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 and liability 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
  • Loan servicing income (loss), net
  • Net gains (losses) on sales of loans and mortgage-backed securities
  • Mortgage servicing rights activity
  • Mortgage loans serviced for others
  • Loans held for investment
  • Loans held for sale
  • Non-performing assets
  • Delinquent loans

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 ANNOUNCES RECORD QUARTERLY EARNINGS

          Newport Beach, California - July 19, 2005 - Downey Financial Corp. (NYSE: DSL) reported that net income for the second quarter of 2005 totaled a record $64.1 million or $2.29 per share on a diluted basis, up from $27.8 million or $0.99 per share in the year-ago second quarter.

          The increase in net income between second quarters reflected:

• A $33.2 million increase in net gains on sales of loans and mortgage-backed securities due to a higher volume and gain per dollar of loan sold;
• A $21.3 million favorable change associated with securities gains/losses, as the year-ago quarter included a loss associated with a partial economic hedge against value changes in mortgage servicing rights;
• A $17.4 million or 22.6% increase in net interest income reflecting a higher level of interest-earning assets; and
• A $11.2 million increase in loan and deposit related fees primarily reflecting higher loan prepayment fees.

Those favorable items were partially offset by:

• A $16.3 million unfavorable change in loan servicing activities, as the year-ago quarter included a $14.3 million recapture from the valuation allowance for mortgage servicing rights compared to a $2.6 million provision in the current quarter; and
• A $5.3 million decline in income from real estate held for investment due primarily to lower gains from sales.

          For the first six months of 2005, net income totaled $115.8 million or $4.15 per share on a diluted basis, more than triple the $36.7 million or $1.31 for the first six months of 2004.

          Daniel D. Rosenthal, President and Chief Executive Officer, commented, "We are very pleased with our results so far this year. Our earnings, compared to a year ago, continue to benefit from strong secondary marketing activities, growth in net interest income and improved operating efficiency. Our improved gains on sales of loans reflected a strong appetite in the secondary markets for adjustable rate mortgages, which we sold at healthy spreads."

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Net Interest Income

          Net interest income totaled $94.0 million in the second quarter of 2005, up $17.4 million or 22.6% from a year ago. The increase primarily reflected an increase of 27.6% in average interest-earning assets to $16.540 billion in the current quarter. The effective interest rate spread averaged 2.27% in the current quarter, down from 2.36% a year ago and 2.38% in the first quarter of 2005. The decline in the effective interest rate spread was due to a higher level of deferred loan origination costs being written-off in the current quarter related to loan repayments. Those write-offs were, in part, offset by higher loan prepayment fees recognized in other income.

          For the first six months of 2005, net interest income totaled $188.1 million, up $42.1 million from a year ago.

Provision for Loan Losses

          During the current quarter, provision for loan losses totaled $0.6 million, down $0.9 million from the year-ago second quarter. At quarter end, the allowance for loan losses was $36 million, compared to $35 million at year-end 2004 and $33 million at June 30, 2004. Net charge-offs totaled $0.9 million in the current quarter, compared to $0.1 million a year ago.

          For the first six months of 2005, provision for loan losses totaled $2.6 million and net charge-offs were $1.0 million. That compares to a $3.3 million provision for loan losses and net charge-offs of $0.1 million in the year-ago period.

Other Income

          Other income totaled $75.8 million in the second quarter of 2005, up $45.6 million from a year ago. Contributing to the increase between second quarters was:

• A $33.2 million increase in net gains from sales of loans and mortgage-backed securities. Net gains in the current quarter totaled $48.8 million, including a $1.3 million gain 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 1.54% on secondary market sales of $3.093 billion was realized, compared to the year-ago gain of 1.08% on secondary market sales of $1.139 billion.
• A $21.3 million favorable change in securities gains/losses, as the year-ago quarter included losses from the sale of investment securities that were acquired as a partial economic hedge against the value of mortgage servicing rights.
• A $11.2 million increase in loan and deposit related fees due primarily to an increase of $10.7 million in loan prepayment fees. Deposit related fees were up $0.7 million or 10.2%.

Those favorable items were partially offset by:

• A $16.3 million unfavorable change in loan servicing activities. A loss of $2.5 million was recognized in the current quarter, compared to income of $13.8 million a year ago. The current quarter result included a $2.6 million provision to the valuation allowance for mortgage servicing rights, whereas the year-ago quarter included a recapture of $14.3 million. At June 30, 2005, mortgage servicing rights, net of a $4 million valuation allowance, totaled $17 million or 0.75% of the $2.249 billion of associated loans serviced for others (this excludes the $8.014 billion of loans sub-serviced for others on a fixed fee basis per loan).

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• A $5.3 million decline in income from real estate held for investment due primarily to lower gains from sales. The current quarter included gains of $1.1 million, compared to $6.2 million a year ago.

          For the first six months of 2005, other income totaled $131.5 million, up $98.4 million from the same period a year ago.

Operating Expense

          Operating expense totaled $58.3 million in the current quarter, up $1.0 million from a year ago due to a 1.5% increase in general and administrative expense. The increase was primarily in salaries and related costs, up $1.5 million or 3.9%.

          For the first six months of 2005, operating expense totaled $116.5 million, up $4.3 million from the same period a year ago.

Assets, Loan Originations and Deposits

          At June 30, 2005, assets totaled $16.612 billion, up 16.8% from a year ago and up $963 million or 6.2% from year-end 2004. During the current quarter, assets declined $281 million due primarily to a $341 million decline in loans held for sale.

          Loan originations (including purchases) totaled $4.133 billion in the current quarter, up 6.8% from $3.869 billion a year ago. Loans originated for sale increased $1.487 billion to $2.766 billion, while single family loans originated for portfolio declined by $1.117 billion to $1.272 billion. Of the current quarter total originated for portfolio, $133 million represented subprime credits. At quarter end, the subprime portfolio totaled $1.3 billion, with an average loan-to-value ratio at origination of 71% and, of the total, 96% represented "Alt. A and A-" credits. In addition to single family loans, $94 million of other loans were originated in the current quarter.

          Deposits totaled $11.042 billion at quarter end, up 23.4% from the year-ago level and $1.384 billion or 14.3% since the end of 2004. During the quarter, three new traditional branches were opened. This brings the total number of branches to 172 (168 in California and four in Arizona). At quarter end, the average deposit size of our 80 traditional branches was $110 million, while the average deposit size of our 92 in-store branches was $24 million. Since the end of 2004, borrowings have declined by $557 million, as deposit growth exceeded the growth in assets.

Non-Performing Assets

          Non-performing assets declined $4 million during the quarter to $25 million or 0.15% of total assets, compared to 0.22% at year-end 2004.

Regulatory Capital Ratios

          At June 30, 2005, Downey Financial Corp.’s primary subsidiary, Downey Savings and Loan Association, F.A., had core and tangible capital ratios of 7.31% and a risk-based capital ratio of 14.11%. These capital levels were well above the "well capitalized" standards of 5% and 10%, respectively, as defined by regulation.

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          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, Chief Operating Officer and Chief Financial Officer at (949)509-4440.

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DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

		June 30,			December 31,			June 30,
(Dollars in Thousands, Except Per Share Data)		2005			2004			2004
Assets
Cash		$	128,670		$	119,502		$	126,361
Federal funds			30,001			-			-
	Cash and cash equivalents		158,671			119,502			126,361
U.S. Treasury securities, agency obligations and other investment
	securities available for sale, at fair value		504,965			497,009			630,785
Loans held for sale, at lower of cost or fair value			914,277			1,118,475			661,481
Mortgage-backed securities available for sale, at fair value			292			304			321
Loans receivable held for investment, net			14,492,386			13,423,999			12,309,935
Investments in real estate and joint ventures			58,941			55,411			31,517
Real estate acquired in settlement of loans			2,201			2,555			2,424
Premises and equipment			105,230			106,238			107,277
Federal Home Loan Bank stock, at cost			265,849			243,613			167,797
Investment in Downey Financial Capital Trust I			-			-			3,711
Mortgage servicing rights, net			16,833			17,964			92,049
Other assets			92,482			63,738			88,689
		$	16,612,127		$	15,648,808		$	14,222,347
Liabilities and Stockholders’ Equity
Deposits		$	11,042,072		$	9,657,978		$	8,948,238
Securities sold under agreements to repurchase			-			-			239,688
Federal Home Loan Bank advances			4,002,757			4,559,622			3,556,087
Senior notes			198,004			197,924			198,179
Junior subordinated debentures			-			-			123,711
Accounts payable and accrued liabilities			126,521			108,217			88,608
Deferred income taxes			126,628			117,416			125,384
	Total liabilities		15,495,982			14,641,157			13,279,895
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 June 30, 2005, December 31, 2004 and
	June 30, 2004; outstanding 27,853,783 shares at both June 30, 2005 and
	December 31, 2004 and 27,968,283 shares at June 30, 2004		282			282			282
Additional paid-in capital			93,792			93,792			93,792
Accumulated other comprehensive income (loss)			(1,427	)		318			(5,745	)
Retained earnings			1,040,290			930,051			864,704
Treasury stock, at cost, 381,239 shares at both June 30, 2005 and
	December 31, 2004 and 266,739 shares at June 30, 2004		(16,792	)		(16,792	)		(10,581	)
	Total stockholders’ equity		1,116,145			1,007,651			942,452
		$	16,612,127		$	15,648,808		$	14,222,347

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DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

		Three Months Ended						Six Months Ended
		June 30,						June 30,
(Dollars in Thousands, Except Per Share Data)		2005			2004			2005			2004
Interest income
Loans receivable		$	189,641		$	123,313		$	362,648		$	238,843
U.S. Treasury securities and agency obligations			5,029			6,332			9,867			10,396
Mortgage-backed securities			3			3			6			6
Other investments			3,120			1,594			5,658			2,792
	Total interest income		197,793			131,242			378,179			252,037
Interest expense
Deposits			60,962			34,662			109,985			67,262
Federal Home Loan Bank advances and other borrowings			39,572			16,543			73,552			32,248
Senior notes			3,296			292			6,591			292
Junior subordinated debentures			-			3,134			-			6,268
	Total interest expense		103,830			54,631			190,128			106,070
Net interest income			93,963			76,611			188,051			145,967
Provision for loan losses			583			1,458			2,621			3,262
	Net interest income after provision for loan losses		93,380			75,153			185,430			142,705
Other income, net
Loan and deposit related fees			25,645			14,419			45,152			26,875
Real estate and joint ventures held for investment, net			1,728			7,048			4,308			7,974
Secondary marketing activities:
	Loan servicing income (loss), net		(2,529	)		13,786			(1,045	)		(459	)
	Net gains on sales of loans and mortgage-backed securities		48,848			15,675			79,463			17,047
	Net gains on sales of mortgage servicing rights		-			-			981			-
Net gains (losses) on sales of investment securities			1			(21,271	)		28			(19,159	)
Litigation award			1,767			-			1,767			-
Other			339			523			859			855
	Total other income, net		75,799			30,180			131,513			33,133
Operating expense
Salaries and related costs			39,042			37,575			78,197			73,144
Premises and equipment costs			7,891			8,200			15,891			16,408
Advertising expense			1,551			1,165			2,901			2,873
SAIF insurance premiums and regulatory assessments			927			744			1,854			1,501
Professional fees			345			356			681			724
Other general and administrative expense			8,605			9,432			16,997			17,914
	Total general and administrative expense		58,361			57,472			116,521			112,564
Net operation of real estate acquired in settlement of loans			(79	)		(237	)		(15	)		(309	)
	Total operating expense		58,282			57,235			116,506			112,255
Income before income taxes			110,897			48,098			200,437			63,583
Income taxes			46,827			20,277			84,628			26,850
	Net income	$	64,070		$	27,821		$	115,809		$	36,733
PER SHARE INFORMATION
Basic		$	2.30		$	0.99		$	4.16		$	1.31
Diluted		$	2.29		$	0.99		$	4.15		$	1.31
Cash dividends declared and paid		$	0.10		$	0.10		$	0.20		$	0.20
Weighted average diluted shares outstanding		27,884,276			27,990,588			27,883,058			27,985,565

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DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA

			Three Months Ended						Six Months Ended
			June 30,						June 30,
(Dollars in Thousands)			2005			2004			2005			2004
Net income by business segment
Banking			$	62,932		$	23,726		$	113,142		$	32,113
Real estate investment				1,138			4,095			2,667			4,620
	Total net income		$	64,070		$	27,821		$	115,809		$	36,733
Selected financial ratios
Effective interest rate spread				2.27	%		2.36	%		2.32	%		2.39	%
Efficiency ratio(a)				35.10			57.62			37.17			65.78
Return on average assets				1.51			0.83			1.40			0.58
Return on average equity				23.62			11.95			21.90			7.94
Asset activity
Loans for investment portfolio:
	Originations:(b)
		Residential one-to-four units	$	1,139,743		$	2,185,061		$	2,882,750		$	3,915,531
		Residential one-to-four units — subprime		132,636			204,688			305,960			377,233
		All other		94,100			200,017			246,184			325,408
	Repayments			(1,385,603	)		(1,294,340	)		(2,429,252	)		(2,358,633	)
Loans originated for sale portfolio(b)				2,766,047			1,279,208			4,947,439			2,206,985
Loans and mortgage-backed securities sold				(3,092,773	)		(1,139,029	)		(5,122,560	)		(1,817,775	)
Increase (decrease) in loans (including mortgage-backed
securities)				(321,553	)		1,377,639			864,177			2,575,227
Increase (decrease) in assets				(281,210	)		697,218			963,319			2,576,367
Increase in deposits				732,995			131,065			1,384,094			654,480
Increase (decrease) in borrowings				(1,091,077	)		1,058,553			(556,785	)		1,864,643

	June 30,			December 31,			June 30,
	2005			2004			2004
Capital ratios (Bank only)
Tangible and core		7.31	%		7.09	%		6.68	%
Risk-based		14.11			13.71			13.13
Book value per share	$	40.07		$	36.18		$	33.70
Number of branches including in-store locations		172			169			167

^(a) The amount of general and administrative expense expressed as a percentage of net interest income plus other income, excluding income associated with real estate held for investment and litigation award.
^(b) Includes loans purchased.

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DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – (Continued)

			Three Months Ended June 30,
			2005							2004
			Average				Average			Average			Average
(Dollars in Thousands)			Balance			Interest	Yield/Rate			Balance		Interest	Yield/Rate
Average balance sheet data
Interest-earning assets:
	Loans		$	15,761,341	$	189,641	4.81	%	$	12,120,003	$	123,313	4.07	%
	Mortgage-backed securities			294		3	4.08			325		3	3.69
	Investment securities(a)			778,672		8,149	4.20			842,703		7,926	3.78
		Total interest-earning assets		16,540,307		197,793	4.78			12,963,031		131,242	4.05
Non-interest-earning assets				412,604						415,503
	Total assets		$	16,952,911					$	13,378,534
Transaction accounts:
	Non-interest-bearing checking		$	699,998	$	-	-	%	$	496,445	$	-	-	%
	Interest-bearing checking(b)			537,003		480	0.36			550,258		536	0.39
	Money market			157,761		411	1.04			144,344		376	1.05
	Regular passbook			2,289,652		6,129	1.07			3,844,436		10,283	1.08
		Total transaction accounts		3,684,414		7,020	0.76			5,035,483		11,195	0.89
Certificates of deposit				6,921,807		53,942	3.13			3,851,486		23,467	2.45
	Total deposits			10,606,221		60,962	2.31			8,886,969		34,662	1.57
FHLB advances and other borrowings(c)				4,827,696		39,572	3.29			3,251,957		16,543	2.05
Senior notes and junior subordinated debentures(d)				197,988		3,296	6.66			141,419		3,426	9.69
	Total deposits and borrowings			15,631,905		103,830	2.66			12,280,345		54,631	1.79
Other liabilities				236,109						166,886
Stockholders’ equity				1,084,897						931,303
	Total liabilities and stockholders’ equity		$	16,952,911					$	13,378,534
Net interest income/interest rate spread					$	93,963	2.12	%			$	76,611	2.26	%
Excess of interest-earning assets over deposits and borrowings			$	908,402					$	682,686
Effective interest rate spread							2.27						2.36

			Six Months Ended June 30,
Interest-earning assets:
	Loans		$	15,421,287	$	362,648	4.70	%	$	11,472,856	$	238,843	4.16	%
	Mortgage-backed securities			298		6	4.03			328		6	3.66
	Investment securities(a)			759,588		15,525	4.12			751,726		13,188	3.53
		Total interest-earning assets		16,181,173		378,179	4.67			12,224,910		252,037	4.12
Non-interest-earning assets				398,562						410,796
	Total assets		$	16,579,735					$	12,635,706
Transaction accounts:
	Non-interest-bearing checking		$	656,971	$	-	-	%	$	471,031	$	-	-	%
	Interest-bearing checking(b)			534,710		956	0.36			534,915		996	0.37
	Money market			158,126		821	1.05			142,199		740	1.05
	Regular passbook			2,462,755		13,295	1.09			3,880,975		21,145	1.10
		Total transaction accounts		3,812,562		15,072	0.80			5,029,120		22,881	0.91
Certificates of deposit				6,469,258		94,913	2.96			3,655,960		44,381	2.44
	Total deposits			10,281,820		109,985	2.16			8,685,080		67,262	1.56
FHLB advances and other borrowings(c)				4,809,754		73,552	3.08			2,729,433		32,248	2.38
Senior notes and junior subordinated debentures(d)				197,969		6,591	6.66			132,565		6,560	9.90
	Total deposits and borrowings			15,289,543		190,128	2.51			11,547,078		106,070	1.85
Other liabilities				232,652						163,118
Stockholders’ equity				1,057,540						925,510
	Total liabilities and stockholders’ equity		$	16,579,735					$	12,635,706
Net interest income/interest rate spread					$	188,051	2.16	%			$	145,967	2.27	%
Excess of interest-earning assets over deposits and borrowings			$	891,630					$	677,832
Effective interest rate spread							2.32						2.39

^(a) Yields for securities available for sale are calculated using historical cost balances and do not give effect to changes in fair value that are reflected as a component of stockholders’ equity.
^(b) Included amounts swept into money market deposit accounts.
^(c) Starting in the first quarter of 2004, the impact of 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.
^(d) In June 2004, we issued $200 million of 6.5% 10-year senior notes. In July 2004, we redeemed our junior subordinated debentures before their maturity.

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DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – (Continued)

				Three Months Ended						Six Months Ended
				June 30,						June 30,
(Dollars in Thousands)				2005			2004			2005			2004
Loan and deposit related fees
Loan related fees:
	Prepayment fees			$	15,743		$	5,090		$	25,998		$	8,889
	Other fees				2,061			2,215			3,949			4,215
Deposit related fees:
	Automated teller machine fees				2,784			2,455			5,365			4,698
	Other fees				5,057			4,659			9,840			9,073
			Total loan and deposit related fees	$	25,645		$	14,419		$	45,152		$	26,875
Loan servicing income (loss), net
Net cash servicing fees				$	1,753		$	5,615		$	3,380		$	11,319
Payoff and curtailment interest cost(a)					(288	)		(2,083	)		(482	)		(3,610	)
Amortization of mortgage servicing rights					(1,398	)		(4,082	)		(2,558	)		(9,601	)
(Provision for) reduction of impairment of mortgage servicing rights					(2,596	)		14,336			(1,385	)		1,433
		Total loan servicing income (loss), net		$	(2,529	)	$	13,786		$	(1,045	)	$	(459	)
Net gains (losses) on sales of loans and mortgage-backed securities
Mortgage servicing rights				$	1,217		$	12,074		$	2,826		$	18,042
All other components excluding SFAS 133					46,373			249			72,466			(1,065	)
SFAS 133					1,258			3,352			4,171			70
	Total net gains on sales of loans and mortgage-backed securities			$	48,848		$	15,675		$	79,463		$	17,047
Secondary marketing gain excluding SFAS 133 as a
	percentage of associated sales				1.54	%		1.08	%		1.47	%		0.93	%
Mortgage servicing rights activity
Gross balance at beginning of period				$	20,834		$	91,766		$	20,502		$	95,183
Additions					1,217			12,074			2,826			18,042
Amortization					(1,398	)		(4,082	)		(2,558	)		(9,601	)
Sales					-			-			(14	)		-
Impairment write-down					(27	)		(3,945	)		(130	)		(7,811	)
	Gross balance at end of period				20,626			95,813			20,626			95,813
Allowance balance at beginning of period					1,224			22,045			2,538			13,008
Provision for (reduction of) impairment					2,596			(14,336	)		1,385			(1,433	)
Impairment write-down					(27	)		(3,945	)		(130	)		(7,811	)
	Allowance balance at end of period				3,793			3,764			3,793			3,764
			Total mortgage servicing rights, net	$	16,833		$	92,049		$	16,833		$	92,049
As a percentage of associated mortgage loans					0.75	%		1.00	%		0.75	%		1.00	%
Estimated fair value(b)				$	16,863		$	92,483		$	16,863		$	92,483
Weighted average expected life (in months)					40			67			40			67
Custodial account earnings rate					3.45	%		2.10	%		3.45	%		2.10	%
Weighted average discount rate					9.12			8.97			9.12			8.97

		June 30,			December 31,			June 30,
(Dollars in Thousands)		2005			2004			2004
Mortgage loans serviced for others
Total		$	10,287,991		$	6,672,984		$	9,279,359
With capitalized mortgage servicing rights: (b)
	Amount		2,249,030			2,100,452			9,242,641
	Weighted average interest rate		5.57	%		5.59	%		5.61	%
Total loans sub-serviced without mortgage servicing rights: (c)
	Term – less than six months	$	315,448		$	610,263		$	-
	Term – indefinite		7,698,176			3,931,483			-
Custodial account balances		$	237,722		$	143,765		$	238,914

^(a) Represents the difference between the contractual obligation to pay interest to the investor for an entire month and the actual interest received when a loan prepays prior to the end of the month. This does not include the benefit of the use of repaid loan funds to increase 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 sub-serviced without capitalized mortgage servicing rights.
^(c) Servicing is performed for a fixed fee per loan each month.

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DOWNEY FINANCIAL CORP. AND SUBSIDIARIES

SELECTED FINANCIAL DATA – (Continued)

			June 30,			December 31,			June 30,
(Dollars in Thousands)			2005			2004			2004
Loans held for investment
Loans secured by real estate:
	Residential one-to-four units		$	12,480,601		$	11,509,067		$	10,721,816
	Residential one-to-four units — subprime			1,261,674			1,254,452			1,076,523
		Total residential one-to-four units		13,742,275			12,763,519			11,798,339
	Residential five or more units			90,616			96,587			104,016
	Commercial real estate			29,249			32,678			42,540
	Construction			93,016			67,519			80,608
	Land			65,377			25,569			26,770
Non-mortgage:
	Commercial			4,496			4,997			5,083
	Automobile			320			858			1,911
	Other consumer			325,096			283,798			179,793
		Total loans held for investment		14,350,445			13,275,525			12,239,060
Increase (decrease) for:
	Undisbursed loan funds and net deferred costs and premiums			178,321			183,188			104,325
	Allowance for losses			(36,380	)		(34,714	)		(33,450	)
		Total loans held for investment, net	$	14,492,386		$	13,423,999		$	12,309,935
Loans held for sale
Residential one-to-four units			$	914,164		$	1,122,534		$	662,321
Other consumer				-			-			64
Capitalized basis adjustment(a)				113			(4,059	)		(904	)
	Total loans held for sale, net		$	914,277		$	1,118,475		$	661,481
Non-performing assets
Non-accrual loans:
	Residential one-to-four units		$	12,004		$	20,470		$	24,445
	Residential one-to-four units — subprime			10,599			10,696			12,615
	Other			456			468			475
		Total non-accrual loans		23,059			31,634			37,535
Real estate acquired in settlement of loans				2,201			2,555			2,424
Repossessed automobiles				-			-			9
	Total non-performing assets		$	25,260		$	34,189		$	39,968
Non-performing assets as a percentage of total assets				0.15	%		0.22	%		0.28	%
Delinquent loans
30-59 days			$	17,820		$	17,255		$	16,088
60-89 days				6,674			6,278			8,784
90+ days(b)				17,166			23,415			26,333
	Total delinquent loans		$	41,660		$	46,948		$	51,205
Delinquencies as a percentage of total loans				0.27	%		0.33	%		0.40	%

^(a) Reflected 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.

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