Downey Financial 8-K Regulation FD Disclosure

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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 Operating Officer and Chief Financial Officer (949)509-4440

DOWNEY FINANCIAL CORP. ANNOUNCES THIRTEEN
MONTH SELECTED FINANCIAL DATA

        Newport Beach, California – November 16, 2004 – Downey Financial Corp. (NYSE: DSL) today released monthly selected financial data for the thirteen months ended October 31, 2004.

        During October, the following two transactions occurred (both of which we previously disclosed):

1. We transferred approximately $1 billion of adjustable rate residential one-to-four unit loans from loans held for investment to loans held for sale, to reflect our agreement to sell these loans in November on a servicing released basis. These loans are seasoned and tied to the 12-month moving average of annual yields on actively traded U.S. Treasury securities adjusted to a constant maturity of one year (“MTA”) that we expect to replace with higher yielding adjustable rate product. While this sale may temporarily result in assets growing more slowly than the growth in our retained earnings, we expect to achieve asset growth more in line with the growth of our retained earnings, to include the replacement of the MTA loans being sold, before the end of the first quarter of 2005. Initially, the sale will reduce our net interest income until the loans are replaced. However, we expect a breakeven point for the lost net interest income to occur within approximately six months after the sale date, when considering the expected 2004 fourth quarter gain from this sale. After that, overall profits should be enhanced from the higher yielding loans.
2. The decline in the category of cash, investment securities and FHLB stock was primarily due to our sale of $248 million of securities purchased as a partial economic hedge of our mortgage servicing rights. During October, we entered into a definitive agreement to sell in November approximately 80% of our mortgage servicing rights. Due to the reduced risk of earnings volatility from the sale of the mortgage servicing rights, we sold the partial economic hedge.

        Downey Financial Corp. is the parent company of Downey Savings and Loan Association, F.A., with assets of $15.9 billion and 167 branches throughout California and three in Arizona.

        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.

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

			Oct. 31,			Sep. 30,			Aug. 31,			Jul. 31,			Jun. 30,			May 31,			Apr. 30,			Mar. 31,			Feb. 29,			Jan. 31,			Dec. 31,			Nov. 30,			Oct. 31,
(Dollars in Thousands)			2004			2004			2004			2004			2004			2004			2004			2004			2004			2004			2003			2003			2003
Balance sheet summary
Total assets			$15,875,054			$15,639,464			$15,230,593			$14,722,398			$14,222,347			$13,469,747			$13,279,872			$13,525,129			$12,028,524			$11,760,289			$11,645,980			$11,348,579			$11,302,269
Loans receivable held for investment			12,661,820			13,411,146			12,935,889			12,517,148			12,309,935			11,953,295			11,501,984			11,064,686			10,609,898			10,389,725			10,116,519			9,754,117			9,648,154
Loans held for sale, at lower of cost or fair value			1,977,140			845,913			859,695			893,939			661,481			268,018			473,621			529,085			350,909			196,231			279,657			316,517			374,732
MBS available for sale, at fair value			313			315			317			319			321			323			325			327			329			331			334			1,264			1,538
Cash, investment securities and FHLB stock			788,124			1,048,979			1,127,900			990,002			924,943			912,531			968,300			1,114,585			751,800			856,312			926,603			953,209			965,156
Deposits			9,684,261			9,551,333			9,453,724			9,265,419			8,948,238			8,873,389			8,925,205			8,817,173			8,574,472			8,378,974			8,293,758			8,388,866			8,514,067
FHLB advances and other borrowings			4,698,051			4,670,604			4,274,277			4,069,379			3,795,775			3,346,798			3,088,420			2,935,401			2,231,099			2,162,305			2,129,311			1,706,917			1,565,622
Senior notes			197,898			197,886			197,873			197,937			198,179			-			-			-			-			-			-			-			-
Junior subordinated debentures (a)			-			-			-			-			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			0.24	%		0.25	%		0.26	%		0.26	%		0.28	%		0.33	%		0.35	%		0.40	%		0.48	%		0.42	%		0.42	%		0.49	%		0.50	%
Loan activity for the month ended
Loans for investment portfolio:
	Originations and purchases:
		Residential one-to-four units	$ 488,268			$ 704,104			$ 649,596			$ 486,924			$ 668,376			$ 770,690			$ 745,995			$ 738,829			$ 460,152			$ 531,489			$ 660,303			$ 382,889			$ 410,141
		Residential one-to-four units – subprime	74,821			80,264			80,449			71,535			85,820			55,114			63,754			72,110			46,609			53,826			62,773			31,879			26,467
		All other	42,445			49,791			56,844			55,434			64,721			82,060			53,236			51,896			28,401			45,094			59,420			34,692			51,063
	Repayments		(372,449		)	(360,602		)	(359,596		)	(403,109		)	(456,983		)	(422,795		)	(414,562		)	(396,939		)	(317,712		)	(349,642		)	(403,098		)	(336,092		)	(466,420		)
Loans for sale:
	Originations and purchases		839,470			595,990			690,118			768,524			638,047			227,134			414,027			452,967			315,943			158,867			267,608			263,787			357,749
	Sales		(699,849		)	(607,335		)	(726,306		)	(537,585		)	(245,405		)	(433,859		)	(459,765		)	(274,641		)	(161,512		)	(242,593		)	(302,077		)	(322,390		)	(316,966		)
Mortgage loans serviced for others
Total			$11,038,703			$10,568,339			$10,169,574			$9,635,124			$9,279,359			$9,269,270			$9,141,600			$9,167,834			$9,276,207			$9,353,202			$9,313,948			$9,241,228			$9,132,863
With capitalized mortgage servicing rights:(b)
	Amount		9,924,548			10,075,028			10,130,863			9,595,335			9,242,641			9,225,547			9,096,452			9,126,444			9,226,052			9,302,028			9,268,308			9,193,686			9,080,795
	Weighted average interest rate		5.52	%		5.52	%		5.43	%		5.50	%		5.61	%		5.63	%		5.68	%		5.73	%		5.76	%		5.77	%		5.79	%		5.81	%		5.84	%
Interest rate spread data (c)
Weighted average yield:
	Loans and MBS		4.54	%		4.46	%		4.43	%		4.41	%		4.37	%		4.43	%		4.43	%		4.51	%		4.56	%		4.60	%		4.61	%		4.75	%		4.85	%
	Investment securities and FHLB stock		3.86			3.94			3.88			3.80			3.78			3.61			3.64			3.50			3.20			3.19			3.19			3.14			3.04
		Interest-earning assets yield	4.51			4.43			4.39			4.37			4.34			4.39			4.38			4.43			4.49			4.50			4.51			4.63			4.71
Weighted average cost:
	Deposits		1.81			1.80			1.77			1.72			1.65			1.57			1.55			1.56			1.56			1.54			1.52			1.57			1.59
	FHLB advances and other borrowings(d)		2.38			2.28			2.16			2.07			1.97			1.95			2.09			2.11			2.98			3.04			3.08			3.56			3.79
	Senior notes		6.50			6.50			6.50			6.50			6.50			-			-			-			-			-			-			-			-
	Junior subordinated debentures (a)		-			-			-			-			10.00			10.00			10.00			10.00			10.00			10.00			10.00			10.00			10.00
		Combined funds cost	2.06			2.02			1.96			1.89			1.90			1.76			1.77			1.78			1.94			1.94			1.94			2.01			2.03
Interest rate spread			2.45	%		2.41	%		2.43	%		2.48	%		2.44	%		2.63	%		2.61	%		2.65	%		2.55	%		2.56	%		2.57	%		2.62	%		2.68	%

(a)  On July 23, 2004, we redeemed the junior subordinated debentures before their maturity.
(b)  Excludes loans sold or securitized prior to 1996 and loans 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 the amortization of premiums and discounts.
(d)  Included since March 2004 is the impact of permitted interest rate swap hedges against a portion of our FHLB advances. The swap notional amounts total $430 million of receive-fixed, pay-3-month Libor variable interest.