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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 21, 2003
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GOLDEN WEST FINANCIAL CORPORATION
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Commission file number 1-4629
Incorporated Pursuant to the Laws of Delaware State
IRS Employer Identification No. 95-2080059
1901 Harrison Street, Oakland, California 94612
(510) 446-3420
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Item 9. Regulation FD Disclosure.
The following information is furnished under Item 12 (Results of
Operations and Financial Condition).
Exhibit No. Exhibit
99.1 Third Quarter 2003 Earnings Press Release
99.2 September 2003 Thirteen Month Statistical Data Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GOLDEN WEST FINANCIAL CORPORATION
Dated: October 21, 2003 /s/ Russell W. Kettell
---------------------------------
Russell W. Kettell
President and
Chief Financial Officer
Exhibit 99.1
FOR FURTHER INFORMATION CONTACT FOR IMMEDIATE RELEASE
William C. Nunan, Group Senior Vice President
Telephone: (510) 446-3614
October 21, 2003
GOLDEN WEST FINANCIAL REPORTS RECORD EARNINGS
AND LOAN ORIGINATIONS
Oakland, California: Golden West Financial Corporation, parent of World Savings
Bank, posted record diluted earnings per share of $1.83 in the third quarter, up
17% from the $1.56 reported for the same period in 2002. For the first nine
months of 2003, per share profits reached $5.25, a 16% increase from the $4.52
registered in the first three quarters of 2002.
The Company also announced record loan originations of $10.1 billion in the
third quarter, a 50% jump from the $6.7 billion reported one year earlier. For
the first nine months of 2003, new mortgage volume totaled $25.1 billion, a 32%
increase from the $19.0 billion recorded in the first three quarters of 2002.
Adjustable rate loans comprised 93% of the new lending in the third quarter of
2003, and 92% of the volume for the first nine months.
Starting with a discussion of the reasons behind the Company's growth in
earnings, Herbert M. Sandler, Chairman of the Board and Chief Executive Officer,
said, "Our record 2003 mortgage volume led to 16% growth in the Company's loan
balances over the past twelve months. Having a larger mortgage portfolio, our
primary earning asset, increases net interest income, our principal revenue
source, because the more loans we have on the books, the
greater our capacity to generate profits."
Continuing his discussion of the factors influencing earnings, Sandler observed,
"Higher revenue from sources other than net interest income also played a part
in the earnings increase." Noninterest income totaled $91 million in the third
quarter of 2003, compared to $58 million one year earlier. "The biggest
contributor to the growth in noninterest income was an increase in gains on sale
of fixed-rate mortgages." Golden West sold $1.1 billion in loans during the
third quarter, compared with $330 million one year earlier.
Concluding his earnings related comments, Sandler stated, "Our general and
administrative expenses were 18% higher in the third quarter of 2003 than they
were in the same three months of 2002. A large portion of this increase in
spending was used to support the record loan volume we produced during this past
quarter. The higher costs also reflected our continued investment in people and
technology, so that we are prepared to capitalize on future growth
opportunities."
Turning to a review of lending activity, Sandler remarked, "Golden West's
primary product is an adjustable rate mortgage, or ARM. The popularity of this
loan is affected by what is happening with fixed-rate mortgages, which are the
borrowers' other alternative. In June, interest rates on fixed home loans dipped
below 5%. But by the end of July, the cost of these loans had spiked up to over
6%. Because interest on ARMs moves slowly, mortgage rates at Golden West were
low and stable. Small wonder that ARMs became increasingly attractive to
customers, and our loan volume reached all-time high levels." Sandler continued,
"The demand for ARMs waned a bit toward the end of the quarter, however, as
rates on fixed loans fell below 6% again."
Concluding his comments on mortgage activity, Sandler stated, "The record loan
volume we posted in the third quarter exceeded by far the payoffs and sales of
our mortgages. The net result was a significant increase in the size of our
mortgage portfolio." Golden West's adjustable rate mortgage balance grew $3.5
billion, or at a 21% annualized rate, in the third quarter of 2003, and
increased $7.8 billion, or at a 17% annualized rate, during the first nine
months of the year.
Moving to the topic of credit quality, Sandler pointed out, "Golden West's loan
program emphasizes originating high-quality mortgages to minimize credit risk.
We measure our performance by the ratio of nonperforming assets and troubled
debt restructured to total assets." At September 30, 2003, this ratio was a
nominal .56%, down from the low .65% ratio recorded one year earlier.
On the savings side of the business, Golden West posted retail deposit growth of
$1.8 billion in the third quarter of 2003, down from the record $2.5 billion
reported in the same period of 2002. But for the first nine months of 2003,
inflows amounted to $5.1 billion, a 19% increase from the $4.3 billion
experienced in the first three quarters of 2002.
Headquartered in Oakland, California, Golden West is one of the nation's largest
financial institutions with assets over $75 billion as of September 30, 2003.
Currently operating 475 savings and lending offices in 38 states under the World
name, the Company has one of the most extensive thrift branch systems in the
country. Golden West's stock is listed on the New York Stock and Pacific
Exchanges under the ticker symbol GDW. Options on the Company's stock are traded
on the Chicago Board Options Exchange and the Pacific Exchange.
Golden West investor information is available at www.gdw.com. Information about
the Company's home loans and savings and checking accounts can be found at
www.worldsavings.com and about its proprietary no-load mutual funds and
annuities at www.atlasfunds.com.
Information in this Press Release may contain various forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include projections, statements of the plans and
objectives of management for future operations, statements of future economic
performance, assumptions underlying these statements and other statements that
are not statements of historical facts. Forward-looking statements are subject
to significant business, economic and competitive risks, uncertainties and
contingencies, many of which are beyond Golden West's control. Should one or
more of these risks, uncertainties or contingencies materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those anticipated. Among the key risk factors that may have a direct bearing on
Golden West's results of operations and financial condition are competitive
practices in the financial services industries; operational and systems risks;
general economic and capital market conditions, including fluctuations in
interest rates; economic conditions in certain geographic areas; and the impact
of current and future laws, governmental regulations, and accounting and other
rulings and guidelines affecting the financial services industry in general and
Golden West's operations in particular. In addition, actual results may differ
materially from the results discussed in any forward-looking statements.
# # #
Financial Information Attached
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF NET EARNINGS
AND OTHER FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share figures)
Three Months Ended Nine Months Ended
September 30 September 30
------------------------------ ------------------------------
2003 2002 2003 2002
------------- ------------- ------------- -------------
Interest Income
Interest on loans $ 795,003 $ 752,343 $ 2,350,687 $ 2,122,065
Interest on mortgage-backed securities 60,246 105,700 207,100 398,147
Interest and dividends on investments 21,637 30,416 67,856 90,272
------------- ------------- ------------- -------------
876,886 888,459 2,625,643 2,610,484
Interest Expense
Interest on deposits 232,789 270,530 719,019 810,259
Interest on advances 63,181 95,403 202,837 295,680
Interest on repurchase agreements 1,878 299 3,160 1,331
Interest on other borrowings 25,708 26,527 76,935 75,596
------------- ------------- ------------- -------------
323,556 392,759 1,001,951 1,182,866
------------- ------------- ------------- -------------
Net Interest Income 553,330 495,700 1,623,692 1,427,618
Provision for loan losses 2,082 6,484 10,062 20,209
------------- ------------- ------------- -------------
Net Interest Income after Provision for
Loan Losses 551,248 489,216 1,613,630 1,407,409
Noninterest Income
Fees 45,692 32,280 122,123 102,152
Gain on the sale of securities, MBS and
loans 25,972 5,914 62,487 26,820
Change in fair value of derivatives 2,993 (54) 8,639 4,903
Other 16,083 19,722 47,483 45,284
------------- ------------- ------------- -------------
90,740 57,862 240,732 179,159
Noninterest Expense
General and administrative:
Personnel 108,976 92,622 310,152 260,661
Occupancy 24,404 22,922 72,301 65,327
Deposit insurance 1,732 1,521 5,005 4,532
Advertising 5,252 4,048 16,569 10,975
Other 40,689 32,654 123,916 96,300
------------- ------------- ------------- -------------
181,053 153,767 527,943 437,795
Earnings before Taxes on Income 460,935 393,311 1,326,419 1,148,773
Taxes on Income 178,029 148,852 510,975 439,865
------------- ------------- ------------- -------------
Net Earnings $ 282,906 $ 244,459 $ 815,444 $ 708,908
============= ============= ============= =============
Basic Earnings Per Share $ 1.86 $ 1.58 $ 5.34 $ 4.58
============= ============= ============= =============
Diluted Earnings Per Share $ 1.83 $ 1.56 $ 5.25 $ 4.52
============= ============= ============= =============
Average common shares outstanding 152,180,798 154,441,454 152,699,508 154,915,165
Average diluted common shares outstanding 154,810,821 156,490,431 155,179,200 156,979,733
Ratios: (a)
Net earnings / average stockholders'
equity 20.48% 20.66% 20.43% 20.73%
Net earnings / average assets 1.53% 1.52% 1.52% 1.54%
Net interest margin (b) 3.07% 3.19% 3.11% 3.20%
General and administrative expense /
average assets .98% .96% .98% .95%
Efficiency ratio (c) 28.11% 27.78% 28.32% 27.25%
(a) Ratios are annualized by multiplying the quarterly computation by four and the nine month computation by one and one third.
Averages are computed by adding the beginning balances and each monthend balance during the quarter and nine month period and
dividing by four and ten, respectively.
(b) Net interest margin is net interest income divided by average interest-earning assets.
(c) Efficiency ratio is general and administrative expense divided by the sum of net interest income and noninterest income.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
AND OTHER FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share figures)
Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30
2003 2003 2003 2002 2002
------------ ------------ ----------- ----------- -----------
ASSETS
Cash $ 219,000 $ 267,960 $ 305,998 $ 318,914 $ 290,578
Securities available for sale at fair value 950,329 604,998 618,377 922,177 586,329
Purchased mortgage-backed securities
available for sale at fair value 24,824 27,524 31,727 34,543 37,828
Purchased mortgage-backed securities
held to maturity at cost 425,741 106,098 132,654 161,846 193,747
Mortgage-backed securities with recourse
held to maturity at cost 4,078,140 4,667,649 5,281,816 5,871,069 6,539,387
Loans receivable less allowance for loan
losses 67,507,415 63,690,274 60,960,882 58,268,899 55,110,526
------------ ------------ ----------- ----------- -----------
Total Loans Receivable including 72,036,120 68,491,545 66,407,079 64,336,357 61,881,488
Mortgage-Backed Securities
Interest earned but uncollected 179,091 198,639 191,377 183,130 203,042
Investment in capital stock of Federal Home
Loan Banks at cost which approximates
fair value 1,142,582 1,132,714 1,121,798 1,072,817 1,063,098
Foreclosed real estate 16,838 11,027 11,362 11,244 11,774
Premises and equipment, net 355,955 355,042 356,301 351,942 346,476
Other assets 1,257,925 1,136,100 991,211 1,209,247 1,132,042
------------ ------------ ----------- ----------- -----------
$ 76,157,840 $ 72,198,025 $ 70,003,503 $ 68,405,828 $ 65,514,827
============ ============ =========== =========== ===========
LIABILITIES and
STOCKHOLDERS' EQUITY
Deposits $ 46,145,048 $ 44,385,717 $43,503,235 $ 41,038,797 $ 38,748,938
Advances from Federal Home Loan Banks 19,689,871 19,927,189 18,882,322 18,635,099 18,577,094
Securities sold under agreements to repurchase 721,639 21,247 21,988 522,299 21,766
Federal funds purchased 300,000 265,000 200,000 0 200,000
Bank notes 1,489,946 99,990 0 1,209,925 1,134,953
Senior debt 990,862 990,467 990,076 989,690 989,295
Subordinated notes 200,000 199,955 199,911 199,867 199,822
Taxes on income 580,969 533,122 615,978 489,252 470,623
Other liabilities 404,258 363,584 396,322 295,649 378,730
Stockholders' equity 5,635,247 5,411,754 5,193,671 5,025,250 4,793,606
------------ ------------ ----------- ----------- -----------
$ 76,157,840 $ 72,198,025 $ 70,003,503 $ 68,405,828 $ 65,514,827
============ ============ =========== =========== ===========
Book value per common share $ 37.10 $ 35.50 $ 34.00 $ 32.73 $ 31.17
Common shares outstanding 151,900,958 152,451,133 152,774,708 153,521,103 153,813,352
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands except per share figures)
For the Quarter Ended
--------------------------------------------------------------------------------------
Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30
2003 2003 2003 2002 2002
-------------- -------------- -------------- -------------- --------------
Net interest income $ 553,330 $ 541,621 $ 528,741 $ 502,676 $ 495,700
Provision for loan losses 2,082 3,501 4,479 961 6,484
Noninterest income 90,740 82,930 67,062 67,841 57,862
Noninterest expense 181,053 177,180 169,710 163,699 153,767
-------------- -------------- -------------- -------------- --------------
Earnings before taxes on income 460,935 443,870 421,614 405,857 393,311
Taxes on income 178,029 171,397 161,549 156,486 148,852
-------------- -------------- -------------- -------------- --------------
Net earnings $ 282,906 $ 272,473 $ 260,065 $ 249,371 $ 244,459
============== ============== ============== ============== ==============
Basic EPS $ 1.86 $ 1.79 $ 1.70 $ 1.62 $ 1.58
Diluted EPS $ 1.83 $ 1.76 $ 1.67 $ 1.60 $ 1.56
Average common shares outstanding 152,180,798 152,582,771 153,347,780 153,511,006 154,441,454
Average diluted common shares outstanding 154,810,821 155,091,780 155,851,663 155,688,363 156,490,431
Number of shares repurchased and retired 630,000 486,975 839,395 445,000 1,217,160
Cost of shares repurchased $ 53,407 $ 37,086 $ 60,737 $ 26,804 $ 77,075
Remaining number of shares authorized for
repurchase 9,328,179 9,958,179 10,445,154 11,284,549 11,729,549
Ratios: (a)
Net earnings / average stockholders'
equity (ROE) 20.48% 20.50% 20.32% 20.33% 20.66%
Net earnings / average assets (ROA) 1.53% 1.53% 1.50% 1.49% 1.52%
Net interest margin (b) 3.07% 3.13% 3.14% 3.10% 3.19%
General and administrative expense /
average assets .98% .99% .98% .98% .96%
Efficiency ratio (c) 28.11% 28.37% 28.48% 28.69% 27.78%
Loan loss reserve $ 288,949 $ 287,868 $ 284,673 $ 281,097 $ 279,818
Net loan chargeoffs (recoveries) $ 1,001 $ 306 $ 903 $ (318) $ 547
Stockholders' equity / total assets 7.40% 7.50% 7.42% 7.35% 7.32%
Total deposit net activity $ 1,759,331 $ 882,482 $ 2,464,438 $ 2,289,859 $ 2,518,197
(a) Ratios are annualized by multiplying the quarterly computation by four. Averages are computed by adding the beginning balance
and each monthend balance during the quarter and dividing by four.
(b) Net interest margin is net interest income divided by average interest-earning assets.
(c) Efficiency ratio is general and administrative expense divided by the sum of
net interest income and noninterest income.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
OTHER FINANCIAL DATA
(Unaudited)
(Dollars in thousands)
For the Quarter Ended
----------------------------------------------------------------------------
Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30
2003 2003 2003 2002 2002
------------- ------------- ------------- ------------- -------------
AVERAGE BALANCES (a)
Cash and investments $ 1,275,081 $ 1,099,522 $ 1,331,028 $ 988,223 $ 1,009,279
Loans receivable including mortgage-backed
securities 70,044,462 67,444,562 65,342,133 63,115,392 60,490,880
Investment in capital stock of Federal Home
Loan Banks 1,137,138 1,126,629 1,097,405 1,066,836 1,056,282
Deposits 45,314,936 43,891,768 42,339,391 39,874,352 37,446,424
Advances from Federal Home Loan Banks 19,417,796 19,765,434 18,598,691 18,418,659 18,902,821
Securities sold under agreements to
repurchase 522,116 21,557 372,164 171,762 22,248
Other borrowings 2,399,344 1,331,453 2,085,239 2,572,539 2,152,415
Stockholders' equity 5,525,243 5,315,729 5,118,183 4,906,872 4,732,215
Total Average Assets 74,194,553 71,279,693 69,428,026 66,868,244 64,134,621
Average Interest-Earning Assets 72,108,046 69,317,504 67,439,798 64,853,046 62,248,688
Average Interest-Bearing Liabilities 67,654,192 65,010,212 63,395,485 61,037,312 58,523,909
LOAN BALANCE AND ACTIVITY
Loans receivable including mortgage-backed
securities $ 72,036,120 $ 68,491,545 $ 66,407,079 $ 64,336,357 $ 61,881,488
Adjustable rate loans receivable including
mortgage-backed securities 69,528,396 66,078,182 63,915,960 61,770,142 59,158,704
New real estate loans originated $ 10,092,199 $ 8,044,095 $ 6,942,757 $ 7,644,576 $ 6,711,955
New adjustable rate mortgages as a
percentage of
new real estate loans originated 93% 91% 91% 89% 93%
New refinanced mortgages as a percentage of
new real estate loans originated 70% 70% 72% 68% 59%
LOANS SOLD AND SERVICED DATA
Loan sales $ 1,117,899 $ 894,345 $ 804,541 $ 988,743 $ 329,601
Loans serviced for others 5,886,668 5,653,002 5,566,570 5,408,494 5,131,994
Balance of capitalized mortgage servicing
rights 92,098 82,060 74,192 69,448 60,687
NONPERFORMING ASSETS
Loans (including MBS with recourse)
90 days or more past due $ 409,001 $ 436,595 $ 432,479 $ 413,123 $ 405,806
Foreclosed real estate 16,838 11,027 11,362 11,244 11,774
------------- ------------- ------------- ------------- -------------
Total nonperforming assets $ 425,839 $ 447,622 $ 443,841 $ 424,367 $ 417,580
============= ============= ============= ============= =============
Ratio of nonperforming assets (NPAs) to total
assets .56% .62% .63% .62% .64%
Ratio of troubled debt restructured (TDRs) to
total assets .00 .00 .00 .00 .01
------------- ------------- ------------- ------------- -------------
Ratio of NPAs and TDRs to total assets .56% .62% .63% .62% .65%
============= ============= ============= ============= =============
SPREAD DATA
Yield on loan portfolio 4.73% 4.92% 5.08% 5.28% 5.50%
Yield on investments 1.10% 1.27% 1.39% 1.94% 3.50%
Yield on earning assets 4.70% 4.90% 5.07% 5.25% 5.49%
Cost of deposits 1.95% 2.12% 2.25% 2.56% 2.81%
Cost of borrowings 1.45% 1.58% 1.67% 1.85% 2.10%
Cost of funds 1.78% 1.94% 2.06% 2.32% 2.56%
Yield on earning assets less cost of funds
(Primary Spread) 2.92% 2.96% 3.01% 2.93% 2.93%
(a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four.
Exhibit 99.2
FOR FURTHER INFORMATION CONTACT FOR IMMEDIATE RELEASE
William C. Nunan, Group Senior Vice President
Telephone: (510) 446-3614
October 21, 2003
GOLDEN WEST FINANCIAL RELEASES THIRTEEN MONTH STATISTICAL DATA
Oakland, California: Golden West Financial Corporation, parent of World Savings
Bank, today released statistical data for the thirteen months ended September
30, 2003.
Headquartered in Oakland, California, Golden West is one of the nation's largest
financial institutions with assets of over $75 billion as of September 30, 2003.
Currently operating 475 savings and lending offices in 38 states under the World
name, the Company has one of the most extensive thrift branch systems in the
country. Golden West's stock is listed on the New York Stock and Pacific
Exchanges under the ticker symbol GDW. Golden West investor information is
available at www.gdw.com.
(Financial Information Attached)
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
MONTHLY FINANCIAL HIGHLIGHTS
September 2002 - September 2003
(Dollars in millions)
2003
-----------------------------------------------------------------------------------------
SEP AUG JUL JUN MAY APR MAR
----------- ------------ ----------- ----------- ----------- ----------- ----------
Total Assets $ 76,158 $ 75,028 $ 73,395 $ 72,198 $ 72,059 $ 70,859 $ 70,004
Cash and Investments $ 1,169 $ 1,693 $ 1,365 $ 873 $ 1,570 $ 1,031 $ 924
Loan Balance (Including MBS) $ 72,036 $ 70,403 $ 69,248 $ 68,492 $ 67,767 $ 67,113 $ 66,407
Adjustable Rate Mortgages (Including MBS) $ 69,528 $ 67,843 $ 66,868 $ 66,078 $ 65,318 $ 64,633 $ 63,916
Loans Originated - Month $ 3,698 $ 3,237 $ 3,157 $ 2,786 $ 2,606 $ 2,652 $ 2,531
Percentage ARMs - Month 97% 92% 90% 92% 91% 90% 91%
Percentage Refinances - Month 67% 71% 71% 70% 70% 71% 71%
Loans Originated - YTD $ 25,079 $ 21,381 $ 18,144 $ 14,987 $ 12,201 $ 9,595 $ 6,943
Percentage ARMs - YTD 92% 91% 91% 91% 90% 90% 91%
Percentage Refinances - YTD 71% 71% 71% 71% 71% 72% 72%
Total Deposits $ 46,145 $ 45,761 $ 44,968 $ 44,386 $ 44,083 $ 43,595 $ 43,503
Total Deposit Net Activity - Month $ 384 $ 793 $ 582 $ 303 $ 488 $ 92 $ 795
Total Deposit Net Activity - YTD $ 5,106 $ 4,722 $ 3,929 $ 3,347 $ 3,044 $ 2,556 $ 2,464
Federal Home Loan Bank Borrowings $ 19,690 $ 19,131 $ 18,923 $ 19,927 $ 20,374 $ 19,878 $ 18,882
Other Borrowings:
Reverse Repurchases 722 623 723 21 22 21 22
Federal Funds Purchased 300 0 0 265 0 0 200
Bank Notes 1,490 1,590 1,090 100 0 0 0
Senior Debt 991 991 991 990 990 990 990
Subordinated Notes 200 200 200 200 200 200 200
----------- ------------ ----------- ----------- ----------- ----------- ----------
Total Borrowings $ 23,393 $ 22,535 $ 21,927 $ 21,503 $ 21,586 $ 21,089 $ 20,294
=========== ============ =========== =========== =========== =========== ==========
Yield on Loan Portfolio 4.73% 4.80% 4.86% 4.92% 4.96% 5.02% 5.08%
Yield on Investments 1.10 1.03 1.06 1.27 1.30 1.34 1.39
----------- ------------ ----------- ----------- ----------- ----------- ----------
Combined Yield on Earning Assets 4.70% 4.74% 4.81% 4.90% 4.91% 5.00% 5.07%
Cost of Deposits 1.95% 2.03% 2.06% 2.12% 2.14% 2.17% 2.25%
Cost of Federal Home Loan Bank Borrowings 1.27 1.29 1.32 1.37 1.40 1.43 1.46
Cost of Other Borrowings 2.38 2.49 2.67 4.17 5.03 5.03 4.51
----------- ------------ ----------- ----------- ----------- ----------- ----------
Combined Cost of Funds 1.78% 1.84% 1.88% 1.94% 1.97% 1.99% 2.06%
----------- ------------ ----------- ----------- ----------- ----------- ----------
Net Interest Rate Spread (Primary Spread) 2.92% 2.90% 2.93% 2.96% 2.94% 3.01% 3.01%
=========== ============ =========== =========== =========== =========== ==========
Loans Sold $ 231 $ 431 $ 456 $ 336 $ 286 $ 272 $ 252
Loan and MBS Repayments and Payoffs - Month $ 1,918 $ 1,920 $ 1,949 $ 1,728 $ 1,662 $ 1,681 $ 1,473
As a % of Prior Month Loan Balances
(Annualized) 32.70% 33.28% 34.14% 30.59% 29.72% 30.37% 26.95%
Nonperforming Assets and Troubled Debt
Restructured as a % of Total Assets .56% .57% .60% .62% .63% .64% .63%
Page 1 of 2
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
MONTHLY FINANCIAL HIGHLIGHTS
September 2002 - September 2003
(Dollars in millions)
2003 2002
-------------------------- -----------------------------------------------------
FEB JAN DEC NOV OCT SEP
------------ ------------ ------------- ----------- ------------ ------------
Total Assets $ 69,590 $ 69,713 $ 68,406 $ 67,032 $ 66,520 $ 65,515
Cash and Investments $ 1,201 $ 1,957 $ 1,241 $ 844 $ 991 $ 877
Loan Balance (Including MBS) $ 65,598 $ 65,027 $ 64,336 $ 63,463 $ 62,781 $ 61,881
Adjustable Rate Mortgages (Including MBS) $ 63,127 $ 62,511 $ 61,770 $ 60,789 $ 60,106 $ 59,159
Loans Originated - Month $ 2,074 $ 2,338 $ 2,648 $ 2,337 $ 2,660 $ 2,212
Percentage ARMs - Month 90% 90% 89% 88% 89% 91%
Percentage Refinances - Month 73% 72% 69% 68% 68% 64%
Loans Originated - YTD $ 4,412 $ 2,338 $ 26,683 $ 24,035 $ 21,698 $ 19,038
Percentage ARMs - YTD 90% 90% 92% 92% 92% 93%
Percentage Refinances - YTD 73% 72% 62% 61% 60% 59%
Total Deposits $ 42,708 $ 42,107 $ 41,039 $ 40,219 $ 39,490 $ 38,749
Total Deposit Net Activity - Month $ 601 $ 1,068 $ 820 $ 729 $ 741 $ 923
Total Deposit Net Activity - YTD $ 1,669 $ 1,068 $ 6,566 $ 5,746 $ 5,017 $ 4,276
Federal Home Loan Bank Borrowings $ 18,337 $ 18,541 $ 18,635 $ 18,129 $ 18,333 $ 18,577
Other Borrowings:
Reverse Repurchases 422 522 522 122 21 22
Federal Funds Purchased 0 0 0 450 450 200
Bank Notes 812 1,360 1,210 913 1,175 1,135
Senior Debt 990 990 990 990 989 989
Subordinated Notes 200 200 200 200 200 200
------------ ------------ ------------- ----------- ------------ ------------
Total Borrowings $ 20,761 $ 21,613 $ 21,557 $ 20,804 $ 21,168 $ 21,123
============ ============ ============= =========== ============ ============
Yield on Loan Portfolio 5.16% 5.22% 5.28% 5.39% 5.42% 5.50%
Yield on Investments 1.32 1.34 1.94 4.04 3.06 3.50
------------ ------------ ------------- ----------- ------------ ------------
Combined Yield on Earning Assets 5.12% 5.14% 5.25% 5.38% 5.41% 5.49%
Cost of Deposits 2.30% 2.47% 2.56% 2.63% 2.74% 2.81%
Cost of Federal Home Loan Bank Borrowings 1.51 1.57 1.68 1.82 1.89 1.93
Cost of Other Borrowings 3.20 2.84 2.92 3.11 3.20 3.34
------------ ------------ ------------- ----------- ------------ ------------
Combined Cost of Funds 2.10% 2.23% 2.32% 2.41% 2.50% 2.56%
------------ ------------ ------------- ----------- ------------ ------------
Net Interest Rate Spread (Primary Spread) 3.02% 2.91% 2.93% 2.97% 2.91% 2.93%
============ ============ ============= =========== ============ ============
Loans Sold $ 251 $ 302 $ 329 $ 328 $ 332 $ 149
Loan and MBS Repayments and Payoffs - Month $ 1,253 $ 1,353 $ 1,510 $ 1,384 $ 1,500 $ 1,238
As a % of Prior Month Loan Balances (Annualized) 23.13% 25.23% 28.55% 26.45% 29.08% 24.34%
Nonperforming Assets and Troubled Debt
Restructured as a % of Total Assets .65% .63% .62% .63% .64% .65%
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