-----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, HfbEcrU9MRhpbiiiAW2C6efh16lQMulQbm4xovPV+hKXdtPVNFyO7OFo35Tj6kYP OIxF6eAENLyByYT0I2M6Xg== 0001157523-05-009016.txt : 20051020 0001157523-05-009016.hdr.sgml : 20051020 20051020155816 ACCESSION NUMBER: 0001157523-05-009016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051020 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20051020 DATE AS OF CHANGE: 20051020 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: 051147392 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 a4999760.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): October 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 Third Quarter 2005 Earnings Press Release 99.2 September 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: October 20, 2005 /s/ Russell W. Kettell --------------------------------------- Russell W. Kettell President and Chief Financial Officer EX-99.1 2 a4999760ex99-1.txt EXHIBIT 99.1 - EARNINGS PRESS RELEASE Exhibit 99.1 Golden West Reports 16% Earnings Increase for the Third Quarter OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 20, 2005--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, announced record diluted earnings per share of $1.22 in the third quarter, up 16% from the $1.05 reported during the same period in 2004. Per share profits for the first nine months of 2005 reached $3.50, a 15% increase from the $3.04 posted in the first three quarters of 2004. Opening his remarks on Golden West's results, Herbert Sandler, Chairman of the Board and Chief Executive Officer, stated, "The key driver behind the growth of the Company's profits continues to be our ability to expand our mortgage portfolio, which is our primary earning asset." In the third quarter, Golden West's loans receivable balance increased by $3.8 billion. Reflecting on the past three months' activity, Sandler noted, "Our lending team originated $13.8 billion of mortgages, just a bit below the all-time high of $14.1 billion set in the same period last year." For the first nine months of 2005, loan volume totaled $38.4 billion, up 7% from the $35.9 billion recorded in 2004. Adding to his explanation, Sandler observed, "As usual, the popularity of our main product, the adjustable rate mortgage, or ARM, is influenced by what's happening with fixed-rate mortgages, or FRMs, the customers' other alternative. Favorable long-term rates kept interest on FRMs near historic lows the past three months, providing an attractive option to borrowers. Despite stiff competition, our lending team had a successful quarter, with no material drop off from last year's record ARM production." Continuing, Sandler remarked, "On the one hand originations were strong in the third quarter, on the other hand repayment activity remained high, stimulated by low mortgage rates, strong home sales and a desire on the part of many borrowers to turn the equity in their homes into cash. But in the end, the new loans we added exceeded payoffs and amortization, leading to annualized growth of the Company's loan portfolio of 13%." Expanding his earnings explanation, Sandler pointed out, "Another key factor that influences Golden West's profits is the Company's primary spread, which is the difference between what we earn on loans and investments and what we pay for savings and borrowings." In the third quarter of 2005, Golden West's spread averaged 2.37%, down from 2.70% in the same period one year earlier. Explaining the decline, Sandler said, "Since June 2004, the Federal Reserve's Open Market Committee has raised the Federal Funds rate, which influences short-term yields, from 1.00% to 3.75%. Our spread normally contracts when short-term rates rise, because the yield we earn on our loan portfolio responds to interest rate movements a bit slower than the cost of our deposits and borrowings." Covering another earnings related topic, Sandler commented on the Company's general and administrative (G&A) expenses, noting, "Controlling spending is an important element of our business model, because we want to ensure as much of our income as possible flows through to the bottom line and is not eaten up by costs. We assess the success of this strategy using the G&A ratio, which measures the amount of money it takes to manage the Company's assets." Golden West's ratio of G&A to average assets for the three months ended September 30, 2005 improved to .80% from .87% in the same period one year earlier. Sandler added, "While average assets were up 23% from the third quarter of last year, expenditures grew only 13% during the same time frame, leading to a significant decline in our expense ratio." Moving to a discussion of another performance measure, Sandler explained, "One way we evaluate the quality of the loans we make is the ratio of nonperforming assets, often called NPAs, to total assets. The Company's careful lending practices, combined with a strong real estate market, have helped keep our NPA levels at historic lows." At September 30, 2005, Golden West's ratio was just .28%, down from a modest .35% one year earlier. In other third quarter news, the Company reported that it purchased 425,000 shares of Golden West stock, the first such activity since 2003. The program continued into the fourth quarter, and as of October 19, 2005, a total of 985,000 shares had been repurchased, with 17.7 million shares still available to be acquired under current Board authorizations. Concluding with a discussion of Golden West's fund-raising activity in the third quarter, Sandler commented, "The Company uses both retail deposits and borrowings from Federal Home Loan Banks and the capital markets to support our loan portfolio growth. As competition for savings heated up this past quarter, we did not aggressively pursue new deposits. We chose instead to borrow, which was the more cost effective alternative." As a result of this funding strategy, Golden West experienced a $797 million decline in retail savings in the third quarter, compared with a $3.1 billion increase in the same period one year earlier. However, in the first nine months of 2005, deposits grew $5.5 billion, an 11% increase from $4.9 billion recorded in the first three quarters of the prior year. Sandler added, "Borrowing is always an option for us because our credit ratings, which are the highest for any savings institution, allow us to raise money at favorable rates." Golden West's primary operating subsidiary, World Savings Bank, is rated Aa3 and AA- by Moody's Investors Services and Standard and Poor's, respectively, two of the leading credit rating agencies. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $120 billion as of September 30, 2005. The Company has one of the most extensive thrift branch systems in the country, with 282 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. Financial Information Attached GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF NET EARNINGS AND OTHER FINANCIAL DATA (Unaudited) (Dollars in thousands except per share figures) Three Months Ended Nine Months Ended September 30 September 30 ------------------------- ------------------------- 2005 2004 2005 2004 ------------ ------------ ------------ ------------ Interest Income Interest on loans $1,575,068 $1,025,021 $4,246,023 $2,835,482 Interest on mortgage-backed securities (MBS) 22,448 28,843 71,022 104,578 Interest and dividends on investments 34,250 19,066 90,408 50,359 ------------ ------------ ------------ ------------ 1,631,766 1,072,930 4,407,453 2,990,419 Interest Expense Interest on deposits 421,513 243,669 1,084,860 679,023 Interest on advances 328,755 123,565 825,934 279,547 Interest on repurchase agreements 43,747 13,767 102,701 29,407 Interest on other borrowings 89,923 26,800 222,001 75,373 ------------ ------------ ------------ ------------ 883,938 407,801 2,235,496 1,063,350 ------------ ------------ ------------ ------------ Net Interest Income 747,828 665,129 2,171,957 1,927,069 Provision for loan losses 2,810 197 5,501 830 ------------ ------------ ------------ ------------ Net Interest Income after Provision for Loan Losses 745,018 664,932 2,166,456 1,926,239 Noninterest Income Fees 106,748 53,292 260,865 150,601 Gain on the sale of securities, MBS and loans 3,089 1,901 6,694 11,154 Other 19,597 16,412 56,573 50,804 ------------ ------------ ------------ ------------ 129,434 71,605 324,132 212,559 Noninterest Expense General and administrative: Personnel 163,189 135,808 474,811 404,111 Occupancy 23,730 21,640 68,523 62,778 Technology and telecommuni- cations 23,228 18,768 67,902 59,070 Deposit insurance 1,857 1,743 5,581 5,303 Advertising 4,361 7,979 18,946 18,458 Other 21,017 24,522 64,432 67,787 ------------ ------------ ------------ ------------ 237,382 210,460 700,195 617,507 Earnings before Taxes on Income 637,070 526,077 1,790,393 1,521,291 Taxes on Income 254,830 201,299 699,474 580,071 ------------ ------------ ------------ ------------ Net Earnings $382,240 $324,778 $1,090,919 $941,220 ============ ============ ============ ============ Basic Earnings Per Share $1.24 $1.06 $3.55 $3.08 ============ ============ ============ ============ Diluted Earnings Per Share $1.22 $1.05 $3.50 $3.04 ============ ============ ============ ============ Average common shares outstanding 307,889,162 305,706,406 307,400,749 305,187,814 Average diluted common shares outstanding 312,174,156 310,573,378 311,950,220 310,034,404 Ratios: (a) Net earnings / average stockholders' equity (ROE) 18.85% 19.31% 18.74% 19.57% Net earnings / average assets (ROA) 1.28% 1.34% 1.27% 1.39% Net interest margin (b) 2.54% 2.78% 2.56% 2.88% General and administrative expense / average assets .80% .87% .81% .91% Efficiency ratio(c) 27.06% 28.57% 28.05% 28.86% (a) Ratios are annualized by multiplying the quarterly computation by four and the nine month computations 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 2005 2005 2005 ------------- ------------- ------------- ASSETS Cash $326,443 $301,269 $311,607 Securities available for sale at fair value 1,577,060 1,682,550 2,053,996 Purchased MBS available for sale at fair value 12,634 13,665 13,548 Purchased MBS held to maturity at cost 318,257 338,659 357,843 MBS with recourse held to maturity at cost 1,253,710 1,346,080 1,440,341 Loans held for sale 127,553 48,636 40,988 Loans held in portfolio less allowance for loan losses 114,801,293 110,999,190 105,641,104 ------------- ------------- ------------- Total Loans Receivable and MBS 116,513,447 112,746,230 107,493,824 Interest earned but uncollected 361,595 319,264 298,693 Investment in capital stock of Federal Home Loan Banks (FHLBs) at cost 1,797,533 1,688,661 1,662,312 Foreclosed real estate 8,828 8,769 10,840 Premises and equipment, net 401,713 403,121 398,181 Other assets 294,787 335,814 358,396 ------------- ------------- ------------- Total Assets $121,281,406 $117,485,678 $112,587,849 ============= ============= ============= LIABILITIES and STOCKHOLDERS' EQUITY Deposits $58,429,315 $59,226,140 $55,593,265 Advances from FHLBs 38,896,681 35,755,870 35,511,757 Securities sold under agreements to repurchase 5,150,000 4,450,000 4,050,000 Bank notes 2,488,983 2,232,955 2,485,936 Senior debt 6,705,316 6,736,979 5,955,989 Taxes on income 560,182 594,348 730,094 Other liabilities 780,460 552,943 681,310 Stockholders' equity 8,270,469 7,936,443 7,579,498 ------------- ------------- ------------- Total Liabilities and Stockholders' Equity $121,281,406 $117,485,678 $112,587,849 ============= ============= ============= Total deferred interest in loans receivable and MBS $279,388 $160,201 $90,172 Total deferred interest as a percentage of loans receivable and MBS .24% .14% .08% Capitalized mortgage servicing rights $40,684 $43,835 $48,208 Stockholders' equity / total assets 6.82% 6.76% 6.73% Book value per common share $26.89 $25.79 $24.68 Common shares outstanding 307,583,276 307,760,826 307,126,766 Dec. 31 Sep. 30 2004 2004 ------------- ------------- ASSETS Cash $292,421 $283,776 Securities available for sale at fair value 1,374,385 919,647 Purchased MBS available for sale at fair value 14,438 15,915 Purchased MBS held to maturity at cost 375,632 395,887 MBS with recourse held to maturity at cost 1,719,982 1,889,322 Loans held for sale 52,325 55,899 Loans held in portfolio less allowance for loan losses 100,506,854 94,259,118 ------------- ------------- Total Loans Receivable and MBS 102,669,231 96,616,141 Interest earned but uncollected 248,073 233,257 Investment in capital stock of Federal Home Loan Banks (FHLBs) at cost 1,563,276 1,484,560 Foreclosed real estate 11,461 8,815 Premises and equipment, net 391,523 378,769 Other assets 338,171 322,662 ------------- ------------- Total Assets $106,888,541 $100,247,627 ============= ============= LIABILITIES and STOCKHOLDERS' EQUITY Deposits $52,965,311 $51,666,515 Advances from FHLBs 33,781,895 32,017,135 Securities sold under agreements to repurchase 3,900,000 3,650,179 Bank notes 2,709,895 869,154 Senior debt 5,291,840 3,997,707 Taxes on income 561,772 611,997 Other liabilities 402,952 544,153 Stockholders' equity 7,274,876 6,890,787 ------------- ------------- Total Liabilities and Stockholders' Equity $106,888,541 $100,247,627 ============= ============= Total deferred interest in loans receivable and MBS $54,616 $36,042 Total deferred interest as a percentage of loans receivable and MBS .05% .04% Capitalized mortgage servicing rights $53,234 $63,763 Stockholders' equity / total assets 6.81% 6.87% Book value per common share $23.73 $22.51 Common shares outstanding 306,524,716 306,102,778 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 2005 2005 2005 ------------- ------------ ------------ AVERAGE BALANCES (a) Cash and investments $1,781,055 $2,085,597 $2,074,816 Loans receivable and MBS 114,661,554 110,124,924 105,079,482 Investment in capital stock of FHLBs 1,725,611 1,676,949 1,622,540 Deposits 58,912,429 57,300,656 54,116,414 Advances from FHLBs 36,894,412 35,696,338 34,986,559 Securities sold under agreements to repurchase 4,812,500 4,325,000 3,937,500 Other borrowings 9,118,909 8,579,755 8,132,422 Stockholders' equity 8,109,144 7,756,555 7,419,240 Total Average Assets 119,237,057 114,951,805 109,807,456 Average Earning Assets 117,875,145 113,599,941 108,489,822 Average Interest-Bearing Liabilities 109,738,250 105,901,749 101,172,895 OPERATING RESULTS Net interest income $747,828 $719,565 $704,564 Provision for loan losses 2,810 1,807 884 Noninterest income 129,434 112,085 82,613 Noninterest expense 237,382 238,574 224,239 ------------- ------------ ------------ Earnings before taxes on income 637,070 591,269 562,054 Taxes on income (b) 254,830 230,840 213,804 ------------- ------------ ------------ Net earnings $382,240 $360,429 $348,250 ============= ============ ============ Basic EPS $1.24 $1.17 $1.13 Diluted EPS $1.22 $1.16 $1.12 Average common shares outstanding 307,889,162 307,440,730 306,861,057 Average diluted common shares outstanding 312,174,156 311,770,849 311,539,734 Ratios: (c) Net earnings / average stockholders' equity (ROE) 18.85% 18.59% 18.78% Net earnings / average assets (ROA) 1.28% 1.25% 1.27% Net interest margin 2.54% 2.53% 2.60% General and administrative expense / average assets .80% .83% .82% Efficiency ratio 27.06% 28.69% 28.49% SPREAD DATA Yield on loan portfolio 5.72% 5.40% 5.06% Yield on interest-earning investments 3.93% 3.41% 2.90% ------------- ------------ ------------ Yield on interest-earning assets 5.70% 5.38% 5.02% ------------- ------------ ------------ Cost of deposits 2.97% 2.70% 2.39% Cost of borrowings 3.82% 3.34% 2.89% ------------- ------------ ------------ Cost of funds 3.38% 2.99% 2.62% ------------- ------------ ------------ Primary Spread at quarter end 2.32% 2.39% 2.40% ============= ============ ============ Average Primary Spread for the quarter 2.37% 2.39% 2.46% For the Quarter Ended ------------------------- Dec. 31 Sep. 30 2004 2004 ------------ ------------ AVERAGE BALANCES (a) Cash and investments $1,442,083 $1,680,206 Loans receivable and MBS 99,698,762 92,976,928 Investment in capital stock of FHLBs 1,521,608 1,413,980 Deposits 52,317,613 50,229,774 Advances from FHLBs 32,754,803 30,684,256 Securities sold under agreements to repurchase 3,900,045 3,590,338 Other borrowings 6,373,852 4,604,075 Stockholders' equity 7,073,030 6,729,240 Total Average Assets 103,634,158 96,997,990 Average Earning Assets 102,371,618 95,778,195 Average Interest-Bearing Liabilities 95,346,313 89,108,443 OPERATING RESULTS Net interest income $691,536 $665,129 Provision for loan losses 2,571 197 Noninterest income 81,364 71,605 Noninterest expense 222,619 210,460 ------------ ------------ Earnings before taxes on income 547,710 526,077 Taxes on income (b) 209,209 201,299 ------------ ------------ Net earnings $338,501 $324,778 ============ ============ Basic EPS $1.11 $1.06 Diluted EPS $1.09 $1.05 Average common shares outstanding 306,312,759 305,706,406 Average diluted common shares outstanding 311,179,468 310,573,378 Ratios: (c) Net earnings / average stockholders' equity (ROE) 19.14% 19.31% Net earnings / average assets (ROA) 1.31% 1.34% Net interest margin 2.70% 2.78% General and administrative expense / average assets .86% .87% Efficiency ratio 28.80% 28.57% SPREAD DATA Yield on loan portfolio 4.75% 4.59% Yield on interest-earning investments 2.08% 1.90% ------------ ------------ Yield on interest-earning assets 4.73% 4.57% ------------ ------------ Cost of deposits 2.08% 1.97% Cost of borrowings 2.38% 1.87% ------------ ------------ Cost of funds 2.22% 1.93% ------------ ------------ Primary Spread at quarter end 2.51% 2.64% ============ ============ Average Primary Spread for the quarter 2.60% 2.70% (a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four. (b) From quarter to quarter, the effective tax rate may fluctuate due to changes in the volume of business activity in the various states where we operate. (c) 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. 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 2005 2005 2005 ------------ ------------ ------------ LOAN ACTIVITY New real estate loans originated $13,768,941 $13,452,983 $11,174,737 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 76% 75% 78% Loan and MBS repayments $9,557,669 $8,207,391 $6,314,104 Loan and MBS repayment rate(a) 34.14% 30.74% 24.75% Net increase in loan portfolio $3,767,217 $5,252,406 $4,824,593 Growth rate of the loan portfolio (b) 13.37% 19.54% 18.80% Loan sales $225,897 $98,006 $91,114 Loans serviced for others $4,029,073 $4,105,410 $4,315,925 Nonperforming assets Loans and MBS 90 days or more past due $335,376 $322,173 $342,394 Foreclosed real estate 8,828 8,769 10,840 ------------ ------------ ------------ Total nonperforming assets $344,204 $330,942 $353,234 ============ ============ ============ Ratio of nonperforming assets (NPAs) to total assets .28% .28% .31% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% .00% Ratio of NPAs and TDRs to total assets .28% .28% .32% Loan loss reserve $293,375 $291,687 $290,192 Net loan chargeoffs $1,122 $312 $802 Net chargeoffs/average loans(c) .00% .00% .00% DEPOSIT ACTIVITY Deposit increase (decrease) $(796,825) $3,632,875 $2,627,954 STOCK REPURCHASE ACTIVITY Number of shares repurchased and retired 425,000 0 0 Cost of shares repurchased $25,156 $0 $0 Remaining number of shares authorized for repurchase 18,231,358 18,656,358 18,656,358 For the Quarter Ended ------------------------- Dec. 31 Sep. 30 2004 2004 ------------ ------------ LOAN ACTIVITY New real estate loans originated $13,083,888 $14,071,739 New adjustable rate mortgages as a percentage of new real estate loans originated 99% 99% New refinanced mortgages as a percentage of new real estate loans originated 75% 69% Loan and MBS repayments $6,665,374 $6,319,795 Loan and MBS repayment rate (a) 27.75% 28.51% Net increase in loan portfolio $6,053,090 $7,522,608 Growth rate of the loan portfolio (b) 25.06% 33.77% Loan sales $97,096 $99,405 Loans serviced for others $4,537,024 $4,812,072 Nonperforming assets Loans and MBS 90 days or more past due $332,329 $346,585 Foreclosed real estate 11,461 8,815 ------------ ------------ Total nonperforming assets $343,790 $355,400 ============ ============ Ratio of nonperforming assets (NPAs) to total assets .32% .35% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% Ratio of NPAs and TDRs to total assets .33% .36% Loan loss reserve $290,110 $290,079 Net loan chargeoffs $2,540 $114 Net chargeoffs/average loans (c) .01% .00% DEPOSIT ACTIVITY Deposit increase (decrease) $1,298,796 $3,055,162 STOCK REPURCHASE ACTIVITY 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 (a) The loan and MBS repayment rate is the quarterly repayments annualized as a percentage of the prior quarter's ending loan and MBS balance. (b) The growth rate of the loan portfolio is the quarterly growth annualized as a percentage of the prior quarter's ending loan portfolio. (c) Includes loans that were securitized and retained as MBS with recourse held to maturity. CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 EX-99.2 3 a4999760ex99-2.txt EXHIBIT 99.2 - STATISTICAL DATA PRESS RELEASE Exhibit 99.2 Golden West Financial Releases Thirteen Month Statistical Data OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 20, 2005--Golden West Financial Corporation (NYSE:GDW), parent of World Savings Bank, today released statistical data for the thirteen months ended September 30, 2005. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $120 billion as of September 30, 2005. The Company has one of the most extensive thrift branch systems in the country, with 282 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 September 2004 - September 2005 (Dollars in millions) 2005 ---------------------------------------- SEP AUG JUL JUN --------- --------- --------- --------- Total Assets $121,281 $119,621 $118,560 $117,486 Cash and Investments $1,904 $1,376 $1,861 $1,984 Loans and MBS $116,513 $115,461 $113,925 $112,746 Adjustable Rate Mortgages and MBS $113,375 $112,149 $110,864 $109,542 Loans Originated - Month $4,605 $4,822 $4,342 $4,825 Percentage ARMs - Month 99 % 99 % 99 % 99 % Percentage Refinances - Month 77 % 77 % 75 % 74 % Loans Originated - YTD $38,397 $33,792 $28,970 $24,628 Percentage ARMs - YTD 99 % 99 % 99 % 99 % Percentage Refinances - YTD 76 % 76 % 76 % 76 % Total Deposits $58,429 $58,582 $59,412 $59,226 Total Deposit Net Activity - Month $(153) $(830) $186 $1,525 Total Deposit Net Activity - YTD $5,464 $5,617 $6,447 $6,261 Federal Home Loan Bank Borrowings $38,897 $36,666 $36,259 $35,756 Other Borrowings: Reverse Repurchases 5,150 4,950 4,700 4,450 Federal Funds Purchased 0 0 0 0 Bank Notes 2,489 2,950 1,925 2,233 Senior Debt 6,705 6,727 6,710 6,737 --------- --------- --------- --------- Total Borrowings $53,241 $51,293 $49,594 $49,176 ========= ========= ========= ========= Yield on Loan Portfolio 5.72 % 5.61 % 5.51 % 5.40 % Yield on Interest-Earning Investments 3.93 3.61 3.34 3.41 --------- --------- --------- --------- Combined Yield on Interest- Earning Assets 5.70 % 5.60 % 5.49 % 5.38 % Cost of Deposits 2.97 % 2.89 % 2.78 % 2.70 % Cost of Federal Home Loan Bank Borrowings 3.79 3.61 3.42 3.29 Cost of Other Borrowings 3.93 3.68 3.58 3.47 --------- --------- --------- --------- Combined Cost of Funds 3.38 % 3.24 % 3.09 % 2.99 % --------- --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.32 % 2.36 % 2.40 % 2.39 % ========= ========= ========= ========= Loans Sold $84 $92 $50 $38 Loan and MBS Repayments and Payoffs - Month $3,229 $3,397 $2,932 $3,065 As a % of Prior Month Loan Balances (Annualized) 33.79 % 36.02 % 31.42 % 33.33 % Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .28 % .28 % .28 % .28 % 2005 ----------------------------- MAY APR MAR --------- --------- --------- Total Assets $115,532 $114,202 $112,588 Cash and Investments $1,712 $2,281 $2,366 Loans and MBS $111,089 $109,170 $107,494 Adjustable Rate Mortgages and MBS $107,861 $106,076 $104,481 Loans Originated - Month $4,432 $4,196 $4,514 Percentage ARMs - Month 99 % 100 % 99 % Percentage Refinances - Month 75 % 76 % 77 % Loans Originated - YTD $19,803 $15,371 $11,175 Percentage ARMs - YTD 99 % 99 % 99 % Percentage Refinances - YTD 77 % 77 % 78 % Total Deposits $57,701 $56,682 $55,593 Total Deposit Net Activity - Month $1,019 $1,089 $1,343 Total Deposit Net Activity - YTD $4,736 $3,717 $2,628 Federal Home Loan Bank Borrowings $35,759 $35,758 $35,512 Other Borrowings: Reverse Repurchases 4,450 4,350 4,050 Federal Funds Purchased 0 0 0 Bank Notes 2,399 2,547 2,486 Senior Debt 5,987 5,974 5,956 --------- --------- --------- Total Borrowings $48,595 $48,629 $48,004 ========= ========= ========= Yield on Loan Portfolio 5.28 % 5.16 % 5.06 % Yield on Interest-Earning Investments 3.10 2.99 2.90 --------- --------- --------- Combined Yield on Interest- Earning Assets 5.26 % 5.13 % 5.02 % Cost of Deposits 2.61 % 2.52 % 2.39 % Cost of Federal Home Loan Bank Borrowings 3.16 2.99 2.83 Cost of Other Borrowings 3.27 3.17 3.07 --------- --------- --------- Combined Cost of Funds 2.87 % 2.76 % 2.62 % --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.39 % 2.37 % 2.40 % ========= ========= ========= Loans Sold $29 $32 $32 Loan and MBS Repayments and Payoffs - Month $2,588 $2,555 $2,677 As a % of Prior Month Loan Balances (Annualized) 28.63 % 28.71 % 30.55 % Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .30 % .31 % .32 % 2005 2004 ------------------- ---------- FEB JAN DEC --------- --------- --------- Total Assets $110,663 $109,091 $106,889 Cash and Investments $2,170 $2,097 $1,667 Loans and MBS $105,811 $104,344 $102,669 Adjustable Rate Mortgages and MBS $102,705 $101,381 $99,731 Loans Originated - Month $3,262 $3,399 $4,727 Percentage ARMs - Month 99 % 99 % 99 % Percentage Refinances - Month 79 % 77 % 76 % Loans Originated - YTD $6,661 $3,399 $48,989 Percentage ARMs - YTD 99 % 99 % 99 % Percentage Refinances - YTD 78 % 77 % 72 % Total Deposits $54,250 $53,657 $52,965 Total Deposit Net Activity - Month $593 $692 $541 Total Deposit Net Activity - YTD $1,285 $692 $6,238 Federal Home Loan Bank Borrowings $35,624 $35,028 $33,782 Other Borrowings: Reverse Repurchases 3,900 3,900 3,900 Federal Funds Purchased 0 0 0 Bank Notes 2,842 2,681 2,710 Senior Debt 5,273 5,289 5,292 --------- --------- --------- Total Borrowings $47,639 $46,898 $45,684 ========= ========= ========= Yield on Loan Portfolio 4.95 % 4.84 % 4.75 % Yield on Interest-Earning Investments 2.62 2.55 2.08 --------- --------- --------- Combined Yield on Interest- Earning Assets 4.92 % 4.81 % 4.73 % Cost of Deposits 2.28 % 2.19 % 2.08 % Cost of Federal Home Loan Bank Borrowings 2.65 2.46 2.30 Cost of Other Borrowings 2.80 2.73 2.60 --------- --------- --------- Combined Cost of Funds 2.47 % 2.35 % 2.22 % --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.45 % 2.46 % 2.51 % ========= ========= ========= Loans Sold $30 $29 $33 Loan and MBS Repayments and Payoffs - Month $1,912 $1,726 $2,506 As a % of Prior Month Loan Balances (Annualized) 22.12 % 20.29 % 29.99 % Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .33 % .33 % .33 % 2004 ----------------------------- NOV OCT SEP --------- --------- --------- Total Assets $104,641 $102,759 $100,248 Cash and Investments $1,284 $1,614 $1,203 Loans and MBS $100,846 $98,664 $96,616 Adjustable Rate Mortgages and MBS $97,572 $95,580 $93,427 Loans Originated - Month $4,135 $4,222 $4,343 Percentage ARMs - Month 99 % 99 % 99 % Percentage Refinances - Month 75 % 73 % 71 % Loans Originated - YTD $44,262 $40,127 $35,905 Percentage ARMs - YTD 99 % 99 % 99 % Percentage Refinances - YTD 71 % 71 % 71 % Total Deposits $52,424 $52,215 $51,667 Total Deposit Net Activity - Month $209 $548 $800 Total Deposit Net Activity - YTD $5,697 $5,488 $4,940 Federal Home Loan Bank Borrowings $32,957 $32,263 $32,017 Other Borrowings: Reverse Repurchases 4,150 3,900 3,650 Federal Funds Purchased 20 0 0 Bank Notes 2,544 2,069 869 Senior Debt 3,993 4,000 3,998 --------- --------- --------- Total Borrowings $43,664 $42,232 $40,534 ========= ========= ========= Yield on Loan Portfolio 4.71 % 4.64 % 4.59 % Yield on Interest-Earning Investments 2.08 1.83 1.90 --------- --------- --------- Combined Yield on Interest- Earning Assets 4.69 % 4.62 % 4.57 % Cost of Deposits 2.02 % 2.00 % 1.97 % Cost of Federal Home Loan Bank Borrowings 2.10 1.91 1.78 Cost of Other Borrowings 2.27 2.22 2.21 --------- --------- --------- Combined Cost of Funds 2.07 % 1.99 % 1.93 % --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.62 % 2.63 % 2.64 % ========= ========= ========= Loans Sold $27 $37 $30 Loan and MBS Repayments and Payoffs - Month $2,114 $2,045 $2,113 As a % of Prior Month Loan Balances (Annualized) 25.86 % 25.54 % 26.96 % Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .35 % .35 % .36 % CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 -----END PRIVACY-ENHANCED MESSAGE-----