Downey Financial 8-K Earnings Release and Table Listing

EXHIBIT 99.1

Table of Contents

Earnings Release and Table Listing

• Earnings Release Narrative
• Consolidated Balance Sheets
• Consolidated Statements of Income
• Selected Financial Data
  • Net income by business segment
  • Selected financial ratios
  • Asset activity
  • Capital ratios (Bank only)
  • Book value per share
  • Number of branches including in-store locations
  • Average balance sheet data
  • Loan and deposit related fees
  • Net gains (losses) on sales of loans and mortgage-backed securities
  • Loan servicing income (loss), net
  • Mortgage servicing rights activity
  • Mortgage loans serviced for others
  • Loans held for investment
  • Loans held for sale, net
  • Delinquent loans
  • Non-performing assets

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 ANNOUNCES FIRST QUARTER EARNINGS

          Newport Beach, California - April 16, 2004 - Downey Financial Corp. (NYSE: DSL) reported that net income for the first quarter of 2004 totaled $8.9 million or $0.32 per share on a diluted basis, down from $30.2 million or $1.08 per share in the year-ago first quarter. No shares of common stock were repurchased during the current quarter, and $38 million of the previously announced $50 million authorization remains available for future share repurchases.

          The decline in net income between first quarters reflected:

• A $18.4 million decline from gains on sales of loans due primarily to a lower volume of fixed rate loans being originated and sold;
• A $11.5 million or 14.3% decline in net interest income, reflecting the decline in the effective interest rate spread that had already occurred prior to the current quarter;
• A $3.5 million increase in provision for loan losses due to growth during the quarter in the loan portfolio;
• A $3.1 million or 6.0% increase in general and administrative expense; and
• A $2.5 million decline in income from a litigation award received in the year-ago quarter.

The loss from loan servicing was $0.6 million greater than a year ago. However, that increased loss was more than offset by a $2.1 million gain in the current quarter from the sale of investment securities that were acquired as a partial economic hedge against the value of mortgage servicing rights.

          Marangal I. Domingo, President and Chief Executive Officer, commented, "We expected net income this quarter to be below year-ago levels due to lower gains from sales of loans and net interest income. We did not expect, however, for long-term market interest rates to fall during the quarter, thereby impairing the value of our mortgage servicing rights and requiring us to add $12.9 million to the valuation allowance, which was only slightly higher than the year-ago level."

          Mr. Domingo continued by stating, "Despite our disappointing first quarter earnings, we were encouraged by several positive developments. First, our portfolio loan originations reached a record quarterly level resulting in almost $1 billion of balance sheet growth and, based upon our current pipeline, this growth should continue allowing us to deploy our capital profitably. Second, we entered into interest rate swap contracts during the latter part of the first quarter as a fair value hedge against certain existing fixed rate borrowings that mature in the fourth quarter of 2008. These swaps effectively convert the borrowings from fixed to adjustable rate and better match the adjustable rate loans now being funded with those borrowings. Assuming no change in the level of 3-month Libor, these swaps will reduce interest expense by approximately $9 million per year." The notional amount of the swaps is $430 million on which Downey receives a weighted average fixed rate of 3.23% and pays 3-month Libor.

Page 1

Hedging Stategy

          Finally, with respect to mortgage servicing rights, Mr. Domingo stated, "Just prior to the end of March, we established a partial economic hedge against future MSR value declines by purchasing approximately $500 million of securities classified as available for sale. Our hedging strategy is fairly

simple. During periods when long-term interest rates decline, the value of our MSRs will fall and the resultant MSR valuation addition will be partially offset by securities gains. However, if long-term interest rates rise causing MSR values to improve, the securities will be in a loss position and may be sold at a loss, with the intention to reset the hedge at a higher market interest rate. Any realized loss from the securities sales will be mitigated by the favorable earnings impact associated with the recapture of any existing MSR valuation allowance. While this strategy is not constructed to be a perfect hedge, it is expected to reduce earnings volatility from changing MSR values. The initial securities position we purchased was sold the last day of the quarter and on the same day, we reset the hedge amount for the second quarter."

Net Interest Income

          Net interest income totaled $69.4 million in the first quarter of 2004, down $11.5 million or 14.3% between first quarters. The decline reflected a lower effective interest rate spread, as interest-earning assets averaged $11.487 billion in the current quarter, up 1.7% from a year ago. The effective interest rate spread averaged 2.42% in the current quarter, down from 2.86% a year ago but up from 2.40% in the fourth quarter of 2003. The decline between first quarters was due to the yield on interest-earning assets declining more rapidly than the cost of funds. The more rapid decline in the yield on interest-earning assets primarily reflected a positive interest rate gap (i.e., more interest-earning assets reprice to market interest rates within one year than do interest-bearing liabilities). In addition, the decline in the effective interest rate spread also reflected a higher proportion of MTA ARMs that currently have lower fully-indexed yields than COFI ARMs and a lower percentage of higher yielding subprime loans.

Provision for Loan Losses

          During the current quarter, provision for loan losses totaled $1.8 million, compared to a $1.7 million reversal in the year-ago first quarter. The higher provision was due to growth in the loan portfolio, whereas the reversal a year ago reflected both a decline in the loan portfolio as well as an improvement in credit quality. The allowance for loan losses was $32 million at March 31, 2004, compared to $30 million at year-end 2003 and $33 million at March 31, 2003. Net charge-offs totaled $0.1 million in the first quarter of 2004, compared to $0.2 million in the year-ago quarter.

Other Income

          Other income totaled $3.0 million in the first quarter of 2004, down $19.1 million from a year ago. Contributing to the decline between first quarters was:

• A $18.4 million decrease in net gains from sales of loans and mortgage-backed securities. Net gains in the current quarter totaled $1.4 million, including a $3.3 million loss due to the SFAS 133 impact of valuing derivatives associated with the sale of loans. Excluding the impact of SFAS 133, a gain equal to 0.69% on secondary market sales of $679 million was realized, compared to the year-ago gain of 1.23% on secondary market sales of $1.624 billion.
• A $2.5 million decrease in income from a litigation award received in the year-ago quarter.

Page 2

• A $0.6 million increase in the loss from loan servicing activities. The current quarter loss from loan servicing totaled $14.2 million and included a $12.9 million addition to the valuation allowance for mortgage servicing rights, whereas the year-ago quarter included a provision of $11.4 million. At March 31, 2004, mortgage servicing rights, net of a $22 million valuation allowance, totaled $70 million or 0.76% of the $9.126 billion of associated loans serviced for others.

Those items were partially offset by a $2.1 million gain from the sale of securities purchased as a partial economic hedge against the valuation of mortgage servicing rights. In addition, loan and deposit related fees were $0.5 million higher, primarily reflecting higher fees from checking accounts and automated teller machines.

Operating Expense

          Operating expense totaled $55.0 million in the current quarter, up $2.7 million or 5.2% from the first quarter of 2003, due to higher general and administrative expense. The increase was primarily in salaries and related costs, up $1.4 million or 4.2%, and advertising expense, up $0.9 million.

Assets, Loan Originations and Deposits

          At March 31, 2004, assets totaled $13.5 billion, up $2.1 billion or 18.2% from a year ago and up $1.9 billion from December 31, 2003. During the past three months, portfolio originations exceeded loan payoffs, resulting in an increase of $948 million in loans held for investment. In addition, loans held for sale were $249 million higher, while securities available for sale increased $182 million. Included within securities available for sale at quarter end were $517 million associated with the previously mentioned partial economic hedge of mortgage servicing rights. Also, other assets were higher and included a receivable of $507 million related to securities sold the last day of the quarter, for which proceeds were received the next business day.

          Loan originations (including purchases) totaled $2.956 billion in the first quarter of 2004, up from $2.441 billion in the first quarter of 2003. Loans originated for sale declined $679 million to $928 million, while single family loans originated for portfolio increased by $1.120 billion to a quarterly record of $1.903 billion. Of the current quarter total originated for portfolio, $173 million represented subprime credits. At quarter end, the subprime portfolio totaled $1.022 billion, with an average loan-to-value ratio at origination of 73% and, of the total, 92% represented "Alt. A and A-" credits. In addition to single family loans, $125 million of other loans were originated in the quarter.

          Deposits totaled $8.8 billion at March 31, 2004, down 2.0% from the year-ago level but up $523 million or 6.3% since the end of 2003. During the quarter, one in-store branch was closed due to the sale of the grocery store in which it was located. The associated deposits have been temporarily transferred to another branch pending the opening of a replacement location expected in the second quarter. This brings the total number of branches to 171, of which 168 are in California and three are in Arizona. At quarter end, the average deposit size of our 72 traditional branches was $102 million, while the average deposit size of our 99 in-store branches was $15 million.

Non-Performing Assets

          Non-performing assets increased $5 million during the quarter to $54 million, or 0.40% of total assets, compared to 0.42% at year-end 2003. The increase during the quarter was primarily in prime residential loans.

Page 3

Regulatory Capital Ratios

          At March 31, 2004, Downey Financial Corp.’s primary subsidiary, Downey Savings and Loan Association, F.A., had core and tangible capital ratios of 6.90% and a risk-based capital ratio of 13.36%. These capital levels were well above the "well capitalized" standards of 5% and 10%, respectively, as defined by regulation.

          Certain statements in this release may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements do not relate strictly to historical information or current facts. Some forward-looking statements may be identified by use of terms such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Downey’s actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, economic conditions, competition in the geographic and business areas in which Downey conducts its operations, fluctuations in interest rates, credit quality and government regulation. Downey does not update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

          For further information contact: Thomas E. Prince, Executive Vice President and Chief Financial Officer at (949)509-4440.

Page 4

DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

		March 31,			December 31,			March 31,
(Dollars in Thousands, Except Per Share Data)		2004			2003			2003
Assets
Cash		$	115,905		$	111,667		$	136,461
Federal funds			2,300			1,500			1,201
	Cash and cash equivalents		118,205			113,167			137,662
U.S. Treasury securities, agency obligations and other investment
	securities available for sale, at fair value		872,103			690,347			214,516
Municipal securities held to maturity, at amortized cost (estimated
	fair value of $6,135 at March 31, 2003)		-			-			6,148
Loans held for sale, at lower of cost or fair value			529,085			279,657			633,676
Mortgage-backed securities available for sale, at fair value			327			334			1,875
Loans receivable held for investment			11,064,686			10,116,519			10,040,006
Investments in real estate and joint ventures			35,768			35,716			34,307
Real estate acquired in settlement of loans			5,189			5,803			10,205
Premises and equipment			108,372			110,316			114,201
Federal Home Loan Bank stock, at cost			124,277			123,089			119,125
Investment in Downey Financial Capital Trust I			3,711			3,711			3,711
Mortgage servicing rights, net			69,721			82,175			56,506
Other assets			593,685			85,146			69,712
		$	13,525,129		$	11,645,980		$	11,441,650
Liabilities and Stockholders’ Equity
Deposits		$	8,817,173		$	8,293,758		$	8,997,558
Securities sold under agreements to repurchase			507,027			-			-
Federal Home Loan Bank advances			2,424,230			2,125,150			1,300,850
Real estate notes			4,144			4,161			-
Junior subordinated debentures			123,711			123,711			123,711
Accounts payable and accrued liabilities			604,757			63,584			91,839
Deferred income taxes			119,530			118,598			76,042
	Total liabilities		12,600,572			10,728,962			10,590,000
Stockholders’ equity:
Preferred stock, par value of $0.01 per share; authorized 5,000,000 shares;
	outstanding none		-			-			-
Common stock, par value of $0.01 per share; authorized 50,000,000 shares;
	issued 28,235,022 shares at March 31, 2004, December 31, 2003 and
	March 31, 2003; outstanding 27,953,747 shares at March 31, 2004 and
	27,928,722 shares at both December 31, 2003 and March 31, 2003		282			282			282
Additional paid-in capital			93,792			93,792			93,792
Accumulated other comprehensive income (loss)			1,753			807			(579	)
Retained earnings			839,898			834,307			770,325
Treasury stock, at cost, 281,275 shares at March 31, 2004 and 306,300 shares
	at both December 31, 2003 and March 31, 2003		(11,168	)		(12,170	)		(12,170	)
	Total stockholders’ equity		924,557			917,018			851,650
		$	13,525,129		$	11,645,980		$	11,441,650

Page 5

DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended
		March 31,
(Dollars in Thousands, Except Per Share Data)		2004			2003
Interest income
Loans receivable		$	115,530		$	142,489
U.S. Treasury securities and agency obligations			4,064			3,137
Mortgage-backed securities			3			16
Other investments			1,198			1,655
	Total interest income		120,795			147,297
Interest expense
Deposits			32,600			47,850
Federal Home Loan Bank advances and other borrowings			15,705			15,417
Junior subordinated debentures			3,134			3,134
	Total interest expense		51,439			66,401
Net interest income			69,356			80,896
Provision for (reduction of) loan losses			1,804			(1,709	)
	Net interest income after provision for (reduction of) loan losses		67,552			82,605
Other income, net
Loan and deposit related fees			12,456			11,978
Real estate and joint ventures held for investment, net			926			943
Secondary marketing activities:
	Loan servicing loss, net		(14,245	)		(13,686	)
	Net gains on sales of loans and mortgage-backed securities		1,372			19,763
	Net gains on sales of mortgage servicing rights		-			5
Net gains on sales of investment securities			2,112			8
Litigation award			-			2,452
Other			332			579
	Total other income, net		2,953			22,042
Operating expense
Salaries and related costs			35,569			34,126
Premises and equipment costs			8,208			7,713
Advertising expense			1,708			793
SAIF insurance premiums and regulatory assessments			757			831
Professional fees			368			628
Other general and administrative expense			8,482			7,893
	Total general and administrative expense		55,092			51,984
Net operation of real estate acquired in settlement of loans			(72	)		297
	Total operating expense		55,020			52,281
Income before income taxes			15,485			52,366
Income taxes			6,573			22,149
	Net income	$	8,912		$	30,217
PER SHARE INFORMATION
Basic		$	0.32		$	1.08
Diluted		$	0.32		$	1.08
Cash dividends declared and paid		$	0.10		$	0.09
Weighted average diluted shares outstanding		27,980,542			27,966,367

Page 6

DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA

			Three Months Ended
			March 31,
(Dollars in Thousands)			2004			2003
Net income by business segment
Banking			$	8,387		$	29,505
Real estate investment				525			712
	Total net income		$	8,912		$	30,217
Selected financial ratios
Effective interest rate spread				2.42	%		2.86	%
Efficiency ratio(a)				77.18			52.23
Return on average assets				0.30			1.03
Return on average equity				3.88			14.41
Asset activity
Loans for investment portfolio: (b)
	Originations:
		Residential one-to-four units	$	1,730,470		$	706,260
		Residential one-to-four units — subprime		172,545			76,488
		All other		125,391			51,155
	Repayments			(1,064,293	)		(1,127,612	)
Loans originated for sale portfolio(b)				927,777			1,607,147
Loans and mortgage-backed securities sold				(678,746	)		(1,624,166	)
Increase (decrease) in loans (including mortgage-backed
	securities)			1,197,588			(301,385	)
Increase (decrease) in assets				1,879,149			(540,228	)
Increase (decrease) in deposits				523,415			(240,792	)
Increase (decrease) in borrowings				806,090			(323,234	)

	March 31,			December 31,			March 31,
	2004			2003			2003
Capital ratios (Bank only)
Tangible		6.90	%		7.96	%		7.26	%
Core		6.90			7.96			7.26
Risk-based		13.36			15.55			13.87
Book value per share	$	33.07		$	32.83		$	30.49
Number of branches including in-store locations		171			172			165

^(a) The amount of general and administrative expense incurred for each $1 of net interest income plus other income, except for income associated with real estate held for investment and litigation award.
^(b) Includes loans purchased.

Page 7

DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – (Continued)

			Three Months Ended
			March 31, 2004							December 31, 2003						March 31, 2003
							Average						Average						Average
			Average				Yield/			Average			Yield/			Average			Yield/
(Dollars in Thousands)			Balance			Interest	Rate			Balance		Interest	Rate			Balance		Interest	Rate
Average balance sheet data
Interest-earning assets:
	Loans		$	10,825,710	$	115,530	4.27	%	$	10,084,352	$	111,117	4.41	%	$	10,759,397	$	142,489	5.30	%
	Mortgage-backed securities			331		3	3.63			1,384		10	2.89			2,012		16	3.18
	Investment securities			660,750		5,262	3.20			803,792		6,053	2.99			537,386		4,792	3.62
		Total interest-earning assets		11,486,791		120,795	4.21			10,889,528		117,180	4.30			11,298,795		147,297	5.21
Non-interest-earning assets				406,088						396,662						407,422
	Total assets		$	11,892,879					$	11,286,190					$	11,706,217
Transaction accounts:
	Non-interest-bearing checking		$	445,618	$	-	-	%	$	441,624	$	-	-	%	$	384,088	$	-	-	%
	Interest-bearing checking(a)			519,572		459	0.36			464,583		290	0.25			425,810		299	0.28
	Money market			140,055		364	1.05			139,445		367	1.04			124,194		414	1.35
	Regular passbook			3,917,514		10,863	1.12			4,041,057		12,154	1.19			3,764,522		14,829	1.60
		Total transaction accounts		5,022,759		11,686	0.94			5,086,709		12,811	1.00			4,698,614		15,542	1.34
Certificates of deposit				3,460,434		20,914	2.43			3,347,441		20,785	2.46			4,276,882		32,308	3.06
	Total deposits			8,483,193		32,600	1.55			8,434,150		33,596	1.58			8,975,496		47,850	2.16
FHLB advances and other borrowings(b)				2,206,909		15,705	2.86			1,662,003		15,197	3.63			1,599,094		15,417	3.91
Junior subordinated debentures				123,711		3,134	10.13			123,711		3,134	10.13			123,711		3,134	10.13
	Total deposits and borrowings			10,813,813		51,439	1.91			10,219,864		51,927	2.02			10,698,301		66,401	2.52
Other liabilities				159,349						159,479						169,277
Stockholders’ equity				919,717						906,847						838,639
	Total liabilities and stockholders’ equity		$	11,892,879					$	11,286,190					$	11,706,217
Net interest income/interest rate spread					$	69,356	2.30	%			$	65,253	2.28	%			$	80,896	2.69	%
Excess of interest-earning assets over
	deposits and borrowings		$	672,978					$	669,664					$	600,494
Effective interest rate spread							2.42						2.40						2.86

^(a) Included amounts swept into money market deposit accounts.
^(b) Starting in the first quarter of 2004, the impact of swap contracts were included, with notional amounts totaling $430 million of receive-fixed, pay-3-month Libor variable interest, which serve as a permitted hedge against a portion of our FHLB advances.

Page 8

DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – (Continued)

			Three Months Ended
			March 31,			December 31,			March 31,
(Dollars in Thousands)			2004			2003			2003
Loan and deposit related fees
Loan related fees:
	Prepayment fees		$	3,799		$	4,320		$	3,413
	Other fees			2,000			2,117			2,574
Deposit related fees:
	Automated teller machine fees			2,243			2,187			2,086
	Other fees			4,414			4,420			3,905
		Total loan and deposit related fees	$	12,456		$	13,044		$	11,978
Net gains (losses) on sales of loans and mortgage-backed
	securities
Mortgage servicing rights			$	5,968		$	9,091		$	14,954
All other components excluding SFAS 133				(1,314	)		(4,553	)		4,948
SFAS 133				(3,282	)		1,016			(139	)
	Total net gains on sales of loans and
		mortgage-backed securities	$	1,372		$	5,554		$	19,763
Secondary marketing gain excluding SFAS 133 as
	percent of associated sales			0.69	%		0.48	%		1.23	%
Loan servicing income (loss), net
Net cash servicing fees			$	5,704		$	5,681		$	5,016
Payoff and curtailment interest cost(a)				(1,527	)		(1,597	)		(2,525	)
Amortization of MSRs				(5,519	)		(5,001	)		(4,771	)
(Provision for) reduction of impairment of MSR’s				(12,903	)		7,685			(11,406	)
	Total loan servicing income (loss), net		$	(14,245	)	$	6,768		$	(13,686	)
Mortgage servicing rights activity
Gross balance at beginning of period			$	95,183		$	92,665		$	90,584
Additions				5,968			9,091			14,954
Amortization				(5,519	)		(5,001	)		(4,771	)
Sales				-			-			-
Impairment write-down				(3,866	)		(1,572	)		(8,589	)
	Gross balance at end of period			91,766			95,183			92,178
Allowance balance at beginning of period				13,008			22,265			32,855
Provision for (reduction of) impairment				12,903			(7,685	)		11,406
Impairment write-down				(3,866	)		(1,572	)		(8,589	)
	Allowance balance at end of period			22,045			13,008			35,672
		Total mortgage servicing rights, net	$	69,721		$	82,175		$	56,506
As a percentage of associated mortgage loans				0.76	%		0.89	%		0.67	%
Estimated fair value(b)			$	69,721		$	82,314		$	56,506
Weighted average expected life (in months)				49			59			39
Custodial account earnings rate				1.47	%		1.65	%		1.58	%
Weighted average discount rate				8.98			8.95			7.39

		March 31,			December 31,			March 31,
(Dollars in Thousands)		2004			2003			2003
Mortgage loans serviced for others
Total		$	9,167,834		$	9,313,948		$	8,535,480
With capitalized mortgage servicing rights: (b)
	Amount		9,126,444			9,268,308			8,460,152
	Weighted average interest rate		5.73	%		5.79	%		6.35	%
Custodial account balances		$	359,146		$	232,562		$	452,980

^(a) Represents contractual obligation to pay interest at the investor’s rate from the date the loan is repaid until the funds are remitted to the investor. This does not include the benefit of the use of repaid loan funds to reduce borrowings and its associated interest expense, which is reported in net interest income.
^(b) The estimated fair value may exceed book value for certain asset strata and excluded loans sold or securitized prior to 1996 and loans temporarily sub-serviced without capitalized mortgage servicing rights.

Page 9

DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – (Continued)

			March 31,			December 31,			March 31,
(Dollars in Thousands)			2004			2003			2003
Loans held for investment
Loans secured by real estate:
	Residential one-to-four units		$	9,619,830		$	8,737,471		$	8,442,914
	Residential one-to-four units — subprime			1,022,072			988,039			1,300,418
		Total residential one-to-four units		10,641,902			9,725,510			9,743,332
	Residential five or more units			101,196			92,928			21,340
	Commercial real estate			42,314			49,286			58,143
	Construction			88,676			105,706			100,767
	Land			1,587			16,855			39,962
Non-mortgage:
	Commercial			5,150			4,975			14,922
	Automobile			2,816			3,823			9,165
	Other consumer			130,549			95,319			61,744
		Total loans held for investment		11,014,190			10,094,402			10,049,375
Increase (decrease) for:
	Undisbursed loan funds and net deferred costs and premiums			82,568			52,447			23,734
	Allowance for losses			(32,072	)		(30,330	)		(33,103	)
		Total loans held for investment, net	$	11,064,686		$	10,116,519		$	10,040,006
Loans held for sale, net
Residential one-to-four units			$	526,311		$	276,295		$	631,261
Other consumer				1,420			3,090			-
Capitalized basis adjustment(a)				1,354			272			2,415
	Total loans held for sale		$	529,085		$	279,657		$	633,676
Delinquent loans
30-59 days			$	16,750		$	21,660		$	26,700
60-89 days				8,683			10,071			14,807
90+ days(b)				34,790			29,887			44,233
	Total delinquent loans		$	60,223		$	61,618		$	85,740
Delinquencies as a percentage of total loans				0.52	%		0.59	%		0.80	%
Non-performing assets
Non-accrual loans:
	Residential one-to-four units		$	31,037		$	26,325		$	34,426
	Residential one-to-four units — subprime			16,846			15,980			30,086
	Other			516			523			683
		Total non-accrual loans		48,399			42,828			65,195
Real estate acquired in settlement of loans				5,189			5,803			10,205
Repossessed automobiles				7			-			-
	Total non-performing assets		$	53,595		$	48,631		$	75,400
Non-performing assets as a percentage of total assets				0.40	%		0.42	%		0.66	%

^(a) Reflects the change in fair value of the rate lock derivative from the date of commitment to the date of funding.
^(b) All 90 day or greater delinquencies are on non-accrual status and reported as part of non-performing assets.

Note: Certain prior period amounts have been reclassified to conform to the current presentation.

Page 10