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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): January 22, 2004
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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 Fourth Quarter 2003 Earnings Press Release
99.2 December 2003 Thirteen Month Statistical Data Press Release
99.3 Quarterly Consolidated Statement of Net Earnings and Other
Financial Data for Five Quarters Ended December 31, 2003
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: January 23, 2004
-------------------------------------
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
January 22, 2004
GOLDEN WEST POSTS RECORD EARNINGS AND LOAN ORIGINATIONS IN 2003
NET INCOME EXCEEDS $1 BILLION FOR THE FIRST TIME
Oakland, California: Golden West Financial Corporation, parent of World Savings
Bank, announced record diluted earnings per share of $7.14 for 2003, up 17% from
the previous all-time high of $6.12 reported in 2002. Per share profits in the
fourth quarter of 2003 reached $1.88, an 18% increase from the $1.60 registered
one year earlier. The $1.88 includes $.04 from a non-recurring tax benefit.
Commenting on the Company's earnings growth, Marion O. Sandler, Chairman of the
Board and Chief Executive Officer of Golden West, remarked, "In 2003, net
earnings exceeded $1 billion for the first time in the Company's history. An
important factor in reaching this milestone was our ability to continue to
expand the mortgage portfolio, which is our primary earning asset. Our loan
balances grew 20% in 2003. Obviously, having more mortgages on our books
increases our capacity to generate income."
Reflecting on the Company's lending performance, Sandler stated, "Mortgage
originations in the entire United States reached an all-time high of over $3
trillion in 2003, primarily because interest rates on new home loans remained
close to 45-year lows throughout the year. Our sales force took advantage of
this favorable market and generated unprecedented volume." Golden West
originated $36.0 billion of loans in 2003, up 35% from the $26.7 billion
produced in 2002. For the fourth quarter of 2003, originations totaled $10.9
billion, a 43% increase from the $7.6 billion booked during the same period in
2002.
Returning to her discussion of the factors influencing profits, Sandler
elaborated, "Higher noninterest income also played a role in our earnings
increase." Noninterest income totaled $313 million in 2003, compared to $247
million one year earlier. "The biggest contributor to the growth in this revenue
source was an increase in the gains we receive when we sell fixed-rate
mortgages." Golden West sold $3.2 billion of loans in 2003, compared with $2.4
billion one year earlier.
Adding to her earnings explanation, Sandler discussed the non-recurring tax item
recognized during the last three months of the year. She said, "Our profits for
the fourth quarter of 2003 include tax benefits resulting from the closure of an
audit and other issues. These one-time events increased our earnings per share
by approximately $.04."
Citing a final factor that influenced profits, Sandler observed, "Our general
and administrative expenses were 20% higher in 2003 than they were in 2002. This
increase in spending was necessary to support record loan volume. The higher
costs also reflect our continued investment in people and technology to ensure
we have the resources in place to take advantage of future growth
opportunities."
Moving back to a discussion of lending activity, Sandler noted, "Golden West's
featured product is an adjustable rate mortgage, or ARM. The attractiveness of
this loan is affected by what is happening with fixed-rate mortgages, which are
the borrowers' other alternative. While ARMs were competitive during all of
2003, they became particularly popular with customers during the fourth quarter,
as the rates on these loans continued to be low and stable. By way of contrast,
the cost of a fixed loan was higher than earlier in the year. Adjustable rate
mortgages comprised 98% of our new volume in the fourth quarter and 94% of all
new lending in 2003. Originating variable rate loans is important, because we
keep these mortgages in our portfolio to help limit the exposure of our earnings
to swings in interest rates."
Discussing loan quality, Sandler explained, "In 2003, Golden West's loan
portfolio continued to exhibit the positive effects of our focus on producing
high-quality assets in order to manage credit risk. A key indicator of our
performance is the ratio of net chargeoffs to average loans outstanding. This
measure relates losses on foreclosed properties to the size of the loan
portfolio. As a result of our continuing emphasis on credit quality, in 2003
this chargeoff ratio amounted to zero for the sixth year in a row." Continuing,
Sandler added, "Our success in limiting credit risk can also be judged by our
nonperforming asset level." The ratio of nonperforming assets and troubled debt
restructured to total assets fell to a low .51%, compared to .62% at yearend
2002.
Turning to the topic of the Company's deposit growth, Sandler observed, "For
most of 2003, continued uncertainty in the economy caused consumers to search
for predictable, secure investments, and our products met their needs." Retail
savings grew $5.7 billion in 2003, the second largest increase in the Company's
history after last year's record $6.6 billion. She continued, "However, as the
year progressed, the economy started to heat up and competition for savers'
dollars intensified, slowing deposit growth." For the fourth quarter of 2003,
net deposit inflows were $0.6 billion, down from $2.3 billion one year earlier.
Headquartered in Oakland, California, Golden West is one of the nation's largest
financial institutions with assets over $80 billion as of December 31, 2003. The
Company currently operates 479 savings and lending offices in 38 states under
the World name. 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 Year Ended
December 31 December 31
------------------------------- -------------------------------
2003 2002 2003 2002
-------------- ------------- -------------- -------------
Interest Income
Interest on loans $ 827,400 $ 771,234 $ 3,178,087 $ 2,893,299
Interest on mortgage-backed securities 54,612 92,376 261,712 490,523
Interest and dividends on investments 20,689 22,940 88,545 113,212
-------------- ------------- -------------- -------------
902,701 886,550 3,528,344 3,497,034
Interest Expense
Interest on deposits 219,104 269,678 938,123 1,079,937
Interest on advances 66,956 83,933 269,793 379,613
Interest on repurchase agreements 5,888 495 9,048 1,826
Interest on other borrowings 26,061 29,768 102,996 105,364
-------------- ------------- -------------- -------------
318,009 383,874 1,319,960 1,566,740
-------------- ------------- -------------- -------------
Net Interest Income 584,692 502,676 2,208,384 1,930,294
Provision for loan losses 1,802 961 11,864 21,170
-------------- ------------- -------------- -------------
Net Interest Income after Provision for
Loan Losses 582,890 501,715 2,196,520 1,909,124
Noninterest Income
Fees 41,183 37,264 163,306 139,416
Gain on the sale of securities, MBS and
loans 9,787 18,323 72,274 45,143
Change in fair value of derivatives 2,251 2,707 10,890 7,610
Other 19,377 9,547 66,860 54,831
-------------- ------------- -------------- -------------
72,598 67,841 313,330 247,000
Noninterest Expense (a)
General and administrative:
Personnel 122,293 99,544 453,476 378,099
Occupancy 19,886 17,902 76,649 69,559
Technology and telecommunications 19,142 20,153 78,701 66,318
Deposit insurance 1,678 1,530 6,683 6,062
Advertising 5,985 5,617 22,516 16,528
Other 23,588 18,953 82,490 64,928
-------------- ------------- -------------- -------------
192,572 163,699 720,515 601,494
Earnings before Taxes on Income 462,916 405,857 1,789,335 1,554,630
Taxes on Income 172,261 156,486 683,236 596,351
-------------- ------------- -------------- -------------
Net Earnings $ 290,655 $ 249,371 $ 1,106,099 $ 958,279
============== ============= ============== =============
Basic Earnings Per Share $ 1.91 $ 1.62 $ 7.25 $ 6.20
============== ============= ============== =============
Diluted Earnings Per Share $ 1.88 $ 1.60 $ 7.14 $ 6.12
============== ============= ============== =============
Average common shares outstanding 152,001,578 153,511,006 152,523,592 154,561,240
Average diluted common shares outstanding 154,830,609 155,688,363 154,987,203 156,682,180
Ratios: (b)
Net earnings / average stockholders'
equity 20.09% 20.33% 20.33% 20.62%
Net earnings / average assets 1.47% 1.49% 1.50% 1.53%
Net interest margin (c) 3.01% 3.10% 3.05% 3.17%
General and administrative expense /
average assets .97% .98% .98% .96%
Efficiency ratio (d) 29.30% 28.69% 28.57% 27.63%
(a) Certain reclassifications have been made to prior period expense categories to conform to the current period presentation,
which includes a separate category for "Technology and telecommunications".
(b) Ratios are annualized by multiplying the quarterly computation by four. Averages are computed by adding the beginning balances
and each monthend balance during the quarter and the year and dividing by four and thirteen, respectively.
(c) Net interest margin is net interest income divided by average earning assets.
(d) 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)
Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31
2003 2003 2003 2003 2002
------------ ------------ ----------- ----------- -----------
ASSETS
Cash $ 260,823 $ 219,000 $ 267,960 $ 305,998 $ 318,914
Securities available for sale at fair value 1,879,443 950,329 604,998 618,377 922,177
Purchased mortgage-backed securities
available for sale at fair value 22,071 24,824 27,524 31,727 34,543
Purchased mortgage-backed securities
held to maturity at cost 433,319 425,741 106,098 132,654 161,846
Mortgage-backed securities with recourse
held to maturity at cost 3,650,048 4,078,140 4,667,649 5,281,816 5,871,069
Loans held for sale 124,917 324,297 502,308 473,303 381,232
Loans held in portfolio less allowance for
loan losses (a) 74,080,661 68,096,299 63,991,745 61,138,534 58,562,084
------------ ------------ ----------- ----------- -----------
Total Loans Receivable and Mortgage-Backed
Securities (a) 78,311,016 72,949,301 69,295,324 67,058,034 65,010,774
Interest earned but uncollected 183,761 179,091 198,639 191,377 183,130
Investment in capital stock of Federal Home
Loan Banks at cost which approximates fair
value 1,152,339 1,142,582 1,132,714 1,121,798 1,072,817
Foreclosed real estate 13,904 16,838 11,027 11,362 11,244
Premises and equipment, net 360,327 355,955 355,042 356,301 351,942
Other assets (a) 388,277 344,744 332,321 340,256 534,830
------------ ------------ ----------- ----------- -----------
$ 82,549,890 $76,157,840 $72,198,025 $70,003,503 $68,405,828
============ ============ =========== =========== ===========
LIABILITIES and
STOCKHOLDERS' EQUITY
Deposits $ 46,726,965 $46,145,048 $44,385,717 $43,503,235 $41,038,797
Advances from Federal Home Loan Banks 22,000,234 19,689,871 19,927,189 18,882,322 18,635,099
Securities sold under agreements to repurchase 3,021,385 721,639 21,247 21,988 522,299
Federal funds purchased 0 300,000 265,000 200,000 0
Bank notes 3,015,854 1,489,946 99,990 0 1,209,925
Senior debt 991,257 990,862 990,467 990,076 989,690
Subordinated notes 0 200,000 199,955 199,911 199,867
Taxes on income 561,406 580,969 533,122 615,978 489,252
Other liabilities 285,521 404,258 363,584 396,322 295,649
Stockholders' equity 5,947,268 5,635,247 5,411,754 5,193,671 5,025,250
------------ ------------ ----------- ----------- -----------
$ 82,549,890 $76,157,840 $72,198,025 $70,003,503 $68,405,828
============ ============ =========== =========== ===========
Book value per common share $ 39.10 $ 37.10 $ 35.50 $ 34.00 $ 32.73
Common shares outstanding 152,119,108 151,900,958 152,451,133 152,774,708 153,521,103
(a) Amounts shown for prior periods conform to the current period presentation, which includes a reclassification of "Loans in
process" from "Other assets" to "Loans receivable". "Loans in process" are funded, interest-earning loans that have not yet
been entered into the loan servicing system due to the normal five to seven day processing lag.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands except per share figures)
For the Quarter Ended
--------------------------------------------------------------------------------------
Dec. 31 Sep. 30 Jun. 30 Mar 31 Dec. 31
2003 2003 2003 2003 2002
-------------- -------------- -------------- -------------- --------------
Net interest income $ 584,692 $ 553,330 $ 541,621 $ 528,741 $ 502,676
Provision for loan losses 1,802 2,082 3,501 4,479 961
Noninterest income 72,598 90,740 82,930 67,062 67,841
Noninterest expense 192,572 181,053 177,180 169,710 163,699
-------------- -------------- -------------- -------------- --------------
Earnings before taxes on income 462,916 460,935 443,870 421,614 405,857
Taxes on income 172,261 178,029 171,397 161,549 156,486
-------------- -------------- -------------- -------------- --------------
Net earnings $ 290,655 $ 282,906 $ 272,473 $ 260,065 $ 249,371
============== ============== ============== ============== ==============
Basic EPS $ 1.91 $ 1.86 $ 1.79 $ 1.70 $ 1.62
Diluted EPS $ 1.88 $ 1.83 $ 1.76 $ 1.67 $ 1.60
Average common shares outstanding 152,001,578 152,180,798 152,582,771 153,347,780 153,511,006
Average diluted common shares outstanding 154,830,609 154,810,821 155,091,780 155,851,663 155,688,363
Number of shares repurchased and retired 0 630,000 486,975 839,395 445,000
Cost of shares repurchased $ 0 $ 53,407 $ 37,086 $ 60,737 $ 26,804
Remaining number of shares authorized for
repurchase 9,328,179 9,328,179 9,958,179 10,445,154 11,284,549
Ratios: (a)
Net earnings / average stockholders'
equity (ROE) 20.09% 20.48% 20.50% 20.32% 20.33%
Net earnings / average assets (ROA) 1.47% 1.53% 1.53% 1.50% 1.49%
Net interest margin (b) 3.01% 3.07% 3.13% 3.14% 3.10%
General and administrative expense /
average assets .97% .98% .99% .98% .98%
Efficiency ratio (c) 29.30% 28.11% 28.37% 28.48% 28.69%
Loan loss reserve $ 289,937 $ 288,949 $ 287,868 $ 284,673 $ 281,097
Net loan chargeoffs (recoveries) $ 814 $ 1,001 $ 306 $ 903 $ (318)
Stockholders' equity / total assets 7.20% 7.40% 7.50% 7.42% 7.35%
Total deposit net activity $ 581,917 $ 1,759,331 $ 882,482 $ 2,464,438 $ 2,289,859
(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 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
-----------------------------------------------------------------------
Dec. 31 Sep. 30 Jun. 30 Mar 31 Dec. 31
2003 2003 2003 2003 2002
----------- ----------- ------------ ------------- -------------
AVERAGE BALANCES (a)
Cash and investments $1,409,734 $1,275,081 $ 1,099,522 $ 1,331,028 $ 988,223
Loans receivable and mortgage-backed
securities (b) 75,544,443 70,888,271 68,162,253 65,949,782 63,773,686
Investment in capital stock of Federal Home
Loan Banks 1,146,948 1,137,138 1,126,629 1,097,405 1,066,836
Deposits 46,448,866 45,314,936 43,891,768 42,339,391 39,874,352
Advances from Federal Home Loan Banks 20,642,344 19,417,796 19,765,434 18,598,691 18,418,659
Securities sold under agreements to
repurchase 1,921,788 522,116 21,557 372,164 171,762
Other borrowings 3,219,452 2,399,344 1,331,453 2,085,239 2,572,539
Stockholders' equity 5,787,207 5,525,243 5,315,729 5,118,183 4,906,872
Total Average Assets 79,029,081 74,194,553 71,279,693 69,428,026 66,868,244
Average Earning Assets (b) 77,773,138 72,951,855 70,035,195 68,047,446 65,511,340
Average Interest-Bearing Liabilities 72,232,450 67,654,192 65,010,212 63,395,485 61,037,312
LOAN BALANCE AND ACTIVITY
Loans receivable and mortgage-backed
securities (b) $78,311,016 $72,949,301 $69,295,324 $67,058,034 $ 65,010,774
Adjustable rate loans receivable and
mortgage-backed securities 75,238,723 69,528,396 66,078,182 63,915,960 61,770,142
New real estate loans originated $10,905,670 $10,092,199 $ 8,044,095 $ 6,942,757 $ 7,644,576
New adjustable rate mortgages as a
percentage of new real estate loans
originated 98% 93% 91% 91% 89%
New refinanced mortgages as a percentage of
new real estate loans originated 70% 70% 70% 72% 68%
LOANS SOLD AND SERVICED DATA
Loan sales $ 401,091 $1,117,899 $ 894,345 $ 804,541 $ 988,743
Loans serviced for others 5,764,986 5,886,668 5,653,002 5,566,570 5,408,494
Balance of capitalized mortgage servicing
rights 88,967 92,098 82,060 74,192 69,448
NONPERFORMING ASSETS
Loans and MBS 90 days or more past due $ 410,064 $ 409,001 $ 436,595 $ 432,479 $ 413,123
Foreclosed real estate 13,904 16,838 11,027 11,362 11,244
----------- ----------- ------------ ------------- -------------
Total nonperforming assets $ 423,968 $ 425,839 $ 447,622 $ 443,841 $ 424,367
=========== =========== ============ ============= =============
Ratio of nonperforming assets (NPAs) to total
assets .51% .56% .62% .63% .62%
Ratio of troubled debt restructured (TDRs) to
total assets .00 .00 .00 .00 .00
----------- ----------- ------------ ------------- -------------
Ratio of NPAs and TDRs to total assets .51% .56% .62% .63% .62%
=========== =========== ============ ============= =============
SPREAD DATA
Yield on loan portfolio 4.61% 4.73% 4.92% 5.08% 5.28%
Yield on interest-earning investments .93% 1.10% 1.27% 1.39% 1.94%
Yield on interest-earning assets 4.54% 4.70% 4.90% 5.07% 5.25%
Cost of deposits 1.85% 1.95% 2.12% 2.25% 2.56%
Cost of borrowings 1.37% 1.45% 1.58% 1.67% 1.85%
Cost of funds 1.67% 1.78% 1.94% 2.06% 2.32%
Yield on interest-earning assets less cost of
funds (Primary Spread) 2.87% 2.92% 2.96% 3.01% 2.93%
(a) Averages are computed by adding the beginning balance and each monthend balance during the quarter and dividing by four.
(b) Amounts shown for prior periods conform to the current period presentation, which includes a reclassification of "Loans in
process" from "Other assets" to "Loans receivable". "Loans in process" are funded, interest-earning loans that have not yet
been entered into the loan servicing system due to the normal five to seven day processing lag.
Exhibit 99.2
FOR FURTHER INFORMATION CONTACT FOR IMMEDIATE RELEASE
William C. Nunan, Group Senior Vice President
Telephone: (510) 446-3614
January 22, 2004
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 December 31,
2003.
Headquartered in Oakland, California, Golden West is one of the nation's largest
financial institutions with assets over $80 billion as of December 31, 2003. The
Company currently operates 479 savings and lending offices in 38 states under
the World name. 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
December 2002 - December 2003
(Dollars in millions)
2003
------------------------------------------------------------------------------------------
DEC NOV OCT SEP AUG JUL JUN
----------- ------------ ----------- ----------- ----------- ----------- -----------
Total Assets $ 82,550 $ 79,661 $ 77,748 $ 76,158 $ 75,028 $ 73,395 $ 72,198
Cash and Investments $ 2,140 $ 1,285 $ 1,045 $ 1,169 $ 1,693 $ 1,365 $ 873
Loans and MBS (a) $ 78,311 $ 76,272 $ 74,645 $ 72,949 $ 71,270 $ 70,038 $ 69,295
Adjustable Rate Mortgages and MBS $ 75,239 $ 73,222 $ 71,521 $ 69,528 $ 67,843 $ 66,868 $ 66,078
Loans Originated - Month $ 3,761 $ 3,276 $ 3,869 $ 3,698 $ 3,237 $ 3,157 $ 2,786
Percentage ARMs - Month 98% 98% 98% 97% 92% 90% 92%
Percentage Refinances - Month 71% 70% 69% 67% 71% 71% 70%
Loans Originated - YTD $ 35,985 $ 32,224 $ 28,948 $ 25,079 $ 21,381 $ 18,144 $ 14,987
Percentage ARMs - YTD 94% 93% 92% 92% 91% 91% 91%
Percentage Refinances - YTD 70% 70% 70% 71% 71% 71% 71%
Total Deposits $ 46,727 $ 46,489 $ 46,434 $ 46,145 $ 45,761 $ 44,968 $ 44,386
Total Deposit Net Activity - Month $ 238 $ 55 $ 289 $ 384 $ 793 $ 582 $ 303
Total Deposit Net Activity - YTD $ 5,688 $ 5,450 $ 5,395 $ 5,106 $ 4,722 $ 3,929 $ 3,347
Federal Home Loan Bank Borrowings $ 22,000 $ 20,689 $ 20,190 $ 19,690 $ 19,131 $ 18,923 $ 19,927
Other Borrowings:
Reverse Repurchases 3,021 2,572 1,372 722 623 723 21
Federal Funds Purchased 0 0 100 300 0 0 265
Bank Notes 3,016 1,971 1,837 1,490 1,590 1,090 100
Senior Debt 991 991 991 991 991 991 990
Subordinated Notes 0 0 0 200 200 200 200
----------- ------------ ----------- ----------- ----------- ----------- -----------
Total Borrowings $ 29,028 $ 26,223 $ 24,490 $ 23,393 $ 22,535 $ 21,927 $ 21,503
=========== ============ =========== =========== =========== =========== ===========
Yield on Loan Portfolio 4.61% 4.64% 4.68% 4.73% 4.80% 4.86% 4.92%
Yield on Interest-Earning Investments .93 1.03 1.04 1.10 1.03 1.06 1.27
----------- ------------ ----------- ----------- ----------- ----------- -----------
Combined Yield on Interest-Earning Assets 4.54% 4.61% 4.65% 4.70% 4.74% 4.81% 4.90%
Cost of Deposits 1.85% 1.86% 1.87% 1.95% 2.03% 2.06% 2.12%
Cost of Federal Home Loan Bank Borrowings 1.28 1.28 1.28 1.27 1.29 1.32 1.37
Cost of Other Borrowings 1.66 1.80 1.97 2.38 2.49 2.67 4.17
----------- ------------ ----------- ----------- ----------- ----------- -----------
Combined Cost of Funds 1.67% 1.69% 1.71% 1.78% 1.84% 1.88% 1.94%
----------- ------------ ----------- ----------- ----------- ----------- -----------
Net Interest Rate Spread (Primary Spread) 2.87% 2.92% 2.94% 2.92% 2.90% 2.93% 2.96%
=========== ============ =========== =========== =========== =========== ===========
Loans Sold $ 113 $ 83 $ 205 $ 231 $ 431 $ 456 $ 336
Loan and MBS Repayments and Payoffs - Month $ 1,717 $ 1,543 $ 1,845 $ 1,918 $ 1,920 $ 1,949 $ 1,728
As a % of Prior Month Loan Balances
(Annualized) (a) 27.02% 24.81% 30.35% 32.30% 32.90% 33.75% 30.28%
Nonperforming Assets and Troubled Debt
Restructured as a % of Total Assets .51% .52% .54% .56% .57% .60% .62%
Page 1 of 2
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
MONTHLY FINANCIAL HIGHLIGHTS
December 2002 - December 2003
(Dollars in millions)
2003 2002
------------------------------------------------------------------ ------------
MAY APR MAR FEB JAN DEC
------------ ------------ ------------- ----------- ------------ ------------
Total Assets $ 72,059 $ 70,859 $ 70,004 $ 69,590 $ 69,713 $ 68,406
Cash and Investments $ 1,570 $ 1,031 $ 924 $ 1,201 $ 1,957 $ 1,241
Loans and MBS (a) $ 68,474 $ 67,821 $ 67,058 $ 66,180 $ 65,550 $ 65,011
Adjustable Rate Mortgages and MBS $ 65,318 $ 64,633 $ 63,916 $ 63,127 $ 62,511 $ 61,770
Loans Originated - Month $ 2,606 $ 2,652 $ 2,531 $ 2,074 $ 2,338 $ 2,648
Percentage ARMs - Month 91% 90% 91% 90% 90% 89%
Percentage Refinances - Month 70% 71% 71% 73% 72% 69%
Loans Originated - YTD $ 12,201 $ 9,595 $ 6,943 $ 4,412 $ 2,338 $ 26,683
Percentage ARMs - YTD 90% 90% 91% 90% 90% 92%
Percentage Refinances - YTD 71% 72% 72% 73% 72% 62%
Total Deposits $ 44,083 $ 43,595 $ 43,503 $ 42,708 $ 42,107 $ 41,039
Total Deposit Net Activity - Month $ 488 $ 92 $ 795 $ 601 $ 1,068 $ 820
Total Deposit Net Activity - YTD $ 3,044 $ 2,556 $ 2,464 $ 1,669 $ 1,068 $ 6,566
Federal Home Loan Bank Borrowings $ 20,374 $ 19,878 $ 18,882 $ 18,337 $ 18,541 $ 18,635
Other Borrowings:
Reverse Repurchases 22 21 22 422 522 522
Federal Funds Purchased 0 0 200 0 0 0
Bank Notes 0 0 0 812 1,360 1,210
Senior Debt 990 990 990 990 990 990
Subordinated Notes 200 200 200 200 200 200
------------ ------------ ------------- ----------- ------------ ------------
Total Borrowings $ 21,586 $ 21,089 $ 20,294 $ 20,761 $ 21,613 $ 21,557
============ ============ ============= =========== ============ ============
Yield on Loan Portfolio 4.96% 5.02% 5.08% 5.16% 5.22% 5.28%
Yield on Interest-Earning Investments 1.30 1.34 1.39 1.32 1.34 1.94
------------ ------------ ------------- ----------- ------------ ------------
Combined Yield on Interest-Earning Assets 4.91% 5.00% 5.07% 5.12% 5.14% 5.25%
Cost of Deposits 2.14% 2.17% 2.25% 2.30% 2.47% 2.56%
Cost of Federal Home Loan Bank Borrowings 1.40 1.43 1.46 1.51 1.57 1.68
Cost of Other Borrowings 5.03 5.03 4.51 3.20 2.84 2.92
------------ ------------ ------------- ----------- ------------ ------------
Combined Cost of Funds 1.97% 1.99% 2.06% 2.10% 2.23% 2.32%
------------ ------------ ------------- ----------- ------------ ------------
Net Interest Rate Spread (Primary Spread) 2.94% 3.01% 3.01% 3.02% 2.91% 2.93%
============ ============ ============= =========== ============ ============
Loans Sold $ 286 $ 272 $ 252 $ 251 $ 302 $ 329
Loan and MBS Repayments and Payoffs - Month $ 1,662 $ 1,681 $ 1,473 $ 1,253 $ 1,353 $ 1,510
As a % of Prior Month Loan Balances
(Annualized) (a) 29.41% 30.07% 26.72% 22.95% 24.97% 28.27%
Nonperforming Assets and Troubled Debt
Restructured as a % of Total Assets .63% .64% .63% .65% .63% .62%
(a) Amounts shown for prior months conform to the current month presentation, which includes a reclassification of "Loans in
process" from "Other assets" to "Loans". "Loans in process" are funded, interest-earning loans that have not yet been entered
into the loan servicing system due to the normal five to seven day processing lag.
Page 2 of 2
Exhibit 99.3
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY CONSOLIDATED STATEMENT OF NET EARNINGS AND OTHER FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share figures)
For the Quarter Ended
-----------------------------------------------------------------------------
Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31
2003 2003 2003 2003 2002
------------- ------------- ------------- ------------- ------------
Interest Income
Interest on loans $ 827,400 $ 795,003 $ 781,855 $ 773,829 $ 771,234
Interest on mortgage-backed securities 54,612 60,246 67,939 78,915 92,376
Interest and dividends on investments 20,689 21,637 21,529 24,690 22,940
------------- ------------- ------------- ------------- ------------
902,701 876,886 871,323 877,434 886,550
Interest Expense
Interest on deposits 219,104 232,789 236,128 250,102 269,678
Interest on advances 66,956 63,181 69,715 69,941 83,933
Interest on repurchase agreements 5,888 1,878 13 1,269 495
Interest on other borrowings 26,061 25,708 23,846 27,381 29,768
------------- ------------- ------------- ------------- ------------
318,009 323,556 329,702 348,693 383,874
------------- ------------- ------------- ------------- ------------
Net Interest Income 584,692 553,330 541,621 528,741 502,676
Provision for loan losses 1,802 2,082 3,501 4,479 961
------------- ------------- ------------- ------------- ------------
Net Interest Income after Provision for
Loan Losses 582,890 551,248 538,120 524,262 501,715
Noninterest Income
Fees 41,183 45,692 41,920 34,511 37,264
Gain on the sale of securities, MBS and
loans 9,787 25,972 21,192 15,323 18,323
Change in fair value of derivatives 2,251 2,993 2,793 2,853 2,707
Other 19,377 16,083 17,025 14,375 9,547
------------- ------------- ------------- ------------- ------------
72,598 90,740 82,930 67,062 67,841
Noninterest Expense (a)
General and administrative:
Personnel 122,293 115,499 110,688 104,996 99,544
Occupancy 19,886 19,286 18,988 18,489 17,902
Technology and telecommunications 19,142 18,600 20,055 20,904 20,153
Deposit insurance 1,678 1,732 1,652 1,621 1,530
Advertising 5,985 5,240 5,314 5,977 5,617
Other 23,588 20,696 20,483 17,723 18,953
------------- ------------- ------------- ------------- ------------
192,572 181,053 177,180 169,710 163,699
Earnings before Taxes on Income 462,916 460,935 443,870 421,614 405,857
Taxes on Income 172,261 178,029 171,397 161,549 156,486
------------- ------------- ------------- ------------- ------------
Net Earnings $ 290,655 $ 282,906 $ 272,473 $ 260,065 $ 249,371
============= ============= ============= ============= ============
Basic Earnings Per Share $ 1.91 $1.86 $1.79 $ 1.70 $ 1.62
============= ============= ============= ============= ============
Diluted Earnings Per Share $ 1.88 $1.83 $1.76 $ 1.67 $ 1.60
============= ============= ============= ============= ============
Average common shares outstanding 152,001,578 152,180,798 152,582,771 153,347,780 153,511,006
Average diluted common shares outstanding 154,830,609 154,810,821 155,091,780 155,851,663 155,688,363
Ratios: (b)
Net earnings / average stockholder's
equity 20.09% 20.48% 20.50% 20.32% 20.33%
Net earnings / average assets 1.47% 1.53% 1.53% 1.50% 1.49%
Net interest margin (c) 3.01% 3.07% 3.13% 3.14% 3.10%
General and administrative expense /
average assets .97% .98% .99% .98% .98%
Efficiency ratio (d) 29.30% 28.11% 28.37% 28.48% 28.69%
(a) Certain reclassifications have been made to prior period expense categories to conform to the current period presentation,
which includes a separate category for "Technology and telecommunications".
(b) 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.
(c) Net interest margin is net interest income divided by average earning assets.
(d) Efficiency ratio is general and administrative expense divided by the sum of net interest income and noninterest income.