.31% 1.34% Net interest margin (c) 2.60% 2.70% 2.78% General and administrative expense / average assets .82% .86% .87% Efficiency ratio (d) 28.49% 28.80% 28.57% Loan loss reserve $ 290,192 $ 290,110 $ 290,079 Net loan chargeoffs (recoveries) $802 $2,540 $114 Stockholders' equity / total assets 6.73% 6.81% 6.87% Total deposit net activity $ 2,627,954 $ 1,298,796 $ 3,055,162 For the Quarter Ended ------------------------- Jun. 30 Mar. 31 2004 2004 ------------ ------------ Net interest income $ 642,686 $ 619,254 Provision for loan losses 392 241 Noninterest income 81,147 59,807 Noninterest expense 207,533 199,514 ------------ ------------ Earnings before taxes on income 515,908 479,306 Taxes on income (a) 199,190 179,582 ------------ ------------ Net earnings $ 316,718 $ 299,724 ============ ============ Basic EPS $ 1.04 $ 0.98 Diluted EPS $ 1.02 $ 0.97 Average common shares outstanding 305,304,064 304,547,274 Average diluted common shares outstanding 310,427,096 310,081,162 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) 19.79% 19.65% Net earnings / average assets (ROA) 1.41% 1.42% Net interest margin (c) 2.91% 2.99% General and administrative expense / average assets .93% .95% Efficiency ratio (d) 28.67% 29.38% Loan loss reserve $ 289,996 $ 289,351 Net loan chargeoffs (recoveries) $ (253) $ 827 Stockholders' equity / total assets 7.05% 7.21% Total deposit net activity $ 1,227,730 $ 656,658 (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 ----------------------------------------- Mar. 31 Dec. 31 Sep. 30 2005 2004 2004 ------------- ------------- ------------- AVERAGE BALANCES (a) Cash and investments $ 2,074,816 $ 1,442,083 $ 1,680,206 Loans receivable and mortgage- backed securities 105,079,482 99,698,762 92,976,928 Investment in capital stock of Federal Home Loan Banks 1,622,540 1,521,608 1,413,980 Deposits 54,116,414 52,317,613 50,229,774 Advances from Federal Home Loan Banks 34,986,559 32,754,803 30,684,256 Securities sold under agreements to repurchase 3,937,500 3,900,045 3,590,338 Other borrowings 8,132,422 6,373,852 4,604,075 Stockholders' equity 7,419,240 7,073,030 6,729,240 Total Average Assets 109,807,456 103,634,158 96,997,990 Average Earning Assets 108,489,822 102,371,618 95,778,195 Average Interest- Bearing Liabilities 101,172,895 95,346,313 89,108,443 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage- backed securities $107,493,824 $102,669,231 $ 96,616,141 Adjustable rate loans receivable and mortgage-backed securities 104,481,133 99,730,701 93,426,505 New real estate loans originated $ 11,174,737 $ 13,083,888 $ 14,071,739 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 78% 75% 69% LOANS SOLD AND SERVICED DATA Loan sales $ 91,114 $ 97,096 $ 99,405 Loans serviced for others 4,315,925 4,537,024 4,812,072 Balance of capitalized mortgage servicing rights 48,208(b) 53,234 63,763 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $ 342,394 $ 332,329 $ 346,585 Foreclosed real estate 10,840 11,461 8,815 ------------- ------------- ------------- Total nonperforming assets $ 353,234 $ 343,790 $ 355,400 ============= ============= ============= Ratio of nonperforming assets (NPAs) to total assets .31% .32% .35% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% .00% Ratio of NPAs and TDRs to total assets .32% .33% .36% SPREAD DATA Yield on loan portfolio 5.06% 4.75% 4.59% Yield on interest- earning investments 2.90% 2.08% 1.90% Yield on interest- earning assets 5.02% 4.73% 4.57% Cost of deposits 2.39% 2.08% 1.97% Cost of borrowings 2.89% 2.38% 1.87% Cost of funds 2.62% 2.22% 1.93% Yield on interest-earning assets less cost of funds (Primary Spread) at quarterend 2.40% 2.51% 2.64% Average Primary Spread for the quarter 2.46% 2.60% 2.70% For the Quarter Ended --------------------------- Jun. 30 Mar. 31 2004 2004 ------------- ------------- AVERAGE BALANCES (a) Cash and investments $ 1,650,596 $ 1,641,994 Loans receivable and mortgage- backed securities 85,818,380 80,498,053 Investment in capital stock of Federal Home Loan Banks 1,245,010 1,165,153 Deposits 47,798,007 47,029,050 Advances from Federal Home Loan Banks 26,735,540 23,231,041 Securities sold under agreements to repurchase 3,021,646 2,558,780 Other borrowings 4,654,051 4,351,662 Stockholders' equity 6,401,862 6,100,369 Total Average Assets 89,649,483 84,252,424 Average Earning Assets 88,389,797 82,963,346 Average Interest- Bearing Liabilities 82,209,244 77,170,533 LOAN BALANCE AND ACTIVITY Loans receivable and mortgage- backed securities $ 89,093,533 $ 83,079,037 Adjustable rate loans receivable and mortgage-backed securities 85,731,774 79,889,765 New real estate loans originated $ 12,439,588 $ 9,393,862 New adjustable rate mortgages as a percentage of new real estate loans originated 99% 98% New refinanced mortgages as a percentage of new real estate loans originated 71% 72% LOANS SOLD AND SERVICED DATA Loan sales $ 224,874 $ 131,589 Loans serviced for others 5,095,475 5,438,165 Balance of capitalized mortgage servicing rights 76,217 82,503 NONPERFORMING ASSETS Loans and MBS 90 days or more past due $ 368,502 $ 399,904 Foreclosed real estate 9,885 13,348 ------------- ------------- Total nonperforming assets $ 378,387 $ 413,252 ============= ============= Ratio of nonperforming assets (NPAs) to total assets .41% .48% Ratio of troubled debt restructured (TDRs) to total assets .00% .01% Ratio of NPAs and TDRs to total assets .41% .48% SPREAD DATA Yield on loan portfolio 4.50% 4.58% Yield on interest- earning investments 1.35% 1.05% Yield on interest- earning assets 4.46% 4.55% Cost of deposits 1.88% 1.85% Cost of borrowings 1.43% 1.32% Cost of funds 1.69% 1.63% Yield on interest-earning assets less cost of funds (Primary Spread) at quarterend 2.77% 2.92% Average Primary Spread for the quarter 2.86% 2.90% (a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four. (b) Includes an impairment reserve of $6.0 million at March 31, 2005. CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 EX-99.2 3 a4868386ex992.txt STATISTICAL DATA PRESS RELEASE Exhibit 99.2 Golden West Financial Releases Thirteen Month Statistical Data OAKLAND, Calif.--(BUSINESS WIRE)--April 20, 2005--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, today released statistical data for the thirteen months ended March 31, 2005. Headquartered in Oakland, Calif., Golden West is one of the nation's largest financial institutions with assets over $110 billion as of March 31, 2005. The Company has one of the most extensive thrift branch systems in the country, with 279 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 March 2004 - March 2005 (Dollars in millions) 2005 --------------------------------- MAR FEB JAN --------- --------- --------- Total Assets $112,588 $110,663 $109,091 Cash and Investments $ 2,366 $ 2,170 $ 2,097 Loans and MBS $107,494 $105,811 $104,344 Adjustable Rate Mortgages and MBS $104,481 $102,705 $101,381 Loans Originated - Month $ 4,514 $ 3,262 $ 3,399 Percentage ARMs - Month 99% 99% 99% Percentage Refinances - Month 77% 79% 77% Loans Originated - YTD $ 11,175 $ 6,661 $ 3,399 Percentage ARMs - YTD 99% 99% 99% Percentage Refinances - YTD 78% 78% 77% Total Deposits $ 55,593 $ 54,250 $ 53,657 Total Deposit Net Activity - Month $ 1,343 $ 593 $ 692 Total Deposit Net Activity - YTD $ 2,628 $ 1,285 $ 692 Federal Home Loan Bank Borrowings $ 35,512 $ 35,624 $ 35,028 Other Borrowings: Reverse Repurchases 4,050 3,900 3,900 Federal Funds Purchased 0 0 0 Bank Notes 2,486 2,842 2,681 Senior Debt 5,956 5,273 5,289 --------- --------- --------- Total Borrowings $ 48,004 $ 47,639 $ 46,898 ========= ========= ========= Yield on Loan Portfolio 5.06% 4.95% 4.84% Yield on Interest-Earning Investments 2.90 2.62 2.55 --------- --------- --------- Combined Yield on Interest- Earning Assets 5.02% 4.92% 4.81% Cost of Deposits 2.39% 2.28% 2.19% Cost of Federal Home Loan Bank Borrowings 2.83 2.65 2.46 Cost of Other Borrowings 3.07 2.80 2.73 --------- --------- --------- Combined Cost of Funds 2.62% 2.47% 2.35% --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.40% 2.45% 2.46% ========= ========= ========= Loans Sold $ 32 $ 30 $ 29 Loan and MBS Repayments and Payoffs - Month $ 2,677 $ 1,912 $ 1,726 As a % of Prior Month Loan Balances (Annualized) 30.55% 22.12% 20.29% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .32% .33% .33% 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% GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS March 2004 - March 2005 (Dollars in millions) 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% 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% CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 -----END PRIVACY-ENHANCED MESSAGE-----