Downey Financial 8-K Financial statements and exhibits

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EXHIBIT 99.1

DOWNEY FINANCIAL CORP.
N E W S   R E L E A S E	For further information contact: Thomas E. Prince Chief Financial Officer (949)509-4440

DOWNEY FINANCIAL CORP. ANNOUNCES
THIRTEEN MONTH SELECTED FINANCIAL DATA

          Newport Beach, California – June 16, 2003 – Downey Financial Corp. (NYSE: DSL) today released monthly selected financial data for the thirteen months ended May 31, 2003.

          Assets totaled $11.5 billion at May 31, 2003, and included $230 million of trading securities. In light of the Federal Reserve’s change in bias towards weakness at their May 6, 2003 meeting and the potential for further declines in market interest rates, the trading securities were purchased as a partial hedge against the value of our mortgage servicing rights. These securities are carried at fair value, with any changes in fair value reflected in earnings.

          Downey Financial Corp. is the parent company of Downey Savings and Loan Association, F.A., with 167 branches throughout California and three in Arizona.

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DOWNEY FINANCIAL CORP. AND SUBSIDIARIES
Monthly Selected Financial Data (Unaudited)
At May 2003 – May 2002

			May 31,			Apr. 30,			Mar. 31,			Feb. 28,			Jan. 31,			Dec. 31,			Nov. 30,			Oct. 31,			Sep. 30,			Aug. 31,			Jul. 31,			Jun. 30,			May 31,
(Dollars in Thousands)			2003			2003			2003			2003			2003			2002			2002			2002			2002			2002			2002			2002			2002
Balance sheet summary
Total assets			$11,536,822			$11,419,191			$11,437,923			$11,585,462			$11,920,812			$11,978,151			$11,860,286			$11,814,073			$12,518,418			$11,390,805			$11,258,609			$11,130,428			$11,000,802
Loans receivable held for investment			9,667,703			9,845,244			10,040,006			10,197,870			10,262,273			10,322,637			10,317,276			10,176,620			10,000,420			9,986,862			9,957,646			9,846,446			9,754,554
Loans held for sale, at lower of cost or fair value			771,876			777,408			633,676			477,196			614,497			652,052			624,962			756,236			665,587			610,767			518,206			381,465			419,132
Mortgage-backed securities available for sale,
	at fair value		1,757			1,787			1,875			1,936			2,008			2,253			2,284			2,309			1,019,030			3,467			53,963			58,122			79,761
Cash and investment securities(a)			588,861			508,191			477,451			612,344			744,105			707,655			612,735			584,841			541,866			512,521			444,282			547,860			450,511
Trading securities			229,824			-			-			-			-			-			-			-			-			-			-			-			-
Deposits			8,996,356			8,988,854			8,997,558			8,900,813			9,131,221			9,238,350			9,346,898			9,235,711			9,056,932			8,936,964			8,748,757			8,690,558			8,600,673
Federal Home Loan Bank advances and
	other borrowings		1,375,977			1,262,850			1,300,850			1,524,550			1,649,050			1,624,084			1,361,323			1,438,267			1,869,789			1,402,809			1,451,700			1,413,607			1,357,136
Capital securities			120,000			120,000			120,000			120,000			120,000			120,000			120,000			120,000			120,000			120,000			120,000			120,000			120,000
Non-performing assets as a % of total assets			0.60	%		0.64	%		0.66	%		0.72	%		0.71	%		0.67	%		0.70	%		0.74	%		0.71	%		0.75	%		0.72	%		0.75	%		0.81	%
Loan activity for the month ended
Loans for investment portfolio:
	Originations and purchases:
		Residential one-to-four units	$ 226,406			$ 206,603			$ 213,936			$ 238,381			$ 253,943			$ 344,259			$ 438,285			$ 453,911			$ 241,630			$ 283,207			$ 356,740			$ 336,967			$ 288,829
		Residential one-to-four units – subprime	21,536			24,627			16,992			30,867			28,629			34,579			31,665			46,388			36,160			55,143			59,228			51,800			51,625
		All other	19,144			30,376			21,340			12,492			17,323			35,037			6,679			19,393			10,095			18,583			13,898			49,375			54,084
	Repayments		(440,605		)	( 453,032		)	( 420,438		)	( 346,609		)	( 360,565		)	( 397,401		)	( 347,365		)	( 345,541		)	( 276,728		)	( 327,564		)	( 323,361		)	( 322,475		)	( 316,136		)
Loans for sale:
	Originations and purchases		702,407			720,127			590,803			450,124			566,220			657,812			614,291			769,006			661,000			607,571			531,102			368,503			395,951
	Sales		( 717,205		)	( 575,301		)	( 432,705		)	( 587,886		)	( 603,575		)	( 632,269		)	( 745,848		)	( 673,969		)	( 604,877		)	( 564,948		)	( 394,061		)	( 423,024		)	( 289,196		)
Mortgage loans serviced for others
Total			$8,745,281			$8,544,614			$8,535,480			$8,568,387			$8,368,485			$8,316,236			$8,116,981			$7,795,727			$7,502,157			$7,436,673			$7,164,330			$6,962,403			$6,733,734
With capitalized mortgage servicing rights:(b)
	Amount		8,677,682			8,472,550			8,460,152			8,490,821			8,257,320			8,036,393			7,786,906			7,439,569			7,355,700			7,223,015			6,966,470			6,807,306			6,574,857
	Weighted average interest rate		6.20	%		6.28	%		6.35	%		6.40	%		6.45	%		6.51	%		6.58	%		6.65	%		6.71	%		6.75	%		6.78	%		6.80	%		6.82	%
Interest rate spread data(c)
Weighted average yield:
	Loans and mortgage-backed securities		5.37	%		5.45	%		5.53	%		5.65	%		5.77	%		5.83	%		5.88	%		5.95	%		6.00	%		6.00	%		5.99	%		6.01	%		6.11	%
	Trading and investment securities(a)		3.12			3.11			3.38			3.63			3.35			3.51			4.28			3.57			3.05			3.96			4.15			4.00			4.68
		Interest-earning assets yield	5.24			5.37			5.46			5.56			5.64			5.72			5.82			5.87			5.90			5.93			5.93			5.93			6.07
Weighted average cost:
	Deposits		1.85			1.95			2.01			2.06			2.23			2.31			2.34			2.49			2.55			2.64			2.72			2.77			2.78
	Federal Home Loan Bank advances and
		other borrowings	4.19			4.54			4.50			4.04			3.83			3.88			4.36			4.25			3.76			4.34			4.25			4.32			4.43
	Capital securities		10.00			10.00			10.00			10.00			10.00			10.00			10.00			10.00			10.00			10.00			10.00			10.00			10.00
		Combined funds cost	2.25			2.36			2.42			2.44			2.56			2.63			2.68			2.81			2.84			2.95			3.01			3.07			3.09
Interest rate spread			2.99	%		3.01	%		3.04	%		3.12	%		3.08	%		3.09	%		3.14	%		3.06	%		3.06	%		2.98	%		2.92	%		2.86	%		2.98	%

(a)  Includes Federal Home Loan Bank stock, at cost.
(b)  Excludes loans sold or securitized prior to 1996 and loans temporarily sub-serviced without capitalized mortgage servicing rights.
(c)  Reflects month end contractual yields and costs and excludes adjustments for non-accrual loans, net deferred costs to originate loans and amortizations of premiums and discounts.