EX-99 2 k121407_8kexhibit.htm 13-MONTH PRESS RELEASE 11/30/07 NEWS RELEASE reporting 13 month financial data for the period ended 11/30/07

Table of Contents

EXHIBIT 99.1

DOWNEY FINANCIAL CORP.

N E W S   R E L E A S E

For further information contact:
Brian E. Côté
Chief Financial Officer
(949) 509-4420

DOWNEY FINANCIAL CORP. ANNOUNCES THIRTEEN
MONTH SELECTED FINANCIAL DATA

          Newport Beach, California — December 14, 2007 — Downey Financial Corp. (NYSE: DSL) today released monthly selected financial data for the thirteen months ended November 30, 2007.

          Downey Financial Corp. is the parent company of Downey Savings and Loan Association, F.A., with assets of $13.5 billion and 168 branches throughout California and four in Arizona.

 

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Table of Contents

DOWNEY FINANCIAL CORP. AND SUBSIDIARIES
Monthly Selected Financial Data (Unaudited)

Nov. 30,

Oct. 31,

Sep. 30,

Aug. 31,

Jul. 31,

Jun. 30,

May 31,

Apr. 30,

Mar. 31,

Feb. 28,

Jan. 31,

Dec. 31,

Nov. 30,

(Dollars in Thousands)

2007

2007

2007

2007

2007

2007

2007

2007

2007

2007

2007

2006

2006


Balance sheet summary

Total assets

$13,535,656

$14,182,233

$14,417,717

$14,366,680

$14,657,661

$14,902,970

$15,001,085

$15,140,169

$15,237,869

$15,509,333

$15,785,578

$16,207,382

$16,496,149

Loans receivable held for investment, net

11,324,527

11,477,114

11,601,845

11,725,121

11,921,877

12,204,200

12,441,979

12,716,549

12,942,037

13,254,834

13,477,937

13,807,284

14,185,494

Loans held for sale, at lower of cost or fair value

79,245

104,265

90,228

94,912

145,190

187,752

232,917

309,782

267,862

249,983

315,785

363,215

357,666

MBS available for sale, at fair value

111

111

112

113

114

114

115

116

117

118

119

251

253

Cash, investment securities and FHLB stock

1,690,570

2,173,884

2,299,959

2,145,314

2,209,551

2,139,340

1,956,838

1,769,031

1,694,467

1,665,319

1,657,988

1,710,995

1,629,887

Deposits

10,612,031

10,616,627

10,662,618

10,804,339

11,005,347

11,246,806

11,292,781

11,405,411

11,647,431

11,553,635

11,619,776

11,784,869

11,777,977

FHLB advances and other borrowings

1,194,828

1,576,505

1,875,217

1,769,081

1,772,685

1,691,917

1,638,500

1,954,340

1,845,067

2,081,688

2,330,821

2,610,756

2,774,668

Senior notes

198,429

198,413

198,398

198,382

198,367

198,351

198,335

198,320

198,305

198,290

198,275

198,260

198,245

Non-performing assets as a % of total assets (a)

3.65

%

2.74

%

2.25

%

1.96

%

1.77

%

1.53

%

1.30

%

1.04

%

0.94

%

0.88

%

0.78

%

0.68

%

0.55

%

Loan activity for the month ended

Loans for investment portfolio:

Originations and purchases:

Residential one-to-four units

$98,410

$103,877

$165,724

$171,857

$94,681

$204,552

$236,340

$258,060

$238,848

$211,270

$152,780

$169,304

$173,038

All other

10,862

905

738

7,755

8,250

4,395

7,871

2,610

6,812

7,814

2,874

2,063

2,344

Repayments

(240,038

)

(231,005

)

(223,419

)

(370,405

)

(385,801

)

(453,893

)

(533,008

)

(503,098

)

(577,134

)

(468,436

)

(514,617

)

(576,823

)

(530,449

)

Loans for sale:

Originations and purchases

59,159

73,268

64,144

71,983

108,704

123,511

172,508

198,852

219,292

197,503

223,874

247,661

245,428

Sales

(84,441

)

(58,183

)

(66,137

)

(120,636

)

(150,547

)

(166,223

)

(247,338

)

(156,379

)

(200,424

)

(252,483

)

(261,523

)

(236,633

)

(252,738

)

Mortgage loans serviced for others

Total

$5,553,615

$5,608,891

$5,622,331

$5,743,797

$5,898,401

$6,002,907

$5,968,713

$6,004,347

$6,021,673

$6,094,132

$6,051,650

$5,908,233

$5,819,457

With capitalized mortgage servicing rights: (b)

Amount

2,429,506

2,418,279

2,419,432

2,418,387

2,409,926

2,383,290

2,374,452

2,345,736

2,348,060

2,356,824

2,350,553

2,394,754

2,349,285

Weighted average interest rate

5.86

%

5.85

%

5.83

%

5.81

%

5.80

%

5.79

%

5.79

%

5.78

%

5.77

%

5.75

%

5.75

%

5.75

%

5.73

%

Interest rate spread data (c)

Weighted average yield:

Loans and MBS

7.45

%

7.42

%

7.45

%

7.47

%

7.46

%

7.49

%

7.55

%

7.58

%

7.61

%

7.62

%

7.60

%

7.59

%

7.52

%

Investment securities (d)

5.23

5.41

5.50

5.52

5.51

5.45

5.34

5.37

5.37

5.38

5.38

5.38

5.34


Interest-earning assets yield

7.18

7.12

7.15

7.19

7.18

7.22

7.28

7.34

7.40

7.41

7.39

7.38

7.34


Weighted average cost:

Deposits

3.93

3.97

3.96

3.94

3.97

3.97

3.96

3.96

3.94

3.99

3.99

3.95

3.93

FHLB advances and other borrowings (e)

5.76

5.68

5.71

5.80

5.93

5.94

5.97

5.83

5.89

5.85

5.81

5.77

5.73

Senior notes

6.50

6.50

6.50

6.50

6.50

6.50

6.50

6.50

6.50

6.50

6.50

6.50

6.50


Combined funds cost

4.16

4.23

4.26

4.24

4.28

4.26

4.25

4.27

4.24

4.31

4.33

4.31

4.31


Interest rate spread

3.02

%

2.89

%

2.89

%

2.95

%

2.90

%

2.96

%

3.03

%

3.07

%

3.16

%

3.10

%

3.06

%

3.07

%

3.03

%


(a)  Includes the impact of real estate acquired in the settlement of loans that is being held and leased while waiting for a more favorable sales environment.
(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)  Excludes adjustments for non-accrual loans, amortization of net deferred costs to originate loans, premiums and discounts, prepayment and late fees and FHLB stock dividends.
(d)  Includes the yield on investment securities accounted for on a trade-date basis but for which interest income will not be recognized until settlement. Yields for securities available for sale are calculated using historical cost balances and are not adjusted for changes in fair value that are reflected as a separate component of stockholder's equity.
(e)  Includes the impact of interest rate swap contracts, with notional amounts of $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.

 

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