##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-Q




|  |                                                                                                                                             
|- | --------------------------------------------------------------------------------------------------------------------------------------------
|þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended
    June 30, 2005

or




|  |                                                                                                                                                         
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) 
     OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period
    from                     to

Commission file number 1-8972


INDYMAC BANCORP, INC.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                     
|------------------------------------------------------------------ |  | ------------------------------------
|Delaware                                                           |  | 95-3983415                          
|(State or other jurisdiction of incorporation or
    organization) |  | (I.R.S. Employer Identification No.)
|                                                                  
|155 North Lake Avenue, Pasadena, California                        |  | 91101-7211                          
|(Address of principal executive offices)                           |  | (Zip Code)                          

(Registrants telephone number, including area code)


(800) 669-2300


þ o


þ o














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##### Table of Contents



FORM 10-Q QUARTERLY REPORT


For the Period Ended June 30, 2005


TABLE OF CONTENTS







|                                                                                                      |                                       |                                                                                 |    |    |    | 
|----------------------------------------------------------------------------------------------------- | ------------------------------------- | ------------------------------------------------------------------------------- | -- | -- | -- | 
|                                                                                                      |                                       | Page                                                                            |   
|                                                                                                      |                                       |                                                                                 |   
|PART I. FINANCIAL INFORMATION                                                                        
|Forward-Looking Statements                                                                            |                                       |                                                                                 | 3  |   
|Item 2. Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations |                                       |                                                                                 | 3  |   
|Highlights for the Quarter                                                                            |                                       |                                                                                 | 3  |   
|Overall Results                                                                                       |                                       |                                                                                 | 5  |   
|Our Business                                                                                          |                                       |                                                                                 | 6  |   
|                                                                                                      | Mortgage Banking                      |                                                                                 |    | 25 |   
|                                                                                                      |                                       | Loan Production                                                                 |    |    | 25 | 
|                                                                                                      |                                       | Mortgage Production by Division                                                 |    |    | 28 | 
|                                                                                                      |                                       | Loan Sales                                                                      |    |    | 30 | 
|                                                                                                      |                                       | Mortgage Servicing and Mortgage Servicing
    Rights                            |    |    | 34 | 
|                                                                                                      |                                       | AAA-Rated Agency Interest-Only, Prepayment
    Penalty and Residuals Securities |    |    | 35 | 
|                                                                                                      |                                       | Other Investment Grade and Non-Investment
    Grade Securities                  |    |    | 36 | 
|                                                                                                      |                                       | Valuation of Servicing-Related Assets                                           |    |    | 37 | 
|                                                                                                      |                                       | Hedging Interest Rate Risk on
    Servicing-Related Assets                      |    |    | 38 | 
|                                                                                                      | Thrift                                |                                                                                 |    | 39 |   
|                                                                                                      |                                       | SFR Mortgage Loans Held for Investment                                          |    |    | 40 | 
|                                                                                                      |                                       | Mortgage-Backed Securities                                                      |    |    | 41 | 
|                                                                                                      |                                       | Construction Lending                                                            |    |    | 42 | 
|                                                                                                      |                                       | HELOC Portfolio                                                                 |    |    | 44 | 
|                                                                                                      | Net Interest Income                   |                                                                                 |    | 45 |   
|                                                                                                      | Overall Interest Rate Risk Management |                                                                                 |    | 48 |   
|                                                                                                      | Credit Risk and Reserves              |                                                                                 |    | 49 |   
|                                                                                                      | Secondary Market Reserves             |                                                                                 |    | 52 |   
|                                                                                                      | Operating Expenses                    |                                                                                 |    | 53 |   
|                                                                                                      | Dividend                              |                                                                                 |    | 54 |   
|                                                                                                      | Share Repurchase Activities           |                                                                                 |    | 54 |   
|                                                                                                      | Future Outlook                        |                                                                                 |    | 54 |   
|Liquidity and Capital Resources                                                                       |                                       |                                                                                 | 55 |   
|                                                                                                      | Overview                              |                                                                                 |    | 55 |   
|                                                                                                      | Principal Sources of Cash             |                                                                                 |    | 55 |   
|                                                                                                      | Principal Uses of Cash                |                                                                                 |    | 58 |   
|                                                                                                      | Accumulated Other Comprehensive Loss  |                                                                                 |    | 58 |   
|                                                                                                      | Regulatory Capital Requirements       |                                                                                 |    | 58 |   
|Off-Balance Sheet Arrangements                                                                        |                                       |                                                                                 | 59 |   
|Aggregate Contractual Obligations                                                                     |                                       |                                                                                 | 60 |   
|Key Operating Risks                                                                                   |                                       |                                                                                 | 61 |   
|                                                                                                      | Interest Rate Risk                    |                                                                                 |    | 61 |   
|                                                                                                      | Valuation Risk                        |                                                                                 |    | 61 |   
|                                                                                                      | Credit Risk                           |                                                                                 |    | 61 |   

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|                                                                        |                                                                              |      |    |    | 
|----------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ---- | -- | -- | 
|                                                                        |                                                                              | Page |   
|                                                                        |                                                                              |      |   
|                                                                        | Liquidity Risk                                                               |      |    | 62 | 
|                                                                        | Cyclical Industry                                                            |      |    | 62 | 
|                                                                        | Competition                                                                  |      |    | 62 | 
|                                                                        | Laws and Regulations                                                         |      |    | 62 | 
|                                                                        | Geographic Concentration                                                     |      |    | 63 | 
|                                                                        | Business Execution and Technology Risk                                       |      |    | 63 | 
|Critical Accounting Policies and
    Judgments                          |                                                                              |      | 63 |   
|Item 3. Quantitative and
    Qualitative Disclosures About Market Risk  |                                                                              |      | 63 |   
|Item 1. Financial Statements
    (Unaudited)                            |                                                                              |      | 64 |   
|                                                                        | Consolidated Balance Sheets                                                  |      |    | 64 | 
|                                                                        | Consolidated Statements of Earnings                                          |      |    | 66 | 
|                                                                        | Consolidated Statements of
    Shareholders Equity and Comprehensive Income |      |    | 67 | 
|                                                                        | Consolidated Statements of Cash Flows                                        |      |    | 68 | 
|                                                                        | Notes to Consolidated Financial
    Statements                               |      |    | 69 | 
|Item 4. Controls and
    Procedures                                     |                                                                              |      | 76 |   
|                                                                       
|PART II. OTHER INFORMATION                                             
|Item 1. Legal Proceedings                                               |                                                                              |      | 76 |   
|Item 2. Unregistered Sales of
    Equity Securities and Use of Proceeds |                                                                              |      | 76 |   
|Item 4. Submission of Matters to a
    Vote of Security Holders         |                                                                              |      | 77 |   
|Item 6. Exhibits                                                        |                                                                              |      | 77 |   
|Exhibit 10.1                                                           
|Exhibit 10.2                                                           
|Exhibit 10.3                                                           
|Exhibit 31.1                                                           
|Exhibit 31.2                                                           
|Exhibit 32.1                                                           
|Exhibit 32.2                                                           



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FORWARD-LOOKING STATEMENTS











|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS




HIGHLIGHTS FOR THE QUARTER




|                     |                                                     |                                              |   |       |                  |  |   |           |        |  |          |       |        |          |   |       |        |  |   |       |        | 
|-------------------- | --------------------------------------------------- | -------------------------------------------- | - | ----- | ---------------- |  | - | --------- | ------ |  | -------- | ----- | ------ | -------- | - | ----- | ------ |  | - | ----- | ------ | 
|                     |                                                     | Three Months Ended                           |   |       | Six Months Ended | 
|                     |                                                     |                                              |   |       |                  | 
|                     |                                                     | June 30,                                     |   |       | June 30,         |  |   | March 31, |        |  | June 30, |       |        | June 30, |  
|                     |                                                     | 2005                                         |   |       | 2004(1)          |  |   | 2005      |        |  | 2005     |       |        | 2004(1)  |  
|                     |                                                     |                                              |   |       |                  |  |   |           |        |  |          |       |        |          |  
|                     |                                                     | (Dollars in millions, except per share data) |  
|Income Statement     |                                                     |                                              |   |       |                  |  |   |           |        |  |          |       |        |          |   |       |        |  |   |      
|                     | Net interest income after provision for loan losses |                                              | $ | 94    |                  |  | $ | 104       |        |  | $        | 102   |        |          | $ | 196   |        |  | $ | 196   |       
|                     | Gain on sale of loans                               |                                              |   | 159   |                  |  |   | 118       |        |  |          | 144   |        |          |   | 304   |        |  |   | 202   |       
|                     | Other income                                        |                                              |   | 35    |                  |  |   | (24       | )      |  |          | 7     |        |          |   | 42    |        |  |   | (26   | )     
|                     | Net revenues                                        |                                              |   | 289   |                  |  |   | 198       |        |  |          | 253   |        |          |   | 542   |        |  |   | 372   |       
|                     | Operating expenses                                  |                                              |   | 151   |                  |  |   | 108       |        |  |          | 145   |        |          |   | 296   |        |  |   | 212   |       
|                     | Net earnings                                        |                                              |   | 83    |                  |  |   | 55        |        |  |          | 65    |        |          |   | 149   |        |  |   | 96    |       
|                     | Basic earnings per share                            |                                              |   | 1.33  |                  |  |   | 0.94      |        |  |          | 1.06  |        |          |   | 2.40  |        |  |   | 1.68  |       
|                     | Diluted earnings per share                          |                                              | $ | 1.26  |                  |  | $ | 0.90      |        |  | $        | 1.01  |        |          | $ | 2.28  |        |  | $ | 1.60  |       
|Other Per Share Data |                                                     |                                              |   |       |                  |  |   |           |        |  |          |       |        |          |   |       |        |  |   |      
|                     | Dividends declared per share                        |                                              | $ | 0.38  |                  |  | $ | 0.30      |        |  | $        | 0.36  |        |          | $ | 0.74  |        |  | $ | 0.55  |       
|                     | Book value per share at end of quarter              |                                              |   | 22.12 |                  |  |   | 19.35     |        |  |          | 21.28 |        |          |   | 22.12 |        |  |   | 19.35 |       
|                     | Closing price per share                             |                                              | $ | 40.73 |                  |  | $ | 31.60     |        |  | $        | 34.00 |        |          | $ | 40.73 |        |  | $ | 31.60 |       
|                     | Average Common Shares (in thousands)                |                                              |   |       |                  |  |   |           |        |  |          |       |        |          |   |       |        |  |   |       |       
|                     |                                                     | Basic                                        |   |       | 62,304           |  |   |           | 58,137 |  |          |       | 61,798 |          |   |       | 62,052 |  |   |       | 57,548 | 
|                     |                                                     | Diluted                                      |   |       | 65,799           |  |   |           | 60,588 |  |          |       | 64,763 |          |   |       | 65,281 |  |   |       | 60,180 | 

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|                                       |                                                                                 |                                              |   |        |                  |  |   |           |   |  |          |        |   |          |   |        |   |  |   |        |  
|-------------------------------------- | ------------------------------------------------------------------------------- | -------------------------------------------- | - | ------ | ---------------- |  | - | --------- | - |  | -------- | ------ | - | -------- | - | ------ | - |  | - | ------ | -
|                                       |                                                                                 | Three Months Ended                           |   |        | Six Months Ended | 
|                                       |                                                                                 |                                              |   |        |                  | 
|                                       |                                                                                 | June 30,                                     |   |        | June 30,         |  |   | March 31, |   |  | June 30, |        |   | June 30, |  
|                                       |                                                                                 | 2005                                         |   |        | 2004(1)          |  |   | 2005      |   |  | 2005     |        |   | 2004(1)  |  
|                                       |                                                                                 |                                              |   |        |                  |  |   |           |   |  |          |        |   |          |  
|                                       |                                                                                 | (Dollars in millions, except per share data) |  
|Performance Ratios                     |                                                                                 |                                              |   |        |                  |  |   |           |   |  |          |        |   |          |   |        |   |  |   |       
|                                       | Return on average equity (annualized)                                           |                                              |   | 25.25  | %                |  |   | 19.46     | % |  |          | 21.18  | % |          |   | 23.29  | % |  |   | 17.88  | %
|                                       | Return on average assets (annualized)                                           |                                              |   | 1.67   | %                |  |   | 1.29      | % |  |          | 1.43   | % |          |   | 1.55   | % |  |   | 1.23   | %
|                                       | Dividend payout ratio(2)                                                        |                                              |   | 30.16  | %                |  |   | 33.33     | % |  |          | 35.64  | % |          |   | 32.46  | % |  |   | 34.38  | %
|                                       | Net interest income to pretax income after minority interest                    |                                              |   | 70.04  | %                |  |   | 118.65    | % |  |          | 96.32  | % |          |   | 81.62  | % |  |   | 125.99 | %
|                                       | Average cost of funds                                                           |                                              |   | 3.26   | %                |  |   | 2.29      | % |  |          | 2.98   | % |          |   | 3.13   | % |  |   | 2.30   | %
|                                       | Net interest margin                                                             |                                              |   | 2.08   | %                |  |   | 2.75      | % |  |          | 2.49   | % |          |   | 2.28   | % |  |   | 2.78   | %
|                                       | Efficiency ratio(3)                                                             |                                              |   | 52     | %                |  |   | 54        | % |  |          | 57     | % |          |   | 54     | % |  |   | 56     | %
|                                       | Capital to net revenue ratio(4)                                                 |                                              |   | 113.43 | %                |  |   | 139.68    | % |  |          | 122.49 | % |          |   | 117.67 | % |  |   | 144.19 | %
|                                       | Capital adjusted efficiency ratio(5)                                            |                                              |   | 59     | %                |  |   | 75        | % |  |          | 69     | % |          |   | 64     | % |  |   | 81     | %
|                                       | Operating expenses to loan production                                           |                                              |   | 1.02   | %                |  |   | 1.11      | % |  |          | 1.21   | % |          |   | 1.10   | % |  |   | 1.26   | %
|Balance Sheet and Asset Quality Ratios |                                                                                 |                                              |   |        |                  |  |   |           |   |  |          |        |   |          |   |        |   |  |   |       
|                                       | Average interest-earning assets                                                 |                                              | $ | 18,561 |                  |  | $ | 15,669    |   |  | $        | 17,039 |   |          | $ | 17,800 |   |  | $ | 14,519 |  
|                                       | Average equity                                                                  |                                              | $ | 1,321  |                  |  | $ | 1,127     |   |  | $        | 1,254  |   |          | $ | 1,287  |   |  | $ | 1,085  |  
|                                       | Debt to equity ratio(6)                                                         |                                              |   | 12.8:1 |                  |  |   | 12.1:1    |   |  |          | 12.5:1 |   |          |   | 12.8:1 |   |  |   | 12.1:1 |  
|                                       | Core capital ratio(7)                                                           |                                              |   | 7.22   | %                |  |   | 7.65      | % |  |          | 7.35   | % |          |   | 7.22   | % |  |   | 7.65   | %
|                                       | Risk-based capital ratio(7)                                                     |                                              |   | 11.77  | %                |  |   | 12.47     | % |  |          | 11.85  | % |          |   | 11.77  | % |  |   | 12.47  | %
|                                       | Non-performing assets to total assets                                           |                                              |   | 0.38   | %                |  |   | 0.73      | % |  |          | 0.54   | % |          |   | 0.38   | % |  |   | 0.73   | %
|                                       | Allowance for loan losses to total loans held for investment                    |                                              |   | 0.72   | %                |  |   | 0.76      | % |  |          | 0.72   | % |          |   | 0.72   | % |  |   | 0.76   | %
|                                       | Allowance for loan losses and other credit reserves to
    non-performing loans |                                              |   | 101.43 | %                |  |   | 78.48     | % |  |          | 80.73  | % |          |   | 101.43 | % |  |   | 78.48  | %
|                                       | Allowance for loan losses to annualized net charge-offs                         |                                              |   | 739.05 | %                |  |   | 521.70    | % |  |          | 708.33 | % |          |   | 726.93 | % |  |   | 580.18 | %
|                                       | Provision for loan losses to net charge-offs                                    |                                              |   | 131.60 | %                |  |   | 126.48    | % |  |          | 131.89 | % |          |   | 131.68 | % |  |   | 103.30 | %
|Other Selected Items                   |                                                                                 |                                              |   |        |                  |  |   |           |   |  |          |        |   |          |   |        |   |  |   |       
|                                       | Loans serviced for others(8)                                                    |                                              | $ | 63,676 |                  |  | $ | 34,618    |   |  | $        | 55,995 |   |          | $ | 63,676 |   |  | $ | 34,618 |  
|                                       | Loan production(9)                                                              |                                              |   | 14,831 |                  |  |   | 9,727     |   |  |          | 11,975 |   |          |   | 26,806 |   |  |   | 16,873 |  
|                                       | Pipeline of mortgage loans in process                                           |                                              |   | 8,294  |                  |  |   | 5,179     |   |  |          | 7,489  |   |          |   | 8,294  |   |  |   | 5,179  |  
|                                       | Loans sold                                                                      |                                              | $ | 11,534 |                  |  | $ | 7,638     |   |  | $        | 9,654  |   |          | $ | 21,188 |   |  | $ | 12,524 |  
|                                       | Net margin on sale of loans                                                     |                                              |   | 1.38   | %                |  |   | 1.55      | % |  |          | 1.49   | % |          |   | 1.43   | % |  |   | 1.61   | %






|    |                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For the three and six months ended June 30, 2004, the data
    is presented on a pro forma basis excluding the effect of change
    in accounting principle for rate lock commitments under
    SAB No. 105 of $52.2 million before-tax. A full
    reconciliation between the pro forma amounts and amounts
    calculated in accordance with generally accepted accounting
    principles, or GAAP, is as follows:

|                                      |  |                                              |      |   |                  |   |          |           |  |          |       |   |          |           |       |   |  |   |       |  
|------------------------------------- |  | -------------------------------------------- | ---- | - | ---------------- | - | -------- | --------- |  | -------- | ----- | - | -------- | --------- | ----- | - |  | - | ----- | -
|                                      |  | Three Months Ended                           |      |   | Six Months Ended |  
|                                      |  |                                              |      |   |                  |  
|                                      |  | June 30,                                     |      |   |                  |   | June 30, |           |  | June 30, |       |   | June 30, |          
|                                      |  | 2004                                         |      |   |                  |   | 2004     |           |  | 2004     |       |   | 2004     |          
|                                      |  | GAAP                                         |      |   | Adjustments      |   |          | Pro Forma |  |          | GAAP  |   |          | Pro Forma |      
|                                      |  |                                              |      |   |                  |   |          |           |  |          |       |   |          |           |      
|                                      |  | (Dollars in millions, except per share data) |     
|Gain on sale of loans                 |  | $                                            | 66   |   |                  | $ | 52       |           |  | $        | 118   |   |          | $         | 150   |   |  |   | 202   |  
|Net revenues                          |  |                                              | 146  |   |                  |   | 52       |           |  |          | 198   |   |          |           | 319   |   |  |   | 372   |  
|Other expense                         |  |                                              | 108  |   |                  |   |         |           |  |          | 108   |   |          |           | 212   |   |  |   | 212   |  
|Income taxes                          |  |                                              | 15   |   |                  |   | 20       |           |  |          | 35    |   |          |           | 42    |   |  |   | 63    |  
|                                      |  |                                              |      |   |                  |   |          |           |  |          |       |   |          |           |      
|Net earnings                          |  | $                                            | 23   |   |                  | $ | 32       |           |  | $        | 55    |   |          | $         | 65    |   |  | $ | 96    |  
|                                      |  |                                              |      |   |                  |   |          |           |  |          |       |   |          |           |      
|Diluted earnings per share            |  | $                                            | 0.38 |   |                  | $ | 0.52     |           |  | $        | 0.90  |   |          | $         | 1.08  |   |  | $ | 1.60  |  
|Return on average equity (annualized) |  |                                              | 8.19 | % |                  |   |          |           |  |          | 19.46 | % |          |           | 12.02 | % |  |   | 17.88 | %
|Return on average asset (annualized)  |  |                                              | 0.54 | % |                  |   |          |           |  |          | 1.29  | % |          |           | 0.83  | % |  |   | 1.23  | %



|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(2) | Dividends declared per common share as a percentage of diluted
    earnings per share.

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|    |                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Defined as operating expenses divided by net interest income and
    other income.                                                                                                                                                                                                      
|   
|(4) | Average equity divided by net interest income and other income.                                                                                                                                                                                                                         
|   
|(5) | Efficiency ratio multiplied by the capital to net revenue ratio.                                                                                                                                                                                                                        
|   
|(6) | Debt includes deposits.                                                                                                                                                                                                                                                                 
|   
|(7) | IndyMac Bank, F.S.B. (excludes unencumbered cash at the Parent
    Company available for investment in IndyMac Bank). Risk-based
    capital ratio is calculated based on the regulatory standard
    risk weighting adjusted for the additional risk weightings for
    subprime loans.
|   
|(8) | Represents the unpaid principal balance on loans sold with
    servicing retained by IndyMac.                                                                                                                                                                                           
|   
|(9) | Includes newly originated commitments on construction loans and
    warehouse lending.                                                                                                                                                                                                  




OVERALL RESULTS




(1)











|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Our market share is calculated based on our total loan
    production, both purchased (correspondent and conduit) and
    originated (retail and wholesale), in all of our channels (the
    numerator) divided by the MBAs estimate of the overall
    mortgage market (the denominator) per their July 12, 2005
    Mortgage Finance Forecast. As we review industry publications
    such as National Mortgage News, we have confirmed that our
    calculation is consistent with its methodologies for reporting
    market share of IndyMac and our mortgage banking peers. It is
    important to note that these industry calculations cause
    purchased mortgages to be counted more than once, i.e., first
    when they are originated and again by the purchasers (through
    correspondent and conduit channels) of the mortgages. Therefore,
    our market share calculation may not be mathematically precise
    in the absolute sense, but it is consistent with industry
    calculations, which provide investors with a good view of our
    relative standing compared to the other top mortgage lending
    peers.

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OUR BUSINESS








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|                                       |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |        |        |         |         |         |         |            |         |         |        | 
|-------------------------------------- | ---------------------- | ---------------------- | ----------------- | -------- | -------------- | ------ | --------- | ---------- | ------ | ------ | ---------- | ----- | ------ | ------ | ---------- | ------- | ------- | ------ | ---------- | ------- | ------ | ------ | ------- | ------- | ------- | ------- | ---------- | ------- | ------- | ------ | 
|                                       |                        | Mortgage Banking       |                   |          |                |        |           |            |       
|                                       |                        |                        |                   |          |                |        |           |            |       
|                                       |                        |                        |                   | MSRs and |                |        | Loan      |            |        |        |            |       |        |        |            |        
|                                       |                        | Production             |                   |          | Other Retained |        |           | Servicing  |        |        |            |       |        |        |            |         | Total   |       
|                                       |                        | Divisions              |                   |          | Assets         |        |           | Operations |        |        | Total      |       |        | Thrift |            |         | Other   |        |            | Company |       
|                                       |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |       
|                                       |                        | (Dollars in thousands) |                  
|Operating Results                      |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |        |        |         |         |         |         |            |        
|Net interest income                    |                        | $                      | 24,900            |          |                | $      | 12,219    |            |        | $      | (33        | )     |        | $      | 37,086     |         |         | $      | 54,775     |         |        | $      | 4,544   |         |         | $       | 96,405     |        
|Provision for loan losses              |                        |                        |                  |          |                |        |          |            |        |        |           |       |        |        |           |         |         |        | (2,407     | )       |        |        |        |         |         |         | (2,407     | )      
|Gain (loss) on sale of loans           |                        |                        | 194,872           |          |                |        | 128       |            |        |        |           |       |        |        | 195,000    |         |         |        | 15,539     |         |        |        | (51,162 | )       |         |         | 159,377    |        
|Gain (loss) on securities              |                        |                        |                  |          |                |        | 14,361    |            |        |        |           |       |        |        | 14,361     |         |         |        | 1,005      |         |        |        | 485     |         |         |         | 15,851     |        
|Service fee income                     |                        |                        | 3,032             |          |                |        | (3,691    | )          |        |        |           |       |        |        | (659       | )       |         |        | 1,754      |         |        |        | 9,704   |         |         |         | 10,799     |        
|Other income                           |                        |                        | 14,541            |          |                |        | 1,393     |            |        |        | 520        |       |        |        | 16,454     |         |         |        | 8,437      |         |        |        | (16,245 | )       |         |         | 8,646      |        
|                                       |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |       
|                                       | Net revenues (expense) |                        |                   | 237,345  |                |        |           | 24,410     |        |        |            | 487   |        |        |            | 262,242 |         |        |            | 79,103  |        |        |         | (52,674 | )       |         |            | 288,671 |        
|                                       | Operating expenses     |                        |                   | 92,025   |                |        |           | 7,489      |        |        |            | 4,827 |        |        |            | 104,341 |         |        |            | 20,460  |        |        |         | 26,233  |         |         |            | 151,034 |        
|                                       |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |       
|                                       |                        | Pretax income (loss)   |                   |          | 145,320        |        |           |            | 16,921 |        |            |       | (4,340 | )      |            |         | 157,901 |        |            |         | 58,643 |        |         |         | (78,907 | )       |            |         | 137,637 |       
|                                       |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |       
|                                       |                        |                        | Net income (loss) |          | $              | 87,901 |           |            | $      | 10,237 |            |       | $      | (2,626 | )          |         | $       | 95,512 |            |         | $      | 35,479 |         |         | $       | (47,845 | )          |         | $       | 83,146 | 
|                                       |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |       
|Ratios                                 |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |        |        |         |         |         |         |            |        
|Percentage of average total assets     |                        |                        | 30                | %        |                |        | 7         | %          |        |        |           |       |        |        | 37         | %       |         |        | 58         | %       |        |        | 5       | %       |         |         | 100        | %      
|Percentage of total revenue            |                        |                        | 82                | %        |                |        | 9         | %          |        |        |           |       |        |        | 91         | %       |         |        | 27         | %       |        |        | (18     | )%      |         |         | 100        | %      
|Percentage of pretax income            |                        |                        | 106               | %        |                |        | 12        | %          |        |        | (3         | )%    |        |        | 115        | %       |         |        | 42         | %       |        |        | (57     | )%      |         |         | 100        | %      
|Balance Sheet Data                     |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |        |        |         |         |         |         |            |        
|Average interest-earning assets(1)     |                        | $                      | 5,689,983         |          |                | $      | 555,790   |            |        | $      |           |       |        | $      | 6,245,773  |         |         | $      | 11,645,739 |         |        | $      | 669,060 |         |         | $       | 18,560,572 |        
|Average total assets                   |                        | $                      | 5,909,126         |          |                | $      | 1,397,460 |            |        | $      | 51,968     |       |        | $      | 7,358,554  |         |         | $      | 11,674,360 |         |        | $      | 985,786 |         |         | $       | 20,018,700 |        
|Allocated capital                      |                        | $                      | 375,397           |          |                | $      | 235,766   |            |        | $      | 5,183      |       |        | $      | 616,346    |         |         | $      | 601,232    |         |        | $      | 103,109 |         |         | $       | 1,320,687  |        
|Allocated capital/average total assets |                        |                        | 6.35              | %        |                |        | 16.87     | %          |        |        | 9.97       | %     |        |        | 8.38       | %       |         |        | 5.15       | %       |        |        | 10.46   | %       |         |         | 6.60       | %      
|Operating Data                         |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |        |        |         |         |         |         |            |        
|Loans produced                         |                        | $                      | 13,196,407        |          |                | $      | 173,754   |            |        | $      |           |       |        | $      | 13,370,161 |         |         | $      | 1,460,746  |         |        | $      |        |         |         | $       | 14,830,907 |        
|Operating expense to loans produced    |                        |                        | 0.70              | %        |                |        | 4.31      | %          |        |        | N/A        |       |        |        | 0.78       | %       |         |        | 1.40       | %       |        |        | N/A     |         |         |         | 1.02       | %      
|Loans sold                             |                        |                        | 10,468,343        |          |                |        | 199,614   |            |        |        | N/A        |       |        |        | 10,667,957 |         |         |        | 866,143    |         |        |        | N/A     |         |         |         | 11,534,100 |        
|Margin on loans sold                   |                        |                        | 1.86              | %        |                |        | 0.06      | %          |        |        | N/A        |       |        |        | 1.83       | %       |         |        | 1.79       | %       |        |        | N/A     |         |         |         | 1.38       | %      
|Loans serviced for others              |                        |                        | 5,888,088         |          |                |        |          |            |        |        | 56,452,036 |       |        |        | 62,340,124 |         |         |        | 1,335,821  |         |        |        | N/A     |         |         |         | 63,675,945 |        
|Performance Ratios                     |                        |                        |                   |          |                |        |           |            |        |        |            |       |        |        |            |         |         |        |            |         |        |        |         |         |         |         |            |        
|Return on equity (ROE)                 |                        |                        | 94                | %        |                |        | 17        | %          |        |        | N/A        |       |        |        | 62         | %       |         |        | 24         | %       |        |        | N/A     |         |         |         | 25         | %      
|Return on assets (ROA)                 |                        |                        | 5.97              | %        |                |        | 2.94      | %          |        |        | N/A        |       |        |        | 5.21       | %       |         |        | 1.22       | %       |        |        | N/A     |         |         |         | 1.67       | %      
|Net interest margin                    |                        |                        | 1.76              | %        |                |        | 8.82      | %          |        |        | N/A        |       |        |        | 2.38       | %       |         |        | 1.89       | %       |        |        | N/A     |         |         |         | 2.08       | %      
|Efficiency ratio                       |                        |                        | 39                | %        |                |        | 31        | %          |        |        | N/A        |       |        |        | 40         | %       |         |        | 25         | %       |        |        | N/A     |         |         |         | 52         | %      
|Capital adjusted efficiency ratio      |                        |                        | 15                | %        |                |        | 74        | %          |        |        | N/A        |       |        |        | 23         | %       |         |        | 46         | %       |        |        | N/A     |         |         |         | 59         | %      
|Average FTE                            |                        |                        | 3,621             |          |                |        | 108       |            |        |        | 366        |       |        |        | 4,095      |         |         |        | 540        |         |        |        | 990     |         |         |         | 5,625      |        






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.

8



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##### Table of Contents





|                                       |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |        |       |       |        |       |        |        |            |         |         |        | 
|-------------------------------------- | ---------------------- | ------------------------------------- | ----------------- | ------- | ------------- | --------- | --------- | -------- | ------ | ------ | --------- | ------ | ----- | -------- | ---------- | ------- | --------- | ------ | ------- | -------- | ----- | ----- | --------- | ------ | ----- | ----- | ------ | ----- | ------ | ------ | ---------- | ------- | ------- | ------ | 
|                                       |                        | Mortgage Banking Production Divisions |                  
|                                       |                        |                                       |                  
|                                       |                        |                                       |                   |         |               | Financial |           |          |       
|                                       |                        | Mortgage Professionals                |                   |         | Consumer      |           |           | Freedom  |        |        |          
|                                       |                        |                                       |                   |         | Direct and    |           |           | (Reverse |        |        |          
|                                       |                        | Wholesale                             |                   |         | Correspondent |           |           | Conduit  |        |        | Total     |        |       | Indirect |            |         | Mortgage) |        |         | Overhead |       |       | Total     |       
|                                       |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |       
|                                       |                        | (Dollars in thousands)                |                  
|Operating Results                      |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |        |       |       |        |       |        |        |            |        
|Net interest income                    |                        | $                                     | 10,193            |         |               | $         | 2,643     |          |        | $      | 10,292    |        |       | $        | 23,128     |         |           | $      | 1,139   |          |       | $     | 502       |        |       | $     | 131    |       |        | $      | 24,900     |        
|Provision for loan losses              |                        |                                       |                  |         |               |           |          |          |        |        |          |        |       |          |           |         |           |        |        |          |       |       |          |        |       |       |       |       |        |        |           |        
|Gain (loss) on sale of loans           |                        |                                       | 132,791           |         |               |           | 23,203    |          |        |        | 2,281     |        |       |          | 158,275    |         |           |        | 19,369  |          |       |       | 17,228    |        |       |       |       |       |        |        | 194,872    |        
|Gain (loss) on securities              |                        |                                       |                  |         |               |           |          |          |        |        |          |        |       |          |           |         |           |        |        |          |       |       |          |        |       |       |       |       |        |        |           |        
|Service fee income                     |                        |                                       | (3                | )       |               |           |          |          |        |        |          |        |       |          | (3         | )       |           |        |        |          |       |       | 3,035     |        |       |       |       |       |        |        | 3,032      |        
|Other income                           |                        |                                       | 11,565            |         |               |           | 544       |          |        |        | 61        |        |       |          | 12,170     |         |           |        | 1,723   |          |       |       | 656       |        |       |       | (8     | )     |        |        | 14,541     |        
|                                       |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |       
|                                       | Net revenues (expense) |                                       |                   | 154,546 |               |           |           | 26,390   |        |        |           | 12,634 |       |          |            | 193,570 |           |        |         | 22,231   |       |       |           | 21,421 |       |       |        | 123   |        |        |            | 237,345 |        
|                                       | Operating expenses     |                                       |                   | 44,685  |               |           |           | 4,059    |        |        |           | 3,623  |       |          |            | 52,367  |           |        |         | 19,328   |       |       |           | 12,665 |       |       |        | 7,665 |        |        |            | 92,025  |        
|                                       |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |       
|                                       |                        | Pretax income (loss)                  |                   |         | 109,861       |           |           |          | 22,331 |        |           |        | 9,011 |          |            |         | 141,203   |        |         |          | 2,903 |       |           |        | 8,756 |       |        |       | (7,542 | )      |            |         | 145,320 |       
|                                       |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |       
|                                       |                        |                                       | Net income (loss) |         | $             | 66,466    |           |          | $      | 13,510 |           |        | $     | 5,452    |            |         | $         | 85,428 |         |          | $     | 1,756 |           |        | $     | 5,280 |        |       | $      | (4,563 | )          |         | $       | 87,901 | 
|                                       |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |       
|Ratios                                 |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |        |       |       |        |       |        |        |            |        
|Percentage of average total assets     |                        |                                       | 14                | %       |               |           | 3         | %        |        |        | 10        | %      |       |          | 27         | %       |           |        | 2       | %        |       |       | 1         | %      |       |       |       |       |        |        | 30         | %      
|Percentage of total revenue            |                        |                                       | 54                | %       |               |           | 9         | %        |        |        | 4         | %      |       |          | 67         | %       |           |        | 8       | %        |       |       | 7         | %      |       |       |       |       |        |        | 82         | %      
|Percentage of pretax income            |                        |                                       | 80                | %       |               |           | 16        | %        |        |        | 7         | %      |       |          | 103        | %       |           |        | 2       | %        |       |       | 6         | %      |       |       | (5     | )%    |        |        | 106        | %      
|Balance Sheet Data                     |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |        |       |       |        |       |        |        |            |        
|Average interest-earning assets(1)     |                        | $                                     | 2,769,263         |         |               | $         | 557,558   |          |        | $      | 1,979,241 |        |       | $        | 5,306,062  |         |           | $      | 277,301 |          |       | $     | 106,543   |        |       | $     | 77     |       |        | $      | 5,689,983  |        
|Average total assets                   |                        | $                                     | 2,775,633         |         |               | $         | 558,791   |          |        | $      | 1,986,474 |        |       | $        | 5,320,898  |         |           | $      | 289,208 |          |       | $     | 218,869   |        |       | $     | 80,151 |       |        | $      | 5,909,126  |        
|Allocated capital                      |                        | $                                     | 155,707           |         |               | $         | 29,877    |          |        | $      | 105,996   |        |       | $        | 291,580    |         |           | $      | 16,424  |          |       | $     | 60,148    |        |       | $     | 7,245  |       |        | $      | 375,397    |        
|Allocated capital/average total assets |                        |                                       | 5.61              | %       |               |           | 5.35      | %        |        |        | 5.34      | %      |       |          | 5.48       | %       |           |        | 5.68    | %        |       |       | 27.48     | %      |       |       | 9.04   | %     |        |        | 6.35       | %      
|Operating Data                         |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |        |       |       |        |       |        |        |            |        
|Loans produced                         |                        | $                                     | 7,191,986         |         |               | $         | 1,419,921 |          |        | $      | 3,206,983 |        |       | $        | 11,818,890 |         |           | $      | 738,137 |          |       | $     | 639,380   |        |       | $     |       |       |        | $      | 13,196,407 |        
|Operating expenses to loans produced   |                        |                                       | 0.62              | %       |               |           | 0.29      | %        |        |        | 0.11      | %      |       |          | 0.44       | %       |           |        | 2.62    | %        |       |       | 1.98      | %      |       |       | N/A    |       |        |        | 0.70       | %      
|Loans sold                             |                        |                                       | 5,821,079         |         |               |           | 1,205,031 |          |        |        | 2,271,186 |        |       |          | 9,297,296  |         |           |        | 556,611 |          |       |       | 614,436   |        |       |       | N/A    |       |        |        | 10,468,343 |        
|Margin on loans sold                   |                        |                                       | 2.28              | %       |               |           | 1.93      | %        |        |        | 0.10      | %      |       |          | 1.70       | %       |           |        | 3.48    | %        |       |       | 2.80      | %      |       |       | N/A    |       |        |        | 1.86       | %      
|Loans serviced for others              |                        |                                       |                  |         |               |           |          |          |        |        |          |        |       |          |           |         |           |        |        |          |       |       | 5,888,088 |        |       |       |       |       |        |        | 5,888,088  |        
|Performance Ratios                     |                        |                                       |                   |         |               |           |           |          |        |        |           |        |       |          |            |         |           |        |         |          |       |       |           |        |       |       |        |       |        |        |            |        
|Return on equity (ROE)                 |                        |                                       | 171               | %       |               |           | 181       | %        |        |        | 21        | %      |       |          | 118        | %       |           |        | 43      | %        |       |       | 35        | %      |       |       | N/A    |       |        |        | 94         | %      
|Return on assets (ROA)                 |                        |                                       | 9.60              | %       |               |           | 9.70      | %        |        |        | 1.10      | %      |       |          | 6.44       | %       |           |        | 2.44    | %        |       |       | 9.68      | %      |       |       | N/A    |       |        |        | 5.97       | %      
|Net interest margin                    |                        |                                       | 1.48              | %       |               |           | 1.90      | %        |        |        | 2.09      | %      |       |          | 1.75       | %       |           |        | 1.65    | %        |       |       | 1.89      | %      |       |       | N/A    |       |        |        | 1.76       | %      
|Efficiency ratio                       |                        |                                       | 29                | %       |               |           | 15        | %        |        |        | 29        | %      |       |          | 27         | %       |           |        | 87      | %        |       |       | 59        | %      |       |       | N/A    |       |        |        | 39         | %      
|Capital adjusted efficiency ratio      |                        |                                       | 7                 | %       |               |           | 4         | %        |        |        | 60        | %      |       |          | 10         | %       |           |        | 16      | %        |       |       | 42        | %      |       |       | N/A    |       |        |        | 15         | %      
|Average FTE                            |                        |                                       | 1,778             |         |               |           | 170       |          |        |        | 102       |        |       |          | 2,050      |         |           |        | 569     |          |       |       | 708       |        |       |       | 294    |       |        |        | 3,621      |        






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.

Mortgage Banking Production Divisions


|                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|---------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Mortgage Professionals       |  | This group is responsible for the production of mortgage loans
    through relationships with mortgage brokers, mortgage bankers,
    financial institutions and homebuilders via three channels:
    wholesale, correspondent and conduit. Mortgage loans could be
    either funded by us (wholesale) or obtained as closed loans
    on a flow basis (correspondent) or in bulk purchases
    (conduit). While the wholesale and correspondent channels focus
    on producing loans via wholesale and correspondent delivery
    method, respectively, the production volume by wholesale and
    correspondent channels do not always correspond strictly with
    the table-funded (wholesale) and flow
    (correspondent) delivery method.
|Consumer Direct and Indirect |  | This channel offers consumers mortgage lending through our Web
    site, direct Internet leads developed through on line
    advertising, affinity relationships, company referral programs,
    relationships with Realtors and through our Southern California
    retail banking branches.                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Financial Freedom            |  | This group is responsible for the generation of predominantly
    reverse mortgage products with senior customers (age 62 or
    older) via a wholesale relationship sales force and a retail
    loan officer sales force.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Overhead                     |  | Items included in this column primarily represent the mortgage
    banking segments cost for productivity process improvement
    which do not directly relate to the production generated in the
    current period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

9



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##### Table of Contents





|                                       |                        |                        |                   |        |                |        |            |       |        |        |  
|-------------------------------------- | ---------------------- | ---------------------- | ----------------- | ------ | -------------- | ------ | ---------- | ----- | ------ | ------ | -
|                                       |                        | Retained Assets and    |                  
|                                       |                        | Servicing Division     |                  
|                                       |                        |                        |                  
|                                       |                        | MSRs and Other         |                   |        | Loan Servicing |       
|                                       |                        | Retained Assets        |                   |        | Operations     |       
|                                       |                        |                        |                   |        |                |       
|                                       |                        | (Dollars in thousands) |                  
|Operating Results                      |                        |                        |                   |        |                |        |            |      
|Net interest income                    |                        | $                      | 12,219            |        |                | $      | (33        | )    
|Provision for loan losses              |                        |                        |                  |        |                |        |           |      
|Gain (loss) on sale of loans           |                        |                        | 128               |        |                |        |           |      
|Gain on securities                     |                        |                        | 14,361            |        |                |        |           |      
|Service fee income                     |                        |                        | (3,691            | )      |                |        |           |      
|Other income                           |                        |                        | 1,393             |        |                |        | 520        |      
|                                       |                        |                        |                   |        |                |       
|                                       | Net revenues (expense) |                        |                   | 24,410 |                |        |            | 487   |       
|                                       | Operating expenses     |                        |                   | 7,489  |                |        |            | 4,827 |       
|                                       |                        |                        |                   |        |                |       
|                                       |                        | Pretax income (loss)   |                   |        | 16,921         |        |            |       | (4,340 | )     
|                                       |                        |                        |                   |        |                |       
|                                       |                        |                        | Net income (loss) |        | $              | 10,237 |            |       | $      | (2,626 | )
|                                       |                        |                        |                   |        |                |       
|Ratios                                 |                        |                        |                   |        |                |        |            |      
|Percentage of average total assets     |                        |                        | 7                 | %      |                |        |           |      
|Percentage of total revenue            |                        |                        | 9                 | %      |                |        |           |      
|Percentage of pretax income            |                        |                        | 12                | %      |                |        | (3         | )%   
|Balance Sheet Data                     |                        |                        |                   |        |                |        |            |      
|Average interest-earning assets(1)     |                        | $                      | 555,790           |        |                | $      |           |      
|Average total assets                   |                        | $                      | 1,397,460         |        |                | $      | 51,968     |      
|Allocated capital                      |                        | $                      | 235,766           |        |                | $      | 5,183      |      
|Allocated capital/average total assets |                        |                        | 16.87             | %      |                |        | 9.97       | %    
|Operating Data                         |                        |                        |                   |        |                |        |            |      
|Loans produced via retention program   |                        | $                      | 173,754           |        |                | $      |           |      
|Operating expenses to loans produced   |                        |                        | 4.31              | %      |                |        | N/A        |      
|Loans sold                             |                        |                        | 199,614           |        |                |        | N/A        |      
|Margin on loans sold                   |                        |                        | 0.06              | %      |                |        | N/A        |      
|Loans serviced for others              |                        |                        |                  |        |                |        | 56,452,036 |      
|Performance Ratios                     |                        |                        |                   |        |                |        |            |      
|Return on equity (ROE)                 |                        |                        | 17                | %      |                |        | N/A        |      
|Return on assets (ROA)                 |                        |                        | 2.94              | %      |                |        | N/A        |      
|Net interest margin                    |                        |                        | 8.82              | %      |                |        | N/A        |      
|Efficiency ratio                       |                        |                        | 31                | %      |                |        | N/A        |      
|Capital adjusted efficiency ratio      |                        |                        | 74                | %      |                |        | N/A        |      
|Average FTE                            |                        |                        | 108               |        |                |        | 366        |      






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.

|                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Retained Assets and Servicing Division |  | The retained assets and servicing division has been realigned
    with our mortgage banking segment, because we believe the
    ability to service mortgage loans is integral to obtaining the
    best execution on our mortgage loan sales. The ability to
    service mortgage loans provides the Company with additional loan
    sale channels in the secondary market such as sales to the
    government sponsored enterprises (GSEs) and
    private-label mortgage securitization transactions. The
    Companys objective is to maintain multiple outlets for
    loan sale distribution to optimize returns and reduce the risk
    of one or more channels being disrupted.
|                                       |  | The retained assets and servicing division holds the following
    asset classes: (i) MSRs, interest-only strips and residual
    securities, (ii) securities held as hedges of such assets,
    including principal-only securities, agency debentures and
    U.S. Treasury bonds, (iii) loans acquired through
    clean-up calls or originated through the Companys customer
    retention programs and (iv) investment and non-investment
    grade securities.                                                                                                                                                                                                                     
|                                       |  | The Company hedges the MSRs to protect the economic value of the
    MSRs. The economic value may vary from the GAAP value due to the
    lower of cost or market limitations of GAAP. The results in the
    table above reflect the economic fair value of the MSRs.
    Differences between the economic value and the GAAP value are
    eliminated in consolidation.                                                                                                                                                                                                                                                                                                                 

10



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##### Table of Contents





|                                       |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |     |      |      |        |     |      |      |            |        |        |        | 
|-------------------------------------- | ---------------------- | ---------------------- | ----------------- | -------- | --------- | ----- | --------- | ------- | ------ | ------ | ------------ | ------ | ----- | ------------ | --------- | ------ | --------- | ------ | ------- | ------------ | ----- | ----- | ------ | --- | ---- | ---- | ------ | --- | ---- | ---- | ---------- | ------ | ------ | ------ | 
|                                       |                        | Thrift                 |                  
|                                       |                        |                        |                  
|                                       |                        |                        |                   | Consumer |           |       |          
|                                       |                        | Mortgage-              |                   |          | Prime SFR |       |           | Home    |        |        | Construction |        |       | Subdivision  |           |        |          
|                                       |                        | Backed                 |                   |          | Mortgage  |       |           | Equity  |        |        | and Lot      |        |       | Construction |           |        | Warehouse |        |         | Discontinued |       |       |       
|                                       |                        | Securities             |                   |          | Loans     |       |           | Lending |        |        | Loans        |        |       | Financing    |           |        | Lending   |        |         | Products     |       |       | Total  |    
|                                       |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |    
|                                       |                        | (Dollars in thousands) |                  
|Operating Results                      |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |     |      |      |        |     |      |      |            |       
|Net interest income                    |                        | $                      | 5,838             |          |           | $     | 17,648    |         |        | $      | 7,361        |        |       | $            | 13,076    |        |           | $      | 10,011  |              |       | $     | 49     |     |      | $    | 792    |     |      | $    | 54,775     |       
|Provision for loan losses              |                        |                        |                  |          |           |       | (700      | )       |        |        |             |        |       |              | (573      | )      |           |        | (500    | )            |       |       | (84    | )   |      |      | (550   | )   |      |      | (2,407     | )     
|Gain (loss) on sale of loans           |                        |                        |                  |          |           |       | 3,056     |         |        |        | 646          |        |       |              | 11,827    |        |           |        |        |              |       |       |       |     |      |      | 10     |     |      |      | 15,539     |       
|Gain (loss) on securities              |                        |                        | 724               |          |           |       |          |         |        |        | 397          |        |       |              | (116      | )      |           |        |        |              |       |       |       |     |      |      |       |     |      |      | 1,005      |       
|Service fee income                     |                        |                        |                  |          |           |       | 278       |         |        |        | 1,476        |        |       |              |          |        |           |        |        |              |       |       |       |     |      |      |       |     |      |      | 1,754      |       
|Other income                           |                        |                        | (1                | )        |           |       | 914       |         |        |        | 1,788        |        |       |              | 5,521     |        |           |        | 138     |              |       |       | 76     |     |      |      | 1      |     |      |      | 8,437      |       
|                                       |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |    
|                                       | Net revenues (expense) |                        |                   | 6,561    |           |       |           | 21,196  |        |        |              | 11,668 |       |              |           | 29,735 |           |        |         | 9,649        |       |       |        | 41  |      |      |        | 253 |      |      |            | 79,103 |       
|                                       | Operating expenses     |                        |                   | 241      |           |       |           | 462     |        |        |              | 3,007  |       |              |           | 12,810 |           |        |         | 2,693        |       |       |        | 743 |      |      |        | 504 |      |      |            | 20,460 |       
|                                       |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |    
|                                       |                        | Pretax income (loss)   |                   |          | 6,320     |       |           |         | 20,734 |        |              |        | 8,661 |              |           |        | 16,925    |        |         |              | 6,956 |       |        |     | (702 | )    |        |     | (251 | )    |            |        | 58,643 |       
|                                       |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |    
|                                       |                        |                        | Net income (loss) |          | $         | 3,824 |           |         | $      | 12,544 |              |        | $     | 5,240        |           |        | $         | 10,240 |         |              | $     | 4,208 |        |     | $    | (425 | )      |     | $    | (152 | )          |        | $      | 35,479 | 
|                                       |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |    
|Ratios                                 |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |     |      |      |        |     |      |      |            |       
|Percentage of average total assets     |                        |                        | 11                | %        |           |       | 25        | %       |        |        | 8            | %      |       |              | 10        | %      |           |        | 4       | %            |       |       |       |     |      |      |       |     |      |      | 58         | %     
|Percentage of total revenue            |                        |                        | 2                 | %        |           |       | 8         | %       |        |        | 4            | %      |       |              | 10        | %      |           |        | 3       | %            |       |       |       |     |      |      |       |     |      |      | 27         | %     
|Percentage of pretax income            |                        |                        | 5                 | %        |           |       | 15        | %       |        |        | 6            | %      |       |              | 12        | %      |           |        | 5       | %            |       |       | (1     | )%  |      |      |       |     |      |      | 42         | %     
|Balance Sheet Data                     |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |     |      |      |        |     |      |      |            |       
|Average interest-earning assets(1)     |                        | $                      | 2,131,235         |          |           | $     | 5,050,001 |         |        | $      | 1,559,134    |        |       | $            | 2,091,337 |        |           | $      | 751,327 |              |       | $     | 12,800 |     |      | $    | 49,905 |     |      | $    | 11,645,739 |       
|Average total assets                   |                        | $                      | 2,145,998         |          |           | $     | 5,060,676 |         |        | $      | 1,574,319    |        |       | $            | 2,090,807 |        |           | $      | 745,170 |              |       | $     | 14,460 |     |      | $    | 42,930 |     |      | $    | 11,674,360 |       
|Allocated capital                      |                        | $                      | 47,037            |          |           | $     | 245,109   |         |        | $      | 97,834       |        |       | $            | 119,939   |        |           | $      | 85,547  |              |       | $     | 1,329  |     |      | $    | 4,437  |     |      | $    | 601,232    |       
|Allocated capital/average total assets |                        |                        | 2.19              | %        |           |       | 4.84      | %       |        |        | 6.21         | %      |       |              | 5.74      | %      |           |        | 11.48   | %            |       |       | 9.19   | %   |      |      | 10.34  | %   |      |      | 5.15       | %     
|Operating Data                         |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |     |      |      |        |     |      |      |            |       
|Loans produced                         |                        | $                      |                  |          |           | $     |          |         |        | $      | 55,716       |        |       | $            | 772,804   |        |           | $      | 594,226 |              |       | $     | 38,000 |     |      | $    |       |     |      | $    | 1,460,746  |       
|Operating expenses to loans produced   |                        |                        | N/A               |          |           |       | N/A       |         |        |        | 5.40         | %      |       |              | 1.66      | %      |           |        | 0.45    | %            |       |       | 1.96   | %   |      |      | N/A    |     |      |      | 1.40       | %     
|Loans sold                             |                        |                        |                  |          |           |       | 111,299   |         |        |        | 130,497      |        |       |              | 624,347   |        |           |        |        |              |       |       |       |     |      |      |       |     |      |      | 866,143    |       
|Margins on loans sold                  |                        |                        | N/A               |          |           |       | 2.75      | %       |        |        | 0.50         | %      |       |              | 1.89      | %      |           |        | N/A     |              |       |       | N/A    |     |      |      | N/A    |     |      |      | 1.79       | %     
|Loans serviced for others              |                        |                        |                  |          |           |       |          |         |        |        | 1,335,821    |        |       |              |          |        |           |        |        |              |       |       |       |     |      |      |       |     |      |      | 1,335,821  |       
|Performance Ratios                     |                        |                        |                   |          |           |       |           |         |        |        |              |        |       |              |           |        |           |        |         |              |       |       |        |     |      |      |        |     |      |      |            |       
|Return on equity (ROE)                 |                        |                        | 33                | %        |           |       | 21        | %       |        |        | 21           | %      |       |              | 34        | %      |           |        | 20      | %            |       |       | (128   | )%  |      |      | (14    | )%  |      |      | 24         | %     
|Return on assets (ROA)                 |                        |                        | 0.71              | %        |           |       | 0.99      | %       |        |        | 1.34         | %      |       |              | 1.96      | %      |           |        | 2.27    | %            |       |       | (11.79 | )%  |      |      | (1.42  | )%  |      |      | 1.22       | %     
|Net interest margin                    |                        |                        | 1.10              | %        |           |       | 1.40      | %       |        |        | 1.89         | %      |       |              | 2.51      | %      |           |        | 5.34    | %            |       |       | 1.54   | %   |      |      | 6.37   | %   |      |      | 1.89       | %     
|Efficiency ratio                       |                        |                        | 4                 | %        |           |       | 2         | %       |        |        | 26           | %      |       |              | 42        | %      |           |        | 27      | %            |       |       | NM     |     |      |      | 63     | %   |      |      | 25         | %     
|Capital adjusted efficiency ratio      |                        |                        | 7                 | %        |           |       | 6         | %       |        |        | 54           | %      |       |              | 42        | %      |           |        | 56      | %            |       |       | NM     |     |      |      | 87     | %   |      |      | 46         | %     
|Average FTE                            |                        |                        | 5                 |          |           |       | 10        |         |        |        | 26           |        |       |              | 377       |        |           |        | 90      |              |       |       | 18     |     |      |      | 14     |     |      |      | 540        |       






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.

|                                    |  |                                                                                                                                                                                                                                                                                                                                     
|----------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Mortgage-backed securities (MBS)  |  | Assets include AAA-rated agency and private label MBS.                                                                                                                                                                                                                                                                              
|Prime SFR Mortgage Loans            |  | Assets include all single-family residential mortgage loans held
    for investment other than discontinued products.                                                                                                                                                                                                               
|Home Equity Lending                 |  | This activity focuses on the production of home equity lines of
    credit (HELOCs) and closed-end seconds through marketing
    strategies focused on direct interaction with consumers.                                                                                                                                           
|Consumer Construction and Lot Loans |  | This activity provides construction-to-permanent and lot loan
    financing to individuals who are in the process of building
    their own homes. This channel leverages our relationship sales
    force in the mortgage professional channel to produce these
    products in addition to programs offered directly to consumers.
|Subdivision Construction Financing  |  | This division offers financing to subdivision developers.                                                                                                                                                                                                                                                                           
|Warehouse Lending                   |  | Through this division, we reentered the warehouse lending
    business in the first quarter of 2005, providing short-term
    revolving warehouse lending facilities to small-to-medium size
    mortgage bankers and brokers from the time the loan is closed
    until the loan is sold.                                          
|Discontinued Products               |  | Home improvement and manufactured housing loans.                                                                                                                                                                                                                                                                                    

11



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##### Table of Contents





|                                       |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |        |         |        |         |         |            |         |         |        | 
|-------------------------------------- | ---------------------- | ---------------------- | ----------------- | --------- | ------- | ------- | ---------- | -------- | ------- | ------- | --------- | ----- | ------ | -------- | ------- | ----- | ------- | ------ | ------- | ------ | ------- | ------- | ---------- | ------- | ------- | ------ | 
|                                       |                        |                        |                   | Total     |         |         |            |          |         |         |           |       |       
|                                       |                        |                        |                   | Operating |         |         |            |          |         |         | Corporate |       |        | Total    |        
|                                       |                        | Eliminations           |                   |           | Results |         |            | Deposits |         |         | Treasury  |       |        | Overhead |         |       | Company |       
|                                       |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |       
|                                       |                        | (Dollars in thousands) |                  
|Operating Results                      |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |        |         |        |         |         |            |        
|Net interest income                    |                        | $                      | 7,840             |           |         | $       | 99,701     |          |         | $       |          |       |        | $        | (540    | )     |         | $      | (2,756  | )      |         | $       | 96,405     |        
|Provision for loan losses              |                        |                        |                  |           |         |         | (2,407     | )        |         |         |          |       |        |          |        |       |         |        |        |        |         |         | (2,407     | )      
|Gain (loss) on sale of loans           |                        |                        | (51,162           | )         |         |         | 159,377    |          |         |         |          |       |        |          |        |       |         |        |        |        |         |         | 159,377    |        
|Gain (loss) on securities              |                        |                        | 485               |           |         |         | 15,851     |          |         |         |          |       |        |          |        |       |         |        |        |        |         |         | 15,851     |        
|Service fee income                     |                        |                        | 9,704             |           |         |         | 10,799     |          |         |         |          |       |        |          |        |       |         |        |        |        |         |         | 10,799     |        
|Other income                           |                        |                        | (17,780           | )         |         |         | 7,111      |          |         |         | 618       |       |        |          | 128     |       |         |        | 789     |        |         |         | 8,646      |        
|                                       |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |       
|                                       | Net revenues (expense) |                        |                   | (50,913   | )       |         |            | 290,432  |         |         |           | 618   |        |          |         | (412  | )       |        |         | (1,967 | )       |         |            | 288,671 |        
|                                       | Operating expenses     |                        |                   | (13,764   | )       |         |            | 111,037  |         |         |           | 3,389 |        |          |         | 1,487 |         |        |         | 35,121 |         |         |            | 151,034 |        
|                                       |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |       
|                                       |                        | Pretax income (loss)   |                   |           | (37,149 | )       |            |          | 179,395 |         |           |       | (2,771 | )        |         |       | (1,899  | )      |         |        | (37,088 | )       |            |         | 137,637 |       
|                                       |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |       
|                                       |                        |                        | Net income (loss) |           | $       | (22,475 | )          |          | $       | 108,516 |           |       | $      | (1,676   | )       |       | $       | (1,149 | )       |        | $       | (22,545 | )          |         | $       | 83,146 | 
|                                       |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |       
|Ratios                                 |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |        |         |        |         |         |            |        
|Percentage of average total assets     |                        |                        |                  |           |         |         | 95         | %        |         |         |          |       |        |          | 4       | %     |         |        | 1       | %      |         |         | 100        | %      
|Percentage of total revenue            |                        |                        | (17               | )%        |         |         | 101        | %        |         |         |          |       |        |          |        |       |         |        | (1      | )%     |         |         | 100        | %      
|Percentage of pretax income            |                        |                        | (27               | )%        |         |         | 130        | %        |         |         | (2        | )%    |        |          | (1      | )%    |         |        | (27     | )%     |         |         | 100        | %      
|Balance Sheet Data                     |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |        |         |        |         |         |            |        
|Average interest-earning assets(1)     |                        | $                      |                  |           |         | $       | 17,891,512 |          |         | $       | 172       |       |        | $        | 711,067 |       |         | $      | (42,179 | )      |         | $       | 18,560,572 |        
|Average total assets                   |                        | $                      |                  |           |         | $       | 19,032,914 |          |         | $       | 32,480    |       |        | $        | 734,031 |       |         | $      | 219,275 |        |         | $       | 20,018,700 |        
|Allocated capital                      |                        | $                      |                  |           |         | $       | 1,217,578  |          |         | $       | 1,650     |       |        | $        | 36,827  |       |         | $      | 64,632  |        |         | $       | 1,320,687  |        
|Allocated capital/average total assets |                        |                        | N/A               |           |         |         | 6.40       | %        |         |         | 5.08      | %     |        |          | 5.02    | %     |         |        | 29.48   | %      |         |         | 6.60       | %      
|Operating Data                         |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |        |         |        |         |         |            |        
|Loans produced                         |                        | $                      |                  |           |         | $       | 14,830,907 |          |         | $       |          |       |        | $        |        |       |         | $      |        |        |         | $       | 14,830,907 |        
|Operating expense to loans produced    |                        |                        | N/A               |           |         |         | 0.75       | %        |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 1.02       | %      
|Loans sold                             |                        |                        | N/A               |           |         |         | 11,534,100 |          |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 11,534,100 |        
|Margin on loans sold                   |                        |                        | N/A               |           |         |         | 1.38       | %        |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 1.38       | %      
|Loans serviced for others              |                        |                        | N/A               |           |         |         | 63,675,945 |          |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 63,675,945 |        
|Performance Ratios                     |                        |                        |                   |           |         |         |            |          |         |         |           |       |        |          |         |       |         |        |         |        |         |         |            |        
|Return on equity (ROE)                 |                        |                        | N/A               |           |         |         | 36         | %        |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 25         | %      
|Return on assets (ROA)                 |                        |                        | N/A               |           |         |         | 2.29       | %        |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 1.67       | %      
|Net interest margin                    |                        |                        | N/A               |           |         |         | 2.24       | %        |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 2.08       | %      
|Efficiency ratio                       |                        |                        | N/A               |           |         |         | 38         | %        |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 52         | %      
|Capital adjusted efficiency ratio      |                        |                        | N/A               |           |         |         | 39         | %        |         |         | N/A       |       |        |          | N/A     |       |         |        | N/A     |        |         |         | 59         | %      
|Average FTE                            |                        |                        |                  |           |         |         | 4,635      |          |         |         | 200       |       |        |          | 30      |       |         |        | 760     |        |         |         | 5,625      |        






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.

|                                  |  |                        |         |   |              |   |       |         |  |   |         |   |  |       |        |   |  |   |         |  
|--------------------------------- |  | ---------------------- | ------- | - | ------------ | - | ----- | ------- |  | - | ------- | - |  | ----- | ------ | - |  | - | ------- | -
|                                  |  | Eliminations by Type   |        
|                                  |  |                        |        
|                                  |  | Intercompany           |         |   | MSR Economic |   |       | FAS 91  |  |   |        
|                                  |  | Loan Sales             |         |   | Value        |   |       | Reclass |  |   | Other   |   |  | Total |       
|                                  |  |                        |         |   |              |   |       |         |  |   |         |   |  |       |       
|                                  |  | (Dollars in thousands) |        
|Net interest income               |  | $                      | 7,840   |   |              | $ |      |         |  | $ |        |   |  | $     |       |   |  | $ | 7,840   |  
|Gain (loss) on sale of loans      |  |                        | (51,162 | ) |              |   |      |         |  |   |        |   |  |       |       |   |  |   | (51,162 | )
|Gain (loss) on sale of securities |  |                        | 485     |   |              |   |      |         |  |   |        |   |  |       |       |   |  |   | 485     |  
|Service fee income                |  |                        | 4,411   |   |              |   | 5,293 |         |  |   |        |   |  |       |       |   |  |   | 9,704   |  
|Other income                      |  |                        |        |   |              |   |      |         |  |   | (17,780 | ) |  |       |       |   |  |   | (17,780 | )
|Operating expenses                |  |                        |        |   |              |   |      |         |  |   | 17,780  |   |  |       | (4,016 | ) |  |   | 13,764  |  
|                                  |  |                        |         |   |              |   |       |         |  |   |         |   |  |       |       
|                                  |  | $                      | (38,426 | ) |              | $ | 5,293 |         |  | $ |        |   |  | $     | (4,016 | ) |  | $ | (37,149 | )
|                                  |  |                        |         |   |              |   |       |         |  |   |         |   |  |       |       





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|                                  |  |                        |         |          |            |   |        |       |  |   |         |   |  |       |        |    |            |   |         |    |  |   |         |  
|--------------------------------- |  | ---------------------- | ------- | -------- | ---------- | - | ------ | ----- |  | - | ------- | - |  | ----- | ------ | -- | ---------- | - | ------- | -- |  | - | ------- | -
|                                  |  | Mortgage Banking       |         |          |            |   |        |       | 
|                                  |  |                        |         |          |            |   |        |       | 
|                                  |  |                        |         | Retained |            |   |        |       |  |   |         |   | 
|                                  |  | Production             |         |          | Assets and |   |        |       |  |   |         |   |  | Total |       
|                                  |  | Divisions              |         |          | Servicing  |   |        | Total |  |   | Thrift  |   |  | Other |        |    | Company(1) |  
|                                  |  |                        |         |          |            |   |        |       |  |   |         |   |  |       |        |    |            |  
|                                  |  | (Dollars in thousands) |        
|Net Revenues                      |  |                        |         |          |            |   |        |       |  |   |         |   |  |       |        |    |            |   |         |    |  |   |         |  
|Q2 05                             |  | $                      | 237,345 |          |            | $ | 24,897 |       |  | $ | 262,242 |   |  | $     | 79,103 |    |            | $ | (52,674 | )  |  | $ | 288,671 |  
|Q2 04                             |  |                        | 148,203 |          |            |   | (4,759 | )     |  |   | 143,444 |   |  |       | 84,112 |    |            |   | (29,000 | )  |  |   | 198,556 |  
|Percent Change                    |  |                        | 60      | %        |            |   | 623    | %     |  |   | 83      | % |  |       | (6     | )% |            |   | (82     | )% |  |   | 45      | %
|Q1 05                             |  |                        | 202,537 |          |            |   | 20,086 |       |  |   | 222,623 |   |  |       | 75,236 |    |            |   | (44,510 | )  |  |   | 253,349 |  
|Annualized Percent Change         |  |                        | 69      | %        |            |   | 96     | %     |  |   | 71      | % |  |       | 21     | %  |            |   | (73     | )% |  |   | 56      | %
|Net Income                        |  |                        |         |          |            |   |        |       |  |   |         |   |  |       |        |    |            |   |         |    |  |   |         |  
|Q2 05                             |  |                        | 87,901  |          |            |   | 7,611  |       |  |   | 95,512  |   |  |       | 35,479 |    |            |   | (47,845 | )  |  |   | 83,146  |  
|Q2 04                             |  |                        | 48,721  |          |            |   | (9,459 | )     |  |   | 39,262  |   |  |       | 41,920 |    |            |   | (26,632 | )  |  |   | 54,550  |  
|Percent Change                    |  |                        | 80      | %        |            |   | 180    | %     |  |   | 143     | % |  |       | (15    | )% |            |   | (80     | )% |  |   | 52      | %
|Q1 05                             |  |                        | 70,850  |          |            |   | 5,157  |       |  |   | 76,007  |   |  |       | 34,936 |    |            |   | (45,467 | )  |  |   | 65,476  |  
|Annualized Percent Change         |  |                        | 96      | %        |            |   | 190    | %     |  |   | 103     | % |  |       | 6      | %  |            |   | (21     | )% |  |   | 108     | %
|Performance Ratios                |  |                        |         |          |            |   |        |       |  |   |         |   |  |       |        |    |            |   |         |    |  |   |         |  
|Q2 05                             |  |                        |         |          |            |   |        |       |  |   |         |   |  |       |        |    |            |   |         |    |  |   |         |  
|Return on equity (ROE)            |  |                        | 94      | %        |            |   | 13     | %     |  |   | 62      | % |  |       | 24     | %  |            |   | N/A     |    |  |   | 25      | %
|Return on assets (ROA)            |  |                        | 5.97    | %        |            |   | 2.11   | %     |  |   | 5.21    | % |  |       | 1.22   | %  |            |   | N/A     |    |  |   | 1.67    | %
|Net interest margin               |  |                        | 1.76    | %        |            |   | 8.79   | %     |  |   | 2.38    | % |  |       | 1.89   | %  |            |   | N/A     |    |  |   | 2.08    | %
|Efficiency ratio                  |  |                        | 39      | %        |            |   | 49     | %     |  |   | 40      | % |  |       | 25     | %  |            |   | N/A     |    |  |   | 52      | %
|Capital adjusted efficiency ratio |  |                        | 15      | %        |            |   | 120    | %     |  |   | 23      | % |  |       | 46     | %  |            |   | N/A     |    |  |   | 59      | %
|Average FTE                       |  |                        | 3,621   |          |            |   | 474    |       |  |   | 4,095   |   |  |       | 540    |    |            |   | 990     |    |  |   | 5,625   |  
|Q2 04                             |  |                        |         |          |            |   |        |       |  |   |         |   |  |       |        |    |            |   |         |    |  |   |         |  
|Return on equity (ROE)            |  |                        | 72      | %        |            |   | (19    | )%    |  |   | 33      | % |  |       | 34     | %  |            |   | N/A     |    |  |   | 19      | %
|Return on assets (ROA)            |  |                        | 4.44    | %        |            |   | (2.35  | )%    |  |   | 2.62    | % |  |       | 1.66   | %  |            |   | N/A     |    |  |   | 1.29    | %
|Net interest margin               |  |                        | 3.57    | %        |            |   | 6.69   | %     |  |   | 4.16    | % |  |       | 2.17   | %  |            |   | N/A     |    |  |   | 2.75    | %
|Efficiency ratio                  |  |                        | 46      | %        |            |   | (229   | )%    |  |   | 55      | % |  |       | 17     | %  |            |   | N/A     |    |  |   | 54      | %
|Capital adjusted efficiency ratio |  |                        | 21      | %        |            |   | NM     |       |  |   | 45      | % |  |       | 24     | %  |            |   | N/A     |    |  |   | 75      | %
|Average FTE                       |  |                        | 2,457   |          |            |   | 407    |       |  |   | 2,864   |   |  |       | 404    |    |            |   | 793     |    |  |   | 4,061   |  
|Q1 05                             |  |                        |         |          |            |   |        |       |  |   |         |   |  |       |        |    |            |   |         |    |  |   |         |  
|Return on equity (ROE)            |  |                        | 86      | %        |            |   | 8      | %     |  |   | 52      | % |  |       | 25     | %  |            |   | N/A     |    |  |   | 21      | %
|Return on assets (ROA)            |  |                        | 5.76    | %        |            |   | 1.26   | %     |  |   | 4.63    | % |  |       | 1.29   | %  |            |   | N/A     |    |  |   | 1.43    | %
|Net interest margin               |  |                        | 2.26    | %        |            |   | 6.73   | %     |  |   | 2.94    | % |  |       | 2.19   | %  |            |   | N/A     |    |  |   | 2.49    | %
|Efficiency ratio                  |  |                        | 42      | %        |            |   | 58     | %     |  |   | 44      | % |  |       | 23     | %  |            |   | N/A     |    |  |   | 57      | %
|Capital adjusted efficiency ratio |  |                        | 17      | %        |            |   | 185    | %     |  |   | 29      | % |  |       | 41     | %  |            |   | N/A     |    |  |   | 69      | %
|Average FTE                       |  |                        | 3,454   |          |            |   | 476    |       |  |   | 3,930   |   |  |       | 491    |    |            |   | 1,024   |    |  |   | 5,445   |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For the second quarter of 2004, net revenues, net income and
    performance ratios of the total Company are presented on a pro
    forma basis. The pro forma results excluded the
    $52.2 million SAB No. 105 impact to the gain on
    sale of loans. Please refer to the Highlights for the
    Quarter section on page 4 for full reconciliation
    between pro forma and GAAP results for the quarter ended
    June 30, 2004.

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|                                  |  |                                       |         |           |            |   |         |           |  |   |          |   |  |       |        |    |  |   |         |  
|--------------------------------- |  | ------------------------------------- | ------- | --------- | ---------- | - | ------- | --------- |  | - | -------- | - |  | ----- | ------ | -- |  | - | ------- | -
|                                  |  | Mortgage Banking Production Divisions |         |           |           
|                                  |  |                                       |         |           |           
|                                  |  |                                       |         | Financial |            |   |         |           | 
|                                  |  |                                       |         | Consumer  |            |   | Freedom |           |  |   |          |  
|                                  |  | Mortgage                              |         |           | Direct and |   |         | (Reverse  |  |   |          |   | 
|                                  |  | Professionals                         |         |           | Indirect   |   |         | Mortgage) |  |   | Overhead |   |  | Total |       
|                                  |  |                                       |         |           |            |   |         |           |  |   |          |   |  |       |       
|                                  |  | (Dollars in thousands)                |        
|Net Revenues                      |  |                                       |         |           |            |   |         |           |  |   |          |   |  |       |        |    |  |   |         |  
|Q2 05                             |  | $                                     | 193,570 |           |            | $ | 22,231  |           |  | $ | 21,421   |   |  | $     | 123    |    |  | $ | 237,345 |  
|Q2 04                             |  |                                       | 118,124 |           |            |   | 30,079  |           |  |   |         |   |  |       |       |    |  |   | 148,203 |  
|Percent Change                    |  |                                       | 64      | %         |            |   | (26     | )%        |  |   | N/A      |   |  |       | N/A    |    |  |   | 60      | %
|Q1 05                             |  |                                       | 162,355 |           |            |   | 20,562  |           |  |   | 19,309   |   |  |       | 311    |    |  |   | 202,537 |  
|Annualized Percent Change         |  |                                       | 77      | %         |            |   | 32      | %         |  |   | 44       | % |  |       | (242   | )% |  |   | 69      | %
|Net Income                        |  |                                       |         |           |            |   |         |           |  |   |          |   |  |       |        |    |  |   |         |  
|Q2 05                             |  |                                       | 85,428  |           |            |   | 1,756   |           |  |   | 5,280    |   |  |       | (4,563 | )  |  |   | 87,901  |  
|Q2 04                             |  |                                       | 49,061  |           |            |   | 4,056   |           |  |   |         |   |  |       | (4,396 | )  |  |   | 48,721  |  
|Percent Change                    |  |                                       | 74      | %         |            |   | (57     | )%        |  |   | N/A      |   |  |       | (4     | )% |  |   | 80      | %
|Q1 05                             |  |                                       | 70,515  |           |            |   | (5      | )         |  |   | 4,242    |   |  |       | (3,902 | )  |  |   | 70,850  |  
|Annualized Percent Change         |  |                                       | 85      | %         |            |   | NM      |           |  |   | 98       | % |  |       | (68    | )% |  |   | 96      | %
|Performance Ratios                |  |                                       |         |           |            |   |         |           |  |   |          |   |  |       |        |    |  |   |         |  
|Q2 05                             |  |                                       |         |           |            |   |         |           |  |   |          |   |  |       |        |    |  |   |         |  
|Return on equity (ROE)            |  |                                       | 118     | %         |            |   | 43      | %         |  |   | 35       | % |  |       | N/A    |    |  |   | 94      | %
|Return on assets (ROA)            |  |                                       | 6.44    | %         |            |   | 2.44    | %         |  |   | 9.68     | % |  |       | N/A    |    |  |   | 5.97    | %
|Net interest margin               |  |                                       | 1.75    | %         |            |   | 1.65    | %         |  |   | 1.89     | % |  |       | N/A    |    |  |   | 1.76    | %
|Efficiency ratio                  |  |                                       | 27      | %         |            |   | 87      | %         |  |   | 59       | % |  |       | N/A    |    |  |   | 39      | %
|Capital adjusted efficiency ratio |  |                                       | 10      | %         |            |   | 16      | %         |  |   | 42       | % |  |       | N/A    |    |  |   | 15      | %
|Average FTE                       |  |                                       | 2,050   |           |            |   | 569     |           |  |   | 708      |   |  |       | 294    |    |  |   | 3,621   |  
|Q2 04                             |  |                                       |         |           |            |   |         |           |  |   |          |   |  |       |        |    |  |   |         |  
|Return on equity (ROE)            |  |                                       | 84      | %         |            |   | 46      | %         |  |   | N/A      |   |  |       | N/A    |    |  |   | 72      | %
|Return on assets (ROA)            |  |                                       | 5.22    | %         |            |   | 2.58    | %         |  |   | N/A      |   |  |       | N/A    |    |  |   | 4.44    | %
|Net interest margin               |  |                                       | 3.52    | %         |            |   | 3.86    | %         |  |   | N/A      |   |  |       | N/A    |    |  |   | 3.57    | %
|Efficiency ratio                  |  |                                       | 31      | %         |            |   | 76      | %         |  |   | N/A      |   |  |       | N/A    |    |  |   | 46      | %
|Capital adjusted efficiency ratio |  |                                       | 16      | %         |            |   | 23      | %         |  |   | N/A      |   |  |       | N/A    |    |  |   | 21      | %
|Average FTE                       |  |                                       | 1,466   |           |            |   | 812     |           |  |   |         |   |  |       | 179    |    |  |   | 2,457   |  
|Q1 05                             |  |                                       |         |           |            |   |         |           |  |   |          |   |  |       |        |    |  |   |         |  
|Return on equity (ROE)            |  |                                       | 115     | %         |            |   |        |           |  |   | 29       | % |  |       | N/A    |    |  |   | 86      | %
|Return on assets (ROA)            |  |                                       | 6.52    | %         |            |   | (0.01   | )%        |  |   | 7.98     | % |  |       | N/A    |    |  |   | 5.76    | %
|Net interest margin               |  |                                       | 2.22    | %         |            |   | 2.51    | %         |  |   | 1.78     | % |  |       | N/A    |    |  |   | 2.26    | %
|Efficiency ratio                  |  |                                       | 28      | %         |            |   | 100     | %         |  |   | 64       | % |  |       | N/A    |    |  |   | 42      | %
|Capital adjusted efficiency ratio |  |                                       | 11      | %         |            |   | 22      | %         |  |   | 49       | % |  |       | N/A    |    |  |   | 17      | %
|Average FTE                       |  |                                       | 1,943   |           |            |   | 654     |           |  |   | 639      |   |  |       | 218    |    |  |   | 3,454   |  






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|                                  |  |                                        |        |    |                |   |        |       |  |   |        |   
|--------------------------------- |  | -------------------------------------- | ------ | -- | -------------- | - | ------ | ----- |  | - | ------ | --
|                                  |  | Retained Assets and Servicing Division |       
|                                  |  |                                        |       
|                                  |  | MSRs and                               |        |    |               
|                                  |  | Other Retained                         |        |    | Loan Servicing |   |        |      
|                                  |  | Assets                                 |        |    | Operations     |   |        | Total | 
|                                  |  |                                        |        |    |                |   |        |       | 
|                                  |  | (Dollars in thousands)                 |       
|Net Revenues                      |  |                                        |        |    |                |   |        |       |  |   |        |   
|Q2 05                             |  | $                                      | 24,410 |    |                | $ | 487    |       |  | $ | 24,897 |   
|Q2 04                             |  |                                        | (5,348 | )  |                |   | 589    |       |  |   | (4,759 | ) 
|Percent Change                    |  |                                        | 556    | %  |                |   | (17    | )%    |  |   | 623    | % 
|Q1 05                             |  |                                        | 20,021 |    |                |   | 65     |       |  |   | 20,086 |   
|Annualized Percent Change         |  |                                        | 88     | %  |                |   | NM     |       |  |   | 96     | % 
|Net Income                        |  |                                        |        |    |                |   |        |       |  |   |        |   
|Q2 05                             |  |                                        | 10,237 |    |                |   | (2,626 | )     |  |   | 7,611  |   
|Q2 04                             |  |                                        | (6,141 | )  |                |   | (3,318 | )     |  |   | (9,459 | ) 
|Percent Change                    |  |                                        | 267    | %  |                |   | 21     | %     |  |   | 180    | % 
|Q1 05                             |  |                                        | 7,935  |    |                |   | (2,778 | )     |  |   | 5,157  |   
|Annualized Percent Change         |  |                                        | 116    | %  |                |   | 22     | %     |  |   | 190    | % 
|Performance Ratios                |  |                                        |        |    |                |   |        |       |  |   |        |   
|Q2 05                             |  |                                        |        |    |                |   |        |       |  |   |        |   
|Return on equity (ROE)            |  |                                        | 17     | %  |                |   | N/A    |       |  |   | 13     | % 
|Return on assets (ROA)            |  |                                        | 2.94   | %  |                |   | N/A    |       |  |   | 2.11   | % 
|Net interest margin               |  |                                        | 8.82   | %  |                |   | N/A    |       |  |   | 8.79   | % 
|Efficiency ratio                  |  |                                        | 31     | %  |                |   | N/A    |       |  |   | 49     | % 
|Capital adjusted efficiency ratio |  |                                        | 74     | %  |                |   | N/A    |       |  |   | 120    | % 
|Average FTE                       |  |                                        | 108    |    |                |   | 366    |       |  |   | 474    |   
|Q2 04                             |  |                                        |        |    |                |   |        |       |  |   |        |   
|Return on equity (ROE)            |  |                                        | (12    | )% |                |   | N/A    |       |  |   | (19    | )%
|Return on assets (ROA)            |  |                                        | (1.53  | )% |                |   | N/A    |       |  |   | (2.35  | )%
|Net interest margin               |  |                                        | 6.69   | %  |                |   | N/A    |       |  |   | 6.69   | % 
|Efficiency ratio                  |  |                                        | (90    | )% |                |   | N/A    |       |  |   | (229   | )%
|Capital adjusted efficiency ratio |  |                                        | 861    | %  |                |   | N/A    |       |  |   | 2,463  | % 
|Average FTE                       |  |                                        | 61     |    |                |   | 346    |       |  |   | 407    |   
|Q1 05                             |  |                                        |        |    |                |   |        |       |  |   |        |   
|Return on equity (ROE)            |  |                                        | 13     | %  |                |   | N/A    |       |  |   | 8      | % 
|Return on assets (ROA)            |  |                                        | 2.00   | %  |                |   | N/A    |       |  |   | 1.26   | % 
|Net interest margin               |  |                                        | 6.87   | %  |                |   | N/A    |       |  |   | 6.73   | % 
|Efficiency ratio                  |  |                                        | 34     | %  |                |   | N/A    |       |  |   | 58     | % 
|Capital adjusted efficiency ratio |  |                                        | 109    | %  |                |   | N/A    |       |  |   | 185    | % 
|Average FTE                       |  |                                        | 85     |    |                |   | 391    |       |  |   | 476    |   






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|                                  |  |                        |       |    |           |   |          |             |  |             |              |    |  |              |        |    |           |   |       |              |  |   |        |    |  |   |       |    |  |   |        |   
|--------------------------------- |  | ---------------------- | ----- | -- | --------- | - | -------- | ----------- |  | ----------- | ------------ | -- |  | ------------ | ------ | -- | --------- | - | ----- | ------------ |  | - | ------ | -- |  | - | ----- | -- |  | - | ------ | --
|                                  |  | Thrift                 |      
|                                  |  |                        |      
|                                  |  | Mortgage-              |       |    |           |   | Consumer |             |  | Subdivision |              |    | 
|                                  |  | Backed                 |       |    | Prime SFR |   |          | Home Equity |  |             | Construction |    |  | Construction |        |    | Warehouse |   |       | Discontinued |  |   |       
|                                  |  | Securities             |       |    | Mortgage  |   |          | Lending     |  |             | and Lot      |    |  | Financing    |        |    | Lending   |   |       | Products     |  |   | Total  |   
|                                  |  |                        |       |    |           |   |          |             |  |             |              |    |  |              |        |    |           |   |       |              |  |   |        |   
|                                  |  | (Dollars in thousands) |      
|Net Revenues                      |  |                        |       |    |           |   |          |             |  |             |              |    |  |              |        |    |           |   |       |              |  |   |        |    |  |   |       |    |  |   |        |   
|Q2 05                             |  | $                      | 6,561 |    |           | $ | 21,196   |             |  | $           | 11,668       |    |  | $            | 29,735 |    |           | $ | 9,649 |              |  | $ | 41     |    |  | $ | 253   |    |  | $ | 79,103 |   
|Q2 04                             |  |                        | 9,109 |    |           |   | 27,822   |             |  |             | 7,392        |    |  |              | 32,504 |    |           |   | 7,637 |              |  |   |       |    |  |   | (352  | )  |  |   | 84,112 |   
|Percent Change                    |  |                        | (28   | )% |           |   | (24      | )%          |  |             | 58           | %  |  |              | (9     | )% |           |   | 26    | %            |  |   | N/A    |    |  |   | 172   | %  |  |   | (6     | )%
|Q1 05                             |  |                        | 9,419 |    |           |   | 17,732   |             |  |             | 12,907       |    |  |              | 25,459 |    |           |   | 9,496 |              |  |   | 8      |    |  |   | 215   |    |  |   | 75,236 |   
|Annualized Percent Change         |  |                        | (121  | )% |           |   | 78       | %           |  |             | (38          | )% |  |              | 67     | %  |           |   | 6     | %            |  |   | NM     |    |  |   | 71    | %  |  |   | 21     | % 
|Net Income                        |  |                        |       |    |           |   |          |             |  |             |              |    |  |              |        |    |           |   |       |              |  |   |        |    |  |   |       |    |  |   |        |   
|Q2 05                             |  |                        | 3,824 |    |           |   | 12,544   |             |  |             | 5,240        |    |  |              | 10,240 |    |           |   | 4,208 |              |  |   | (425   | )  |  |   | (152  | )  |  |   | 35,479 |   
|Q2 04                             |  |                        | 5,330 |    |           |   | 16,418   |             |  |             | 3,260        |    |  |              | 14,123 |    |           |   | 3,453 |              |  |   |       |    |  |   | (664  | )  |  |   | 41,920 |   
|Percent Change                    |  |                        | (28   | )% |           |   | (24      | )%          |  |             | 61           | %  |  |              | (27    | )% |           |   | 22    | %            |  |   | N/A    |    |  |   | 77    | %  |  |   | (15    | )%
|Q1 05                             |  |                        | 5,577 |    |           |   | 10,407   |             |  |             | 6,132        |    |  |              | 9,069  |    |           |   | 4,167 |              |  |   | (336   | )  |  |   | (80   | )  |  |   | 34,936 |   
|Annualized Percent Change         |  |                        | (126  | )% |           |   | 82       | %           |  |             | (58          | )% |  |              | 52     | %  |           |   | 4     | %            |  |   | (106   | )% |  |   | (360  | )% |  |   | 6      | % 
|Performance Ratios                |  |                        |       |    |           |   |          |             |  |             |              |    |  |              |        |    |           |   |       |              |  |   |        |    |  |   |       |    |  |   |        |   
|Q2 05                             |  |                        |       |    |           |   |          |             |  |             |              |    |  |              |        |    |           |   |       |              |  |   |        |    |  |   |       |    |  |   |        |   
|Return on equity (ROE)            |  |                        | 33    | %  |           |   | 21       | %           |  |             | 21           | %  |  |              | 34     | %  |           |   | 20    | %            |  |   | (128   | )% |  |   | (14   | )% |  |   | 24     | % 
|Return on assets (ROA)            |  |                        | 0.71  | %  |           |   | 0.99     | %           |  |             | 1.34         | %  |  |              | 1.96   | %  |           |   | 2.27  | %            |  |   | (11.79 | )% |  |   | (1.42 | )% |  |   | 1.22   | % 
|Net interest margin               |  |                        | 1.10  | %  |           |   | 1.40     | %           |  |             | 1.89         | %  |  |              | 2.51   | %  |           |   | 5.34  | %            |  |   | 1.54   | %  |  |   | 6.37  | %  |  |   | 1.89   | % 
|Efficiency ratio                  |  |                        | 4     | %  |           |   | 2        | %           |  |             | 26           | %  |  |              | 42     | %  |           |   | 27    | %            |  |   | NM     |    |  |   | 63    | %  |  |   | 25     | % 
|Capital adjusted efficiency ratio |  |                        | 7     | %  |           |   | 6        | %           |  |             | 54           | %  |  |              | 42     | %  |           |   | 56    | %            |  |   | NM     |    |  |   | 87    | %  |  |   | 46     | % 
|Average FTE                       |  |                        | 5     |    |           |   | 10       |             |  |             | 26           |    |  |              | 377    |    |           |   | 90    |              |  |   | 18     |    |  |   | 14    |    |  |   | 540    |   
|Q2 04                             |  |                        |       |    |           |   |          |             |  |             |              |    |  |              |        |    |           |   |       |              |  |   |        |    |  |   |       |    |  |   |        |   
|Return on equity (ROE)            |  |                        | 50    | %  |           |   | 28       | %           |  |             | 22           | %  |  |              | 61     | %  |           |   | 21    | %            |  |   | N/A    |    |  |   | (48   | )% |  |   | 34     | % 
|Return on assets (ROA)            |  |                        | 1.07  | %  |           |   | 1.37     | %           |  |             | 1.39         | %  |  |              | 3.40   | %  |           |   | 2.17  | %            |  |   | N/A    |    |  |   | (4.73 | )% |  |   | 1.66   | % 
|Net interest margin               |  |                        | 1.78  | %  |           |   | 1.30     | %           |  |             | 2.56         | %  |  |              | 3.68   | %  |           |   | 4.92  | %            |  |   | N/A    |    |  |   | 7.27  | %  |  |   | 2.17   | % 
|Efficiency ratio                  |  |                        | 3     | %  |           |   | 2        | %           |  |             | 27           | %  |  |              | 27     | %  |           |   | 24    | %            |  |   | N/A    |    |  |   | 65    | %  |  |   | 17     | % 
|Capital adjusted efficiency ratio |  |                        | 4     | %  |           |   | 5        | %           |  |             | 52           | %  |  |              | 19     | %  |           |   | 50    | %            |  |   | N/A    |    |  |   | 79    | %  |  |   | 24     | % 
|Average FTE                       |  |                        | 4     |    |           |   | 9        |             |  |             | 16           |    |  |              | 285    |    |           |   | 65    |              |  |   |       |    |  |   | 25    |    |  |   | 404    |   
|Q1 05                             |  |                        |       |    |           |   |          |             |  |             |              |    |  |              |        |    |           |   |       |              |  |   |        |    |  |   |       |    |  |   |        |   
|Return on equity (ROE)            |  |                        | 48    | %  |           |   | 19       | %           |  |             | 22           | %  |  |              | 35     | %  |           |   | 23    | %            |  |   | NM     |    |  |   | (7    | )% |  |   | 25     | % 
|Return on assets (ROA)            |  |                        | 1.03  | %  |           |   | 0.91     | %           |  |             | 1.59         | %  |  |              | 1.95   | %  |           |   | 2.53  | %            |  |   | NM     |    |  |   | (0.71 | )% |  |   | 1.29   | % 
|Net interest margin               |  |                        | 1.74  | %  |           |   | 1.53     | %           |  |             | 2.28         | %  |  |              | 2.95   | %  |           |   | 5.55  | %            |  |   | 5.52   | %  |  |   | 6.84  | %  |  |   | 2.19   | % 
|Efficiency ratio                  |  |                        | 2     | %  |           |   | 3        | %           |  |             | 21           | %  |  |              | 40     | %  |           |   | 26    | %            |  |   | NM     |    |  |   | 39    | %  |  |   | 23     | % 
|Capital adjusted efficiency ratio |  |                        | 3     | %  |           |   | 8        | %           |  |             | 46           | %  |  |              | 41     | %  |           |   | 48    | %            |  |   | NM     |    |  |   | 52    | %  |  |   | 41     | % 
|Average FTE                       |  |                        | 5     |    |           |   | 10       |             |  |             | 27           |    |  |              | 336    |    |           |   | 85    |              |  |   | 15     |    |  |   | 13    |    |  |   | 491    |   






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|                                  |  |                        |         |           |         |   |         |          |  |   |           |   |  |          |        |   |         |   |         |    |  |   |         |  
|--------------------------------- |  | ---------------------- | ------- | --------- | ------- | - | ------- | -------- |  | - | --------- | - |  | -------- | ------ | - | ------- | - | ------- | -- |  | - | ------- | -
|                                  |  |                        |         | Total     |         |   |         |          |  |   |           |   | 
|                                  |  |                        |         | Operating |         |   |         |          |  |   | Corporate |   |  | Total    |       
|                                  |  | Eliminations           |         |           | Results |   |         | Deposits |  |   | Treasury  |   |  | Overhead |        |   | Company |  
|                                  |  |                        |         |           |         |   |         |          |  |   |           |   |  |          |        |   |         |  
|                                  |  | (Dollars in thousands) |        
|Net Revenues                      |  |                        |         |           |         |   |         |          |  |   |           |   |  |          |        |   |         |   |         |    |  |   |         |  
|Q2 05                             |  | $                      | (50,913 | )         |         | $ | 290,432 |          |  | $ | 618       |   |  | $        | (412   | ) |         | $ | (1,967  | )  |  | $ | 288,671 |  
|Q2 04                             |  |                        | (21,379 | )         |         |   | 206,177 |          |  |   | 537       |   |  |          | (7,560 | ) |         |   | (598    | )  |  |   | 198,556 |  
|Percent Change                    |  |                        | (138    | )%        |         |   | 41      | %        |  |   | 15        | % |  |          | 95     | % |         |   | (229    | )% |  |   | 45      | %
|Q1 05                             |  |                        | (43,579 | )         |         |   | 254,280 |          |  |   | 504       |   |  |          | 169    |   |         |   | (1,604  | )  |  |   | 253,349 |  
|Annualized Percent Change         |  |                        | (67     | )%        |         |   | 57      | %        |  |   | 90        | % |  |          | NM     |   |         |   | (91     | )% |  |   | 56      | %
|Net Income                        |  |                        |         |           |         |   |         |          |  |   |           |   |  |          |        |   |         |   |         |    |  |   |         |  
|Q2 05                             |  |                        | (22,475 | )         |         |   | 108,516 |          |  |   | (1,676    | ) |  |          | (1,149 | ) |         |   | (22,545 | )  |  |   | 83,146  |  
|Q2 04                             |  |                        | (5,452  | )         |         |   | 75,730  |          |  |   | (2,012    | ) |  |          | (5,024 | ) |         |   | (14,144 | )  |  |   | 54,550  |  
|Percent Change                    |  |                        | (312    | )%        |         |   | 43      | %        |  |   | 17        | % |  |          | 77     | % |         |   | (59     | )% |  |   | 52      | %
|Q1 05                             |  |                        | (18,465 | )         |         |   | 92,478  |          |  |   | (2,621    | ) |  |          | 35     |   |         |   | (24,416 | )  |  |   | 65,476  |  
|Annualized Percent Change         |  |                        | (87     | )%        |         |   | 69      | %        |  |   | 144       | % |  |          | NM     |   |         |   | 31      | %  |  |   | 108     | %
|Performance Ratios                |  |                        |         |           |         |   |         |          |  |   |           |   |  |          |        |   |         |   |         |    |  |   |         |  
|Q2 05                             |  |                        |         |           |         |   |         |          |  |   |           |   |  |          |        |   |         |   |         |    |  |   |         |  
|Return on equity (ROE)            |  |                        | N/A     |           |         |   | 36      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 25      | %
|Return on assets (ROA)            |  |                        | N/A     |           |         |   | 2.29    | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 1.67    | %
|Net interest margin               |  |                        | N/A     |           |         |   | 2.24    | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 2.08    | %
|Efficiency ratio                  |  |                        | N/A     |           |         |   | 38      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 52      | %
|Capital adjusted efficiency ratio |  |                        | N/A     |           |         |   | 39      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 59      | %
|Average FTE                       |  |                        |        |           |         |   | 4,635   |          |  |   | 200       |   |  |          | 30     |   |         |   | 760     |    |  |   | 5,625   |  
|Q2 04                             |  |                        |         |           |         |   |         |          |  |   |           |   |  |          |        |   |         |   |         |    |  |   |         |  
|Return on equity (ROE)            |  |                        | N/A     |           |         |   | 31      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 19      | %
|Return on assets (ROA)            |  |                        | N/A     |           |         |   | 1.88    | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 1.29    | %
|Net interest margin               |  |                        | N/A     |           |         |   | 3.03    | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 2.75    | %
|Efficiency ratio                  |  |                        | N/A     |           |         |   | 39      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 54      | %
|Capital adjusted efficiency ratio |  |                        | N/A     |           |         |   | 45      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 75      | %
|Average FTE                       |  |                        |        |           |         |   | 3,268   |          |  |   | 159       |   |  |          | 24     |   |         |   | 610     |    |  |   | 4,061   |  
|Q1 05                             |  |                        |         |           |         |   |         |          |  |   |           |   |  |          |        |   |         |   |         |    |  |   |         |  
|Return on equity (ROE)            |  |                        | N/A     |           |         |   | 32      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 21      | %
|Return on assets (ROA)            |  |                        | N/A     |           |         |   | 2.12    | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 1.43    | %
|Net interest margin               |  |                        | N/A     |           |         |   | 2.60    | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 2.49    | %
|Efficiency ratio                  |  |                        | N/A     |           |         |   | 39      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 57      | %
|Capital adjusted efficiency ratio |  |                        | N/A     |           |         |   | 44      | %        |  |   | N/A       |   |  |          | N/A    |   |         |   | N/A     |    |  |   | 69      | %
|Average FTE                       |  |                        |        |           |         |   | 4,421   |          |  |   | 183       |   |  |          | 28     |   |         |   | 813     |    |  |   | 5,445   |  






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|                                   |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |        |        |           |         |         |         |            |         |         |        | 
|---------------------------------- | ---------------------- | ---------------------- | ----------------- | --------- | ---------- | ------ | --------- | ----------- | ------ | ------ | ---------- | ------ | ------ | ---------- | ------- | ------ | ----- | ----- | ------ | ------- | ------ | ------ | --------- | ------- | ------- | ------- | ---------- | ------- | ------- | ------ | 
|                                   |                        |                        |                   | Specialty |            |        |           |             |        |        | Loan       |        |        |            |         |       
|                                   |                        | Standard               |                   |           | Consumer   |        |           | Home Loans  |        |        | Specialty  |        |        | Servicing  |         |        |       |       |       
|                                   |                        | Consumer Home          |                   |           | Home Loans |        |           | & Related   |        |        | Commercial |        |        | Operations |         |        |       |       | Total  |        
|                                   |                        | Loans HFS              |                   |           | HFI/HFS    |        |           | Investments |        |        | Loans      |        |        | Expense    |         |        | Other |       |        | Company |       
|                                   |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |       
|                                   |                        | (Dollars in thousands) |                  
|Operating Results                  |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |        |        |           |         |         |         |            |        
|Net interest income                |                        | $                      | 22,113            |           |            | $      | 25,291    |             |        | $      | 36,730     |        |        | $          | 12,133  |        |       | $     | (33    | )       |        | $      | 171       |         |         | $       | 96,405     |        
|Provision for loan losses          |                        |                        |                  |           |            |        | (988      | )           |        |        | (700       | )      |        |            | (719    | )      |       |       |       |         |        |        |          |         |         |         | (2,407     | )      
|Gain (loss) on sale of loans       |                        |                        | 120,961           |           |            |        | 35,400    |             |        |        | 3,016      |        |        |            |        |        |       |       |       |         |        |        |          |         |         |         | 159,377    |        
|Service fee income                 |                        |                        | (3                | )         |            |        | 4,511     |             |        |        | 998        |        |        |            |        |        |       |       |       |         |        |        | 5,293     |         |         |         | 10,799     |        
|Gain (loss) on sale of securities  |                        |                        |                  |           |            |        | 281       |             |        |        | 15,570     |        |        |            |        |        |       |       |       |         |        |        |          |         |         |         | 15,851     |        
|Other income                       |                        |                        | 13,661            |           |            |        | 7,747     |             |        |        | 2,306      |        |        |            | 657     |        |       |       | 520    |         |        |        | (16,245   | )       |         |         | 8,646      |        
|                                   |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |       
|                                   | Net revenues (expense) |                        |                   | 156,732   |            |        |           | 72,242      |        |        |            | 57,920 |        |            |         | 12,071 |       |       |        | 487     |        |        |           | (10,781 | )       |         |            | 288,671 |        
|                                   | Operating expenses     |                        |                   | 73,402    |            |        |           | 34,111      |        |        |            | 7,816  |        |            |         | 4,645  |       |       |        | 4,827   |        |        |           | 26,233  |         |         |            | 151,034 |        
|                                   |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |       
|                                   |                        | Pretax income (loss)   |                   |           | 83,330     |        |           |             | 38,131 |        |            |        | 50,104 |            |         |        | 7,426 |       |        |         | (4,340 | )      |           |         | (37,014 | )       |            |         | 137,637 |       
|                                   |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |       
|                                   |                        |                        | Net income (loss) |           | $          | 50,414 |           |             | $      | 23,052 |            |        | $      | 30,314     |         |        | $     | 4,493 |        |         | $      | (2,626 | )         |         | $       | (22,501 | )          |         | $       | 83,146 | 
|                                   |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |       
|Balance Sheet Data                 |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |        |        |           |         |         |         |            |        
|Average interest-earning assets(1) |                        | $                      | 5,423,226         |           |            | $      | 3,782,144 |             |        | $      | 7,713,653  |        |        | $          | 928,628 |        |       | $     |       |         |        | $      | 712,921   |         |         | $       | 18,560,572 |        
|Average total assets               |                        | $                      | 5,529,276         |           |            | $      | 3,855,431 |             |        | $      | 8,580,761  |        |        | $          | 923,174 |        |       | $     | 51,968 |         |        | $      | 1,078,090 |         |         | $       | 20,018,700 |        
|Allocated capital                  |                        | $                      | 306,793           |           |            | $      | 224,829   |             |        | $      | 526,743    |        |        | $          | 102,369 |        |       | $     | 5,183  |         |        | $      | 154,770   |         |         | $       | 1,320,687  |        
|Performance Ratios                 |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |        |        |           |         |         |         |            |        
|Return on equity (ROE)             |                        |                        | 66                | %         |            |        | 41        | %           |        |        | 23         | %      |        |            | 18      | %      |       |       | N/A    |         |        |        | N/A       |         |         |         | 25         | %      
|Net interest margin                |                        |                        | 1.64              | %         |            |        | 2.68      | %           |        |        | 1.91       | %      |        |            | 5.24    | %      |       |       | N/A    |         |        |        | N/A       |         |         |         | 2.08       | %      
|Gain on sale margin                |                        |                        | 1.25              | %         |            |        | 2.27      | %           |        |        | N/A        |        |        |            | N/A     |        |       |       | N/A    |         |        |        | N/A       |         |         |         | 1.38       | %      
|Efficiency ratio                   |                        |                        | 47                | %         |            |        | 47        | %           |        |        | 13         | %      |        |            | 36      | %      |       |       | N/A    |         |        |        | N/A       |         |         |         | 52         | %      
|Capital adjusted efficiency ratio  |                        |                        | 23                | %         |            |        | 36        | %           |        |        | 30         | %      |        |            | 73      | %      |       |       | N/A    |         |        |        | N/A       |         |         |         | 59         | %      
|Operating Data                     |                        |                        |                   |           |            |        |           |             |        |        |            |        |        |            |         |        |       |       |        |         |        |        |           |         |         |         |            |        
|Loan production                    |                        |                        | 11,552,867        |           |            |        | 2,405,560 |             |        |        | 150,578    |        |        |            | 721,902 |        |       |       |       |         |        |        |          |         |         |         | 14,830,907 |        
|Loans sold                         |                        |                        | 9,661,726         |           |            |        | 1,561,461 |             |        |        | 310,913    |        |        |            |        |        |       |       |       |         |        |        |          |         |         |         | 11,534,100 |        






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.

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|                                   |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |         |         |         |         |            |         |        |        | 
|---------------------------------- | ---------------------- | ------------------------------------------ | ----------------- | ----- | ----- | ----- | ---------- | -------- | ------- | ------ | ------- | ------ | ------ | ----- | ------- | ------- | ------- | ------- | ---------- | ------- | ------ | ------ | 
|                                   |                        | Standard Consumer Home Loans Held for Sale |                  
|                                   |                        |                                            |                  
|                                   |                        | Agency                                     |                   |       |       |       | Fixed      |          |         |       
|                                   |                        | Conforming/                                |                   |       |       |       | Operating  |          |         |       
|                                   |                        | Jumbo                                      |                   |       | Alt-A |       |            | Subprime |         |        | Expense |        |        | Total |        
|                                   |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |        
|                                   |                        | (Dollars in thousands)                     |                  
|Operating Results                  |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |         |         |         |         |            |        
|Net interest income                |                        | $                                          | 1,837             |       |       | $     | 15,378     |          |         | $      | 4,767   |        |        | $     | 131     |         |         | $       | 22,113     |        
|Provision for loan losses          |                        |                                            |                  |       |       |       |           |          |         |        |        |        |        |       |        |         |         |         |           |        
|Gain (loss) on sale of loans       |                        |                                            | 5,473             |       |       |       | 132,717    |          |         |        | 8,619   |        |        |       | (25,848 | )       |         |         | 120,961    |        
|Service fee income                 |                        |                                            |                  |       |       |       | (3         | )        |         |        |        |        |        |       |        |         |         |         | (3         | )      
|Gain (loss) on sale of securities  |                        |                                            |                  |       |       |       |           |          |         |        |        |        |        |       |        |         |         |         |           |        
|Other income                       |                        |                                            | 1,242             |       |       |       | 9,094      |          |         |        | 3,333   |        |        |       | (8      | )       |         |         | 13,661     |        
|                                   |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |        
|                                   | Net revenues (expense) |                                            |                   | 8,552 |       |       |            | 157,186  |         |        |         | 16,719 |        |       |         | (25,725 | )       |         |            | 156,732 |       
|                                   | Operating expenses     |                                            |                   | 3,512 |       |       |            | 37,809   |         |        |         | 4,418  |        |       |         | 27,663  |         |         |            | 73,402  |       
|                                   |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |        
|                                   |                        | Pretax income (loss)                       |                   |       | 5,040 |       |            |          | 119,377 |        |         |        | 12,301 |       |         |         | (53,388 | )       |            |         | 83,330 |       
|                                   |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |        
|                                   |                        |                                            | Net income (loss) |       | $     | 3,049 |            |          | $       | 72,223 |         |        | $      | 7,442 |         |         | $       | (32,300 | )          |         | $      | 50,414 | 
|                                   |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |        
|Balance Sheet Data                 |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |         |         |         |         |            |        
|Average interest-earning assets(1) |                        | $                                          | 329,056           |       |       | $     | 4,475,332  |          |         | $      | 618,761 |        |        | $     | 77      |         |         | $       | 5,423,226  |        
|Average total assets               |                        | $                                          | 330,633           |       |       | $     | 4,496,767  |          |         | $      | 621,725 |        |        | $     | 80,151  |         |         | $       | 5,529,276  |        
|Allocated capital                  |                        | $                                          | 17,367            |       |       | $     | 237,086    |          |         | $      | 45,095  |        |        | $     | 7,245   |         |         | $       | 306,793    |        
|Performance Ratios                 |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |         |         |         |         |            |        
|Return on equity (ROE)             |                        |                                            | 70                | %     |       |       | 122        | %        |         |        | 66      | %      |        |       | N/A     |         |         |         | 66         | %      
|Net interest margin                |                        |                                            | 2.24              | %     |       |       | 1.38       | %        |         |        | 3.09    | %      |        |       | N/A     |         |         |         | 1.64       | %      
|Gain on sale margin                |                        |                                            | 0.97              | %     |       |       | 1.59       | %        |         |        | 1.18    | %      |        |       | N/A     |         |         |         | 1.25       | %      
|Efficiency ratio                   |                        |                                            | 41                | %     |       |       | 24         | %        |         |        | 26      | %      |        |       | N/A     |         |         |         | 47         | %      
|Capital adjusted efficiency ratio  |                        |                                            | 21                | %     |       |       | 9          | %        |         |        | 18      | %      |        |       | N/A     |         |         |         | 23         | %      
|Operating Data                     |                        |                                            |                   |       |       |       |            |          |         |        |         |        |        |       |         |         |         |         |            |        
|Loan production                    |                        | $                                          | 522,026           |       |       | $     | 10,487,478 |          |         | $      | 543,363 |        |        | $     |        |         |         | $       | 11,552,867 |        
|Loans sold                         |                        | $                                          | 561,930           |       |       | $     | 8,366,952  |          |         | $      | 732,844 |        |        | $     |        |         |         | $       | 9,661,726  |        






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.



|                         |  |                                                                                                                                                                                                                                                                                                            
|------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Agency Conforming/ Jumbo |  | First mortgage loans for sale that meet the underwriting
    guidelines of Fannie Mae and Freddie Mac. Also includes loans
    that meet all these guidelines, but exceed the loan size
    acceptable to these agencies.                                                                                  
|                        
|Alt-A                    |  | First mortgage loans for sale that have prime credit
    characteristics, but do not meet the GSE underwriting guidelines.                                                                                                                                                                                 
|                        
|Subprime                 |  | Includes marginal product performance of first mortgage loans
    that are extended to borrowers with impaired credit with one or
    more of the following characteristics: 1) FICO score of
    less than 620; 2) late mortgage payment in the last
    12 months; and 3) bankruptcy in the last 2 years.

20



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|                                   |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |        |     |      |      |           |        |        |        | 
|---------------------------------- | ---------------------- | ------------------------------------------------------------- | ----------------- | ------ | --------- | ----- | ------- | ------- | ----- | ----- | ------------ | ------ | ------ | ------ | ------ | --- | ---- | ---- | --------- | ------ | ------ | ------ | 
|                                   |                        | Specialty Consumer Home Loans Held for Sale and/or Investment |                  
|                                   |                        |                                                               |                  
|                                   |                        | HELOC/                                                        |                   |        | Reverse   |       |         |        
|                                   |                        | Seconds                                                       |                   |        | Mortgages |       |         | CTP/Lot |       |       | Discontinued |        |        | Total  |       
|                                   |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |       
|                                   |                        | (Dollars in thousands)                                        |                  
|Operating Results                  |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |        |     |      |      |           |       
|Net interest income                |                        | $                                                             | 10,614            |        |           | $     | 502     |         |       | $     | 13,383       |        |        | $      | 792    |     |      | $    | 25,291    |       
|Provision for loan losses          |                        |                                                               |                  |        |           |       |        |         |       |       | (438         | )      |        |        | (550   | )   |      |      | (988      | )     
|Gain (loss) on sale of loans       |                        |                                                               | 5,439             |        |           |       | 17,228  |         |       |       | 12,723       |        |        |        | 10     |     |      |      | 35,400    |       
|Service fee income                 |                        |                                                               | 1,476             |        |           |       | 3,035   |         |       |       |             |        |        |        |       |     |      |      | 4,511     |       
|Gain (loss) on sale of securities  |                        |                                                               | 397               |        |           |       |        |         |       |       | (116         | )      |        |        |       |     |      |      | 281       |       
|Other income                       |                        |                                                               | 2,012             |        |           |       | 656     |         |       |       | 5,078        |        |        |        | 1      |     |      |      | 7,747     |       
|                                   |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |       
|                                   | Net revenues (expense) |                                                               |                   | 19,938 |           |       |         | 21,421  |       |       |              | 30,630 |        |        |        | 253 |      |      |           | 72,242 |       
|                                   | Operating expenses     |                                                               |                   | 9,341  |           |       |         | 12,665  |       |       |              | 11,601 |        |        |        | 504 |      |      |           | 34,111 |       
|                                   |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |       
|                                   |                        | Pretax income (loss)                                          |                   |        | 10,597    |       |         |         | 8,756 |       |              |        | 19,029 |        |        |     | (251 | )    |           |        | 38,131 |       
|                                   |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |       
|                                   |                        |                                                               | Net income (loss) |        | $         | 6,411 |         |         | $     | 5,280 |              |        | $      | 11,513 |        |     | $    | (152 | )         |        | $      | 23,052 | 
|                                   |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |       
|Balance Sheet Data                 |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |        |     |      |      |           |       
|Average interest-earning assets(1) |                        | $                                                             | 1,703,771         |        |           | $     | 106,543 |         |       | $     | 1,921,925    |        |        | $      | 49,905 |     |      | $    | 3,782,144 |       
|Average total assets               |                        | $                                                             | 1,719,723         |        |           | $     | 170,426 |         |       | $     | 1,922,352    |        |        | $      | 42,930 |     |      | $    | 3,855,431 |       
|Allocated capital                  |                        | $                                                             | 104,732           |        |           | $     | 11,705  |         |       | $     | 103,955      |        |        | $      | 4,437  |     |      | $    | 224,829   |       
|Performance Ratios                 |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |        |     |      |      |           |       
|Return on equity (ROE)             |                        |                                                               | 25                | %      |           |       | 181     | %       |       |       | 44           | %      |        |        | (14    | )%  |      |      | 41        | %     
|Net interest margin                |                        |                                                               | 2.50              | %      |           |       | 1.89    | %       |       |       | 2.79         | %      |        |        | 6.37   | %   |      |      | 2.68      | %     
|Gain on sale margin                |                        |                                                               | 1.69              | %      |           |       | 2.80    | %       |       |       | 2.04         | %      |        |        | N/A    |     |      |      | 2.27      | %     
|Efficiency ratio                   |                        |                                                               | 47                | %      |           |       | 59      | %       |       |       | 37           | %      |        |        | 63     | %   |      |      | 47        | %     
|Capital adjusted efficiency ratio  |                        |                                                               | 62                | %      |           |       | 8       | %       |       |       | 31           | %      |        |        | 87     | %   |      |      | 36        | %     
|Operating Data                     |                        |                                                               |                   |        |           |       |         |         |       |       |              |        |        |        |        |     |      |      |           |       
|Loan production                    |                        |                                                               | 538,369           |        |           |       | 639,380 |         |       |       | 1,227,811    |        |        |        |       |     |      |      | 2,405,560 |       
|Loans sold                         |                        |                                                               | 322,678           |        |           |       | 614,436 |         |       |       | 624,347      |        |        |        |       |     |      |      | 1,561,461 |       






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.



|                  |  |                                                                                                                
|----------------- |  | ---------------------------------------------------------------------------------------------------------------
|HELOCs/ Seconds   |  | Home equity lines of credit and closed-end second mortgages.                                                   
|                 
|Reverse Mortgages |  | Reverse mortgage loans extended to borrowers age 62 and
    older secured by equity in a primary residence.    
|                 
|CTP/ Lot          |  | Consumer construction and lot loans, as well as loans converted
    to permanent status that are held for sale.
|                 
|Discontinued      |  | Manufactured housing and home improvement loans.                                                               

21



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|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |           |        |        |        |        |       |        |        |  
|---------------------------------- | ---------------------- | ---------------------------------- | ----------------- | ------ | ------ | ------ | --------- | ---------- | ----- | ----- | --------- | -------------- | ------ | ------- | --------- | ------ | ------ | ------ | ------ | ----- | ------ | ------ | -
|                                   |                        | Home Loans and Related Investments |                   |        |       
|                                   |                        |                                    |                   |        |       
|                                   |                        | Retained Assets                    |                   |        |        |        | SFR Loans |            |       |       |           | Loan Servicing |       
|                                   |                        | and Retention                      |                   |        |        |        | Held for  |            |       |       |           | Operations     |       
|                                   |                        | Activities                         |                   |        | MBS    |        |           | Investment |       |       | Total     |                |        | Expense |          
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|                                   |                        | (Dollars in thousands)             |                  
|Operating Results                  |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |           |        |        |        |        |      
|Net interest income                |                        | $                                  | 12,219            |        |        | $      | 5,838     |            |       | $     | 18,673    |                |        | $       | 36,730    |        |        | $      | (33    | )    
|Provision for loan losses          |                        |                                    |                  |        |        |        |          |            |       |       | (700      | )              |        |         | (700      | )      |        |        |       |      
|Gain (loss) on sale of loans       |                        |                                    | 128               |        |        |        |          |            |       |       | 2,888     |                |        |         | 3,016     |        |        |        |       |      
|Service fee income                 |                        |                                    | 720               |        |        |        |          |            |       |       | 278       |                |        |         | 998       |        |        |        |       |      
|Gain (loss) on sale of securities  |                        |                                    | 14,846            |        |        |        | 724       |            |       |       |          |                |        |         | 15,570    |        |        |        |       |      
|Other income                       |                        |                                    | 1,393             |        |        |        | (1        | )          |       |       | 914       |                |        |         | 2,306     |        |        |        | 520    |      
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|                                   | Net revenues (expense) |                                    |                   | 29,306 |        |        |           | 6,561      |       |       |           | 22,053         |        |         |           | 57,920 |        |        |        | 487   |       
|                                   | Operating expenses     |                                    |                   | 7,113  |        |        |           | 241        |       |       |           | 462            |        |         |           | 7,816  |        |        |        | 4,827 |       
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|                                   |                        | Pretax income (loss)               |                   |        | 22,193 |        |           |            | 6,320 |       |           |                | 21,591 |         |           |        | 50,104 |        |        |       | (4,340 | )     
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|                                   |                        |                                    | Net income (loss) |        | $      | 13,427 |           |            | $     | 3,824 |           |                | $      | 13,063  |           |        | $      | 30,314 |        |       | $      | (2,626 | )
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|Balance Sheet Data                 |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |           |        |        |        |        |      
|Average interest-earning assets(1) |                        | $                                  | 555,790           |        |        | $      | 2,131,235 |            |       | $     | 5,026,628 |                |        | $       | 7,713,653 |        |        | $      |       |      
|Average total assets               |                        | $                                  | 1,397,460         |        |        | $      | 2,145,998 |            |       | $     | 5,037,303 |                |        | $       | 8,580,761 |        |        | $      | 51,968 |      
|Allocated capital                  |                        | $                                  | 235,766           |        |        | $      | 47,037    |            |       | $     | 243,940   |                |        | $       | 526,743   |        |        | $      | 5,183  |      
|Performance Ratios                 |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |           |        |        |        |        |      
|Return on equity (ROE)             |                        |                                    | 23                | %      |        |        | 33        | %          |       |       | 21        | %              |        |         | 23        | %      |        |        | N/A    |      
|Net interest margin                |                        |                                    | 8.82              | %      |        |        | 1.10      | %          |       |       | 1.49      | %              |        |         | 1.91      | %      |        |        | N/A    |      
|Gain on sale margin                |                        |                                    | 0.06              | %      |        |        | N/A       |            |       |       | N/A       |                |        |         | N/A       |        |        |        | N/A    |      
|Efficiency ratio                   |                        |                                    | 24                | %      |        |        | 4         | %          |       |       | 2         | %              |        |         | 13        | %      |        |        | N/A    |      
|Capital adjusted efficiency ratio  |                        |                                    | 49                | %      |        |        | 7         | %          |       |       | 5         | %              |        |         | 30        | %      |        |        | N/A    |      
|Operating Data                     |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |           |        |        |        |        |      
|Loan production                    |                        | $                                  | 150,578           |        |        | $      |          |            |       | $     |          |                |        | $       | 150,578   |        |        | $      |       |      
|Loans sold                         |                        | $                                  | 199,614           |        |        | $      |          |            |       | $     | 111,299   |                |        | $       | 310,913   |        |        | $      |       |      






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.



|                                         |  |                                                                                                                                                                                                                                           
|---------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Retained Assets and Retention Activities |  | Mortgage banking and trading activity associated with the
    purchase, management and sale of mortgage banking assets and
    variable cash flow instruments. Activity also includes loans
    originated through the servicing function.
|                                        
|MBS                                      |  | Trading and investment activity related to the purchase,
    management and sale of investment grade mortgage-backed
    securities.                                                                                                      
|                                        
|SFR Loans Held for Investment            |  | Company-wide loan investment activity related to the purchase,
    management and sale of single family residential mortgage loans
    held for investment.                                                                               
|                                        
|Loan Servicing Operations Expense        |  | Includes all fixed operating costs associated with servicing
    loans held for sale, held for investment and loans serviced for
    others that are not allocated to the respective products for
    which these services are provided.  

22



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|                                   |                        |                                                |                   |       |             |     |           |         |       |       |        |     |      |      |         |        |       |       | 
|---------------------------------- | ---------------------- | ---------------------------------------------- | ----------------- | ----- | ----------- | --- | --------- | ------- | ----- | ----- | ------ | --- | ---- | ---- | ------- | ------ | ----- | ----- | 
|                                   |                        | Specialty Commercial Loans Held for Investment |                  
|                                   |                        |                                                |                  
|                                   |                        | Single                                         |                   |       |             |     | Warehouse |         |       |      
|                                   |                        | Spec                                           |                   |       | Subdivision |     |           | Lending |       |       | Total  |    
|                                   |                        |                                                |                   |       |             |     |           |         |       |       |        |    
|                                   |                        | (Dollars in thousands)                         |                  
|Operating Results                  |                        |                                                |                   |       |             |     |           |         |       |       |        |     |      |      |         |       
|Net interest income                |                        | $                                              | 2,352             |       |             | $   | 9,732     |         |       | $     | 49     |     |      | $    | 12,133  |       
|Provision for loan losses          |                        |                                                | (135              | )     |             |     | (500      | )       |       |       | (84    | )   |      |      | (719    | )     
|Gain (loss) on sale of loans       |                        |                                                |                  |       |             |     |          |         |       |       |       |     |      |      |        |       
|Service fee income                 |                        |                                                |                  |       |             |     |          |         |       |       |       |     |      |      |        |       
|Gain (loss) on sale of securities  |                        |                                                |                  |       |             |     |          |         |       |       |       |     |      |      |        |       
|Other income                       |                        |                                                | 443               |       |             |     | 138       |         |       |       | 76     |     |      |      | 657     |       
|                                   |                        |                                                |                   |       |             |     |           |         |       |       |        |    
|                                   | Net revenues (expense) |                                                |                   | 2,660 |             |     |           | 9,370   |       |       |        | 41  |      |      |         | 12,071 |      
|                                   | Operating expenses     |                                                |                   | 1,209 |             |     |           | 2,693   |       |       |        | 743 |      |      |         | 4,645  |      
|                                   |                        |                                                |                   |       |             |     |           |         |       |       |        |    
|                                   |                        | Pretax income (loss)                           |                   |       | 1,451       |     |           |         | 6,677 |       |        |     | (702 | )    |         |        | 7,426 |      
|                                   |                        |                                                |                   |       |             |     |           |         |       |       |        |    
|                                   |                        |                                                | Net income (loss) |       | $           | 878 |           |         | $     | 4,040 |        |     | $    | (425 | )       |        | $     | 4,493 | 
|                                   |                        |                                                |                   |       |             |     |           |         |       |       |        |    
|Balance Sheet Data                 |                        |                                                |                   |       |             |     |           |         |       |       |        |     |      |      |         |       
|Average interest-earning assets(1) |                        | $                                              | 164,501           |       |             | $   | 751,327   |         |       | $     | 12,800 |     |      | $    | 928,628 |       
|Average total assets               |                        | $                                              | 163,544           |       |             | $   | 745,170   |         |       | $     | 14,460 |     |      | $    | 923,174 |       
|Allocated capital                  |                        | $                                              | 15,493            |       |             | $   | 85,547    |         |       | $     | 1,329  |     |      | $    | 102,369 |       
|Performance Ratios                 |                        |                                                |                   |       |             |     |           |         |       |       |        |     |      |      |         |       
|Return on equity (ROE)             |                        |                                                | 23                | %     |             |     | 19        | %       |       |       | N/A    |     |      |      | 18      | %     
|Net interest margin                |                        |                                                | 5.73              | %     |             |     | 5.20      | %       |       |       | N/A    |     |      |      | 5.24    | %     
|Gain on sale margin                |                        |                                                | N/A               |       |             |     | N/A       |         |       |       | N/A    |     |      |      | N/A     |       
|Efficiency ratio                   |                        |                                                | 43                | %     |             |     | 27        | %       |       |       | N/A    |     |      |      | 36      | %     
|Capital adjusted efficiency ratio  |                        |                                                | 60                | %     |             |     | 59        | %       |       |       | N/A    |     |      |      | 73      | %     
|Operating Data                     |                        |                                                |                   |       |             |     |           |         |       |       |        |     |      |      |         |       
|Loan production                    |                        |                                                | 89,676            |       |             |     | 594,226   |         |       |       | 38,000 |     |      |      | 721,902 |       
|Loans sold                         |                        |                                                |                  |       |             |     |          |         |       |       |       |     |      |      |        |       






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.



|                         |  |                                                                                                               
|------------------------ |  | --------------------------------------------------------------------------------------------------------------
|Single Spec              |  | Loans that are made to homebuilders to build 1-4 custom homes
    for resale to consumers.                    
|                        
|Subdivision Construction |  | Subdivision lending for commercial acquisition, development and
    construction loans to commercial builders.
|                        
|Warehouse Lending        |  | Warehouse lines of credit to mortgage brokers to finance their
    inventory of loans prior to sale.          

23



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##### Table of Contents





|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |         |         |         |            |         |         |        | 
|---------------------------------- | ---------------------- | ---------------------- | ----------------- | ----- | -------- | ------ | ------- | ------------ | ------ | ------ | ------------- | ------- | ------- | ------- | ---------- | ------- | ------- | ------ | 
|                                   |                        | Deposits               |                   |       | Treasury |        |         | Corporate OH |        |        | Total Company |        
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |        
|                                   |                        | (Dollars in thousands) |                  
|Operating Results                  |                        |                        |                   |       |          |        |         |              |        |        |               |         |         |         |            |        
|Net interest income                |                        | $                      | 3,467             |       |          | $      | (540    | )            |        | $      | (2,756        | )       |         | $       | 96,405     |        
|Provision for loan losses          |                        |                        |                  |       |          |        |        |              |        |        |              |         |         |         | (2,407     | )      
|Gain (loss) on sale of loans       |                        |                        |                  |       |          |        |        |              |        |        |              |         |         |         | 159,377    |        
|Service fee income                 |                        |                        |                  |       |          |        |        |              |        |        | 5,293         |         |         |         | 10,799     |        
|Gain (loss) on sale of securities  |                        |                        |                  |       |          |        |        |              |        |        |              |         |         |         | 15,851     |        
|Other income                       |                        |                        | 618               |       |          |        | 128     |              |        |        | (16,991       | )       |         |         | 8,646      |        
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |        
|                                   | Net revenues (expense) |                        |                   | 4,085 |          |        |         | (412         | )      |        |               | (14,454 | )       |         |            | 288,671 |        
|                                   | Operating expenses     |                        |                   | 6,856 |          |        |         | 1,487        |        |        |               | 17,890  |         |         |            | 151,034 |        
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |        
|                                   |                        | Pretax income (loss)   |                   |       | (2,771   | )      |         |              | (1,899 | )      |               |         | (32,344 | )       |            |         | 137,637 |       
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |        
|                                   |                        |                        | Net income (loss) |       | $        | (1,676 | )       |              | $      | (1,149 | )             |         | $       | (19,676 | )          |         | $       | 83,146 | 
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |        
|Balance Sheet Data                 |                        |                        |                   |       |          |        |         |              |        |        |               |         |         |         |            |        
|Average interest-earning assets(1) |                        | $                      | 172               |       |          | $      | 711,067 |              |        | $      | 1,682         |         |         | $       | 18,560,572 |        
|Average total assets               |                        | $                      | 32,480            |       |          | $      | 734,031 |              |        | $      | 311,579       |         |         | $       | 20,018,700 |        
|Allocated capital                  |                        | $                      | 1,650             |       |          | $      | 36,827  |              |        | $      | 116,293       |         |         | $       | 1,320,687  |        
|Performance Ratios                 |                        |                        |                   |       |          |        |         |              |        |        |               |         |         |         |            |        
|Return on equity (ROE)             |                        |                        | N/A               |       |          |        | N/A     |              |        |        | N/A           |         |         |         | 25         | %      
|Net interest margin                |                        |                        | N/A               |       |          |        | N/A     |              |        |        | N/A           |         |         |         | 2.08       | %      
|Gain on sale margin                |                        |                        | N/A               |       |          |        | N/A     |              |        |        | N/A           |         |         |         | 1.38       | %      
|Efficiency ratio                   |                        |                        | N/A               |       |          |        | N/A     |              |        |        | N/A           |         |         |         | 52         | %      
|Capital adjusted efficiency ratio  |                        |                        | N/A               |       |          |        | N/A     |              |        |        | N/A           |         |         |         | 59         | %      
|Operating Data                     |                        |                        |                   |       |          |        |         |              |        |        |               |         |         |         |            |        
|Loan production                    |                        | $                      |                  |       |          | $      |        |              |        | $      |              |         |         | $       | 14,830,907 |        
|Loans sold                         |                        | $                      |                  |       |          | $      |        |              |        | $      |              |         |         | $       | 11,534,100 |        






|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The allowance for loan losses is excluded from average loan
    balances for purposes of calculating average interest-earning
    assets.



|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                
|------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Deposits           |  | Includes all deposit generating activities to raise deposits
    from retail bank branch customers to be used in certain lending
    activities. The Deposits group is organized as a cost center
    whereby its interest expense from deposits is offset by
    allocations from Treasury.                                                                                                                   
|                  
|Treasury           |  | Includes all financing activity related to providing funds (FHLB
    and private borrowings, debt and other securities issuances and
    deposits generation) to IndyMac businesses to fund loans and
    investments. The use of funds is charged to each business unit
    according to IndyMacs capital allocation and funds
    transfer pricing methodology with the difference residing in
    Treasury.
|                  
|Corporate Overhead |  | Includes all corporate fixed costs that do not vary in the short
    term with changes in business activity. Fixed costs include
    corporate administration, financial management, enterprise risk
    management, centralized information technology and other
    unallocated fixed costs.                                                                                                                 

24



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##### Table of Contents






MORTGAGE BANKING







Loan Production








|                                        |                   |                              |       |        |          |   |       |         |       |  |           |     |    |         |       |       |        |  |    |     |    |  
|--------------------------------------- | ----------------- | ---------------------------- | ----- | ------ | -------- | - | ----- | ------- | ----- |  | --------- | --- | -- | ------- | ----- | ----- | ------ |  | -- | --- | -- | -
|                                        |                   | Three Months Ended           |      
|                                        |                   |                              |      
|                                        |                   | June 30,                     |       |        | June 30, |   |       | Percent |       |  | March 31, |     |    | Percent |      
|                                        |                   | 2005                         |       |        | 2004     |   |       | Change  |       |  | 2005      |     |    | Change  |      
|                                        |                   |                              |       |        |          |   |       |         |       |  |           |     |    |         |      
|                                        |                   | (Dollars in millions)        |      
|Volume by product:                      |                   |                              |       |        |          |   |       |         |       |  |           |     |    |         |       |       |        |  |    |    
|Prime(1)                                |                   |                              |       |        |          |   |       |         |       |  |           |     |    |         |       |       |        |  |    |    
|                                        | Alt-A             |                              | $     | 11,053 |          |   | $     | 6,447   |       |  |           | 71  | %  |         | $     | 8,693 |        |  |    | 27  | % 
|                                        | Agency conforming |                              |       | 241    |          |   |       | 511     |       |  |           | (53 | )% |         |       | 287   |        |  |    | (16 | )%
|                                        | Jumbo             |                              |       | 352    |          |   |       | 730     |       |  |           | (52 | )% |         |       | 518   |        |  |    | (32 | )%
|                                        | Reverse mortgages |                              |       | 639    |          |   |       |        |       |  |           | N/A |    |         |       | 507   |        |  |    | 26  | % 
|Subprime(1)                             |                   |                              | 546   |        |          |   | 567   |         |       |  | (4        | )%  |    |         | 555   |       |        |  | (2 | )% 
|Home equity line of credit(2)           |                   |                              | 451   |        |          |   | 408   |         |       |  | 11        | %   |    |         | 343   |       |        |  | 31 | %  
|Consumer construction(2)                |                   |                              | 917   |        |          |   | 760   |         |       |  | 21        | %   |    |         | 699   |       |        |  | 31 | %  
|                                        |                   |                              |       |        |          |   |       |         |       |  |           |     |    |         |      
|                                        |                   | Subtotal mortgage production |       |        | 14,199   |   |       |         | 9,423 |  |           |     | 51 | %       |       |       | 11,602 |  |    |     | 22 | %
|Subdivision construction commitments(2) |                   |                              | 594   |        |          |   | 304   |         |       |  | 95        | %   |    |         | 353   |       |        |  | 68 | %  
|Warehouse lending(2)                    |                   |                              | 38    |        |          |   |      |         |       |  | N/A       |     |    |         | 20    |       |        |  | 90 | %  
|                                        |                   |                              |       |        |          |   |       |         |       |  |           |     |    |         |      
|                                        |                   | Total production             |       | $      | 14,831   |   |       | $       | 9,727 |  |           |     | 52 | %       |       | $     | 11,975 |  |    |     | 24 | %
|                                        |                   |                              |       |        |          |   |       |         |       |  |           |     |    |         |      
|Mortgage  Web-based production         |                   | $                            | 9,133 |        |          | $ | 5,973 |         |       |  | 53        | %   |    | $       | 7,482 |       |        |  | 22 | %  
|Mortgage pipeline at period end(3)      |                   | $                            | 8,294 |        |          | $ | 5,179 |         |       |  | 60        | %   |    | $       | 7,489 |       |        |  | 11 | %  






|    |                 
|--- | ----------------
|(1) | Fundings.       
|   
|(2) | New commitments.

25



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|    |                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|(3) | Includes rate lock commitments for loans in process plus loans
    that have been submitted for processing, but not yet rate locked.



|                               |                                     |                           |   |       |          |  |   |         |       |  |           |     |    |         |   |       |        |  |  |    |    |  
|------------------------------ | ----------------------------------- | ------------------------- | - | ----- | -------- |  | - | ------- | ----- |  | --------- | --- | -- | ------- | - | ----- | ------ |  |  | -- | -- | -
|                               |                                     | Three Months Ended        |  
|                               |                                     |                           |  
|                               |                                     | June 30,                  |   |       | June 30, |  |   | Percent |       |  | March 31, |     |    | Percent |  
|                               |                                     | 2005                      |   |       | 2004     |  |   | Change  |       |  | 2005      |     |    | Change  |  
|                               |                                     |                           |   |       |          |  |   |         |       |  |           |     |    |         |  
|                               |                                     | (Dollars in millions)     |  
|Production by Delivery Method: |                                     |                           |   |       |          |  |   |         |       |  |           |     |    |         |   |       |        |  |  |   
|                               | Wholesale(1)                        |                           | $ | 6,903 |          |  | $ | 4,717   |       |  |           | 46  | %  |         | $ | 5,664 |        |  |  | 22 | % 
|                               | Correspondent(2)                    |                           |   | 6,252 |          |  |   | 3,020   |       |  |           | 107 | %  |         |   | 4,942 |        |  |  | 27 | % 
|                               | Retail(3)                           |                           |   | 1,044 |          |  |   | 1,686   |       |  |           | (38 | )% |         |   | 996   |        |  |  | 5  | % 
|                               |                                     |                           |   |       |          |  |   |         |       |  |           |     |    |         |  
|                               |                                     | Total mortgage production |   |       | 14,199   |  |   |         | 9,423 |  |           |     | 51 | %       |   |       | 11,602 |  |  |    | 22 | %
|                               | Subdivision construction commitment |                           |   | 594   |          |  |   | 304     |       |  |           | 95  | %  |         |   | 353   |        |  |  | 68 | % 
|                               | Warehouse lending commitments       |                           |   | 38    |          |  |   |        |       |  |           | N/A |    |         |   | 20    |        |  |  | 90 | % 
|                               |                                     |                           |   |       |          |  |   |         |       |  |           |     |    |         |  
|                               |                                     | Total Production          |   | $     | 14,831   |  |   | $       | 9,727 |  |           |     | 52 | %       |   | $     | 11,975 |  |  |    | 24 | %
|                               |                                     |                           |   |       |          |  |   |         |       |  |           |     |    |         |  






|    |                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Loans obtained through relationships with mortgage brokers and
    funded by IndyMac Bank.                                                                                                                                       
|   
|(2) | Closed loans acquired by IndyMac through relationships with
    mortgage bankers and financial institutions on a flow basis, as
    well as loans obtained through bulk purchases by our mortgage
    professional conduit group.
|   
|(3) | Direct to consumer channels.                                                                                                                                                                                                     

|                                               |                      |                    |      |     |          |  |      |           |  |  |      |     | 
|---------------------------------------------- | -------------------- | ------------------ | ---- | --- | -------- |  | ---- | --------- |  |  | ---- | --- | 
|                                               |                      | Three Months Ended |     
|                                               |                      |                    |     
|                                               |                      | June 30,           |      |     | June 30, |  |      | March 31, | 
|                                               |                      | 2005               |      |     | 2004     |  |      | 2005      | 
|                                               |                      |                    |      |     |          |  |      |           | 
|Production by Interest Rate Amortization Type: |                      |                    |      |     |          |  |      |           |  |  |      |    
|                                               | Fixed Rate Mortgages |                    |      | 26% |          |  |      | 39%       |  |  |      | 26% | 
|                                               | Hybrid ARMs          |                    |      | 31% |          |  |      | 36%       |  |  |      | 33% | 
|                                               | ARMs                 |                    |      | 43% |          |  |      | 25%       |  |  |      | 41% | 
|                                               |                      |                    |      |     |          |  |      |           | 
|                                               |                      |                    | 100% |     |          |  | 100% |           |  |  | 100% |    
|                                               |                      |                    |      |     |          |  |      |           | 

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|                                               |  |                                      |        |   |          |   |       |         |  |  |           |    |  |         |        |   |  |  |    |  
|---------------------------------------------- |  | ------------------------------------ | ------ | - | -------- | - | ----- | ------- |  |  | --------- | -- |  | ------- | ------ | - |  |  | -- | -
|                                               |  | As of and For the Three Months Ended |       
|                                               |  |                                      |       
|                                               |  | June 30,                             |        |   | June 30, |   |       | Percent |  |  | March 31, |    |  | Percent |       
|                                               |  | 2005                                 |        |   | 2004     |   |       | Change  |  |  | 2005      |    |  | Change  |       
|                                               |  |                                      |        |   |          |   |       |         |  |  |           |    |  |         |       
|                                               |  | (Dollars in millions)                |       
|Mortgage loan production:                      |  |                                      |        |   |          |   |       |         |  |  |           |    |  |         |        |   |  |  |    |  
|Purchase transactions                          |  | $                                    | 6,370  |   |          | $ | 3,882 |         |  |  | 64        | %  |  | $       | 4,895  |   |  |  | 30 | %
|Cash-out refinance transactions                |  |                                      | 6,336  |   |          |   | 3,301 |         |  |  | 92        | %  |  |         | 5,342  |   |  |  | 19 | %
|Rate/term refinance transactions               |  |                                      | 1,493  |   |          |   | 2,240 |         |  |  | (33       | )% |  |         | 1,365  |   |  |  | 9  | %
|                                               |  |                                      |        |   |          |   |       |         |  |  |           |    |  |         |       
|Total mortgage loan production                 |  | $                                    | 14,199 |   |          | $ | 9,423 |         |  |  | 51        | %  |  | $       | 11,602 |   |  |  | 22 | %
|                                               |  |                                      |        |   |          |   |       |         |  |  |           |    |  |         |       
|% purchase and cash-out refinance transactions |  |                                      | 89     | % |          |   | 76    | %       |  |  |           |    |  |         | 88     | % |  |  |    |  
|Mortgage pipeline:                             |  |                                      |        |   |          |   |       |         |  |  |           |    |  |         |        |   |  |  |    |  
|Purchase transactions                          |  | $                                    | 3,681  |   |          | $ | 2,542 |         |  |  | 45        | %  |  | $       | 3,296  |   |  |  | 12 | %
|Cash-out refinance transactions                |  |                                      | 3,457  |   |          |   | 1,737 |         |  |  | 99        | %  |  |         | 3,036  |   |  |  | 14 | %
|Rate/term refinance transactions               |  |                                      | 1,156  |   |          |   | 900   |         |  |  | 28        | %  |  |         | 1,157  |   |  |  | 0  | %
|                                               |  |                                      |        |   |          |   |       |         |  |  |           |    |  |         |       
|Mortgage pipeline at period end                |  | $                                    | 8,294  |   |          | $ | 5,179 |         |  |  | 60        | %  |  | $       | 7,489  |   |  |  | 11 | %
|                                               |  |                                      |        |   |          |   |       |         |  |  |           |    |  |         |       
|% purchase and cash-out refinance transactions |  |                                      | 86     | % |          |   | 83    | %       |  |  |           |    |  |         | 85     | % |  |  |    |  





|                                        |                   |                              |        |        |          |   |        |         |        |  |     |     |    |  
|--------------------------------------- | ----------------- | ---------------------------- | ------ | ------ | -------- | - | ------ | ------- | ------ |  | --- | --- | -- | -
|                                        |                   | Six Months Ended             |       
|                                        |                   |                              |       
|                                        |                   | June 30,                     |        |        | June 30, |   |        | Percent |       
|                                        |                   | 2005                         |        |        | 2004     |   |        | Change  |       
|                                        |                   |                              |        |        |          |   |        |         |       
|                                        |                   | (Dollars in millions)        |       
|Volume by product:                      |                   |                              |        |        |          |   |        |         |        |  |     |    
|Prime(1)                                |                   |                              |        |        |          |   |        |         |        |  |     |    
|                                        | Alt-A             |                              | $      | 19,746 |          |   | $      | 10,785  |        |  |     | 83  | % 
|                                        | Agency conforming |                              |        | 528    |          |   |        | 1,098   |        |  |     | (52 | )%
|                                        | Jumbo             |                              |        | 870    |          |   |        | 1,366   |        |  |     | (36 | )%
|                                        | Reverse mortgages |                              |        | 1,146  |          |   |        |        |        |  |     | N/A |   
|Subprime(1)                             |                   |                              | 1,101  |        |          |   | 1,063  |         |        |  | 4   | %  
|Home equity line of credit(2)           |                   |                              | 794    |        |          |   | 652    |         |        |  | 22  | %  
|Consumer construction(2)                |                   |                              | 1,616  |        |          |   | 1,363  |         |        |  | 19  | %  
|                                        |                   |                              |        |        |          |   |        |         |       
|                                        |                   | Subtotal mortgage production |        |        | 25,801   |   |        |         | 16,327 |  |     |     | 58 | %
|Subdivision construction commitments(2) |                   |                              | 947    |        |          |   | 546    |         |        |  | 73  | %  
|Warehouse lending(2)                    |                   |                              | 58     |        |          |   |       |         |        |  | N/A |    
|                                        |                   |                              |        |        |          |   |        |         |       
|                                        |                   | Total production             |        | $      | 26,806   |   |        | $       | 16,873 |  |     |     | 59 | %
|                                        |                   |                              |        |        |          |   |        |         |       
|Mortgage  Web-based production         |                   | $                            | 16,615 |        |          | $ | 10,292 |         |        |  | 61  | %  






|    |                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|(1) | Fundings.                                                                                                                           
|   
|(2) | New commitments.                                                                                                                    
|   
|(3) | Includes rate lock commitments for loans in process plus loans
    that have been submitted for processing, but not yet rate locked.

27



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##### Table of Contents






Mortgage Production by Division




|                         |            |          |  |    |          |   |  |    |     |  
|------------------------ | ---------- | -------- |  | -- | -------- | - |  | -- | --- | -
|                         |            | June 30, |  |    | June 30, |  
|                         |            | 2005     |  |    | 2004     |  
|                         |            |          |  |    |          |  
|Geographic distribution: |            |          |  |    |          |   |  |   
|                         | California |          |  | 44 | %        |   |  | 49 | %  
|                         | New York   |          |  | 9  | %        |   |  | 7  | %  
|                         | Florida    |          |  | 7  | %        |   |  | 6  | %  
|                         | New Jersey |          |  | 4  | %        |   |  | 4  | %  
|                         | Michigan   |          |  | 4  | %        |   |  | 3  | %  
|                         | Other      |          |  | 32 | %        |   |  | 31 | %  
|                         |            |          |  |    |          |  
|                         |            | Total    |  |    | 100      | % |  |    | 100 | %
|                         |            |          |  |    |          |  



|                            |                                           |                                  |                  |       |          |        |   |         |       |       |           |     |     |         |   |       |        |        |  |     |    |    |  
|--------------------------- | ----------------------------------------- | -------------------------------- | ---------------- | ----- | -------- | ------ | - | ------- | ----- | ----- | --------- | --- | --- | ------- | - | ----- | ------ | ------ |  | --- | -- | -- | -
|                            |                                           | Three Months Ended               |                 
|                            |                                           |                                  |                 
|                            |                                           | June 30,                         |                  |       | June 30, |        |   | Percent |       |       | March 31, |     |     | Percent |  
|                            |                                           | 2005                             |                  |       | 2004     |        |   | Change  |       |       | 2005      |     |     | Change  |  
|                            |                                           |                                  |                  |       |          |        |   |         |       |       |           |     |     |         |  
|                            |                                           | (Dollars in millions)            |                 
|Mortgage Loan Production:   |                                           |                                  |                  |       |          |        |   |         |       |       |           |     |     |         |   |       |        |        |  |    
|                            | Mortgage Professionals, excluding Conduit |                                  | $                | 8,612 |          |        | $ | 5,372   |       |       |           | 60  | %   |         | $ | 6,909 |        |        |  | 25  | % 
|                            | Mortgage Professionals, Conduit           |                                  |                  | 3,207 |          |        |   | 1,792   |       |       |           | 79  | %   |         |   | 2,605 |        |        |  | 23  | % 
|                            | Consumer Direct and Indirect              |                                  |                  | 738   |          |        |   | 1,229   |       |       |           | (40 | )%  |         |   | 686   |        |        |  | 8   | % 
|                            | Financial Freedom                         |                                  |                  | 639   |          |        |   |        |       |       |           | N/A |     |         |   | 507   |        |        |  | 26  | % 
|                            | Servicing Retention                       |                                  |                  | 174   |          |        |   | 418     |       |       |           | (58 | )%  |         |   | 222   |        |        |  | (22 | )%
|                            | HELOC                                     |                                  |                  | 56    |          |        |   | 44      |       |       |           | 27  | %   |         |   | 42    |        |        |  | 33  | % 
|                            | Consumer Construction and Lot             |                                  | $                | 773   |          |        | $ | 568     |       |       |           | 36  | %   |         | $ | 631   |        |        |  | 23  | % 
|                            |                                           |                                  |                  |       |          |        |   |         |       |       |           |     |     |         |  
|                            |                                           | Total Mortgage Loan Production   |                  | $     | 14,199   |        |   | $       | 9,423 |       |           |     | 51  | %       |   | $     | 11,602 |        |  |     | 22 | % 
|Commercial Loan Production: |                                           |                                  |                  |       |          |        |   |         |       |       |           |     |     |         |   |       |        |        |  |    
|                            | Subdivision Construction                  |                                  | $                | 594   |          |        | $ | 304     |       |       |           | 95  | %   |         | $ | 353   |        |        |  | 68  | % 
|                            | Warehouse Lending                         |                                  |                  | 38    |          |        |   |        |       |       |           | N/A |     |         |   | 20    |        |        |  | 90  | % 
|                            |                                           |                                  |                  |       |          |        |   |         |       |       |           |     |     |         |  
|                            |                                           | Total Commercial Loan Production |                  | $     | 632      |        |   | $       | 304   |       |           |     | 108 | %       |   | $     | 373    |        |  |     | 69 | % 
|                            |                                           |                                  |                  |       |          |        |   |         |       |       |           |     |     |         |  
|                            |                                           |                                  | Total Production |       | $        | 14,831 |   |         | $     | 9,727 |           |     |     | 52      | % |       | $      | 11,975 |  |     |    | 24 | %
|                            |                                           |                                  |                  |       |          |        |   |         |       |       |           |     |     |         |  

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|                            |                                           |                                  |                  |        |          |        |   |         |        |        |  |     |    |    |  
|--------------------------- | ----------------------------------------- | -------------------------------- | ---------------- | ------ | -------- | ------ | - | ------- | ------ | ------ |  | --- | -- | -- | -
|                            |                                           | Six Months Ended                 |                 
|                            |                                           |                                  |                 
|                            |                                           | June 30,                         |                  |        | June 30, |        |   | Percent |       
|                            |                                           | 2005                             |                  |        | 2004     |        |   | Change  |       
|                            |                                           |                                  |                  |        |          |        |   |         |       
|                            |                                           | (Dollars in millions)            |                 
|Mortgage Loan Production:   |                                           |                                  |                  |        |          |        |   |         |        |        |  |    
|                            | Mortgage Professionals, excluding Conduit |                                  | $                | 15,521 |          |        | $ | 9,246   |        |        |  | 68  | % 
|                            | Mortgage Professionals, Conduit           |                                  |                  | 5,812  |          |        |   | 2,962   |        |        |  | 96  | % 
|                            | Consumer Direct and Indirect              |                                  |                  | 1,424  |          |        |   | 2,305   |        |        |  | (38 | )%
|                            | Financial Freedom                         |                                  |                  | 1,146  |          |        |   |        |        |        |  | N/A |   
|                            | Servicing Retention                       |                                  |                  | 396    |          |        |   | 700     |        |        |  | (43 | )%
|                            | HELOC                                     |                                  |                  | 98     |          |        |   | 79      |        |        |  | 24  | % 
|                            | Consumer Construction and Lot             |                                  | $                | 1,404  |          |        | $ | 1,035   |        |        |  | 36  | % 
|                            |                                           |                                  |                  |        |          |        |   |         |       
|                            |                                           | Total Mortgage Loan Production   |                  | $      | 25,801   |        |   | $       | 16,327 |        |  |     | 58 | % 
|Commercial Loan Production: |                                           |                                  |                  |        |          |        |   |         |        |        |  |    
|                            | Subdivision Construction                  |                                  | $                | 947    |          |        | $ | 546     |        |        |  | 73  | % 
|                            | Warehouse Lending                         |                                  |                  | 58     |          |        |   |        |        |        |  | N/A |   
|                            |                                           |                                  |                  |        |          |        |   |         |       
|                            |                                           | Total Commercial Loan Production |                  | $      | 1,005    |        |   | $       | 546    |        |  |     | 84 | % 
|                            |                                           |                                  |                  |        |          |        |   |         |       
|                            |                                           |                                  | Total Production |        | $        | 26,806 |   |         | $      | 16,873 |  |     |    | 59 | %
|                            |                                           |                                  |                  |        |          |        |   |         |       







29



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|                                        |                                     |                       |      |       |          |  |     |         |  |  |           |    |   |         |       |       |  |  |      |    |  
|--------------------------------------- | ----------------------------------- | --------------------- | ---- | ----- | -------- |  | --- | ------- |  |  | --------- | -- | - | ------- | ----- | ----- |  |  | ---- | -- | -
|                                        |                                     | Three Months Ended    |     
|                                        |                                     |                       |     
|                                        |                                     | June 30,              |      |       | June 30, |  |     | Percent |  |  | March 31, |    |   | Percent |      
|                                        |                                     | 2005                  |      |       | 2004     |  |     | Change  |  |  | 2005      |    |   | Change  |      
|                                        |                                     |                       |      |       |          |  |     |         |  |  |           |    |   |         |      
|                                        |                                     | (Dollars in millions) |     
|Key Performance Indicators:             |                                     |                       |      |       |          |  |     |         |  |  |           |    |   |         |       |       |  |  |      |   
|Active Customers:(1)                    |                                     |                       |      |       |          |  |     |         |  |  |           |    |   |         |       |       |  |  |      |   
|                                        | Average monthly active customers    |                       |      | 3,600 |          |  |     | 2,527   |  |  |           | 42 | % |         |       | 3,059 |  |  |      | 18 | %
|                                        | Active customers during the quarter |                       |      | 6,191 |          |  |     | 4,273   |  |  |           | 45 | % |         |       | 5,394 |  |  |      | 15 | %
|Net new customers during the quarter(2) |                                     |                       | (402 | )     |          |  | 874 |         |  |  | (146      | )% |   |         | 1,286 |       |  |  | (131 | )%
|Sales personnel                         |                                     |                       | 678  |       |          |  | 476 |         |  |  | 42        | %  |   |         | 640   |       |  |  | 6    | % 






|    |                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Active customers are defined as customers who funded at least
    one loan during the most recent 90-day period.                                                                                                                                           
|   
|(2) | Net new customers are the number of new customers signed up
    during the period less those terminated. During the quarter
    ended June 30, 2005, the number of terminated customers
    exceeded the number of new customers, mostly due to inactivity.




Loan Sales








30



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|                                     |  |                       |      |   |          |   |      |         |  |  |           |    |  |         |      |   |  |  |      |   
|------------------------------------ |  | --------------------- | ---- | - | -------- | - | ---- | ------- |  |  | --------- | -- |  | ------- | ---- | - |  |  | ---- | --
|                                     |  | Three Months Ended    |     
|                                     |  |                       |     
|                                     |  | June 30,              |      |   | June 30, |   |      | Percent |  |  | March 31, |    |  | Percent |     
|                                     |  | 2005                  |      |   | 2004(1)  |   |      | Change  |  |  | 2005      |    |  | Change  |     
|                                     |  |                       |      |   |          |   |      |         |  |  |           |    |  |         |     
|                                     |  | (Dollars in millions) |     
|Gross gain on mortgage loan sales(1) |  | $                     | 204  |   |          | $ | 54   |         |  |  | 278       | %  |  | $       | 117  |   |  |  | 74   | % 
|Gross margin before hedging          |  |                       | 1.77 | % |          |   | 0.71 | %       |  |  | 149       | %  |  |         | 1.22 | % |  |  | 45   | % 
|Gross hedging gains (losses)         |  | $                     | (45  | ) |          | $ | 64   |         |  |  | (170      | )% |  | $       | 27   |   |  |  | (267 | )%
|Net gains on sale(1)                 |  | $                     | 159  |   |          | $ | 118  |         |  |  | 35        | %  |  | $       | 144  |   |  |  | 10   | % 
|Net margin after hedging(1)          |  |                       | 1.38 | % |          |   | 1.55 | %       |  |  | (11       | )% |  |         | 1.49 | % |  |  | (7   | )%






|    |                                                                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The gain on mortgage loan sales for the three months ended
    June 30, 2004 excludes the $52.2 million
    SAB No. 105 adjustment. The GAAP gain on mortgage loan
    sales was $66.1 million for the three months ended
    June 30, 2004 representing a net margin after hedging of
    0.87%.

|                                     |  |                       |      |   |          |   |      |         |  |  |      |   
|------------------------------------ |  | --------------------- | ---- | - | -------- | - | ---- | ------- |  |  | ---- | --
|                                     |  | Six Months Ended      |     
|                                     |  |                       |     
|                                     |  | June 30,              |      |   | June 30, |   |      | Percent | 
|                                     |  | 2005                  |      |   | 2004(1)  |   |      | Change  | 
|                                     |  |                       |      |   |          |   |      |         | 
|                                     |  | (Dollars in millions) |     
|Gross gain on mortgage loan sales(1) |  | $                     | 322  |   |          | $ | 181  |         |  |  | 78   | % 
|Gross margin before hedging          |  |                       | 1.52 | % |          |   | 1.44 | %       |  |  | 6    | % 
|Gross hedging gains (losses)         |  | $                     | (18  | ) |          | $ | 21   |         |  |  | (186 | )%
|Net gains on sale(1)                 |  | $                     | 304  |   |          | $ | 202  |         |  |  | 50   | % 
|Net margin after hedging(1)          |  |                       | 1.43 | % |          |   | 1.61 | %       |  |  | (11  | )%






|    |                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The gain on mortgage loan sales for the six months ended
    June 30, 2004 excludes the $52.2 million
    SAB No. 105 adjustment. The GAAP gain on mortgage loan
    sales was $149.8 million for the six months ended
    June 30, 2004 representing a net margin after hedging of
    1.20%.



Accounting for Derivative Instruments and Hedging
Activities, Application of Accounting
Principles to Loan Commitments.




31



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|                         |                              |                        |            |         |            |  |      |          |   |   |            |         |  |           |      |      |            |   |           |         |  |  |      |      |  
|------------------------ | ---------------------------- | ---------------------- | ---------- | ------- | ---------- |  | ---- | -------- | - | - | ---------- | ------- |  | --------- | ---- | ---- | ---------- | - | --------- | ------- |  |  | ---- | ---- | -
|                         |                              | Three Months Ended     |           
|                         |                              |                        |           
|                         |                              | June 30,               |            |         | % of Loans |  |      | June 30, |   |   | % of Loans |         |  | March 31, |      |      | % of Loans |  
|                         |                              | 2005                   |            |         | Sold       |  |      | 2004(1)  |   |   | Sold       |         |  | 2005      |      |      | Sold       |  
|                         |                              |                        |            |         |            |  |      |          |   |   |            |         |  |           |      |      |            |  
|                         |                              | (Dollars in thousands) |           
|Gain on sale of loans(1) |                              | $                      | 159,377    |         |            |  | 1.38 | %        |   | $ | 118,307    |         |  |           | 1.55 | %    |            | $ | 144,322   |         |  |  | 1.49 | %   
|Net interest income      |                              |                        | 28,407     |         |            |  | 0.25 | %        |   |   | 50,391     |         |  |           | 0.66 | %    |            |   | 32,522    |         |  |  | 0.34 | %   
|                         |                              |                        |            |         |            |  |      |          |   |   |            |         |  |           |      |      |            |  
|                         | Total revenues on loans sold |                        | $          | 187,784 |            |  |      | 1.63     | % |   | $          | 168,698 |  |           |      | 2.21 | %          |   | $         | 176,844 |  |  |      | 1.83 | %
|                         |                              |                        |            |         |            |  |      |          |   |   |            |         |  |           |      |      |            |  
|Loans sold               |                              | $                      | 11,534,100 |         |            |  |      |          |   | $ | 7,638,446  |         |  |           |      |      |            | $ | 9,653,751 |         |  |  |      |     

|                               |  |                        |            |  |            |  |      |          |  |   |            |  |  |  |      |  
|------------------------------ |  | ---------------------- | ---------- |  | ---------- |  | ---- | -------- |  | - | ---------- |  |  |  | ---- | -
|                               |  | Six Months Ended       |           
|                               |  |                        |           
|                               |  | June 30,               |            |  | % of Loans |  |      | June 30, |  |   | % of Loans | 
|                               |  | 2005                   |            |  | Sold       |  |      | 2004(1)  |  |   | Sold       | 
|                               |  |                        |            |  |            |  |      |          |  |   |            | 
|                               |  | (Dollars in thousands) |           
|Gain on sale of loans(1)       |  | $                      | 303,699    |  |            |  | 1.43 | %        |  | $ | 201,975    |  |  |  | 1.61 | %
|Net interest income            |  |                        | 60,929     |  |            |  | 0.29 | %        |  |   | 91,727     |  |  |  | 0.73 | %
|                               |  |                        |            |  |            |  |      |          |  |   |            | 
|Total mortgage banking revenue |  | $                      | 364,628    |  |            |  | 1.72 | %        |  | $ | 293,702    |  |  |  | 2.34 | %
|                               |  |                        |            |  |            |  |      |          |  |   |            | 
|Loans sold                     |  | $                      | 21,187,851 |  |            |  |      |          |  | $ | 12,545,170 |  |  |  |      |  






|    |                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The gain on sale of loans for the three and six months ended
    June 30, 2004 excludes the $52.2 million
    SAB No. 105 adjustment. The GAAP gain on sale of loans
    was $66.1 million and $149.8 million for the three and
    six months ended June 30, 2004, respectively.

32



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|                                     |                         |                       |       |        |              |  |    |          |   |   |              |       |  |           |    |     |              |   |       |        |  |  |    |     |  
|------------------------------------ | ----------------------- | --------------------- | ----- | ------ | ------------ |  | -- | -------- | - | - | ------------ | ----- |  | --------- | -- | --- | ------------ | - | ----- | ------ |  |  | -- | --- | -
|                                     |                         | Three Months Ended    |      
|                                     |                         |                       |      
|                                     |                         | June 30,              |       |        | Distribution |  |    | June 30, |   |   | Distribution |       |  | March 31, |    |     | Distribution |  
|                                     |                         | 2005                  |       |        | Percentages  |  |    | 2004     |   |   | Percentages  |       |  | 2005      |    |     | Percentages  |  
|                                     |                         |                       |       |        |              |  |    |          |   |   |              |       |  |           |    |     |              |  
|                                     |                         | (Dollars in millions) |      
|Sales to the GSEs(1)                 |                         | $                     | 1,103 |        |              |  | 9  | %        |   | $ | 2,249        |       |  |           | 25 | %   |              | $ | 1,313 |        |  |  | 12 | %  
|Private-label securitizations        |                         |                       | 9,112 |        |              |  | 77 | %        |   |   | 3,845        |       |  |           | 43 | %   |              |   | 5,356 |        |  |  | 51 | %  
|Whole loan sales                     |                         |                       | 1,319 |        |              |  | 11 | %        |   |   | 1,544        |       |  |           | 18 | %   |              |   | 2,985 |        |  |  | 28 | %  
|                                     |                         |                       |       |        |              |  |    |          |   |   |              |       |  |           |    |     |              |  
|                                     | Subtotal sales          |                       |       | 11,534 |              |  |    | 97       | % |   |              | 7,638 |  |           |    | 86  | %            |   |       | 9,654  |  |  |    | 91  | %
|Investment portfolio acquisitions(2) |                         |                       | 310   |        |              |  | 3  | %        |   |   | 1,236        |       |  |           | 14 | %   |              |   | 917   |        |  |  | 9  | %  
|                                     |                         |                       |       |        |              |  |    |          |   |   |              |       |  |           |    |     |              |  
|                                     | Total loan distribution |                       | $     | 11,844 |              |  |    | 100      | % |   | $            | 8,874 |  |           |    | 100 | %            |   | $     | 10,571 |  |  |    | 100 | %
|                                     |                         |                       |       |        |              |  |    |          |   |   |              |       |  |           |    |     |              |  

|                                     |                         |                       |        |        |              |  |    |          |   |   |              |        |  |  |    |     |  
|------------------------------------ | ----------------------- | --------------------- | ------ | ------ | ------------ |  | -- | -------- | - | - | ------------ | ------ |  |  | -- | --- | -
|                                     |                         | Six Months Ended      |       
|                                     |                         |                       |       
|                                     |                         | June 30,              |        |        | Distribution |  |    | June 30, |   |   | Distribution |       
|                                     |                         | 2005                  |        |        | Percentages  |  |    | 2004     |   |   | Percentages  |       
|                                     |                         |                       |        |        |              |  |    |          |   |   |              |       
|                                     |                         | (Dollars in millions) |       
|Sales to the GSEs(1)                 |                         | $                     | 2,416  |        |              |  | 11 | %        |   | $ | 4,553        |        |  |  | 33 | %  
|Private-label securitizations        |                         |                       | 14,468 |        |              |  | 65 | %        |   |   | 4,930        |        |  |  | 35 | %  
|Whole loan sales                     |                         |                       | 4,304  |        |              |  | 19 | %        |   |   | 3,062        |        |  |  | 22 | %  
|                                     |                         |                       |        |        |              |  |    |          |   |   |              |       
|                                     | Subtotal sales          |                       |        | 21,188 |              |  |    | 95       | % |   |              | 12,545 |  |  |    | 90  | %
|Investment portfolio acquisitions(2) |                         |                       | 1,227  |        |              |  | 5  | %        |   |   | 1,431        |        |  |  | 10 | %  
|                                     |                         |                       |        |        |              |  |    |          |   |   |              |       
|                                     | Total loan distribution |                       | $      | 22,415 |              |  |    | 100      | % |   | $            | 13,976 |  |  |    | 100 | %
|                                     |                         |                       |        |        |              |  |    |          |   |   |              |       






|    |                                                                                
|--- | -------------------------------------------------------------------------------
|(1) | Government-sponsored enterprises.                                              
|   
|(2) | Loan production that IndyMac elected to retain in its investment
    portfolio.





33



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Mortgage Servicing and Mortgage Servicing Rights




|                                                |                                           |                       |        |        |               |   |        |                |  |   |        |        | 
|----------------------------------------------- | ----------------------------------------- | --------------------- | ------ | ------ | ------------- | - | ------ | -------------- |  | - | ------ | ------ | 
|                                                |                                           | Servicing Portfolio   |       
|                                                |                                           |                       |       
|                                                |                                           | Three Months Ended    |       
|                                                |                                           |                       |       
|                                                |                                           | June 30, 2005         |        |        | June 30, 2004 |   |        | March 31, 2005 | 
|                                                |                                           |                       |        |        |               |   |        |                | 
|                                                |                                           | (Dollars in millions) |       
|Unpaid principal balance at beginning of period |                                           | $                     | 55,995 |        |               | $ | 32,122 |                |  | $ | 50,219 |       
|Additions                                       |                                           |                       | 11,454 |        |               |   | 7,086  |                |  |   | 9,553  |       
|Clean-up calls exercised                        |                                           |                       | (210   | )      |               |   | (672   | )              |  |   | (269   | )     
|Loan payments and prepayments                   |                                           |                       | (3,563 | )      |               |   | (3,918 | )              |  |   | (3,508 | )     
|                                                |                                           |                       |        |        |               |   |        |                | 
|                                                | Unpaid principal balance at end of period |                       | $      | 63,676 |               |   | $      | 34,618         |  |   | $      | 55,995 | 
|                                                |                                           |                       |        |        |               |   |        |                | 

|                                                |                                           |                       |        |        |               |   |        |        | 
|----------------------------------------------- | ----------------------------------------- | --------------------- | ------ | ------ | ------------- | - | ------ | ------ | 
|                                                |                                           | Servicing Portfolio   |       
|                                                |                                           |                       |       
|                                                |                                           | Six Months Ended      |       
|                                                |                                           |                       |       
|                                                |                                           | June 30, 2005         |        |        | June 30, 2004 |  
|                                                |                                           |                       |        |        |               |  
|                                                |                                           | (Dollars in millions) |       
|Unpaid principal balance at beginning of period |                                           | $                     | 50,219 |        |               | $ | 30,774 |       
|Additions                                       |                                           |                       | 21,007 |        |               |   | 11,762 |       
|Clean-up calls exercised                        |                                           |                       | (479   | )      |               |   | (991   | )     
|Loan payments and prepayments                   |                                           |                       | (7,071 | )      |               |   | (6,927 | )     
|                                                |                                           |                       |        |        |               |  
|                                                | Unpaid principal balance at end of period |                       | $      | 63,676 |               |   | $      | 34,618 | 
|                                                |                                           |                       |        |        |               |  



|                                                                                            |                          |                        |         |         |                  |   |         |           |  |   |          |         |  |          |         |         |  |   |         |         | 
|------------------------------------------------------------------------------------------- | ------------------------ | ---------------------- | ------- | ------- | ---------------- | - | ------- | --------- |  | - | -------- | ------- |  | -------- | ------- | ------- |  | - | ------- | ------- | 
|                                                                                            |                          | Three Months Ended     |         |         | Six Months Ended |  
|                                                                                            |                          |                        |         |         |                  |  
|                                                                                            |                          | June 30,               |         |         | June 30,         |   |         | March 31, |  |   | June 30, |         |  | June 30, |        
|                                                                                            |                          | 2005                   |         |         | 2004             |   |         | 2005      |  |   | 2005     |         |  | 2004     |        
|                                                                                            |                          |                        |         |         |                  |   |         |           |  |   |          |         |  |          |        
|                                                                                            |                          | (Dollars in thousands) |        
|Balance at beginning of period                                                              |                          | $                      | 734,238 |         |                  | $ | 414,358 |           |  | $ | 640,794  |         |  | $        | 640,794 |         |  | $ | 443,688 |        
|Additions                                                                                   |                          |                        | 149,616 |         |                  |   | 92,190  |           |  |   | 132,900  |         |  |          | 282,516 |         |  |   | 142,943 |        
|Transfers from (to) prepayment penalty and/or AAA-rated
    agency interest-only securities |                          |                        | (3,364  | )       |                  |   | (14,293 | )         |  |   | (5,127   | )       |  |          | (8,491  | )       |  |   | (14,293 | )      
|Clean-up calls exercised                                                                    |                          |                        | (471    | )       |                  |   | (8,226  | )         |  |   | (1,396   | )       |  |          | (1,867  | )       |  |   | (12,016 | )      
|Amortization                                                                                |                          |                        | (52,083 | )       |                  |   | (38,747 | )         |  |   | (45,792  | )       |  |          | (97,875 | )       |  |   | (61,607 | )      
|Valuation/impairment                                                                        |                          |                        | (89,092 | )       |                  |   | 48,594  |           |  |   | 12,859   |         |  |          | (76,233 | )       |  |   | (4,839  | )      
|                                                                                            |                          |                        |         |         |                  |   |         |           |  |   |          |         |  |          |        
|                                                                                            | Balance at end of period |                        | $       | 738,844 |                  |   | $       | 493,876   |  |   | $        | 734,238 |  |          | $       | 738,844 |  |   | $       | 493,876 | 
|                                                                                            |                          |                        |         |         |                  |   |         |           |  |   |          |         |  |          |        



Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of
Liabilities.


34



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##### Table of Contents








AAA-Rated Agency Interest-Only, Prepayment Penalty and
Residual Securities






|                                              |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |   |         |         |   |   |         |         |  
|--------------------------------------------- | ----------------- | ----------------------------------------- | - | ------- | ---------------- | - | - | --------- | ------- | - | -------- | ------- | ------ | -------- | - | ------- | ------- | - | - | ------- | ------- | -
|                                              |                   | Three Months Ended                        |   |         | Six Months Ended |  
|                                              |                   |                                           |   |         |                  |  
|                                              |                   | June 30,                                  |   |         | June 30,         |   |   | March 31, |         |   | June 30, |         |        | June 30, |  
|                                              |                   | 2005                                      |   |         | 2004             |   |   | 2005      |         |   | 2005     |         |        | 2004     |  
|                                              |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |  
|                                              |                   | (Dollars in thousands)                    |  
|AAA-rated and agency interest-only securities |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |   |         |         |   |   |        
|                                              | Beginning balance |                                           | $ | 83,080  |                  |   | $ | 149,152   |         |   | $        | 90,658  |        |          | $ | 90,658  |         |   | $ | 146,179 |        
|                                              |                   | Retained investments from securitizations |   |         | 4,106            |   |   |           | 5,358   |   |          |         |       |          |   |         | 4,106   |   |   |         | 38,936  |  
|                                              |                   | Transfer from MSRs                        |   |         |                 |   |   |           | 14,293  |   |          |         |       |          |   |         |        |   |   |         | 14,293  |  
|                                              |                   | Sales                                     |   |         |                 |   |   |           | (15,171 | ) |          |         |       |          |   |         |        |   |   |         | (15,171 | )
|                                              |                   | Clean-up calls exercised                  |   |         | (171             | ) |   |           | (1,655  | ) |          |         |       |          |   |         | (171    | ) |   |         | (2,806  | )
|                                              |                   | Cash received, net of accretion           |   |         | (5,669           | ) |   |           | (11,042 | ) |          |         | (6,214 | )        |   |         | (11,883 | ) |   |         | (22,812 | )
|                                              |                   | Valuation (losses) gains before hedges    |   |         | (18,294          | ) |   |           | 14,299  |   |          |         | (1,364 | )        |   |         | (19,658 | ) |   |         | (3,385  | )
|                                              |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |  
|                                              | Ending balance    |                                           | $ | 63,052  |                  |   | $ | 155,234   |         |   | $        | 83,080  |        |          | $ | 63,052  |         |   | $ | 155,234 |        
|                                              |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |  
|Prepayment penalty securities:                |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |   |         |         |   |   |        
|                                              | Beginning balance |                                           | $ | 45,649  |                  |   | $ | 4,309     |         |   | $        | 33,451  |        |          | $ | 33,451  |         |   | $ | 2,096   |        
|                                              |                   | Retained investments from securitizations |   |         | 1,749            |   |   |           | 7,822   |   |          |         | 8,393  |          |   |         | 10,142  |   |   |         | 10,021  |  
|                                              |                   | Transfer from MSRs                        |   |         | 3,364            |   |   |           |        |   |          |         | 5,127  |          |   |         | 8,491   |   |   |         |        |  
|                                              |                   | Cash received, net of accretion           |   |         | (4,162           | ) |   |           | (1,199  | ) |          |         | (2,812 | )        |   |         | (6,974  | ) |   |         | (1,628  | )
|                                              |                   | Valuation gains                           |   |         | 15,683           |   |   |           | 633     |   |          |         | 1,490  |          |   |         | 17,173  |   |   |         | 1,076   |  
|                                              |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |  
|                                              | Ending balance    |                                           | $ | 62,283  |                  |   | $ | 11,565    |         |   | $        | 45,649  |        |          | $ | 62,283  |         |   | $ | 11,565  |        
|                                              |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |  
|Residual securities                           |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |   |         |         |   |   |        
|                                              | Beginning balance |                                           | $ | 131,374 |                  |   | $ | 61,322    |         |   | $        | 135,386 |        |          | $ | 135,386 |         |   | $ | 56,156  |        
|                                              |                   | Retained investments from securitizations |   |         | 18,150           |   |   |           | 11,827  |   |          |         | 30     |          |   |         | 18,180  |   |   |         | 28,334  |  
|                                              |                   | Cash received, net of accretion           |   |         | (8,948           | ) |   |           | (3,704  | ) |          |         | (2,960 | )        |   |         | (11,908 | ) |   |         | (14,794 | )
|                                              |                   | Valuation gains (losses) before hedges    |   |         | 5,218            |   |   |           | 3,187   |   |          |         | (1,082 | )        |   |         | 4,136   |   |   |         | 2,936   |  
|                                              |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |  
|                                              | Ending balance    |                                           | $ | 145,794 |                  |   | $ | 72,632    |         |   | $        | 131,374 |        |          | $ | 145,794 |         |   | $ | 72,632  |        
|                                              |                   |                                           |   |         |                  |   |   |           |         |   |          |         |        |          |  

35



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##### Table of Contents






Other Investment Grade and Non-Investment Grade
Securities






|                                                    |       |                                                             |   |              |            |  |   |           |         |   |            |        |        |            |   |        |        |  |   |        |         | 
|--------------------------------------------------- | ----- | ----------------------------------------------------------- | - | ------------ | ---------- |  | - | --------- | ------- | - | ---------- | ------ | ------ | ---------- | - | ------ | ------ |  | - | ------ | ------- | 
|                                                    |       |                                                             |   | December 31, |           
|                                                    |       | June 30, 2005                                               |   |              | 2004       | 
|                                                    |       |                                                             |   |              |            | 
|                                                    |       |                                                             |   | Premium      |            |  |   |           |        
|                                                    |       | Current                                                     |   |              | (Discount) |  |   |           |         |  
|                                                    |       | Face                                                        |   |              | to Face    |  |   | Amortized |         |   |            |        |       
|                                                    |       | Value                                                       |   |              | Value      |  |   | Cost      |         |   | Fair Value |        |        | Fair Value |  
|                                                    |       |                                                             |   |              |            |  |   |           |         |   |            |        |        |            |  
|                                                    |       | (Dollars in thousands)                                      |  
|Other investment grade mortgage- backed securities: |       |                                                             |   |              |            |  |   |           |         |   |            |        |        |            |   |        |        |  |   |       
|                                                    | AA    |                                                             | $ | 22,138       |            |  | $ | 245       |         |   | $          | 22,383 |        |            | $ | 22,411 |        |  | $ | 76,941 |        
|                                                    | A     |                                                             |   | 262          |            |  |   | (20       | )       |   |            | 242    |        |            |   | 250    |        |  |   | 5,087  |        
|                                                    | BBB   |                                                             |   | 32,436       |            |  |   | (1,561    | )       |   |            | 30,875 |        |            |   | 31,557 |        |  |   | 33,764 |        
|                                                    | BBB-  |                                                             |   | 42,761       |            |  |   | (3,573    | )       |   |            | 39,188 |        |            |   | 40,128 |        |  |   | 31,030 |        
|                                                    |       |                                                             |   |              |            |  |   |           |         |   |            |        |        |            |  
|                                                    |       | Total other investment grade mortgage-backed securities     |   | $            | 97,597     |  |   | $         | (4,909  | ) |            | $      | 92,688 |            |   | $      | 94,346 |  |   | $      | 146,822 | 
|                                                    |       |                                                             |   |              |            |  |   |           |         |   |            |        |        |            |  
|Non-investment grade mortgage- backed securities:   |       |                                                             |   |              |            |  |   |           |         |   |            |        |        |            |   |        |        |  |   |       
|                                                    | BB    |                                                             | $ | 42,357       |            |  | $ | (4,723    | )       |   | $          | 37,634 |        |            | $ | 38,537 |        |  | $ | 53,065 |        
|                                                    | BB-   |                                                             |   | 13,524       |            |  |   | (196      | )       |   |            | 13,328 |        |            |   | 13,524 |        |  |   | 13,516 |        
|                                                    | B+    |                                                             |   | 468          |            |  |   | (391      | )       |   |            | 77     |        |            |   | 77     |        |  |   | 101    |        
|                                                    | B     |                                                             |   | 10,104       |            |  |   | (5,178    | )       |   |            | 4,926  |        |            |   | 5,238  |        |  |   | 14,449 |        
|                                                    | Other |                                                             |   | 6,035        |            |  |   | (5,630    | )       |   |            | 405    |        |            |   | 574    |        |  |   | 1,921  |        
|                                                    |       |                                                             |   |              |            |  |   |           |         |   |            |        |        |            |  
|                                                    |       | Total other non-investment grade mortgage-backed securities |   | $            | 72,488     |  |   | $         | (16,118 | ) |            | $      | 56,370 |            |   | $      | 57,950 |  |   | $      | 83,052  | 
|                                                    |       |                                                             |   |              |            |  |   |           |         |   |            |        |        |            |  



36



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##### Table of Contents






Valuation of Servicing-Related Assets




|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |       | 
|---------------------------------------------- |  | ---------------------- | ------- | ---------- | --------------------- | - | ---------- | ------- |  | ------- | ------------ | - | -------- | ---------- | ---- | -------- | -------- |  | ------- | ---------- |  |  | ---------- | --------- |  | -------- | ---- | - | ------------ |  | ---- | - |  |  | ---- | - |  |  | ----- | 
|                                               |  | Actual                 |         |            | Valuation Assumptions |  
|                                               |  |                        |         |            |                       |  
|                                               |  |                        |         | Gross Wtd. |                       |   | Servicing  |         |  | 3-Month |              |   | Weighted |            |      | Lifetime |          |  | 3-Month |            |  |  |            | Remaining | 
|                                               |  | Book                   |         |            | Collateral            |   |            | Average |  |         | Fee/Interest |   |          | Prepayment |      |          | Average  |  |         | Prepayment |  |  | Prepayment |           |  | Discount |      |   | Cumulative   | 
|                                               |  | Value                  |         |            | Balance               |   |            | Coupon  |  |         | Strip        |   |          | Speeds     |      |          | Multiple |  |         | Speeds     |  |  | Speeds     |           |  | Yield    |      |   | Loss Rate(1) | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|                                               |  | (Dollars in thousands) |        
|June 30, 2005                                  |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |       | 
|MSRs                                           |  | $                      | 738,844 |            |                       | $ | 63,675,945 |         |  |         | 5.91         | % |          |            | 0.37 | %        |          |  | 23.6    | %          |  |  | 3.17       |           |  |          | 24.1 | % |              |  | 26.5 | % |  |  | 9.7  | % |  |  | N/A   | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|AAA-rated agency interest-only securities      |  | $                      | 63,052  |            |                       | $ | 7,245,470  |         |  |         | 6.30         | % |          |            | 0.37 | %        |          |  | 27.4    | %          |  |  | 2.37       |           |  |          | 18.4 | % |              |  | 26.8 | % |  |  | 11.6 | % |  |  | N/A   | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Prepayment penalty securities                  |  | $                      | 62.283  |            |                       | $ | 10,232,512 |         |  |         | 5.72         | % |          |            | N/A  |          |          |  | 22.2    | %          |  |  | N/A        |           |  |          | 25.5 | % |              |  | 27.8 | % |  |  | 9.2  | % |  |  | N/A   | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Prime residual securities                      |  | $                      | 4,693   |            |                       | $ | 1,378,280  |         |  |         | 6.16         | % |          |            | 1.33 | %        |          |  | 48.5    | %          |  |  | 0.26       |           |  |          | 33.2 | % |              |  | 35.8 | % |  |  | 15.0 | % |  |  | 0.10% | 
|Lot loan residual securities                   |  |                        | 23,983  |            |                       | $ | 578,922    |         |  |         | 7.03         | % |          |            | 2.98 | %        |          |  | 41.3    | %          |  |  | 1.39       |           |  |          | 41.9 | % |              |  | 41.3 | % |  |  | 19.7 | % |  |  | 0.68% | 
|HELOC residual securities                      |  |                        | 64,038  |            |                       | $ | 1,397,532  |         |  |         | 7.47         | % |          |            | 3.14 | %        |          |  | 44.3    | %          |  |  | 1.46       |           |  |          | 45.4 | % |              |  | 50.0 | % |  |  | 19.0 | % |  |  | 0.82% | 
|Subprime residual securities                   |  |                        | 53,080  |            |                       | $ | 4,273,283  |         |  |         | 7.37         | % |          |            | 2.77 | %        |          |  | 29.9    | %          |  |  | 0.45       |           |  |          | 35.9 | % |              |  | 30.1 | % |  |  | 24.9 | % |  |  | 2.87% | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Total non-investment grade residual securities |  | $                      | 145,794 |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |       | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|March 31, 2005                                 |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |       | 
|MSRs                                           |  | $                      | 734,238 |            |                       | $ | 55,994,639 |         |  |         | 5.79         | % |          |            | 0.36 | %        |          |  | 21.4    | %          |  |  | 3.64       |           |  |          | 20.5 | % |              |  | 20.6 | % |  |  | 11.0 | % |  |  | N/A   | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|AAA-rated agency interest-only securities      |  | $                      | 83,080  |            |                       | $ | 7,623,711  |         |  |         | 6.30         | % |          |            | 0.37 | %        |          |  | 29.7    | %          |  |  | 2.95       |           |  |          | 14.4 | % |              |  | 25.4 | % |  |  | 11.0 | % |  |  | N/A   | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Prepayment penalty securities                  |  | $                      | 45,649  |            |                       | $ | 8,351,419  |         |  |         | 5.22         | % |          |            | N/A  |          |          |  | 21.6    | %          |  |  | N/A        |           |  |          | 20.6 | % |              |  | 19.0 | % |  |  | 13.5 | % |  |  | N/A   | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Prime residual securities                      |  | $                      | 4,813   |            |                       | $ | 1,510,690  |         |  |         | 6.40         | % |          |            | 1.01 | %        |          |  | 36.8    | %          |  |  | 0.31       |           |  |          | 29.9 | % |              |  | 37.2 | % |  |  | 15.0 | % |  |  | 0.20% | 
|Lot loan residual securities                   |  |                        | 18,594  |            |                       | $ | 394,413    |         |  |         | 7.09         | % |          |            | 3.65 | %        |          |  | 35.1    | %          |  |  | 1.29       |           |  |          | 42.2 | % |              |  | 42.8 | % |  |  | 19.6 | % |  |  | 0.39% | 
|HELOC residual securities                      |  |                        | 59,800  |            |                       | $ | 1,372,162  |         |  |         | 6.87         | % |          |            | 3.28 | %        |          |  | 47.5    | %          |  |  | 1.33       |           |  |          | 49.1 | % |              |  | 50.0 | % |  |  | 19.0 | % |  |  | 0.72% | 
|Subprime residual securities                   |  |                        | 48,167  |            |                       | $ | 3,451,302  |         |  |         | 7.29         | % |          |            | 2.56 | %        |          |  | 26.9    | %          |  |  | 0.54       |           |  |          | 34.1 | % |              |  | 22.1 | % |  |  | 24.9 | % |  |  | 2.88% | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Total non-investment grade residual securities |  | $                      | 131,374 |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |       | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|December 31, 2004                              |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |       | 
|MSRs                                           |  | $                      | 640,794 |            |                       | $ | 50,218,965 |         |  |         | 5.73         | % |          |            | 0.36 | %        |          |  | 24.0    | %          |  |  | 3.54       |           |  |          | 20.8 | % |              |  | 21.9 | % |  |  | 10.3 | % |  |  | N/A   | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|AAA-rated agency interest-only securities      |  | $                      | 90,658  |            |                       | $ | 8,472,502  |         |  |         | 6.65         | % |          |            | 0.38 | %        |          |  | 34.3    | %          |  |  | 2.82       |           |  |          | 14.9 | % |              |  | 26.9 | % |  |  | 11.3 | % |  |  | N/A   | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Prime residual securities                      |  | $                      | 6,495   |            |                       | $ | 1,668,429  |         |  |         | 6.55         | % |          |            | 1.00 | %        |          |  | 40.9    | %          |  |  | 0.39       |           |  |          | 36.9 | % |              |  | 37.3 | % |  |  | 15.0 | % |  |  | 0.21% | 
|Lot loan residual securities                   |  |                        | 17,675  |            |                       | $ | 441,884    |         |  |         | 7.02         | % |          |            | 4.13 | %        |          |  | 36.5    | %          |  |  | 0.97       |           |  |          | 41.0 | % |              |  | 41.6 | % |  |  | 19.3 | % |  |  | 0.42% | 
|HELOC residual securities                      |  |                        | 66,077  |            |                       | $ | 1,352,181  |         |  |         | 6.48         | % |          |            | 3.41 | %        |          |  | 32.1    | %          |  |  | 1.43       |           |  |          | 36.7 | % |              |  | 43.4 | % |  |  | 19.0 | % |  |  | 0.91% | 
|Subprime residual securities                   |  |                        | 45,139  |            |                       | $ | 2,757,236  |         |  |         | 7.44         | % |          |            | 3.29 | %        |          |  | 24.1    | %          |  |  | 0.50       |           |  |          | 33.6 | % |              |  | 22.8 | % |  |  | 24.7 | % |  |  | 2.55% | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Total non-investment grade residual securities |  | $                      | 135,386 |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |       | 
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 






|    |                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As a percentage of the original pool balance, the actual
    cumulative loss rate to date totaled 0.03%, 0.01%, 0.09% and
    0.65% for prime, lot loans, HELOC and subprime, respectively, at
    June 30, 2005.

37



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##### Table of Contents














Hedging Interest Rate Risk on Servicing-Related
Assets






38



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##### Table of Contents





|                              |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |   |         |        |  |   |         |         |  
|----------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------- | - | ------- | ---------------- |  | - | --------- | ------- | - | -------- | ------- | ------ | -------- | - | ------- | ------ |  | - | ------- | ------- | -
|                              |                                                                                                                                              | Three Months Ended                                   |   |         | Six Months Ended | 
|                              |                                                                                                                                              |                                                      |   |         |                  | 
|                              |                                                                                                                                              | June 30,                                             |   |         | June 30,         |  |   | March 31, |         |   | June 30, |         |        | June 30, |  
|                              |                                                                                                                                              | 2005                                                 |   |         | 2004             |  |   | 2005      |         |   | 2005     |         |        | 2004     |  
|                              |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |  
|                              |                                                                                                                                              | (Dollars in thousands)                               |  
|Service fee (expense) income: |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |   |         |        |  |   |        
|                              | Gross service fee income                                                                                                                     |                                                      | $ | 64,358  |                  |  | $ | 29,879    |         |   | $        | 54,989  |        |          | $ | 119,347 |        |  | $ | 57,959  |        
|                              | Amortization                                                                                                                                 |                                                      |   | (52,083 | )                |  |   | (38,747   | )       |   |          | (45,792 | )      |          |   | (97,875 | )      |  |   | (61,607 | )      
|                              |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |  
|                              | Service fee (expense) income, net of amortization                                                                                            |                                                      |   | 12,275  |                  |  |   | (8,868    | )       |   |          | 9,197   |        |          |   | 21,472  |        |  |   | (3,648  | )      
|                              | Valuation adjustments on MSRs                                                                                                                |                                                      |   | (89,092 | )                |  |   | 48,594    |         |   |          | 12,859  |        |          |   | (76,233 | )      |  |   | (4,839  | )      
|                              | Hedge gain (loss) on MSRs                                                                                                                    |                                                      |   | 87,616  |                  |  |   | (67,533   | )       |   |          | (17,638 | )      |          |   | 69,978  |        |  |   | (22,464 | )      
|                              |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |  
|                              |                                                                                                                                              | Total service fee (expense) income                   |   | $       | 10,799           |  |   | $         | (27,807 | ) |          | $       | 4,418  |          |   | $       | 15,217 |  |   | $       | (30,951 | )
|                              |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |  
|Net loss on securities:       |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |   |         |        |  |   |        
|                              | Realized gain on available for sale securities                                                                                               |                                                      | $ | 5,731   |                  |  | $ | 631       |         |   | $        | (350    | )      |          | $ | 5,381   |        |  | $ | 1,531   |        
|                              | Impairment on available for sale securities                                                                                                  |                                                      |   | (78     | )                |  |   | (565      | )       |   |          | (337    | )      |          |   | (415    | )      |  |   | (666    | )      
|                              | Unrealized gain (loss) on prepayment penalty securities                                                                                      |                                                      |   | 15,683  |                  |  |   | 633       |         |   |          | 1,491   |        |          |   | 17,174  |        |  |   | (392    | )      
|                              | Unrealized (loss) gain on AAA-rated and agency interest-only and
    residual securities                                                     |                                                      |   | (12,826 | )                |  |   | 17,486    |         |   |          | (4,268  | )      |          |   | (17,094 | )      |  |   | 1,019   |        
|                              | Net gain (loss) on trading securities and other instruments used
    to hedge AAA-rated and agency interest-only and residual
    securities |                                                      |   | 7,341   |                  |  |   | (21,599   | )       |   |          | (1,182  | )      |          |   | 6,159   |        |  |   | (9,893  | )      
|                              |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |  
|                              |                                                                                                                                              | Total gain (loss) on mortgage-backed securities, net |   | $       | 15,851           |  |   | $         | (3,414  | ) |          | $       | (4,646 | )        |   | $       | 11,205 |  |   | $       | (8,401  | )
|                              |                                                                                                                                              |                                                      |   |         |                  |  |   |           |         |   |          |         |        |          |  




THRIFT




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|                                                          |                                     |                                                |                                     |                                    |              |           |            |           |           |           |            | 
|--------------------------------------------------------- | ----------------------------------- | ---------------------------------------------- | ----------------------------------- | ---------------------------------- | ------------ | --------- | ---------- | --------- | --------- | --------- | ---------- | 
|                                                          |                                     | June 30,                                       |                                     |                                    | December 31, |          
|                                                          |                                     | 2005                                           |                                     |                                    | 2004         |          
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     | (Dollars in thousands)                         |                                    
|Loans held for investment:                                |                                     |                                                |                                     |                                    |              |           |            |          
|                                                          | SFR mortgage                        |                                                | $                                   | 4,989,025                          |              |           | $          | 4,458,784 |          
|                                                          | Consumer construction               |                                                |                                     | 1,493,948                          |              |           |            | 1,443,450 |          
|                                                          | Builder construction                |                                                |                                     | 752,466                            |              |           |            | 643,116   |          
|                                                          | HELOC                               |                                                |                                     | 39,512                             |              |           |            | 45,932    |          
|                                                          | Land and other mortgage             |                                                |                                     | 183,032                            |              |           |            | 158,471   |          
|                                                          | Revolving warehouse lines of credit |                                                |                                     | 27,974                             |              |           |            |          |          
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                |                                     | Total  loans held for investment  |              |           | 7,485,957  |           |           |           | 6,749,753  | 
|                                                          |                                     |                                                |                                     |                                    |              |          
|Mortgage-backed securities:                               |                                     |                                                |                                     |                                    |              |           |            |          
|                                                          | Trading securities:                 |                                                |                                     |                                    |              |           |            |           |          
|                                                          |                                     | AAA-rated and agency interest-only securities  |                                     |                                    | 63,052       |           |            |           | 90,658    |          
|                                                          |                                     | AAA-rated principal-only securities            |                                     |                                    |             |           |            |           | 18,599    |          
|                                                          |                                     | Prepayment penalty securities                  |                                     |                                    | 62,283       |           |            |           | 33,451    |          
|                                                          |                                     | Other investment grade securities              |                                     |                                    | 9,320        |           |            |           | 9,219     |          
|                                                          |                                     | Other non-investment grade securities          |                                     |                                    |             |           |            |           | 4,198     |          
|                                                          |                                     | Non-investment grade residual securities       |                                     |                                    | 97,657       |           |            |           | 78,911    |          
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                |                                     | Total trading securities           |              |           | 232,312    |           |           |           | 235,036    | 
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          | Available for sale securities:      |                                                |                                     |                                    |              |           |            |           |          
|                                                          |                                     | AAA-rated non-agency securities                |                                     |                                    | 3,186,980    |           |            |           | 3,166,600 |          
|                                                          |                                     | AAA-rated agency securities                    |                                     |                                    | 11,827       |           |            |           | 14,903    |          
|                                                          |                                     | Other investment grade securities              |                                     |                                    | 85,026       |           |            |           | 137,603   |          
|                                                          |                                     | Other non-investment grade securities          |                                     |                                    | 57,950       |           |            |           | 78,854    |          
|                                                          |                                     | Non-investment grade HELOC residual securities |                                     |                                    | 48,137       |           |            |           | 56,475    |          
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                | Total available for sale securities |                                    |              | 3,389,920 |            |           |           | 3,454,435 |           
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                |                                     | Total  mortgage-backed securities |              |           | 3,622,232  |           |           |           | 3,689,471  | 
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                |                                     | Total                              |              | $         | 11,108,089 |           |           | $         | 10,439,224 | 
|                                                          |                                     |                                                |                                     |                                    |              |          
|Percentage of securities portfolio rated investment grade |                                     |                                                | 93                                  | %                                  |              |           | 93         | %        
|Percentage of securities portfolio rated AAA              |                                     |                                                | 90                                  | %                                  |              |           | 89         | %        






SFR Mortgage Loans Held for Investment




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|                                                  |  |                        |           |   |              |   |           |  
|------------------------------------------------- |  | ---------------------- | --------- | - | ------------ | - | --------- | -
|                                                  |  | June 30,               |           |   | December 31, |  
|                                                  |  | 2005                   |           |   | 2004         |  
|                                                  |  |                        |           |   |              |  
|                                                  |  | (Dollars in thousands) |          
|SFR mortgage loans held for investment            |  | $                      | 4,989,025 |   |              | $ | 4,458,784 |  
|Average loan size                                 |  | $                      | 305       |   |              | $ | 305       |  
|Non-performing loans as a percentage of SFR loans |  |                        | 0.55      | % |              |   | 0.60      | %
|Estimated average life in years(1)                |  |                        | 2.6       |   |              |   | 2.4       |  
|Estimated average duration in years(2)            |  |                        | 1.3       |   |              |   | 1.5       |  
|Yield                                             |  |                        | 4.63      | % |              |   | 4.38      | %
|Fixed-rate mortgages                              |  |                        | 7         | % |              |   | 9         | %
|Adjustable-rate mortgages                         |  |                        | 28        | % |              |   | 18        | %
|Hybrid adjustable-rate mortgages                  |  |                        | 65        | % |              |   | 73        | %

|                                            |                     |          |     |    |              |   |     |    |     |  
|------------------------------------------- | ------------------- | -------- | --- | -- | ------------ | - | --- | -- | --- | -
|                                            |                     | June 30, |     |    | December 31, |  
|Additional Information                      |                     | 2005     |     |    | 2004         |  
|                                            |                     |          |     |    |              |  
|Average FICO score(3)                       |                     |          | 717 |    |              |   | 720 |   
|Average loan to value ratio                 |                     |          | 72  | %  |              |   | 71  | % 
|Geographic distribution of top five states: |                     |          |     |    |              |   |     |   
|                                            | Southern California |          |     | 32 | %            |   |     | 31 | %  
|                                            | Northern California |          |     | 20 | %            |   |     | 21 | %  
|                                            | Michigan            |          |     | 5  | %            |   |     | 6  | %  
|                                            | Florida             |          |     | 5  | %            |   |     | 4  | %  
|                                            | New York            |          |     | 4  | %            |   |     | 4  | %  
|                                            | Georgia             |          |     | 3  | %            |   |     | 3  | %  
|                                            | Other               |          |     | 31 | %            |   |     | 31 | %  
|                                            |                     |          |     |    |              |  
|                                            |                     | Total    |     |    | 100          | % |     |    | 100 | %
|                                            |                     |          |     |    |              |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the estimated length of time, on average, the SFR
    loan portfolio will remain outstanding based on the
    Companys estimates for prepayments.                                                                                                                                                                                                                                                                    
|   
|(2) | Average duration measures the expected change in the value of a
    financial instrument in response to changes in interest rates.                                                                                                                                                                                                                                                                                               
|   
|(3) | FICO scores are the result of a credit scoring system developed
    by Fair Isaacs and Co. and are generally used by lenders to
    evaluate a borrowers credit history. FICO scores of 700 or
    higher are generally considered in the mortgage industry to be
    very high quality borrowers with low risk of default, but in
    general, the secondary market will consider FICO scores of 620
    or higher to be prime.




Mortgage-Backed Securities




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Construction Lending






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|                                       |  |                        |           |   |                   |   |           |              |  |   |              |   |  |   |           |  
|-------------------------------------- |  | ---------------------- | --------- | - | ----------------- | - | --------- | ------------ |  | - | ------------ | - |  | - | --------- | -
|                                       |  | As of                  |          
|                                       |  |                        |          
|                                       |  | June 30, 2005          |           |   | December 31, 2004 |  
|                                       |  |                        |           |   |                   |  
|                                       |  | Consumer               |           |   | Builder           |   |           | Consumer     |  |   | Builder      |  
|                                       |  | Construction           |           |   | Construction      |   |           | Construction |  |   | Construction |  
|                                       |  | Loans                  |           |   | Loans             |   |           | Loans        |  |   | Loans        |  
|                                       |  |                        |           |   |                   |   |           |              |  |   |              |  
|                                       |  | (Dollars in thousands) |          
|Construction loans                     |  | $                      | 1,493,948 |   |                   | $ | 752,466   |              |  | $ | 1,443,450    |   |  | $ | 643,116   |  
|Lot, land and other mortgage loans     |  | $                      | 112,735   |   |                   | $ | 175,216   |              |  | $ | 37,172       |   |  | $ | 154,123   |  
|Outstanding commitments                |  | $                      | 2,708,603 |   |                   | $ | 1,515,566 |              |  | $ | 2,528,054    |   |  | $ | 1,461,296 |  
|Average loan commitments               |  | $                      | 421       |   |                   | $ | 9,185     | (1)          |  | $ | 410          |   |  | $ | 7,033     |  
|Non-performing loans                   |  |                        | 0.55      | % |                   |   | 0.71      | %            |  |   | 0.65         | % |  |   | 1.45      | %
|Annualized yield on construction loans |  |                        | 5.56      | % |                   |   | 8.56      | %            |  |   | 5.56         | % |  |   | 7.35      | %
|Fixed-rate loans                       |  |                        | 94        | % |                   |   |          |              |  |   | 98           | % |  |   |          |  
|Adjustable-rate loans                  |  |                        | 6         | % |                   |   | 99        | %            |  |   | 2            | % |  |   | 98        | %
|Hybrid adjustable-rate loans           |  |                        |          |   |                   |   | 1         | %            |  |   |             |   |  |   | 2         | %






|    |                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In calculating the average builder construction loan
    commitments, total commitments of $324.0 million of builder
    spec loans, with average loan commitments of $388 thousand
    are excluded in the calculation at June 30, 2005. As of
    December 31, 2004, builder spec loans had total commitments
    of $223.4 million with average loan commitments of $387
    thousand.

Additional Information as of June 30, 2005


|                                            |                             |              |     |     |   |  |                            |  |     |     |  
|------------------------------------------- | --------------------------- | ------------ | --- | --- | - |  | -------------------------- |  | --- | --- | -
|                                            |                             | Consumer     |     |     |   |  | Builder                    | 
|                                            |                             | Construction |     |     |   |  | Construction               | 
|                                            |                             | Loans        |     |     |   |  | Loans                      | 
|                                            |                             |              |     |     |   |  |                            | 
|Average loan-to-value ratio(1)              |                             |              | 74  | %   |   |  |                            |  | 71  | %  
|Average FICO score(2)                       |                             |              | 711 |     |   |  |                            |  | N/A |    
|Geographic distribution of top five states: |                             |              |     |     |   |  |                            |  |     |    
|                                            | Southern California         |              |     | 30  | % |  | Southern California        |  |     | 41  | %
|                                            | Northern California         |              |     | 18  | % |  | Northern California        |  |     | 15  | %
|                                            | Hawaii                      |              |     | 6   | % |  | Illinois                   |  |     | 11  | %
|                                            | Florida                     |              |     | 6   | % |  | Florida                    |  |     | 5   | %
|                                            | New York                    |              |     | 4   | % |  | Arizona                    |  |     | 5   | %
|                                            | Washington                  |              |     | 3   | % |  | Massachusetts              |  |     | 3   | %
|                                            | Other                       |              |     | 33  | % |  | Other                      |  |     | 20  | %
|                                            |                             |              |     |     |   |  |                            | 
|                                            | Total Consumer Construction |              |     | 100 | % |  | Total Builder Construction |  |     | 100 | %
|                                            |                             |              |     |     |   |  |                            | 






|    |                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The average loan-to-value ratio is based on the estimated
    appraised value of the completed project compared to the
    commitment amount at June 30, 2005.
|   
|(2) | FICO scores are not calculated for corporate entities and,
    therefore, are not applicable to the builder construction
    portfolio.                       



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HELOC Portfolio






|                           |  |                        |         |   |           |   |         |              |  |   |         |  
|-------------------------- |  | ---------------------- | ------- | - | --------- | - | ------- | ------------ |  | - | ------- | -
|                           |  | June 30,               |         |   | March 31, |   |         | December 31, | 
|                           |  | 2005                   |         |   | 2005      |   |         | 2004         | 
|                           |  |                        |         |   |           |   |         |              | 
|                           |  | (Dollars in thousands) |        
|Outstanding balance        |  | $                      | 461,293 |   |           | $ | 409,948 |              |  | $ | 404,342 |  
|Outstanding commitments(1) |  | $                      | 913,845 |   |           | $ | 821,991 |              |  | $ | 838,534 |  
|Average spread over prime  |  |                        | 1.31    | % |           |   | 1.31    | %            |  |   | 1.41    | %
|Average FICO score         |  |                        | 732     |   |           |   | 729     |              |  |   | 726     |  
|Average CLTV ratio(2)      |  |                        | 76      | % |           |   | 76      | %            |  |   | 76      | %

Additional Information as of June 30, 2005


|            |       |                        |         |              |            |   |    |                |  |  |          |      |   |             |     |     |  |  |      |      |  
|----------- | ----- | ---------------------- | ------- | ------------ | ---------- | - | -- | -------------- |  |  | -------- | ---- | - | ----------- | --- | --- |  |  | ---- | ---- | -
|            |       |                        |         | Average Loan |            |   |    |                |  |  | 30+ Days |     
|            |       | Outstanding            |         |              | Commitment |   |    | Average Spread |  |  | Average  |      |   | Delinquency |    
|CLTV        |       | Balance                |         |              | Balance    |   |    | Over Prime     |  |  | FICO     |      |   | Percentage  |    
|            |       |                        |         |              |            |   |    |                |  |  |          |      |   |             |    
|            |       | (Dollars in thousands) |        
|96% to 100% |       | $                      | 98,038  |              |            | $ | 66 |                |  |  | 2.39     | %    |   |             | 738 |     |  |  | 0.52 | %   
|91% to 95%  |       |                        | 41,877  |              |            |   | 64 |                |  |  | 1.95     | %    |   |             | 725 |     |  |  | 0.53 | %   
|81% to 90%  |       |                        | 100,834 |              |            |   | 65 |                |  |  | 1.79     | %    |   |             | 713 |     |  |  | 0.54 | %   
|71% to 80%  |       |                        | 113,716 |              |            |   | 94 |                |  |  | 0.62     | %    |   |             | 731 |     |  |  | 0.43 | %   
|70% or less |       |                        | 106,828 |              |            |   | 89 |                |  |  | 0.36     | %    |   |             | 744 |     |  |  | 0.00 | %   
|            |       |                        |         |              |            |   |    |                |  |  |          |      |   |             |    
|            | Total |                        | $       | 461,293      |            |   | $  | 79             |  |  |          | 1.31 | % |             |     | 732 |  |  |      | 0.38 | %
|            |       |                        |         |              |            |   |    |                |  |  |          |      |   |             |    






|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(1) | On funded loans.                                                                      
|   
|(2) | The CLTV combines the loan to value on both the first mortgage
    loan and the HELOC.

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NET INTEREST INCOME




|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |           |            |  |   |         |         |  |  |      |      |  
|---------------------------------------------------- | ------------------------------------------ | ---------------------- | --------- | ---------- | ------------- | - | ------ | -------------- |  | ------- | ------- | ---- | - | -------- | --------- | ---------- | ---- | ------- | ------- | ------- |  |  | -------- | ---- | - | ---- | --------- | ---------- |  | - | ------- | ------- |  |  | ---- | ---- | -
|                                                     |                                            | Three Months Ended     |          
|                                                     |                                            |                        |          
|                                                     |                                            | June 30, 2005          |           |            | June 30, 2004 |   |        | March 31, 2005 | 
|                                                     |                                            |                        |           |            |               |   |        |                | 
|                                                     |                                            | Average                |           |            |               |   | Yield/ |                |  | Average |         |      |   |          | Yield/    |            |      | Average |         |         |  |  | Yield/   |     
|                                                     |                                            | Balance                |           |            | Interest      |   |        | Rate           |  |         | Balance |      |   | Interest |           |            | Rate |         |         | Balance |  |  | Interest |      |   | Rate |          
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     |                                            | (Dollars in thousands) |          
|Securities                                           |                                            | $                      | 3,563,192 |            |               | $ | 47,701 |                |  |         | 5.37    | %    |   | $        | 2,877,174 |            |      | $       | 34,365  |         |  |  | 4.80     | %    |   | $    | 3,657,831 |            |  | $ | 51,324  |         |  |  | 5.69 | %   
|Loans held for sale                                  |                                            |                        | 6,844,766 |            |               |   | 87,756 |                |  |         | 5.14    | %    |   |          | 5,282,806 |            |      |         | 69,395  |         |  |  | 5.28     | %    |   |      | 6,047,608 |            |  |   | 79,383  |         |  |  | 5.32 | %   
|Mortgage loans held for investment                   |                                            |                        | 5,312,122 |            |               |   | 61,339 |                |  |         | 4.63    | %    |   |          | 5,424,545 |            |      |         | 56,827  |         |  |  | 4.21     | %    |   |      | 4,890,267 |            |  |   | 56,220  |         |  |  | 4.66 | %   
|Builder construction and income property             |                                            |                        | 727,731   |            |               |   | 15,535 |                |  |         | 8.56    | %    |   |          | 546,597   |            |      |         | 8,820   |         |  |  | 6.49     | %    |   |      | 656,007   |            |  |   | 12,993  |         |  |  | 8.03 | %   
|Consumer construction                                |                                            |                        | 1,398,654 |            |               |   | 19,372 |                |  |         | 5.56    | %    |   |          | 1,208,522 |            |      |         | 17,003  |         |  |  | 5.66     | %    |   |      | 1,371,321 |            |  |   | 19,285  |         |  |  | 5.70 | %   
|Investment in Federal Home Loan Bank stock and other |                                            |                        | 714,107   |            |               |   | 7,043  |                |  |         | 3.96    | %    |   |          | 329,231   |            |      |         | 3,898   |         |  |  | 4.76     | %    |   |      | 416,033   |            |  |   | 4,393   |         |  |  | 4.28 | %   
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total interest-earning assets              |                        |           | 18,560,572 |               |   |        | 238,746        |  |         |         | 5.16 | % |          |           | 15,668,875 |      |         |         | 190,308 |  |  |          | 4.88 | % |      |           | 17,039,067 |  |   |         | 223,598 |  |  |      | 5.32 | %
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Other                                                |                                            |                        | 1,458,128 |            |               |   |        |                |  |         |         |      |   |          | 1,317,607 |            |      |         |         |         |  |  |          |      |   |      | 1,529,126 |            |  |   |         |         |  |  |      |     
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total assets                               |                        | $         | 20,018,700 |               |   |        |                |  |         |         |      |   |          | $         | 16,986,482 |      |         |         |         |  |  |          |      |   |      | $         | 18,568,193 |  |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Interest-bearing deposits                            |                                            | $                      | 5,693,146 |            |               |   | 44,326 |                |  |         | 3.12    | %    |   | $        | 4,076,509 |            |      |         | 23,697  |         |  |  | 2.34     | %    |   | $    | 5,258,418 |            |  |   | 35,892  |         |  |  | 2.77 | %   
|Advances from Federal Home Loan Bank                 |                                            |                        | 8,216,382 |            |               |   | 64,091 |                |  |         | 3.13    | %    |   |          | 5,775,468 |            |      |         | 33,919  |         |  |  | 2.36     | %    |   |      | 7,300,102 |            |  |   | 52,713  |         |  |  | 2.93 | %   
|Other borrowings                                     |                                            |                        | 3,594,250 |            |               |   | 33,924 |                |  |         | 3.79    | %    |   |          | 4,800,920 |            |      |         | 25,714  |         |  |  | 2.15     | %    |   |      | 3,635,020 |            |  |   | 30,573  |         |  |  | 3.41 | %   
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total interest-bearing liabilities         |                        |           | 17,503,778 |               |   |        | 142,341        |  |         |         | 3.26 | % |          |           | 14,652,897 |      |         |         | 83,330  |  |  |          | 2.29 | % |      |           | 16,193,540 |  |   |         | 119,178 |  |  |      | 2.98 | %
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Other                                                |                                            |                        | 1,194,235 |            |               |   |        |                |  |         |         |      |   |          | 1,206,297 |            |      |         |         |         |  |  |          |      |   |      | 1,121,105 |            |  |   |         |         |  |  |      |     
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total liabilities                          |                        |           | 18,698,013 |               |   |        |                |  |         |         |      |   |          |           | 15,859,194 |      |         |         |         |  |  |          |      |   |      |           | 17,314,645 |  |   |         |         |  |  |      |      |  
|                                                     | Shareholders equity                       |                        |           | 1,320,687  |               |   |        |                |  |         |         |      |   |          |           | 1,127,288  |      |         |         |         |  |  |          |      |   |      |           | 1,253,548  |  |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total liabilities and shareholders equity |                        | $         | 20,018,700 |               |   |        |                |  |         |         |      |   |          | $         | 16,986,482 |      |         |         |         |  |  |          |      |   |      | $         | 18,568,193 |  |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Net interest income                                  |                                            |                        |           |            |               | $ | 96,405 |                |  |         |         |      |   |          |           |            |      | $       | 106,978 |         |  |  |          |      |   |      |           |            |  | $ | 104,420 |         |  |  |      |     
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Net interest spread                                  |                                            |                        |           |            |               |   |        |                |  |         | 1.90    | %    |   |          |           |            |      |         |         |         |  |  | 2.59     | %    |   |      |           |            |  |   |         |         |  |  | 2.34 | %   
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Net interest margin                                  |                                            |                        |           |            |               |   |        |                |  |         | 2.08    | %    |   |          |           |            |      |         |         |         |  |  | 2.75     | %    |   |      |           |            |  |   |         |         |  |  | 2.49 | %   
|                                                     |                                            |                        |           |            |               |   |        |                |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          

45



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##### Table of Contents



|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |   |         |         |  |  |      |      |  
|---------------------------------------------------- | ------------------------------------------ | ---------------------- | --------- | ---------- | ------------- | - | ------- | ------- |  | ------- | ------- | ---- | - | -------- | --------- | ---------- | ---- | - | ------- | ------- |  |  | ---- | ---- | -
|                                                     |                                            | Six Months Ended       |          
|                                                     |                                            |                        |          
|                                                     |                                            | June 30, 2005          |           |            | June 30, 2004 |  
|                                                     |                                            |                        |           |            |               |  
|                                                     |                                            | Average                |           |            |               |   | Yield   |         |  | Average |         |      |   |          | Yield     |           
|                                                     |                                            | Balance                |           |            | Interest      |   |         | Rate    |  |         | Balance |      |   | Interest |           |            | Rate |  
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     |                                            | (Dollars in thousands) |          
|Securities                                           |                                            | $                      | 3,610,512 |            |               | $ | 99,025  |         |  |         | 5.53    | %    |   | $        | 2,491,321 |            |      | $ | 61,220  |         |  |  | 4.94 | %   
|Loans held for sale                                  |                                            |                        | 6,446,186 |            |               |   | 167,139 |         |  |         | 5.23    | %    |   |          | 4,485,728 |            |      |   | 124,141 |         |  |  | 5.57 | %   
|Mortgage loans held for investment                   |                                            |                        | 5,101,194 |            |               |   | 117,559 |         |  |         | 4.65    | %    |   |          | 5,516,402 |            |      |   | 114,868 |         |  |  | 4.19 | %   
|Builder construction and income property             |                                            |                        | 691,869   |            |               |   | 28,528  |         |  |         | 8.31    | %    |   |          | 526,633   |            |      |   | 16,860  |         |  |  | 6.44 | %   
|Consumer construction                                |                                            |                        | 1,384,987 |            |               |   | 38,657  |         |  |         | 5.63    | %    |   |          | 1,174,446 |            |      |   | 32,998  |         |  |  | 5.65 | %   
|Investment in Federal Home Loan Bank stock and other |                                            |                        | 565,070   |            |               |   | 11,436  |         |  |         | 4.08    | %    |   |          | 324,776   |            |      |   | 6,780   |         |  |  | 4.20 | %   
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total interest-earning assets              |                        |           | 17,799,818 |               |   |         | 462,344 |  |         |         | 5.24 | % |          |           | 14,519,306 |      |   |         | 356,867 |  |  |      | 4.94 | %
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|Other                                                |                                            |                        | 1,493,628 |            |               |   |         |         |  |         |         |      |   |          | 1,248,121 |            |      |   |         |         |  |  |      |     
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total assets                               |                        | $         | 19,293,446 |               |   |         |         |  |         |         |      |   |          | $         | 15,767,427 |      |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|Interest-bearing deposits                            |                                            | $                      | 5,475,782 |            |               |   | 80,218  |         |  |         | 2.95    | %    |   | $        | 3,957,510 |            |      |   | 46,179  |         |  |  | 2.35 | %   
|Advances from Federal Home Loan Bank                 |                                            |                        | 7,758,242 |            |               |   | 116,804 |         |  |         | 3.04    | %    |   |          | 5,491,302 |            |      |   | 64,839  |         |  |  | 2.37 | %   
|Other borrowings                                     |                                            |                        | 3,614,635 |            |               |   | 64,497  |         |  |         | 3.60    | %    |   |          | 4,166,462 |            |      |   | 44,938  |         |  |  | 2.17 | %   
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total interest-bearing liabilities         |                        |           | 16,848,659 |               |   |         | 261,519 |  |         |         | 3.13 | % |          |           | 13,615,274 |      |   |         | 155,956 |  |  |      | 2.30 | %
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|Other                                                |                                            |                        | 1,157,671 |            |               |   |         |         |  |         |         |      |   |          | 1,066,848 |            |      |   |         |         |  |  |      |     
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total liabilities                          |                        |           | 18,006,330 |               |   |         |         |  |         |         |      |   |          |           | 14,682,122 |      |   |         |         |  |  |      |      |  
|                                                     | Stockholders equity                       |                        |           | 1,287,116  |               |   |         |         |  |         |         |      |   |          |           | 1,085,305  |      |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total liabilities and stockholders equity |                        | $         | 19,293,446 |               |   |         |         |  |         |         |      |   |          | $         | 15,767,427 |      |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|Net interest income                                  |                                            |                        |           |            |               | $ | 200,825 |         |  |         |         |      |   |          |           |            |      | $ | 200,911 |         |  |  |      |     
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|Net interest spread                                  |                                            |                        |           |            |               |   |         |         |  |         | 2.11    | %    |   |          |           |            |      |   |         |         |  |  | 2.64 | %   
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  
|Net interest margin                                  |                                            |                        |           |            |               |   |         |         |  |         | 2.28    | %    |   |          |           |            |      |   |         |         |  |  | 2.78 | %   
|                                                     |                                            |                        |           |            |               |   |         |         |  |         |         |      |   |          |           |            |      |  



|                         |               |                       |        |        |               |   |    |                |  |  |         |      |   |          |        |        |          |   |    |         |  |  |          |      |   |          |        |        |  |   |    |     |  |  |      |      |  
|------------------------ | ------------- | --------------------- | ------ | ------ | ------------- | - | -- | -------------- |  |  | ------- | ---- | - | -------- | ------ | ------ | -------- | - | -- | ------- |  |  | -------- | ---- | - | -------- | ------ | ------ |  | - | -- | --- |  |  | ---- | ---- | -
|                         |               | Three Months Ended    |       
|                         |               |                       |       
|                         |               | June 30, 2005         |        |        | June 30, 2004 |   |    | March 31, 2005 | 
|                         |               |                       |        |        |               |   |    |                | 
|                         |               | Average               |        |        | Net           |   |    | Net            |  |  | Average |      |   | Net      |        |        | Net      |   |    | Average |  |  | Net      |      |   | Net      |       
|                         |               | Earning               |        |        | Interest      |   |    | Interest       |  |  | Earning |      |   | Interest |        |        | Interest |   |    | Earning |  |  | Interest |      |   | Interest |       
|                         |               | Assets                |        |        | Income        |   |    | Margin         |  |  | Assets  |      |   | Income   |        |        | Margin   |   |    | Assets  |  |  | Income   |      |   | Margin   |       
|                         |               |                       |        |        |               |   |    |                |  |  |         |      |   |          |        |        |          |   |    |         |  |  |          |      |   |          |       
|                         |               | (Dollars in millions) |       
|By Segment:              |               |                       |        |        |               |   |    |                |  |  |         |      |   |          |        |        |          |   |    |         |  |  |          |      |   |          |        |        |  |   |    |     |  |  |      |     
|Thrift segment and other |               | $                     | 12,315 |        |               | $ | 59 |                |  |  | 1.93    | %    |   | $        | 10,346 |        |          | $ | 52 |         |  |  | 2.02     | %    |   | $        | 11,389 |        |  | $ | 63 |     |  |  | 2.26 | %   
|Mortgage banking segment |               |                       | 6,246  |        |               |   | 37 |                |  |  | 2.38    | %    |   |          | 5,323  |        |          |   | 55 |         |  |  | 4.16     | %    |   |          | 5,650  |        |  |   | 41 |     |  |  | 2.94 | %   
|                         |               |                       |        |        |               |   |    |                |  |  |         |      |   |          |        |        |          |   |    |         |  |  |          |      |   |          |       
|                         | Total Company |                       |        | 18,561 |               |   |    | 96             |  |  |         | 2.08 | % |          |        | 15,669 |          |   |    | 107     |  |  |          | 2.75 | % |          |        | 17,039 |  |   |    | 104 |  |  |      | 2.49 | %
|                         |               |                       |        |        |               |   |    |                |  |  |         |      |   |          |        |        |          |   |    |         |  |  |          |      |   |          |       

46



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##### Table of Contents







| |   |                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------
| |  | changes in volume (changes in average outstanding balances
    multiplied by the prior periods rate),     
|
| |  | changes in the rate (changes in the average interest rate
    multiplied by the prior periods volume), and
|
| |  | changes in rate/volume (mix) (changes in rates times
    the changes in volume).                         

|                  |                                                      |                             |                     |        |        |        |   |        |        |         |              |        |       |        |   |        |        |         |  
|----------------- | ---------------------------------------------------- | --------------------------- | ------------------- | ------ | ------ | ------ | - | ------ | ------ | ------- | ------------ | ------ | ----- | ------ | - | ------ | ------ | ------- | -
|                  |                                                      | Three Months Ended June 30, |                    
|                  |                                                      | 2005 vs. 2004               |                    
|                  |                                                      |                             |                    
|                  |                                                      | Increase/(Decrease) Due to  |                    
|                  |                                                      |                             |                    
|                  |                                                      | Volume                      |                     |        | Rate   |        |   | Mix    |        |         | Total Change |       
|                  |                                                      |                             |                     |        |        |        |   |        |        |         |              |       
|                  |                                                      | (Dollars in thousands)      |                    
|Interest income:  |                                                      |                             |                     |        |        |        |   |        |        |         |              |        |       |        |   |       
|                  | Securities                                           |                             | $                   | 8,310  |        |        | $ | 4,047  |        |         | $            | 979    |       |        | $ | 13,336 |       
|                  | Loans held for sale                                  |                             |                     | 20,764 |        |        |   | (1,850 | )      |         |              | (553   | )     |        |   | 18,361 |       
|                  | Mortgage loans held for investment                   |                             |                     | (1,025 | )      |        |   | 5,639  |        |         |              | (102   | )     |        |   | 4,512  |       
|                  | Builder construction and income property             |                             |                     | 2,955  |        |        |   | 2,816  |        |         |              | 944    |       |        |   | 6,715  |       
|                  | Consumer construction                                |                             |                     | 2,729  |        |        |   | (310   | )      |         |              | (50    | )     |        |   | 2,369  |       
|                  | Investment in Federal Home Loan Bank stock and other |                             |                     | 4,580  |        |        |   | (660   | )      |         |              | (775   | )     |        |   | 3,145  |       
|                  |                                                      |                             |                     |        |        |        |   |        |        |         |              |       
|                  |                                                      | Total interest income       |                     |        | 38,313 |        |   |        | 9,682  |         |              |        | 443   |        |   |        | 48,438 |        
|Interest expense: |                                                      |                             |                     |        |        |        |   |        |        |         |              |        |       |        |   |       
|                  | Interest-bearing deposits                            |                             |                     | 9,488  |        |        |   | 7,955  |        |         |              | 3,186  |       |        |   | 20,629 |       
|                  | Advances from Federal Home Loan Bank                 |                             |                     | 14,468 |        |        |   | 11,009 |        |         |              | 4,695  |       |        |   | 30,172 |       
|                  | Other borrowings                                     |                             |                     | (6,410 | )      |        |   | 19,475 |        |         |              | (4,855 | )     |        |   | 8,210  |       
|                  |                                                      |                             |                     |        |        |        |   |        |        |         |              |       
|                  |                                                      | Total interest expense      |                     |        | 17,546 |        |   |        | 38,439 |         |              |        | 3,026 |        |   |        | 59,011 |        
|                  |                                                      |                             |                     |        |        |        |   |        |        |         |              |       
|                  |                                                      |                             | Net interest income |        | $      | 20,767 |   |        | $      | (28,757 | )            |        | $     | (2,583 | ) |        | $      | (10,573 | )
|                  |                                                      |                             |                     |        |        |        |   |        |        |         |              |       

|                  |                                                      |                            |                     |        |        |        |   |        |        |         |              |        |        |       |   |        |         |     |  
|----------------- | ---------------------------------------------------- | -------------------------- | ------------------- | ------ | ------ | ------ | - | ------ | ------ | ------- | ------------ | ------ | ------ | ----- | - | ------ | ------- | --- | -
|                  |                                                      | Six Months Ended June 30,  |                    
|                  |                                                      | 2005 vs. 2004              |                    
|                  |                                                      |                            |                    
|                  |                                                      | Increase/(Decrease) Due to |                    
|                  |                                                      |                            |                    
|                  |                                                      | Volume                     |                     |        | Rate   |        |   | Mix    |        |         | Total Change |       
|                  |                                                      |                            |                     |        |        |        |   |        |        |         |              |       
|                  |                                                      | (Dollars in thousands)     |                    
|Interest income:  |                                                      |                            |                     |        |        |        |   |        |        |         |              |        |        |       |   |       
|                  | Mortgage-backed securities                           |                            | $                   | 27,256 |        |        | $ | 3,250  |        |         | $            | 7,299  |        |       | $ | 37,805 |        
|                  | Loans held for sale                                  |                            |                     | 53,761 |        |        |   | (3,252 | )      |         |              | (7,511 | )      |       |   | 42,998 |        
|                  | Mortgage loans held for investment                   |                            |                     | (8,940 | )      |        |   | (982   | )      |         |              | 12,613 |        |       |   | 2,691  |        
|                  | Builder construction and income property             |                            |                     | 5,229  |        |        |   | 1,524  |        |         |              | 4,915  |        |       |   | 11,668 |        
|                  | Consumer construction                                |                            |                     | 5,808  |        |        |   | (22    | )      |         |              | (127   | )      |       |   | 5,659  |        
|                  | Investment in Federal Home Loan Bank stock and other |                            |                     | 4,984  |        |        |   | (139   | )      |         |              | (189   | )      |       |   | 4,656  |        
|                  |                                                      |                            |                     |        |        |        |   |        |        |         |              |       
|                  |                                                      | Total interest income      |                     |        | 88,098 |        |   |        | 379    |         |              |        | 17,000 |       |   |        | 105,477 |    
|Interest expense: |                                                      |                            |                     |        |        |        |   |        |        |         |              |        |        |       |   |       
|                  | Interest-bearing deposits                            |                            |                     | 17,539 |        |        |   | 11,958 |        |         |              | 4,542  |        |       |   | 34,039 |        
|                  | Advances from Federal Home Loan Bank                 |                            |                     | 26,513 |        |        |   | 18,065 |        |         |              | 7,387  |        |       |   | 51,965 |        
|                  | Other borrowings                                     |                            |                     | (6,060 | )      |        |   | 29,612 |        |         |              | (3,993 | )      |       |   | 19,559 |        
|                  |                                                      |                            |                     |        |        |        |   |        |        |         |              |       
|                  |                                                      | Total interest expense     |                     |        | 37,992 |        |   |        | 59,635 |         |              |        | 7,936  |       |   |        | 105,563 |    
|                  |                                                      |                            |                     |        |        |        |   |        |        |         |              |       
|                  |                                                      |                            | Net interest income |        | $      | 50,106 |   |        | $      | (59,256 | )            |        | $      | 9,064 |   |        | $       | (86 | )
|                  |                                                      |                            |                     |        |        |        |   |        |        |         |              |       

47



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##### Table of Contents






OVERALL INTEREST RATE RISK MANAGEMENT






|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |   |           |            |  |   |           |            | 
|------------------------------------ | ----------------- | ---------------------- | --------- | ------------------- | ----------------- | - | --------- | ---------- | ------------------- | - | ---------- | ---------- |  | ------- | --------- | ---------- | ------- | - | --------- | ---------- |  | - | --------- | ---------- | 
|                                     |                   | June 30, 2005          |           |                     | December 31, 2004 |  
|                                     |                   |                        |           |                     |                   |  
|                                     |                   |                        |           | Effect of Change in |                   |   |           |            | Effect of Change in |  
|                                     |                   |                        |           | Interest Rates      |                   |   |           |            | Interest Rates      |  
|                                     |                   |                        |           |                     |                   |   |           |            |                     |  
|                                     |                   |                        |           | Decrease            |                   |   | Increase  |            |                     |   |            | Decrease   |  |         | Increase  |           
|                                     |                   | Fair Value             |           |                     | 100 bps           |   |           | 100 bps    |                     |   | Fair Value |            |  | 100 bps |           |            | 100 bps |  
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|                                     |                   | (Dollars in thousands) |          
|Cash and cash equivalents            |                   | $                      | 352,482   |                     |                   | $ | 352,482   |            |                     | $ | 352,482    |            |  | $       | 352,664   |            |         | $ | 352,664   |            |  | $ | 352,664   |           
|Trading securities                   |                   |                        | 216,573   |                     |                   |   | 214,103   |            |                     |   | 222,308    |            |  |         | 215,480   |            |         |   | 202,801   |            |  |   | 224,716   |           
|Available for sale securities        |                   |                        | 2,304,438 |                     |                   |   | 2,331,927 |            |                     |   | 2,253,616  |            |  |         | 2,362,108 |            |         |   | 2,398,485 |            |  |   | 2,303,858 |           
|Loans held for sale                  |                   |                        | 6,086,526 |                     |                   |   | 6,127,848 |            |                     |   | 6,002,193  |            |  |         | 4,474,459 |            |         |   | 4,530,902 |            |  |   | 4,385,744 |           
|Loans held for investment            |                   |                        | 7,475,437 |                     |                   |   | 7,541,068 |            |                     |   | 7,368,808  |            |  |         | 6,725,541 |            |         |   | 6,792,345 |            |  |   | 6,616,173 |           
|MSRs                                 |                   |                        | 743,869   |                     |                   |   | 593,041   |            |                     |   | 861,747    |            |  |         | 640,794   |            |         |   | 509,099   |            |  |   | 728,703   |           
|Other assets                         |                   |                        | 1,097,083 |                     |                   |   | 1,140,457 |            |                     |   | 1,132,815  |            |  |         | 898,496   |            |         |   | 959,259   |            |  |   | 926,602   |           
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|                                     | Total assets      |                        | $         | 18,276,408          |                   |   | $         | 18,300,926 |                     |   | $          | 18,193,969 |  |         | $         | 15,669,542 |         |   | $         | 15,745,555 |  |   | $         | 15,538,460 | 
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|Deposits                             |                   | $                      | 6,567,010 |                     |                   | $ | 6,620,743 |            |                     | $ | 6,523,651  |            |  | $       | 5,688,988 |            |         | $ | 5,741,396 |            |  | $ | 5,640,149 |           
|Advances from Federal Home Loan Bank |                   |                        | 7,597,772 |                     |                   |   | 7,621,742 |            |                     |   | 7,574,172  |            |  |         | 6,160,151 |            |         |   | 6,189,573 |            |  |   | 6,131,386 |           
|Other borrowings                     |                   |                        | 1,873,000 |                     |                   |   | 1,874,394 |            |                     |   | 1,871,609  |            |  |         | 1,865,801 |            |         |   | 1,867,124 |            |  |   | 1,864,481 |           
|Other liabilities                    |                   |                        | 423,762   |                     |                   |   | 424,107   |            |                     |   | 423,417    |            |  |         | 299,876   |            |         |   | 300,119   |            |  |   | 299,631   |           
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|                                     | Total liabilities |                        |           | 16,461,544          |                   |   |           | 16,540,986 |                     |   |            | 16,392,849 |  |         |           | 14,014,816 |         |   |           | 14,098,212 |  |   |           | 13,935,647 | 
|Shareholders equity (NPV)           |                   | $                      | 1,814,864 |                     |                   | $ | 1,759,940 |            |                     | $ | 1,801,120  |            |  | $       | 1,654,726 |            |         | $ | 1,647,343 |            |  | $ | 1,602,813 |           
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|% Change from base case              |                   |                        |           |                     |                   |   | (3.03     | )%         |                     |   | (0.76      | )%         |  |         |           |            |         |   | (0.45     | )%         |  |   | (3.14     | )%        
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  





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CREDIT RISK AND RESERVES




|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |        |        |   |       |     |       |   |       |       |       | 
|----------------------------------------------------------- | ---------------------------------------------- | ------------------------------------ | ----------------------------------- | --------- | --------- | ---------- | ------ | -------------- | ------ | ------------- | ---------- | ---- | ---------- | ------ | ------ | -------- | ----------- | ------ | -------- | ----------- | ------ | ------ | - | ----- | --- | ----- | - | ----- | ----- | ----- | 
|                                                            |                                                |                                      |                                     |           |           |            |        | Total Reserves |        |               |            |      | QTD Net    |        |        | YTD Net  |            
|                                                            |                                                |                                      |                                     | Allowance |           |            |        |                | as a   |               |            | Non- |            |        | Charge |          |             | Charge |         
|                                                            |                                                |                                      |                                     | For Loan  |           |            | Credit |                |        | Percentage of |            |      | Performing |        |        | Offs/Net |             |        | Offs/Net |            
|Type of Loan                                                |                                                | Book Value                           |                                     |           | Losses    |            |        | Discounts(2)   |        |               | Book Value |      |            | Assets |        |          | REO (Gains) |        |          | REO (Gains) |       
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|                                                            |                                                | (Dollars in thousands)               |                                    
|Held for investment portfolio                               |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |        |        |   |       |     |       |   |      
|                                                            | SFR mortgage loans and HELOCs                  |                                      | $                                   | 4,979,168 |           |            | $      | 18,544         |        |               | $          |     |            |        |        | 0.37%    |             |        | $        | 22,890      |        |        | $ | 254   |     |       | $ | 1,075 |      
|                                                            | Land and other mortgage loans                  |                                      |                                     | 183,032   |           |            |        | 3,500          |        |               |            |     |            |        |        | 1.91%    |             |        |          | 74          |        |        |   | 41    |     |       |   | 41    |      
|                                                            | Builder construction and income property loans |                                      |                                     | 752,466   |           |            |        | 14,557         |        |               |            |     |            |        |        | 1.93%    |             |        |          | 6,552       |        |        |   | 72    |     |       |   | 72    |      
|                                                            | Consumer construction loans                    |                                      |                                     | 1,493,948 |           |            |        | 10,130         |        |               |            |     |            |        |        | 0.68%    |             |        |          | 8,506       |        |        |   | 375   |     |       |   | 870   |      
|                                                            | Revolving warehouse Lines of credit            |                                      |                                     | 27,974    |           |            |        | 84             |        |               |            |     |            |        |        | 0.30%    |             |        |          |            |        |        |   |      |     |       |   |      |      
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|                                                            |                                                | Total core held for investment loans |                                     |           | 7,436,588 |            |        |                | 46,815 |               |            |      |           |        |        |          | 0.63%       |        |          |             | 38,022 |        |   |       | 742 |       |   |       | 2,058 |      
|                                                            | Discontinued product lines(1)                  |                                      |                                     | 49,369    |           |            |        | 7,254          |        |               |            |     |            |        |        | 14.69%   |             |        |          | 4,880       |        |        |   | 1,089 |     |       |   | 1,661 |      
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|                                                            |                                                |                                      | Total held for investment portfolio |           |           | 7,485,957  |        |                | $      | 54,069        |            |      |            |       |        |          |             | 0.72%  |          |             |        | 42,902 |   |       |     | 1,831 |   |       |       | 3,719 | 
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|Held for sale portfolio                                     |                                                |                                      | 6,046,746                           |           |           |            |        |                |        | $             | 9,597      |      |            |        | 0.16%  |          |             |        | 19,865   |             |        |        |  |       |     |       |  |      
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|                                                            |                                                |                                      | Total loans                         |           | $         | 13,532,703 |        |                |        |               |            |      |            |        |        |          |             |        |          |             |        | 62,767 |   |       | $   | 1,831 |   |       | $     | 3,719 | 
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|Foreclosed assets                                           |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |        |        |   |       |     |       |   |      
|Core portfolios                                             |                                                |                                      | 10,928                              |           |           | $          | (1,337 | )              |        | $             | (1,795     | )   
|Discontinued product lines                                  |                                                |                                      | 391                                 |           |           |            | 52     |                |        |               | 4          |     
|                                                            |                                                |                                      |                                     |           |           |            |        |                |       
|Total foreclosed assets                                     |                                                |                                      | 11,319                              |           |           | $          | (1,285 | )              |        | $             | (1,791     | )   
|                                                            |                                                |                                      |                                     |           |           |            |        |                |       
|Total non-performing assets                                 |                                                | $                                    | 74,086                              |           |           |            |        |                |        |               |            |     
|                                                            |                                                |                                      |                                     |           |           |            |        |                |       
|Total non-performing assets as a percentage of total assets |                                                |                                      | 0.38                                | %         |           |            |        |                |        |               |            |     
|                                                            |                                                |                                      |                                     |           |           |            |        |                |       






|    |                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------
|(1) | Discontinued product lines include manufactured home loans and
    home improvement, which were discontinued during 1999.
|   
|(2) | The amount represents the lower of cost or market adjustments on
    non-performing loans in the held for sale portfolio.



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|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |        |        |         |   |        |        |         | 
|------------------------------------------------------------------------- | --------------- | ---------------------------------------------- | ------------------------------------ | ---------------------------------------------- | -------- | ------ | ------ | ------------ | ------ | ------ | ------- | - | ------ | ------ | ------- | 
|                                                                          |                 | June 30,                                       |                                      |                                                | June 30, |        |        | December 31, |       
|                                                                          |                 | 2005                                           |                                      |                                                | 2004     |        |        | 2004         |       
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       
|                                                                          |                 | (Dollars in thousands)                         |                                     
|Loans held for investment                                                 |                 |                                                |                                      |                                                |          |        |        |              |        |        |         |  
|                                                                          | Portfolio loans |                                                |                                      |                                                |          |        |        |              |        |        |         |   |       
|                                                                          |                 | SFR mortgage loans                             |                                      | $                                              | 22,890   |        |        | $            | 12,625 |        |         | $ | 22,155 |       
|                                                                          |                 | Builder construction and income property loans |                                      |                                                | 6,552    |        |        |              | 9,162  |        |         |   | 11,546 |       
|                                                                          |                 | Consumer construction loans                    |                                      |                                                | 8,506    |        |        |              | 10,203 |        |         |   | 9,553  |       
|                                                                          |                 | Land and other mortgage loans                  |                                      |                                                | 74       |        |        |              |       |        |         |   |       |       
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       
|                                                                          |                 |                                                | Total portfolio non-performing loans |                                                |          | 38,022 |        |              |        | 31,990 |         |   |        | 43,254 |        
|                                                                          |                 |                                                | Discontinued product lines           |                                                |          | 4,880  |        |              |        | 6,024  |         |   |        | 5,868  |        
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       
|                                                                          |                 |                                                |                                      | Total non-performing loans held for investment |          |        | 42,902 |              |        |        | 38,014  |   |        |        | 49,122  | 
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       
|Allowance for loan losses to non-performing loans held for
    investment |                 |                                                | 126                                  | %                                              |          |        | 139    | %            |        |        | 108     | %
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       
|Non-performing loans held for sale                                        |                 |                                                | 19,865                               |                                                |          |        | 47,823 |              |        |        | 54,611  |  
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       
|                                                                          |                 |                                                |                                      | Total non-performing loans                     |          |        | 62,767 |              |        |        | 85,837  |   |        |        | 103,733 | 
|Foreclosed assets                                                         |                 |                                                | 11,319                               |                                                |          |        | 27,316 |              |        |        | 19,161  |  
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       
|                                                                          |                 |                                                |                                      | Total non-performing assets                    |          | $      | 74,086 |              |        | $      | 113,153 |   |        | $      | 122,894 | 
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       
|Total non-performing assets to total assets                               |                 |                                                | 0.38                                 | %                                              |          |        | 0.73   | %            |        |        | 0.73    | %
|                                                                          |                 |                                                |                                      |                                                |          |        |        |              |       

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|                                                            |                               |                                 |        |        |                  |   |        |          |        |   |          |        |        |   |        |        |        |  
|----------------------------------------------------------- | ----------------------------- | ------------------------------- | ------ | ------ | ---------------- | - | ------ | -------- | ------ | - | -------- | ------ | ------ | - | ------ | ------ | ------ | -
|                                                            |                               | Three Months Ended              |        |        | Six Months Ended |  
|                                                            |                               |                                 |        |        |                  |  
|                                                            |                               | June 30,                        |        |        | June 30,         |   |        | June 30, |        |   | June 30, |       
|                                                            |                               | 2005                            |        |        | 2004             |   |        | 2005     |        |   | 2004     |       
|                                                            |                               |                                 |        |        |                  |   |        |          |        |   |          |       
|                                                            |                               | (Dollars in thousands)          |       
|Core portfolio loans                                        |                               |                                 |        |        |                  |   |        |          |        |   |          |        |        |   |        |       
|Balance, beginning of period                                |                               | $                               | 45,700 |        |                  | $ | 45,043 |          |        | $ | 45,191   |        |        | $ | 45,644 |       
|Provision for loan losses                                   |                               |                                 | 1,857  |        |                  |   | 1,701  |          |        |   | 3,682    |        |        |   | 2,101  |       
|Charge-offs net of recoveries                               |                               |                                 |        |        |                  |   |        |          |        |   |          |        |        |   |        |       
|                                                            |                               | SFR mortgage loans              |        |        | (254             | ) |        |          | (1,120 | ) |          |        | (1,075 | ) |        |        | (2,046 | )
|                                                            |                               | Land and other mortgage loans   |        |        | (41              | ) |        |          |       |   |          |        | (41    | ) |        |        |       |  
|                                                            |                               | Builder construction            |        |        | (72              | ) |        |          | (10    | ) |          |        | (72    | ) |        |        | (10    | )
|                                                            |                               | Consumer construction           |        |        | (375             | ) |        |          | (329   | ) |          |        | (870   | ) |        |        | (404   | )
|                                                            |                               |                                 |        |        |                  |   |        |          |        |   |          |       
|                                                            | Charge-offs net of recoveries |                                 |        | (742   | )                |   |        | (1,459   | )      |   |          | (2,058 | )      |   |        | (2,460 | )     
|                                                            |                               |                                 |        |        |                  |   |        |          |        |   |          |       
|Balance, end of period                                      |                               |                                 | 46,815 |        |                  |   | 45,285 |          |        |   | 46,815   |        |        |   | 45,285 |       
|                                                            |                               |                                 |        |        |                  |   |        |          |        |   |          |       
|Discontinued product lines                                  |                               |                                 |        |        |                  |   |        |          |        |   |          |        |        |   |        |       
|Balance, beginning of period                                |                               |                                 | 7,793  |        |                  |   | 7,083  |          |        |   | 7,700    |        |        |   | 7,001  |       
|Provision for loan losses                                   |                               |                                 | 550    |        |                  |   | 1,499  |          |        |   | 1,215    |        |        |   | 2,599  |       
|                                                            | Charge-offs net of recoveries |                                 |        | (1,089 | )                |   |        | (1,071   | )      |   |          | (1,661 | )      |   |        | (2,089 | )     
|                                                            |                               |                                 |        |        |                  |   |        |          |        |   |          |       
|Balance, end of period                                      |                               |                                 | 7,254  |        |                  |   | 7,511  |          |        |   | 7,254    |        |        |   | 7,511  |       
|                                                            |                               |                                 |        |        |                  |   |        |          |        |   |          |       
|                                                            |                               | Total allowance for loan losses |        | $      | 54,069           |   |        | $        | 52,796 |   |          | $      | 54,069 |   |        | $      | 52,796 |  
|                                                            |                               |                                 |        |        |                  |   |        |          |        |   |          |       
|Annualized charge-offs to average loans held for investment |                               |                                 | 0.10   | %      |                  |   | 0.14   | %        |        |   | 0.10     | %      |        |   | 0.13   | %     
|Charge-offs to quarterly production                         |                               |                                 | 0.01   | %      |                  |   | 0.03   | %        |        |   | 0.01     | %      |        |   | 0.03   | %     
|Core portfolio loans only                                   |                               |                                 |        |        |                  |   |        |          |        |   |          |        |        |   |        |       
|Annualized charge-offs to average loans held for investment |                               |                                 | 0.04   | %      |                  |   | 0.08   | %        |        |   | 0.06     | %      |        |   | 0.07   | %     
|Charge-offs to quarterly production                         |                               |                                 | 0.01   | %      |                  |   | 0.01   | %        |        |   | 0.01     | %      |        |   | 0.01   | %     







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SECONDARY MARKET RESERVES




|                      |       |                       |       |       |            |   |            |             |  |  |      |      |  
|--------------------- | ----- | --------------------- | ----- | ----- | ---------- | - | ---------- | ----------- |  |  | ---- | ---- | -
|                      |       | Amount                |       |       |            |   | Percentage |            
|                      |       | Repurchased           |       |       | Total Sold |   |            | Repurchased | 
|                      |       |                       |       |       |            |   |            |             | 
|                      |       | (Dollars in millions) |      
|Loans sold:           |       |                       |       |       |            |   |            |             |  |  |      |     
|GSEs and whole loans  |       | $                     | 157.1 |       |            | $ | 63,153     |             |  |  | 0.25 | %   
|Securitization trusts |       |                       | 13.7  |       |            |   | 87,094     |             |  |  | 0.02 | %   
|                      |       |                       |       |       |            |   |            |             | 
|                      | Total |                       | $     | 170.8 |            |   | $          | 150,247     |  |  |      | 0.11 | %
|                      |       |                       |       |       |            |   |            |             | 



|                                                                                    |  |                        |        |   |        |   |        |  
|----------------------------------------------------------------------------------- |  | ---------------------- | ------ | - | ------ | - | ------ | -
|                                                                                    |  | Three                  |        |   | Six    |  
|                                                                                    |  | Months                 |        |   | Months |  
|                                                                                    |  |                        |        |   |        |  
|                                                                                    |  | (Dollars in thousands) |       
|Balance, Beginning of the Period                                                    |  | $                      | 36,357 |   |        | $ | 35,610 |  
|Additions/provisions                                                                |  |                        | 4,993  |   |        |   | 9,993  |  
|Claims reimbursement and estimated discounts on loans held for
    sale/charge-offs |  |                        | (4,845 | ) |        |   | (9,372 | )
|Recoveries on previous claims                                                       |  |                        | 538    |   |        |   | 812    |  
|                                                                                    |  |                        |        |   |        |  
|Balance, June 30, 2005                                                              |  | $                      | 37,043 |   |        | $ | 37,043 |  
|                                                                                    |  |                        |        |   |        |  

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OPERATING EXPENSES




|                                         |  |                        |         |   |                  |   |         |           |  |   |          |  |  |          |         |  |  |   |         | 
|---------------------------------------- |  | ---------------------- | ------- | - | ---------------- | - | ------- | --------- |  | - | -------- |  |  | -------- | ------- |  |  | - | ------- | 
|                                         |  | Three Months Ended     |         |   | Six Months Ended |  
|                                         |  |                        |         |   |                  |  
|                                         |  | June 30,               |         |   | June 30,         |   |         | March 31, |  |   | June 30, |  |  | June 30, |        
|                                         |  | 2005                   |         |   | 2004             |   |         | 2005      |  |   | 2005     |  |  | 2004     |        
|                                         |  |                        |         |   |                  |   |         |           |  |   |          |  |  |          |        
|                                         |  | (Dollars in thousands) |        
|Salaries and related                     |  | $                      | 82,267  |   |                  | $ | 51,149  |           |  | $ | 74,840   |  |  | $        | 157,107 |  |  | $ | 102,589 | 
|Premises and equipment                   |  |                        | 13,630  |   |                  |   | 9,938   |           |  |   | 12,613   |  |  |          | 26,243  |  |  |   | 19,531  | 
|Loan purchase costs                      |  |                        | 9,249   |   |                  |   | 10,244  |           |  |   | 8,720    |  |  |          | 17,969  |  |  |   | 17,551  | 
|Professional services                    |  |                        | 6,202   |   |                  |   | 5,844   |           |  |   | 6,956    |  |  |          | 13,158  |  |  |   | 10,917  | 
|Data processing                          |  |                        | 11,316  |   |                  |   | 8,580   |           |  |   | 9,913    |  |  |          | 21,229  |  |  |   | 17,171  | 
|Office                                   |  |                        | 8,383   |   |                  |   | 5,758   |           |  |   | 6,623    |  |  |          | 15,006  |  |  |   | 11,737  | 
|Advertising and promotion                |  |                        | 10,608  |   |                  |   | 9,167   |           |  |   | 11,150   |  |  |          | 21,758  |  |  |   | 18,023  | 
|Operations and sale of foreclosed assets |  |                        | (889    | ) |                  |   | 1,419   |           |  |   | 1,601    |  |  |          | 712     |  |  |   | 3,554   | 
|Litigation settlement                    |  |                        | 3,000   |   |                  |   |        |           |  |   | 6,000    |  |  |          | 9,000   |  |  |   |        | 
|Other                                    |  |                        | 6,802   |   |                  |   | 6,113   |           |  |   | 6,097    |  |  |          | 12,899  |  |  |   | 10,739  | 
|                                         |  |                        |         |   |                  |   |         |           |  |   |          |  |  |          |        
|                                         |  | $                      | 150,568 |   |                  | $ | 108,212 |           |  | $ | 144,513  |  |  | $        | 295,081 |  |  | $ | 211,812 | 
|                                         |  |                        |         |   |                  |   |         |           |  |   |          |  |  |          |        





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DIVIDEND







SHARE REPURCHASE ACTIVITIES






|                                     |                      |              |        |        |                |                 |                  |                     |              |                         |                     |   |  |   |      |      | 
|------------------------------------ | -------------------- | ------------ | ------ | ------ | -------------- | --------------- | ---------------- | ------------------- | ------------ | ----------------------- | ------------------- | - |  | - | ---- | ---- | 
|                                     |                      |              |        |        |                |                 |                  | Maximum Approximate |             
|                                     |                      |              |        |        |                | Total Number of |                  |                     | Dollar Value |                        
|                                     |                      | Total        |        |        |                |                 | Shares Purchased |                     |              | (in millions) of Shares |                    
|                                     |                      | Number of    |        |        | Weighted       |                 |                  | as Part of Publicly |              |                         | that May Yet Be     |  
|                                     |                      | Shares       |        |        | Average Price  |                 |                  | Announced Plans or  |              |                         | Purchased Under the |  
|Period                               |                      | Purchased(1) |        |        | Paid Per Share |                 |                  | Programs            |              |                         | Plans orPrograms(2) |  
|                                     |                      |              |        |        |                |                 |                  |                     |              |                         |                     |  
|January 1, 2005  January 31, 2005   |                      |              | 13,385 |        |                | $               | 34.67            |                     |              |                         |                    |   |  | $ | 63.6 |     
|February 1, 2005  February 28, 2005 |                      |              | 224    |        |                |                 | 38.69            |                     |              |                         |                    |   |  |   | 63.6 |     
|March 1, 2005  March 31, 2005       |                      |              |       |        |                |                 |                 |                     |              |                         |                    |   |  |   | 63.6 |     
|                                     |                      |              |        |        |                |                 |                  |                     |              |                         |                     |  
|                                     | First Quarter Total  |              |        | 13,609 |                |                 |                  | 34.73               |              |                         |                     |  |  |   |      | 63.6 | 
|                                     |                      |              |        |        |                |                 |                  |                     |              |                         |                     |  
|April 1, 2005  April 30, 2005       |                      |              |       |        |                |                 |                 |                     |              |                         |                    |   |  |   | 63.6 |     
|May 1, 2005  May 31, 2005           |                      |              | 2,251  |        |                |                 | 37.86            |                     |              |                         |                    |   |  |   | 63.6 |     
|June 1, 2005  June 30, 2005         |                      |              |       |        |                |                 |                 |                     |              |                         |                    |   |  |   | 63.6 |     
|                                     |                      |              |        |        |                |                 |                  |                     |              |                         |                     |  
|                                     | Second Quarter Total |              |        | 2,251  |                |                 |                  | 37.86               |              |                         |                     |  |  |   |      | 63.6 | 
|                                     |                      |              |        |        |                |                 |                  |                     |              |                         |                     |  
|Six Months Total                     |                      |              | 15,860 |        |                | $               | 35.18            |                     |              |                         |                    |   |  | $ | 63.6 |     
|                                     |                      |              |        |        |                |                 |                  |                     |              |                         |                     |  






|    |                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | All shares purchased during the periods indicated were purchased
    pursuant to the Companys stock incentive plans at the
    then-current market prices.                                                                                                                                                                      
|   
|(2) | Our Board of Directors approved a $100 million share
    repurchase program in June of 1999, which was subsequently
    increased by the Board to $500 million. The Board of
    Directors also approved a special repurchase of
    3,640,860 shares from Countrywide, which was not a part of
    our share repurchase program.




FUTURE OUTLOOK




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Share-Based
Payment


This Future Outlook section contains certain
forward-looking statements. See the section of this
Form 10-Q entitled Forward-Looking Statements
for a description of factors which may cause our actual results
to differ from those anticipated.





LIQUIDITY AND CAPITAL RESOURCES





OVERVIEW







PRINCIPAL SOURCES OF CASH


Loan Sales and Securitizations




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Advances from Federal Home Loan Bank




Deposits/ Retail Bank


www.indymacbank.com






|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |   |           |           |  |  |    |     |  
|----------------------------- | ------------------- | ---------------------- | --------- | --------- | ------------- |  | -- | ----------------- | ----- | - | --------- | --------- |  | ------ | -- | --- | -------- | - | --------- | --------- |  |  | -- | --- | -
|                              |                     | June 30, 2005          |           |           | June 30, 2004 |  |    | December 31, 2004 |      
|                              |                     |                        |           |           |               |  |    |                   |      
|                              |                     |                        |           | % of      |               |  |    |                   | % of  |   |           |           |  | % of   |   
|                              |                     |                        |           | Total     |               |  |    |                   | Total |   |           |           |  | Total  |   
|                              |                     | Amount                 |           |           | Deposits      |  |    | Amount            |       |   | Deposits  |           |  | Amount |    |     | Deposits |  
|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|                              |                     | (Dollars in thousands) |          
|Non-interest-bearing checking |                     | $                      | 63,848    |           |               |  | 1  | %                 |       | $ | 49,299    |           |  |        | 1  | %   |          | $ | 55,359    |           |  |  | 1  | %  
|Interest-bearing checking     |                     |                        | 51,566    |           |               |  | 1  | %                 |       |   | 42,030    |           |  |        | 1  | %   |          |   | 42,306    |           |  |  | 1  | %  
|Savings                       |                     |                        | 1,276,499 |           |               |  | 19 | %                 |       |   | 1,757,560 |           |  |        | 37 | %   |          |   | 1,527,466 |           |  |  | 27 | %  
|Custodial accounts            |                     |                        | 636,469   |           |               |  | 10 | %                 |       |   | 616,470   |           |  |        | 13 | %   |          |   | 622,589   |           |  |  | 11 | %  
|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|                              | Total core deposits |                        |           | 2,028,382 |               |  |    | 31                | %     |   |           | 2,465,359 |  |        |    | 52  | %        |   |           | 2,247,720 |  |  |    | 40  | %
|Certificates of deposit       |                     |                        | 4,556,150 |           |               |  | 69 | %                 |       |   | 2,293,196 |           |  |        | 48 | %   |          |   | 3,495,759 |           |  |  | 60 | %  
|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|                              | Total deposits      |                        | $         | 6,584,532 |               |  |    | 100               | %     |   | $         | 4,758,555 |  |        |    | 100 | %        |   | $         | 5,743,479 |  |  |    | 100 | %
|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  

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|            |                |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |   |           |           |  |  |    |     |  
|----------- | -------------- | ---------------------- | --------- | --------- | ------------- |  | -- | ----------------- | ----- | - | --------- | --------- |  | ------ | -- | --- | -------- | - | --------- | --------- |  |  | -- | --- | -
|            |                | June 30, 2005          |           |           | June 30, 2004 |  |    | December 31, 2004 |      
|            |                |                        |           |           |               |  |    |                   |      
|            |                |                        |           | % of      |               |  |    |                   | % of  |   |           |           |  | % of   |   
|            |                |                        |           | Total     |               |  |    |                   | Total |   |           |           |  | Total  |   
|            |                | Amount                 |           |           | Deposits      |  |    | Amount            |       |   | Deposits  |           |  | Amount |    |     | Deposits |  
|            |                |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|            |                | (Dollars in thousands) |          
|Branch      |                | $                      | 2,868,298 |           |               |  | 44 | %                 |       | $ | 1,903,211 |           |  |        | 40 | %   |          | $ | 2,271,605 |           |  |  | 40 | %  
|Internet    |                |                        | 664,079   |           |               |  | 10 | %                 |       |   | 520,536   |           |  |        | 11 | %   |          |   | 579,503   |           |  |  | 10 | %  
|Telebanking |                |                        | 760,710   |           |               |  | 12 | %                 |       |   | 486,926   |           |  |        | 10 | %   |          |   | 639,584   |           |  |  | 11 | %  
|Money desk  |                |                        | 1,654,976 |           |               |  | 25 | %                 |       |   | 1,231,412 |           |  |        | 26 | %   |          |   | 1,630,199 |           |  |  | 28 | %  
|Custodial   |                |                        | 636,469   |           |               |  | 9  | %                 |       |   | 616,470   |           |  |        | 13 | %   |          |   | 622,588   |           |  |  | 11 | %  
|            |                |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|            | Total deposits |                        | $         | 6,584,532 |               |  |    | 100               | %     |   | $         | 4,758,555 |  |        |    | 100 | %        |   | $         | 5,743,479 |  |  |    | 100 | %
|            |                |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  



Trust Preferred Securities and Warrants






Consolidation of Variable Interest Entities, an
Interpretation of Accounting Research Bulletin (ARB)
No. 51,


Other Borrowings, Excluding Subordinated Debentures
Underlying Trust Preferred Securities


.




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PRINCIPAL USES OF CASH







ACCUMULATED OTHER COMPREHENSIVE LOSS







REGULATORY CAPITAL REQUIREMENTS






58



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|                  |  |                |       |   |                     |  |       |                  |  |  |       |  
|----------------- |  | -------------- | ----- | - | ------------------- |  | ----- | ---------------- |  |  | ----- | -
|                  |  | As Reported    |       |   | Adjusted for        |  |       |                 
|                  |  | Pre-Subprime   |       |   | Additional Subprime |  |       | Well-Capitalized | 
|                  |  | Risk-Weighting |       |   | Risk-Weighting      |  |       | Minimum          | 
|                  |  |                |       |   |                     |  |       |                  | 
|Capital Ratios:   |  |                |       |   |                     |  |       |                  |  |  |       |  
|Tier 1 core       |  |                | 7.22  | % |                     |  | 7.22  | %                |  |  | 5.00  | %
|Tier 1 risk-based |  |                | 11.44 | % |                     |  | 11.31 | %                |  |  | 6.00  | %
|Total risk-based  |  |                | 11.90 | % |                     |  | 11.77 | %                |  |  | 10.00 | %






OFF-BALANCE SHEET ARRANGEMENTS












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AGGREGATE CONTRACTUAL OBLIGATIONS




|                                                |  |                        |            |  |                   |   |           |                   |  |   |                   |  |  |       |           |  |  |   |            | 
|----------------------------------------------- |  | ---------------------- | ---------- |  | ----------------- | - | --------- | ----------------- |  | - | ----------------- |  |  | ----- | --------- |  |  | - | ---------- | 
|                                                |  | Payment Due            |           
|                                                |  |                        |           
|                                                |  | July 1, 2005           |            |  | January 1, 2006   |   |           | January 1, 2008   |  |   |                  
|                                                |  | through                |            |  | through           |   |           | through           |  |   | After             |  |  |      
|                                                |  | December 31, 2005      |            |  | December 31, 2007 |   |           | December 31, 2009 |  |   | December 31, 2009 |  |  | Total |          
|                                                |  |                        |            |  |                   |   |           |                   |  |   |                   |  |  |       |          
|                                                |  | (Dollars in thousands) |           
|Deposits Without a Stated Maturity              |  | $                      | 1,391,913  |  |                   | $ |          |                   |  | $ |                  |  |  | $     |          |  |  | $ | 1,391,913  | 
|Custodial Accounts and Certificates of Deposits |  |                        | 3,450,076  |  |                   |   | 1,692,911 |                   |  |   | 46,716            |  |  |       | 2,916     |  |  |   | 5,192,619  | 
|FHLB Advances                                   |  |                        | 5,961,000  |  |                   |   | 1,572,000 |                   |  |   | 65,000            |  |  |       |          |  |  |   | 7,598,000  | 
|Repurchase Agreements                           |  |                        | 1,951,185  |  |                   |   |          |                   |  |   |                  |  |  |       |          |  |  |   | 1,951,185  | 
|HELOC Notes(1)                                  |  |                        |           |  |                   |   |          |                   |  |   |                  |  |  |       | 997,602   |  |  |   | 997,602    | 
|Other Notes                                     |  |                        | 1,055      |  |                   |   |          |                   |  |   |                  |  |  |       | 1,055     |  |  |   | 2,110      | 
|Trust Preferred Debentures                      |  |                        |           |  |                   |   |          |                   |  |   |                  |  |  |       | 215,537   |  |  |   | 215,537    | 
|Accrued Interest Payable                        |  |                        | 65,406     |  |                   |   |          |                   |  |   |                  |  |  |       |          |  |  |   | 65,406     | 
|Deferred Compensation                           |  |                        | 272        |  |                   |   | 2,660     |                   |  |   | 7,989             |  |  |       | 22,032    |  |  |   | 32,953     | 
|Operating Leases(2)                             |  |                        | 11,168     |  |                   |   | 45,323    |                   |  |   | 37,068            |  |  |       | 35,904    |  |  |   | 129,463    | 
|Employment Agreements(3)                        |  |                        | 5,086      |  |                   |   | 12,480    |                   |  |   | 325               |  |  |       |          |  |  |   | 17,891     | 
|Purchase Obligations                            |  |                        | 920        |  |                   |   | 7,376     |                   |  |   |                  |  |  |       |          |  |  |   | 8,296      | 
|                                                |  |                        |            |  |                   |   |           |                   |  |   |                   |  |  |       |          
|Total                                           |  | $                      | 12,838,081 |  |                   | $ | 3,332,750 |                   |  | $ | 157,098           |  |  | $     | 1,275,046 |  |  | $ | 17,602,975 | 
|                                                |  |                        |            |  |                   |   |           |                   |  |   |                   |  |  |       |          






|    |                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | HELOC notes are non-recourse and secured by AAA-rated HELOC
    certificates.                                                                                                                                
|   
|(2) | Total lease commitments are net of sublease rental income.                                                                                                                                                   
|   
|(3) | Represents compensation for ten senior executives and includes
    both base salary and estimated bonuses. Amount is calculated
    based on the terms in their respective written employment
    agreements.



|                              |                             |                        |        |           | 
|----------------------------- | --------------------------- | ---------------------- | ------ | --------- | 
|                              |                             | Payment Due            |       
|                              |                             |                        |       
|                              |                             | (Dollars in thousands) |       
|Undisbursed loan commitments: |                             |                        |        |          
|                              | Builder construction        |                        | $      | 904,359   | 
|                              | Consumer construction       |                        |        | 1,105,993 | 
|                              | HELOCs                      |                        |        | 479,115   | 
|                              | Revolving warehouse lending |                        |        | 29,928    | 
|Letters of credit             |                             | $                      | 11,520 |          



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KEY OPERATING RISKS







INTEREST RATE RISK







VALUATION RISK







CREDIT RISK






61



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LIQUIDITY RISK









CYCLICAL INDUSTRY







COMPETITION









LAWS AND REGULATIONS




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GEOGRAPHIC CONCENTRATION







BUSINESS EXECUTION AND TECHNOLOGY RISK









CRITICAL ACCOUNTING POLICIES AND JUDGMENTS











|        |                                                               
|------- | --------------------------------------------------------------
|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK



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|        |                     
|------- | --------------------
|ITEM 1. | FINANCIAL STATEMENTS

INDYMAC BANCORP, INC. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          |                                 |         |              |           |           |         |            |           | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | ------- | ------------ | --------- | --------- | ------- | ---------- | --------- | 
|                                                                                                                                                                                                                                                                                            |                           | June 30,                                                                                                                                                 |                                 |         | December 31, |          
|                                                                                                                                                                                                                                                                                            |                           | 2005                                                                                                                                                     |                                 |         | 2004         |          
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          |                                 |         |              |          
|                                                                                                                                                                                                                                                                                            |                           | Unaudited                                                                                                                                                |                                 |         |             
|                                                                                                                                                                                                                                                                                            |                           | (Dollars in thousands)                                                                                                                                   |                                
|Assets                                                                                                                                                                                                                                                                                      |                           |                                                                                                                                                          |                                 |         |              |           |           |        
|Cash and cash equivalents                                                                                                                                                                                                                                                                   |                           | $                                                                                                                                                        | 353,974                         |         |              | $         | 356,157   |        
|Securities classified as trading ($42.1 million and
    $54.4 million pledged as collateral for borrowings at
    June 30, 2005 and December 31, 2004, respectively)                                                                                                                        |                           |                                                                                                                                                          | 232,312                         |         |              |           | 235,036   |        
|Securities classified as available for sale, amortized cost of
    $3.4 billion and $3.5 billion at June 30, 2005
    and December 31, 2004, respectively ($2.2 billion and
    $2.3 billion pledged as collateral for borrowings at
    June 30, 2005 and December 31, 2004, respectively) |                           |                                                                                                                                                          | 3,389,920                       |         |              |           | 3,454,435 |        
|Loans receivable:                                                                                                                                                                                                                                                                           |                           |                                                                                                                                                          |                                 |         |              |           |           |        
|                                                                                                                                                                                                                                                                                            | Loans held for sale       |                                                                                                                                                          |                                 |         |              |           |           |         |           
|                                                                                                                                                                                                                                                                                            |                           | Prime                                                                                                                                                    |                                 |         | 5,149,692    |           |           |         | 3,491,064  |          
|                                                                                                                                                                                                                                                                                            |                           | Subprime                                                                                                                                                 |                                 |         | 360,761      |           |           |         | 563,274    |          
|                                                                                                                                                                                                                                                                                            |                           | HELOC                                                                                                                                                    |                                 |         | 421,781      |           |           |         | 358,410    |          
|                                                                                                                                                                                                                                                                                            |                           | Consumer lot loans                                                                                                                                       |                                 |         | 104,915      |           |           |         | 32,824     |          
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          |                                 |         |              |          
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          | Total loans held for sale       |         |              | 6,037,149 |           |         |            | 4,445,572 | 
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          |                                 |         |              |          
|                                                                                                                                                                                                                                                                                            | Loans held for investment |                                                                                                                                                          |                                 |         |              |           |           |         |           
|                                                                                                                                                                                                                                                                                            |                           | SFR mortgage                                                                                                                                             |                                 |         | 4,989,025    |           |           |         | 4,458,784  |          
|                                                                                                                                                                                                                                                                                            |                           | Consumer construction                                                                                                                                    |                                 |         | 1,493,948    |           |           |         | 1,443,450  |          
|                                                                                                                                                                                                                                                                                            |                           | Builder construction                                                                                                                                     |                                 |         | 752,466      |           |           |         | 643,116    |          
|                                                                                                                                                                                                                                                                                            |                           | HELOC                                                                                                                                                    |                                 |         | 39,512       |           |           |         | 45,932     |          
|                                                                                                                                                                                                                                                                                            |                           | Land and other mortgage                                                                                                                                  |                                 |         | 183,032      |           |           |         | 158,471    |          
|                                                                                                                                                                                                                                                                                            |                           | Revolving warehouse lines of credit                                                                                                                      |                                 |         | 27,974       |           |           |         |           |          
|                                                                                                                                                                                                                                                                                            | Allowance for loan losses |                                                                                                                                                          |                                 | (54,069 | )            |           |           | (52,891 | )         
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          |                                 |         |              |          
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          | Total loans held for investment |         |              | 7,431,888 |           |         |            | 6,696,862 | 
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          |                                 |         |              |          
|                                                                                                                                                                                                                                                                                            |                           | Total loans receivable ($9.5 billion and $8.1 billion
    pledged as collateral for borrowings at June 30, 2005 and
    December 31, 2004, respectively) |                                 |         | 13,469,037   |           |           |         | 11,142,434 |          
|Mortgage servicing rights                                                                                                                                                                                                                                                                   |                           |                                                                                                                                                          | 738,844                         |         |              |           | 640,794   |        
|Investment in Federal Home Loan Bank stock                                                                                                                                                                                                                                                  |                           |                                                                                                                                                          | 484,569                         |         |              |           | 390,716   |        
|Interest receivable                                                                                                                                                                                                                                                                         |                           |                                                                                                                                                          | 97,264                          |         |              |           | 78,827    |        
|Goodwill and other intangible assets                                                                                                                                                                                                                                                        |                           |                                                                                                                                                          | 81,131                          |         |              |           | 81,445    |        
|Foreclosed assets                                                                                                                                                                                                                                                                           |                           |                                                                                                                                                          | 11,319                          |         |              |           | 19,161    |        
|Other assets                                                                                                                                                                                                                                                                                |                           |                                                                                                                                                          | 557,517                         |         |              |           | 426,639   |        
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          |                                 |         |              |          
|                                                                                                                                                                                                                                                                                            |                           | Total assets                                                                                                                                             |                                 | $       | 19,415,887   |           |           | $       | 16,825,644 |          
|                                                                                                                                                                                                                                                                                            |                           |                                                                                                                                                          |                                 |         |              |          

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|                                     |                                                                                                                                                                                                                                  |                                            |           |           |              |   |           |           |            | 
|------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | --------- | --------- | ------------ | - | --------- | --------- | ---------- | 
|                                     |                                                                                                                                                                                                                                  | June 30,                                   |           |           | December 31, |  
|                                     |                                                                                                                                                                                                                                  | 2005                                       |           |           | 2004         |  
|                                     |                                                                                                                                                                                                                                  |                                            |           |           |              |  
|                                     |                                                                                                                                                                                                                                  | Unaudited                                  |           |           |             
|                                     |                                                                                                                                                                                                                                  | (Dollars in thousands)                     |          
|                                    
|Liabilities and Shareholders Equity |                                                                                                                                                                                                                                  |                                            |           |           |              |   |           |          
|Deposits                             |                                                                                                                                                                                                                                  | $                                          | 6,584,532 |           |              | $ | 5,743,479 |          
|Advances from Federal Home Loan Bank |                                                                                                                                                                                                                                  |                                            | 7,598,000 |           |              |   | 6,162,000 |          
|Other borrowings                     |                                                                                                                                                                                                                                  |                                            | 3,166,434 |           |              |   | 3,162,241 |          
|Other liabilities                    |                                                                                                                                                                                                                                  |                                            | 661,963   |           |              |   | 493,953   |          
|                                     |                                                                                                                                                                                                                                  |                                            |           |           |              |  
|                                     |                                                                                                                                                                                                                                  | Total liabilities                          |           |           | 18,010,929   |   |           |           | 15,561,673 | 
|                                     |                                                                                                                                                                                                                                  |                                            |           |           |              |  
|Shareholders Equity                 |                                                                                                                                                                                                                                  |                                            |           |           |              |   |           |          
|                                     | Preferred stock  authorized, 10,000,000 shares
    of $0.01 par value; none issued                                                                                                                                              |                                            |           |          |              |   |           |          |           
|                                     | Common stock  authorized, 200,000,000 shares of
    $0.01 par value; issued 92,701,254 shares (63,511,959
    outstanding) at June 30, 2005, and issued
    91,168,915 shares (61,995,480 outstanding) at
    December 31, 2004 |                                            |           | 927       |              |   |           | 912       |           
|                                     | Additional paid-in-capital                                                                                                                                                                                                       |                                            |           | 1,220,558 |              |   |           | 1,186,682 |           
|                                     | Accumulated other comprehensive loss                                                                                                                                                                                             |                                            |           | (15,033   | )            |   |           | (20,304   | )         
|                                     | Retained earnings                                                                                                                                                                                                                |                                            |           | 718,899   |              |   |           | 616,516   |           
|                                     | Treasury stock, 29,189,295 shares and
    29,173,435 shares at June 30, 2005 and
    December 31, 2004, respectively                                                                                                             |                                            |           | (520,393  | )            |   |           | (519,835  | )         
|                                     |                                                                                                                                                                                                                                  |                                            |           |           |              |  
|                                     |                                                                                                                                                                                                                                  | Total shareholders equity                 |           |           | 1,404,958    |   |           |           | 1,263,971  | 
|                                     |                                                                                                                                                                                                                                  |                                            |           |           |              |  
|                                     |                                                                                                                                                                                                                                  | Total liabilities and shareholders equity |           | $         | 19,415,887   |   |           | $         | 16,825,644 | 
|                                     |                                                                                                                                                                                                                                  |                                            |           |           |              |  



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INDYMAC BANCORP, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF EARNINGS


|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |         |         |         |        | 
|------------------------------------ | ----------------------------------------------------------------- | --------------------------------------------- | --------------------------------------------------- | ------------ | ------------------ | ------- | ------ | ------- | ------- | ------- | ------ | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------ | 
|                                     |                                                                   | For the Three Months                          |                                                     |              | For the Six Months |        
|                                     |                                                                   | Ended June 30,                                |                                                     |              | Ended June 30,     |        
|                                     |                                                                   |                                               |                                                     |              |                    |        
|                                     |                                                                   | 2005                                          |                                                     |              | 2004               |         |        | 2005    |         |         | 2004   |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   | (Unaudited)                                   |                                                    
|                                     |                                                                   | (Dollars in thousands, except per share data) |                                                    
|Interest income                      |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |        
|Mortgage-backed and other securities |                                                                   | $                                             | 47,701                                              |              |                    | $       | 34,365 |         |         | $       | 99,025 |         |         | $       | 61,220  |        
|Loans held for sale                  |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |        
|                                     | Prime                                                             |                                               |                                                     | 67,256       |                    |         |        | 58,842  |         |         |        | 124,553 |         |         |         | 103,173 |        
|                                     | Subprime                                                          |                                               |                                                     | 11,622       |                    |         |        | 7,681   |         |         |        | 26,119  |         |         |         | 16,189  |        
|                                     | HELOC                                                             |                                               |                                                     | 6,002        |                    |         |        |        |         |         |        | 12,354  |         |         |         |        |        
|                                     | Consumer lot loans                                                |                                               |                                                     | 2,876        |                    |         |        | 2,872   |         |         |        | 4,113   |         |         |         | 4,779   |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   | Total loans held for sale                     |                                                     |              | 87,756             |         |        |         | 69,395  |         |        |         | 167,139 |         |         |         | 124,141 |        
|Loans held for investment            |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |        
|                                     | SFR mortgage                                                      |                                               |                                                     | 56,936       |                    |         |        | 49,744  |         |         |        | 108,934 |         |         |         | 98,962  |        
|                                     | Consumer construction                                             |                                               |                                                     | 19,372       |                    |         |        | 17,003  |         |         |        | 38,657  |         |         |         | 32,998  |        
|                                     | Builder construction                                              |                                               |                                                     | 15,535       |                    |         |        | 8,621   |         |         |        | 28,528  |         |         |         | 16,147  |        
|                                     | Land and other mortgage                                           |                                               |                                                     | 3,694        |                    |         |        | 2,957   |         |         |        | 7,331   |         |         |         | 5,935   |        
|                                     | HELOC                                                             |                                               |                                                     | 541          |                    |         |        | 4,325   |         |         |        | 1,124   |         |         |         | 10,684  |        
|                                     | Revolving warehouse lines of credit                               |                                               |                                                     | 168          |                    |         |        |        |         |         |        | 170     |         |         |         |        |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   | Total loans held for investment               |                                                     |              | 96,246             |         |        |         | 82,650  |         |        |         | 184,744 |         |         |         | 164,726 |        
|Other                                |                                                                   |                                               | 7,043                                               |              |                    |         | 3,898  |         |         |         | 11,436 |         |         |         | 6,780   |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   | Total interest income                         |                                                     |              | 238,746            |         |        |         | 190,308 |         |        |         | 462,344 |         |         |         | 356,867 |        
|Interest expense                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |        
|                                     | Deposits                                                          |                                               |                                                     | 44,326       |                    |         |        | 23,697  |         |         |        | 80,218  |         |         |         | 46,179  |        
|                                     | Advances from Federal Home Loan Bank                              |                                               |                                                     | 64,091       |                    |         |        | 33,919  |         |         |        | 116,804 |         |         |         | 64,839  |        
|                                     | Other borrowings                                                  |                                               |                                                     | 33,924       |                    |         |        | 25,714  |         |         |        | 64,497  |         |         |         | 44,938  |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   | Total interest expense                        |                                                     |              | 142,341            |         |        |         | 83,330  |         |        |         | 261,519 |         |         |         | 155,956 |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   |                                               | Net interest income                                 |              |                    | 96,405  |        |         |         | 106,978 |        |         |         | 200,825 |         |         |         | 200,911 |       
|Provision for loan losses            |                                                                   |                                               | 2,407                                               |              |                    |         | 3,200  |         |         |         | 4,897  |         |         |         | 4,700   |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   |                                               | Net interest income after provision for loan losses |              |                    | 93,998  |        |         |         | 103,778 |        |         |         | 195,928 |         |         |         | 196,211 |       
|Other income                         |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |        
|                                     | Gain on sale of loans                                             |                                               |                                                     | 159,377      |                    |         |        | 66,084  |         |         |        | 303,699 |         |         |         | 149,752 |        
|                                     | Service fee (loss) income                                         |                                               |                                                     | 10,799       |                    |         |        | (27,807 | )       |         |        | 15,217  |         |         |         | (30,951 | )      
|                                     | Gain (loss) on mortgage-backed securities, net                    |                                               |                                                     | 15,851       |                    |         |        | (3,414  | )       |         |        | 11,205  |         |         |         | (8,401  | )      
|                                     | Fee and other income                                              |                                               |                                                     | 8,646        |                    |         |        | 7,692   |         |         |        | 15,971  |         |         |         | 12,816  |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   | Total other income                            |                                                     |              | 194,673            |         |        |         | 42,555  |         |        |         | 346,092 |         |         |         | 123,216 |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   |                                               | Net revenues                                        |              |                    | 288,671 |        |         |         | 146,333 |        |         |         | 542,020 |         |         |         | 319,427 |       
|Other expense                        |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |        
|                                     | Operating expenses                                                |                                               |                                                     | 150,568      |                    |         |        | 108,212 |         |         |        | 295,081 |         |         |         | 211,812 |        
|                                     | Amortization of other intangible assets                           |                                               |                                                     | 150          |                    |         |        | 179     |         |         |        | 307     |         |         |         | 367     |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   | Total other expense                           |                                                     |              | 150,718            |         |        |         | 108,391 |         |        |         | 295,388 |         |         |         | 212,179 |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     | Earnings before provision for income taxes and minority interests |                                               |                                                     | 137,953      |                    |         |        | 37,942  |         |         |        | 246,632 |         |         |         | 107,248 |        
|                                     |                                                                   | Provision for income taxes                    |                                                     |              | 54,491             |         |        |         | 14,987  |         |        |         | 97,419  |         |         |         | 42,363  |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   |                                               | Net earnings before minority interests              |              |                    | 83,462  |        |         |         | 22,955  |        |         |         | 149,213 |         |         |         | 64,885  |       
|                                     | Minority interests                                                |                                               |                                                     | 316          |                    |         |        |        |         |         |        | 591     |         |         |         |        |        
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|                                     |                                                                   |                                               |                                                     | Net earnings |                    | $       | 83,146 |         |         | $       | 22,955 |         |         | $       | 148,622 |         |         | $       | 64,885 | 
|                                     |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |        
|Earnings per share:                  |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |        
|                                     | Basic                                                             |                                               | $                                                   | 1.33         |                    |         | $      | 0.39    |         |         | $      | 2.40    |         |         | $       | 1.13    |        
|                                     | Diluted                                                           |                                               | $                                                   | 1.26         |                    |         | $      | 0.38    |         |         | $      | 2.28    |         |         | $       | 1.08    |        
|Weighted-average shares outstanding: |                                                                   |                                               |                                                     |              |                    |         |        |         |         |         |        |         |         |         |         |        
|                                     | Basic                                                             |                                               |                                                     | 62,304       |                    |         |        | 58,137  |         |         |        | 62,052  |         |         |         | 57,548  |        
|                                     | Diluted                                                           |                                               |                                                     | 65,799       |                    |         |        | 60,588  |         |         |        | 65,281  |         |         |         | 60,180  |        
|Dividends declared per share         |                                                                   | $                                             | 0.38                                                |              |                    | $       | 0.32   |         |         | $       | 0.74   |         |         | $       | 0.62    |        



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##### Table of Contents



INDYMAC BANCORP, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY AND
COMPREHENSIVE INCOME


|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |   |  |   |          |   |  |   |           |  
|------------------------------------------------------------------------ |  | ---------------------- | ---------- | - | ------ | ---------- | --- | ----------- | ----- | - | ------------- |  |  | -------- | ------- | - | ------------- | - | ------- | -------- |  | - | ------------- | - |  | - | -------- | - |  | - | --------- | -
|                                                                         |  |                        |            |   |        |            |     | Accumulated |       |   |               |  |  |          |         |   |              
|                                                                         |  |                        |            |   |        | Additional |     |             | Other |   |               |  |  | Total    |         |   |               |   | Total   |         
|                                                                         |  | Shares                 |            |   | Common |            |     | Paid-In-    |       |   | Comprehensive |  |  | Retained |         |   | Comprehensive |   |         | Treasury |  |   | Shareholders |  
|                                                                         |  | Outstanding            |            |   | Stock  |            |     | Capital     |       |   | Loss          |  |  | Earnings |         |   | Income        |   |         | Stock    |  |   | Equity        |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|                                                                         |  | (Unaudited)            |           
|                                                                         |  | (Dollars in thousands) |           
|Balance at December 31, 2003                                             |  |                        | 56,760,313 |   |        | $          | 859 |             |       | $ | 1,043,856     |  |  | $        | (26,454 | ) |               | $ | 518,408 |          |  |   |               |   |  | $ | (519,238 | ) |  | $ | 1,017,431 |  
|Common stock issued                                                      |  |                        | 3,200,000  |   |        |            | 32  |             |       |   | 96,218        |  |  |          |        |   |               |   |        |          |  | $ |              |   |  |   |         |   |  |   | 96,250    |  
|Common stock options exercised                                           |  |                        | 1,049,051  |   |        |            | 10  |             |       |   | 23,290        |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 23,300    |  
|Net directors and officers notes receivable payments                   |  |                        |           |   |        |            |    |             |       |   | 33            |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 33        |  
|Deferred compensation, restricted stock                                  |  |                        | 107,115    |   |        |            | 2   |             |       |   | 1,225         |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 1,227     |  
|Net unrealized loss on mortgage-backed securities available for
    sale |  |                        |           |   |        |            |    |             |       |   |              |  |  |          | (15,515 | ) |               |   |        |          |  |   | (15,515       | ) |  |   |         |   |  |   | (15,515   | )
|Net unrealized gain on derivatives used in cash flow hedges              |  |                        |           |   |        |            |    |             |       |   |              |  |  |          | 26,889  |   |               |   |        |          |  |   | 26,889        |   |  |   |         |   |  |   | 26,889    |  
|Purchases of common stock                                                |  |                        | (17,452    | ) |        |            |    |             |       |   |              |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   | (533     | ) |  |   | (533      | )
|Cash dividends                                                           |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   | (31,663 | )        |  |   |              |   |  |   |         |   |  |   | (31,663   | )
|Net earnings                                                             |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   | 64,885  |          |  |   | 64,885        |   |  |   |         |   |  |   | 64,885    |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Total comprehensive income                                               |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   |        |          |  | $ | 76,259        |   |  |   |         |   |  |   |          |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Balance at June 30, 2004                                                 |  |                        | 61,099,027 |   |        | $          | 903 |             |       | $ | 1,164,622     |  |  | $        | (15,080 | ) |               | $ | 551,630 |          |  |   |               |   |  | $ | (519,771 | ) |  | $ | 1,182,304 |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Balance at December 31, 2004                                             |  |                        | 61,995,480 |   |        | $          | 912 |             |       | $ | 1,186,682     |  |  | $        | (20,304 | ) |               | $ | 616,516 |          |  |   |               |   |  | $ | (519,835 | ) |  | $ | 1,263,971 |  
|Common stock options exercised                                           |  |                        | 1,265,135  |   |        |            | 12  |             |       |   | 31,317        |  |  |          |        |   |               |   |        |          |  | $ |              |   |  |   |         |   |  |   | 31,329    |  
|Net directors and officers notes receivable payments                   |  |                        |           |   |        |            |    |             |       |   | 16            |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 16        |  
|Deferred compensation, restricted stock                                  |  |                        | 267,204    |   |        |            | 3   |             |       |   | 2,543         |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 2,546     |  
|Net unrealized gain on mortgage-backed securities available for
    sale |  |                        |           |   |        |            |    |             |       |   |              |  |  |          | 13      |   |               |   |        |          |  |   | 13            |   |  |   |         |   |  |   | 13        |  
|Net unrealized gain on derivatives used in cash flow hedges              |  |                        |           |   |        |            |    |             |       |   |              |  |  |          | 5,258   |   |               |   |        |          |  |   | 5,258         |   |  |   |         |   |  |   | 5,258     |  
|Purchases of common stock                                                |  |                        | (15,860    | ) |        |            |    |             |       |   |              |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   | (558     | ) |  |   | (558      | )
|Cash dividends                                                           |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   | (46,239 | )        |  |   |              |   |  |   |         |   |  |   | (46,239   | )
|Net earnings                                                             |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   | 148,622 |          |  |   | 148,622       |   |  |   |         |   |  |   | 148,622   |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Total comprehensive income                                               |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   |        |          |  | $ | 153,893       |   |  |   |         |   |  |   |          |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Balance at June 30, 2005                                                 |  |                        | 63,511,959 |   |        | $          | 927 |             |       | $ | 1,220,558     |  |  | $        | (15,033 | ) |               | $ | 718,899 |          |  |   |               |   |  | $ | (520,393 | ) |  | $ | 1,404,958 |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  



67



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##### Table of Contents



INDYMAC BANCORP, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                            |                                                                                                              |                                                                 |                                           |            |          |            |         |            |          |            |  
|--------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------- | ----------------------------------------- | ---------- | -------- | ---------- | ------- | ---------- | -------- | ---------- | -
|                                                                            |                                                                                                              | For the Six Months Ended                                        |                                          
|                                                                            |                                                                                                              | June 30,                                                        |                                          
|                                                                            |                                                                                                              |                                                                 |                                          
|                                                                            |                                                                                                              | 2005                                                            |                                           |            | 2004     |           
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            |                                                                                                              | (Unaudited)                                                     |                                          
|                                                                            |                                                                                                              | (Dollars in thousands)                                          |                                          
|Cash flows from operating activities:                                       |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Net earnings                                                                                                 |                                                                 | $                                         | 148,622    |          |            | $       | 64,885     |         
|                                                                            | Adjustments to reconcile net earnings to net cash used in
    operating activities:                          |                                                                 |                                           |            |          |            |         |            |         
|                                                                            |                                                                                                              | Total amortization and depreciation                             |                                           |            | 126,421  |            |         |            | 104,391  |           
|                                                                            |                                                                                                              | Provision for valuation adjustment of mortgage servicing rights |                                           |            | 76,233   |            |         |            | 4,839    |           
|                                                                            |                                                                                                              | Gain on sale of loans                                           |                                           |            | (303,699 | )          |         |            | (149,752 | )         
|                                                                            |                                                                                                              | (Gain) loss on mortgage-backed securities, net                  |                                           |            | (11,205  | )          |         |            | 8,401    |           
|                                                                            |                                                                                                              | Provision for loan losses                                       |                                           |            | 4,897    |            |         |            | 4,700    |           
|                                                                            |                                                                                                              | Net increase in deferred tax liability                          |                                           |            | 55,648   |            |         |            | 16,470   |           
|                                                                            |                                                                                                              | Net decrease in other assets and liabilities                    |                                           |            | 7,518    |            |         |            | 157,338  |           
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            | Net cash provided by operating activities before activity for
    trading securities and loans held for sale |                                                                 |                                           | 104,435    |          |            |         | 211,272    |         
|                                                                            | Net sales (purchases) of trading securities                                                                  |                                                                 |                                           | 57,051     |          |            |         | (31,501    | )       
|                                                                            | Net purchases of loans held for sale                                                                         |                                                                 |                                           | (2,933,362 | )        |            |         | (3,053,980 | )       
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            |                                                                                                              |                                                                 | Net cash used in operating activities     |            |          | (2,771,876 | )       |            |          | (2,874,209 | )
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Cash flows from investing activities:                                       |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Net sales of and payments from loans held for investment                                                     |                                                                 |                                           | 487,092    |          |            |         | 1,089,165  |         
|                                                                            | Net sales (purchases) of mortgage-backed securities
    available for sale                                   |                                                                 |                                           | 150,560    |          |            |         | (111,018   | )       
|                                                                            | Net increase in investment in Federal Home Loan Bank stock,
    at cost                                      |                                                                 |                                           | (93,853    | )        |            |         | (32,497    | )       
|                                                                            | Net purchases of property, plant and equipment                                                               |                                                                 |                                           | (38,552    | )        |            |         | (17,790    | )       
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            |                                                                                                              |                                                                 | Net cash provided by investing activities |            |          | 505,247    |         |            |          | 927,860    |  
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Cash flows from financing activities:                                       |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Net increase in deposits                                                                                     |                                                                 |                                           | 840,042    |          |            |         | 407,782    |         
|                                                                            | Net increase in advances from Federal Home Loan Bank                                                         |                                                                 |                                           | 1,436,000  |          |            |         | 624,001    |         
|                                                                            | Net increase in borrowings                                                                                   |                                                                 |                                           | 3,856      |          |            |         | 1,041,457  |         
|                                                                            | Net proceeds from issuance of common stock                                                                   |                                                                 |                                           |           |          |            |         | 96,250     |         
|                                                                            | Net proceeds from stock options and notes receivable                                                         |                                                                 |                                           | 31,345     |          |            |         | 23,333     |         
|                                                                            | Cash dividends paid                                                                                          |                                                                 |                                           | (46,239    | )        |            |         | (31,663    | )       
|                                                                            | Purchases of common stock                                                                                    |                                                                 |                                           | (558       | )        |            |         | (533       | )       
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            |                                                                                                              |                                                                 | Net cash provided by financing activities |            |          | 2,264,446  |         |            |          | 2,160,627  |  
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Net (decrease) increase in cash and cash equivalents                        |                                                                                                              |                                                                 | (2,183                                    | )          |          |            | 214,278 |           
|Cash and cash equivalents at beginning of period                            |                                                                                                              |                                                                 | 356,157                                   |            |          |            | 115,485 |           
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Cash and cash equivalents at end of period                                  |                                                                                                              | $                                                               | 353,974                                   |            |          | $          | 329,763 |           
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Supplemental cash flow information:                                         |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Cash paid for interest                                                                                       |                                                                 | $                                         | 247,516    |          |            | $       | 147,122    |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            | Cash paid for income taxes                                                                                   |                                                                 | $                                         | 35,596     |          |            | $       | 31,330     |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Supplemental disclosure of non-cash investing and financing
    activities: |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Net transfer of loans held for sale to loans held for investment                                             |                                                                 | $                                         | 1,188,321  |          |            | $       | 1,089,351  |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            | Recharacterization of loans to mortgage-backed securities
    available for sale                             |                                                                 | $                                         |           |          |            | $       | 500,012    |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            | Net transfer of mortgage servicing rights to trading securities                                              |                                                                 | $                                         | 8,491      |          |            | $       | 14,293     |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           



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INDYMAC BANCORP, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


June 30, 2005


(Unaudited)




|         |                      
|-------- | ---------------------
|NOTE 1  | BASIS OF PRESENTATION









|         |                              
|-------- | -----------------------------
|NOTE 2  | NEW ACCOUNTING PRONOUNCEMENTS

Share-Based Payment Accounting for Stock-Based
Compensation Accounting for Stock Issued to Employees,


Share-Based Payment


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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Implicit Variable Interests under FASB
Interpretation No. 46 (FIN 46R  Revised
December 2003), Consolidation of Variable Interest Entities
(VIE)


Accounting
for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities


Accounting for Certain Loans or Debt Securities
Acquired in a Transfer


The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain
Investments The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments.


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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                            
|-------- | -------------------------------------------
|NOTE 3  | MORTGAGE-BACKED SECURITIES AND AGENCY NOTES



|                                                                     |                                                |                                                                            |   |           |              |  |   |           |           | 
|-------------------------------------------------------------------- | ---------------------------------------------- | -------------------------------------------------------------------------- | - | --------- | ------------ |  | - | --------- | --------- | 
|                                                                     |                                                | June 30,                                                                   |   |           | December 31, | 
|                                                                     |                                                | 2005                                                                       |   |           | 2004         | 
|                                                                     |                                                |                                                                            |   |           |              | 
|                                                                     |                                                | (Dollars in thousands)                                                     |  
|Mortgage-backed securities  Trading                                 |                                                |                                                                            |   |           |              |  |   |          
|                                                                     | AAA-rated and agency interest-only securities  |                                                                            | $ | 63,052    |              |  | $ | 90,658    |          
|                                                                     | AAA-rated principal-only securities            |                                                                            |   |          |              |  |   | 18,598    |          
|                                                                     | Prepayment penalty securities                  |                                                                            |   | 62,283    |              |  |   | 33,451    |          
|                                                                     | Other investment grade securities              |                                                                            |   | 9,320     |              |  |   | 9,219     |          
|                                                                     | Other non-investment grade securities          |                                                                            |   |          |              |  |   | 4,198     |          
|                                                                     | Non-investment grade residual securities       |                                                                            |   | 97,657    |              |  |   | 78,912    |          
|                                                                     |                                                |                                                                            |   |           |              | 
|                                                                     |                                                | Total mortgage-backed securities  Trading                                 |   | $         | 232,312      |  |   | $         | 235,036   | 
|                                                                     |                                                |                                                                            |   |           |              | 
|Mortgage-backed securities and agency notes 
    Available for sale |                                                |                                                                            |   |           |              |  |   |          
|                                                                     | AAA-rated non-agency securities                |                                                                            | $ | 3,186,980 |              |  | $ | 3,166,600 |          
|                                                                     | AAA-rated agency securities                    |                                                                            |   | 11,827    |              |  |   | 14,903    |          
|                                                                     | Other investment grade securities              |                                                                            |   | 85,026    |              |  |   | 137,603   |          
|                                                                     | Other non-investment grade securities          |                                                                            |   | 57,950    |              |  |   | 78,854    |          
|                                                                     | Non-investment grade HELOC residual securities |                                                                            |   | 48,137    |              |  |   | 56,475    |          
|                                                                     |                                                |                                                                            |   |           |              | 
|                                                                     |                                                | Total mortgage-backed securities and agency notes 
    Available for sale |   | $         | 3,389,920    |  |   | $         | 3,454,435 | 
|                                                                     |                                                |                                                                            |   |           |              | 



|                                 |                                       |                                       |   |        |                      |   |            |         |         |  |            |            |         |        |   |         |            |  |   |         |         |   |   |           |           | 
|-------------------------------- | ------------------------------------- | ------------------------------------- | - | ------ | -------------------- | - | ---------- | ------- | ------- |  | ---------- | ---------- | ------- | ------ | - | ------- | ---------- |  | - | ------- | ------- | - | - | --------- | --------- | 
|                                 |                                       | As of June 30, 2005                   |  
|                                 |                                       |                                       |  
|                                 |                                       | Less Than 12 Months                   |   |        | 12 Months or Greater |   |            | Total   |        
|                                 |                                       |                                       |   |        |                      |   |            |         |        
|                                 |                                       | Unrealized                            |   |        |                      |   | Unrealized |         |         |  |            | Unrealized |         |        |  
|                                 |                                       | Losses                                |   |        | Fair Value           |   |            | Losses  |         |  | Fair Value |            |         | Losses |   |         | Fair Value | 
|                                 |                                       |                                       |   |        |                      |   |            |         |         |  |            |            |         |        |   |         |            | 
|                                 |                                       | (Dollars in thousands)                |  
|Securities  Available for Sale: |                                       |                                       |   |        |                      |   |            |         |         |  |            |            |         |        |   |         |            |  |   |         |         |   |   |          
|                                 | AAA-rated agency securities           |                                       | $ |       |                      |   | $          |        |         |  | $          | (201       | )       |        | $ | 3,182   |            |  | $ | (201    | )       |   | $ | 3,182     |          
|                                 | AAA-rated non-agency securities       |                                       |   | (5,665 | )                    |   |            | 751,224 |         |  |            | (14,808    | )       |        |   | 852,454 |            |  |   | (20,473 | )       |   |   | 1,603,678 |          
|                                 | Other non-investment grade securities |                                       |   | (2     | )                    |   |            | 664     |         |  |            |           |         |        |   |        |            |  |   | (2      | )       |   |   | 664       |          
|                                 |                                       |                                       |   |        |                      |   |            |         |         |  |            |            |         |        |   |         |            | 
|                                 |                                       | Total Securities  Available for Sale |   | $      | (5,667               | ) |            | $       | 751,888 |  |            | $          | (15,009 | )      |   | $       | 855,636    |  |   | $       | (20,676 | ) |   | $         | 1,607,524 | 
|                                 |                                       |                                       |   |        |                      |   |            |         |         |  |            |            |         |        |   |         |            | 





|         |                  
|-------- | -----------------
|NOTE 4  | SEGMENT REPORTING



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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                 |                               |                        |           |         |                 |   |           |            |   |   |        |        |   |       |            |        |         |   |         |         |   |   |            |         | 
|-------------------------------- | ----------------------------- | ---------------------- | --------- | ------- | --------------- | - | --------- | ---------- | - | - | ------ | ------ | - | ----- | ---------- | ------ | ------- | - | ------- | ------- | - | - | ---------- | ------- | 
|                                 |                               | Mortgage Banking       |           |         |                 |   |           |            |  
|                                 |                               |                        |           |         |                 |   |           |            |  
|                                 |                               |                        |           | MSRs    |                 |   | Loan      |            |   |   |        |        |   |      
|                                 |                               | Production             |           |         | and             |   |           | Servicing  |   |   |        |        |   |       | Total      |       
|                                 |                               | Divisions              |           |         | Retained Assets |   |           | Operations |   |   | Thrift |        |   | Other |            |        | Company |  
|                                 |                               |                        |           |         |                 |   |           |            |   |   |        |        |   |       |            |        |         |  
|                                 |                               | (Dollars in thousands) |          
|Three months ended June 30, 2005 |                               |                        |           |         |                 |   |           |            |   |   |        |        |   |       |            |        |         |   |         |         |   |   |            |        
|                                 | Net interest income (expense) |                        | $         | 24,900  |                 |   | $         | 12,219     |   |   | $      | (33    | ) |       | $          | 54,775 |         |   | $       | 4,544   |   |   | $          | 96,405  | 
|                                 | Net revenues (expense)        |                        |           | 237,345 |                 |   |           | 24,410     |   |   |        | 487    |   |       |            | 79,103 |         |   |         | (52,674 | ) |   |            | 288,671 | 
|                                 | Net earnings (loss)           |                        |           | 87,901  |                 |   |           | 10,237     |   |   |        | (2,626 | ) |       |            | 35,479 |         |   |         | (47,845 | ) |   |            | 83,146  | 
|Allocated capital                |                               |                        | 375,397   |         |                 |   | 235,766   |            |   |   | 5,183  |        |   |       | 601,232    |        |         |   | 103,109 |         |   |   | 1,320,687  |        
|Assets as of June 30, 2005       |                               | $                      | 5,412,285 |         |                 | $ | 1,522,086 |            |   | $ | 43,235 |        |   | $     | 11,512,592 |        |         | $ | 925,689 |         |   | $ | 19,415,887 |        
|Return on equity                 |                               |                        | 94        | %       |                 |   | 17        | %          |   |   | N/A    |        |   |       | 24         | %      |         |   | N/A     |         |   |   | 25         | %      
|Three months ended June 30, 2004 |                               |                        |           |         |                 |   |           |            |   |   |        |        |   |       |            |        |         |   |         |         |   |   |            |        
|                                 | Net interest income (expense) |                        | $         | 38,176  |                 |   | $         | 16,912     |   |   | $      |       |   |       | $          | 54,409 |         |   | $       | (2,519  | ) |   | $          | 106,978 | 
|                                 | Net revenues (expense)        |                        |           | 148,203 |                 |   |           | (5,348     | ) |   |        | 589    |   |       |            | 84,112 |         |   |         | (81,223 | ) |   |            | 146,333 | 
|                                 | Net earnings (loss)           |                        |           | 48,721  |                 |   |           | (6,141     | ) |   |        | (3,318 | ) |       |            | 41,920 |         |   |         | (58,227 | ) |   |            | 22,955  | 
|Allocated capital                |                               |                        | 271,042   |         |                 |   | 205,192   |            |   |   |       |        |   |       | 502,698    |        |         |   | 148,356 |         |   |   | 1,127,288  |        
|Assets as of June 30, 2004       |                               | $                      | 3,828,962 |         |                 | $ | 1,149,819 |            |   | $ | 44,170 |        |   | $     | 9,792,010  |        |         | $ | 723,555 |         |   | $ | 15,538,516 |        
|Return on equity                 |                               |                        | 72        | %       |                 |   | (12       | )%         |   |   | N/A    |        |   |       | 34         | %      |         |   | N/A     |         |   |   | 8          | %      

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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                               |                               |                        |           |         |                 |   |           |            |   |   |        |        |   |       |            |         |         |   |         |          |   |   |            |         | 
|------------------------------ | ----------------------------- | ---------------------- | --------- | ------- | --------------- | - | --------- | ---------- | - | - | ------ | ------ | - | ----- | ---------- | ------- | ------- | - | ------- | -------- | - | - | ---------- | ------- | 
|                               |                               | Mortgage Banking       |           |         |                 |   |           |            |  
|                               |                               |                        |           |         |                 |   |           |            |  
|                               |                               |                        |           | MSRs    |                 |   | Loan      |            |   |   |        |        |   |      
|                               |                               | Production             |           |         | and             |   |           | Servicing  |   |   |        |        |   |       | Total      |        
|                               |                               | Divisions              |           |         | Retained Assets |   |           | Operations |   |   | Thrift |        |   | Other |            |         | Company |  
|                               |                               |                        |           |         |                 |   |           |            |   |   |        |        |   |       |            |         |         |  
|                               |                               | (Dollars in thousands) |          
|Six months ended June 30, 2005 |                               |                        |           |         |                 |   |           |            |   |   |        |        |   |       |            |         |         |   |         |          |   |   |            |        
|                               | Net interest income (expense) |                        | $         | 51,537  |                 |   | $         | 26,893     |   |   | $      | (335   | ) |       | $          | 114,174 |         |   | $       | 8,556    |   |   | $          | 200,825 | 
|                               | Net revenues (expense)        |                        |           | 439,882 |                 |   |           | 44,431     |   |   |        | 552    |   |       |            | 154,339 |         |   |         | (97,184  | ) |   |            | 542,020 | 
|                               | Net earnings (loss)           |                        |           | 158,751 |                 |   |           | 18,172     |   |   |        | (5,404 | ) |       |            | 70,415  |         |   |         | (93,312  | ) |   |            | 148,622 | 
|Allocated capital              |                               |                        | 354,687   |         |                 |   | 243,961   |            |   |   | 5,373  |        |   |       | 582,719    |         |         |   | 100,376 |          |   |   | 1,287,116  |        
|Assets as of June 30, 2005     |                               | $                      | 5,412,285 |         |                 | $ | 1,522,086 |            |   | $ | 43,235 |        |   | $     | 11,512,592 |         |         | $ | 925,689 |          |   | $ | 19,415,887 |        
|Return on equity               |                               |                        | 90        | %       |                 |   | 15        | %          |   |   | N/A    |        |   |       | 24         | %       |         |   | N/A     |          |   |   | 23         | %      
|Six months ended June 30, 2004 |                               |                        |           |         |                 |   |           |            |   |   |        |        |   |       |            |         |         |   |         |          |   |   |            |        
|                               | Net interest income (expense) |                        | $         | 68,404  |                 |   | $         | 31,826     |   |   | $      |       |   |       | $          | 107,793 |         |   | $       | (7,112   | ) |   | $          | 200,911 | 
|                               | Net revenues (expense)        |                        |           | 265,546 |                 |   |           | 7,092      |   |   |        | 1,073  |   |       |            | 145,871 |         |   |         | (100,155 | ) |   |            | 319,427 | 
|                               | Net earnings (loss)           |                        |           | 82,191  |                 |   |           | (1,883     | ) |   |        | (5,546 | ) |       |            | 70,600  |         |   |         | (80,477  | ) |   |            | 64,885  | 
|Allocated capital              |                               |                        | 222,144   |         |                 |   | 203,033   |            |   |   |       |        |   |       | 492,943    |         |         |   | 167,185 |          |   |   | 1,085,305  |        
|Assets as of June 30, 2004     |                               | $                      | 3,828,962 |         |                 | $ | 1,149,819 |            |   | $ | 44,170 |        |   | $     | 9,792,010  |         |         | $ | 723,555 |          |   | $ | 15,538,516 |        
|Return on equity               |                               |                        | 74        | %       |                 |   | (2        | )%         |   |   | N/A    |        |   |       | 29         | %       |         |   | N/A     |          |   |   | 12         | %      



|         |                         
|-------- | ------------------------
|NOTE 5  | STOCK-BASED COMPENSATION





Accounting for Stock Issued to Employees, Accounting for Stock-Based
Compensation  Transition and Disclosure.


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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                           |             |                                               |   |        |                |   |   |        |        |   |      |         |        |   |   |        |        |  
|-------------------------- | ----------- | --------------------------------------------- | - | ------ | -------------- | - | - | ------ | ------ | - | ---- | ------- | ------ | - | - | ------ | ------ | -
|                           |             | Three Months                                  |   |        | Six Months     |  
|                           |             | Ended June 30,                                |   |        | Ended June 30, |  
|                           |             |                                               |   |        |                |  
|                           |             | 2005                                          |   |        | 2004           |   |   | 2005   |        |   | 2004 |        
|                           |             |                                               |   |        |                |   |   |        |        |   |      |        
|                           |             | (Dollars in thousands, except per share data) |  
|Net Earnings               |             |                                               |   |        |                |   |   |        |        |   |      |         |        |   |   |       
|                           | As reported |                                               | $ | 83,146 |                |   | $ | 22,955 |        |   | $    | 148,622 |        |   | $ | 64,885 |       
|                           |             | Stock-based compensation expense              |   |        | (2,663         | ) |   |        | (2,859 | ) |      |         | (5,388 | ) |   |        | (5,687 | )
|                           |             | Tax effect                                    |   |        | 814            |   |   |        | 1,129  |   |      |         | 1,594  |   |   |        | 2,246  |  
|                           |             |                                               |   |        |                |   |   |        |        |   |      |        
|                           | Pro forma   |                                               | $ | 81,297 |                |   | $ | 21,225 |        |   | $    | 144,828 |        |   | $ | 61,444 |       
|                           |             |                                               |   |        |                |   |   |        |        |   |      |        
|Basic Earnings Per Share   |             |                                               |   |        |                |   |   |        |        |   |      |         |        |   |   |       
|                           | As reported |                                               | $ | 1.33   |                |   | $ | 0.39   |        |   | $    | 2.40    |        |   | $ | 1.13   |       
|                           | Pro forma   |                                               | $ | 1.30   |                |   | $ | 0.37   |        |   | $    | 2.28    |        |   | $ | 1.07   |       
|Diluted Earnings Per Share |             |                                               |   |        |                |   |   |        |        |   |      |         |        |   |   |       
|                           | As reported |                                               | $ | 1.26   |                |   | $ | 0.38   |        |   | $    | 2.34    |        |   | $ | 1.08   |       
|                           | Pro forma   |                                               | $ | 1.23   |                |   | $ | 0.35   |        |   | $    | 2.22    |        |   | $ | 1.02   |       





|         |                                               
|-------- | ----------------------------------------------
|NOTE 6  | DEFINED BENEFIT PENSION PLAN NET PERIODIC COST



|                                   |  |                        |       |   |                |   |       |      |  |   |       |   |  |   |       |  
|---------------------------------- |  | ---------------------- | ----- | - | -------------- | - | ----- | ---- |  | - | ----- | - |  | - | ----- | -
|                                   |  | Three Months           |       |   | Six Months     |  
|                                   |  | Ended June 30,         |       |   | Ended June 30, |  
|                                   |  |                        |       |   |                |  
|                                   |  | 2005                   |       |   | 2004           |   |       | 2005 |  |   | 2004  |  
|                                   |  |                        |       |   |                |   |       |      |  |   |       |  
|                                   |  | (Dollars in thousands) |      
|Service cost                       |  | $                      | 1,812 |   |                | $ | 1,209 |      |  | $ | 3,624 |   |  | $ | 2,418 |  
|Interest cost                      |  |                        | 507   |   |                |   | 323   |      |  |   | 1,014 |   |  |   | 646   |  
|Expected return on assets          |  |                        | (453  | ) |                |   | (294  | )    |  |   | (906  | ) |  |   | (588  | )
|Recognized actuarial loss          |  |                        | 139   |   |                |   | 73    |      |  |   | 278   |   |  |   | 146   |  
|Amortization of prior service cost |  |                        | 14    |   |                |   | 14    |      |  |   | 28    |   |  |   | 28    |  
|                                   |  |                        |       |   |                |   |       |      |  |   |       |  
|Net periodic benefit costs         |  | $                      | 2,019 |   |                | $ | 1,325 |      |  | $ | 4,038 |   |  | $ | 2,650 |  
|                                   |  |                        |       |   |                |   |       |      |  |   |       |  

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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |  |                |       |  |      |  |       | 
|----------------------------- |  | -------------- | ----- |  | ---- |  | ----- | 
|                              |  | Three Months   |      
|                              |  | Ended June 30, |      
|                              |  |                |      
|                              |  | 2005           |       |  | 2004 | 
|                              |  |                |       |  |      | 
|Assumed discount rate         |  |                | 6.00% |  |      |  | 6.00% | 
|Rate of compensation increase |  |                | 4.00% |  |      |  | 4.00% | 
|Expected return on assets     |  |                | 7.50% |  |      |  | 7.50% | 





|         |              
|-------- | -------------
|NOTE 7  | LEGAL MATTERS

Accounting for Contingencies








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|        |                        
|------- | -----------------------
|ITEM 4. | CONTROLS AND PROCEDURES








PART II. OTHER INFORMATION







|        |                  
|------- | -----------------
|ITEM 1. | LEGAL PROCEEDINGS

Accounting for Contingencies













|        |                                                                
|------- | ---------------------------------------------------------------
|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
    PROCEEDS



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|        |                                                        
|------- | -------------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
    HOLDERS



|                            |  |            |            |  |                 |  |           | 
|--------------------------- |  | ---------- | ---------- |  | --------------- |  | --------- | 
|                            |  | Shares for |            |  | Shares Withheld | 
|                            |  |            |            |  |                 | 
|Michael W. Perry            |  |            | 56,379,096 |  |                 |  | 2,125,165 | 
|Louis E. Caldera            |  |            | 57,513,063 |  |                 |  | 991,198   | 
|Lyle E. Gramley             |  |            | 57,454,117 |  |                 |  | 1,050,144 | 
|Hugh M. Grant               |  |            | 57,332,878 |  |                 |  | 1,171,383 | 
|Patrick C. Haden            |  |            | 57,516,613 |  |                 |  | 987,648   | 
|Terrance G. Hodel           |  |            | 57,520,824 |  |                 |  | 983,437   | 
|Robert L. Hunt II           |  |            | 57,315,877 |  |                 |  | 1,188,384 | 
|Senator John Seymour (ret.) |  |            | 57,492,708 |  |                 |  | 1,011,553 | 
|James R. Ukropina           |  |            | 57,330,770 |  |                 |  | 1,173,491 | 



|        |  |            |            | 
|------- |  | ---------- | ---------- | 
|        |  | Number of  |           
|        |  | Votes Cast |           
|        |  |            |           
|For     |  |            | 57,316,201 | 
|Against |  |            | 1,108,063  | 
|Abstain |  |            | 79,997     | 






|        |         
|------- | --------
|ITEM 6. | EXHIBITS

| |    |    |  |                                                                                                                                                          
| | -- | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .1 |  | IndyMac Bancorp, Inc. Board Compensation Policy & Stock
    Ownership Requirements, as Amended.                                                          
|
| | 10 | .2 |  | Employment Agreement Dated October 15, 2003 between IndyMac
    Resources, Inc. and Frank Sillman                                                        
|
| | 10 | .3 |  | Employment Agreement Entered Into July 26, 2005 between
    IndyMac Bank, F.S.B. and Terrence O. Hughes                                                  
|
| | 31 | .1 |  | Chief Executive Officers Certification pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                   
|
| | 31 | .2 |  | Chief Financial Officers Certification pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.                                                   
|
| | 32 | .1 |  | Chief Executive Officers Certification pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.
|
| | 32 | .2 |  | Chief Financial Officers Certification pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURE






| |                      
| | ---------------------
| | INDYMAC BANCORP, INC.
| | (Registrant)         



| |     |                     
| | --- | --------------------
| | By: | /s/ Michael W. Perry

| |                                   
| | ----------------------------------
| |                                   
| | Michael W. Perry                  
| | Chairman of the Board of Directors
| | and Chief Executive Officer       



| |     |               
| | --- | --------------
| | By: | /s/ Scott Keys

| |                            
| | ---------------------------
| |                            
| | Scott Keys                 
| | Executive Vice President   
| | and Chief Financial Officer

78