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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): April 20, 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 First Quarter 2004 Earnings Press Release
99.2 March 2004 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: April 22, 2004
/s/ Russell W. Kettell
-------------------------------------------
Russell W. Kettell
President and
Chief Financial Officer
April 20, 2004
Exhibit 99.1
FOR FURTHER INFORMATION CONTACT FOR IMMEDIATE RELEASE
William C. Nunan, Group Senior Vice President
Telephone: (510) 446-3614
April 20, 2004
GOLDEN WEST REPORTS RECORD FIRST QUARTER EARNINGS
AND LOAN ORIGINATIONS
Oakland, California: Golden West Financial Corporation, parent of World Savings
Bank, announced record diluted earnings per share of $1.93 for the first three
months of 2004, up 16% from the $1.67 reported during the same period in 2003.
The Company also reported all-time high first quarter mortgage originations of
$9.4 billion, up from $6.9 billion one year earlier.
In discussing the Company's year-over-year quarterly results, Herbert M.
Sandler, Chairman of the Board and Chief Executive Officer of Golden West,
remarked, "Our loan volume in the first quarter of 2004 was 35% higher than in
the same period of 2003, in large part because of the desirability of our
primary product, the adjustable rate mortgage or ARM. ARMs were attractive
because the rates on these loans were even less than the more traditional
fixed-rate mortgage." Sandler added, "Golden West's growth is especially
noteworthy, since early indications are that first quarter mortgage originations
in the U.S. market as a whole were considerably lower than in 2003."
Continuing his quarterly comparisons, Sandler said, "The record loan volume we
generated in the first three months of 2004 far exceeded the payoffs of our
existing mortgages. As a result, our loan portfolio, which is our primary
earning asset, grew $4.8 billion, or at a 24% annualized rate." He further
noted, "Rapid expansion is nothing new. Since the first quarter of last year,
the Company's loan balances have increased 24%, providing impetus for earnings
growth."
Wrapping up his comments on the Company's lending results, Sandler pointed out,
"It is important to note that during the first quarter 98% of Golden West's new
originations consisted of adjustable rate loans, up from 91% a year ago. This
increase is significant, because ARMs help limit the exposure of our earnings to
swings in interest rates."
Moving to the subject of general and administrative expenses (G&A), Sandler
said, "In keeping with the Company's long-standing emphasis on cost control, our
numbers remained among the lowest in the financial services industry." Golden
West's ratio of G&A to average assets was .95% in the first three months of
2004, down from .98% one year earlier. Sandler continued, "While average assets
grew 21% from the first quarter of last year, our G&A expenses rose only 18%. As
you would expect, a large portion of the spending increase was used to support
record loan volume. The additional 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."
Touching on an additional earnings related topic, Sandler stated, "Tax expense
was lowered $5.8 million in the first quarter by a reduction in the Company's
combined state tax rate, which included a $3.8 million decrease in deferred
state taxes."
Switching to the topic of loan quality, Sandler explained, "A key measurement of
the success of our credit risk management is the ratio of nonperforming assets
and troubled debt restructured to total assets." At March 31, 2004 Golden West's
ratio was .48%, down from .63% one year earlier. "As our low percentage
indicates, we remain committed to originating high-quality mortgages in order to
minimize credit risk."
In other first quarter news, Golden West reported retail deposit growth of $657
million, down from $2.5 billion one year earlier. Commenting on the Company's
results, Sandler stated, "A strong stock market together with the low rates
being offered on savings accounts have caused savers to look at other investment
opportunities. As a result, deposit inflows have slowed from the high levels
experienced in 2002 and 2003."
Finally, the Company reported that during the first quarter World Savings Bank,
Golden West's primary operating subsidiary, successfully brought to market $1.0
billion of floating-rate notes, the first debt issuance by either Golden West or
World Savings since the third quarter of 2002. Sandler commented that, "Issuing
this debt, which consisted of $700 million of two-year notes and $300 million of
five-year notes, provided an additional source of funds to support the growth of
our loan portfolio."
Headquartered in Oakland, California, Golden West is one of the nation's largest
financial institutions with assets over $85 billion as of March 31, 2004. The
Company opened its first savings branch in New York state during the first
quarter and now operates 492 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
March 31
-------------------------------
2004 2003
-------------- -------------
Interest Income
Interest on loans $ 878,816 $ 773,829
Interest on mortgage-backed securities 43,677 78,915
Interest and dividends on investments 17,264 24,690
-------------- -------------
939,757 877,434
Interest Expense
Interest on deposits 215,900 250,102
Interest on advances 73,038 69,941
Interest on repurchase agreements 6,922 1,269
Interest on other borrowings 24,643 27,381
-------------- -------------
320,503 348,693
-------------- -------------
Net Interest Income 619,254 528,741
Provision for loan losses 241 4,479
-------------- -------------
Net Interest Income after Provision for 619,013
Loan Losses 524,262
Noninterest Income
Fees 40,674 34,511
Gain on the sale of securities, MBS and
loans 2,962 15,323
Change in fair value of derivatives 1,082 2,853
Other 15,089 14,375
-------------- -------------
59,807 67,062
Noninterest Expense
General and administrative:
Personnel 130,998 104,996
Occupancy 20,394 18,489
Technology and telecommunications 21,019 20,904
Deposit insurance 1,770 1,621
Advertising 5,256 5,977
Other 20,077 17,723
-------------- -------------
199,514 169,710
Earnings before Taxes on Income 479,306 421,614
Taxes on Income 179,582 161,549
-------------- -------------
Net Earnings $ 299,724 $ 260,065
============== =============
Basic Earnings Per Share $1.97 $ 1.70
============== =============
Diluted Earnings Per Share $1.93 $ 1.67
============== =============
Average common shares outstanding 152,273,637 153,347,780
Average diluted common shares outstanding 155,040,581 155,851,663
Ratios: (a)
Net earnings / average stockholders' equity 19.65% 20.32%
Net earnings / average assets 1.42% 1.50%
Net interest margin (b) 2.99% 3.14%
General and administrative expense /
average assets .95% .98%
Efficiency ratio (c) 29.38% 28.48%
(a) 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 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
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
AND OTHER FINANCIAL DATA
(Unaudited)
(Dollars in thousands except per share figures)
Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
2004 2003 2003 2003 2003
------------ ------------ ----------- ----------- -----------
ASSETS
Cash $ 248,710 $ 260,823 $ 219,000 $ 267,960 $ 305,998
Securities available for sale at fair value 1,123,463 1,879,443 950,329 604,998 618,377
Purchased mortgage-backed securities
available for sale at fair value 19,895 22,071 24,824 27,524 31,727
Purchased mortgage-backed securities
held to maturity at cost 437,580 433,319 425,741 106,098 132,654
Mortgage-backed securities with recourse
held to maturity at cost (a) 2,342,210 3,650,048 4,078,140 4,667,649 5,281,816
Loans held for sale 157,666 124,917 324,297 502,308 473,303
Loans held in portfolio less allowance for
loan losses (a) 80,121,686 74,080,661 68,096,299 63,991,745 61,138,534
------------ ------------ ----------- ----------- -----------
Total Loans Receivable and Mortgage-Backed 83,079,037 78,311,016 72,949,301 69,295,324 67,058,034
Securities
Interest earned but uncollected 191,475 183,761 179,091 198,639 191,377
Investment in capital stock of Federal Home
Loan Banks at cost which approximates
fair value 1,203,589 1,152,339 1,142,582 1,132,714 1,121,798
Foreclosed real estate 13,348 13,904 16,838 11,027 11,362
Premises and equipment, net 367,579 360,327 355,955 355,042 356,301
Other assets 377,570 388,277 344,744 332,321 340,256
------------ ------------ ----------- ----------- -----------
$ 86,604,771 $ 82,549,890 $76,157,840 $72,198,025 $70,003,503
============ ============ =========== =========== ===========
LIABILITIES and
STOCKHOLDERS' EQUITY
Deposits $ 47,383,623 $ 46,726,965 $46,145,048 $44,385,717 $43,503,235
Advances from Federal Home Loan Banks 24,805,930 22,000,234 19,689,871 19,927,189 18,882,322
Securities sold under agreements to repurchase 2,672,049 3,021,385 721,639 21,247 21,988
Federal funds purchased 0 0 300,000 265,000 200,000
Bank notes 2,504,917 3,015,854 1,489,946 99,990 0
Senior debt 1,989,944 991,257 990,862 990,467 990,076
Subordinated notes 0 0 200,000 199,955 199,911
Taxes on income 627,431 561,406 580,969 533,122 615,978
Other liabilities 377,018 285,521 404,258 363,584 396,322
Stockholders' equity 6,243,859 5,947,268 5,635,247 5,411,754 5,193,671
------------ ------------ ----------- ----------- -----------
$86,604,771 $82,549,890 $76,157,840 $72,198,025 $70,003,503
============ ============ =========== =========== ===========
Book value per common share $ 40.95 $ 39.10 $ 37.10 $ 35.50 $ 34.00
Common shares outstanding 152,492,139 152,119,108 151,900,958 152,451,133 152,774,708
(a) During the first quarter of 2004, the Company desecuritized $1 billion of Mortgage-backed securities with recourse held to
maturity and the underlying loans were transferred to the loan portfolio.
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands except per share figures)
For the Quarter Ended
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Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
2004 2003 2003 2003 2003
-------------- -------------- -------------- -------------- --------------
Net interest income $ 619,254 $ 584,692 $ 553,330 $ 541,621 $ 528,741
Provision for loan losses 241 1,802 2,082 3,501 4,479
Noninterest income 59,807 72,598 90,740 82,930 67,062
Noninterest expense 199,514 192,572 181,053 177,180 169,710
-------------- -------------- -------------- -------------- --------------
Earnings before taxes on income 479,306 462,916 460,935 443,870 421,614
Taxes on income 179,582 172,261 178,029 171,397 161,549
-------------- -------------- -------------- -------------- --------------
Net earnings $ 299,724 $ 290,655 $ 282,906 $ 272,473 $ 260,065
============== ============== ============== ============== ==============
Basic EPS $ 1.97 $ 1.91 $ 1.86 $ 1.79 $ 1.70
Diluted EPS $ 1.93 $ 1.88 $ 1.83 $ 1.76 $ 1.67
Average common shares outstanding 152,273,637 152,001,578 152,180,798 152,582,771 153,347,780
Average diluted common shares outstanding 155,040,581 154,830,609 154,810,821 155,091,780 155,851,663
Number of shares repurchased and retired 0 0 630,000 486,975 839,395
Cost of shares repurchased $ 0 $ 0 $ 53,407 $ 37,086 $ 60,737
Remaining number of shares authorized for
repurchase 9,328,179 9,328,179 9,328,179 9,958,179 10,445,154
Ratios: (a)
Net earnings / average stockholders'
equity (ROE) 19.65% 20.09% 20.48% 20.50% 20.32%
Net earnings / average assets (ROA) 1.42% 1.47% 1.53% 1.53% 1.50%
Net interest margin (b) 2.99% 3.01% 3.07% 3.13% 3.14%
General and administrative expense /
average assets .95% .97% .98% .99% .98%
Efficiency ratio (c) 29.38% 29.30% 28.11% 28.37% 28.48%
Loan loss reserve $ 289,351 $ 289,937 $ 288,949 $ 287,868 $ 284,673
Net loan chargeoffs $ 827 $ 814 $ 1,001 $ 306 $ 903
Stockholders' equity / total assets 7.21% 7.20% 7.40% 7.50% 7.42%
Total deposit net activity $ 656,658 $ 581,917 $ 1,759,331 $ 882,482 $ 2,464,438
(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
--------------------------------------------------------------------------------------
Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31
2004 2003 2003 2003 2003
-------------- -------------- -------------- -------------- --------------
AVERAGE BALANCES (a)
Cash and investments $ 1,641,994 $ 1,409,734 $ 1,275,081 $ 1,099,522 $ 1,331,028
Loans receivable and mortgage-backed
securities 80,498,053 75,544,443 70,888,271 68,162,253 65,949,782
Investment in capital stock of Federal Home
Loan Banks 1,165,153 1,146,948 1,137,138 1,126,629 1,097,405
Deposits 47,029,050 46,448,866 45,314,936 43,891,768 42,339,391
Advances from Federal Home Loan Banks 23,231,041 20,642,344 19,417,796 19,765,434 18,598,691
Securities sold under agreements to
repurchase 2,558,780 1,921,788 522,116 21,557 372,164
Other borrowings 4,351,662 3,219,452 2,399,344 1,331,453 2,085,239
Stockholders' equity 6,100,369 5,787,207 5,525,243 5,315,729 5,118,183
Total Average Assets 84,252,424 79,029,081 74,194,553 71,279,693 69,428,026
Average Earning Assets 82,963,346 77,773,138 72,951,855 70,035,195 68,047,446
Average Interest-Bearing Liabilities 77,170,533 72,232,450 67,654,192 65,010,212 63,395,485
LOAN BALANCE AND ACTIVITY
Loans receivable and mortgage-backed
securities $ 83,079,037 $ 78,311,016 $ 72,949,301 $ 69,295,324 $ 67,058,034
Adjustable rate loans receivable and
mortgage-backed securities 79,889,765 75,238,723 69,528,396 66,078,182 63,915,960
New real estate loans originated $ 9,393,862 $ 10,905,670 $ 10,092,199 $ 8,044,095 $ 6,942,757
New adjustable rate mortgages as a
percentage of new real estate loans
originated 98% 98% 93% 91% 91%
New refinanced mortgages as a percentage of
new real estate loans originated 72% 70% 70% 70% 72%
LOANS SOLD AND SERVICED DATA
Loan sales $ 131,589 $ 401,091 $ 1,117,899 $ 894,345 $ 804,541
Loans serviced for others 5,438,165 5,764,986 5,886,668 5,653,002 5,566,570
Balance of capitalized mortgage servicing
rights 82,503 88,967 92,098 82,060 74,192
NONPERFORMING ASSETS
Loans and MBS 90 days or more past due $ 399,904 $ 410,064 $ 409,001 $ 436,595 $ 432,479
Foreclosed real estate 13,348 13,904 16,838 11,027 11,362
------------ ------------ ------------ ------------ ------------
Total nonperforming assets $ 413,252 $ 423,968 $ 425,839 $ 447,622 $ 443,841
============ ============ ============ ============ ============
Ratio of nonperforming assets (NPAs) to total
assets .48% .51% .56% .62% .63%
Ratio of troubled debt restructured (TDRs) to
total assets .01% .00% .00% .00% .00%
Ratio of NPAs and TDRs to total assets .48% .51% .56% .62% .63%
SPREAD DATA
Yield on loan portfolio 4.58% 4.61% 4.73% 4.92% 5.08%
Yield on interest-earning investments 1.05% .93% 1.10% 1.27% 1.39%
Yield on interest-earning assets 4.55% 4.54% 4.70% 4.90% 5.07%
Cost of deposits 1.85% 1.85% 1.95% 2.12% 2.25%
Cost of borrowings 1.32% 1.37% 1.45% 1.58% 1.67%
Cost of funds 1.63% 1.67% 1.78% 1.94% 2.06%
Yield on interest-earning assets less cost of
funds (Primary Spread) 2.92% 2.87% 2.92% 2.96% 3.01%
(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
April 20, 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 March 31,
2004.
Headquartered in Oakland, California, Golden West is one of the nation's largest
financial institutions with assets over $85 billion as of March 31, 2004. The
Company currently operates 492 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
March 2003 - March 2004
(Dollars in millions)
2004 2003
-------------------------------------- --------------------------------------------------
MAR FEB JAN DEC NOV OCT SEP
----------- ------------ ----------- ----------- ----------- ----------- -----------
Total Assets $ 86,605 $ 84,945 $ 82,910 $ 82,550 $ 79,661 $ 77,748 $ 76,158
Cash and Investments $ 1,372 $ 1,839 $ 1,216 $ 2,140 $ 1,285 $ 1,045 $ 1,169
Loans and MBS $ 83,079 $ 81,003 $ 79,600 $ 78,311 $ 76,272 $ 74,645 $ 72,949
Adjustable Rate Mortgages and MBS $ 79,890 $ 78,042 $ 76,769 $ 75,239 $ 73,222 $ 71,521 $ 69,528
Loans Originated - Month $ 3,839 $ 2,690 $ 2,865 $ 3,761 $ 3,276 $ 3,869 $ 3,698
Percentage ARMs - Month 98% 98% 98% 98% 98% 98% 97%
Percentage Refinances - Month 72% 74% 71% 71% 70% 69% 67%
Loans Originated - YTD $ 9,394 $ 5,555 $ 2,865 $ 35,985 $ 32,224 $ 28,948 $ 25,079
Percentage ARMs - YTD 98% 98% 98% 94% 93% 92% 92%
Percentage Refinances - YTD 72% 72% 71% 70% 70% 70% 71%
Total Deposits $ 47,384 $ 47,131 $ 46,875 $ 46,727 $ 46,489 $ 46,434 $ 46,145
Total Deposit Net Activity - Month $ 253 $ 256 $ 148 $ 238 $ 55 $ 289 $ 384
Total Deposit Net Activity - YTD $ 657 $ 404 $ 148 $ 5,688 $ 5,450 $ 5,395 $ 5,106
Federal Home Loan Bank Borrowings $ 24,806 $ 24,110 $ 22,008 $ 22,000 $ 20,689 $ 20,190 $ 19,690
Other Borrowings:
Reverse Repurchases 2,672 1,971 2,571 3,021 2,572 1,372 722
Federal Funds Purchased 0 0 0 0 0 100 300
Bank Notes 2,505 3,509 3,413 3,016 1,971 1,837 1,490
Senior Debt 1,990 992 991 991 991 991 991
Subordinated Notes 0 0 0 0 0 0 200
----------- ------------ ----------- ----------- ----------- ----------- -----------
Total Borrowings $ 31,973 $ 30,582 $ 28,983 $ 29,028 $ 26,223 $ 24,490 $ 23,393
=========== ============ =========== =========== =========== =========== ===========
Yield on Loan Portfolio 4.58% 4.61% 4.60% 4.61% 4.64% 4.68% 4.73%
Yield on Interest-Earning Investments 1.05 1.05 1.04 .93 1.03 1.04 1.10
----------- ------------ ----------- ----------- ----------- ----------- -----------
Combined Yield on Interest-Earning Assets 4.55% 4.56% 4.57% 4.54% 4.61% 4.65% 4.70%
Cost of Deposits 1.85% 1.85% 1.85% 1.85% 1.86% 1.87% 1.95%
Cost of Federal Home Loan Bank Borrowings 1.23 1.25 1.28 1.28 1.28 1.28 1.27
Cost of Other Borrowings 1.64 1.68 1.66 1.66 1.80 1.97 2.38
----------- ------------ ----------- ----------- ----------- ----------- -----------
Combined Cost of Funds 1.63% 1.65% 1.67% 1.67% 1.69% 1.71% 1.78%
----------- ------------ ----------- ----------- ----------- ----------- -----------
Net Interest Rate Spread (Primary Spread) 2.92% 2.91% 2.90% 2.87% 2.92% 2.94% 2.92%
=========== ============ =========== =========== =========== =========== ===========
Loans Sold $ 51 $ 31 $ 50 $ 113 $ 83 $ 205 $ 231
Loan and MBS Repayments and Payoffs - Month $ 1,949 $ 1,401 $ 1,323 $ 1,717 $ 1,543 $ 1,845 $ 1,918
As a % of Prior Month Loan Balances
(Annualized) 28.87% 21.13% 20.28% 27.02% 24.81% 30.35% 32.30%
Nonperforming Assets and Troubled Debt
Restructured as a % of Total Assets .48% .52% .52% .51% .52% .54% .56%
Page 1 of 2
GOLDEN WEST FINANCIAL CORPORATION AND SUBSIDIARIES
MONTHLY FINANCIAL HIGHLIGHTS
March 2003 - March 2004
(Dollars in millions)
2003
--------------------------------------------------------------------------------
AUG JUL JUN MAY APR MAR
------------ ------------ ------------- ----------- ------------ ------------
Total Assets $ 75,028 $ 73,395 $ 72,198 $ 72,059 $ 70,859 $ 70,004
Cash and Investments $ 1,693 $ 1,365 $ 873 $ 1,570 $ 1,031 $ 924
Loans and MBS $ 71,270 $ 70,038 $ 69,295 $ 68,474 $ 67,821 $ 67,058
Adjustable Rate Mortgages and MBS $ 67,843 $ 66,868 $ 66,078 $ 65,318 $ 64,633 $ 63,916
Loans Originated - Month $ 3,237 $ 3,157 $ 2,786 $ 2,606 $ 2,652 $ 2,531
Percentage ARMs - Month 92% 90% 92% 91% 90% 91%
Percentage Refinances - Month 71% 71% 70% 70% 71% 71%
Loans Originated - YTD $ 21,381 $ 18,144 $ 14,987 $ 12,201 $ 9,595 $ 6,943
Percentage ARMs - YTD 91% 91% 91% 90% 90% 91%
Percentage Refinances - YTD 71% 71% 71% 71% 72% 72%
Total Deposits $ 45,761 $ 44,968 $ 44,386 $ 44,083 $ 43,595 $ 43,503
Total Deposit Net Activity - Month $ 793 $ 582 $ 303 $ 488 $ 92 $ 795
Total Deposit Net Activity - YTD $ 4,722 $ 3,929 $ 3,347 $ 3,044 $ 2,556 $ 2,464
Federal Home Loan Bank Borrowings $ 19,131 $ 18,923 $ 19,927 $ 20,374 $ 19,878 $ 18,882
Other Borrowings:
Reverse Repurchases 623 723 21 22 21 22
Federal Funds Purchased 0 0 265 0 0 200
Bank Notes 1,590 1,090 100 0 0 0
Senior Debt 991 991 990 990 990 990
Subordinated Notes 200 200 200 200 200 200
------------ ------------ ------------- ----------- ------------ ------------
Total Borrowings $ 22,535 $ 21,927 $ 21,503 $ 21,586 $ 21,089 $ 20,294
============ ============ ============= =========== ============ ============
Yield on Loan Portfolio 4.80% 4.86% 4.92% 4.96% 5.02% 5.08%
Yield on Interest-Earning Investments 1.03 1.06 1.27 1.30 1.34 1.39
------------ ------------ ------------- ----------- ------------ ------------
Combined Yield on Interest-Earning Assets 4.74% 4.81% 4.90% 4.91% 5.00% 5.07%
Cost of Deposits 2.03% 2.06% 2.12% 2.14% 2.17% 2.25%
Cost of Federal Home Loan Bank Borrowings 1.29 1.32 1.37 1.40 1.43 1.46
Cost of Other Borrowings 2.49 2.67 4.17 5.03 5.03 4.51
------------ ------------ ------------- ----------- ------------ ------------
Combined Cost of Funds 1.84% 1.88% 1.94% 1.97% 1.99% 2.06%
------------ ------------ ------------- ----------- ------------ ------------
Net Interest Rate Spread (Primary Spread) 2.90% 2.93% 2.96% 2.94% 3.01% 3.01%
============ ============ ============= =========== ============ ============
Loans Sold $ 431 $ 456 $ 336 $ 286 $ 272 $ 252
Loan and MBS Repayments and Payoffs - Month $ 1,920 $ 1,949 $ 1,728 $ 1,662 $ 1,681 $ 1,473
As a % of Prior Month Loan Balances (Annualized) 32.90% 33.75% 30.28% 29.41% 30.07% 26.72%
Nonperforming Assets and Troubled Debt
Restructured as a % of Total Assets .57% .60% .62% .63% .64% .63%
Page 2 of 2