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 – May 17, 2004 – Downey Financial Corp. (NYSE: DSL) today released monthly selected financial data for the thirteen months ended April 30, 2004.

          Downey Financial Corp. is the parent company of Downey Savings and Loan Association, F.A., with assets of $13.3 billion and 167 branches throughout California and three in Arizona.

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DOWNEY FINANCIAL CORP. AND SUBSIDIARIES
Monthly Selected Financial Data (Unaudited)

			Apr. 30,			Mar. 31,			Feb. 29,			Jan. 31,			Dec. 31,			Nov. 30,			Oct. 31,			Sep. 30,			Aug. 31,			Jul. 31,			Jun. 30,			May 31,			Apr. 30,
(Dollars in Thousands)			2004			2004			2004			2004			2003			2003			2003			2003			2003			2003			2003			2003			2003
Balance sheet summary
Total assets			$13,268,241			$13,525,129			$12,028,524			$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
Loans receivable held for investment			11,501,984			11,064,686			10,609,898			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
Loans held for sale, at lower of cost or fair value			473,621			529,085			350,909			196,231			279,657			316,517			374,732			335,437			467,857			732,849			721,929			771,876			777,408
Mortgage-backed securities available for sale,
	at fair value		325			327			329			331			334			1,264			1,538			1,590			1,608			1,667			1,736			1,757			1,787
Cash and investment securities(a)			968,300			1,114,585			751,800			856,312			926,603			953,209			965,156			874,714			1,049,918			565,506			689,269			588,861			508,191
Trading securities			-			-			-			-			-			-			-			-			-			-			201,781			229,824			-
Deposits			8,925,205			8,817,173			8,574,472			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
Federal Home Loan Bank advances and
	other borrowings		3,088,420			2,935,401			2,231,099			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
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			0.35	%		0.40	%		0.48	%		0.42	%		0.42	%		0.49	%		0.50	%		0.56	%		0.53	%		0.54	%		0.56	%		0.60	%		0.64	%
Loan activity for the month ended
Loans for investment portfolio:
	Originations and purchases:
		Residential one-to-four units	$ 745,995			$ 738,829			$ 460,152			$ 531,489			$ 660,303			$ 382,889			$ 410,141			$ 357,156			$ 301,473			$ 294,831			$ 790,359			$ 226,406			$ 206,603
		Residential one-to-four units – subprime	63,754			72,110			46,609			53,826			62,773			31,879			26,467			19,268			17,386			19,743			17,813			21,536			24,627
		All other	53,236			51,896			28,401			45,094			59,420			34,692			51,063			25,913			31,212			45,493			28,887			19,144			30,376
	Repayments		(414,562		)	(396,939		)	(317,712		)	(349,642		)	(403,098		)	(336,092		)	(466,420		)	(497,794		)	(533,809		)	(494,960		)	(458,684		)	(440,605		)	( 453,032		)
Loans for sale:
	Originations and purchases		414,027			452,967			315,943			158,867			267,608			263,787			357,749			317,762			477,987			770,674			738,620			702,407			720,127
	Sales		(459,765		)	(274,641		)	(161,512		)	(242,593		)	(302,077		)	(322,390		)	(316,966		)	(465,291		)	(740,832		)	(731,763		)	(785,865		)	( 717,205		)	( 575,301		)
Mortgage loans serviced for others
Total			$9,141,600			$9,167,834			$9,276,207			$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
With capitalized mortgage servicing rights:
	Amount		9,096,452			9,126,444			9,226,052			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
	Weighted average interest rate		5.68	%		5.73	%		5.76	%		5.77	%		5.79	%		5.81	%		5.84	%		5.87	%		5.93	%		6.02	%		6.12	%		6.20	%		6.28	%
Interest rate spread data (b)
Weighted average yield:
	Loans and mortgage-backed securities		4.43	%		4.51	%		4.56	%		4.60	%		4.61	%		4.75	%		4.85	%		4.98	%		5.08	%		5.18	%		5.24	%		5.37	%		5.45	%
	Trading and investment securities(a)		3.64			3.50			3.20			3.19			3.19			3.14			3.04			2.90			2.52			2.58			2.72			3.12			3.11
		Interest-earning assets yield	4.38			4.43			4.49			4.50			4.51			4.63			4.71			4.84			4.87			5.08			5.08			5.24			5.37
Weighted average cost:
	Deposits		1.55			1.56			1.56			1.54			1.52			1.57			1.59			1.64			1.64			1.71			1.81			1.85			1.95
	Federal Home Loan Bank advances and
		other borrowings(c)	2.09			2.11			2.98			3.04			3.08			3.56			3.79			4.43			4.54			4.50			3.68			4.19			4.54
	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	1.77			1.78			1.94			1.94			1.94			2.01			2.03			2.09			2.08			2.14			2.20			2.26			2.36
Interest rate spread			2.61	%		2.65	%		2.55	%		2.56	%		2.57	%		2.62	%		2.68	%		2.75	%		2.79	%		2.94	%		2.88	%		2.98	%		3.01	%

(a)  Includes Federal Home Loan Bank stock, at cost.
(b)  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.
(c)  Starting in March 2004, the impact of interest rate swap contracts was included, with notional amounts totaling $430 million of receive-fixed, pay-3-month Libor variable interest, which contracts serve as a permitted hedge against a portion of our FHLB advances.