EXHIBIT 99.1
DOWNEY FINANCIAL CORP. | ||
N E W S R E L E A S E | For further information contact: | |
DOWNEY FINANCIAL CORP. ANNOUNCES
THIRTEEN MONTH SELECTED FINANCIAL DATA
Newport Beach, California – February 18, 2004 – Downey Financial Corp. (NYSE: DSL) today released monthly selected financial data for the thirteen months ended January 31, 2004.
Downey Financial Capital Trust I ("Trust"), an entity established by Downey Financial Corp. for the purpose of issuing capital securities, was previously reported on a consolidated basis, with the capital securities issued by the Trust shown on the balance sheet consistent with generally accepted accounting principles. As of December 31, 2003, in accordance with Financial Accounting Standards Board Interpretation 46 (revised December 2003), the Trust is no longer reported on a consolidated basis. Therefore, the capital securities of $120 million no longer appear on the balance sheet. Instead, the junior subordinated debentures of $124 million payable by Downey Financial Corp. to the Trust and the investment in the Trust’s common stock of $4 million are separately reported. This change primarily impacted the balance sheet and had no effect on reported net income. Additionally, as permitted by generally accepted accounting principles, prior period data has been restated to conform to the new basis of presentation.
Downey Financial Corp. is the parent company of Downey Savings and Loan Association, F.A., with assets of $11.8 billion and 168 branches throughout California and three in Arizona.
DOWNEY FINANCIAL CORP. AND SUBSIDIARIES
Monthly Selected Financial Data (Unaudited)
Jan. 31, | Dec. 31, | Nov. 30, | Oct. 31, | Sep. 30, | Aug. 31, | Jul. 31, | Jun. 30, | May 31, | Apr. 30, | Mar. 31, | Feb. 28, | Jan. 31, | |||||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | 2004 | 2003 | 2003 | 2003 | 2003 | 2003 | 2003 | 2003 | 2003 | 2003 | 2003 | 2003 | 2003 | ||||||||||||||||||||||||||||||||||||
Balance sheet summary | |||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $11,760,289 | $11,645,980 | $11,348,579 | $11,302,269 | $11,163,094 | $11,576,943 | $11,587,830 | $11,951,277 | $11,540,611 | $11,422,949 | $11,441,650 | $11,589,251 | $11,924,570 | ||||||||||||||||||||||||||||||||||||
Loans receivable held for investment | 10,389,725 | 10,116,519 | 9,754,117 | 9,648,154 | 9,650,441 | 9,740,965 | 9,922,699 | 10,049,361 | 9,667,703 | 9,845,244 | 10,040,006 | 10,197,870 | 10,262,273 | ||||||||||||||||||||||||||||||||||||
Loans held for sale, at lower of cost or fair value | 196,231 | 279,657 | 316,517 | 374,732 | 335,437 | 467,857 | 732,849 | 721,929 | 771,876 | 777,408 | 633,676 | 477,196 | 614,497 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities available for sale, | |||||||||||||||||||||||||||||||||||||||||||||||||
at fair value | 331 | 334 | 1,264 | 1,538 | 1,590 | 1,608 | 1,667 | 1,736 | 1,757 | 1,787 | 1,875 | 1,936 | 2,008 | ||||||||||||||||||||||||||||||||||||
Cash and investment securities(a) | 856,312 | 926,603 | 953,209 | 965,156 | 874,714 | 1,049,918 | 565,506 | 689,269 | 588,861 | 508,191 | 477,451 | 612,344 | 744,105 | ||||||||||||||||||||||||||||||||||||
Trading securities | - | - | - | - | - | - | - | 201,781 | 229,824 | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Deposits | 8,378,974 | 8,293,758 | 8,388,866 | 8,514,067 | 8,608,068 | 8,948,050 | 9,074,889 | 8,895,452 | 8,996,356 | 8,988,854 | 8,997,558 | 8,900,813 | 9,131,221 | ||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances and | |||||||||||||||||||||||||||||||||||||||||||||||||
other borrowings | 2,162,305 | 2,129,311 | 1,706,917 | 1,565,622 | 1,263,328 | 1,227,034 | 1,238,568 | 1,675,971 | 1,375,977 | 1,262,850 | 1,300,850 | 1,524,550 | 1,649,050 | ||||||||||||||||||||||||||||||||||||
Junior subordinated debentures | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | 123,711 | ||||||||||||||||||||||||||||||||||||
Non-performing assets as a % of total assets | 0.42 | % | 0.42 | % | 0.49 | % | 0.50 | % | 0.56 | % | 0.53 | % | 0.54 | % | 0.56 | % | 0.60 | % | 0.64 | % | 0.66 | % | 0.72 | % | 0.71 | % | |||||||||||||||||||||||
Loan activity for the month ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans for investment portfolio: | |||||||||||||||||||||||||||||||||||||||||||||||||
Originations and purchases: | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential one-to-four units | $ 531,489 | $ 660,303 | $ 382,889 | $ 410,141 | $ 357,156 | $ 301,473 | $ 294,831 | $ 790,359 | $ 226,406 | $ 206,603 | $ 213,936 | $ 238,381 | $ 253,943 | ||||||||||||||||||||||||||||||||||||
Residential one-to-four units – subprime | 53,826 | 62,773 | 31,879 | 26,467 | 19,268 | 17,386 | 19,743 | 17,813 | 21,536 | 24,627 | 16,992 | 30,867 | 28,629 | ||||||||||||||||||||||||||||||||||||
All other | 45,094 | 59,420 | 34,692 | 51,063 | 25,913 | 31,212 | 45,493 | 28,887 | 19,144 | 30,376 | 21,340 | 12,492 | 17,323 | ||||||||||||||||||||||||||||||||||||
Repayments | (349,642 | ) | (403,098 | ) | (336,092 | ) | (466,420 | ) | (497,794 | ) | (533,809 | ) | (494,960 | ) | (458,684 | ) | (440,605 | ) | ( 453,032 | ) | ( 420,438 | ) | ( 346,609 | ) | ( 360,565 | ) | |||||||||||||||||||||||
Loans for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||
Originations and purchases | 158,867 | 267,608 | 263,787 | 357,749 | 317,762 | 477,987 | 770,674 | 738,620 | 702,407 | 720,127 | 590,803 | 450,124 | 566,220 | ||||||||||||||||||||||||||||||||||||
Sales | (242,593 | ) | (302,077 | ) | (322,390 | ) | (316,966 | ) | (465,291 | ) | (740,832 | ) | (731,763 | ) | (785,865 | ) | ( 717,205 | ) | ( 575,301 | ) | ( 432,705 | ) | ( 587,886 | ) | ( 603,575 | ) | |||||||||||||||||||||||
Mortgage loans serviced for others | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $9,353,202 | $9,313,948 | $9,241,228 | $9,132,863 | $9,125,469 | $9,010,114 | $8,894,054 | $8,980,037 | $8,745,281 | $8,544,614 | $8,535,480 | $8,568,387 | $8,368,485 | ||||||||||||||||||||||||||||||||||||
With capitalized mortgage servicing rights: | |||||||||||||||||||||||||||||||||||||||||||||||||
Amount | 9,302,028 | 9,268,308 | 9,193,686 | 9,080,795 | 9,068,209 | 8,949,903 | 8,835,062 | 8,916,259 | 8,677,682 | 8,472,550 | 8,460,152 | 8,490,821 | 8,257,320 | ||||||||||||||||||||||||||||||||||||
Weighted average interest rate | 5.77 | % | 5.79 | % | 5.81 | % | 5.84 | % | 5.87 | % | 5.93 | % | 6.02 | % | 6.12 | % | 6.20 | % | 6.28 | % | 6.35 | % | 6.40 | % | 6.45 | % | |||||||||||||||||||||||
Interest rate spread data (b) | |||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average yield: | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans and mortgage-backed securities | 4.60 | % | 4.61 | % | 4.75 | % | 4.85 | % | 4.98 | % | 5.08 | % | 5.18 | % | 5.24 | % | 5.37 | % | 5.45 | % | 5.53 | % | 5.65 | % | 5.77 | % | |||||||||||||||||||||||
Trading and investment securities(a) | 3.19 | 3.19 | 3.14 | 3.04 | 2.90 | 2.52 | 2.58 | 2.72 | 3.12 | 3.11 | 3.38 | 3.63 | 3.35 | ||||||||||||||||||||||||||||||||||||
Interest-earning assets yield | 4.50 | 4.51 | 4.63 | 4.71 | 4.84 | 4.87 | 5.08 | 5.08 | 5.24 | 5.37 | 5.46 | 5.56 | 5.64 | ||||||||||||||||||||||||||||||||||||
Weighted average cost: | |||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | 1.54 | 1.52 | 1.57 | 1.59 | 1.64 | 1.64 | 1.71 | 1.81 | 1.85 | 1.95 | 2.01 | 2.06 | 2.23 | ||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances and | |||||||||||||||||||||||||||||||||||||||||||||||||
other borrowings | 3.04 | 3.08 | 3.56 | 3.79 | 4.43 | 4.54 | 4.50 | 3.68 | 4.19 | 4.54 | 4.50 | 4.04 | 3.83 | ||||||||||||||||||||||||||||||||||||
Junior subordinated debentures | 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 | 1.94 | 1.94 | 2.01 | 2.03 | 2.09 | 2.08 | 2.14 | 2.20 | 2.26 | 2.36 | 2.42 | 2.44 | 2.56 | ||||||||||||||||||||||||||||||||||||
Interest rate spread | 2.56 | % | 2.57 | % | 2.62 | % | 2.68 | % | 2.75 | % | 2.79 | % | 2.94 | % | 2.88 | % | 2.98 | % | 3.01 | % | 3.04 | % | 3.12 | % | 3.08 | % | |||||||||||||||||||||||
