<ARTICLE> 9 <CIK> 0000046267 <NAME> HAWTHORNE FINANCIAL CORPORATION <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 45,449 <INT-BEARING-DEPOSITS> 986,657 <FED-FUNDS-SOLD> 0 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 0 <INVESTMENTS-CARRYING> 0 <INVESTMENTS-MARKET> 0 <LOANS> 1,326,791 <ALLOWANCE> 17,111 <TOTAL-ASSETS> 1,412,434 <DEPOSITS> 1,019,450 <SHORT-TERM> 0 <LIABILITIES-OTHER> 7,560 <LONG-TERM> 304,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 52 <OTHER-SE> 81,372 <TOTAL-LIABILITIES-AND-EQUITY> 1,412,434 <INTEREST-LOAN> 102,213 <INTEREST-INVEST> 4,779 <INTEREST-OTHER> 0 <INTEREST-TOTAL> 106,992 <INTEREST-DEPOSIT> 47,642 <INTEREST-EXPENSE> 61,874 <INTEREST-INCOME-NET> 45,118 <LOAN-LOSSES> 7,135 <SECURITIES-GAINS> 0 <EXPENSE-OTHER> 28,802 <INCOME-PRETAX> 15,712 <INCOME-PRE-EXTRAORDINARY> 11,038 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 11,038 <EPS-PRIMARY> 2.64 <EPS-DILUTED> 1.65 <YIELD-ACTUAL> 9.06 <LOANS-NON> 47,683 <LOANS-PAST> 13,832 <LOANS-TROUBLED> 34,276 <LOANS-PROBLEM> 45,397 <ALLOWANCE-OPEN> 13,274 <CHARGE-OFFS> 3,298 <RECOVERIES> 0 <ALLOWANCE-CLOSE> 17,111 <ALLOWANCE-DOMESTIC> 17,111 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 0