-----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, EjrpPjC4SOuQbTs3oYaDnAE4i7Qsr8lcZ9hKB2az1z4dAuR5CQplfb0u1VvHlxMm EAsGd8Y63C+xlK8tg5Gt4A== 0001157523-06-003892.txt : 20060420 0001157523-06-003892.hdr.sgml : 20060420 20060420163223 ACCESSION NUMBER: 0001157523-06-003892 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060420 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events FILED AS OF DATE: 20060420 DATE AS OF CHANGE: 20060420 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: 06770322 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 a5128094.txt GOLDEN WEST FINANCIAL CORPORATION 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, 2006 --------------------- 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 Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2): [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ 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 2006 Earnings Press Release 99.2 March 2006 Thirteen Month Statistical Data Press Release Two numbers have changed from the First Quarter 2006 Earnings Press Release that was issued over Business Wire the morning of April 20, 2006. The new numbers are Loan and MBS repayments of $8,889,241,000 for the three months ended March 31, 2006 and a Loan and MBS repayment rate of 30.00% for the quarter ended March 31, 2006. The numbers previously reported were $8,606,922,000 and 29.30%, respectively. Item 8.01 Other Events Golden West's primary listing of its common stock is on the New York Stock Exchange (NYSE). The Company intends to voluntarily terminate its secondary listing on the Pacific Exchange (recently renamed NYSE Arca, Inc.) since the NYSE now owns the Pacific Exchange after its recent merger with Archipelago Holdings Inc. 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, 2006 /s/ Russell W. Kettell --------------------------------- Russell W. Kettell President and Chief Financial Officer EX-99.1 2 a5128094ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Golden West Reports 12% Earnings Increase for the First Quarter OAKLAND, Calif.--(BUSINESS WIRE)--April 20, 2006--Golden West Financial Corporation (NYSE:GDW)(PCX:GDW), parent of World Savings Bank, announced diluted earnings per share of $1.25 for the first three months of 2006, up 12% from the $1.12 reported in the same period in 2005. Opening his remarks with a review of Golden West's earnings results, Herbert Sandler, Chairman of the Board and Chief Executive Officer, stated, "As always, the key driver behind the growth of the Company's profits was the ability to expand our mortgage portfolio, which is our primary earning asset." Since the first quarter of last year, Golden West's loans receivable increased by $14.8 billion, or 14%. Reflecting on the lending environment, Sandler observed, "As usual, the popularity of our main product, the monthly adjustable rate mortgage, or ARM, is influenced by what's happening with fixed-rate mortgages, or FRMs, the customers' primary alternative. Low long-term interest rates made FRMs very attractive to borrowers. At the same time, the cost of ARMs continued to climb. Despite stiff competition, our first quarter loan volume of $11.6 billion was slightly above the $11.2 billion achieved one year earlier." Continuing, Sandler remarked, "While first quarter originations were solid, repayment activity remained high, stimulated by low mortgage rates, strong home sales, and a desire on the part of many borrowers to convert the equity in their homes into cash. Nevertheless, new loans exceeded payoffs, and the mortgage portfolio grew $2.9 billion in the quarter, or at a 10% annualized rate." Adding to his discussion of Golden West's quarterly performance, Sandler pointed out, "A key factor that influences Golden West's profits is the Company's primary spread, which is the difference between the yield on loans and investments and the cost of savings and borrowings." In the first quarter of 2006, Golden West's spread averaged 2.57%, down from 2.65% in the same period one year earlier. Explaining the decrease, Sandler said, "Since the beginning of last year, the Federal Reserve's Open Market Committee has raised the Federal Funds rate, which influences short-term yields, from 2.25% to 4.75%. Our spread normally contracts temporarily when short-term rates rise, because the yield we earn on our loan portfolio responds to interest rate movements more slowly than the cost of our deposits and borrowings." As a side note, Sandler pointed out that the Company's spreads have been adjusted for a change in financial reporting, which is discussed in more detail later in this release. In other news, Golden West reported deposit growth of $1.4 billion in the first three months of 2006, down from a first quarter record of $2.6 billion set in 2005. Commenting on the Company's savings activity, Sandler stated, "Renewed interest in the stock market along with aggressive pricing by our competitors slowed deposit inflows from last year's all-time high level." Moving to the topic of the Company's general and administrative (G&A) expenses, Sandler noted, "Controlling spending is an important element of our business model. We assess the success of this strategy using a ratio that measures the amount of resources it takes to manage the Company's assets." Golden West's ratio of G&A to average assets was .86% in the first three months of 2006, slightly above the low ..82% reported in the first quarter of 2005. Switching to a discussion of another performance measure, Sandler explained, "The principal way we evaluate the quality of 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 NPAs at historic lows." At March 31, 2006, Golden West's ratio of nonperforming assets to total assets was a low .34%, just a bit more than the .31% posted one year earlier. Sandler then took a moment to point out two changes in the Company's financial reporting. First he explained a change in the presentation of fee income, noting, "Until this year, we reported the fees received from the early prepayment of loans and late payment charges on the 'Fee Income' line of our income statement. In the first quarter of 2006, the Office of Thrift Supervision, or OTS, our primary regulator, changed its financial reporting practice for the classification of these items, requiring that they be recorded as interest income. This adjustment by the OTS led to a change in industry practice in the reporting of prepayment fees and late charges. Accordingly, we have updated our 'Consolidated Statement of Net Earnings' for 2006 and earlier years to include these fees with 'Interest Income.' While this was a reclassification only, and had no impact on our bottom line, some of our key financial data, such as the yield on the loan portfolio, the net interest margin and the primary spread, changed as a result." Discussing the second change in reporting, Sandler spoke about the implementation of Financial Accounting Standard (FAS) 123R. He remarked, "In accordance with FAS 123R, as of the first quarter of 2006, stock option expense is now included in the Company's general and administrative, or G&A, expense. This accounting change added approximately $3.6 million of expense to our G&A in the first quarter." Concluding his remarks, Sandler reflected on Golden West's being named America's most admired mortgage services company in the March 6, 2006 issue of FORTUNE magazine. Previously, FORTUNE named Golden West the nation's most admired mortgage services company in 2005 and 2003. The Company ranked number one in each of the eight of the categories included in the survey: social responsibility, long-term investment value, employee talent, quality of products/services, innovation, use of corporate assets, financial soundness, and quality of management. Sandler observed, "This distinction recognizes our success in meeting the needs of the nation's homeowners, in utilizing the talents of our employees, and in serving the interests of our shareholders." Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $125 billion as of March 31, 2006. The Company has one of the most extensive thrift branch systems in the country, with 283 savings branches in 10 states and lending operations in 39 states. Golden West's stock is listed on the New York Stock Exchange (NYSE) under the ticker symbol GDW. The Company intends to voluntarily terminate its secondary listing on the Pacific Exchange (recently renamed NYSE Arca, Inc.) since the NYSE now owns the Pacific Exchange after its recent merger with Archipelago Holdings Inc. 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 --------------------------- 2006 2005 ------------ ------------ Interest Income Interest on loans (a) $ 1,954,585 $1,311,341 Interest on mortgage-backed securities (MBS) (a) 21,390 25,540 Interest and dividends on investments 43,410 27,413 ------------ ------------ 2,019,385 1,364,294 Interest Expense Interest on deposits 512,019 298,318 Interest on advances 429,456 223,268 Interest on repurchase agreements 62,384 25,264 Interest on other borrowings 132,460 60,071 ------------ ------------ 1,136,319 606,921 ------------ ------------ Net Interest Income (a) 883,066 757,373 Provision for loan losses 4,293 884 ------------ ------------ Net Interest Income after Provision for Loan Losses 878,773 756,489 Noninterest Income Fees (a) 12,959 11,113 Gain on the sale of securities and loans 2,183 1,758 Other 21,442 16,933 ------------ ------------ 36,584 29,804 Noninterest Expense General and administrative: Personnel 192,989 151,831 Occupancy 24,568 22,225 Technology and telecommunications 23,693 21,422 Deposit insurance 1,925 1,855 Advertising 6,513 7,540 Other 21,599 19,366 ------------ ------------ 271,287 224,239 Earnings before Taxes on Income 644,070 562,054 Taxes on Income 253,124 213,804 ------------ ------------ Net Earnings $ 390,946 $ 348,250 ============ ============ Basic Earnings Per Share $ 1.27 $ 1.13 ============ ============ Diluted Earnings Per Share $ 1.25 $ 1.12 ============ ============ Average common shares outstanding 308,397,529 306,861,057 Average diluted common shares outstanding 311,808,276 311,539,734 Ratios: (b) Net earnings / average stockholders' equity (ROE) 17.64% 18.78% Net earnings / average assets (ROA) 1.24% 1.27% Net interest margin (a)(c) 2.84% 2.79% General and administrative expense / average assets .86% .82% Efficiency ratio (d) 29.50% 28.49% (a) Reflects reclassification of prepayment fees and late payment charges from noninterest income to interest income. (b) 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. (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 CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AND OTHER FINANCIAL DATA (Unaudited) (Dollars in thousands except per share figures) Mar. 31 Dec. 31 Sep. 30 2006 2005 2005 ------------- ------------- ------------- ASSETS Cash $ 242,496 $ 518,161 $ 326,443 Federal funds sold, securities purchased under agreement to resell and other investments 1,579,133 1,321,626 1,235,155 Securities available for sale, at fair value 359,549 382,499 341,905 Purchased MBS available for sale, at fair value 10,904 11,781 12,634 Purchased MBS held to maturity, at cost 291,302 303,703 318,257 MBS with recourse held to maturity, at cost 1,104,248 1,168,480 1,253,710 Loans held for sale 136,526 83,365 127,553 Loans held in portfolio less allowance for loan losses 120,756,630 117,798,600 114,801,293 ------------- ------------- ------------- Total Loans Receivable and MBS 122,299,610 119,365,929 116,513,447 Interest earned but uncollected 420,400 392,303 361,595 Investment in capital stock of Federal Home Loan Banks (FHLBs) 1,887,906 1,857,580 1,797,533 Foreclosed real estate 10,408 8,682 8,828 Premises and equipment, net 409,582 403,084 401,713 Other assets 347,372 365,299 294,787 ------------- ------------- ------------- Total Assets $127,556,456 $124,615,163 $121,281,406 ============= ============= ============= LIABILITIES and STOCKHOLDERS' EQUITY Deposits $ 61,583,224 $ 60,158,319 $ 58,429,315 Advances from FHLBs 38,508,932 38,961,165 38,896,681 Securities sold under agreements to repurchase 5,900,000 5,000,000 5,150,000 Bank notes 2,976,916 2,393,951 2,488,983 Senior debt 8,075,302 8,194,266 6,705,316 Taxes on income 771,388 547,653 560,182 Other liabilities 697,734 688,844 780,460 Stockholders' equity 9,042,960 8,670,965 8,270,469 ------------- ------------- ------------- Total Liabilities and Stockholders' Equity $127,556,456 $124,615,163 $121,281,406 ============= ============= ============= Total deferred interest in loans receivable and MBS $ 665,715 $ 448,816 $ 279,388 Total deferred interest as a percentage of loans receivable and MBS .54% .38% .24% Capitalized mortgage servicing rights $ 35,518 $ 39,134 $ 40,684 Stockholders' equity / total assets 7.09% 6.96% 6.82% Book value per common share $ 29.31 $ 28.15 $ 26.89 Common shares outstanding 308,553,361 308,041,776 307,583,276 Jun. 30 Mar. 31 2005 2005 ------------- ------------- ASSETS Cash $ 301,269 $ 311,607 Federal funds sold, securities purchased under agreement to resell and other investments 1,091,702 1,674,914 Securities available for sale, at fair value 590,848 379,082 Purchased MBS available for sale, at fair value 13,665 13,548 Purchased MBS held to maturity, at cost 338,659 357,843 MBS with recourse held to maturity, at cost 1,346,080 1,440,341 Loans held for sale 48,636 40,988 Loans held in portfolio less allowance for loan losses 110,999,190 105,641,104 ------------- ------------- Total Loans Receivable and MBS 112,746,230 107,493,824 Interest earned but uncollected 319,264 298,693 Investment in capital stock of Federal Home Loan Banks (FHLBs) 1,688,661 1,662,312 Foreclosed real estate 8,769 10,840 Premises and equipment, net 403,121 398,181 Other assets 335,814 358,396 ------------- ------------- Total Assets $117,485,678 $112,587,849 ============= ============= LIABILITIES and STOCKHOLDERS' EQUITY Deposits $ 59,226,140 $ 55,593,265 Advances from FHLBs 35,755,870 35,511,757 Securities sold under agreements to repurchase 4,450,000 4,050,000 Bank notes 2,232,955 2,485,936 Senior debt 6,736,979 5,955,989 Taxes on income 594,348 730,094 Other liabilities 552,943 681,310 Stockholders' equity 7,936,443 7,579,498 ------------- ------------- Total Liabilities and Stockholders' Equity $117,485,678 $112,587,849 ============= ============= Total deferred interest in loans receivable and MBS $ 160,201 $ 90,172 Total deferred interest as a percentage of loans receivable and MBS .14% .08% Capitalized mortgage servicing rights $43,835 $48,208 Stockholders' equity / total assets 6.76% 6.73% Book value per common share $ 25.79 $ 24.68 Common shares outstanding 307,760,826 307,126,766 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 2006 2005 2005 ------------ ------------ ------------ AVERAGE BALANCES (a) Cash and investments $ 2,027,721 $ 2,522,688 $ 1,781,055 Loans receivable and MBS 120,928,224 117,975,267 114,661,554 Investment in capital stock of FHLBs 1,869,824 1,818,288 1,725,611 Deposits 60,830,208 59,484,698 58,912,429 Advances from FHLBs 38,346,279 38,841,391 36,894,412 Securities sold under agreements to repurchase 5,537,500 5,075,000 4,812,500 Other borrowings 10,956,053 10,087,729 9,118,909 Stockholders' equity 8,867,321 8,461,148 8,109,144 Total Average Assets 125,994,603 123,443,755 119,237,057 Average Earning Assets 124,364,450 121,904,742 117,875,145 Average Interest-Bearing Liabilities 115,670,040 113,488,818 109,738,250 OPERATING RESULTS Net interest income (b) $ 883,066 $ 858,842 $ 840,624 Provision for loan losses 4,293 2,789 2,810 Noninterest income (b) 36,584 42,276 36,638 Noninterest expense 271,287 262,220 237,382 ------------ ------------ ------------ Earnings before taxes on income 644,070 636,109 637,070 Taxes on income 253,124 240,864 254,830 ------------ ------------ ------------ Net earnings $ 390,946 $ 395,245 $ 382,240 ============ ============ ============ Effective tax rate (c) 39.30% 37.87% 40.00% Prepayment fees included in interest income $ 77,813 $ 90,640 $ 87,856 Late fees included in interest income $ 5,943 $ 5,088 $ 4,940 Basic EPS $ 1.27 $ 1.29 $ 1.24 Diluted EPS $ 1.25 $ 1.27 $ 1.22 Average common shares outstanding 308,397,529 307,350,451 307,889,162 Average diluted common shares outstanding 311,808,276 311,323,062 312,174,156 Ratios: (d) Net earnings / average stockholders' equity (ROE) 17.64% 18.69% 18.85% Net earnings / average assets (ROA) 1.24% 1.28% 1.28% Net interest margin (b) 2.84% 2.82% 2.85% General and administrative expense / average assets .86% .85% .80% Efficiency ratio 29.50% 29.10% 27.06% SPREAD DATA Yield on loan portfolio (b) 6.71% 6.37% 6.04% Yield on interest-earning investments 4.91% 4.11% 3.93% ------------ ------------ ------------ Yield on interest-earning assets (b) 6.69% 6.35% 6.01% ------------ ------------ ------------ Cost of savings 3.56% 3.24% 2.97% Cost of borrowings 4.78% 4.37% 3.82% ------------ ------------ ------------ Cost of funds 4.14% 3.78% 3.38% ------------ ------------ ------------ Primary Spread at quarter end (b) 2.55% 2.57% 2.63% ============ ============ ============ Average Primary Spread for the quarter (b) 2.57% 2.61% 2.66% For the Quarter Ended ------------------------- Jun. 30 Mar. 31 2005 2005 ------------ ------------ AVERAGE BALANCES (a) Cash and investments $ 2,085,597 $ 2,074,816 Loans receivable and MBS 110,124,924 105,079,482 Investment in capital stock of FHLBs 1,676,949 1,622,540 Deposits 57,300,656 54,116,414 Advances from FHLBs 35,696,338 34,986,559 Securities sold under agreements to repurchase 4,325,000 3,937,500 Other borrowings 8,579,755 8,132,422 Stockholders' equity 7,756,555 7,419,240 Total Average Assets 114,951,805 109,807,456 Average Earning Assets 113,599,941 108,489,822 Average Interest-Bearing Liabilities 105,901,749 101,172,895 OPERATING RESULTS Net interest income (b) $ 795,516 $ 757,373 Provision for loan losses 1,807 884 Noninterest income (b) 36,134 29,804 Noninterest expense 238,574 224,239 ------------ ------------ Earnings before taxes on income 591,269 562,054 Taxes on income 230,840 213,804 ------------ ------------ Net earnings $ 360,429 $ 348,250 ============ ============ Effective tax rate (c) 39.04% 38.04% Prepayment fees included in interest income $ 71,211 $ 48,343 Late fees included in interest income $ 4,740 $ 4,466 Basic EPS $ 1.17 $ 1.13 Diluted EPS $ 1.16 $ 1.12 Average common shares outstanding 307,440,730 306,861,057 Average diluted common shares outstanding 311,770,849 311,539,734 Ratios: (d) Net earnings / average stockholders' equity (ROE) 18.59% 18.78% Net earnings / average assets (ROA) 1.25% 1.27% Net interest margin (b) 2.80% 2.79% General and administrative expense / average assets .83% .82% Efficiency ratio 28.69% 28.49% SPREAD DATA Yield on loan portfolio (b) 5.67% 5.25% Yield on interest-earning investments 3.41% 2.90% ------------ ------------ Yield on interest-earning assets (b) 5.64% 5.22% ------------ ------------ Cost of savings 2.70% 2.39% Cost of borrowings 3.34% 2.89% ------------ ------------ Cost of funds 2.99% 2.62% ------------ ------------ Primary Spread at quarter end (b) 2.65% 2.60% ============ ============ Average Primary Spread for the quarter (b) 2.62% 2.65% (a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four. (b) Reflects reclassification of prepayment fees and late payment charges from noninterest income to interest income. (c) 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. (d) 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 -------------------------------------- Mar. 31 Dec. 31 Sep. 30 2006 2005 2005 ------------ ------------ ------------ LOAN ACTIVITY New real estate loans originated $11,565,992 $13,119,738 $13,768,941 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 84% 81% 76% Loan and MBS repayments (a) $ 8,889,241 $ 9,743,052 $ 9,557,669 Loan and MBS repayment rate (b) 30.00% 33.68% 34.14% Net increase in loan portfolio $ 2,933,681 $ 2,852,482 $ 3,767,217 Growth rate of the loan portfolio (c) 9.83% 9.79% 13.37% Loan sales $ 195,641 $ 377,195 $ 225,897 Loans serviced for others $ 4,177,222 $ 4,158,750 $ 4,029,073 Nonperforming assets Loans and MBS 90 days or more past due $ 426,480 $ 373,671 $ 335,376 Foreclosed real estate 10,408 8,682 8,828 ------------ ------------ ------------ Total nonperforming assets $ 436,888 $ 382,353 $ 344,204 ============ ============ ============ Ratio of nonperforming assets (NPAs) to total assets .34% .31% .28% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% .00% Ratio of NPAs and TDRs to total assets .34% .31% .28% Loan loss reserve $ 299,965 $ 295,859 $ 293,375 Net loan chargeoffs $ 187 $ 305 $ 1,122 Net chargeoffs/average loans (d) .00% .00% .00% DEPOSIT ACTIVITY Deposit increase (decrease) $ 1,424,905 $ 1,729,004 $ (796,825) STOCK REPURCHASE ACTIVITY Number of shares repurchased and retired 0 560,000 425,000 Cost of shares repurchased $ 0 $ 32,728 $ 25,156 Remaining number of shares authorized for repurchase 17,671,358 17,671,358 18,231,358 For the Quarter Ended ------------------------- Jun. 30 Mar. 31 2005 2005 ------------ ------------ LOAN ACTIVITY New real estate loans originated $13,452,983 $11,174,737 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% 78% Loan and MBS repayments (a) $ 8,207,391 $ 6,314,104 Loan and MBS repayment rate (b) 30.74% 24.75% Net increase in loan portfolio $ 5,252,406 $ 4,824,593 Growth rate of the loan portfolio (c) 19.54% 18.80% Loan sales $ 98,006 $ 91,114 Loans serviced for others $ 4,105,410 $ 4,315,925 Nonperforming assets Loans and MBS 90 days or more past due $ 322,173 $ 342,394 Foreclosed real estate 8,769 10,840 ------------ ------------ Total nonperforming assets $ 330,942 $ 353,234 ============ ============ Ratio of nonperforming assets (NPAs) to total assets .28% .31% Ratio of troubled debt restructured (TDRs) to total assets .00% .00% Ratio of NPAs and TDRs to total assets .28% .32% Loan loss reserve $ 291,687 $ 290,192 Net loan chargeoffs $ 312 $ 802 Net chargeoffs/average loans (d) .00% .00% DEPOSIT ACTIVITY Deposit increase (decrease) $ 3,632,875 $ 2,627,954 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) For ELOCs, only amounts paid at the termination of the line of credit are included in repayments. Prior to 2006, ELOCs were not included in repayments. (b) The loan and MBS repayment rate is the quarterly repayments annualized as a percentage of the prior quarter's ending loan and MBS balance. (c) The growth rate of the loan portfolio is the quarterly growth annualized as a percentage of the prior quarter's ending loan portfolio. (d) 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 a5128094ex99_2.txt EXHIBIT 99.2 Exhibit 99.2 Golden West Financial Releases Thirteen Month Statistical Data OAKLAND, Calif.--(BUSINESS WIRE)--April 20, 2006--Golden West Financial Corporation (NYSE:GDW)(PCX:GDW), parent of World Savings Bank, today released statistical data for the thirteen months ended March 31, 2006. Headquartered in Oakland, California, Golden West is one of the nation's largest financial institutions with assets over $125 billion as of March 31, 2006. The Company has one of the most extensive thrift branch systems in the country, with 283 savings branches in 10 states and lending operations in 39 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 March 2005 - March 2006 (Dollars in millions) 2006 ------------------------------ MAR FEB JAN --------- --------- ---------- Total Assets $127,556 $126,475 $125,332 Cash and Investments $ 2,181 $ 1,904 $ 1,803 Loans and MBS $122,300 $121,526 $120,521 Adjustable Rate Mortgages and MBS $119,240 $118,407 $117,519 Loans Originated -- Month $ 4,472 $ 3,520 $ 3,574 Percentage ARMs -- Month 99% 99% 99% Percentage Refinances -- Month 85% 86% 83% Loans Originated -- YTD $ 11,566 $ 7,094 $ 3,574 Percentage ARMs -- YTD 99% 99% 99% Percentage Refinances -- YTD 84% 84% 83% Total Deposits $ 61,583 $ 61,056 $ 60,523 Total Deposit Net Activity -- Month $ 527 $ 533 $ 365 Total Deposit Net Activity -- YTD $ 1,425 $ 898 $ 365 Federal Home Loan Bank Borrowings $ 38,509 $ 37,957 $ 37,958 Other Borrowings: Reverse Repurchases 5,900 5,500 5,750 Bank Notes 2,977 3,153 2,653 Senior Debt 8,075 8,186 8,192 --------- --------- ---------- Total Borrowings $ 55,461 $ 54,796 $ 54,553 ========= ========= ========== Yield on Loan Portfolio 6.71% 6.60% 6.49% Yield on Interest-Earning Investments 4.91 4.60 4.51 --------- --------- ---------- Combined Yield on Interest- Earning Assets 6.69% 6.58% 6.47% Cost of Savings 3.56% 3.46% 3.36% Cost of Federal Home Loan Bank Borrowings 4.75 4.62 4.45 Cost of Other Borrowings 4.87 4.65 4.58 --------- --------- ---------- Combined Cost of Funds 4.14% 4.01% 3.89% --------- --------- ---------- Net Interest Rate Spread (Primary Spread) 2.55% 2.57% 2.58% ========= ========= ========== Loans Sold $ 77 $ 67 $ 52 Loan and MBS Repayments and Payoffs -- Month $ 3,683 $ 2,681 $ 2,526 As a % of Prior Month Loan Balance (Annualized) 36.63% 26.88% 25.58% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .34% .35% .33% 2005 --------------------------------------- DEC NOV OCT SEP --------- --------- --------- --------- Total Assets $124,615 $124,456 $123,422 $121,281 Cash and Investments $ 2,222 $ 3,052 $ 2,913 $ 1,904 Loans and MBS $119,366 $118,435 $117,587 $116,513 Adjustable Rate Mortgages and MBS $116,370 $115,258 $114,306 $113,375 Loans Originated -- Month $ 4,587 $ 4,255 $ 4,277 $ 4,605 Percentage ARMs -- Month 99% 99% 99% 99% Percentage Refinances -- Month 81% 81% 80% 77% Loans Originated -- YTD $ 51,516 $ 46,929 $ 42,674 $ 38,397 Percentage ARMs -- YTD 99% 99% 99% 99% Percentage Refinances -- YTD 77% 77% 77% 76% Total Deposits $ 60,158 $ 60,268 $ 59,083 $ 58,429 Total Deposit Net Activity -- Month $ (110) $ 1,185 $ 654 $ (153) Total Deposit Net Activity -- YTD $ 7,193 $ 7,303 $ 6,118 $ 5,464 Federal Home Loan Bank Borrowings $ 38,961 $ 38,615 $ 38,893 $ 38,897 Other Borrowings: Reverse Repurchases 5,000 5,000 5,150 5,150 Bank Notes 2,394 2,024 2,163 2,489 Senior Debt 8,194 8,191 8,189 6,705 --------- --------- --------- --------- Total Borrowings $ 54,549 $ 53,830 $ 54,395 $ 53,241 ========= ========= ========= ========= Yield on Loan Portfolio 6.37% 6.27% 6.16% 6.04% Yield on Interest-Earning Investments 4.11 4.08 4.07 3.93 --------- --------- --------- --------- Combined Yield on Interest- Earning Assets 6.35% 6.22% 6.12% 6.01% Cost of Savings 3.24% 3.14% 3.06% 2.97% Cost of Federal Home Loan Bank Borrowings 4.33 4.13 3.94 3.79 Cost of Other Borrowings 4.47 4.18 4.07 3.93 --------- --------- --------- --------- Combined Cost of Funds 3.78% 3.62% 3.50% 3.38% --------- --------- --------- --------- Net Interest Rate Spread (Primary Spread) 2.57% 2.60% 2.62% 2.63% ========= ========= ========= ========= Loans Sold $ 98 $ 160 $ 119 $ 84 Loan and MBS Repayments and Payoffs -- Month $ 3,371 $ 3,190 $ 3,183 $ 3,229 As a % of Prior Month Loan Balance (Annualized) 34.40% 32.78% 33.01% 33.79% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .31% .31% .29% .28% GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES MONTHLY FINANCIAL HIGHLIGHTS March 2005 - March 2006 (Dollars in millions) 2005 ------------------------------ AUG JUL JUN --------- --------- ---------- Total Assets $119,621 $118,560 $117,486 Cash and Investments $ 1,376 $ 1,861 $ 1,984 Loans and MBS $115,461 $113,925 $112,746 Adjustable Rate Mortgages and MBS $112,149 $110,864 $109,542 Loans Originated -- Month $ 4,822 $ 4,342 $ 4,825 Percentage ARMs -- Month 99% 99% 99% Percentage Refinances -- Month 77% 75% 74% Loans Originated -- YTD $ 33,792 $ 28,970 $ 24,628 Percentage ARMs -- YTD 99% 99% 99% Percentage Refinances -- YTD 76% 76% 76% Total Deposits $ 58,582 $ 59,412 $ 59,226 Total Deposit Net Activity -- Month $ (830) $ 186 $ 1,525 Total Deposit Net Activity -- YTD $ 5,617 $ 6,447 $ 6,261 Federal Home Loan Bank Borrowings $ 36,666 $ 36,259 $ 35,756 Other Borrowings: Reverse Repurchases 4,950 4,700 4,450 Bank Notes 2,950 1,925 2,233 Senior Debt 6,727 6,710 6,737 --------- --------- ---------- Total Borrowings $ 51,293 $ 49,594 $ 49,176 ========= ========= ========== Yield on Loan Portfolio 5.93% 5.79% 5.67% Yield on Interest-Earning Investments 3.61 3.34 3.41 --------- --------- ---------- Combined Yield on Interest- Earning Assets 5.91% 5.77% 5.64% Cost of Savings 2.89% 2.78% 2.70% Cost of Federal Home Loan Bank Borrowings 3.61 3.42 3.29 Cost of Other Borrowings 3.68 3.58 3.47 --------- --------- ---------- Combined Cost of Funds 3.24% 3.09% 2.99% --------- --------- ---------- Net Interest Rate Spread (Primary Spread) 2.67% 2.68% 2.65% ========= ========= ========== Loans Sold $ 92 $ 50 $ 38 Loan and MBS Repayments and Payoffs -- Month $ 3,397 $ 2,932 $ 3,065 As a % of Prior Month Loan Balance (Annualized) 36.02% 31.42% 33.33% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .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 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 5.53% 5.38% 5.25% Yield on Interest-Earning Investment 3.10 2.99 2.90 --------- ---------- --------- Combined Yield on Interest-Earning Assets 5.51% 5.35% 5.22% Cost of Savings 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) 2.64% 2.59% 2.60% ========= ========== ========= Loans Sold $ 29 $ 32 $ 32 Loan and MBS Repayments and Payoffs Month $ 2,588 $ 2,555 $ 2,677 As a % of Prior Month Loan Balance (Annualized) 28.63% 28.71% 30.55% Nonperforming Assets and Troubled Debt Restructured as a % of Total Assets .30% .31% .32% CONTACT: Golden West Financial Corporation William C. Nunan, 510-446-3614 -----END PRIVACY-ENHANCED MESSAGE-----