##### 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
    September 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


o o














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FORM 10-Q QUARTERLY REPORT


For the Period Ended September 30, 2005


TABLE OF CONTENTS


|                                                                                                      |                                                                              |      |    |    | 
|----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ---- | -- | -- | 
|                                                                                                      |                                                                              | Page |   
|                                                                                                      |                                                                              |      |   
|PART I. FINANCIAL INFORMATION                                                                        
|Forward-Looking Statements                                                                            |                                                                              |      | 2  |   
|Item 2. Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations |                                                                              |      | 2  |   
|Highlights for the Quarter                                                                            |                                                                              |      | 2  |   
|Business Segment Results                                                                              |                                                                              |      | 6  |   
|Product Profitability Analysis                                                                        |                                                                              |      | 13 |   
|Loan Production                                                                                       |                                                                              |      | 20 |   
|Loan Sales                                                                                            |                                                                              |      | 24 |   
|Mortgage Servicing and Other Retained
    Interests                                                   |                                                                              |      | 26 |   
|Mortgage-Backed Securities and Loans Held
    for Investment                                          |                                                                              |      | 30 |   
|Net Interest Margin                                                                                   |                                                                              |      | 37 |   
|Interest Rate Sensitivity                                                                             |                                                                              |      | 41 |   
|Credit Risk and Reserves                                                                              |                                                                              |      | 42 |   
|Operating Expenses                                                                                    |                                                                              |      | 46 |   
|Share Repurchase Activities                                                                           |                                                                              |      | 47 |   
|Future Outlook                                                                                        |                                                                              |      | 47 |   
|Liquidity and Capital Resources                                                                       |                                                                              |      | 48 |   
|Off-Balance Sheet Arrangements                                                                        |                                                                              |      | 52 |   
|Aggregate Contractual Obligations                                                                     |                                                                              |      | 53 |   
|Key Operating Risks                                                                                   |                                                                              |      | 54 |   
|Critical Accounting Policies and
    Judgments                                                        |                                                                              |      | 56 |   
|Item 3. Quantitative and
    Qualitative Disclosures About Market Risk                                |                                                                              |      | 56 |   
|Item 1. Financial Statements
    (Unaudited)                                                          |                                                                              |      | 57 |   
|                                                                                                      | Consolidated Balance Sheets                                                  |      |    | 57 | 
|                                                                                                      | Consolidated Statements of Earnings                                          |      |    | 59 | 
|                                                                                                      | Consolidated Statements of
    Shareholders Equity and Comprehensive Income |      |    | 60 | 
|                                                                                                      | Consolidated Statements of Cash Flows                                        |      |    | 61 | 
|                                                                                                      | Notes to Consolidated Financial
    Statements                               |      |    | 62 | 
|Item 4. Controls and
    Procedures                                                                   |                                                                              |      | 69 |   
|                                                                                                     
|PART II. OTHER INFORMATION                                                                           
|Item 1. Legal Proceedings                                                                             |                                                                              |      | 69 |   
|Item 2. Unregistered Sales of
    Equity Securities and Use of Proceeds                               |                                                                              |      | 69 |   
|Item 5. Other Information                                                                             |                                                                              |      | 69 |   
|Item 6. Exhibits                                                                                      |                                                                              |      | 69 |   
|Exhibit 10.1                                                                                         
|Exhibit 31.1                                                                                         
|Exhibit 31.2                                                                                         
|Exhibit 32.1                                                                                         
|Exhibit 32.2                                                                                         



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##### Table of Contents






FORWARD-LOOKING STATEMENTS











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




HIGHLIGHTS FOR THE QUARTER




|                     |                                                     |                                              |   |       |                   |  |   |          |        |  |               |       |        |               |   |       |        |  |   |       |        | 
|-------------------- | --------------------------------------------------- | -------------------------------------------- | - | ----- | ----------------- |  | - | -------- | ------ |  | ------------- | ----- | ------ | ------------- | - | ----- | ------ |  | - | ----- | ------ | 
|                     |                                                     | Three Months Ended                           |   |       | Nine Months Ended | 
|                     |                                                     |                                              |   |       |                   | 
|                     |                                                     | September 30,                                |   |       | September 30,     |  |   | June 30, |        |  | September 30, |       |        | September 30, |  
|                     |                                                     | 2005                                         |   |       | 2004(1)(2)        |  |   | 2005     |        |  | 2005          |       |        | 2004(1)(2)    |  
|                     |                                                     |                                              |   |       |                   |  |   |          |        |  |               |       |        |               |  
|                     |                                                     | (Dollars in millions, except per share data) |  
|Income Statement     |                                                     |                                              |   |       |                   |  |   |          |        |  |               |       |        |               |   |       |        |  |   |      
|                     | Net interest income after provision for loan losses |                                              | $ | 108   |                   |  | $ | 99       |        |  | $             | 94    |        |               | $ | 304   |        |  | $ | 295   |       
|                     | Gain on sale of loans                               |                                              |   | 151   |                   |  |   | 109      |        |  |               | 159   |        |               |   | 455   |        |  |   | 311   |       
|                     | Other income                                        |                                              |   | 24    |                   |  |   | 7        |        |  |               | 35    |        |               |   | 66    |        |  |   | (19   | )     
|                     | Net revenues                                        |                                              |   | 283   |                   |  |   | 215      |        |  |               | 289   |        |               |   | 825   |        |  |   | 587   |       
|                     | Operating expenses                                  |                                              |   | 151   |                   |  |   | 122      |        |  |               | 151   |        |               |   | 446   |        |  |   | 334   |       
|                     | Net earnings                                        |                                              |   | 79    |                   |  |   | 56       |        |  |               | 83    |        |               |   | 228   |        |  |   | 153   |       
|                     | Basic earnings per share(3)                         |                                              |   | 1.25  |                   |  |   | 0.92     |        |  |               | 1.33  |        |               |   | 3.65  |        |  |   | 2.60  |       
|                     | Diluted earnings per share(4)                       |                                              | $ | 1.18  |                   |  | $ | 0.88     |        |  | $             | 1.26  |        |               | $ | 3.46  |        |  | $ | 2.49  |       
|Other Per Share Data |                                                     |                                              |   |       |                   |  |   |          |        |  |               |       |        |               |   |       |        |  |   |      
|                     | Dividends declared per share                        |                                              | $ | 0.40  |                   |  | $ | 0.32     |        |  | $             | 0.38  |        |               | $ | 1.14  |        |  | $ | 0.87  |       
|                     | Book value per share at end of quarter              |                                              |   | 23.06 |                   |  |   | 19.64    |        |  |               | 22.12 |        |               |   | 23.06 |        |  |   | 19.64 |       
|                     | Closing price per share                             |                                              | $ | 39.58 |                   |  | $ | 36.20    |        |  | $             | 40.73 |        |               | $ | 39.58 |        |  | $ | 36.20 |       
|                     | Average Common Shares (in thousands)                |                                              |   |       |                   |  |   |          |        |  |               |       |        |               |   |       |        |  |   |       |       
|                     |                                                     | Basic                                        |   |       | 63,268            |  |   |          | 61,254 |  |               |       | 62,304 |               |   |       | 62,460 |  |   |       | 58,800 | 
|                     |                                                     | Diluted                                      |   |       | 67,055            |  |   |          | 63,904 |  |               |       | 65,799 |               |   |       | 65,872 |  |   |       | 61,421 | 

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|                                       |                                                                                 |                                              |   |         |                   |  |   |          |  |  |               |         |  |               |   |         |  |  |   |         | 
|-------------------------------------- | ------------------------------------------------------------------------------- | -------------------------------------------- | - | ------- | ----------------- |  | - | -------- |  |  | ------------- | ------- |  | ------------- | - | ------- |  |  | - | ------- | 
|                                       |                                                                                 | Three Months Ended                           |   |         | Nine Months Ended | 
|                                       |                                                                                 |                                              |   |         |                   | 
|                                       |                                                                                 | September 30,                                |   |         | September 30,     |  |   | June 30, |  |  | September 30, |         |  | September 30, |  
|                                       |                                                                                 | 2005                                         |   |         | 2004(1)(2)        |  |   | 2005     |  |  | 2005          |         |  | 2004(1)(2)    |  
|                                       |                                                                                 |                                              |   |         |                   |  |   |          |  |  |               |         |  |               |  
|                                       |                                                                                 | (Dollars in millions, except per share data) |  
|Performance Ratios                     |                                                                                 |                                              |   |         |                   |  |   |          |  |  |               |         |  |               |   |         |  |  |   |        
|                                       | Return on average equity (annualized)                                           |                                              |   | 22.48%  |                   |  |   | 18.51%   |  |  |               | 25.25%  |  |               |   | 23.01%  |  |  |   | 18.11%  | 
|                                       | Return on average assets (annualized)                                           |                                              |   | 1.38%   |                   |  |   | 1.30%    |  |  |               | 1.67%   |  |               |   | 1.49%   |  |  |   | 1.25%   | 
|                                       | Dividend payout ratio(5)                                                        |                                              |   | 33.90%  |                   |  |   | 36.36%   |  |  |               | 30.16%  |  |               |   | 32.95%  |  |  |   | 34.94%  | 
|                                       | Net interest margin                                                             |                                              |   | 2.09%   |                   |  |   | 2.52%    |  |  |               | 2.08%   |  |               |   | 2.20%   |  |  |   | 2.69%   | 
|                                       | Net interest margin, thrift.                                                    |                                              |   | 1.96%   |                   |  |   | 2.03%    |  |  |               | 1.93%   |  |               |   | 2.03%   |  |  |   | 2.02%   | 
|                                       | Efficiency ratio(6)                                                             |                                              |   | 53%     |                   |  |   | 56%      |  |  |               | 52%     |  |               |   | 54%     |  |  |   | 56%     | 
|                                       | Operating expenses to loan production                                           |                                              |   | 0.86%   |                   |  |   | 1.15%    |  |  |               | 1.02%   |  |               |   | 1.01%   |  |  |   | 1.21%   | 
|Balance Sheet and Asset Quality Ratios |                                                                                 |                                              |   |         |                   |  |   |          |  |  |               |         |  |               |   |         |  |  |   |        
|                                       | Average interest-earning assets                                                 |                                              | $ | 21,122  |                   |  | $ | 15,862   |  |  | $             | 18,561  |  |               | $ | 18,989  |  |  | $ | 14,967  | 
|                                       | Average equity                                                                  |                                              | $ | 1,399   |                   |  | $ | 1,213    |  |  | $             | 1,321   |  |               | $ | 1,324   |  |  | $ | 1,128   | 
|                                       | Debt to equity ratio(7)                                                         |                                              |   | 12.3:1  |                   |  |   | 12.3:1   |  |  |               | 12.8:1  |  |               |   | 12.3:1  |  |  |   | 12.3:1  | 
|                                       | Core capital ratio(8)                                                           |                                              |   | 7.51%   |                   |  |   | 7.53%    |  |  |               | 7.22%   |  |               |   | 7.51%   |  |  |   | 7.53%   | 
|                                       | Risk-based capital ratio(8)                                                     |                                              |   | 11.58%  |                   |  |   | 11.83%   |  |  |               | 11.77%  |  |               |   | 11.58%  |  |  |   | 11.83%  | 
|                                       | Non-performing assets to total assets                                           |                                              |   | 0.36%   |                   |  |   | 0.76%    |  |  |               | 0.38%   |  |               |   | 0.36%   |  |  |   | 0.76%   | 
|                                       | Allowance for loan losses to total loans held for investment                    |                                              |   | 0.70%   |                   |  |   | 0.78%    |  |  |               | 0.72%   |  |               |   | 0.70%   |  |  |   | 0.78%   | 
|                                       | Allowance for loan losses and other credit reserves to
    non-performing loans |                                              |   | 103.70% |                   |  |   | 67.30%   |  |  |               | 101.43% |  |               |   | 103.70% |  |  |   | 67.30%  | 
|                                       | Allowance for loan losses to annualized net charge-offs                         |                                              |   | 672.64% |                   |  |   | 900.89%  |  |  |               | 739.05% |  |               |   | 720.10% |  |  |   | 658.70% | 
|                                       | Provision for loan losses to net charge-offs                                    |                                              |   | 170.93% |                   |  |   | 102.18%  |  |  |               | 131.60% |  |               |   | 145.69% |  |  |   | 103.04% | 
|Other Selected Items                   |                                                                                 |                                              |   |         |                   |  |   |          |  |  |               |         |  |               |   |         |  |  |   |        
|                                       | Loans serviced for others(9)                                                    |                                              | $ | 73,787  |                   |  | $ | 44,501   |  |  | $             | 63,676  |  |               | $ | 73,787  |  |  | $ | 44,501  | 
|                                       | Loan production(10)                                                             |                                              |   | 17,537  |                   |  |   | 10,607   |  |  |               | 14,833  |  |               |   | 44,344  |  |  |   | 27,481  | 
|                                       | Mortgage industry share(11)                                                     |                                              |   | 2.19%   |                   |  |   | 1.60%    |  |  |               | 1.84%   |  |               |   | 1.97%   |  |  |   | 1.27%   | 
|                                       | Pipeline of mortgage loans in process                                           |                                              |   | 8,945   |                   |  |   | 6,433    |  |  |               | 8,294   |  |               |   | 8,945   |  |  |   | 6,433   | 
|                                       | Loans sold                                                                      |                                              | $ | 15,539  |                   |  | $ | 8,941    |  |  | $             | 11,534  |  |               | $ | 36,727  |  |  | $ | 21,486  | 
|                                       | Loans sold/mortgage loans produced                                              |                                              |   | 92%     |                   |  |   | 86%      |  |  |               | 81%     |  |               |   | 86%     |  |  |   | 81%     | 
|                                       | Mortgage banking revenue (MBR) margin on loans sold
    (12)                  |                                              |   | 1.23%   |                   |  |   | 1.68%    |  |  |               | 1.64%   |  |               |   | 1.51%   |  |  |   | 2.06%   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For the quarter and nine months ended September 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 and for the impact of the purchase
    accounting adjustments for Financial Freedom. Total adjustments
    were $11 million and $63 million, respectively, for
    the three and nine months ended September 30, 2004. A full
    reconciliation between the pro forma amounts and amounts
    calculated in accordance with general accepted accounting
    principals, or GAAP, is as follows:

|                           |  |                                              |      |  |                   |   |      |           |  |   |      |  |  |             |      |  |           |   |      |  |  |   |      | 
|-------------------------- |  | -------------------------------------------- | ---- |  | ----------------- | - | ---- | --------- |  | - | ---- |  |  | ----------- | ---- |  | --------- | - | ---- |  |  | - | ---- | 
|                           |  | Three Months Ended                           |      |  | Nine Months Ended |  
|                           |  |                                              |      |  |                   |  
|                           |  | September 30, 2004                           |     
|                           |  |                                              |     
|                           |  | GAAP                                         |      |  | Adjustments       |   |      | Pro Forma |  |   | GAAP |  |  | Adjustments |      |  | Pro Forma |  
|                           |  |                                              |      |  |                   |   |      |           |  |   |      |  |  |             |      |  |           |  
|                           |  | (Dollars in millions, except per share data) |     
|Gain on sale of loans      |  | $                                            | 98   |  |                   | $ | 11   |           |  | $ | 109  |  |  | $           | 248  |  |           | $ | 63   |  |  | $ | 311  | 
|Net revenues               |  |                                              | 204  |  |                   |   | 11   |           |  |   | 215  |  |  |             | 524  |  |           |   | 63   |  |  |   | 587  | 
|Other expense              |  |                                              | 122  |  |                   |   |     |           |  |   | 122  |  |  |             | 334  |  |           |   |     |  |  |   | 334  | 
|Income taxes               |  |                                              | 32   |  |                   |   | 5    |           |  |   | 37   |  |  |             | 75   |  |           |   | 25   |  |  |   | 100  | 
|                           |  |                                              |      |  |                   |   |      |           |  |   |      |  |  |             |      |  |           |  
|Net earnings               |  | $                                            | 50   |  |                   | $ | 6    |           |  | $ | 56   |  |  | $           | 115  |  |           | $ | 38   |  |  | $ | 153  | 
|                           |  |                                              |      |  |                   |   |      |           |  |   |      |  |  |             |      |  |           |  
|Diluted earnings per share |  | $                                            | 0.78 |  |                   | $ | 0.10 |           |  | $ | 0.88 |  |  | $           | 1.87 |  |           | $ | 0.62 |  |  | $ | 2.49 | 

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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | The Company previously classified the initial deferral of the
    incremental direct origination costs net of the fees collected
    on the loans as a net reduction in operating expenses. However,
    during the second quarter of 2005 we have revised the
    presentation to reflect the deferral of the total fees collected
    as a reduction of fee and other income and the deferral of the
    incremental direct origination costs as a reduction of operating
    expenses. All prior periods have been revised to conform with
    the current presentation. This revision had no impact on
    reported earnings or the balance sheet in the current period or
    in any prior period. Certain performance ratios based on net
    revenues or operating expenses have been revised accordingly.
|
| | (3) | Net earnings for the period divided by weighted average basic
    shares outstanding for the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (4) | Net earnings for the period divided by weighted average dilutive
    shares outstanding for the period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (5) | Dividends declared per common share as a percentage of diluted
    earnings per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (6) | Defined as operating expenses divided by net interest income and
    other income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| | (7) | Debt includes deposits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (8) | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (9) | Represents the unpaid principal balance on loans sold with
    servicing retained by IndyMac.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Includes newly originated commitments on construction loans and
    warehouse lending.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    
|(11) | 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 its October 26, 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.
|    
|(12) | Gain on sale of loans and net interest income earned while loans
    were held for sale divided by total loans sold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

SUMMARY OF OVERALL RESULTS






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ESTIMATED LOSSES FROM GULF COAST HURRICANES






|                                  |                                         |                                          |   |       |       | 
|--------------------------------- | --------------------------------------- | ---------------------------------------- | - | ----- | ----- | 
|                                  |                                         | Losses Recorded                          |  
|                                  |                                         |                                          |  
|                                  |                                         | (Dollars in                              |  
|                                  |                                         | thousands)                               |  
|Charges related to the Hurricanes |                                         |                                          |   |      
|                                  | Provision for loan losses               |                                          | $ | 1,300 |      
|                                  | Reduction to gain on sale of loans      |                                          |   | 1,300 |      
|                                  | Gain on mortgage-backed securities, net |                                          |   | 2,600 |      
|                                  |                                         |                                          |  
|                                  |                                         | Total hurricane losses recorded  pretax |   | $     | 5,200 | 
|                                  |                                         |                                          |  



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BUSINESS SEGMENT RESULTS






|                                       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|-------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Mortgage Professionals                 |  | This group is responsible for the production of mortgage loans
    through relationships with mortgage brokers, mortgage bankers,
    financial institutions and homebuilders. Mortgage loans are
    either funded by us (wholesale division) or obtained as closed
    loans on a flow basis (wholesale and correspondent divisions) or
    through bulk purchases (conduit division).                                                                                                                                                                                                                                                                         
|Consumer Direct and Indirect           |  | This division offers consumers mortgage lending through our Web
    site, direct Internet leads developed through online
    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). This group also services all reverse mortgage loans
    originated.                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Retained Assets and Servicing Division |  | This division manages the assets the Company retains in
    conjunction with its mortgage loan sales. The assets held
    include the following asset classes: (i) mortgage servicing
    rights (MSRs), interest-only strips, prepayment
    penalty securities and residual securities;
    (ii) derivatives and securities held as hedges of such
    assets, including swaps, options, futures, 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.
|                                       |  | Further, the division continues to service all loans sold with
    servicing retained, loans held on the balance sheet pending sale
    and mortgage loans held for investment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  



|                                    |  |                                                                                                                                                                                                                                                                                                                                     
|----------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Mortgage-backed Securities (MBS)  |  | Assets include predominantly 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 Division                |  | This division specializes in providing HELOC and closed end
    second mortgages nationwide through IndyMacs wholesale and
    retail channels.                                                                                                                                                                                    
|Consumer Construction and Lot Loans |  | This division 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.
|Builder Construction                |  | This division offers land acquisition, development and
    construction financing to homebuilders for residential
    construction.                                                                                                                                                                                                 
|Warehouse Lending                   |  | This group offers short-term lines of credit to approved
    correspondent sellers nationwide. The group functions as a
    financial intermediary for lenders, providing them with the
    financial capacity to fund loans and hold them on balance sheet
    until they are sold to approved investors.                          
|Discontinued Products               |  | Home improvement and manufactured housing loans.                                                                                                                                                                                                                                                                                    

6



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##### Table of Contents





|                                            |                        |                        |                   |          |                |        |          |          |        |        |        |       |        |        |            |         |         |        |            |         |        |        |            |        |         |         |            |         |         |        | 
|------------------------------------------- | ---------------------- | ---------------------- | ----------------- | -------- | -------------- | ------ | -------- | -------- | ------ | ------ | ------ | ----- | ------ | ------ | ---------- | ------- | ------- | ------ | ---------- | ------- | ------ | ------ | ---------- | ------ | ------- | ------- | ---------- | ------- | ------- | ------ | 
|                                            |                        | Mortgage Banking       |                   |          |                |        |          |          |       
|                                            |                        |                        |                   |          |                |        |          |          |       
|                                            |                        |                        |                   | MSRs and |                |        | Mortgage |          |        |        |        |       |        |        |            |        
|Three Months Ended                          |                        | Production             |                   |          | Other Retained |        |          | Banking  |        |        |        |       |        |        |            |         | Total   |       
|September 30, 2005                          |                        | Divisions              |                   |          | Assets         |        |          | Overhead |        |        | Total  |       |        | Thrift |            |         | Other   |        |            | Company |       
|                                            |                        |                        |                   |          |                |        |          |          |        |        |        |       |        |        |            |         |         |        |            |         |       
|                                            |                        | (Dollars in thousands) |                  
|Operating Results                           |                        |                        |                   |          |                |        |          |          |        |        |        |       |        |        |            |         |         |        |            |         |        |        |            |        |         |         |            |        
|Net interest income                         |                        | $                      | 35,937            |          |                | $      | 12,161   |          |        | $      | 33     |       |        | $      | 48,131     |         |         | $      | 60,518     |         |        | $      | 2,777      |        |         | $       | 111,426    |        
|Provision for loan losses                   |                        |                        |                  |          |                |        |         |          |        |        |       |       |        |        |           |         |         |        | (3,528     | )       |        |        |           |        |         |         | (3,528     | )      
|Gain (loss) on sale of loans                |                        |                        | 136,342           |          |                |        | 8,348    |          |        |        |       |       |        |        | 144,690    |         |         |        | 14,720     |         |        |        | (8,324     | )      |         |         | 151,086    |        
|Gain (loss) on securities                   |                        |                        |                  |          |                |        | (390     | )        |        |        |       |       |        |        | (390       | )       |         |        | 412        |         |        |        | 706        |        |         |         | 728        |        
|Service fee income                          |                        |                        | 3,384             |          |                |        | 5,834    |          |        |        |       |       |        |        | 9,218      |         |         |        | 1,568      |         |        |        | (482       | )      |         |         | 10,304     |        
|Other income                                |                        |                        | 145               |          |                |        | 731      |          |        |        | 622    |       |        |        | 1,498      |         |         |        | 10,273     |         |        |        | 907        |        |         |         | 12,678     |        
|                                            |                        |                        |                   |          |                |        |          |          |        |        |        |       |        |        |            |         |         |        |            |         |       
|                                            | Net revenues (expense) |                        |                   | 175,808  |                |        |          | 26,684   |        |        |        | 655   |        |        |            | 203,147 |         |        |            | 83,963  |        |        |            | (4,416 | )       |         |            | 282,694 |        
|                                            | Operating expenses     |                        |                   | 121,563  |                |        |          | 9,845    |        |        |        | 9,989 |        |        |            | 141,397 |         |        |            | 27,062  |        |        |            | 43,823 |         |         |            | 212,282 |        
|                                            | FAS 91 Deferral        |                        |                   | (54,300  | )              |        |          | (707     | )      |        |        |      |        |        |            | (55,007 | )       |        |            | (5,496  | )      |        |            | (286   | )       |         |            | (60,789 | )      
|                                            |                        |                        |                   |          |                |        |          |          |        |        |        |       |        |        |            |         |         |        |            |         |       
|                                            |                        | Pretax income (loss)   |                   |          | 108,545        |        |          |          | 17,546 |        |        |       | (9,334 | )      |            |         | 116,757 |        |            |         | 62,397 |        |            |        | (47,953 | )       |            |         | 131,201 |       
|                                            |                        |                        |                   |          |                |        |          |          |        |        |        |       |        |        |            |         |         |        |            |         |       
|                                            |                        |                        | Net income (loss) |          | $              | 65,599 |          |          | $      | 10,615 |        |       | $      | (5,647 | )          |         | $       | 70,567 |            |         | $      | 37,751 |            |        | $       | (29,043 | )          |         | $       | 79,275 | 
|                                            |                        |                        |                   |          |                |        |          |          |        |        |        |       |        |        |            |         |         |        |            |         |       
|Relevant Financial and
    Performance Data |                        |                        |                   |          |                |        |          |          |        |        |        |       |        |        |            |         |         |        |            |         |        |        |            |        |         |         |            |        
|Average interest-earning assets             |                        | $                      | 7,767,105         |          |                | $      | 519,850  |          |        | $      | 51     |       |        | $      | 8,287,006  |         |         | $      | 12,082,104 |         |        | $      | 752,430    |        |         | $       | 21,121,540 |        
|Allocated capital                           |                        | $                      | 477,400           |          |                | $      | 251,304  |          |        | $      | 12,680 |       |        | $      | 741,384    |         |         | $      | 638,258    |         |        | $      | 19,322     |        |         | $       | 1,398,964  |        
|Loans produced                              |                        | $                      | 15,745,797        |          |                | $      | 330,439  |          |        | $      |       |       |        | $      | 16,076,236 |         |         | $      | 1,460,830  |         |        | $      |           |        |         | $       | 17,537,066 |        
|Loans sold                                  |                        |                        | 15,691,191        |          |                |        | 366,836  |          |        |        | N/A    |       |        |        | 16,058,027 |         |         |        | 832,327    |         |        |        | (1,351,145 | )      |         |         | 15,539,209 |        
|MBR margin                                  |                        |                        | 1.10              | %        |                |        | 2.65     | %        |        |        | N/A    |       |        |        | 1.13       | %       |         |        | 2.04       | %       |        |        | N/A        |        |         |         | 1.23       | %      
|Return on equity (ROE)                      |                        |                        | 55                | %        |                |        | 17       | %        |        |        | N/A    |       |        |        | 38         | %       |         |        | 23         | %       |        |        | N/A        |        |         |         | 22         | %      
|Return on assets (ROA)                      |                        |                        | 3.28              | %        |                |        | 2.98     | %        |        |        | N/A    |       |        |        | 2.96       | %       |         |        | 1.24       | %       |        |        | N/A        |        |         |         | 1.38       | %      
|Net interest margin, thrift.                |                        |                        | N/A               |          |                |        | N/A      |          |        |        | N/A    |       |        |        | N/A        |         |         |        | 1.99       | %       |        |        | N/A        |        |         |         | 1.96       | %      
|Average FTE                                 |                        |                        | 3,548             |          |                |        | 137      |          |        |        | 624    |       |        |        | 4,309      |         |         |        | 598        |         |        |        | 1,023      |        |         |         | 5,930      |        

|                                        |                        |                        |                   |          |                |        |          |          |      |      |       |        |         |        |           |         |        |        |            |         |        |        |            |        |         |         |            |         |        |        | 
|--------------------------------------- | ---------------------- | ---------------------- | ----------------- | -------- | -------------- | ------ | -------- | -------- | ---- | ---- | ----- | ------ | ------- | ------ | --------- | ------- | ------ | ------ | ---------- | ------- | ------ | ------ | ---------- | ------ | ------- | ------- | ---------- | ------- | ------ | ------ | 
|                                        |                        | Mortgage Banking       |                   |          |                |        |          |          |     
|                                        |                        |                        |                   |          |                |        |          |          |     
|                                        |                        |                        |                   | MSRs and |                |        | Mortgage |          |      |      |       |        |         |        |           |        
|Three Months Ended                      |                        | Production             |                   |          | Other Retained |        |          | Banking  |      |      |       |        |         |        |           |         | Total  |       
|September 30, 2004                      |                        | Divisions              |                   |          | Assets         |        |          | Overhead |      |      | Total |        |         | Thrift |           |         | Other  |        |            | Company |       
|                                        |                        |                        |                   |          |                |        |          |          |      |      |       |        |         |        |           |         |        |        |            |         |       
|                                        |                        | (Dollars in thousands) |                  
|Operating Results                       |                        |                        |                   |          |                |        |          |          |      |      |       |        |         |        |           |         |        |        |            |         |        |        |            |        |         |         |            |        
|Net interest income                     |                        | $                      | 33,418            |          |                | $      | 12,757   |          |      | $    |      |        |         | $      | 46,175    |         |        | $      | 55,164     |         |        | $      | (749       | )      |         | $       | 100,590    |        
|Provision for loan losses               |                        |                        |                  |          |                |        |         |          |      |      |      |        |         |        |          |         |        |        | (1,498     | )       |        |        |           |        |         |         | (1,498     | )      
|Gain (loss) on sale of loans            |                        |                        | 90,492            |          |                |        | 6,351    |          |      |      |      |        |         |        | 96,843    |         |        |        | 10,663     |         |        |        | (9,454     | )      |         |         | 98,052     |        
|Gain (loss) on securities               |                        |                        |                  |          |                |        | (12,550  | )        |      |      |      |        |         |        | (12,550   | )       |        |        | 199        |         |        |        | 2,913      |        |         |         | (9,438     | )      
|Service fee income                      |                        |                        |                  |          |                |        | (2,035   | )        |      |      |      |        |         |        | (2,035    | )       |        |        | 409        |         |        |        | 10,368     |        |         |         | 8,742      |        
|Other income                            |                        |                        | 2,239             |          |                |        | 236      |          |      |      | 608   |        |         |        | 3,083     |         |        |        | 6,443      |         |        |        | (1,814     | )      |         |         | 7,712      |        
|                                        |                        |                        |                   |          |                |        |          |          |      |      |       |        |         |        |           |         |        |        |            |         |       
|                                        | Net revenues (expense) |                        |                   | 126,149  |                |        |          | 4,759    |      |      |       | 608    |         |        |           | 131,516 |        |        |            | 71,380  |        |        |            | 1,264  |         |         |            | 204,160 |       
|                                        | Operating expenses     |                        |                   | 97,964   |                |        |          | 5,011    |      |      |       | 12,219 |         |        |           | 115,194 |        |        |            | 18,687  |        |        |            | 31,061 |         |         |            | 164,942 |       
|                                        | FAS 91 Deferral        |                        |                   | (38,043  | )              |        |          |         |      |      |       |       |         |        |           | (38,043 | )      |        |            | (3,165  | )      |        |            | (1,761 | )       |         |            | (42,969 | )     
|                                        |                        |                        |                   |          |                |        |          |          |      |      |       |        |         |        |           |         |        |        |            |         |       
|                                        |                        | Pretax income (loss)   |                   |          | 66,228         |        |          |          | (252 | )    |       |        | (11,611 | )      |           |         | 54,365 |        |            |         | 55,858 |        |            |        | (28,036 | )       |            |         | 82,187 |       
|                                        |                        |                        |                   |          |                |        |          |          |      |      |       |        |         |        |           |         |        |        |            |         |       
|                                        |                        |                        | Net income (loss) |          | $              | 40,068 |          |          | $    | (152 | )     |        | $       | (7,025 | )         |         | $      | 32,891 |            |         | $      | 33,794 |            |        | $       | (16,959 | )          |         | $      | 49,726 | 
|                                        |                        |                        |                   |          |                |        |          |          |      |      |       |        |         |        |           |         |        |        |            |         |       
|Relevant Financial and Performance Data |                        |                        |                   |          |                |        |          |          |      |      |       |        |         |        |           |         |        |        |            |         |        |        |            |        |         |         |            |        
|Average interest-earning assets         |                        | $                      | 4,263,033         |          |                | $      | 914,369  |          |      | $    |      |        |         | $      | 5,177,402 |         |        | $      | 10,337,046 |         |        | $      | 347,810    |        |         | $       | 15,862,258 |        
|Allocated capital                       |                        | $                      | 315,440           |          |                | $      | 226,674  |          |      | $    |      |        |         | $      | 542,114   |         |        | $      | 527,220    |         |        | $      | 143,728    |        |         | $       | 1,213,062  |        
|Loans produced                          |                        | $                      | 9,256,594         |          |                | $      | 416,035  |          |      | $    |      |        |         | $      | 9,672,629 |         |        | $      | 934,765    |         |        | $      |           |        |         | $       | 10,607,394 |        
|Loans sold                              |                        |                        | 9,249,161         |          |                |        | 416,035  |          |      |      | N/A   |        |         |        | 9,665,196 |         |        |        | 838,527    |         |        |        | (1,563,075 | )      |         |         | 8,940,648  |        
|MBR margin(1)                           |                        |                        | 1.34              | %        |                |        | 2.43     | %        |      |      | N/A   |        |         |        | 1.39      | %       |        |        | 1.70       | %       |        |        | N/A        |        |         |         | 1.68       | %      
|Return on equity (ROE)                  |                        |                        | 51                | %        |                |        |         |          |      |      | N/A   |        |         |        | 24        | %       |        |        | 26         | %       |        |        | N/A        |        |         |         | 16         | %      
|Return on assets (ROA)                  |                        |                        | 3.60              | %        |                |        | (0.04    | )%       |      |      | N/A   |        |         |        | 2.19      | %       |        |        | 1.29       | %       |        |        | N/A        |        |         |         | 1.14       | %      
|Net interest margin, thrift.            |                        |                        | N/A               |          |                |        | N/A      |          |      |      | N/A   |        |         |        | N/A       |         |        |        | 2.12       | %       |        |        | N/A        |        |         |         | 2.03       | %      
|Average FTE                             |                        |                        | 2,940             |          |                |        | 123      |          |      |      | 559   |        |         |        | 3,622     |         |        |        | 421        |         |        |        | 919        |        |         |         | 4,962      |        






|    |                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The 2004 MBR margin is computed using the pro forma gain on sale
    of $109 million for the third quarter of 2004, excluding
    the effect of SAB No. 105 and purchase accounting
    adjustments for Financial Freedom, totaling $11 million.

7



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##### Table of Contents





|                                        |                        |                                       |                   |         |               |           |           |          |        |       |            |        |        |          |            |         |           |        |         |           |      |      |         |        |        |       |            |         |         |        | 
|--------------------------------------- | ---------------------- | ------------------------------------- | ----------------- | ------- | ------------- | --------- | --------- | -------- | ------ | ----- | ---------- | ------ | ------ | -------- | ---------- | ------- | --------- | ------ | ------- | --------- | ---- | ---- | ------- | ------ | ------ | ----- | ---------- | ------- | ------- | ------ | 
|                                        |                        | Mortgage Banking Production Divisions |                  
|                                        |                        |                                       |                  
|                                        |                        |                                       |                   |         |               | Financial |           |          |       
|                                        |                        | Mortgage Professionals                |                   |         | Consumer      |           |           | Freedom  |        |       | Total      |       
|Three Months Ended                      |                        |                                       |                   |         | Direct and    |           |           | (Reverse |        |       | Production |       
|September 30, 2005                      |                        | Wholesale                             |                   |         | Correspondent |           |           | Conduit  |        |       | Total      |        |        | Indirect |            |         | Mortgage) |        |         | Divisions |     
|                                        |                        |                                       |                   |         |               |           |           |          |        |       |            |        |        |          |            |         |           |        |         |           |     
|                                        |                        | (Dollars in thousands)                |                  
|Operating Results                       |                        |                                       |                   |         |               |           |           |          |        |       |            |        |        |          |            |         |           |        |         |           |      |      |         |        |        |       |            |        
|Net interest income                     |                        | $                                     | 16,458            |         |               | $         | 3,983     |          |        | $     | 13,164     |        |        | $        | 33,605     |         |           | $      | 1,598   |           |      | $    | 734     |        |        | $     | 35,937     |        
|Provision for loan losses               |                        |                                       |                  |         |               |           |          |          |        |       |           |        |        |          |           |         |           |        |        |           |      |      |        |        |        |       |           |        
|Gain (loss) on sale of loans            |                        |                                       | 83,131            |         |               |           | 14,597    |          |        |       | 3,483      |        |        |          | 101,211    |         |           |        | 13,275  |           |      |      | 21,856  |        |        |       | 136,342    |        
|Gain (loss) on securities               |                        |                                       |                  |         |               |           |          |          |        |       |           |        |        |          |           |         |           |        |        |           |      |      |        |        |        |       |           |        
|Service fee income                      |                        |                                       |                  |         |               |           |          |          |        |       |           |        |        |          |           |         |           |        |        |           |      |      | 3,384   |        |        |       | 3,384      |        
|Other income                            |                        |                                       |                  |         |               |           |          |          |        |       | 31         |        |        |          | 31         |         |           |        | 88      |           |      |      | 26      |        |        |       | 145        |        
|                                        |                        |                                       |                   |         |               |           |           |          |        |       |            |        |        |          |            |         |           |        |         |           |     
|                                        | Net revenues (expense) |                                       |                   | 99,589  |               |           |           | 18,580   |        |       |            | 16,678 |        |          |            | 134,847 |           |        |         | 14,961    |      |      |         | 26,000 |        |       |            | 175,808 |        
|                                        | Operating expenses     |                                       |                   | 64,271  |               |           |           | 8,532    |        |       |            | 4,803  |        |          |            | 77,606  |           |        |         | 23,282    |      |      |         | 20,675 |        |       |            | 121,563 |        
|                                        | FAS 91                 |                                       |                   | (35,239 | )             |           |           | (5,034   | )      |       |            |       |        |          |            | (40,273 | )         |        |         | (7,648    | )    |      |         | (6,379 | )      |       |            | (54,300 | )      
|                                        |                        |                                       |                   |         |               |           |           |          |        |       |            |        |        |          |            |         |           |        |         |           |     
|                                        |                        | Pretax income (loss)                  |                   |         | 70,557        |           |           |          | 15,082 |       |            |        | 11,875 |          |            |         | 97,514    |        |         |           | (673 | )    |         |        | 11,704 |       |            |         | 108,545 |       
|                                        |                        |                                       |                   |         |               |           |           |          |        |       |            |        |        |          |            |         |           |        |         |           |     
|                                        |                        |                                       | Net income (loss) |         | $             | 42,687    |           |          | $      | 9,125 |            |        | $      | 7,184    |            |         | $         | 58,996 |         |           | $    | (407 | )       |        | $      | 7,010 |            |         | $       | 65,599 | 
|                                        |                        |                                       |                   |         |               |           |           |          |        |       |            |        |        |          |            |         |           |        |         |           |     
|Relevant Financial and Performance Data |                        |                                       |                   |         |               |           |           |          |        |       |            |        |        |          |            |         |           |        |         |           |      |      |         |        |        |       |            |        
|Average interest-earning assets         |                        | $                                     | 3,686,819         |         |               | $         | 741,485   |          |        | $     | 2,808,114  |        |        | $        | 7,236,418  |         |           | $      | 377,158 |           |      | $    | 153,529 |        |        | $     | 7,767,105  |        
|Allocated capital                       |                        | $                                     | 203,516           |         |               | $         | 39,616    |          |        | $     | 147,716    |        |        | $        | 390,848    |         |           | $      | 21,452  |           |      | $    | 65,100  |        |        | $     | 477,400    |        
|Loans produced                          |                        | $                                     | 7,749,550         |         |               | $         | 1,651,558 |          |        | $     | 4,718,369  |        |        | $        | 14,119,477 |         |           | $      | 791,707 |           |      | $    | 834,613 |        |        | $     | 15,745,797 |        
|Loans sold                              |                        |                                       | 7,749,550         |         |               |           | 1,651,558 |          |        |       | 4,718,369  |        |        |          | 14,119,477 |         |           |        | 791,707 |           |      |      | 780,007 |        |        |       | 15,691,191 |        
|MBR margin                              |                        |                                       | 1.29              | %       |               |           | 1.12      | %        |        |       | 0.35       | %      |        |          | 0.95       | %       |           |        | 1.88    | %         |      |      | 2.90    | %      |        |       | 1.10       | %      
|Pretax income/loan sold                 |                        |                                       | 0.91              | %       |               |           | 0.91      | %        |        |       | 0.25       | %      |        |          | 0.69       | %       |           |        | (0.09   | )%        |      |      | 1.50    | %      |        |       | 0.69       | %      
|Return on equity (ROE)                  |                        |                                       | 83                | %       |               |           | 91        | %        |        |       | 19         | %      |        |          | 60         | %       |           |        | (8      | )%        |      |      | 43      | %      |        |       | 55         | %      
|Return on assets (ROA)                  |                        |                                       | 4.58              | %       |               |           | 4.87      | %        |        |       | 1.01       | %      |        |          | 3.23       | %       |           |        | (0.41   | )%        |      |      | 9.80    | %      |        |       | 3.28       | %      
|Net interest margin                     |                        |                                       | 1.77              | %       |               |           | 2.13      | %        |        |       | 1.86       | %      |        |          | 1.84       | %       |           |        | 1.68    | %         |      |      | 1.90    | %      |        |       | 1.84       | %      
|Average FTE                             |                        |                                       | 1,861             |         |               |           | 221       |          |        |       | 116        |        |        |          | 2,198      |         |           |        | 537     |           |      |      | 813     |        |        |       | 3,548      |        

|                                        |                        |                                       |                   |         |          |        |            |         |       |          |           |         |            |           |         |        |           |        |         |        |       |       |           |         |        |        | 
|--------------------------------------- | ---------------------- | ------------------------------------- | ----------------- | ------- | -------- | ------ | ---------- | ------- | ----- | -------- | --------- | ------- | ---------- | --------- | ------- | ------ | --------- | ------ | ------- | ------ | ----- | ----- | --------- | ------- | ------ | ------ | 
|                                        |                        | Mortgage Banking Production Divisions |                  
|                                        |                        |                                       |                  
|                                        |                        | Mortgage Professionals                |                   |         |          |        | Financial  |         |       |         
|                                        |                        |                                       |                   |         | Consumer |        |            | Freedom |       |          | Total     |        
|Three Months Ended                      |                        | Wholesale/                            |                   |         |          |        | Direct and |         |       | (Reverse |           |         | Production |          
|September 30, 2004                      |                        | Correspondent                         |                   |         | Conduit  |        |            | Total   |       |          | Indirect  |         |            | Mortgage) |         |        | Divisions |       
|                                        |                        |                                       |                   |         |          |        |            |         |       |          |           |         |            |           |         |        |           |       
|                                        |                        | (Dollars in thousands)                |                  
|Operating Results                       |                        |                                       |                   |         |          |        |            |         |       |          |           |         |            |           |         |        |           |        |         |        |       |       |           |        
|Net interest income                     |                        | $                                     | 20,625            |         |          | $      | 7,498      |         |       | $        | 28,123    |         |            | $         | 4,969   |        |           | $      | 326     |        |       | $     | 33,418    |        
|Provision for loan losses               |                        |                                       |                  |         |          |        |           |         |       |          |          |         |            |           |        |        |           |        |        |        |       |       |          |        
|Gain (loss) on sale of loans            |                        |                                       | 60,483            |         |          |        | 4,435      |         |       |          | 64,918    |         |            |           | 15,362  |        |           |        | 10,212  |        |       |       | 90,492    |        
|Gain (loss) on securities               |                        |                                       |                  |         |          |        |           |         |       |          |          |         |            |           |        |        |           |        |        |        |       |       |          |        
|Service fee income                      |                        |                                       |                  |         |          |        |           |         |       |          |          |         |            |           |        |        |           |        |        |        |       |       |          |        
|Other income                            |                        |                                       |                  |         |          |        | (120       | )       |       |          | (120      | )       |            |           | 375     |        |           |        | 1,984   |        |       |       | 2,239     |        
|                                        |                        |                                       |                   |         |          |        |            |         |       |          |           |         |            |           |         |        |           |       
|                                        | Net revenues (expense) |                                       |                   | 81,108  |          |        |            | 11,813  |       |          |           | 92,921  |            |           |         | 20,706 |           |        |         | 12,522 |       |       |           | 126,149 |       
|                                        | Operating expenses     |                                       |                   | 50,341  |          |        |            | 3,884   |       |          |           | 54,225  |            |           |         | 31,709 |           |        |         | 12,030 |       |       |           | 97,964  |       
|                                        | FAS 91 Deferral        |                                       |                   | (23,772 | )        |        |            |        |       |          |           | (23,772 | )          |           |         | (8,948 | )         |        |         | (5,323 | )     |       |           | (38,043 | )     
|                                        |                        |                                       |                   |         |          |        |            |         |       |          |           |         |            |           |         |        |           |       
|                                        |                        | Pretax income (loss)                  |                   |         | 54,539   |        |            |         | 7,929 |          |           |         | 62,468     |           |         |        | (2,055    | )      |         |        | 5,815 |       |           |         | 66,228 |       
|                                        |                        |                                       |                   |         |          |        |            |         |       |          |           |         |            |           |         |        |           |       
|                                        |                        |                                       | Net income (loss) |         | $        | 32,996 |            |         | $     | 4,797    |           |         | $          | 37,793    |         |        | $         | (1,243 | )       |        | $     | 3,518 |           |         | $      | 40,068 | 
|                                        |                        |                                       |                   |         |          |        |            |         |       |          |           |         |            |           |         |        |           |       
|Relevant Financial and Performance Data |                        |                                       |                   |         |          |        |            |         |       |          |           |         |            |           |         |        |           |        |         |        |       |       |           |        
|Average interest-earning assets         |                        | $                                     | 3,075,301         |         |          | $      | 671,012    |         |       | $        | 3,746,313 |         |            | $         | 428,061 |        |           | $      | 88,659  |        |       | $     | 4,263,033 |        
|Allocated capital                       |                        | $                                     | 195,112           |         |          | $      | 43,563     |         |       | $        | 238,675   |         |            | $         | 33,925  |        |           | $      | 42,840  |        |       | $     | 315,440   |        
|Loans produced                          |                        | $                                     | 5,864,322         |         |          | $      | 2,155,478  |         |       | $        | 8,019,800 |         |            | $         | 858,060 |        |           | $      | 378,734 |        |       | $     | 9,256,594 |        
|Loans sold                              |                        |                                       | 5,864,322         |         |          |        | 2,155,478  |         |       |          | 8,019,800 |         |            |           | 858,060 |        |           |        | 371,301 |        |       |       | 9,249,161 |        
|MBR margin                              |                        |                                       | 1.38              | %       |          |        | 0.55       | %       |       |          | 1.16      | %       |            |           | 2.37    | %      |           |        | 2.84    | %      |       |       | 1.34      | %      
|Pretax income/loan sold                 |                        |                                       | 0.93              | %       |          |        | 0.37       | %       |       |          | 0.78      | %       |            |           | (0.24   | )%     |           |        | 1.57    | %      |       |       | 0.72      | %      
|Return on equity (ROE)                  |                        |                                       | 67                | %       |          |        | 44         | %       |       |          | 63        | %       |            |           | (15     | )%     |           |        | N/A     |        |       |       | 51        | %      
|Return on assets (ROA)                  |                        |                                       | 4.18              | %       |          |        | 2.77       | %       |       |          | 3.93      | %       |            |           | (1.11   | )%     |           |        | N/A     |        |       |       | 3.60      | %      
|Net interest margin                     |                        |                                       | 2.67              | %       |          |        | 4.45       | %       |       |          | 2.99      | %       |            |           | 4.62    | %      |           |        | N/A     |        |       |       | 3.12      | %      
|Average FTE                             |                        |                                       | 1,661             |         |          |        | 63         |         |       |          | 1,724     |         |            |           | 804     |        |           |        | 412     |        |       |       | 2,940     |        

8



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##### Table of Contents





|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |        |       |              |           |        |           |       |         |              |       |       |              |     |      |      |        |     |    |    |            |        |        |        | 
|--------------------------------------- | ---------------------- | ---------------------- | ----------------- | -------- | --------- | ----- | --------- | -------- | ------ | ------ | ------------ | ------ | ----- | ------------ | --------- | ------ | --------- | ----- | ------- | ------------ | ----- | ----- | ------------ | --- | ---- | ---- | ------ | --- | -- | -- | ---------- | ------ | ------ | ------ | 
|                                        |                        | Thrift                 |                  
|                                        |                        |                        |                  
|                                        |                        |                        |                   | Consumer |           |       |          
|                                        |                        | Mortgage-              |                   |          | Prime SFR |       |           | Home     |        |        | Construction |        |       | Builder      |           |        |          
|Three Months Ended                      |                        | Backed                 |                   |          | Mortgage  |       |           | Equity   |        |        | and Lot      |        |       | Construction |           |        | Warehouse |       |         | Discontinued |       |       |             
|September 30, 2005                      |                        | Securities             |                   |          | Loans     |       |           | Division |        |        | Loans        |        |       | Financing    |           |        | Lending   |       |         | Products     |       |       | Total Thrift |    
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |        |       |              |           |        |           |       |         |              |       |       |              |    
|                                        |                        | (Dollars in thousands) |                  
|Operating Results                       |                        |                        |                   |          |           |       |           |          |        |        |              |        |       |              |           |        |           |       |         |              |       |       |              |     |      |      |        |     |    |    |            |       
|Net interest income                     |                        | $                      | 8,358             |          |           | $     | 18,905    |          |        | $      | 9,029        |        |       | $            | 11,155    |        |           | $     | 12,055  |              |       | $     | 253          |     |      | $    | 763    |     |    | $  | 60,518     |       
|Provision for loan losses               |                        |                        |                  |          |           |       | (1,800    | )        |        |        |             |        |       |              | (1,197    | )      |           |       |        |              |       |       | (31          | )   |      |      | (500   | )   |    |    | (3,528     | )     
|Gain (loss) on sale of loans            |                        |                        |                  |          |           |       | 4,022     |          |        |        | 870          |        |       |              | 9,828     |        |           |       |        |              |       |       |             |     |      |      |       |     |    |    | 14,720     |       
|Gain (loss) on securities               |                        |                        |                  |          |           |       |          |          |        |        | (654         | )      |       |              | 1,066     |        |           |       |        |              |       |       |             |     |      |      |       |     |    |    | 412        |       
|Service fee income                      |                        |                        |                  |          |           |       | 344       |          |        |        | 1,223        |        |       |              |          |        |           |       | 1       |              |       |       |             |     |      |      |       |     |    |    | 1,568      |       
|Other income                            |                        |                        |                  |          |           |       | 1,393     |          |        |        | 2,527        |        |       |              | 5,895     |        |           |       | 314     |              |       |       | 145          |     |      |      | (1     | )   |    |    | 10,273     |       
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |        |       |              |           |        |           |       |         |              |       |       |              |    
|                                        | Net revenues (expense) |                        |                   | 8,358    |           |       |           | 22,864   |        |        |              | 12,995 |       |              |           | 26,747 |           |       |         | 12,370       |       |       |              | 367 |      |      |        | 262 |    |    |            | 83,963 |       
|                                        | Operating expenses     |                        |                   | 247      |           |       |           | 780      |        |        |              | 3,975  |       |              |           | 16,495 |           |       |         | 4,768        |       |       |              | 575 |      |      |        | 222 |    |    |            | 27,062 |       
|                                        | FAS 91 Deferral        |                        |                   |         |           |       |           |         |        |        |              | (548   | )     |              |           | (3,172 | )         |       |         | (1,776       | )     |       |              |    |      |      |        |    |    |    |            | (5,496 | )     
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |        |       |              |           |        |           |       |         |              |       |       |              |    
|                                        |                        | Pretax income (loss)   |                   |          | 8,111     |       |           |          | 22,084 |        |              |        | 9,568 |              |           |        | 13,424    |       |         |              | 9,378 |       |              |     | (208 | )    |        |     | 40 |    |            |        | 62,397 |       
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |        |       |              |           |        |           |       |         |              |       |       |              |    
|                                        |                        |                        | Net income (loss) |          | $         | 4,907 |           |          | $      | 13,361 |              |        | $     | 5,789        |           |        | $         | 8,122 |         |              | $     | 5,674 |              |     | $    | (126 | )      |     | $  | 24 |            |        | $      | 37,751 | 
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |        |       |              |           |        |           |       |         |              |       |       |              |    
|Relevant Financial and Performance Data |                        |                        |                   |          |           |       |           |          |        |        |              |        |       |              |           |        |           |       |         |              |       |       |              |     |      |      |        |     |    |    |            |       
|Average interest-earning assets         |                        | $                      | 2,189,352         |          |           | $     | 5,075,925 |          |        | $      | 1,686,216    |        |       | $            | 2,198,570 |        |           | $     | 850,653 |              |       | $     | 33,155       |     |      | $    | 48,233 |     |    | $  | 12,082,104 |       
|Allocated capital                       |                        | $                      | 46,878            |          |           | $     | 245,309   |          |        | $      | 114,046      |        |       | $            | 125,599   |        |           | $     | 98,834  |              |       | $     | 3,301        |     |      | $    | 4,291  |     |    | $  | 638,258    |       
|Loans produced                          |                        | $                      |                  |          |           | $     |          |          |        | $      | 57,561       |        |       | $            | 816,358   |        |           | $     | 538,911 |              |       | $     | 48,000       |     |      | $    |       |     |    | $  | 1,460,830  |       
|Loans sold                              |                        | $                      |                  |          |           | $     |          |          |        | $      | 169,791      |        |       | $            | 662,536   |        |           | $     |        |              |       | $     |             |     |      | $    |       |     |    | $  | 832,327    |       
|Return on equity (ROE)                  |                        |                        | 42                | %        |           |       | 22        | %        |        |        | 20           | %      |       |              | 26        | %      |           |       | 23      | %            |       |       | (15          | )%  |      |      | 2      | %   |    |    | 23         | %     
|Return on assets (ROA)                  |                        |                        | 0.88              | %        |           |       | 1.04      | %        |        |        | 1.34         | %      |       |              | 1.46      | %      |           |       | 2.67    | %            |       |       | (1.50        | )%  |      |      | 0.23   | %   |    |    | 1.24       | %     
|Net interest margin                     |                        |                        | 1.51              | %        |           |       | 1.48      | %        |        |        | 2.12         | %      |       |              | 2.01      | %      |           |       | 5.62    | %            |       |       | 3.03         | %   |      |      | 6.28   | %   |    |    | 1.99       | %     
|Efficiency ratio                        |                        |                        | 3                 | %        |           |       | 3         | %        |        |        | 26           | %      |       |              | 48        | %      |           |       | 24      | %            |       |       | 144          | %   |      |      | 29     | %   |    |    | 25         | %     
|Average FTE                             |                        |                        | 6                 |          |           |       | 10        |          |        |        | 37           |        |       |              | 420       |        |           |       | 97      |              |       |       | 18           |     |      |      | 10     |     |    |    | 598        |       

|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |       |       |              |           |        |           |        |         |              |       |       |              |   |   |   |        |     |      |      |            |        |        |        | 
|--------------------------------------- | ---------------------- | ---------------------- | ----------------- | -------- | --------- | ----- | --------- | -------- | ------ | ------ | ------------ | ----- | ----- | ------------ | --------- | ------ | --------- | ------ | ------- | ------------ | ----- | ----- | ------------ | - | - | - | ------ | --- | ---- | ---- | ---------- | ------ | ------ | ------ | 
|                                        |                        | Thrift                 |                  
|                                        |                        |                        |                  
|                                        |                        |                        |                   | Consumer |           |       |          
|                                        |                        | Mortgage-              |                   |          | Prime SFR |       |           | Home     |        |        | Construction |       |       | Builder      |           |        |          
|Three Months Ended                      |                        | Backed                 |                   |          | Mortgage  |       |           | Equity   |        |        | and Lot      |       |       | Construction |           |        | Warehouse |        |         | Discontinued |       |       |             
|September 30, 2004                      |                        | Securities             |                   |          | Loans     |       |           | Division |        |        | Loans        |       |       | Financing    |           |        | Lending   |        |         | Products     |       |       | Total Thrift |  
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |       |       |              |           |        |           |        |         |              |       |       |              |  
|                                        |                        | (Dollars in thousands) |                  
|Operating Results                       |                        |                        |                   |          |           |       |           |          |        |        |              |       |       |              |           |        |           |        |         |              |       |       |              |   |   |   |        |     |      |      |            |       
|Net interest income                     |                        | $                      | 7,264             |          |           | $     | 17,386    |          |        | $      | 6,786        |       |       | $            | 15,224    |        |           | $      | 7,409   |              |       | $     |             |   |   | $ | 1,095  |     |      | $    | 55,164     |       
|Provision for loan losses               |                        |                        |                  |          |           |       | (400      | )        |        |        | 509          |       |       |              | (537      | )      |           |        | (270    | )            |       |       |             |   |   |   | (800   | )   |      |      | (1,498     | )     
|Gain (loss) on sale of loans            |                        |                        |                  |          |           |       | 3,161     |          |        |        |             |       |       |              | 7,502     |        |           |        |        |              |       |       |             |   |   |   |       |     |      |      | 10,663     |       
|Gain (loss) on securities               |                        |                        | 199               |          |           |       |          |          |        |        |             |       |       |              |          |        |           |        |        |              |       |       |             |   |   |   |       |     |      |      | 199        |       
|Service fee income                      |                        |                        |                  |          |           |       |          |          |        |        | 409          |       |       |              |          |        |           |        |        |              |       |       |             |   |   |   |       |     |      |      | 409        |       
|Other income                            |                        |                        |                  |          |           |       | 895       |          |        |        | 1,406        |       |       |              | 4,050     |        |           |        | 92      |              |       |       |             |   |   |   |       |     |      |      | 6,443      |       
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |       |       |              |           |        |           |        |         |              |       |       |              |  
|                                        | Net revenues (expense) |                        |                   | 7,463    |           |       |           | 21,042   |        |        |              | 9,110 |       |              |           | 26,239 |           |        |         | 7,231        |       |       |              |  |   |   |        | 295 |      |      |            | 71,380 |       
|                                        | Operating expenses     |                        |                   | 113      |           |       |           | 797      |        |        |              | 2,965 |       |              |           | 11,307 |           |        |         | 3,029        |       |       |              |  |   |   |        | 476 |      |      |            | 18,687 |       
|                                        | FAS 91 Deferral        |                        |                   |         |           |       |           |         |        |        |              | (468  | )     |              |           | (1,830 | )         |        |         | (867         | )     |       |              |  |   |   |        |    |      |      |            | (3,165 | )     
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |       |       |              |           |        |           |        |         |              |       |       |              |  
|                                        |                        | Pretax income (loss)   |                   |          | 7,350     |       |           |          | 20,245 |        |              |       | 6,613 |              |           |        | 16,762    |        |         |              | 5,069 |       |              |   |  |   |        |     | (181 | )    |            |        | 55,858 |       
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |       |       |              |           |        |           |        |         |              |       |       |              |  
|                                        |                        |                        | Net income (loss) |          | $         | 4,447 |           |          | $      | 12,248 |              |       | $     | 4,001        |           |        | $         | 10,141 |         |              | $     | 3,067 |              |   | $ |  |        |     | $    | (110 | )          |        | $      | 33,794 | 
|                                        |                        |                        |                   |          |           |       |           |          |        |        |              |       |       |              |           |        |           |        |         |              |       |       |              |  
|Relevant Financial and Performance Data |                        |                        |                   |          |           |       |           |          |        |        |              |       |       |              |           |        |           |        |         |              |       |       |              |   |   |   |        |     |      |      |            |       
|Average interest-earning assets         |                        | $                      | 1,991,141         |          |           | $     | 4,709,068 |          |        | $      | 1,223,260    |       |       | $            | 1,712,003 |        |           | $      | 642,013 |              |       | $     |             |   |   | $ | 59,561 |     |      | $    | 10,337,046 |       
|Allocated capital                       |                        | $                      | 43,208            |          |           | $     | 232,653   |          |        | $      | 87,159       |       |       | $            | 92,626    |        |           | $      | 66,362  |              |       | $     |             |   |   | $ | 5,212  |     |      | $    | 527,220    |       
|Loans produced                          |                        | $                      |                  |          |           | $     |          |          |        | $      | 71,076       |       |       | $            | 597,807   |        |           | $      | 265,882 |              |       | $     |             |   |   | $ |       |     |      | $    | 934,765    |       
|Loans sold                              |                        | $                      |                  |          |           | $     | 529,492   |          |        | $      |             |       |       | $            | 309,035   |        |           | $      |        |              |       | $     |             |   |   | $ |       |     |      | $    | 838,527    |       
|Return on equity (ROE)                  |                        |                        | 41                | %        |           |       | 21        | %        |        |        | 18           | %     |       |              | 44        | %      |           |        | 18      | %            |       |       | N/A          |   |   |   | (8     | )%  |      |      | 26         | %     
|Return on assets (ROA)                  |                        |                        | 0.88              | %        |           |       | 1.03      | %        |        |        | 1.29         | %     |       |              | 2.35      | %      |           |        | 1.91    | %            |       |       | N/A          |   |   |   | (0.84  | )%  |      |      | 1.29       | %     
|Net interest margin                     |                        |                        | 1.45              | %        |           |       | 1.47      | %        |        |        | 2.21         | %     |       |              | 3.54      | %      |           |        | 4.59    | %            |       |       | N/A          |   |   |   | 7.31   | %   |      |      | 2.12       | %     
|Efficiency ratio                        |                        |                        | 2                 | %        |           |       | 4         | %        |        |        | 29           | %     |       |              | 35        | %      |           |        | 29      | %            |       |       | N/A          |   |   |   | 43     | %   |      |      | 21         | %     
|Average FTE                             |                        |                        | 4                 |          |           |       | 11        |          |        |        | 20           |       |       |              | 303       |        |           |        | 69      |              |       |       |             |   |   |   | 14     |     |      |      | 421        |       

9



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##### Table of Contents





|                                        |                        |                        |                   |           |         |        |            |          |         |         |           |       |        |          |         |        |         |        |         |        |         |         |            |         |         |        | 
|--------------------------------------- | ---------------------- | ---------------------- | ----------------- | --------- | ------- | ------ | ---------- | -------- | ------- | ------- | --------- | ----- | ------ | -------- | ------- | ------ | ------- | ------ | ------- | ------ | ------- | ------- | ---------- | ------- | ------- | ------ | 
|                                        |                        |                        |                   | Total     |         |        |            |          |         |         |           |       |       
|Three Months Ended                      |                        |                        |                   | Operating |         |        |            |          |         |         | Corporate |       |        | Total    |        
|September 30, 2005                      |                        | Eliminations           |                   |           | Results |        |            | Deposits |         |         | Treasury  |       |        | Overhead |         |        | Company |       
|                                        |                        |                        |                   |           |         |        |            |          |         |         |           |       |        |          |         |        |         |       
|                                        |                        | (Dollars in thousands) |                  
|Operating Results                       |                        |                        |                   |           |         |        |            |          |         |         |           |       |        |          |         |        |         |        |         |        |         |         |            |        
|Net interest income                     |                        | $                      | 9,363             |           |         | $      | 118,012    |          |         | $       |          |       |        | $        | (3,250  | )      |         | $      | (3,336  | )      |         | $       | 111,426    |        
|Provision for loan losses               |                        |                        |                  |           |         |        | (3,528     | )        |         |         |          |       |        |          |        |        |         |        |        |        |         |         | (3,528     | )      
|Gain (loss) on sale of loans            |                        |                        | (8,324            | )         |         |        | 151,086    |          |         |         |          |       |        |          |        |        |         |        |        |        |         |         | 151,086    |        
|Gain (loss) on securities               |                        |                        | 706               |           |         |        | 728        |          |         |         |          |       |        |          |        |        |         |        |        |        |         |         | 728        |        
|Service fee income                      |                        |                        | (482              | )         |         |        | 10,304     |          |         |         |          |       |        |          |        |        |         |        |        |        |         |         | 10,304     |        
|Other income                            |                        |                        | (643              | )         |         |        | 11,128     |          |         |         | 679       |       |        |          | 156     |        |         |        | 715     |        |         |         | 12,678     |        
|                                        |                        |                        |                   |           |         |        |            |          |         |         |           |       |        |          |         |        |         |       
|                                        | Net revenues (expense) |                        |                   | 620       |         |        |            | 287,730  |         |         |           | 679   |        |          |         | (3,094 | )       |        |         | (2,621 | )       |         |            | 282,694 |        
|                                        | Operating expenses     |                        |                   | 4,470     |         |        |            | 172,929  |         |         |           | 3,501 |        |          |         | 1,660  |         |        |         | 34,192 |         |         |            | 212,282 |        
|                                        | FAS 91                 |                        |                   | (286      | )       |        |            | (60,789  | )       |         |           |      |        |          |         |       |         |        |         |       |         |         |            | (60,789 | )      
|                                        |                        |                        |                   |           |         |        |            |          |         |         |           |       |        |          |         |        |         |       
|                                        |                        | Pretax income (loss)   |                   |           | (3,564  | )      |            |          | 175,590 |         |           |       | (2,822 | )        |         |        | (4,754  | )      |         |        | (36,813 | )       |            |         | 131,201 |       
|                                        |                        |                        |                   |           |         |        |            |          |         |         |           |       |        |          |         |        |         |       
|                                        |                        |                        | Net income (loss) |           | $       | (2,156 | )          |          | $       | 106,162 |           |       | $      | (1,707   | )       |        | $       | (2,876 | )       |        | $       | (22,304 | )          |         | $       | 79,275 | 
|                                        |                        |                        |                   |           |         |        |            |          |         |         |           |       |        |          |         |        |         |       
|Relevant Financial and Performance Data |                        |                        |                   |           |         |        |            |          |         |         |           |       |        |          |         |        |         |        |         |        |         |         |            |        
|Average interest-earning assets(1)      |                        | $                      |                  |           |         | $      | 20,369,110 |          |         | $       | 175       |       |        | $        | 805,128 |        |         | $      | (52,873 | )      |         | $       | 21,121,540 |        
|Allocated capital                       |                        | $                      |                  |           |         | $      | 1,379,642  |          |         | $       | 1,697     |       |        | $        | 47,853  |        |         | $      | (30,228 | )      |         | $       | 1,398,964  |        
|Loans produced                          |                        | $                      |                  |           |         | $      | 17,537,066 |          |         | $       |          |       |        | $        |        |        |         | $      |        |        |         | $       | 17,537,066 |        
|Loans sold                              |                        |                        | (1,351,145        | )         |         |        | 15,539,209 |          |         |         | N/A       |       |        |          | N/A     |        |         |        | N/A     |        |         | $       | 15,539,209 |        
|Return on equity (ROE)                  |                        |                        | N/A               |           |         |        | 31         | %        |         |         | N/A       |       |        |          | N/A     |        |         |        | N/A     |        |         |         | 22         | %      
|Return on assets (ROA)                  |                        |                        | N/A               |           |         |        | 1.95       | %        |         |         | N/A       |       |        |          | N/A     |        |         |        | N/A     |        |         |         | 1.38       | %      
|Net interest margin                     |                        |                        | N/A               |           |         |        | 2.30       | %        |         |         | N/A       |       |        |          | N/A     |        |         |        | N/A     |        |         |         | 2.09       | %      
|Efficiency ratio                        |                        |                        | N/A               |           |         |        | 39         | %        |         |         | N/A       |       |        |          | N/A     |        |         |        | N/A     |        |         |         | 53         | %      
|Average FTE                             |                        |                        |                  |           |         |        | 4,907      |          |         |         | 211       |       |        |          | 36      |        |         |        | 776     |        |         |         | 5,930      |        

|                                        |                        |                        |                   |           |         |        |            |          |         |        |           |       |        |           |         |          |            |        |         |               |         |         |            |         |        |        |         |         |         |        |            |         |        |        | 
|--------------------------------------- | ---------------------- | ---------------------- | ----------------- | --------- | ------- | ------ | ---------- | -------- | ------- | ------ | --------- | ----- | ------ | --------- | ------- | -------- | ---------- | ------ | ------- | ------------- | ------- | ------- | ---------- | ------- | ------ | ------ | ------- | ------- | ------- | ------ | ---------- | ------- | ------ | ------ | 
|                                        |                        |                        |                   |           |         |        |            |          |         |        |           |       |        | SAB       |         |          |           
|                                        |                        |                        |                   |           |         |        |            |          |         |        |           |       |        | No. 105 & |         |          |           
|                                        |                        |                        |                   | Total     |         |        |            |          |         |        |           |       | Total  |           |         | Purchase |            |        |        
|Three Months Ended                      |                        |                        |                   | Operating |         |        |            |          |         |        | Corporate |       |        | Company   |         |          | Accounting |        |         | Total Company |        
|September 30, 2004                      |                        | Eliminations           |                   |           | Results |        |            | Deposits |         |        | Treasury  |       |        | Overhead  |         |          | Pro forma  |        |         | Adjustments   |         |         | GAAP       |        
|                                        |                        |                        |                   |           |         |        |            |          |         |        |           |       |        |           |         |          |            |        |         |               |         |         |            |        
|                                        |                        | (Dollars in thousands) |                   |           |        
|Operating Results                       |                        |                        |                   |           |         |        |            |          |         |        |           |       |        |           |         |          |            |        |         |               |         |         |            |         |        |        |         |         |         |        |            |        
|Net interest income                     |                        | $                      | 7,083             |           |         | $      | 108,422    |          |         | $      |          |       |        | $         | (5,030  | )        |            | $      | (2,802  | )             |         | $       | 100,590    |         |        | $      |        |         |         | $      | 100,590    |        
|Provision for loan losses               |                        |                        |                  |           |         |        | (1,498     | )        |         |        |          |       |        |           |        |          |            |        |        |               |         |         | (1,498     | )       |        |        |        |         |         |        | (1,498     | )      
|Gain (loss) on sale of loans            |                        |                        | 1,650             |           |         |        | 109,156    |          |         |        |          |       |        |           |        |          |            |        |        |               |         |         | 109,156    |         |        |        | (11,104 | )       |         |        | 98,052     |        
|Gain (loss) on securities               |                        |                        | 2,913             |           |         |        | (9,438     | )        |         |        |          |       |        |           |        |          |            |        |        |               |         |         | (9,438     | )       |        |        |        |         |         |        | (9,438     | )      
|Service fee income                      |                        |                        | 10,368            |           |         |        | 8,742      |          |         |        |          |       |        |           |        |          |            |        |        |               |         |         | 8,742      |         |        |        |        |         |         |        | 8,742      |        
|Other income                            |                        |                        | (3,636            | )         |         |        | 5,890      |          |         |        | 981       |       |        |           | 114     |          |            |        | 727     |               |         |         | 7,712      |         |        |        |        |         |         |        | 7,712      |        
|                                        |                        |                        |                   |           |         |        |            |          |         |        |           |       |        |           |         |          |            |        |         |               |         |         |            |        
|                                        | Net revenues (expense) |                        |                   | 18,378    |         |        |            | 221,274  |         |        |           | 981   |        |           |         | (4,916   | )          |        |         | (2,075        | )       |         |            | 215,264 |        |        |         | (11,104 | )       |        |            | 204,160 |       
|                                        | Operating expenses     |                        |                   | 871       |         |        |            | 134,752  |         |        |           | 3,864 |        |           |         | 391      |            |        |         | 25,935        |         |         |            | 164,942 |        |        |         |        |         |        |            | 164,942 |       
|                                        | FAS 91 Deferral        |                        |                   | (1,761    | )       |        |            | (42,969  | )       |        |           |      |        |           |         |         |            |        |         |              |         |         |            | (42,969 | )      |        |         |        |         |        |            | (42,969 | )     
|                                        |                        |                        |                   |           |         |        |            |          |         |        |           |       |        |           |         |          |            |        |         |               |         |         |            |        
|                                        |                        | Pretax income (loss)   |                   |           | 19,268  |        |            |          | 129,491 |        |           |       | (2,883 | )         |         |          | (5,307     | )      |         |               | (28,010 | )       |            |         | 93,291 |        |         |         | (11,104 | )      |            |         | 82,187 |       
|                                        |                        |                        |                   |           |         |        |            |          |         |        |           |       |        |           |         |          |            |        |         |               |         |         |            |        
|                                        |                        |                        | Net income (loss) |           | $       | 11,657 |            |          | $       | 78,342 |           |       | $      | (1,744    | )       |          | $          | (3,211 | )       |               | $       | (16,946 | )          |         | $      | 56,441 |         |         | $       | (6,715 | )          |         | $      | 49,726 | 
|                                        |                        |                        |                   |           |         |        |            |          |         |        |           |       |        |           |         |          |            |        |         |               |         |         |            |        
|Relevant Financial and Performance Data |                        |                        |                   |           |         |        |            |          |         |        |           |       |        |           |         |          |            |        |         |               |         |         |            |         |        |        |         |         |         |        |            |        
|Average interest-earning assets         |                        | $                      |                  |           |         | $      | 15,514,448 |          |         | $      |          |       |        | $         | 354,577 |          |            | $      | (6,767  | )             |         | $       | 15,862,258 |         |        | $      |        |         |         | $      | 15,862,258 |        
|Allocated capital                       |                        | $                      |                  |           |         | $      | 1,069,334  |          |         | $      | 1,211     |       |        | $         | 33,178  |          |            | $      | 109,339 |               |         | $       | 1,213,062  |         |        | $      |        |         |         | $      | 1,213,062  |        
|Loans produced                          |                        | $                      |                  |           |         | $      | 10,607,394 |          |         | $      | N/A       |       |        | $         | N/A     |          |            | $      | N/A     |               |         | $       | 10,607,394 |         |        | $      |        |         |         | $      | 10,607,394 |        
|Loans sold                              |                        | $                      | (1,563,075        | )         |         | $      | 8,940,648  |          |         | $      | N/A       |       |        | $         | N/A     |          |            | $      | N/A     |               |         | $       | 8,940,648  |         |        | $      |        |         |         | $      | 8,940,648  |        
|Return on equity (ROE)                  |                        |                        | N/A               |           |         |        | 29         | %        |         |        | N/A       |       |        |           | N/A     |          |            |        | N/A     |               |         |         | 19         | %       |        |        |        |         |         |        | 16         | %      
|Return on assets (ROA)                  |                        |                        | N/A               |           |         |        | 1.90       | %        |         |        | N/A       |       |        |           | N/A     |          |            |        | N/A     |               |         |         | 1.30       | %       |        |        |        |         |         |        | 1.14       | %      
|Net interest margin                     |                        |                        | N/A               |           |         |        | 2.78       | %        |         |        | N/A       |       |        |           | N/A     |          |            |        | N/A     |               |         |         | 2.52       | %       |        |        |        |         |         |        | 2.52       | %      
|Efficiency Ratio                        |                        |                        | N/A               |           |         |        | 41         | %        |         |        | N/A       |       |        |           | N/A     |          |            |        | N/A     |               |         |         | 56         | %       |        |        |        |         |         |        | 59         | %      
|Average FTE                             |                        |                        |                  |           |         |        | 4,043      |          |         |        | 161       |       |        |           | 28      |          |            |        | 730     |               |         |         | 4,962      |         |        |        |        |         |         |        | 4,962      |        

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|                                      |  |                        |         |   |              |   |        |       |  |   |        |   |  |   |        |  
|------------------------------------- |  | ---------------------- | ------- | - | ------------ | - | ------ | ----- |  | - | ------ | - |  | - | ------ | -
|                                      |  | Eliminations by Type   |        
|                                      |  |                        |        
|                                      |  | Interdivision          |         |   | MSR Economic |   |        |      
|Three Months Ended September 30, 2005 |  | Loan Sales             |         |   | Value        |   |        | Other |  |   | Total  |  
|                                      |  |                        |         |   |              |   |        |       |  |   |        |  
|                                      |  | (Dollars in thousands) |        
|Net interest income                   |  | $                      | 5,355   |   |              | $ |       |       |  | $ | 4,008  |   |  | $ | 9,363  |  
|Gain on sale of loans                 |  |                        | (10,124 | ) |              |   |       |       |  |   | 1,800  |   |  |   | (8,324 | )
|Gain on sale of securities            |  |                        | 706     |   |              |   |       |       |  |   |       |   |  |   | 706    |  
|Service fee income (loss)             |  |                        | 1,928   |   |              |   | (2,410 | )     |  |   |       |   |  |   | (482   | )
|Other income                          |  |                        |        |   |              |   |       |       |  |   | (643   | ) |  |   | (643   | )
|Operating expenses                    |  |                        |        |   |              |   |       |       |  |   | (4,184 | ) |  |   | (4,184 | )
|                                      |  |                        |         |   |              |   |        |       |  |   |        |  
|                                      |  | $                      | (2,135  | ) |              | $ | (2,410 | )     |  | $ | 981    |   |  | $ | (3,564 | )
|                                      |  |                        |         |   |              |   |        |       |  |   |        |  

|                                      |  |                        |        |  |              |   |       |       |  |   |        |   |  |   |        |  
|------------------------------------- |  | ---------------------- | ------ |  | ------------ | - | ----- | ----- |  | - | ------ | - |  | - | ------ | -
|                                      |  | Eliminations by Type   |       
|                                      |  |                        |       
|                                      |  | Interdivision          |        |  | MSR Economic |   |       |      
|Three Months Ended September 30, 2004 |  | Loan Sales             |        |  | Value        |   |       | Other |  |   | Total  |  
|                                      |  |                        |        |  |              |   |       |       |  |   |        |  
|                                      |  | (Dollars in thousands) |       
|Net interest income                   |  | $                      | 5,878  |  |              | $ |      |       |  | $ | 1,205  |   |  | $ | 7,083  |  
|Gain on sale of loans                 |  |                        | 1,650  |  |              |   |      |       |  |   |       |   |  |   | 1,650  |  
|Gain on sale of securities            |  |                        | 2,913  |  |              |   |      |       |  |   |       |   |  |   | 2,913  |  
|Service fee income                    |  |                        | 5,032  |  |              |   | 5,336 |       |  |   |       |   |  |   | 10,368 |  
|Other income                          |  |                        |       |  |              |   |      |       |  |   | (3,636 | ) |  |   | (3,636 | )
|Operating expenses                    |  |                        |       |  |              |   |      |       |  |   | 890    |   |  |   | 890    |  
|                                      |  |                        |        |  |              |   |       |       |  |   |        |  
|                                      |  | $                      | 15,473 |  |              | $ | 5,336 |       |  | $ | (1,541 | ) |  | $ | 19,268 |  
|                                      |  |                        |        |  |              |   |       |       |  |   |        |  

Accounting Methodology for Reporting Segment Financial
Results








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12



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PRODUCT PROFITABILITY ANALYSIS




|                                                                  |  |                                                                                                                                                                                                                                                                                               
|----------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Standard Consumer Home Loans Held for Sale                        |  | Includes first mortgage products originated for sale through the
    various IndyMac channels (excluding servicing retained and
    consumer construction channels). These products include agency
    conforming/jumbo, Alt-A and subprime loans.                                            
|Specialty Consumer Home Loans Held for Sale and/or
    Investment |  | Includes specialty mortgage products originated through the
    various IndyMac channels and adjusted for intercompany activity.
    These products include, HELOCs/seconds, reverse mortgages, CTP/
    Lot and discontinued products.                                                       
|Home Loans and Related Investments                                |  | Includes all investment related activity including home loans
    held for investment, variable cash flow instruments,
    mortgage-backed securities and other related investments.                                                                                                          
|Specialty Commercial Loans Held for Investment                    |  | Includes the consolidated loan activity associated with loans
    that are made to commercial customers such as homebuilders,
    commercial builders and mortgage brokers and bankers for the
    purposes of either building residential homes or financing the
    purchase of these homes.

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|                                   |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |        |        |         |        |         |         |            |         |         |        | 
|---------------------------------- | --------------------- | ---------------------- | ----------------- | ------- | ---------- | ------ | --------- | ----------- | ------ | ------ | ---------- | ------ | ------ | ---------- | --------- | ------ | ------ | ----- | ----- | ------- | ------ | ------ | ------- | ------ | ------- | ------- | ---------- | ------- | ------- | ------ | 
|                                   |                       |                        |                   |         |            | Home   |           |             |        |        |            |        |        |            |          
|                                   |                       | Standard               |                   |         | Specialty  |        |           | Loans &     |        |        | Specialty  |        |        | Loan       |           |        |        |       |      
|                                   |                       | Consumer Home          |                   |         | Consumer   |        |           | Related     |        |        | Commercial |        |        | Servicing  |           |        |        |       | Total |        
|                                   |                       | Loans                  |                   |         | Home Loans |        |           | Investments |        |        | Loans      |        |        | Operations |           |        | Other  |       |       | Company |       
|                                   |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |       
|                                   |                       | (Dollars in thousands) |                  
|Operating Results                  |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |        |        |         |        |         |         |            |        
|Net interest income                |                       | $                      | 29,393            |         |            | $      | 28,911    |             |        | $      | 41,184     |        |        | $          | 15,236    |        |        | $     | (41   | )       |        | $      | (3,257  | )      |         | $       | 111,426    |        
|Provision for loan losses          |                       |                        |                  |         |            |        | (1,546    | )           |        |        | (1,800     | )      |        |            | (182      | )      |        |       |      |         |        |        |        |        |         |         | (3,528     | )      
|Gain (loss) on sale of loans       |                       |                        | 101,776           |         |            |        | 36,746    |             |        |        | 12,564     |        |        |            |          |        |        |       |      |         |        |        |        |        |         |         | 151,086    |        
|Service fee income                 |                       |                        |                  |         |            |        | 4,607     |             |        |        | 8,106      |        |        |            | 1         |        |        |       |      |         |        |        | (2,410  | )      |         |         | 10,304     |        
|Gain (loss) on sale of securities  |                       |                        |                  |         |            |        | 412       |             |        |        | 316        |        |        |            |          |        |        |       |      |         |        |        |        |        |         |         | 728        |        
|Other income                       |                       |                        |                  |         |            |        | 7,819     |             |        |        | 2,124      |        |        |            | 1,087     |        |        |       | 634   |         |        |        | 1,014   |        |         |         | 12,678     |        
|                                   |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |       
|                                   | Net revenue (expense) |                        |                   | 131,169 |            |        |           | 76,949      |        |        |            | 62,494 |        |            |           | 16,142 |        |       |       | 593     |        |        |         | (4,653 | )       |         |            | 282,694 |        
|                                   | Variable expenses     |                        |                   | 59,473  |            |        |           | 29,183      |        |        |            | 1,593  |        |            |           | 4,840  |        |       |       |        |        |        |         |       |         |         |            | 95,089  |        
|                                   | FAS 91                |                        |                   | (45,634 | )          |        |           | (12,376     | )      |        |            | (707   | )      |            |           | (2,072 | )      |       |       |        |        |        |         |       |         |         |            | (60,789 | )      
|                                   | Fixed expenses        |                        |                   | 43,438  |            |        |           | 14,828      |        |        |            | 9,279  |        |            |           | 2,152  |        |       |       | 3,673   |        |        |         | 43,823 |         |         |            | 117,193 |        
|                                   |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |       
|                                   |                       | Pretax income (loss)   |                   |         | 73,892     |        |           |             | 45,314 |        |            |        | 52,329 |            |           |        | 11,222 |       |       |         | (3,080 | )      |         |        | (48,476 | )       |            |         | 131,201 |       
|                                   |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |       
|                                   |                       |                        | Net income (loss) |         | $          | 44,705 |           |             | $      | 27,344 |            |        | $      | 31,659     |           |        | $      | 6,789 |       |         | $      | (1,863 | )       |        | $       | (29,359 | )          |         | $       | 79,275 | 
|                                   |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |       
|Balance Sheet Data                 |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |        |        |         |        |         |         |            |        
|Average interest-earning assets(1) |                       | $                      | 7,201,633         |         |            | $      | 4,277,106 |             |        | $      | 7,762,950  |        |        | $          | 1,077,261 |        |        | $     |      |         |        | $      | 802,590 |        |         | $       | 21,121,540 |        
|Allocated capital                  |                       | $                      | 378,505           |         |            | $      | 281,415   |             |        | $      | 542,382    |        |        | $          | 120,347   |        |        | $     | 4,643 |         |        | $      | 71,672  |        |         | $       | 1,398,964  |        
|Performance Ratios                 |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |        |        |         |        |         |         |            |        
|Return on equity (ROE)             |                       |                        | 47                | %       |            |        | 39        | %           |        |        | 23         | %      |        |            | 22        | %      |        |       | N/A   |         |        |        | N/A     |        |         |         | 22         | %      
|Net interest margin                |                       |                        | 1.62              | %       |            |        | 2.68      | %           |        |        | 2.10       | %      |        |            | 5.61      | %      |        |       | N/A   |         |        |        | N/A     |        |         |         | 2.09       | %      
|MBR margin                         |                       |                        | 0.98              | %       |            |        | 2.53      | %           |        |        | 3.80       | %      |        |            | N/A       |        |        |       | N/A   |         |        |        | N/A     |        |         |         | 1.23       | %      
|Efficiency ratio                   |                       |                        | 44                | %       |            |        | 40        | %           |        |        | 16         | %      |        |            | 30        | %      |        |       | N/A   |         |        |        | N/A     |        |         |         | 53         | %      
|Operating Data                     |                       |                        |                   |         |            |        |           |             |        |        |            |        |        |            |           |        |        |       |       |         |        |        |         |        |         |         |            |        
|Loan production                    |                       |                        | 13,283,041        |         |            |        | 3,295,823 |             |        |        | 274,372    |        |        |            | 683,830   |        |        |       |      |         |        |        |        |        |         |         | 17,537,066 |        
|Loans sold                         |                       |                        | 13,372,120        |         |            |        | 1,800,253 |             |        |        | 366,836    |        |        |            |          |        |        |       |      |         |        |        |        |        |         |         | 15,539,209 |        

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|                                   |                        |                                            |                   |        |       |       |            |          |        |        |         |        |       |       |            |         |        |        | 
|---------------------------------- | ---------------------- | ------------------------------------------ | ----------------- | ------ | ----- | ----- | ---------- | -------- | ------ | ------ | ------- | ------ | ----- | ----- | ---------- | ------- | ------ | ------ | 
|                                   |                        | Standard Consumer Home Loans Held for Sale |                  
|                                   |                        |                                            |                  
|                                   |                        | Agency                                     |                   |        |      
|                                   |                        | Conforming/                                |                   |        |      
|                                   |                        | Jumbo                                      |                   |        | Alt-A |       |            | Subprime |        |        | Total   |       
|                                   |                        |                                            |                   |        |       |       |            |          |        |        |         |       
|                                   |                        | (Dollars in thousands)                     |                  
|Operating Results                  |                        |                                            |                   |        |       |       |            |          |        |        |         |        |       |       |            |        
|Net interest income                |                        | $                                          | 2,734             |        |       | $     | 19,496     |          |        | $      | 7,163   |        |       | $     | 29,393     |        
|Provision for loan losses          |                        |                                            |                  |        |       |       |           |          |        |        |        |        |       |       |           |        
|Gain (loss) on sale of loans       |                        |                                            | 3,343             |        |       |       | 92,810     |          |        |        | 5,623   |        |       |       | 101,776    |        
|Service fee income                 |                        |                                            |                  |        |       |       |           |          |        |        |        |        |       |       |           |        
|Gain (loss) on sale of securities  |                        |                                            |                  |        |       |       |           |          |        |        |        |        |       |       |           |        
|Other income                       |                        |                                            |                  |        |       |       |           |          |        |        |        |        |       |       |           |        
|                                   |                        |                                            |                   |        |       |       |            |          |        |        |         |       
|                                   | Net revenues (expense) |                                            |                   | 6,077  |       |       |            | 112,306  |        |        |         | 12,786 |       |       |            | 131,169 |       
|                                   | Variable expenses      |                                            |                   | 5,027  |       |       |            | 48,327   |        |        |         | 6,119  |       |       |            | 59,473  |       
|                                   | FAS 91                 |                                            |                   | (3,857 | )     |       |            | (37,082  | )      |        |         | (4,695 | )     |       |            | (45,634 | )     
|                                   | Fixed expenses         |                                            |                   | 3,169  |       |       |            | 35,374   |        |        |         | 4,895  |       |       |            | 43,438  |       
|                                   |                        |                                            |                   |        |       |       |            |          |        |        |         |       
|                                   |                        | Pretax income (loss)                       |                   |        | 1,738 |       |            |          | 65,687 |        |         |        | 6,467 |       |            |         | 73,892 |       
|                                   |                        |                                            |                   |        |       |       |            |          |        |        |         |       
|                                   |                        |                                            | Net income (loss) |        | $     | 1,051 |            |          | $      | 39,741 |         |        | $     | 3,913 |            |         | $      | 44,705 | 
|                                   |                        |                                            |                   |        |       |       |            |          |        |        |         |       
|Balance Sheet Data                 |                        |                                            |                   |        |       |       |            |          |        |        |         |        |       |       |            |        
|Average interest-earning assets(1) |                        | $                                          | 537,876           |        |       | $     | 5,787,212  |          |        | $      | 876,545 |        |       | $     | 7,201,633  |        
|Allocated capital                  |                        | $                                          | 27,720            |        |       | $     | 296,846    |          |        | $      | 53,939  |        |       | $     | 378,505    |        
|Performance Ratios                 |                        |                                            |                   |        |       |       |            |          |        |        |         |        |       |       |            |        
|Return on equity (ROE)             |                        |                                            | 15                | %      |       |       | 53         | %        |        |        | 29      | %      |       |       | 47         | %      
|Net interest margin                |                        |                                            | 2.02              | %      |       |       | 1.34       | %        |        |        | 3.24    | %      |       |       | 1.62       | %      
|MBR margin                         |                        |                                            | 0.75              | %      |       |       | 0.93       | %        |        |        | 2.48    | %      |       |       | 0.98       | %      
|Efficiency ratio                   |                        |                                            | 71                | %      |       |       | 42         | %        |        |        | 49      | %      |       |       | 44         | %      
|Operating Data                     |                        |                                            |                   |        |       |       |            |          |        |        |         |        |       |       |            |        
|Loan production                    |                        | $                                          | 799,341           |        |       | $     | 11,850,739 |          |        | $      | 632,961 |        |       | $     | 13,283,041 |        
|Loans sold                         |                        | $                                          | 812,499           |        |       | $     | 12,044,472 |          |        | $      | 515,149 |        |       | $     | 13,372,120 |        



|                         |  |                                                                                                                                                                                                                                                                            
|------------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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. We sell Alt-A loans to the GSEs on a negotiated
    basis even though the loans do not meet the GSE underwriting
    guidelines.            
|                        
|Subprime                 |  | Includes 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.

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|                                   |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |        |     |    |    |           |         |        |        | 
|---------------------------------- | ---------------------- | ------------------------------------------------------------- | ----------------- | ------ | --------- | ------ | ------- | ------- | ------ | ----- | ------------ | ------ | ------ | ----- | ------ | --- | -- | -- | --------- | ------- | ------ | ------ | 
|                                   |                        | Specialty Consumer Home Loans Held for Sale and/or Investment |                  
|                                   |                        |                                                               |                  
|                                   |                        | HELOCs/                                                       |                   |        | Reverse   |        |         |        
|                                   |                        | Seconds                                                       |                   |        | Mortgages |        |         | CTP/Lot |        |       | Discontinued |        |        | Total |       
|                                   |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |       
|                                   |                        | (Dollars in thousands)                                        |                  
|Operating Results                  |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |        |     |    |    |           |        
|Net interest income                |                        | $                                                             | 16,237            |        |           | $      | 734     |         |        | $     | 11,177       |        |        | $     | 763    |     |    | $  | 28,911    |        
|Provision for loan losses          |                        |                                                               |                  |        |           |        |        |         |        |       | (1,046       | )      |        |       | (500   | )   |    |    | (1,546    | )      
|Gain (loss) on sale of loans       |                        |                                                               | 4,472             |        |           |        | 21,856  |         |        |       | 10,418       |        |        |       |       |     |    |    | 36,746    |        
|Service fee income                 |                        |                                                               | 1,223             |        |           |        | 3,384   |         |        |       |             |        |        |       |       |     |    |    | 4,607     |        
|Gain (loss) on sale of securities  |                        |                                                               | (654              | )      |           |        |        |         |        |       | 1,066        |        |        |       |       |     |    |    | 412       |        
|Other income                       |                        |                                                               | 2,527             |        |           |        | 26      |         |        |       | 5,267        |        |        |       | (1     | )   |    |    | 7,819     |        
|                                   |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |       
|                                   | Net revenues (expense) |                                                               |                   | 23,805 |           |        |         | 26,000  |        |       |              | 26,882 |        |       |        | 262 |    |    |           | 76,949  |       
|                                   | Variable expenses      |                                                               |                   | 7,005  |           |        |         | 14,236  |        |       |              | 7,942  |        |       |        |    |    |    |           | 29,183  |       
|                                   | FAS 91                 |                                                               |                   | (3,121 | )         |        |         | (6,379  | )      |       |              | (2,876 | )      |       |        |    |    |    |           | (12,376 | )     
|                                   | Fixed expenses         |                                                               |                   | 1,263  |           |        |         | 6,439   |        |       |              | 6,904  |        |       |        | 222 |    |    |           | 14,828  |       
|                                   |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |       
|                                   |                        | Pretax income (loss)                                          |                   |        | 18,658    |        |         |         | 11,704 |       |              |        | 14,912 |       |        |     | 40 |    |           |         | 45,314 |       
|                                   |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |       
|                                   |                        |                                                               | Net income (loss) |        | $         | 11,288 |         |         | $      | 7,010 |              |        | $      | 9,022 |        |     | $  | 24 |           |         | $      | 27,344 | 
|                                   |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |       
|Balance Sheet Data                 |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |        |     |    |    |           |        
|Average interest-earning assets(1) |                        | $                                                             | 2,078,870         |        |           | $      | 153,529 |         |        | $     | 1,996,474    |        |        | $     | 48,233 |     |    | $  | 4,277,106 |        
|Allocated capital                  |                        | $                                                             | 153,944           |        |           | $      | 16,657  |         |        | $     | 106,523      |        |        | $     | 4,291  |     |    | $  | 281,415   |        
|Performance Ratios                 |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |        |     |    |    |           |        
|Return on equity (ROE)             |                        |                                                               | 29                | %      |           |        | 167     | %       |        |       | 34           | %      |        |       | 2      | %   |    |    | 39        | %      
|Net interest margin                |                        |                                                               | 3.10              | %      |           |        | 1.90    | %       |        |       | 2.22         | %      |        |       | 6.28   | %   |    |    | 2.68      | %      
|MBR margin                         |                        |                                                               | 2.81              | %      |           |        | 2.90    | %       |        |       | 1.94         | %      |        |       | N/A    |     |    |    | 2.53      | %      
|Efficiency ratio                   |                        |                                                               | 22                | %      |           |        | 55      | %       |        |       | 43           | %      |        |       | 29     | %   |    |    | 40        | %      
|Operating Data                     |                        |                                                               |                   |        |           |        |         |         |        |       |              |        |        |       |        |     |    |    |           |        
|Loan production                    |                        |                                                               | 1,106,109         |        |           |        | 834,613 |         |        |       | 1,355,101    |        |        |       |       |     |    |    | 3,295,823 |        
|Loans sold                         |                        |                                                               | 368,622           |        |           |        | 780,007 |         |        |       | 651,624      |        |        |       |       |     |    |    | 1,800,253 |        



|                  |  |                                                                                                                            
|----------------- |  | ---------------------------------------------------------------------------------------------------------------------------
|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          |  | Loans made to homeowners for the construction of new custom
    homes and the subsequent permanent mortgage, and lot loans.
|                 
|Discontinued      |  | Dealer originated manufactured housing and home improvement
    loans.                                                     

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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                |                        | $                                  | 12,161            |        |        | $      | 8,358     |            |       | $     | 20,665    |                |        | $       | 41,184    |        |        | $      | (41   | )    
|Provision for loan losses          |                        |                                    |                  |        |        |        |          |            |       |       | (1,800    | )              |        |         | (1,800    | )      |        |        |      |      
|Gain (loss) on sale of loans       |                        |                                    | 8,348             |        |        |        |          |            |       |       | 4,216     |                |        |         | 12,564    |        |        |        |      |      
|Service fee income                 |                        |                                    | 7,762             |        |        |        |          |            |       |       | 344       |                |        |         | 8,106     |        |        |        |      |      
|Gain (loss) on sale of securities  |                        |                                    | 316               |        |        |        |          |            |       |       |          |                |        |         | 316       |        |        |        |      |      
|Other income                       |                        |                                    | 731               |        |        |        |          |            |       |       | 1,393     |                |        |         | 2,124     |        |        |        | 634   |      
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|                                   | Net revenues (expense) |                                    |                   | 29,318 |        |        |           | 8,358      |       |       |           | 24,818         |        |         |           | 62,494 |        |        |       | 593   |       
|                                   | Variable expenses      |                                    |                   | 1,593  |        |        |           |           |       |       |           |               |        |         |           | 1,593  |        |        |       |      |       
|                                   | FAS 91                 |                                    |                   | (707   | )      |        |           |           |       |       |           |               |        |         |           | (707   | )      |        |       |      |       
|                                   | Fixed expenses         |                                    |                   | 8,252  |        |        |           | 247        |       |       |           | 780            |        |         |           | 9,279  |        |        |       | 3,673 |       
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|                                   |                        | Pretax income (loss)               |                   |        | 20,180 |        |           |            | 8,111 |       |           |                | 24,038 |         |           |        | 52,329 |        |       |       | (3,080 | )     
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|                                   |                        |                                    | Net income (loss) |        | $      | 12,209 |           |            | $     | 4,907 |           |                | $      | 14,543  |           |        | $      | 31,659 |       |       | $      | (1,863 | )
|                                   |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |          
|Balance Sheet Data                 |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |           |        |        |        |       |      
|Average interest-earning assets(1) |                        | $                                  | 519,850           |        |        | $      | 2,189,352 |            |       | $     | 5,053,748 |                |        | $       | 7,762,950 |        |        | $      |      |      
|Allocated capital                  |                        | $                                  | 251,304           |        |        | $      | 46,878    |            |       | $     | 244,200   |                |        | $       | 542,382   |        |        | $      | 4,643 |      
|Performance Ratios                 |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |           |        |        |        |       |      
|Return on equity (ROE)             |                        |                                    | 19                | %      |        |        | 42        | %          |       |       | 24        | %              |        |         | 23        | %      |        |        | N/A   |      
|Net interest margin                |                        |                                    | 9.28              | %      |        |        | 1.51      | %          |       |       | 1.62      | %              |        |         | 2.10      | %      |        |        | N/A   |      
|MBR margin                         |                        |                                    | 2.65              | %      |        |        | N/A       |            |       |       | N/M       |                |        |         | 3.80      | %      |        |        | N/A   |      
|Efficiency ratio                   |                        |                                    | 31                | %      |        |        | 3         | %          |       |       | 3         | %              |        |         | 16        | %      |        |        | N/A   |      
|Operating Data                     |                        |                                    |                   |        |        |        |           |            |       |       |           |                |        |         |           |        |        |        |       |      
|Loan production                    |                        |                                    | 274,372           |        |        |        |          |            |       |       |          |                |        |         | 274,372   |        |        |        |      |      
|Loans sold                         |                        |                                    | 366,836           |        |        |        |          |            |       |       |          |                |        |         | 366,836   |        |        |        |      |      



|                                         |  |                                                                                                                                                                                                                                                                                                                                                          
|---------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Retained Assets and Retention Activities |  | Mortgage banking, trading and hedging activity associated with
    the purchase, management and sale of mortgage banking assets and
    variable cash flow instruments retained in connection with the
    Companys loan sales. Activity also includes loans acquired
    through clean-up calls and originated through customer retention
    programs.
|                                        
|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.                                                                                                                 

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|                                   |                        |                                                |                   |       |             |       |           |         |       |       |        |     |      |      |           |        |        |       | 
|---------------------------------- | ---------------------- | ---------------------------------------------- | ----------------- | ----- | ----------- | ----- | --------- | ------- | ----- | ----- | ------ | --- | ---- | ---- | --------- | ------ | ------ | ----- | 
|                                   |                        | Specialty Commercial Loans Held for Investment |                  
|                                   |                        |                                                |                  
|                                   |                        | Single                                         |                   |       |             |       | Warehouse |         |       |      
|                                   |                        | Spec                                           |                   |       | Subdivision |       |           | Lending |       |       | Total  |    
|                                   |                        |                                                |                   |       |             |       |           |         |       |       |        |    
|                                   |                        | (Dollars in thousands)                         |                  
|Operating Results                  |                        |                                                |                   |       |             |       |           |         |       |       |        |     |      |      |           |       
|Net interest income                |                        | $                                              | 2,928             |       |             | $     | 12,055    |         |       | $     | 253    |     |      | $    | 15,236    |       
|Provision for loan losses          |                        |                                                | (151              | )     |             |       |          |         |       |       | (31    | )   |      |      | (182      | )     
|Gain (loss) on sale of loans       |                        |                                                |                  |       |             |       |          |         |       |       |       |     |      |      |          |       
|Service fee income                 |                        |                                                |                  |       |             |       | 1         |         |       |       |       |     |      |      | 1         |       
|Gain (loss) on sale of securities  |                        |                                                |                  |       |             |       |          |         |       |       |       |     |      |      |          |       
|Other income                       |                        |                                                | 628               |       |             |       | 314       |         |       |       | 145    |     |      |      | 1,087     |       
|                                   |                        |                                                |                   |       |             |       |           |         |       |       |        |    
|                                   | Net revenues (expense) |                                                |                   | 3,405 |             |       |           | 12,370  |       |       |        | 367 |      |      |           | 16,142 |       
|                                   | Variable expenses      |                                                |                   | 971   |             |       |           | 3,869   |       |       |        |    |      |      |           | 4,840  |       
|                                   | FAS 91                 |                                                |                   | (296  | )           |       |           | (1,776  | )     |       |        |    |      |      |           | (2,072 | )     
|                                   | Fixed expenses         |                                                |                   | 678   |             |       |           | 899     |       |       |        | 575 |      |      |           | 2,152  |       
|                                   |                        |                                                |                   |       |             |       |           |         |       |       |        |    
|                                   |                        | Pretax income (loss)                           |                   |       | 2,052       |       |           |         | 9,378 |       |        |     | (208 | )    |           |        | 11,222 |      
|                                   |                        |                                                |                   |       |             |       |           |         |       |       |        |    
|                                   |                        |                                                | Net income (loss) |       | $           | 1,241 |           |         | $     | 5,674 |        |     | $    | (126 | )         |        | $      | 6,789 | 
|                                   |                        |                                                |                   |       |             |       |           |         |       |       |        |    
|Balance Sheet Data                 |                        |                                                |                   |       |             |       |           |         |       |       |        |     |      |      |           |       
|Average interest-earning assets(1) |                        | $                                              | 193,453           |       |             | $     | 850,653   |         |       | $     | 33,155 |     |      | $    | 1,077,261 |       
|Allocated capital                  |                        | $                                              | 18,212            |       |             | $     | 98,834    |         |       | $     | 3,301  |     |      | $    | 120,347   |       
|Performance Ratios                 |                        |                                                |                   |       |             |       |           |         |       |       |        |     |      |      |           |       
|Return on equity (ROE)             |                        |                                                | 27                | %     |             |       | 23        | %       |       |       | N/A    |     |      |      | 22        | %     
|Net interest margin                |                        |                                                | 6.00              | %     |             |       | 5.62      | %       |       |       | N/A    |     |      |      | 5.61      | %     
|Efficiency ratio                   |                        |                                                | 38                | %     |             |       | 24        | %       |       |       | N/A    |     |      |      | 30        | %     
|Operating Data                     |                        |                                                |                   |       |             |       |           |         |       |       |        |     |      |      |           |       
|Loan production                    |                        |                                                | 96,919            |       |             |       | 538,911   |         |       |       | 48,000 |     |      |      | 683,830   |       
|Loans sold                         |                        |                                                |                  |       |             |       |          |         |       |       |       |     |      |      |          |       



|                         |  |                                                                                                               
|------------------------ |  | --------------------------------------------------------------------------------------------------------------
|Single Spec              |  | Loans that are made to homebuilders to build individual 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.          

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|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |        |         |         |            |         |         |        | 
|---------------------------------- | ---------------------- | ---------------------- | ----------------- | ----- | -------- | ------ | ------- | ------------ | ------ | ------ | ------------- | ------ | ------- | ------- | ---------- | ------- | ------- | ------ | 
|                                   |                        | Deposits               |                   |       | Treasury |        |         | Corporate OH |        |        | Total Company |       
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |       
|                                   |                        | (Dollars in thousands) |                  
|Operating Results                  |                        |                        |                   |       |          |        |         |              |        |        |               |        |         |         |            |        
|Net interest income                |                        | $                      | 3,734             |       |          | $      | (3,250  | )            |        | $      | (3,741        | )      |         | $       | 111,426    |        
|Provision for loan losses          |                        |                        |                  |       |          |        |        |              |        |        |              |        |         |         | (3,528     | )      
|Gain (loss) on sale of loans       |                        |                        |                  |       |          |        |        |              |        |        |              |        |         |         | 151,086    |        
|Service fee income                 |                        |                        |                  |       |          |        |        |              |        |        | (2,410        | )      |         |         | 10,304     |        
|Gain (loss) on sale of securities  |                        |                        |                  |       |          |        |        |              |        |        |              |        |         |         | 728        |        
|Other income                       |                        |                        | 679               |       |          |        | 156     |              |        |        | 179           |        |         |         | 12,678     |        
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |       
|                                   | Net revenues (expense) |                        |                   | 4,413 |          |        |         | (3,094       | )      |        |               | (5,972 | )       |         |            | 282,694 |        
|                                   | Variable expenses      |                        |                   |      |          |        |         |             |        |        |               |       |         |         |            | 95,089  |        
|                                   | FAS 91                 |                        |                   |      |          |        |         |             |        |        |               |       |         |         |            | (60,789 | )      
|                                   | Fixed expenses         |                        |                   | 7,235 |          |        |         | 1,660        |        |        |               | 34,928 |         |         |            | 117,193 |        
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |       
|                                   |                        | Pretax income (loss)   |                   |       | (2,822   | )      |         |              | (4,754 | )      |               |        | (40,900 | )       |            |         | 131,201 |       
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |       
|                                   |                        |                        | Net income (loss) |       | $        | (1,707 | )       |              | $      | (2,876 | )             |        | $       | (24,776 | )          |         | $       | 79,275 | 
|                                   |                        |                        |                   |       |          |        |         |              |        |        |               |       
|Balance Sheet Data                 |                        |                        |                   |       |          |        |         |              |        |        |               |        |         |         |            |        
|Average interest-earning assets(1) |                        | $                      | 175               |       |          | $      | 805,128 |              |        | $      | (2,713        | )      |         | $       | 21,121,540 |        
|Allocated capital                  |                        | $                      | 1,697             |       |          | $      | 47,853  |              |        | $      | 22,122        |        |         | $       | 1,398,964  |        
|Performance Ratios                 |                        |                        |                   |       |          |        |         |              |        |        |               |        |         |         |            |        
|Return on equity (ROE)             |                        |                        | N/A               |       |          |        | N/A     |              |        |        | N/A           |        |         |         | 22         | %      
|Net interest margin                |                        |                        | N/A               |       |          |        | N/A     |              |        |        | N/A           |        |         |         | 2.09       | %      
|Efficiency ratio                   |                        |                        | N/A               |       |          |        | N/A     |              |        |        | N/A           |        |         |         | 53         | %      
|Operating Data                     |                        |                        |                   |       |          |        |         |              |        |        |               |        |         |         |            |        
|Loan production                    |                        | $                      |                  |       |          | $      |        |              |        | $      |              |        |         |         | 17,537,066 |        
|Loans sold                         |                        | $                      |                  |       |          | $      |        |              |        | $      |              |        |         |         | 15,539,209 |        



|                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                
|------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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.                                                                                                                 

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LOAN PRODUCTION










|                                               |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |        |   |  |  |    |   
|---------------------------------------------- |  | ------------------------------------ | ------ | - | ------------- | - | ------ | ------- |  |  | -------- | - |  | ------- | ------ | - |  |  | -- | --
|                                               |  | As of and For the Three Months Ended |       
|                                               |  |                                      |       
|                                               |  | September 30,                        |        |   | September 30, |   |        | Percent |  |  | June 30, |   |  | Percent |       
|                                               |  | 2005                                 |        |   | 2004          |   |        | Change  |  |  | 2005     |   |  | Change  |       
|                                               |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |       
|                                               |  | (Dollars in millions)                |       
|Production and Pipeline by Purpose:            |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |        |   |  |  |    |   
|Mortgage loan production:                      |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |        |   |  |  |    |   
|Purchase transactions                          |  | $                                    | 7,425  |   |               | $ | 4,568  |         |  |  | 63       | % |  | $       | 6,370  |   |  |  | 17 | % 
|Cash-out refinance transactions                |  |                                      | 7,790  |   |               |   | 4,366  |         |  |  | 78       | % |  |         | 6,336  |   |  |  | 23 | % 
|Rate/term refinance transactions               |  |                                      | 1,735  |   |               |   | 1,407  |         |  |  | 23       | % |  |         | 1,493  |   |  |  | 16 | % 
|                                               |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |       
|Total mortgage loan production                 |  | $                                    | 16,950 |   |               | $ | 10,341 |         |  |  | 64       | % |  | $       | 14,199 |   |  |  | 19 | % 
|                                               |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |       
|% purchase and cash-out refinance transactions |  |                                      | 90     | % |               |   | 86     | %       |  |  |          |   |  |         | 89     | % |  |  |    |   
|Mortgage industry market share                 |  |                                      | 2.19   | % |               |   | 1.60   | %       |  |  | 37       | % |  |         | 1.84   | % |  |  | 19 | % 
|Mortgage pipeline:                             |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |        |   |  |  |    |   
|Purchase transactions                          |  | $                                    | 3,654  |   |               | $ | 2,808  |         |  |  | 30       | % |  | $       | 3,681  |   |  |  | (1 | )%
|Cash-out refinance transactions                |  |                                      | 3,945  |   |               |   | 2,446  |         |  |  | 61       | % |  |         | 3,457  |   |  |  | 14 | % 
|Rate/term refinance transactions               |  |                                      | 1,346  |   |               |   | 1,179  |         |  |  | 14       | % |  |         | 1,156  |   |  |  | 16 | % 
|                                               |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |       
|Mortgage pipeline at period end                |  | $                                    | 8,945  |   |               | $ | 6,433  |         |  |  | 39       | % |  | $       | 8,294  |   |  |  | 8  | % 
|                                               |  |                                      |        |   |               |   |        |         |  |  |          |   |  |         |       
|% purchase and cash-out refinance transactions |  |                                      | 85     | % |               |   | 82     | %       |  |  |          |   |  |         | 86     | % |  |  |    |   

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|                                                                         |                           |                    |     |    |               |  |     |          |   |  |     |    |  
|------------------------------------------------------------------------ | ------------------------- | ------------------ | --- | -- | ------------- |  | --- | -------- | - |  | --- | -- | -
|                                                                         |                           | Three Months Ended |    
|                                                                         |                           |                    |    
|                                                                         |                           | September 30,      |     |    | September 30, |  |     | June 30, |  
|                                                                         |                           | 2005               |     |    | 2004          |  |     | 2005     |  
|                                                                         |                           |                    |     |    |               |  |     |          |  
|Production by Amortization Type as a Percent of Mortgage
    Production: |                           |                    |     |    |               |  |     |          |   |  |     |   
|                                                                         | Fixed Rate Mortgages      |                    |     | 30 | %             |  |     | 26       | % |  |     | 26 | %
|                                                                         | Option ARMs               |                    |     | 25 | %             |  |     | 26       | % |  |     | 32 | %
|                                                                         | Hybrid ARMs               |                    |     | 20 | %             |  |     | 26       | % |  |     | 19 | %
|                                                                         | Hybrid ARMs Interest Only |                    |     | 25 | %             |  |     | 22       | % |  |     | 23 | %
|                                                                         |                           |                    |     |    |               |  |     |          |  
|                                                                         |                           |                    | 100 | %  |               |  | 100 | %        |   |  | 100 | % 
|                                                                         |                           |                    |     |    |               |  |     |          |  

|                                                          |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |        |        |  |        |        |        |  |     |     |    |  
|--------------------------------------------------------- | -------------------- | ---------------------------- | ------ | ------ | --------------------- |  | ----- | ------- | ------ |  | -------- | --- | -- | ------- | ------ | ----- | ------------- |  | -- | ------------- | -- | - | ------- | ------ | ------ |  | ------ | ------ | ------ |  | --- | --- | -- | -
|                                                          |                      | Three Months Ended           |        |        | Nine Months Ended     | 
|                                                          |                      |                              |        |        |                       | 
|                                                          |                      | September 30,                |        |        | September 30,         |  |       | Percent |        |  | June 30, |     |    | Percent |        |       | September 30, |  |    | September 30, |    |   | Percent |       
|                                                          |                      | 2005                         |        |        | 2004                  |  |       | Change  |        |  | 2005     |     |    | Change  |        |       | 2005          |  |    | 2004          |    |   | Change  |       
|                                                          |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |       
|                                                          |                      | (Dollars in millions)        |        |        | (Dollars in millions) | 
|Total Production:                                         |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |        |        |  |        |        |        |  |     |    
|Standard First Mortgage Products:                         |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |        |        |  |        |        |        |  |     |    
|                                                          | Alt-A                |                              | $      | 11,097 |                       |  | $     | 6,679   |        |  |          | 66  | %  |         | $      | 9,679 |               |  |    | 15            | %  |   | $       | 28,335 |        |  | $      | 17,403 |        |  |     | 63  | % 
|                                                          | Jumbo                |                              |        | 523    |                       |  |       | 371     |        |  |          | 41  | %  |         |        | 352   |               |  |    | 49            | %  |   |         | 1,393  |        |  |        | 1,508  |        |  |     | (8  | )%
|                                                          | Agency conforming    |                              |        | 315    |                       |  |       | 360     |        |  |          | (13 | )% |         |        | 241   |               |  |    | 31            | %  |   |         | 843    |        |  |        | 1,498  |        |  |     | (44 | )%
|                                                          | Subprime             |                              |        | 639    |                       |  |       | 613     |        |  |          | 4   | %  |         |        | 452   |               |  |    | 41            | %  |   |         | 1,573  |        |  |        | 1,577  |        |  |     | 0   | % 
|                                                          | Expanded subprime(1) |                              |        | 1,396  |                       |  |       | 361     |        |  |          | 287 | %  |         |        | 1,166 |               |  |    | 20            | %  |   |         | 3,489  |        |  |        | 585    |        |  |     | 496 | % 
|                                                          |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |       
|Total standard first mortgage products (S&P evaluated)(2) |                      |                              | 13,970 |        |                       |  | 8,384 |         |        |  | 67       | %   |    |         | 11,890 |       |               |  | 18 | %             |    |   | 35,633  |        |        |  | 22,571 |        |        |  | 58  | %  
|Specialty Consumer Home Mortgage Products:                |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |        |        |  |        |        |        |  |     |    
|Home equity line of credit/Seconds                        |                      |                              | 1,106  |        |                       |  | 830   |         |        |  | 33       | %   |    |         | 753    |       |               |  | 47 | %             |    |   | 2,482   |        |        |  | 1,608  |        |        |  | 54  | %  
|Reverse mortgages                                         |                      |                              | 835    |        |                       |  | 379   |         |        |  | 120      | %   |    |         | 639    |       |               |  | 31 | %             |    |   | 1,981   |        |        |  | 379    |        |        |  | 423 | %  
|Consumer construction                                     |                      |                              | 1,039  |        |                       |  | 748   |         |        |  | 39       | %   |    |         | 917    |       |               |  | 13 | %             |    |   | 2,655   |        |        |  | 2,111  |        |        |  | 26  | %  
|                                                          |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |       
|                                                          |                      | Subtotal mortgage production |        |        | 16,950                |  |       |         | 10,341 |  |          |     | 64 | %       |        |       | 14,199        |  |    |               | 19 | % |         |        | 42,751 |  |        |        | 26,669 |  |     |     | 60 | %
|Builder construction commitments                          |                      |                              | 539    |        |                       |  | 266   |         |        |  | 103      | %   |    |         | 594    |       |               |  | (9 | )%            |    |   | 1,486   |        |        |  | 812    |        |        |  | 83  | %  
|Warehouse lending                                         |                      |                              | 48     |        |                       |  |      |         |        |  | N/A      |     |    |         | 40     |       |               |  | 20 | %             |    |   | 107     |        |        |  |       |        |        |  | N/A |    
|                                                          |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |       
|                                                          |                      | Total production             |        | $      | 17,537                |  |       | $       | 10,607 |  |          |     | 65 | %       |        | $     | 14,833        |  |    |               | 18 | % |         | $      | 44,344 |  |        | $      | 27,481 |  |     |     | 61 | %
|                                                          |                      |                              |        |        |                       |  |       |         |        |  |          |     |    |         |        |       |               |  |    |               |    |   |         |       

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|                                         |                                    |                       |      |      |               |   |         |                    |   |  |            |         |   |           |        |    |            |  |      |      |   |   |       |    |  
|---------------------------------------- | ---------------------------------- | --------------------- | ---- | ---- | ------------- | - | ------- | ------------------ | - |  | ---------- | ------- | - | --------- | ------ | -- | ---------- |  | ---- | ---- | - | - | ----- | -- | -
|                                         |                                    | Three Months Ended    |     
|                                         |                                    |                       |     
|                                         |                                    | September 30, 2005    |      |      | June 30, 2005 |   |         | September 30, 2004 |  
|                                         |                                    |                       |      |      |               |   |         |                    |  
|                                         |                                    | Average               |      |      |               |   | Average |                    |   |  |            | Average |   |           |       
|                                         |                                    | Lifetime              |      |      | Percent of    |   |         | Lifetime           |   |  | Percent of |         |   | Lifetime  |        |    | Percent of | 
|                                         |                                    | Loss Rate             |      |      | Total         |   |         | Loss Rate          |   |  | Total      |         |   | Loss Rate |        |    | Total      | 
|                                         |                                    |                       |      |      |               |   |         |                    |   |  |            |         |   |           |        |    |            | 
|                                         |                                    | (Dollars in millions) |     
|Volume by S&P Lifetime Loss Estimate(2): |                                    |                       |      |      |               |   |         |                    |   |  |            |         |   |           |        |    |            |  |      |      |   |   |       |   
|Agency conforming equivalent (l 45 bps)  |                                    |                       | 0.21 | %    |               |   | 66      | %                  |   |  | 0.21       | %       |   |           | 68     | %  |            |  | 0.20 | %    |   |   | 70    | % 
|                                         | Prime Alt-A Equivalent (45-80 bps) |                       |      | 0.58 | %             |   |         | 24                 | % |  |            | 0.58    | % |           |        | 25 | %          |  |      | 0.57 | % |   |       | 20 | %
|                                         | Subprime Equivalent (L80 bps)      |                       |      | 1.95 | %             |   |         | 10                 | % |  |            | 1.69    | % |           |        | 7  | %          |  |      | 1.93 | % |   |       | 10 | %
|                                         |                                    |                       |      |      |               |   |         |                    |   |  |            |         |   |           |        |    |            | 
|Total S& P lifetime loss estimate        |                                    |                       | 0.50 | %    |               |   | 100     | %                  |   |  | 0.43       | %       |   |           | 100    | %  |            |  | 0.49 | %    |   |   | 100   | % 
|                                         |                                    |                       |      |      |               |   |         |                    |   |  |            |         |   |           |        |    |            | 
|Total S&P evaluated production           |                                    |                       |      |      |               | $ | 13,970  |                    |   |  |            |         |   | $         | 11,890 |    |            |  |      |      |   | $ | 8,326 |   
|                                         |                                    |                       |      |      |               |   |         |                    |   |  |            |         |   |           |        |    |            | 






|    |                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Loans in this category are represented by high quality borrowers
    from a credit/FICO perspective but loans have a subprime
    characteristic such as a higher LTV or debt to income ratio.                                                
|   
|(2) | While IndyMac production is evaluated using the S&P Levels
    model, the data is not audited or endorsed by S&P. S&P
    evaluated production excludes second liens, HELOC, reverse
    mortgages, construction loans, and warehouse lending.



|                         |            |               |  |    |               |   |  |          |     |   |  |    |     |  
|------------------------ | ---------- | ------------- |  | -- | ------------- | - |  | -------- | --- | - |  | -- | --- | -
|                         |            | September 30, |  |    | September 30, |   |  | June 30, |    
|                         |            | 2005          |  |    | 2004          |   |  | 2005     |    
|                         |            |               |  |    |               |   |  |          |    
|Geographic distribution: |            |               |  |    |               |   |  |          |     |   |  |   
|                         | California |               |  | 43 | %             |   |  | 46       | %   |   |  | 44 | %  
|                         | Florida    |               |  | 8  | %             |   |  | 6        | %   |   |  | 7  | %  
|                         | New York   |               |  | 6  | %             |   |  | 6        | %   |   |  | 9  | %  
|                         | Virginia   |               |  | 5  | %             |   |  | 3        | %   |   |  | 4  | %  
|                         | New Jersey |               |  | 4  | %             |   |  | 4        | %   |   |  | 4  | %  
|                         | Other      |               |  | 34 | %             |   |  | 35       | %   |   |  | 32 | %  
|                         |            |               |  |    |               |   |  |          |    
|                         |            | Total         |  |    | 100           | % |  |          | 100 | % |  |    | 100 | %
|                         |            |               |  |    |               |   |  |          |    

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|                            |                                                 |                                  |                  |       |                   |        |   |         |        |        |          |     |     |         |   |       |               |        |  |               |    |    |         |        |        |        |   |        |        |        |  |     |    |    |  
|--------------------------- | ----------------------------------------------- | -------------------------------- | ---------------- | ----- | ----------------- | ------ | - | ------- | ------ | ------ | -------- | --- | --- | ------- | - | ----- | ------------- | ------ |  | ------------- | -- | -- | ------- | ------ | ------ | ------ | - | ------ | ------ | ------ |  | --- | -- | -- | -
|                            |                                                 | Three Months Ended               |                  |       | Nine Months Ended |       
|                            |                                                 |                                  |                  |       |                   |       
|                            |                                                 | September 30,                    |                  |       | September 30,     |        |   | Percent |        |        | June 30, |     |     | Percent |   |       | September 30, |        |  | September 30, |    |    | Percent |       
|Volume by Divisions:        |                                                 | 2005                             |                  |       | 2004              |        |   | Change  |        |        | 2005     |     |     | Change  |   |       | 2005          |        |  | 2004          |    |    | Change  |       
|                            |                                                 |                                  |                  |       |                   |        |   |         |        |        |          |     |     |         |   |       |               |        |  |               |    |    |         |       
|                            |                                                 | (Dollars in millions)            |                 
|Mortgage Loan Production:   |                                                 |                                  |                  |       |                   |        |   |         |        |        |          |     |     |         |   |       |               |        |  |               |    |    |         |        |        |        |   |        |        |        |  |    
|                            | Mortgage Professionals, wholesale/correspondent |                                  | $                | 9,401 |                   |        | $ | 5,864   |        |        |          | 60  | %   |         | $ | 8,612 |               |        |  | 9             | %  |    | $       | 24,922 |        |        | $ | 15,110 |        |        |  | 65  | % 
|                            | Mortgage Professionals, Conduit                 |                                  |                  | 4,718 |                   |        |   | 2,155   |        |        |          | 119 | %   |         |   | 3,207 |               |        |  | 47            | %  |    |         | 10,530 |        |        |   | 5,117  |        |        |  | 106 | % 
|                            | Consumer Direct and Indirect                    |                                  |                  | 792   |                   |        |   | 858     |        |        |          | (8  | )%  |         |   | 738   |               |        |  | 7             | %  |    |         | 2,216  |        |        |   | 3,163  |        |        |  | (30 | )%
|                            | Financial Freedom                               |                                  |                  | 835   |                   |        |   | 379     |        |        |          | 120 | %   |         |   | 639   |               |        |  | 31            | %  |    |         | 1,981  |        |        |   | 379    |        |        |  | 423 | % 
|                            | Servicing Retention                             |                                  |                  | 330   |                   |        |   | 416     |        |        |          | (21 | )%  |         |   | 174   |               |        |  | 90            | %  |    |         | 726    |        |        |   | 1,116  |        |        |  | (35 | )%
|                            | HELOC                                           |                                  |                  | 58    |                   |        |   | 71      |        |        |          | (18 | )%  |         |   | 56    |               |        |  | 4             | %  |    |         | 156    |        |        |   | 150    |        |        |  | 4   | % 
|                            | Consumer Construction and Lot                   |                                  |                  | 816   |                   |        |   | 598     |        |        |          | 36  | %   |         |   | 773   |               |        |  | 6             | %  |    |         | 2,220  |        |        |   | 1,633  |        |        |  | 36  | % 
|                            |                                                 |                                  |                  |       |                   |        |   |         |        |        |          |     |     |         |   |       |               |        |  |               |    |    |         |       
|                            |                                                 | Total Mortgage Loan Production   |                  |       | 16,950            |        |   |         | 10,341 |        |          |     | 64  | %       |   |       | 14,199        |        |  |               | 19 | %  |         |        | 42,751 |        |   |        | 26,668 |        |  |     | 60 | % 
|Commercial Loan Production: |                                                 |                                  |                  |       |                   |        |   |         |        |        |          |     |     |         |   |       |               |        |  |               |    |    |         |        |        |        |   |        |        |        |  |    
|                            | Builder Construction                            |                                  |                  | 539   |                   |        |   | 266     |        |        |          | 103 | %   |         |   | 594   |               |        |  | (9            | )% |    |         | 1,486  |        |        |   | 812    |        |        |  | 83  | % 
|                            | Warehouse Lending                               |                                  |                  | 48    |                   |        |   | N/A     |        |        |          | N/A |     |         |   | 40    |               |        |  | 20            | %  |    |         | 107    |        |        |   | N/A    |        |        |  | N/A |   
|                            |                                                 |                                  |                  |       |                   |        |   |         |        |        |          |     |     |         |   |       |               |        |  |               |    |    |         |       
|                            |                                                 | Total Commercial Loan Production |                  |       | 587               |        |   |         | 266    |        |          |     | 121 | %       |   |       | 634           |        |  |               | (7 | )% |         |        | 1,593  |        |   |        | 812    |        |  |     | 96 | % 
|                            |                                                 |                                  |                  |       |                   |        |   |         |        |        |          |     |     |         |   |       |               |        |  |               |    |    |         |       
|                            |                                                 |                                  | Total Production |       | $                 | 17,537 |   |         | $      | 10,607 |          |     |     | 65      | % |       | $             | 14,833 |  |               |    | 18 | %       |        | $      | 44,344 |   |        | $      | 27,480 |  |     |    | 61 | %
|                            |                                                 |                                  |                  |       |                   |        |   |         |        |        |          |     |     |         |   |       |               |        |  |               |    |    |         |       



|                                       |  |                       |       |  |               |  |       |         |  |  |          |   |  |         |       |  |  |  |    |  
|-------------------------------------- |  | --------------------- | ----- |  | ------------- |  | ----- | ------- |  |  | -------- | - |  | ------- | ----- |  |  |  | -- | -
|                                       |  | Three Months Ended    |      
|                                       |  |                       |      
|                                       |  | September 30,         |       |  | September 30, |  |       | Percent |  |  | June 30, |   |  | Percent |      
|                                       |  | 2005                  |       |  | 2004          |  |       | Change  |  |  | 2005     |   |  | Change  |      
|                                       |  |                       |       |  |               |  |       |         |  |  |          |   |  |         |      
|                                       |  | (Dollars in millions) |      
|Key Production Drivers:                |  |                       |       |  |               |  |       |         |  |  |          |   |  |         |       |  |  |  |    |  
|Active customers during the quarter(1) |  |                       | 6,473 |  |               |  | 4,760 |         |  |  | 36       | % |  |         | 6,191 |  |  |  | 5  | %
|Sales personnel                        |  |                       | 692   |  |               |  | 551   |         |  |  | 26       | % |  |         | 678   |  |  |  | 2  | %
|Number of regional offices             |  |                       | 11    |  |               |  | 8     |         |  |  | 38       | % |  |         | 10    |  |  |  | 10 | %






|    |                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------
|(1) | Active customers are defined as customers who funded at least
    one loan during the most recent 90-day period.

23



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##### Table of Contents






LOAN SALES




|                                           |                   |                        |            |         |                        |   |           |         |  |  |               |    |         |        |            |               |      |  |               |         |    |         |            |         |  |   |            |         |  |  |     |    |  
|------------------------------------------ | ----------------- | ---------------------- | ---------- | ------- | ---------------------- | - | --------- | ------- |  |  | ------------- | -- | ------- | ------ | ---------- | ------------- | ---- |  | ------------- | ------- | -- | ------- | ---------- | ------- |  | - | ---------- | ------- |  |  | --- | -- | -
|                                           |                   | Three Months Ended     |            |         | Nine Months Ended      |  
|                                           |                   |                        |            |         |                        |  
|                                           |                   | September 30,          |            |         | September 30,          |   |           | Percent |  |  |               |    | Percent |        |            | September 30, |      |  | September 30, |         |    | Percent |           
|                                           |                   | 2005                   |            |         | 2004(1)                |   |           | Change  |  |  | June 30, 2005 |    |         | Change |            |               | 2005 |  |               | 2004(1) |    |         | Change     |        
|                                           |                   |                        |            |         |                        |   |           |         |  |  |               |    |         |        |            |               |      |  |               |         |    |         |            |        
|                                           |                   | (Dollars in thousands) |            |         | (Dollars in thousands) |  
|Total loans sold                           |                   | $                      | 15,539,209 |         |                        | $ | 8,940,648 |         |  |  | 74            | %  |         | $      | 11,534,100 |               |      |  | 35            | %       |    | $       | 36,727,060 |         |  | $ | 21,485,818 |         |  |  | 71  | % 
|Gross gain on mortgage loan sales          |                   |                        | 111,464    |         |                        |   | 167,862   |         |  |  | (34           | )% |         |        | 204,304    |               |      |  | (45           | )%      |    |         | 433,263    |         |  |   | 348,870    |         |  |  | 24  | % 
|Hedging gains (losses)                     |                   |                        | 39,622     |         |                        |   | (58,706   | )       |  |  | 167           | %  |         |        | (44,927    | )             |      |  | 188           | %       |    |         | 21,522     |         |  |   | (37,739    | )       |  |  | 157 | % 
|                                           |                   |                        |            |         |                        |   |           |         |  |  |               |    |         |        |            |               |      |  |               |         |    |         |            |        
|                                           | Net gains on sale |                        |            | 151,086 |                        |   |           | 109,156 |  |  |               | 38 | %       |        |            | 159,377       |      |  |               | (5      | )% |         |            | 454,785 |  |   |            | 311,131 |  |  |     | 46 | %
|Net interest income on loans held for sale |                   |                        | 39,562     |         |                        |   | 40,772    |         |  |  | (3            | )% |         |        | 29,664     |               |      |  | 33            | %       |    |         | 101,436    |         |  |   | 132,499    |         |  |  | (23 | )%
|                                           |                   |                        |            |         |                        |   |           |         |  |  |               |    |         |        |            |               |      |  |               |         |    |         |            |        
|Total mortgage banking revenue             |                   | $                      | 190,648    |         |                        | $ | 149,928   |         |  |  | 27            | %  |         | $      | 189,041    |               |      |  | 1             | %       |    | $       | 556,221    |         |  | $ | 443,630    |         |  |  | 25  | % 
|                                           |                   |                        |            |         |                        |   |           |         |  |  |               |    |         |        |            |               |      |  |               |         |    |         |            |        
|Ratios:                                    |                   |                        |            |         |                        |   |           |         |  |  |               |    |         |        |            |               |      |  |               |         |    |         |            |         |  |   |            |         |  |  |     |   
|Gross margin before hedging                |                   |                        | 0.72       | %       |                        |   | 1.88      | %       |  |  | (62           | )% |         |        | 1.77       | %             |      |  | (59           | )%      |    |         | 1.18       | %       |  |   | 1.62       | %       |  |  | (27 | )%
|Net margin after hedging                   |                   |                        | 0.97       | %       |                        |   | 1.22      | %       |  |  | (20           | )% |         |        | 1.38       | %             |      |  | (30           | )%      |    |         | 1.24       | %       |  |   | 1.45       | %       |  |  | (14 | )%
|MBR margin                                 |                   |                        | 1.23       | %       |                        |   | 1.68      | %       |  |  | (27           | )% |         |        | 1.64       | %             |      |  | (25           | )%      |    |         | 1.51       | %       |  |   | 2.06       | %       |  |  | (27 | )%



|                             |                    |                       |      |     |               |  |      |                       |      |   |        |     |      |        |      |      |        |   |     |     |     |  |      |      |      |  
|---------------------------- | ------------------ | --------------------- | ---- | --- | ------------- |  | ---- | --------------------- | ---- | - | ------ | --- | ---- | ------ | ---- | ---- | ------ | - | --- | --- | --- |  | ---- | ---- | ---- | -
|                             |                    | Three Months Ended    |     
|                             |                    |                       |     
|                             |                    | September 30, 2005    |      |     | June 30, 2005 |  |      | September 30, 2004(1) |     
|                             |                    |                       |      |     |               |  |      |                       |     
|                             |                    | Amount                |      |     | MBR           |  |      | Amount                |      |   | MBR    |     |      | Amount |      |      | MBR    |  
|                             |                    | Sold                  |      |     | Margin        |  |      | Sold                  |      |   | Margin |     |      | Sold   |      |      | Margin |  
|                             |                    |                       |      |     |               |  |      |                       |      |   |        |     |      |        |      |      |        |  
|                             |                    | (Dollars in billions) |     
|Conduit loans                |                    | $                     | 4.3  |     |               |  | 0.32 | %                     |      | $ | 2.3    |     |      |        | 0.32 | %    |        | $ | 0.8 |     |     |  | 1.14 | %   
|                             | 12-MAT Option ARMs |                       |      | 3.7 |               |  |      | 1.73                  | %    |   |        | 3.2 |      |        |      | 3.04 | %      |   |     | 3.3 |     |  |      | 1.92 | %   
|                             | Financial Freedom  |                       |      | 0.8 |               |  |      | 2.90                  | %    |   |        | 0.6 |      |        |      | 2.89 | %      |   |     | 0.4 |     |  |      | 2.84 | %   
|                             | All others         |                       |      | 6.8 |               |  |      | 1.34                  | %    |   |        | 5.4 |      |        |      | 1.24 | %      |   |     | 4.4 |     |  |      | 1.50 | %   
|                             |                    |                       |      |     |               |  |      |                       |      |   |        |     |      |        |      |      |        |  
|                             |                    | Total MBR margin      |      | $   | 15.6          |  |      |                       | 1.23 | % |        | $   | 11.5 |        |      |      | 1.64   | % |     | $   | 8.9 |  |      |      | 1.68 | %
|                             |                    |                       |      |     |               |  |      |                       |      |   |        |     |      |        |      |      |        |  
|MBR margin excluding conduit |                    | $                     | 11.3 |     |               |  | 1.57 | %                     |      | $ | 9.2    |     |      |        | 1.98 | %    |        | $ | 8.1 |     |     |  | 1.74 | %   
|                             |                    |                       |      |     |               |  |      |                       |      |   |        |     |      |        |      |      |        |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The gain on mortgage loan sales for the three months ended
    September 30, 2004 excluded the $5.1 million
    SAB No. 105 and $6.0 million purchase accounting
    adjustments related to the Financial Freedom acquisition. The
    GAAP gain on mortgage loan sales was $98.1 million for the
    three months ended September 30, 2004 representing a net
    margin after hedging of 1.10%. For the nine months ended
    September 30, 2004, the gain on mortgage loan sales
    excluded the $57.3 million SAB No. 105 and
    $6.0 million purchase accounting adjustments related to the
    Financial Freedom acquisition. The GAAP gain on mortgage loan
    sales was $247.8 million for the nine months ended
    September 30, 2004 representing a net margin after hedging
    of 1.16%.



24



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##### Table of Contents





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




|                                              |                                    |                       |    |        |                   |  |    |              |   |  |               |        |   |               |    |        |   |  |    |        |  
|--------------------------------------------- | ---------------------------------- | --------------------- | -- | ------ | ----------------- |  | -- | ------------ | - |  | ------------- | ------ | - | ------------- | -- | ------ | - |  | -- | ------ | -
|                                              |                                    | Three Months Ended    |    |        | Nine Months Ended | 
|                                              |                                    |                       |    |        |                   | 
|                                              |                                    | September 30,         |    |        | September 30,     |  |    | June 30,     |   |  | September 30, |        |   | September 30, |   
|                                              |                                    | 2005                  |    |        | 2004              |  |    | 2005         |   |  | 2005          |        |   | 2004          |   
|                                              |                                    | Distribution          |    |        | Distribution      |  |    | Distribution |   |  | Distribution  |        |   | Distribution  |   
|                                              |                                    | Percentages           |    |        | Percentages       |  |    | Percentages  |   |  | Percentages   |        |   | Percentages   |   
|                                              |                                    |                       |    |        |                   |  |    |              |   |  |               |        |   |               |   
|                                              |                                    | (Dollars in millions) |   
|Sales to the Government-Sponsored Enterprises |                                    |                       | 8  | %      |                   |  | 15 | %            |   |  | 9             | %      |   |               | 10 | %      |   |  | 26 | %     
|Private-label securitizations                 |                                    |                       | 60 | %      |                   |  | 67 | %            |   |  | 77            | %      |   |               | 62 | %      |   |  | 48 | %     
|Whole loan sales                              |                                    |                       | 27 | %      |                   |  | 10 | %            |   |  | 11            | %      |   |               | 23 | %      |   |  | 17 | %     
|                                              |                                    |                       |    |        |                   |  |    |              |   |  |               |        |   |               |   
|                                              | Subtotal sales                     |                       |    | 95     | %                 |  |    | 92           | % |  |               | 97     | % |               |    | 95     | % |  |    | 91     | %
|Investment portfolio acquisitions             |                                    |                       | 5  | %      |                   |  | 8  | %            |   |  | 3             | %      |   |               | 5  | %      |   |  | 9  | %     
|                                              |                                    |                       |    |        |                   |  |    |              |   |  |               |        |   |               |   
|                                              | Total loan distribution Percentage |                       |    | 100    | %                 |  |    | 100          | % |  |               | 100    | % |               |    | 100    | % |  |    | 100    | %
|                                              |                                    |                       |    |        |                   |  |    |              |   |  |               |        |   |               |   
|                                              | Total loan distribution            |                       | $  | 16,283 |                   |  | $  | 9,748        |   |  | $             | 11,844 |   |               | $  | 38,698 |   |  | $  | 23,724 |  
|                                              |                                    |                       |    |        |                   |  |    |              |   |  |               |        |   |               |   







25



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##### Table of Contents






MORTGAGE SERVICING AND OTHER RETAINED ASSETS


MORTGAGE SERVICING AND MORTGAGE SERVICING RIGHTS




|                                                |                                           |                       |        |        |                       |   |        |          |  |   |               |        |  |               |         |        |  |   |        |        | 
|----------------------------------------------- | ----------------------------------------- | --------------------- | ------ | ------ | --------------------- | - | ------ | -------- |  | - | ------------- | ------ |  | ------------- | ------- | ------ |  | - | ------ | ------ | 
|                                                |                                           | Servicing Portfolio   |       
|                                                |                                           |                       |       
|                                                |                                           | Three Months Ended    |        |        | Nine Months Ended     |  
|                                                |                                           |                       |        |        |                       |  
|                                                |                                           | September 30,         |        |        | September 30,         |   |        | June 30, |  |   | September 30, |        |  | September 30, |        
|                                                |                                           | 2005                  |        |        | 2004                  |   |        | 2005     |  |   | 2005          |        |  | 2004          |        
|                                                |                                           |                       |        |        |                       |   |        |          |  |   |               |        |  |               |        
|                                                |                                           | (Dollars in millions) |        |        | (Dollars in millions) |  
|Unpaid principal balance at beginning of period |                                           | $                     | 63,676 |        |                       | $ | 34,618 |          |  | $ | 55,995        |        |  | $             | 50,219  |        |  | $ | 30,774 |       
|Additions                                       |                                           |                       | 15,561 |        |                       |   | 13,048 |          |  |   | 11,454        |        |  |               | 36,567  |        |  |   | 24,810 |       
|Clean-up calls exercised                        |                                           |                       | (276   | )      |                       |   | (298   | )        |  |   | (210          | )      |  |               | (755    | )      |  |   | (1,289 | )     
|Loan payments and prepayments                   |                                           |                       | (5,174 | )      |                       |   | (2,867 | )        |  |   | (3,563        | )      |  |               | (12,244 | )      |  |   | (9,794 | )     
|                                                |                                           |                       |        |        |                       |   |        |          |  |   |               |        |  |               |        
|                                                | Unpaid principal balance at end of period |                       | $      | 73,787 |                       |   | $      | 44,501   |  |   | $             | 63,676 |  |               | $       | 73,787 |  |   | $      | 44,501 | 
|                                                |                                           |                       |        |        |                       |   |        |          |  |   |               |        |  |               |        



|                                                                                                |                          |                        |         |         |                   |   |         |          |  |   |               |         |  |               |          |         |  |   |          |         | 
|----------------------------------------------------------------------------------------------- | ------------------------ | ---------------------- | ------- | ------- | ----------------- | - | ------- | -------- |  | - | ------------- | ------- |  | ------------- | -------- | ------- |  | - | -------- | ------- | 
|                                                                                                |                          | Three Months Ended     |         |         | Nine Months Ended |  
|                                                                                                |                          |                        |         |         |                   |  
|                                                                                                |                          | September 30,          |         |         | September 30,     |   |         | June 30, |  |   | September 30, |         |  | September 30, |         
|                                                                                                |                          | 2005                   |         |         | 2004              |   |         | 2005     |  |   | 2005          |         |  | 2004          |         
|                                                                                                |                          |                        |         |         |                   |   |         |          |  |   |               |         |  |               |         
|                                                                                                |                          | (Dollars in thousands) |        
|Balance at beginning of period                                                                  |                          | $                      | 738,844 |         |                   | $ | 493,876 |          |  | $ | 734,238       |         |  | $             | 640,794  |         |  | $ | 443,688  |        
|Additions                                                                                       |                          |                        | 212,768 |         |                   |   | 153,409 |          |  |   | 149,616       |         |  |               | 495,284  |         |  |   | 295,957  |        
|Transfers from (to) prepayment penalty and/or AAA-rated and
    agency interest-only securities |                          |                        |        |         |                   |   |        |          |  |   | (3,364        | )       |  |               | (8,491   | )       |  |   | (13,898  | )      
|Clean-up calls exercised                                                                        |                          |                        | (730    | )       |                   |   | (2,425  | )        |  |   | (471          | )       |  |               | (2,597   | )       |  |   | (14,441  | )      
|Amortization                                                                                    |                          |                        | (60,911 | )       |                   |   | (38,848 | )        |  |   | (52,083       | )       |  |               | (158,786 | )       |  |   | (100,455 | )      
|Valuation/impairment                                                                            |                          |                        | 50,635  |         |                   |   | (54,201 | )        |  |   | (89,092       | )       |  |               | (25,598  | )       |  |   | (59,040  | )      
|                                                                                                |                          |                        |         |         |                   |   |         |          |  |   |               |         |  |               |         
|                                                                                                | Balance at end of period |                        | $       | 940,606 |                   |   | $       | 551,811  |  |   | $             | 738,844 |  |               | $        | 940,606 |  |   | $        | 551,811 | 
|                                                                                                |                          |                        |         |         |                   |   |         |          |  |   |               |         |  |               |         



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


26



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##### Table of Contents





AAA-RATED AND AGENCY INTEREST-ONLY, PREPAYMENT PENALTY


AND RESIDUAL SECURITIES






|                                              |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |   |         |         |   |   |         |         |  
|--------------------------------------------- | ----------------- | ----------------------------------------- | - | ------- | ----------------- | - | - | -------- | ------- | - | ------------- | ------- | ------- | ------------- | - | ------- | ------- | - | - | ------- | ------- | -
|                                              |                   | Three Months Ended                        |   |         | Nine Months Ended |  
|                                              |                   |                                           |   |         |                   |  
|                                              |                   | September 30,                             |   |         | September 30,     |   |   | June 30, |         |   | September 30, |         |         | September 30, |  
|                                              |                   | 2005                                      |   |         | 2004              |   |   | 2005     |         |   | 2005          |         |         | 2004          |  
|                                              |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |  
|                                              |                   | (Dollars in thousands)                    |  
|AAA-rated and agency interest-only securities |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |   |         |         |   |   |        
|                                              | Beginning balance |                                           | $ | 63,052  |                   |   | $ | 155,234  |         |   | $             | 83,080  |         |               | $ | 90,658  |         |   | $ | 146,179 |        
|                                              |                   | Retained investments from securitizations |   |         | 11,558            |   |   |          |        |   |               |         | 4,106   |               |   |         | 15,664  |   |   |         | 38,936  |  
|                                              |                   | Transfer from MSRs                        |   |         |                  |   |   |          | (395    | ) |               |         |        |               |   |         |        |   |   |         | 13,898  |  
|                                              |                   | Sales                                     |   |         |                  |   |   |          |        |   |               |         |        |               |   |         |        |   |   |         | (15,171 | )
|                                              |                   | Clean-up calls exercised                  |   |         |                  |   |   |          | (695    | ) |               |         | (171    | )             |   |         | (171    | ) |   |         | (3,501  | )
|                                              |                   | Cash received, net of accretion           |   |         | (5,469            | ) |   |          | (8,966  | ) |               |         | (5,669  | )             |   |         | (17,352 | ) |   |         | (31,778 | )
|                                              |                   | Valuation gains (losses) before hedges    |   |         | 4,864             |   |   |          | (27,921 | ) |               |         | (18,294 | )             |   |         | (14,794 | ) |   |         | (31,306 | )
|                                              |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |  
|                                              | Ending balance    |                                           | $ | 74,005  |                   |   | $ | 117,257  |         |   | $             | 63,052  |         |               | $ | 74,005  |         |   | $ | 117,257 |        
|                                              |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |  
|Prepayment penalty securities:                |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |   |         |         |   |   |        
|                                              | Beginning balance |                                           | $ | 62,283  |                   |   | $ | 11,565   |         |   | $             | 45,649  |         |               | $ | 33,451  |         |   | $ | 2,096   |        
|                                              |                   | Retained investments from securitizations |   |         | 20,998            |   |   |          | 16,565  |   |               |         | 1,749   |               |   |         | 31,140  |   |   |         | 26,586  |  
|                                              |                   | Transfer from MSRs                        |   |         |                  |   |   |          |        |   |               |         | 3,364   |               |   |         | 8,491   |   |   |         |        |  
|                                              |                   | Clean-up calls exercised                  |   |         |                  |   |   |          | (15     | ) |               |         |        |               |   |         |        |   |   |         | (15     | )
|                                              |                   | Cash received, net of accretion           |   |         | (8,413            | ) |   |          | (1,283  | ) |               |         | (4,162  | )             |   |         | (15,387 | ) |   |         | (2,911  | )
|                                              |                   | Valuation gains                           |   |         | 1,310             |   |   |          | 1,467   |   |               |         | 15,683  |               |   |         | 18,483  |   |   |         | 2,543   |  
|                                              |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |  
|                                              | Ending balance    |                                           | $ | 76,178  |                   |   | $ | 28,299   |         |   | $             | 62,283  |         |               | $ | 76,178  |         |   | $ | 28,299  |        
|                                              |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |  
|Residual securities                           |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |   |         |         |   |   |        
|                                              | Beginning balance |                                           | $ | 145,794 |                   |   | $ | 72,632   |         |   | $             | 131,374 |         |               | $ | 135,386 |         |   | $ | 56,156  |        
|                                              |                   | Retained investments from securitizations |   |         | 17,404            |   |   |          | 37,635  |   |               |         | 18,150  |               |   |         | 35,584  |   |   |         | 65,969  |  
|                                              |                   | Cash received, net of accretion           |   |         | (3,414            | ) |   |          | 153     |   |               |         | (8,948  | )             |   |         | (15,322 | ) |   |         | (14,641 | )
|                                              |                   | Valuation (losses) gains before hedges    |   |         | (5,450            | ) |   |          | 2,701   |   |               |         | 5,218   |               |   |         | (1,314  | ) |   |         | 5,637   |  
|                                              |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |  
|                                              | Ending balance    |                                           | $ | 154,334 |                   |   | $ | 113,121  |         |   | $             | 145,794 |         |               | $ | 154,334 |         |   | $ | 113,121 |        
|                                              |                   |                                           |   |         |                   |   |   |          |         |   |               |         |         |               |  

27



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##### Table of Contents



VALUATION OF MSRS, INTEREST-ONLY, PREPAYMENT PENALTY,


AND RESIDUAL SECURITIES




|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |      |  
|---------------------------------------------- |  | ---------------------- | ------- | ---------- | --------------------- | - | ---------- | ------- |  | ------- | ------------ | - | -------- | ---------- | ---- | -------- | -------- |  | ------- | ---------- |  |  | ---------- | --------- |  | -------- | ---- | - | ------------ |  | ---- | - |  |  | ---- | - |  |  | ---- | -
|                                               |  | 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) |        
|September 30, 2005                             |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |      |  
|MSRs                                           |  | $                      | 940,606 |            |                       | $ | 73,786,515 |         |  |         | 5.98         | % |          |            | 0.37 | %        |          |  | 25.7    | %          |  |  | 3.47       |           |  |          | 22.0 | % |              |  | 20.5 | % |  |  | 10.9 | % |  |  | N/A  |  
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|AAA-rated and agency interest- only securities |  | $                      | 74,005  |            |                       | $ | 7,104,367  |         |  |         | 6.57         | % |          |            | 0.40 | %        |          |  | 28.2    | %          |  |  | 2.60       |           |  |          | 20.0 | % |              |  | 27.4 | % |  |  | 8.8  | % |  |  | N/A  |  
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Prepayment penalty securities                  |  | $                      | 76,178  |            |                       | $ | 12,825,520 |         |  |         | 5.92         | % |          |            | N/A  |          |          |  | 33.5    | %          |  |  | N/A        |           |  |          | 25.2 | % |              |  | 24.6 | % |  |  | 9.5  | % |  |  | N/A  |  
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Prime residual securities                      |  | $                      | 4,694   |            |                       | $ | 1,282,883  |         |  |         | 6.10         | % |          |            | 1.06 | %        |          |  | 57.5    | %          |  |  | 0.35       |           |  |          | 65.6 | % |              |  | 40.6 | % |  |  | 15.0 | % |  |  | 0.08 | %
|Lot loan residual securities                   |  |                        | 33,531  |            |                       | $ | 766,281    |         |  |         | 7.22         | % |          |            | 2.68 | %        |          |  | 35.8    | %          |  |  | 1.63       |           |  |          | 41.5 | % |              |  | 41.6 | % |  |  | 21.5 | % |  |  | 0.34 | %
|HELOC residual securities                      |  |                        | 64,269  |            |                       | $ | 1,412,405  |         |  |         | 7.80         | % |          |            | 2.88 | %        |          |  | 48.3    | %          |  |  | 1.58       |           |  |          | 44.6 | % |              |  | 50.0 | % |  |  | 19.0 | % |  |  | 0.85 | %
|Subprime residual securities                   |  |                        | 51,840  |            |                       | $ | 4,368,788  |         |  |         | 7.37         | % |          |            | 2.72 | %        |          |  | 37.1    | %          |  |  | 0.44       |           |  |          | 36.2 | % |              |  | 26.1 | % |  |  | 24.9 | % |  |  | 2.92 | %
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|Total non-investment grade residual securities |  | $                      | 154,334 |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |      |  
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|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 and 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 |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              |  |      |   |  |  |      |   |  |  |      |  
|                                               |  |                        |         |            |                       |   |            |         |  |         |              |   |          |            |      |          |          |  |         |            |  |  |            |           |  |          |      |   |              | 
|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 and 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 0.04%, 0.16%, 0.63% for
    prime, HELOC and subprime, respectively, at September 30,
    2005. No loss has been incurred on the lot loans as of
    September 30, 2005.

28



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##### Table of Contents











HEDGING INTEREST RATE RISK ON SERVICING-RELATED ASSETS








29



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##### Table of Contents





|                              |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |   |          |        |  |   |          |         |  
|----------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------- | - | ------- | ----------------- |  | - | -------- | ------ | - | ------------- | ------- | ------ | ------------- | - | -------- | ------ |  | - | -------- | ------- | -
|                              |                                                                                                                                              | Three Months Ended                                   |   |         | Nine Months Ended | 
|                              |                                                                                                                                              |                                                      |   |         |                   | 
|                              |                                                                                                                                              | September 30,                                        |   |         | September 30,     |  |   | June 30, |        |   | September 30, |         |        | September 30, |  
|                              |                                                                                                                                              | 2005                                                 |   |         | 2004              |  |   | 2005     |        |   | 2005          |         |        | 2004          |  
|                              |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |  
|                              |                                                                                                                                              | (Dollars in thousands)                               |  
|Service fee (expense) income: |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |   |          |        |  |   |         
|                              | Gross service fee income                                                                                                                     |                                                      | $ | 75,246  |                   |  | $ | 37,686   |        |   | $             | 64,358  |        |               | $ | 194,593  |        |  | $ | 95,645   |        
|                              | Amortization                                                                                                                                 |                                                      |   | (60,912 | )                 |  |   | (38,848  | )      |   |               | (52,083 | )      |               |   | (158,787 | )      |  |   | (100,455 | )      
|                              |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |  
|                              | Service fee (expense) income, net of amortization                                                                                            |                                                      |   | 14,334  |                   |  |   | (1,162   | )      |   |               | 12,275  |        |               |   | 35,806   |        |  |   | (4,810   | )      
|                              | Valuation adjustments on MSRs                                                                                                                |                                                      |   | 50,635  |                   |  |   | (54,201  | )      |   |               | (89,092 | )      |               |   | (25,598  | )      |  |   | (59,040  | )      
|                              | Hedge (loss) gain on MSRs                                                                                                                    |                                                      |   | (54,665 | )                 |  |   | 64,105   |        |   |               | 87,616  |        |               |   | 15,314   |        |  |   | 41,641   |        
|                              |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |  
|                              |                                                                                                                                              | Total service fee (expense) income                   |   | $       | 10,304            |  |   | $        | 8,742  |   |               | $       | 10,799 |               |   | $        | 25,522 |  |   | $        | (22,209 | )
|                              |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |  
|Net loss on securities:       |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |   |          |        |  |   |         
|                              | Realized gain on available for sale securities                                                                                               |                                                      | $ | 673     |                   |  | $ | 2,412    |        |   | $             | 5,731   |        |               | $ | 6,054    |        |  | $ | 3,943    |        
|                              | Impairment on available for sale securities                                                                                                  |                                                      |   | (138    | )                 |  |   | (647     | )      |   |               | (78     | )      |               |   | (553     | )      |  |   | (1,313   | )      
|                              | Unrealized gain on prepayment penalty securities                                                                                             |                                                      |   | 1,310   |                   |  |   | 1,467    |        |   |               | 15,683  |        |               |   | 18,484   |        |  |   | 1,075    |        
|                              | Unrealized loss on AAA- rated and agency interest-only and
    residual securities                                                           |                                                      |   | (518    | )                 |  |   | (25,220  | )      |   |               | (12,826 | )      |               |   | (17,612  | )      |  |   | (24,201  | )      
|                              | Net (loss) gain on trading securities and other instruments used
    to hedge AAA-rated and agency interest-only and residual
    securities |                                                      |   | (599    | )                 |  |   | 12,550   |        |   |               | 7,341   |        |               |   | 5,560    |        |  |   | 2,657    |        
|                              |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |  
|                              |                                                                                                                                              | Total gain (loss) on mortgage-backed securities, net |   | $       | 728               |  |   | $        | (9,438 | ) |               | $       | 15,851 |               |   | $        | 11,933 |  |   | $        | (17,839 | )
|                              |                                                                                                                                              |                                                      |   |         |                   |  |   |          |        |   |               |         |        |               |  




MORTGAGE-BACKED SECURITIES AND LOANS HELD FOR INVESTMENT








30



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|                                                          |                                     |                                                |                                     |                                    |              |           |            |           |           |           |            | 
|--------------------------------------------------------- | ----------------------------------- | ---------------------------------------------- | ----------------------------------- | ---------------------------------- | ------------ | --------- | ---------- | --------- | --------- | --------- | ---------- | 
|                                                          |                                     | September 30,                                  |                                     |                                    | December 31, |          
|                                                          |                                     | 2005                                           |                                     |                                    | 2004         |          
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     | (Dollars in thousands)                         |                                    
|Loans held for investment:                                |                                     |                                                |                                     |                                    |              |           |            |          
|                                                          | SFR mortgage                        |                                                | $                                   | 5,257,247                          |              |           | $          | 4,458,784 |          
|                                                          | Consumer construction               |                                                |                                     | 1,593,297                          |              |           |            | 1,443,450 |          
|                                                          | Builder construction                |                                                |                                     | 840,808                            |              |           |            | 643,116   |          
|                                                          | HELOC                               |                                                |                                     | 34,054                             |              |           |            | 45,932    |          
|                                                          | Land and other mortgage             |                                                |                                     | 218,681                            |              |           |            | 158,471   |          
|                                                          | Revolving warehouse lines of credit |                                                |                                     | 32,631                             |              |           |            |          |          
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                |                                     | Total  loans held for investment  |              |           | 7,976,718  |           |           |           | 6,749,753  | 
|                                                          |                                     |                                                |                                     |                                    |              |          
|Mortgage-backed securities:                               |                                     |                                                |                                     |                                    |              |           |            |          
|                                                          | Trading securities:                 |                                                |                                     |                                    |              |           |            |           |          
|                                                          |                                     | AAA-rated and agency interest-only securities  |                                     |                                    | 74,005       |           |            |           | 90,658    |          
|                                                          |                                     | AAA-rated principal-only securities            |                                     |                                    | 2,351        |           |            |           | 18,599    |          
|                                                          |                                     | Prepayment penalty securities                  |                                     |                                    | 76,178       |           |            |           | 33,451    |          
|                                                          |                                     | Other investment grade securities              |                                     |                                    | 9,359        |           |            |           | 9,219     |          
|                                                          |                                     | Other non-investment grade securities          |                                     |                                    |             |           |            |           | 4,198     |          
|                                                          |                                     | Non-investment grade residual securities       |                                     |                                    | 106,638      |           |            |           | 78,911    |          
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                |                                     | Total trading securities           |              |           | 268,531    |           |           |           | 235,036    | 
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          | Available for sale securities:      |                                                |                                     |                                    |              |           |            |           |          
|                                                          |                                     | AAA-rated non-agency securities                |                                     |                                    | 3,241,329    |           |            |           | 3,166,600 |          
|                                                          |                                     | AAA-rated agency securities                    |                                     |                                    | 45,695       |           |            |           | 14,903    |          
|                                                          |                                     | Other investment grade securities              |                                     |                                    | 84,081       |           |            |           | 137,603   |          
|                                                          |                                     | Other non-investment grade securities          |                                     |                                    | 53,041       |           |            |           | 78,854    |          
|                                                          |                                     | Non-investment grade HELOC residual securities |                                     |                                    | 47,696       |           |            |           | 56,475    |          
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                | Total available for sale securities |                                    |              | 3,471,842 |            |           |           | 3,454,435 |           
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                |                                     | Total  mortgage-backed securities |              |           | 3,740,373  |           |           |           | 3,689,471  | 
|                                                          |                                     |                                                |                                     |                                    |              |          
|                                                          |                                     |                                                |                                     | Total                              |              | $         | 11,717,091 |           |           | $         | 10,439,224 | 
|                                                          |                                     |                                                |                                     |                                    |              |          
|Percentage of securities portfolio rated investment grade |                                     |                                                | 92                                  | %                                  |              |           | 93         | %        
|Percentage of securities portfolio rated AAA              |                                     |                                                | 90                                  | %                                  |              |           | 89         | %        

31



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##### Table of Contents



OTHER INVESTMENT GRADE AND NON-INVESTMENT GRADE SECURITIES






|                                                   |       |                                                             |   |         |            |  |   |           |              |      |            |        |        |            |   |        |        |  |   |        |         | 
|-------------------------------------------------- | ----- | ----------------------------------------------------------- | - | ------- | ---------- |  | - | --------- | ------------ | ---- | ---------- | ------ | ------ | ---------- | - | ------ | ------ |  | - | ------ | ------- | 
|                                                   |       | September 30, 2005                                          |   |         |           
|                                                   |       |                                                             |   |         |           
|                                                   |       |                                                             |   | Premium |            |  |   |           | December 31, |     
|                                                   |       | Current                                                     |   |         | (Discount) |  |   |           |              | 2004 |           
|                                                   |       | Face                                                        |   |         | to Face    |  |   | Amortized |              |      |            |        |        |           
|                                                   |       | Value                                                       |   |         | Value      |  |   | Cost      |              |      | Fair Value |        |        | Fair Value |  
|                                                   |       |                                                             |   |         |            |  |   |           |              |      |            |        |        |            |  
|                                                   |       | (Dollars in thousands)                                      |  
|Other investment grade mortgage-backed securities: |       |                                                             |   |         |            |  |   |           |              |      |            |        |        |            |   |        |        |  |   |       
|                                                   | AA    |                                                             | $ | 22,109  |            |  | $ | 253       |              |      | $          | 22,362 |        |            | $ | 22,112 |        |  | $ | 76,941 |        
|                                                   | A     |                                                             |   | 256     |            |  |   | (19       | )            |      |            | 237    |        |            |   | 245    |        |  |   | 5,087  |        
|                                                   | BBB   |                                                             |   | 32,119  |            |  |   | (1,378    | )            |      |            | 30,741 |        |            |   | 31,299 |        |  |   | 33,764 |        
|                                                   | BBB-  |                                                             |   | 42,761  |            |  |   | (3,389    | )            |      |            | 39,372 |        |            |   | 39,784 |        |  |   | 31,030 |        
|                                                   |       |                                                             |   |         |            |  |   |           |              |      |            |        |        |            |  
|                                                   |       | Total other investment grade mortgage-backed securities     |   | $       | 97,245     |  |   | $         | (4,533       | )    |            | $      | 92,712 |            |   | $      | 93,440 |  |   | $      | 146,822 | 
|                                                   |       |                                                             |   |         |            |  |   |           |              |      |            |        |        |            |  
|Non-investment grade mortgage-backed securities:   |       |                                                             |   |         |            |  |   |           |              |      |            |        |        |            |   |        |        |  |   |       
|                                                   | BB    |                                                             | $ | 36,024  |            |  | $ | (4,406    | )            |      | $          | 31,618 |        |            | $ | 32,501 |        |  | $ | 53,065 |        
|                                                   | BB-   |                                                             |   | 13,524  |            |  |   | (172      | )            |      |            | 13,352 |        |            |   | 13,523 |        |  |   | 13,516 |        
|                                                   | B+    |                                                             |   |        |            |  |   |          |              |      |            |       |        |            |   |       |        |  |   | 101    |        
|                                                   | B     |                                                             |   | 14,215  |            |  |   | (8,402    | )            |      |            | 5,813  |        |            |   | 6,186  |        |  |   | 14,449 |        
|                                                   | Other |                                                             |   | 9,570   |            |  |   | (8,932    | )            |      |            | 638    |        |            |   | 831    |        |  |   | 1,921  |        
|                                                   |       |                                                             |   |         |            |  |   |           |              |      |            |        |        |            |  
|                                                   |       | Total other non-investment grade mortgage-backed securities |   | $       | 73,333     |  |   | $         | (21,912      | )    |            | $      | 51,421 |            |   | $      | 53,041 |  |   | $      | 83,052  | 
|                                                   |       |                                                             |   |         |            |  |   |           |              |      |            |        |        |            |  



32



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##### Table of Contents



SFR MORTGAGE LOANS HELD FOR INVESTMENT








|                                                  |  |                        |           |   |          |   |           |              |  |   |           |  
|------------------------------------------------- |  | ---------------------- | --------- | - | -------- | - | --------- | ------------ |  | - | --------- | -
|                                                  |  | September 30,          |           |   | June 30, |   |           | December 31, | 
|                                                  |  | 2005                   |           |   | 2005     |   |           | 2004         | 
|                                                  |  |                        |           |   |          |   |           |              | 
|                                                  |  | (Dollars in thousands) |          
|SFR mortgage loans held for investment            |  | $                      | 5,257,247 |   |          | $ | 4,989,025 |              |  | $ | 4,458,784 |  
|Average loan size                                 |  | $                      | 312       |   |          | $ | 305       |              |  | $ | 305       |  
|Non-performing loans as a percentage of SFR loans |  |                        | 0.59      | % |          |   | 0.55      | %            |  |   | 0.60      | %
|Estimated average life in years(1)                |  |                        | 2.4       |   |          |   | 2.6       |              |  |   | 2.4       |  
|Estimated average duration in years(2)            |  |                        | 1.4       |   |          |   | 1.3       |              |  |   | 1.5       |  
|Yield                                             |  |                        | 4.80      | % |          |   | 4.63      | %            |  |   | 4.38      | %
|Fixed-rate mortgages                              |  |                        | 6         | % |          |   | 7         | %            |  |   | 9         | %
|Adjustable-rate mortgages                         |  |                        | 33        | % |          |   | 28        | %            |  |   | 18        | %
|Hybrid adjustable-rate mortgages                  |  |                        | 61        | % |          |   | 65        | %            |  |   | 73        | %

|                                            |                     |               |     |    |          |   |     |              |     |   |     |     |     |  
|------------------------------------------- | ------------------- | ------------- | --- | -- | -------- | - | --- | ------------ | --- | - | --- | --- | --- | -
|                                            |                     | September 30, |     |    | June 30, |   |     | December 31, |    
|Additional Information                      |                     | 2005          |     |    | 2005     |   |     | 2004         |    
|                                            |                     |               |     |    |          |   |     |              |    
|Average FICO score(3)                       |                     |               | 717 |    |          |   | 717 |              |     |   | 720 |    
|Original average loan to value ratio        |                     |               | 72  | %  |          |   | 72  | %            |     |   | 71  | %  
|Current average loan to value ratio         |                     |               | 59  | %  |          |   | N/M | (4)          |     |   | N/M | (4)
|Geographic distribution of top five states: |                     |               |     |    |          |   |     |              |     |   |     |    
|                                            | Southern California |               |     | 33 | %        |   |     | 32           | %   |   |     | 31  | %  
|                                            | Northern California |               |     | 21 | %        |   |     | 20           | %   |   |     | 21  | %  
|                                            | Michigan            |               |     | 5  | %        |   |     | 5            | %   |   |     | 6   | %  
|                                            | Florida             |               |     | 5  | %        |   |     | 5            | %   |   |     | 4   | %  
|                                            | New York            |               |     | 4  | %        |   |     | 4            | %   |   |     | 4   | %  
|                                            | Virginia            |               |     | 3  | %        |   |     | 3            | %   |   |     | 3   | %  
|                                            | Other               |               |     | 29 | %        |   |     | 31           | %   |   |     | 31  | %  
|                                            |                     |               |     |    |          |   |     |              |    
|                                            |                     | Total         |     |    | 100      | % |     |              | 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.
|   
|(4) | Not meaningful                                                                                                                                                                                                                                                                                                                                                                                                                   

33



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##### Table of Contents



CONSUMER CONSTRUCTION






|                                       |  |                        |           |   |          |   |           |              |  |   |           |  
|-------------------------------------- |  | ---------------------- | --------- | - | -------- | - | --------- | ------------ |  | - | --------- | -
|                                       |  | As of                  |          
|                                       |  |                        |          
|                                       |  | September 30,          |           |   | June 30, |   |           | December 31, | 
|                                       |  | 2005                   |           |   | 2005     |   |           | 2004         | 
|                                       |  |                        |           |   |          |   |           |              | 
|                                       |  | (Dollars in thousands) |          
|Construction loans                     |  | $                      | 1,593,297 |   |          | $ | 1,493,948 |              |  | $ | 1,443,450 |  
|Lot, land and other mortgage loans     |  | $                      | 102,150   |   |          | $ | 112,735   |              |  | $ | 37,172    |  
|Outstanding commitments                |  | $                      | 2,857,617 |   |          | $ | 2,708,603 |              |  | $ | 2,528,054 |  
|Average loan commitment                |  | $                      | 436       |   |          | $ | 421       |              |  | $ | 410       |  
|Non-performing loans                   |  |                        | 0.48      | % |          |   | 0.55      | %            |  |   | 0.65      | %
|Annualized yield on construction loans |  |                        | 5.52      | % |          |   | 5.56      | %            |  |   | 5.56      | %
|Fixed-rate loans                       |  |                        | 95        | % |          |   | 94        | %            |  |   | 98        | %
|Adjustable-rate loans                  |  |                        | 5         | % |          |   | 6         | %            |  |   | 2         | %

Additional Information


|                                            |                             |               |     |     |          |  |     |              |   |  |     |     |  
|------------------------------------------- | --------------------------- | ------------- | --- | --- | -------- |  | --- | ------------ | - |  | --- | --- | -
|                                            |                             | September 30, |     |     | June 30, |  |     | December 31, |  
|                                            |                             | 2005          |     |     | 2005     |  |     | 2004         |  
|                                            |                             |               |     |     |          |  |     |              |  
|Average loan-to-value ratio(1)              |                             |               | 74  | %   |          |  | 74  | %            |   |  | 74  | %  
|Average FICO score                          |                             |               | 712 |     |          |  | 711 |              |   |  | 707 |    
|Geographic distribution of top five states: |                             |               |     |     |          |  |     |              |   |  |     |    
|                                            | Southern California         |               |     | 29  | %        |  |     | 30           | % |  |     | 29  | %
|                                            | Northern California         |               |     | 18  | %        |  |     | 18           | % |  |     | 17  | %
|                                            | Florida                     |               |     | 7   | %        |  |     | 6            | % |  |     | 5   | %
|                                            | Hawaii                      |               |     | 5   | %        |  |     | 6            | % |  |     | 6   | %
|                                            | New York                    |               |     | 4   | %        |  |     | 4            | % |  |     | 5   | %
|                                            | Washington                  |               |     | 3   | %        |  |     | 3            | % |  |     | 3   | %
|                                            | Other                       |               |     | 34  | %        |  |     | 33           | % |  |     | 35  | %
|                                            |                             |               |     |     |          |  |     |              |  
|                                            | Total Consumer Construction |               |     | 100 | %        |  |     | 100          | % |  |     | 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.

34



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##### Table of Contents



HOME EQUITY DIVISION








|                           |  |                        |           |   |          |   |         |              |  |   |         |  
|-------------------------- |  | ---------------------- | --------- | - | -------- | - | ------- | ------------ |  | - | ------- | -
|                           |  | September 30,          |           |   | June 30, |   |         | December 31, | 
|                           |  | 2005                   |           |   | 2005     |   |         | 2004         | 
|                           |  |                        |           |   |          |   |         |              | 
|                           |  | (Dollars in thousands) |          
|Outstanding balance        |  | $                      | 584,083   |   |          | $ | 461,293 |              |  | $ | 404,342 |  
|Outstanding commitments(1) |  | $                      | 1,081,413 |   |          | $ | 913,845 |              |  | $ | 838,534 |  
|Average spread over prime  |  |                        | 1.58      | % |          |   | 1.31    | %            |  |   | 1.41    | %
|Average FICO score         |  |                        | 728       |   |          |   | 732     |              |  |   | 726     |  
|Average CLTV ratio(2)      |  |                        | 78        | % |          |   | 76      | %            |  |   | 76      | %

Additional Information as of September 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% |       | $                      | 115,780 |              |            | $ | 79 |                |  |  | 2.64%    |       |  |             | 730 |     |  |  | 0.14% |      
|91% to 95%  |       |                        | 64,823  |              |            |   | 73 |                |  |  | 2.27%    |       |  |             | 723 |     |  |  | 0.28% |      
|81% to 90%  |       |                        | 161,632 |              |            |   | 71 |                |  |  | 2.03%    |       |  |             | 712 |     |  |  | 0.24% |      
|71% to 80%  |       |                        | 125,255 |              |            |   | 93 |                |  |  | 0.73%    |       |  |             | 727 |     |  |  | 0.27% |      
|70% or less |       |                        | 116,593 |              |            |   | 88 |                |  |  | 0.43%    |       |  |             | 744 |     |  |  | 0.00% |      
|            |       |                        |         |              |            |   |    |                |  |  |          |       |  |             |    
|            | Total |                        | $       | 584,083      |            |   | $  | 82             |  |  |          | 1.58% |  |             |     | 728 |  |  |       | 0.18% | 
|            |       |                        |         |              |            |   |    |                |  |  |          |       |  |             |    






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

35



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##### Table of Contents



BUILDER CONSTRUCTION








|                                       |  |                        |           |   |          |   |           |              |  |   |           |  
|-------------------------------------- |  | ---------------------- | --------- | - | -------- | - | --------- | ------------ |  | - | --------- | -
|                                       |  | As of                  |          
|                                       |  |                        |          
|                                       |  | September 30,          |           |   | June 30, |   |           | December 31, | 
|                                       |  | 2005                   |           |   | 2005     |   |           | 2004         | 
|                                       |  |                        |           |   |          |   |           |              | 
|                                       |  | (Dollars in thousands) |          
|Construction loans                     |  | $                      | 840,808   |   |          | $ | 752,466   |              |  | $ | 643,116   |  
|Lot, land and other mortgage loans     |  | $                      | 209,802   |   |          | $ | 175,216   |              |  | $ | 154,123   |  
|Outstanding commitments                |  | $                      | 2,097,009 |   |          | $ | 1,839,554 |              |  | $ | 1,461,296 |  
|Average loan commitments(1)            |  | $                      | 10,871    |   |          | $ | 9,185     |              |  | $ | 7,033     |  
|Non-performing loans                   |  |                        | 0.40      | % |          |   | 0.71      | %            |  |   | 1.45      | %
|Annualized yield on construction loans |  |                        | 8.99      | % |          |   | 8.56      | %            |  |   | 7.35      | %

Additional Information


|                                            |                            |               |    |     |          |  |    |              |   |  |    |     |  
|------------------------------------------- | -------------------------- | ------------- | -- | --- | -------- |  | -- | ------------ | - |  | -- | --- | -
|                                            |                            | September 30, |    |     | June 30, |  |    | December 31, |  
|                                            |                            | 2005          |    |     | 2005     |  |    | 2004         |  
|                                            |                            |               |    |     |          |  |    |              |  
|Average loan-to-value ratio(2)              |                            |               | 71 | %   |          |  | 71 | %            |   |  | 70 | %  
|Geographic distribution of top five states: |                            |               |    |     |          |  |    |              |   |  |    |    
|                                            | Southern California        |               |    | 40  | %        |  |    | 41           | % |  |    | 42  | %
|                                            | Northern California        |               |    | 15  | %        |  |    | 15           | % |  |    | 22  | %
|                                            | Illinois                   |               |    | 9   | %        |  |    | 11           | % |  |    | 11  | %
|                                            | Florida                    |               |    | 8   | %        |  |    | 5            | % |  |    | 6   | %
|                                            | Arizona                    |               |    | 5   | %        |  |    | 5            | % |  |    | 1   | %
|                                            | New York                   |               |    | 4   | %        |  |    | 3            | % |  |    | 3   | %
|                                            | Other                      |               |    | 19  | %        |  |    | 20           | % |  |    | 15  | %
|                                            |                            |               |    |     |          |  |    |              |  
|                                            | Total Builder Construction |               |    | 100 | %        |  |    | 100          | % |  |    | 100 | %
|                                            |                            |               |    |     |          |  |    |              |  






|    |                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In calculating the average builder construction loan
    commitments, total commitments of $368.5 million of builder
    spec loans, with average loan commitments of $382 thousand are
    excluded in the calculation at September 30, 2005. As of
    December 31, 2004, builder spec loans had total commitments
    of $223.4 million with average loan commitments of $387
    thousand.
|   
|(2) | The average loan-to-value ratio is based on the estimated
    appraised value of the completed project compared to the
    commitment amount at September 30, 2005.                                                                                                                                                                                                                           



36



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##### Table of Contents






NET INTEREST MARGIN




|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |           |            |  |   |        |         |  |  |      |      |  
|---------------------------------------------------- | ------------------------------------------ | ---------------------- | --------- | ---------- | ------------------ | - | ------- | ------------- |  | ------- | ------- | ---- | - | -------- | --------- | ---------- | ---- | ------- | ------- | ------- |  |  | -------- | ---- | - | ---- | --------- | ---------- |  | - | ------ | ------- |  |  | ---- | ---- | -
|                                                     |                                            | Three Months Ended     |          
|                                                     |                                            |                        |          
|                                                     |                                            | September 30, 2005     |           |            | September 30, 2004 |   |         | June 30, 2005 | 
|                                                     |                                            |                        |           |            |                    |   |         |               | 
|                                                     |                                            | Average                |           |            |                    |   | Yield/  |               |  | Average |         |      |   |          | Yield/    |            |      | Average |         |         |  |  | Yield/   |     
|                                                     |                                            | Balance                |           |            | Interest           |   |         | Rate          |  |         | Balance |      |   | Interest |           |            | Rate |         |         | Balance |  |  | Interest |      |   | Rate |          
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     |                                            | (Dollars in thousands) |          
|Securities                                           |                                            | $                      | 3,589,084 |            |                    | $ | 52,624  |               |  |         | 5.82    | %    |   | $        | 3,042,119 |            |      | $       | 36,129  |         |  |  | 4.72     | %    |   | $    | 3,563,192 |            |  | $ | 47,701 |         |  |  | 5.37 | %   
|Loans held for sale                                  |                                            |                        | 9,065,447 |            |                    |   | 125,969 |               |  |         | 5.51    | %    |   |          | 5,608,086 |            |      |         | 72,927  |         |  |  | 5.17     | %    |   |      | 6,844,766 |            |  |   | 87,756 |         |  |  | 5.14 | %   
|Mortgage loans held for investment                   |                                            |                        | 5,392,079 |            |                    |   | 65,173  |               |  |         | 4.80    | %    |   |          | 5,014,168 |            |      |         | 54,537  |         |  |  | 4.33     | %    |   |      | 5,312,122 |            |  |   | 61,339 |         |  |  | 4.63 | %   
|Builder construction and income property             |                                            |                        | 797,853   |            |                    |   | 18,086  |               |  |         | 8.99    | %    |   |          | 555,422   |            |      |         | 9,226   |         |  |  | 6.61     | %    |   |      | 727,731   |            |  |   | 15,535 |         |  |  | 8.56 | %   
|Consumer construction                                |                                            |                        | 1,468,487 |            |                    |   | 20,440  |               |  |         | 5.52    | %    |   |          | 1,284,467 |            |      |         | 18,203  |         |  |  | 5.64     | %    |   |      | 1,398,654 |            |  |   | 19,372 |         |  |  | 5.56 | %   
|Investment in Federal Home Loan Bank stock and other |                                            |                        | 808,590   |            |                    |   | 8,098   |               |  |         | 3.97    | %    |   |          | 357,996   |            |      |         | 3,981   |         |  |  | 4.42     | %    |   |      | 714,107   |            |  |   | 7,043  |         |  |  | 3.96 | %   
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total interest-earning assets              |                        |           | 21,121,540 |                    |   |         | 290,390       |  |         |         | 5.45 | % |          |           | 15,862,258 |      |         |         | 195,003 |  |  |          | 4.89 | % |      |           | 18,560,572 |  |   |        | 238,746 |  |  |      | 5.16 | %
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Other                                                |                                            |                        | 1,723,374 |            |                    |   |         |               |  |         |         |      |   |          | 1,437,673 |            |      |         |         |         |  |  |          |      |   |      | 1,458,128 |            |  |   |        |         |  |  |      |     
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total assets                               |                        | $         | 22,844,914 |                    |   |         |               |  |         |         |      |   |          | $         | 17,299,931 |      |         |         |         |  |  |          |      |   |      | $         | 20,018,700 |  |   |        |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Interest-bearing deposits                            |                                            | $                      | 6,108,016 |            |                    |   | 52,261  |               |  |         | 3.39    | %    |   | $        | 4,388,651 |            |      |         | 26,527  |         |  |  | 2.40     | %    |   | $    | 5,693,146 |            |  |   | 44,326 |         |  |  | 3.12 | %   
|Advances from Federal Home Loan Bank                 |                                            |                        | 9,061,905 |            |                    |   | 76,907  |               |  |         | 3.37    | %    |   |          | 5,922,663 |            |      |         | 37,660  |         |  |  | 2.53     | %    |   |      | 8,216,382 |            |  |   | 64,091 |         |  |  | 3.13 | %   
|Other borrowings                                     |                                            |                        | 4,806,036 |            |                    |   | 49,796  |               |  |         | 4.11    | %    |   |          | 4,769,125 |            |      |         | 30,226  |         |  |  | 2.52     | %    |   |      | 3,594,250 |            |  |   | 33,924 |         |  |  | 3.79 | %   
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total interest-bearing liabilities         |                        |           | 19,975,957 |                    |   |         | 178,964       |  |         |         | 3.55 | % |          |           | 15,080,439 |      |         |         | 94,413  |  |  |          | 2.49 | % |      |           | 17,503,778 |  |   |        | 142,341 |  |  |      | 3.26 | %
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Other                                                |                                            |                        | 1,469,993 |            |                    |   |         |               |  |         |         |      |   |          | 1,006,430 |            |      |         |         |         |  |  |          |      |   |      | 1,194,235 |            |  |   |        |         |  |  |      |     
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total liabilities                          |                        |           | 21,445,950 |                    |   |         |               |  |         |         |      |   |          |           | 16,086,869 |      |         |         |         |  |  |          |      |   |      |           | 18,698,013 |  |   |        |         |  |  |      |      |  
|                                                     | Shareholders equity                       |                        |           | 1,398,964  |                    |   |         |               |  |         |         |      |   |          |           | 1,213,062  |      |         |         |         |  |  |          |      |   |      |           | 1,320,687  |  |   |        |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|                                                     | Total liabilities and shareholders equity |                        | $         | 22,844,914 |                    |   |         |               |  |         |         |      |   |          | $         | 17,299,931 |      |         |         |         |  |  |          |      |   |      | $         | 20,018,700 |  |   |        |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Net interest income                                  |                                            |                        |           |            |                    | $ | 111,426 |               |  |         |         |      |   |          |           |            |      | $       | 100,590 |         |  |  |          |      |   |      |           |            |  | $ | 96,405 |         |  |  |      |     
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Net interest spread                                  |                                            |                        |           |            |                    |   |         |               |  |         | 1.90    | %    |   |          |           |            |      |         |         |         |  |  | 2.40     | %    |   |      |           |            |  |   |        |         |  |  | 1.90 | %   
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          
|Net interest margin                                  |                                            |                        |           |            |                    |   |         |               |  |         | 2.09    | %    |   |          |           |            |      |         |         |         |  |  | 2.52     | %    |   |      |           |            |  |   |        |         |  |  | 2.08 | %   
|                                                     |                                            |                        |           |            |                    |   |         |               |  |         |         |      |   |          |           |            |      |         |         |         |  |  |          |      |   |      |          



37



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|                         |               |                       |        |        |                    |   |    |               |  |  |         |      |   |          |        |        |          |   |    |         |  |  |          |      |   |          |        |        |  |   |    |    |  |  |      |      |  
|------------------------ | ------------- | --------------------- | ------ | ------ | ------------------ | - | -- | ------------- |  |  | ------- | ---- | - | -------- | ------ | ------ | -------- | - | -- | ------- |  |  | -------- | ---- | - | -------- | ------ | ------ |  | - | -- | -- |  |  | ---- | ---- | -
|                         |               | Three Months Ended    |       
|                         |               |                       |       
|                         |               | September 30, 2005    |        |        | September 30, 2004 |   |    | June 30, 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 |               | $                     | 12,835 |        |                    | $ | 63 |               |  |  | 1.96    | %    |   | $        | 10,685 |        |          | $ | 55 |         |  |  | 2.03     | %    |   | $        | 12,315 |        |  | $ | 59 |    |  |  | 1.93 | %   
|Mortgage banking segment |               |                       | 8,287  |        |                    |   | 48 |               |  |  | 2.30    | %    |   |          | 5,177  |        |          |   | 46 |         |  |  | 3.55     | %    |   |          | 6,246  |        |  |   | 37 |    |  |  | 2.38 | %   
|                         |               |                       |        |        |                    |   |    |               |  |  |         |      |   |          |        |        |          |   |    |         |  |  |          |      |   |          |       
|                         | Total Company |                       | $      | 21,122 |                    |   | $  | 111           |  |  |         | 2.09 | % |          | $      | 15,862 |          |   | $  | 101     |  |  |          | 2.52 | % |          | $      | 18,561 |  |   | $  | 96 |  |  |      | 2.08 | %
|                         |               |                       |        |        |                    |   |    |               |  |  |         |      |   |          |        |        |          |   |    |         |  |  |          |      |   |          |       

|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |   |         |         |  |  |      |      |  
|---------------------------------------------------- | ------------------------------------------ | ---------------------- | --------- | ---------- | ------------------ | - | ------- | ------- |  | ------- | ------- | ---- | - | -------- | --------- | ---------- | ---- | - | ------- | ------- |  |  | ---- | ---- | -
|                                                     |                                            | Nine Months Ended      |          
|                                                     |                                            |                        |          
|                                                     |                                            | September 30, 2005     |           |            | September 30, 2004 |  
|                                                     |                                            |                        |           |            |                    |  
|                                                     |                                            | Average                |           |            |                    |   | Yield   |         |  | Average |         |      |   |          | Yield     |           
|                                                     |                                            | Balance                |           |            | Interest           |   |         | Rate    |  |         | Balance |      |   | Interest |           |            | Rate |  
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     |                                            | (Dollars in thousands) |          
|Securities                                           |                                            | $                      | 3,603,369 |            |                    | $ | 151,649 |         |  |         | 5.63    | %    |   | $        | 2,674,920 |            |      | $ | 97,349  |         |  |  | 4.86 | %   
|Loans held for sale                                  |                                            |                        | 7,319,273 |            |                    |   | 293,108 |         |  |         | 5.35    | %    |   |          | 4,859,847 |            |      |   | 197,068 |         |  |  | 5.42 | %   
|Mortgage loans held for investment                   |                                            |                        | 5,198,156 |            |                    |   | 182,732 |         |  |         | 4.70    | %    |   |          | 5,348,991 |            |      |   | 169,405 |         |  |  | 4.23 | %   
|Builder construction and income property             |                                            |                        | 727,197   |            |                    |   | 46,614  |         |  |         | 8.57    | %    |   |          | 536,229   |            |      |   | 26,086  |         |  |  | 6.50 | %   
|Consumer construction                                |                                            |                        | 1,412,820 |            |                    |   | 59,097  |         |  |         | 5.59    | %    |   |          | 1,211,120 |            |      |   | 51,200  |         |  |  | 5.65 | %   
|Investment in Federal Home Loan Bank stock and other |                                            |                        | 727,884   |            |                    |   | 19,534  |         |  |         | 3.59    | %    |   |          | 335,849   |            |      |   | 10,762  |         |  |  | 4.28 | %   
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total interest-earning assets              |                        |           | 18,988,699 |                    |   |         | 752,734 |  |         |         | 5.30 | % |          |           | 14,966,956 |      |   |         | 551,870 |  |  |      | 4.93 | %
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|Other                                                |                                            |                        | 1,488,570 |            |                    |   |         |         |  |         |         |      |   |          | 1,311,306 |            |      |   |         |         |  |  |      |     
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total assets                               |                        | $         | 20,477,269 |                    |   |         |         |  |         |         |      |   |          | $         | 16,278,262 |      |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|Interest-bearing deposits                            |                                            | $                      | 5,686,527 |            |                    |   | 132,479 |         |  |         | 3.11    | %    |   | $        | 4,101,224 |            |      |   | 72,706  |         |  |  | 2.37 | %   
|Advances from Federal Home Loan Bank                 |                                            |                        | 8,192,796 |            |                    |   | 193,711 |         |  |         | 3.16    | %    |   |          | 5,635,089 |            |      |   | 102,499 |         |  |  | 2.43 | %   
|Other borrowings                                     |                                            |                        | 4,011,769 |            |                    |   | 114,293 |         |  |         | 3.81    | %    |   |          | 4,367,349 |            |      |   | 75,164  |         |  |  | 2.30 | %   
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total interest-bearing liabilities         |                        |           | 17,891,092 |                    |   |         | 440,483 |  |         |         | 3.29 | % |          |           | 14,103,662 |      |   |         | 250,369 |  |  |      | 2.37 | %
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|Other                                                |                                            |                        | 1,261,778 |            |                    |   |         |         |  |         |         |      |   |          | 1,046,709 |            |      |   |         |         |  |  |      |     
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total liabilities                          |                        |           | 19,152,870 |                    |   |         |         |  |         |         |      |   |          |           | 15,150,371 |      |   |         |         |  |  |      |      |  
|                                                     | Stockholders equity                       |                        |           | 1,324,399  |                    |   |         |         |  |         |         |      |   |          |           | 1,127,891  |      |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|                                                     | Total liabilities and stockholders equity |                        | $         | 20,477,269 |                    |   |         |         |  |         |         |      |   |          | $         | 16,278,262 |      |   |         |         |  |  |      |      |  
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|Net interest income                                  |                                            |                        |           |            |                    | $ | 312,251 |         |  |         |         |      |   |          |           |            |      | $ | 301,501 |         |  |  |      |     
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|Net interest spread                                  |                                            |                        |           |            |                    |   |         |         |  |         | 2.01    | %    |   |          |           |            |      |   |         |         |  |  | 2.56 | %   
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  
|Net interest margin                                  |                                            |                        |           |            |                    |   |         |         |  |         | 2.20    | %    |   |          |           |            |      |   |         |         |  |  | 2.69 | %   
|                                                     |                                            |                        |           |            |                    |   |         |         |  |         |         |      |   |          |           |            |      |  

38



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##### Table of Contents





|                         |               |                       |        |        |                    |   |     |          |  |  |         |      |   |          |        |        |          |   |     |     |  |  |      |      |  
|------------------------ | ------------- | --------------------- | ------ | ------ | ------------------ | - | --- | -------- |  |  | ------- | ---- | - | -------- | ------ | ------ | -------- | - | --- | --- |  |  | ---- | ---- | -
|                         |               | Nine Months Ended     |       
|                         |               |                       |       
|                         |               | September 30, 2005    |        |        | September 30, 2004 |  
|                         |               |                       |        |        |                    |  
|                         |               | Average               |        |        | Net                |   |     | Net      |  |  | Average |      |   | Net      |        |        | Net      |  
|                         |               | Earning               |        |        | Interest           |   |     | Interest |  |  | Earning |      |   | Interest |        |        | Interest |  
|                         |               | Assets                |        |        | Income             |   |     | Margin   |  |  | Assets  |      |   | Income   |        |        | Margin   |  
|                         |               |                       |        |        |                    |   |     |          |  |  |         |      |   |          |        |        |          |  
|                         |               | (Dollars in millions) |       
|By Segment:              |               |                       |        |        |                    |   |     |          |  |  |         |      |   |          |        |        |          |   |     |     |  |  |      |     
|Thrift segment and other |               | $                     | 12,252 |        |                    | $ | 186 |          |  |  | 2.03    | %    |   | $        | 10,240 |        |          | $ | 155 |     |  |  | 2.02 | %   
|Mortgage banking segment |               |                       | 6,737  |        |                    |   | 126 |          |  |  | 2.50    | %    |   |          | 4,727  |        |          |   | 147 |     |  |  | 4.14 | %   
|                         |               |                       |        |        |                    |   |     |          |  |  |         |      |   |          |        |        |          |  
|                         | Total Company |                       | $      | 18,989 |                    |   | $   | 312      |  |  |         | 2.20 | % |          | $      | 14,967 |          |   | $   | 302 |  |  |      | 2.69 | %
|                         |               |                       |        |        |                    |   |     |          |  |  |         |      |   |          |        |        |          |  





| |   |                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------
| |  | 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 September 30, |                    
|                  |                                                      | 2005 vs. 2004                    |                    
|                  |                                                      |                                  |                    
|                  |                                                      | Increase/(Decrease) Due to       |                    
|                  |                                                      |                                  |                    
|                  |                                                      | Volume                           |                     |        | Rate   |        |   | Mix    |        |         | Total Change |      
|                  |                                                      |                                  |                     |        |        |        |   |        |        |         |              |      
|                  |                                                      | (Dollars in thousands)           |                    
|Interest income:  |                                                      |                                  |                     |        |        |        |   |        |        |         |              |       |        |        |   |       
|                  | Securities                                           |                                  | $                   | 6,613  |        |        | $ | 8,376  |        |         | $            | 1,506 |        |        | $ | 16,495 |       
|                  | Loans held for sale                                  |                                  |                     | 45,282 |        |        |   | 4,800  |        |         |              | 2,960 |        |        |   | 53,042 |       
|                  | Mortgage loans held for investment                   |                                  |                     | 4,270  |        |        |   | 5,919  |        |         |              | 447   |        |        |   | 10,636 |       
|                  | Builder construction and income property             |                                  |                     | 4,063  |        |        |   | 3,339  |        |         |              | 1,458 |        |        |   | 8,860  |       
|                  | Consumer construction                                |                                  |                     | 2,665  |        |        |   | (373   | )      |         |              | (55   | )      |        |   | 2,237  |       
|                  | Investment in Federal Home Loan Bank stock and other |                                  |                     | 5,037  |        |        |   | (407   | )      |         |              | (513  | )      |        |   | 4,117  |       
|                  |                                                      |                                  |                     |        |        |        |   |        |        |         |              |      
|                  |                                                      | Total interest income            |                     |        | 67,930 |        |   |        | 21,654 |         |              |       | 5,803  |        |   |        | 95,387 |       
|Interest expense: |                                                      |                                  |                     |        |        |        |   |        |        |         |              |       |        |        |   |       
|                  | Interest-bearing deposits                            |                                  |                     | 10,494 |        |        |   | 10,949 |        |         |              | 4,291 |        |        |   | 25,734 |       
|                  | Advances from Federal Home Loan Bank                 |                                  |                     | 20,119 |        |        |   | 12,502 |        |         |              | 6,626 |        |        |   | 39,247 |       
|                  | Other borrowings                                     |                                  |                     | 773    |        |        |   | 18,806 |        |         |              | (9    | )      |        |   | 19,570 |       
|                  |                                                      |                                  |                     |        |        |        |   |        |        |         |              |      
|                  |                                                      | Total interest expense           |                     |        | 31,386 |        |   |        | 42,257 |         |              |       | 10,908 |        |   |        | 84,551 |       
|                  |                                                      |                                  |                     |        |        |        |   |        |        |         |              |      
|                  |                                                      |                                  | Net interest income |        | $      | 36,544 |   |        | $      | (20,603 | )            |       | $      | (5,105 | ) |        | $      | 10,836 | 
|                  |                                                      |                                  |                     |        |        |        |   |        |        |         |              |      

39



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##### Table of Contents



|                  |                                                      |                                 |                     |        |         |        |   |        |         |         |              |        |        |         |   |        |         |        | 
|----------------- | ---------------------------------------------------- | ------------------------------- | ------------------- | ------ | ------- | ------ | - | ------ | ------- | ------- | ------------ | ------ | ------ | ------- | - | ------ | ------- | ------ | 
|                  |                                                      | Nine Months Ended September 30, |                    
|                  |                                                      | 2005 vs. 2004                   |                    
|                  |                                                      |                                 |                    
|                  |                                                      | Increase/(Decrease) Due to      |                    
|                  |                                                      |                                 |                    
|                  |                                                      | Volume                          |                     |        | Rate    |        |   | Mix    |         |         | Total Change |       
|                  |                                                      |                                 |                     |        |         |        |   |        |         |         |              |       
|                  |                                                      | (Dollars in thousands)          |                    
|Interest income:  |                                                      |                                 |                     |        |         |        |   |        |         |         |              |        |        |         |   |       
|                  | Mortgage-backed securities                           |                                 | $                   | 33,669 |         |        | $ | 15,371 |         |         | $            | 5,260  |        |         | $ | 54,300 |        
|                  | Loans held for sale                                  |                                 |                     | 99,458 |         |        |   | (2,278 | )       |         |              | (1,140 | )      |         |   | 96,040 |        
|                  | Mortgage loans held for investment                   |                                 |                     | (4,929 | )       |        |   | 18,854 |         |         |              | (598   | )      |         |   | 13,327 |        
|                  | Builder construction and income property             |                                 |                     | 9,258  |         |        |   | 8,341  |         |         |              | 2,929  |        |         |   | 20,528 |        
|                  | Consumer construction                                |                                 |                     | 8,473  |         |        |   | (494   | )       |         |              | (82    | )      |         |   | 7,897  |        
|                  | Investment in Federal Home Loan Bank stock and other |                                 |                     | 12,538 |         |        |   | (1,745 | )       |         |              | (2,021 | )      |         |   | 8,772  |        
|                  |                                                      |                                 |                     |        |         |        |   |        |         |         |              |       
|                  |                                                      | Total interest income           |                     |        | 158,467 |        |   |        | 38,049  |         |              |        | 4,348  |         |   |        | 200,864 |       
|Interest expense: |                                                      |                                 |                     |        |         |        |   |        |         |         |              |        |        |         |   |       
|                  | Interest-bearing deposits                            |                                 |                     | 28,012 |         |        |   | 22,991 |         |         |              | 8,770  |        |         |   | 59,773 |        
|                  | Advances from Federal Home Loan Bank                 |                                 |                     | 46,386 |         |        |   | 30,945 |         |         |              | 13,881 |        |         |   | 91,212 |        
|                  | Other borrowings                                     |                                 |                     | (3,991 | )       |        |   | 47,833 |         |         |              | (4,713 | )      |         |   | 39,129 |        
|                  |                                                      |                                 |                     |        |         |        |   |        |         |         |              |       
|                  |                                                      | Total interest expense          |                     |        | 70,407  |        |   |        | 101,769 |         |              |        | 17,938 |         |   |        | 190,114 |       
|                  |                                                      |                                 |                     |        |         |        |   |        |         |         |              |       
|                  |                                                      |                                 | Net interest income |        | $       | 88,060 |   |        | $       | (63,720 | )            |        | $      | (13,590 | ) |        | $       | 10,750 | 
|                  |                                                      |                                 |                     |        |         |        |   |        |         |         |              |       

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INTEREST RATE SENSITIVITY






|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |   |           |            |  |   |           |            | 
|------------------------------------ | ----------------- | ---------------------- | --------- | ------------------- | ----------------- | - | --------- | ---------- | ------------------- | - | ---------- | ---------- |  | ------- | --------- | ---------- | ------- | - | --------- | ---------- |  | - | --------- | ---------- | 
|                                     |                   | September 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            |                   | $                      | 306,932   |                     |                   | $ | 306,932   |            |                     | $ | 306,932    |            |  | $       | 352,664   |            |         | $ | 352,664   |            |  | $ | 352,664   |           
|Trading securities                   |                   |                        | 254,592   |                     |                   |   | 260,209   |            |                     |   | 248,075    |            |  |         | 215,480   |            |         |   | 202,801   |            |  |   | 224,716   |           
|Available for sale securities        |                   |                        | 2,387,056 |                     |                   |   | 2,426,820 |            |                     |   | 2,329,779  |            |  |         | 2,362,108 |            |         |   | 2,398,485 |            |  |   | 2,303,858 |           
|Loans held for sale                  |                   |                        | 5,389,688 |                     |                   |   | 5,456,785 |            |                     |   | 5,286,774  |            |  |         | 4,474,459 |            |         |   | 4,530,902 |            |  |   | 4,385,744 |           
|Loans held for investment            |                   |                        | 7,938,022 |                     |                   |   | 7,998,558 |            |                     |   | 7,844,739  |            |  |         | 6,725,541 |            |         |   | 6,792,345 |            |  |   | 6,616,173 |           
|MSRs                                 |                   |                        | 951,372   |                     |                   |   | 782,700   |            |                     |   | 1,065,545  |            |  |         | 640,794   |            |         |   | 509,099   |            |  |   | 728,703   |           
|Other assets                         |                   |                        | 1,253,370 |                     |                   |   | 1,307,736 |            |                     |   | 1,292,034  |            |  |         | 898,496   |            |         |   | 959,259   |            |  |   | 926,602   |           
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|                                     | Total assets      |                        | $         | 18,481,032          |                   |   | $         | 18,539,740 |                     |   | $          | 18,373,878 |  |         | $         | 15,669,542 |         |   | $         | 15,745,555 |  |   | $         | 15,538,460 | 
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|Deposits                             |                   | $                      | 7,266,722 |                     |                   | $ | 7,299,160 |            |                     | $ | 7,234,875  |            |  | $       | 5,688,988 |            |         | $ | 5,741,396 |            |  | $ | 5,640,149 |           
|Advances from Federal Home Loan Bank |                   |                        | 6,636,572 |                     |                   |   | 6,662,067 |            |                     |   | 6,611,631  |            |  |         | 6,160,151 |            |         |   | 6,189,573 |            |  |   | 6,131,386 |           
|Other borrowings                     |                   |                        | 2,287,221 |                     |                   |   | 2,288,890 |            |                     |   | 2,285,555  |            |  |         | 1,865,801 |            |         |   | 1,867,124 |            |  |   | 1,864,481 |           
|Other liabilities                    |                   |                        | 371,681   |                     |                   |   | 371,987   |            |                     |   | 371,376    |            |  |         | 299,876   |            |         |   | 300,119   |            |  |   | 299,631   |           
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|                                     | Total liabilities |                        |           | 16,562,196          |                   |   |           | 16,622,104 |                     |   |            | 16,503,437 |  |         |           | 14,014,816 |         |   |           | 14,098,212 |  |   |           | 13,935,647 | 
|Shareholders equity (NPV)           |                   | $                      | 1,918,836 |                     |                   | $ | 1,917,636 |            |                     | $ | 1,870,441  |            |  | $       | 1,654,726 |            |         | $ | 1,647,343 |            |  | $ | 1,602,813 |           
|                                     |                   |                        |           |                     |                   |   |           |            |                     |   |            |            |  |         |           |            |         |  
|% Change from base case              |                   |                        |           |                     |                   |   | (0.06     | )%         |                     |   | (2.52      | )%         |  |         |           |            |         |   | (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                  |                                      | $                                   | 5,243,806 |           |            | $      | 20,499         |        |               | $          |     |            |        |        | 0.39%    |             |        | $        | 25,983      |        |        | $ | 145   |     |       | $ | 1,220 |      
|                                                            | Land and other mortgage loans                  |                                      |                                     | 218,681   |           |            |        | 4,115          |        |               |            |     |            |        |        | 1.88%    |             |        |          |            |        |        |   | 127   |     |       |   | 168   |      
|                                                            | Builder construction and income property loans |                                      |                                     | 840,808   |           |            |        | 14,074         |        |               |            |     |            |        |        | 1.67%    |             |        |          | 4,162       |        |        |   |      |     |       |   | 72    |      
|                                                            | Consumer construction loans                    |                                      |                                     | 1,593,297 |           |            |        | 10,201         |        |               |            |     |            |        |        | 0.64%    |             |        |          | 8,183       |        |        |   | 567   |     |       |   | 1,437 |      
|                                                            | Revolving warehouse Lines of credit            |                                      |                                     | 32,631    |           |            |        | 115            |        |               |            |     |            |        |        | 0.35%    |             |        |          |            |        |        |   |      |     |       |   |      |      
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|                                                            |                                                | Total core held for investment loans |                                     |           | 7,929,223 |            |        |                | 49,004 |               |            |      |           |        |        |          | 0.62%       |        |          |             | 38,328 |        |   |       | 839 |       |   |       | 2,897 |      
|                                                            | Discontinued product lines(1)                  |                                      |                                     | 47,495    |           |            |        | 6,529          |        |               |            |     |            |        |        | 13.75%   |             |        |          | 5,318       |        |        |   | 1,225 |     |       |   | 2,886 |      
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|                                                            |                                                |                                      | Total held for investment portfolio |           |           | 7,976,718  |        |                | $      | 55,533        |            |      |            |       |        |          |             | 0.70%  |          |             |        | 43,646 |   |       |     | 2,064 |   |       |       | 5,783 | 
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|Held for sale portfolio                                     |                                                |                                      | 5,373,406                           |           |           |            |        |                |        | $             | 7,832      |      |            |        | 0.15%  |          |             |        | 17,460   |             |        |        |  |       |     |       |  |      
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|                                                            |                                                |                                      | Total loans                         |           | $         | 13,350,124 |        |                |        |               |            |      |            |        |        |          |             |        |          |             |        | 61,106 |   |       | $   | 2,064 |   |       | $     | 5,783 | 
|                                                            |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |       
|Foreclosed assets                                           |                                                |                                      |                                     |           |           |            |        |                |        |               |            |      |            |        |        |          |             |        |          |             |        |        |   |       |     |       |   |      
|Core portfolios                                             |                                                |                                      | 8,880                               |           |           | $          | 369    |                |        | $             | 2,165      |     
|Discontinued product lines                                  |                                                |                                      | 337                                 |           |           |            | 91     |                |        |               | 86         |     
|                                                            |                                                |                                      |                                     |           |           |            |        |                |       
|Total foreclosed assets                                     |                                                |                                      | 9,217                               |           |           | $          | 460    |                |        | $             | 2,251      |     
|                                                            |                                                |                                      |                                     |           |           |            |        |                |       
|Total non-performing assets                                 |                                                | $                                    | 70,323                              |           |           |            |        |                |        |               |            |     
|                                                            |                                                |                                      |                                     |           |           |            |        |                |       
|Total non-performing assets as a percentage of total assets |                                                |                                      | 0.36                                | %         |           |            |        |                |        |               |            |     
|                                                            |                                                |                                      |                                     |           |           |            |        |                |       






|    |                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------
|(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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|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |        |        |         |   |        |        |         | 
|------------------------------------------------------------------------- | --------------- | ---------------------------------------------- | ------------------------------------ | ---------------------------------------------- | ------------- | ------ | ------ | ------------ | ------ | ------ | ------- | - | ------ | ------ | ------- | 
|                                                                          |                 | September 30,                                  |                                      |                                                | September 30, |        |        | December 31, |       
|                                                                          |                 | 2005                                           |                                      |                                                | 2004          |        |        | 2004         |       
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       
|                                                                          |                 | (Dollars in thousands)                         |                                     
|Loans held for investment                                                 |                 |                                                |                                      |                                                |               |        |        |              |        |        |         |  
|                                                                          | Portfolio loans |                                                |                                      |                                                |               |        |        |              |        |        |         |   |       
|                                                                          |                 | SFR mortgage loans                             |                                      | $                                              | 25,983        |        |        | $            | 10,882 |        |         | $ | 22,155 |       
|                                                                          |                 | Builder construction and income property loans |                                      |                                                | 4,162         |        |        |              | 15,369 |        |         |   | 11,546 |       
|                                                                          |                 | Consumer construction loans                    |                                      |                                                | 8,183         |        |        |              | 9,966  |        |         |   | 9,553  |       
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       
|                                                                          |                 |                                                | Total portfolio non-performing loans |                                                |               | 38,328 |        |              |        | 36,217 |         |   |        | 43,254 |        
|                                                                          |                 |                                                | Discontinued product lines           |                                                |               | 5,318  |        |              |        | 5,414  |         |   |        | 5,868  |        
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       
|                                                                          |                 |                                                |                                      | Total non-performing loans held for investment |               |        | 43,646 |              |        |        | 41,631  |   |        |        | 49,122  | 
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       
|Allowance for loan losses to non-performing loans held for
    investment |                 |                                                | 127                                  | %                                              |               |        | 127    | %            |        |        | 108     | %
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       
|Non-performing loans held for sale                                        |                 |                                                | 17,460                               |                                                |               |        | 56,327 |              |        |        | 54,611  |  
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       
|                                                                          |                 |                                                |                                      | Total non-performing loans                     |               |        | 61,106 |              |        |        | 97,958  |   |        |        | 103,733 | 
|Foreclosed assets                                                         |                 |                                                | 9,217                                |                                                |               |        | 24,755 |              |        |        | 19,161  |  
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       
|                                                                          |                 |                                                |                                      | Total non-performing assets                    |               | $      | 70,323 |              |        | $      | 122,713 |   |        | $      | 122,894 | 
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       
|Total non-performing assets to total assets                               |                 |                                                | 0.36                                 | %                                              |               |        | 0.76   | %            |        |        | 0.73    | %
|                                                                          |                 |                                                |                                      |                                                |               |        |        |              |       

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|                                                            |                               |                                 |        |        |                   |   |        |               |        |   |               |        |        |   |        |        |        |  
|----------------------------------------------------------- | ----------------------------- | ------------------------------- | ------ | ------ | ----------------- | - | ------ | ------------- | ------ | - | ------------- | ------ | ------ | - | ------ | ------ | ------ | -
|                                                            |                               | Three Months Ended              |        |        | Nine Months Ended |  
|                                                            |                               |                                 |        |        |                   |  
|                                                            |                               | September 30,                   |        |        | September 30,     |   |        | September 30, |        |   | September 30, |       
|                                                            |                               | 2005                            |        |        | 2004              |   |        | 2005          |        |   | 2004          |       
|                                                            |                               |                                 |        |        |                   |   |        |               |        |   |               |       
|                                                            |                               | (Dollars in thousands)          |       
|Core portfolio loans                                        |                               |                                 |        |        |                   |   |        |               |        |   |               |        |        |   |        |       
|Balance, beginning of period                                |                               | $                               | 46,815 |        |                   | $ | 45,285 |               |        | $ | 45,191        |        |        | $ | 45,644 |       
|Provision for loan losses                                   |                               |                                 | 3,028  |        |                   |   | 698    |               |        |   | 6,710         |        |        |   | 2,799  |       
|Charge-offs net of recoveries                               |                               |                                 |        |        |                   |   |        |               |        |   |               |        |        |   |        |       
|                                                            |                               | SFR mortgage loans              |        |        | (145              | ) |        |               | (488   | ) |               |        | (1,220 | ) |        |        | (2,534 | )
|                                                            |                               | Land and other mortgage loans   |        |        | (127              | ) |        |               |       |   |               |        | (168   | ) |        |        |       |  
|                                                            |                               | Builder construction            |        |        |                  |   |        |               | (7     | ) |               |        | (72    | ) |        |        | (17    | )
|                                                            |                               | Consumer construction           |        |        | (567              | ) |        |               | (271   | ) |               |        | (1,437 | ) |        |        | (675   | )
|                                                            |                               |                                 |        |        |                   |   |        |               |        |   |               |       
|                                                            | Charge-offs net of recoveries |                                 |        | (839   | )                 |   |        | (766          | )      |   |               | (2,897 | )      |   |        | (3,226 | )     
|                                                            |                               |                                 |        |        |                   |   |        |               |        |   |               |       
|Balance, end of period                                      |                               |                                 | 49,004 |        |                   |   | 45,217 |               |        |   | 49,004        |        |        |   | 45,217 |       
|                                                            |                               |                                 |        |        |                   |   |        |               |        |   |               |       
|Discontinued product lines                                  |                               |                                 |        |        |                   |   |        |               |        |   |               |        |        |   |        |       
|Balance, beginning of period                                |                               |                                 | 7,254  |        |                   |   | 7,511  |               |        |   | 7,700         |        |        |   | 7,001  |       
|Provision for loan losses                                   |                               |                                 | 500    |        |                   |   | 800    |               |        |   | 1,715         |        |        |   | 3,399  |       
|                                                            | Charge-offs net of recoveries |                                 |        | (1,225 | )                 |   |        | (700          | )      |   |               | (2,886 | )      |   |        | (2,789 | )     
|                                                            |                               |                                 |        |        |                   |   |        |               |        |   |               |       
|Balance, end of period                                      |                               |                                 | 6,529  |        |                   |   | 7,611  |               |        |   | 6,529         |        |        |   | 7,611  |       
|                                                            |                               |                                 |        |        |                   |   |        |               |        |   |               |       
|                                                            |                               | Total allowance for loan losses |        | $      | 55,533            |   |        | $             | 52,828 |   |               | $      | 55,533 |   |        | $      | 52,828 |  
|                                                            |                               |                                 |        |        |                   |   |        |               |        |   |               |       
|Annualized charge-offs to average loans held for investment |                               |                                 | 0.11   | %      |                   |   | 0.09   | %             |        |   | 0.11          | %      |        |   | 0.11   | %     
|Charge-offs to quarterly production                         |                               |                                 | 0.01   | %      |                   |   | 0.06   | %             |        |   | 0.01          | %      |        |   | 0.03   | %     
|Core portfolio loans only                                   |                               |                                 |        |        |                   |   |        |               |        |   |               |        |        |   |        |       
|Annualized charge-offs to average loans held for investment |                               |                                 | 0.04   | %      |                   |   | 0.05   | %             |        |   | 0.05          | %      |        |   | 0.06   | %     
|Charge-offs to quarterly production                         |                               |                                 | 0.01   | %      |                   |   | 0.03   | %             |        |   | 0.01          | %      |        |   | 0.02   | %     





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SECONDARY MARKET RESERVES




|                      |       |                       |       |       |            |   |            |             |  |  |      |      |  
|--------------------- | ----- | --------------------- | ----- | ----- | ---------- | - | ---------- | ----------- |  |  | ---- | ---- | -
|                      |       | Amount                |       |       |            |   | Percentage |            
|                      |       | Repurchased           |       |       | Total Sold |   |            | Repurchased | 
|                      |       |                       |       |       |            |   |            |             | 
|                      |       | (Dollars in millions) |      
|Loans sold:           |       |                       |       |       |            |   |            |             |  |  |      |     
|GSEs and whole loans  |       | $                     | 170.8 |       |            | $ | 68,954     |             |  |  | 0.25 | %   
|Securitization trusts |       |                       | 15.8  |       |            |   | 96,832     |             |  |  | 0.02 | %   
|                      |       |                       |       |       |            |   |            |             | 
|                      | Total |                       | $     | 186.6 |            |   | $          | 165,786     |  |  |      | 0.11 | %
|                      |       |                       |       |       |            |   |            |             | 



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|                                                                                    |  |                        |         |   |        |   |         |  
|----------------------------------------------------------------------------------- |  | ---------------------- | ------- | - | ------ | - | ------- | -
|                                                                                    |  | Three                  |         |   | Nine   |  
|                                                                                    |  | Months                 |         |   | Months |  
|                                                                                    |  |                        |         |   |        |  
|                                                                                    |  | (Dollars in thousands) |        
|Balance, Beginning of the Period                                                    |  | $                      | 37,043  |   |        | $ | 35,610  |  
|Additions/provisions                                                                |  |                        | 4,115   |   |        |   | 14,108  |  
|Claims reimbursement and estimated discounts on loans held for
    sale/charge-offs |  |                        | (13,934 | ) |        |   | (23,306 | )
|Recoveries on previous claims                                                       |  |                        | 220     |   |        |   | 1,032   |  
|                                                                                    |  |                        |         |   |        |  
|Balance, September 30, 2005                                                         |  | $                      | 27,444  |   |        | $ | 27,444  |  
|                                                                                    |  |                        |         |   |        |  








OPERATING EXPENSES




|                                         |  |                        |         |  |                   |   |         |          |  |   |               |   |  |               |         |  |  |   |         | 
|---------------------------------------- |  | ---------------------- | ------- |  | ----------------- | - | ------- | -------- |  | - | ------------- | - |  | ------------- | ------- |  |  | - | ------- | 
|                                         |  | Three Months Ended     |         |  | Nine Months Ended |  
|                                         |  |                        |         |  |                   |  
|                                         |  | September 30,          |         |  | September 30,     |   |         | June 30, |  |   | September 30, |   |  | September 30, |        
|                                         |  | 2005                   |         |  | 2004              |   |         | 2005     |  |   | 2005          |   |  | 2004          |        
|                                         |  |                        |         |  |                   |   |         |          |  |   |               |   |  |               |        
|                                         |  | (Dollars in thousands) |        
|Salaries and related                     |  | $                      | 80,173  |  |                   | $ | 60,099  |          |  | $ | 82,267        |   |  | $             | 237,280 |  |  | $ | 162,688 | 
|Premises and equipment                   |  |                        | 14,006  |  |                   |   | 11,450  |          |  |   | 13,630        |   |  |               | 40,249  |  |  |   | 30,981  | 
|Loan purchase costs                      |  |                        | 9,240   |  |                   |   | 9,312   |          |  |   | 9,249         |   |  |               | 27,209  |  |  |   | 26,863  | 
|Professional services                    |  |                        | 7,759   |  |                   |   | 5,580   |          |  |   | 6,202         |   |  |               | 20,917  |  |  |   | 16,497  | 
|Data processing                          |  |                        | 11,146  |  |                   |   | 9,436   |          |  |   | 11,316        |   |  |               | 32,375  |  |  |   | 26,607  | 
|Office                                   |  |                        | 8,626   |  |                   |   | 4,658   |          |  |   | 8,383         |   |  |               | 23,632  |  |  |   | 16,395  | 
|Advertising and promotion                |  |                        | 11,648  |  |                   |   | 13,926  |          |  |   | 10,608        |   |  |               | 33,406  |  |  |   | 31,949  | 
|Operations and sale of foreclosed assets |  |                        | 1,227   |  |                   |   | 1,848   |          |  |   | (889          | ) |  |               | 1,939   |  |  |   | 5,401   | 
|Litigation settlement                    |  |                        |        |  |                   |   |        |          |  |   | 3,000         |   |  |               | 9,000   |  |  |   |        | 
|Other                                    |  |                        | 7,106   |  |                   |   | 5,499   |          |  |   | 6,802         |   |  |               | 20,005  |  |  |   | 16,239  | 
|                                         |  |                        |         |  |                   |   |         |          |  |   |               |   |  |               |        
|                                         |  | $                      | 150,931 |  |                   | $ | 121,808 |          |  | $ | 150,568       |   |  | $             | 446,012 |  |  | $ | 333,620 | 
|                                         |  |                        |         |  |                   |   |         |          |  |   |               |   |  |               |        



46



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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 |  
|Three Months Ended September 30, 2005  |       | Purchased(1) |     |     | Paid Per Share |                 |                  | Programs            |              |                         | Plans orPrograms(2) |  
|                                       |       |              |     |     |                |                 |                  |                     |              |                         |                     |  
|July 1, 2005  July 31, 2005           |       |              | 84  |     |                | $               | 42.87            |                     |              |                         |                    |   |  |  | 63.6 |     
|August 1, 2005  August 31, 2005       |       |              | 408 |     |                |                 | 44.56            |                     |              |                         |                    |   |  |  | 63.6 |     
|September 1, 2005  September 30, 2005 |       |              |    |     |                |                 |                 |                     |              |                         |                    |   |  |  | 63.6 |     
|                                       |       |              |     |     |                |                 |                  |                     |              |                         |                     |  
|                                       | Total |              |     | 492 |                |                 | $                | 44.27               |              |                         |                     |  |  |  |      | 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 in $100 million increments to a
    total of $500 million in April, August and October 2000,
    May 2001 and July 2002. 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 and was
    completed in August 2000.




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






|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |   |           |           |  |  |    |     |  
|----------------------------- | ------------------- | ---------------------- | --------- | --------- | ------------- |  | -- | ----------------- | ----- | - | --------- | --------- |  | ------ | -- | --- | -------- | - | --------- | --------- |  |  | -- | --- | -
|                              |                     | September 30, 2005     |           |           | June 30, 2005 |  |    | December 31, 2004 |      
|                              |                     |                        |           |           |               |  |    |                   |      
|                              |                     |                        |           | % of      |               |  |    |                   | % of  |   |           |           |  | % of   |   
|                              |                     |                        |           | Total     |               |  |    |                   | Total |   |           |           |  | Total  |   
|                              |                     | Amount                 |           |           | Deposits      |  |    | Amount            |       |   | Deposits  |           |  | Amount |    |     | Deposits |  
|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|                              |                     | (Dollars in thousands) |          
|Non-interest-bearing checking |                     | $                      | 64,079    |           |               |  | 1  | %                 |       | $ | 63,848    |           |  |        | 1  | %   |          | $ | 55,359    |           |  |  | 1  | %  
|Interest-bearing checking     |                     |                        | 55,021    |           |               |  | 1  | %                 |       |   | 51,566    |           |  |        | 1  | %   |          |   | 42,306    |           |  |  | 1  | %  
|Savings                       |                     |                        | 1,219,710 |           |               |  | 17 | %                 |       |   | 1,276,499 |           |  |        | 19 | %   |          |   | 1,527,466 |           |  |  | 27 | %  
|Custodial accounts            |                     |                        | 658,958   |           |               |  | 9  | %                 |       |   | 636,469   |           |  |        | 10 | %   |          |   | 622,589   |           |  |  | 11 | %  
|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|                              | Total core deposits |                        |           | 1,997,768 |               |  |    | 28                | %     |   |           | 2,028,382 |  |        |    | 31  | %        |   |           | 2,247,720 |  |  |    | 39  | %
|Certificates of deposit       |                     |                        | 5,263,182 |           |               |  | 72 | %                 |       |   | 4,556,150 |           |  |        | 69 | %   |          |   | 3,495,759 |           |  |  | 61 | %  
|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|                              | Total deposits      |                        | $         | 7,260,950 |               |  |    | 100               | %     |   | $         | 6,584,532 |  |        |    | 100 | %        |   | $         | 5,743,479 |  |  |    | 100 | %
|                              |                     |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  

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|            |                |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |   |           |           |  |  |    |     |  
|----------- | -------------- | ---------------------- | --------- | --------- | ------------- |  | -- | ----------------- | ----- | - | --------- | --------- |  | ------ | -- | --- | -------- | - | --------- | --------- |  |  | -- | --- | -
|            |                | September 30, 2005     |           |           | June 30, 2005 |  |    | December 31, 2004 |      
|            |                |                        |           |           |               |  |    |                   |      
|            |                |                        |           | % of      |               |  |    |                   | % of  |   |           |           |  | % of   |   
|            |                |                        |           | Total     |               |  |    |                   | Total |   |           |           |  | Total  |   
|            |                | Amount                 |           |           | Deposits      |  |    | Amount            |       |   | Deposits  |           |  | Amount |    |     | Deposits |  
|            |                |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|            |                | (Dollars in thousands) |          
|Branch      |                | $                      | 3,059,462 |           |               |  | 42 | %                 |       | $ | 2,868,298 |           |  |        | 44 | %   |          | $ | 2,271,605 |           |  |  | 40 | %  
|Internet    |                |                        | 714,837   |           |               |  | 10 | %                 |       |   | 664,079   |           |  |        | 10 | %   |          |   | 579,503   |           |  |  | 10 | %  
|Telebanking |                |                        | 835,145   |           |               |  | 12 | %                 |       |   | 760,710   |           |  |        | 12 | %   |          |   | 639,584   |           |  |  | 11 | %  
|Money desk  |                |                        | 1,992,548 |           |               |  | 27 | %                 |       |   | 1,654,976 |           |  |        | 25 | %   |          |   | 1,630,199 |           |  |  | 28 | %  
|Custodial   |                |                        | 658,958   |           |               |  | 9  | %                 |       |   | 636,469   |           |  |        | 9  | %   |          |   | 622,588   |           |  |  | 11 | %  
|            |                |                        |           |           |               |  |    |                   |       |   |           |           |  |        |    |     |          |  
|            | Total deposits |                        | $         | 7,260,950 |               |  |    | 100               | %     |   | $         | 6,584,532 |  |        |    | 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




50



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PRINCIPAL USES OF CASH




ACCUMULATED OTHER COMPREHENSIVE LOSS




REGULATORY CAPITAL REQUIREMENTS






51



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##### Table of Contents





|                  |  |                |       |   |                     |  |       |                  |  |  |       |  
|----------------- |  | -------------- | ----- | - | ------------------- |  | ----- | ---------------- |  |  | ----- | -
|                  |  | As Reported    |       |   | Adjusted for        |  |       |                 
|                  |  | Pre-Subprime   |       |   | Additional Subprime |  |       | Well-Capitalized | 
|                  |  | Risk-Weighting |       |   | Risk-Weighting      |  |       | Minimum          | 
|                  |  |                |       |   |                     |  |       |                  | 
|Capital Ratios:   |  |                |       |   |                     |  |       |                  |  |  |       |  
|Tier 1 core       |  |                | 7.51  | % |                     |  | 7.51  | %                |  |  | 5.00  | %
|Tier 1 risk-based |  |                | 11.27 | % |                     |  | 11.11 | %                |  |  | 6.00  | %
|Total risk-based  |  |                | 11.75 | % |                     |  | 11.58 | %                |  |  | 10.00 | %






OFF-BALANCE SHEET ARRANGEMENTS












52



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AGGREGATE CONTRACTUAL OBLIGATIONS




|                                                |  |                        |            |  |                   |   |           |                   |  |   |                   |  |  |       |           |  |  |   |            | 
|----------------------------------------------- |  | ---------------------- | ---------- |  | ----------------- | - | --------- | ----------------- |  | - | ----------------- |  |  | ----- | --------- |  |  | - | ---------- | 
|                                                |  | Payment Due            |           
|                                                |  |                        |           
|                                                |  | October 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              |  | $                      | 1,338,810  |  |                   | $ |          |                   |  | $ |                  |  |  | $     |          |  |  | $ | 1,338,810  | 
|Custodial Accounts and Certificates of Deposits |  |                        | 2,519,971  |  |                   |   | 3,326,261 |                   |  |   | 68,959            |  |  |       | 6,949     |  |  |   | 5,922,140  | 
|FHLB Advances                                   |  |                        | 4,501,000  |  |                   |   | 1,805,000 |                   |  |   | 315,000           |  |  |       |          |  |  |   | 6,621,000  | 
|Repurchase Agreements                           |  |                        | 2,368,872  |  |                   |   |          |                   |  |   |                  |  |  |       |          |  |  |   | 2,368,872  | 
|HELOC Notes(1)                                  |  |                        |           |  |                   |   |          |                   |  |   |                  |  |  |       | 997,987   |  |  |   | 997,987    | 
|Other Notes                                     |  |                        | 1,741      |  |                   |   |          |                   |  |   |                  |  |  |       | 1,049     |  |  |   | 2,790      | 
|Trust Preferred Debentures                      |  |                        |           |  |                   |   |          |                   |  |   |                  |  |  |       | 215,707   |  |  |   | 215,707    | 
|Accrued Interest Payable                        |  |                        | 96,366     |  |                   |   |          |                   |  |   |                  |  |  |       |          |  |  |   | 96,366     | 
|Deferred Compensation                           |  |                        | 372        |  |                   |   | 2,552     |                   |  |   | 8,153             |  |  |       | 24,422    |  |  |   | 35,499     | 
|Operating Leases(2)                             |  |                        | 5,184      |  |                   |   | 49,615    |                   |  |   | 43,735            |  |  |       | 42,885    |  |  |   | 141,419    | 
|Employment Agreements(3)                        |  |                        | 2,831      |  |                   |   | 13,606    |                   |  |   | 325               |  |  |       |          |  |  |   | 16,762     | 
|Purchase Obligations                            |  |                        | 448        |  |                   |   | 7,876     |                   |  |   |                  |  |  |       |          |  |  |   | 8,324      | 
|                                                |  |                        |            |  |                   |   |           |                   |  |   |                   |  |  |       |          
|Total                                           |  | $                      | 10,835,595 |  |                   | $ | 5,204,910 |                   |  | $ | 436,172           |  |  | $     | 1,288,999 |  |  | $ | 17,765,676 | 
|                                                |  |                        |            |  |                   |   |           |                   |  |   |                   |  |  |       |          






|    |                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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) |       
|Investment portfolio commitments to: |                                                      |                        |        |          
|                                     | Purchase loans pursuant to exercising clean-up calls |                        | $      | 27,753    | 
|Undisbursed loan commitments:        |                                                      |                        |        |          
|                                     | Builder construction                                 |                        | $      | 1,059,780 | 
|                                     | Consumer construction                                |                        |        | 1,167,241 | 
|                                     | HELOCs                                               |                        |        | 515,541   | 
|                                     | Revolving warehouse lending                          |                        |        | 74,207    | 
|Letters of credit                    |                                                      | $                      | 17,094 |          



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KEY OPERATING RISKS




INTEREST RATE RISK




VALUATION RISK




CREDIT RISK






LIQUIDITY RISK




54



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CYCLICAL INDUSTRY




COMPETITION






LAWS AND REGULATIONS




55



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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



56



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

INDYMAC BANCORP, INC. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               |                                 |         |              |           |           |         |            |           | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | ------- | ------------ | --------- | --------- | ------- | ---------- | --------- | 
|                                                                                                                                                                                                                                        |                           | September 30,                                                                                                                                                 |                                 |         | December 31, |          
|                                                                                                                                                                                                                                        |                           | 2005                                                                                                                                                          |                                 |         | 2004         |          
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               |                                 |         |              |          
|                                                                                                                                                                                                                                        |                           | Unaudited                                                                                                                                                     |                                 |         |             
|                                                                                                                                                                                                                                        |                           | (Dollars in thousands)                                                                                                                                        |                                
|Assets                                                                                                                                                                                                                                  |                           |                                                                                                                                                               |                                 |         |              |           |           |        
|Cash and cash equivalents                                                                                                                                                                                                               |                           | $                                                                                                                                                             | 308,005                         |         |              | $         | 356,157   |        
|Securities classified as trading ($42.0 million and
    $54.4 million pledged as collateral for borrowings at
    September 30, 2005 and December 31, 2004, respectively)                                                               |                           |                                                                                                                                                               | 268,531                         |         |              |           | 235,036   |        
|Securities classified as available for sale, amortized cost of
    $3.5 billion at September 30, 2005 and
    December 31, 2004 ($2.3 billion pledged as collateral
    for borrowings at September 30, 2005 and December 31,
    2004) |                           |                                                                                                                                                               | 3,471,842                       |         |              |           | 3,454,435 |        
|Loans receivable:                                                                                                                                                                                                                       |                           |                                                                                                                                                               |                                 |         |              |           |           |        
|                                                                                                                                                                                                                                        | Loans held for sale       |                                                                                                                                                               |                                 |         |              |           |           |         |           
|                                                                                                                                                                                                                                        |                           | SFR mortgage                                                                                                                                                  |                                 |         | 4,722,270    |           |           |         | 4,054,338  |          
|                                                                                                                                                                                                                                        |                           | HELOC                                                                                                                                                         |                                 |         | 550,029      |           |           |         | 358,410    |          
|                                                                                                                                                                                                                                        |                           | Consumer lot loans                                                                                                                                            |                                 |         | 93,275       |           |           |         | 32,824     |          
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               |                                 |         |              |          
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               | Total loans held for sale       |         |              | 5,365,574 |           |         |            | 4,445,572 | 
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               |                                 |         |              |          
|                                                                                                                                                                                                                                        | Loans held for investment |                                                                                                                                                               |                                 |         |              |           |           |         |           
|                                                                                                                                                                                                                                        |                           | SFR mortgage                                                                                                                                                  |                                 |         | 5,257,247    |           |           |         | 4,458,784  |          
|                                                                                                                                                                                                                                        |                           | Consumer construction                                                                                                                                         |                                 |         | 1,593,297    |           |           |         | 1,443,450  |          
|                                                                                                                                                                                                                                        |                           | Builder construction                                                                                                                                          |                                 |         | 840,808      |           |           |         | 643,116    |          
|                                                                                                                                                                                                                                        |                           | HELOC                                                                                                                                                         |                                 |         | 34,054       |           |           |         | 45,932     |          
|                                                                                                                                                                                                                                        |                           | Land and other mortgage                                                                                                                                       |                                 |         | 218,681      |           |           |         | 158,471    |          
|                                                                                                                                                                                                                                        |                           | Revolving warehouse lines of credit                                                                                                                           |                                 |         | 32,631       |           |           |         |           |          
|                                                                                                                                                                                                                                        | Allowance for loan losses |                                                                                                                                                               |                                 | (55,533 | )            |           |           | (52,891 | )         
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               |                                 |         |              |          
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               | Total loans held for investment |         |              | 7,921,185 |           |         |            | 6,696,862 | 
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               |                                 |         |              |          
|                                                                                                                                                                                                                                        |                           | Total loans receivable ($9.1 billion and $8.1 billion
    pledged as collateral for borrowings at September 30, 2005
    and December 31, 2004, respectively) |                                 |         | 13,286,759   |           |           |         | 11,142,434 |          
|Mortgage servicing rights                                                                                                                                                                                                               |                           |                                                                                                                                                               | 940,606                         |         |              |           | 640,794   |        
|Investment in Federal Home Loan Bank stock                                                                                                                                                                                              |                           |                                                                                                                                                               | 538,856                         |         |              |           | 390,716   |        
|Interest receivable                                                                                                                                                                                                                     |                           |                                                                                                                                                               | 119,137                         |         |              |           | 78,827    |        
|Goodwill and other intangible assets                                                                                                                                                                                                    |                           |                                                                                                                                                               | 80,986                          |         |              |           | 81,445    |        
|Foreclosed assets                                                                                                                                                                                                                       |                           |                                                                                                                                                               | 9,217                           |         |              |           | 19,161    |        
|Other assets                                                                                                                                                                                                                            |                           |                                                                                                                                                               | 603,805                         |         |              |           | 426,639   |        
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               |                                 |         |              |          
|                                                                                                                                                                                                                                        |                           | Total assets                                                                                                                                                  |                                 | $       | 19,627,744   |           |           | $       | 16,825,644 |          
|                                                                                                                                                                                                                                        |                           |                                                                                                                                                               |                                 |         |              |          

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|                                     |                                                                                                                                                                                                                                       |                                            |           |           |              |   |           |           |            | 
|------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | --------- | --------- | ------------ | - | --------- | --------- | ---------- | 
|                                     |                                                                                                                                                                                                                                       | September 30,                              |           |           | December 31, |  
|                                     |                                                                                                                                                                                                                                       | 2005                                       |           |           | 2004         |  
|                                     |                                                                                                                                                                                                                                       |                                            |           |           |              |  
|                                     |                                                                                                                                                                                                                                       | Unaudited                                  |           |           |             
|                                     |                                                                                                                                                                                                                                       | (Dollars in thousands)                     |          
|                                    
|Liabilities and Shareholders Equity |                                                                                                                                                                                                                                       |                                            |           |           |              |   |           |          
|Deposits                             |                                                                                                                                                                                                                                       | $                                          | 7,260,950 |           |              | $ | 5,743,479 |          
|Advances from Federal Home Loan Bank |                                                                                                                                                                                                                                       |                                            | 6,621,000 |           |              |   | 6,162,000 |          
|Other borrowings                     |                                                                                                                                                                                                                                       |                                            | 3,585,356 |           |              |   | 3,162,241 |          
|Other liabilities                    |                                                                                                                                                                                                                                       |                                            | 680,209   |           |              |   | 493,953   |          
|                                     |                                                                                                                                                                                                                                       |                                            |           |           |              |  
|                                     |                                                                                                                                                                                                                                       | Total liabilities                          |           |           | 18,147,515   |   |           |           | 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 93,373,769 shares (64,183,982
    outstanding) at September 30, 2005, and issued
    91,168,915 shares (61,995,480 outstanding) at
    December 31, 2004 |                                            |           | 934       |              |   |           | 912       |           
|                                     | Additional paid-in-capital                                                                                                                                                                                                            |                                            |           | 1,240,240 |              |   |           | 1,186,682 |           
|                                     | Accumulated other comprehensive loss                                                                                                                                                                                                  |                                            |           | (13,159   | )            |   |           | (20,304   | )         
|                                     | Retained earnings                                                                                                                                                                                                                     |                                            |           | 772,628   |              |   |           | 616,516   |           
|                                     | Treasury stock, 29,189,787 shares and
    29,173,435 shares at September 30, 2005 and
    December 31, 2004, respectively                                                                                                             |                                            |           | (520,414  | )            |   |           | (519,835  | )         
|                                     |                                                                                                                                                                                                                                       |                                            |           |           |              |  
|                                     |                                                                                                                                                                                                                                       | Total shareholders equity                 |           |           | 1,480,229    |   |           |           | 1,263,971  | 
|                                     |                                                                                                                                                                                                                                       |                                            |           |           |              |  
|                                     |                                                                                                                                                                                                                                       | Total liabilities and shareholders equity |           | $         | 19,627,744   |   |           | $         | 16,825,644 | 
|                                     |                                                                                                                                                                                                                                       |                                            |           |           |              |  



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INDYMAC BANCORP, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF EARNINGS


|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |         |         |         |         | 
|------------------------------------ | --------------------------------------------------------------------------------- | --------------------------------------------- | --------------------------------------------------- | ------------ | ------------------- | ------- | ------ | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | 
|                                     |                                                                                   | For the Three Months                          |                                                     |              | For the Nine Months |        
|                                     |                                                                                   | Ended September 30,                           |                                                     |              | Ended September 30, |        
|                                     |                                                                                   |                                               |                                                     |              |                     |        
|                                     |                                                                                   | 2005                                          |                                                     |              | 2004                |         |        | 2005    |         |         | 2004    |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   | (Unaudited)                                   |                                                    
|                                     |                                                                                   | (Dollars in thousands, except per share data) |                                                    
|Interest income                      |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |        
|Mortgage-backed and other securities |                                                                                   | $                                             | 52,624                                              |              |                     | $       | 36,129 |         |         | $       | 151,649 |         |         | $       | 97,349  |        
|Loans held for sale                  |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |        
|                                     | SFR mortgage                                                                      |                                               |                                                     | 114,267      |                     |         |        | 63,494  |         |         |         | 264,939 |         |         |         | 182,856 |        
|                                     | HELOC                                                                             |                                               |                                                     | 9,288        |                     |         |        | 7,516   |         |         |         | 21,642  |         |         |         | 7,516   |        
|                                     | Consumer lot loans                                                                |                                               |                                                     | 2,414        |                     |         |        | 1,917   |         |         |         | 6,527   |         |         |         | 6,696   |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   | Total loans held for sale                     |                                                     |              | 125,969             |         |        |         | 72,927  |         |         |         | 293,108 |         |         |         | 197,068 |        
|Loans held for investment            |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |        
|                                     | SFR mortgage                                                                      |                                               |                                                     | 59,513       |                     |         |        | 50,770  |         |         |         | 168,447 |         |         |         | 149,732 |        
|                                     | Consumer construction                                                             |                                               |                                                     | 20,440       |                     |         |        | 18,203  |         |         |         | 59,097  |         |         |         | 51,201  |        
|                                     | Builder construction                                                              |                                               |                                                     | 18,086       |                     |         |        | 9,075   |         |         |         | 46,614  |         |         |         | 25,222  |        
|                                     | Land and other mortgage                                                           |                                               |                                                     | 4,651        |                     |         |        | 3,090   |         |         |         | 11,982  |         |         |         | 9,025   |        
|                                     | HELOC                                                                             |                                               |                                                     | 535          |                     |         |        | 827     |         |         |         | 1,659   |         |         |         | 11,511  |        
|                                     | Revolving warehouse lines of credit                                               |                                               |                                                     | 474          |                     |         |        |        |         |         |         | 644     |         |         |         |        |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   | Total loans held for investment               |                                                     |              | 103,699             |         |        |         | 81,965  |         |         |         | 288,443 |         |         |         | 246,691 |        
|Other                                |                                                                                   |                                               | 8,098                                               |              |                     |         | 3,982  |         |         |         | 19,534  |         |         |         | 10,762  |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   | Total interest income                         |                                                     |              | 290,390             |         |        |         | 195,003 |         |         |         | 752,734 |         |         |         | 551,870 |        
|Interest expense                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |        
|                                     | Deposits                                                                          |                                               |                                                     | 52,261       |                     |         |        | 26,527  |         |         |         | 132,479 |         |         |         | 72,706  |        
|                                     | Advances from Federal Home Loan Bank                                              |                                               |                                                     | 76,907       |                     |         |        | 37,660  |         |         |         | 193,711 |         |         |         | 102,499 |        
|                                     | Other borrowings                                                                  |                                               |                                                     | 49,796       |                     |         |        | 30,226  |         |         |         | 114,293 |         |         |         | 75,164  |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   | Total interest expense                        |                                                     |              | 178,964             |         |        |         | 94,413  |         |         |         | 440,483 |         |         |         | 250,369 |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   |                                               | Net interest income                                 |              |                     | 111,426 |        |         |         | 100,590 |         |         |         | 312,251 |         |         |         | 301,501 |        
|Provision for loan losses            |                                                                                   |                                               | 3,528                                               |              |                     |         | 1,498  |         |         |         | 8,425   |         |         |         | 6,198   |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   |                                               | Net interest income after provision for loan losses |              |                     | 107,898 |        |         |         | 99,092  |         |         |         | 303,826 |         |         |         | 295,303 |        
|Other income                         |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |        
|                                     | Gain on sale of loans                                                             |                                               |                                                     | 151,086      |                     |         |        | 98,052  |         |         |         | 454,785 |         |         |         | 247,804 |        
|                                     | Service fee income (loss)                                                         |                                               |                                                     | 10,304       |                     |         |        | 8,742   |         |         |         | 25,521  |         |         |         | (22,209 | )      
|                                     | Gain (loss) on mortgage-backed securities, net                                    |                                               |                                                     | 728          |                     |         |        | (9,438  | )       |         |         | 11,933  |         |         |         | (17,839 | )      
|                                     | Fee and other income                                                              |                                               |                                                     | 12,678       |                     |         |        | 7,712   |         |         |         | 28,649  |         |         |         | 20,528  |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   | Total other income                            |                                                     |              | 174,796             |         |        |         | 105,068 |         |         |         | 520,888 |         |         |         | 228,284 |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   |                                               | Net revenues                                        |              |                     | 282,694 |        |         |         | 204,160 |         |         |         | 824,714 |         |         |         | 523,587 |        
|Other expense                        |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |        
|                                     | Operating expenses                                                                |                                               |                                                     | 150,931      |                     |         |        | 121,808 |         |         |         | 446,012 |         |         |         | 333,620 |        
|                                     | Amortization of other intangible assets                                           |                                               |                                                     | 145          |                     |         |        | 171     |         |         |         | 452     |         |         |         | 538     |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   | Total other expense                           |                                                     |              | 151,076             |         |        |         | 121,979 |         |         |         | 446,464 |         |         |         | 334,158 |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     | Earnings before provision for income taxes and minority interests                 |                                               |                                                     | 131,618      |                     |         |        | 82,181  |         |         |         | 378,250 |         |         |         | 189,429 |        
|                                     |                                                                                   | Provision for income taxes                    |                                                     |              | 51,926              |         |        |         | 32,461  |         |         |         | 149,345 |         |         |         | 74,824  |        
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   |                                               | Net earnings before minority interests              |              |                     | 79,692  |        |         |         | 49,720  |         |         |         | 228,905 |         |         |         | 114,605 |        
|                                     | Minority interests                                                                |                                               |                                                     | 417          |                     |         |        | (6      | )       |         |         | 1,008   |         |         |         | (6      | )      
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|                                     |                                                                                   |                                               |                                                     | Net earnings |                     | $       | 79,275 |         |         | $       | 49,726  |         |         | $       | 227,897 |         |         | $       | 114,611 | 
|                                     |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |        
|Earnings per share:                  |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |        
|                                     | Basic (net earnings divided by weighted-average basic shares
    outstanding)     |                                               | $                                                   | 1.25         |                     |         | $      | 0.81    |         |         | $       | 3.65    |         |         | $       | 1.95    |        
|                                     | Diluted (net earnings divided by weighted-average diluted shares
    outstanding) |                                               | $                                                   | 1.18         |                     |         | $      | 0.78    |         |         | $       | 3.46    |         |         | $       | 1.87    |        
|Weighted-average shares outstanding: |                                                                                   |                                               |                                                     |              |                     |         |        |         |         |         |         |         |         |         |         |        
|                                     | Basic                                                                             |                                               |                                                     | 63,268       |                     |         |        | 61,254  |         |         |         | 62,460  |         |         |         | 58,800  |        
|                                     | Diluted                                                                           |                                               |                                                     | 67,055       |                     |         |        | 63,904  |         |         |         | 65,872  |         |         |         | 61,421  |        
|Dividends declared per share         |                                                                                   | $                                             | 0.40                                                |              |                     | $       | 0.32   |         |         | $       | 1.14    |         |         | $       | 0.87    |        



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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                                             |  |                        | 56,760,375 |   |        | $          | 859 |             |       | $ | 1,043,856     |  |  | $        | (26,454 | ) |               | $ | 518,408 |          |  |   |               |   |  | $ | (519,238 | ) |  | $ | 1,017,431 |  
|Common stock issued                                                      |  |                        | 3,330,000  |   |        |            | 33  |             |       |   | 100,138       |  |  |          |        |   |               |   |        |          |  | $ |              |   |  |   |         |   |  |   | 100,171   |  
|Common stock options exercised                                           |  |                        | 1,733,116  |   |        |            | 17  |             |       |   | 38,366        |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 38,383    |  
|Net directors and officers notes receivable payments                   |  |                        |           |   |        |            |    |             |       |   | 43            |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 43        |  
|Deferred compensation, restricted stock                                  |  |                        | 114,047    |   |        |            | 2   |             |       |   | 1,989         |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 1,991     |  
|Net unrealized loss on mortgage-backed securities available for
    sale |  |                        |           |   |        |            |    |             |       |   |              |  |  |          | (1,719  | ) |               |   |        |          |  |   | (1,719        | ) |  |   |         |   |  |   | (1,719    | )
|Net unrealized loss on derivatives used in cash flow hedges              |  |                        |           |   |        |            |    |             |       |   |              |  |  |          | (2,987  | ) |               |   |        |          |  |   | (2,987        | ) |  |   |         |   |  |   | (2,987    | )
|Purchases of common stock                                                |  |                        | (17,766    | ) |        |            |    |             |       |   |              |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   | (543     | ) |  |   | (543      | )
|Cash dividends                                                           |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   | (51,345 | )        |  |   |              |   |  |   |         |   |  |   | (51,345   | )
|Net earnings                                                             |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   | 114,611 |          |  |   | 114,611       |   |  |   |         |   |  |   | 114,611   |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Total comprehensive income                                               |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   |        |          |  | $ | 109,905       |   |  |   |         |   |  |   |          |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Balance at September 30, 2004                                            |  |                        | 61,919,772 |   |        | $          | 911 |             |       | $ | 1,184,392     |  |  | $        | (31,160 | ) |               | $ | 581,674 |          |  |   |               |   |  | $ | (519,781 | ) |  | $ | 1,216,036 |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Balance at December 31, 2004                                             |  |                        | 61,995,480 |   |        | $          | 912 |             |       | $ | 1,186,682     |  |  | $        | (20,304 | ) |               | $ | 616,516 |          |  |   |               |   |  | $ | (519,835 | ) |  | $ | 1,263,971 |  
|Common stock options and warrants exercised                              |  |                        | 1,939,404  |   |        |            | 19  |             |       |   | 49,661        |  |  |          |        |   |               |   |        |          |  | $ |              |   |  |   |         |   |  |   | 49,680    |  
|Net directors and officers notes receivable payments                   |  |                        |           |   |        |            |    |             |       |   | 25            |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 25        |  
|Deferred compensation, restricted stock                                  |  |                        | 265,450    |   |        |            | 3   |             |       |   | 3,872         |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   |         |   |  |   | 3,875     |  
|Net unrealized loss on mortgage-backed securities available for
    sale |  |                        |           |   |        |            |    |             |       |   |              |  |  |          | (11,688 | ) |               |   |        |          |  |   | (11,688       | ) |  |   |         |   |  |   | (11,688   | )
|Net unrealized gain on derivatives used in cash flow hedges              |  |                        |           |   |        |            |    |             |       |   |              |  |  |          | 18,833  |   |               |   |        |          |  |   | 18,833        |   |  |   |         |   |  |   | 18,833    |  
|Purchases of common stock                                                |  |                        | (16,352    | ) |        |            |    |             |       |   |              |  |  |          |        |   |               |   |        |          |  |   |              |   |  |   | (579     | ) |  |   | (579      | )
|Cash dividends                                                           |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   | (71,785 | )        |  |   |              |   |  |   |         |   |  |   | (71,785   | )
|Net earnings                                                             |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   | 227,897 |          |  |   | 227,897       |   |  |   |         |   |  |   | 227,897   |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Total comprehensive income                                               |  |                        |           |   |        |            |    |             |       |   |              |  |  |          |        |   |               |   |        |          |  | $ | 235,042       |   |  |   |         |   |  |   |          |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  
|Balance at September 30, 2005                                            |  |                        | 64,183,982 |   |        | $          | 934 |             |       | $ | 1,240,240     |  |  | $        | (13,159 | ) |               | $ | 772,628 |          |  |   |               |   |  | $ | (520,414 | ) |  | $ | 1,480,229 |  
|                                                                         |  |                        |            |   |        |            |     |             |       |   |               |  |  |          |         |   |               |   |         |          |  |   |               |  



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INDYMAC BANCORP, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                            |                                                                                                              |                                                                 |                                           |            |          |            |         |            |          |            |  
|--------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------- | ----------------------------------------- | ---------- | -------- | ---------- | ------- | ---------- | -------- | ---------- | -
|                                                                            |                                                                                                              | For the Nine Months Ended                                       |                                          
|                                                                            |                                                                                                              | September 30,                                                   |                                          
|                                                                            |                                                                                                              |                                                                 |                                          
|                                                                            |                                                                                                              | 2005                                                            |                                           |            | 2004     |           
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            |                                                                                                              | (Unaudited)                                                     |                                          
|                                                                            |                                                                                                              | (Dollars in thousands)                                          |                                          
|Cash flows from operating activities:                                       |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Net earnings                                                                                                 |                                                                 | $                                         | 227,897    |          |            | $       | 114,611    |         
|                                                                            | Adjustments to reconcile net earnings to net cash used in
    operating activities:                          |                                                                 |                                           |            |          |            |         |            |         
|                                                                            |                                                                                                              | Total amortization and depreciation                             |                                           |            | 201,577  |            |         |            | 163,373  |           
|                                                                            |                                                                                                              | Provision for valuation adjustment of mortgage servicing rights |                                           |            | 25,598   |            |         |            | 59,040   |           
|                                                                            |                                                                                                              | Gain on sale of loans                                           |                                           |            | (454,785 | )          |         |            | (247,804 | )         
|                                                                            |                                                                                                              | (Gain) loss on mortgage-backed securities, net                  |                                           |            | (11,933  | )          |         |            | 17,839   |           
|                                                                            |                                                                                                              | Provision for loan losses                                       |                                           |            | 8,425    |            |         |            | 6,198    |           
|                                                                            |                                                                                                              | Net increase in deferred tax liability                          |                                           |            | 71,716   |            |         |            | 21,858   |           
|                                                                            |                                                                                                              | Net (increase) decrease in other assets and liabilities         |                                           |            | 1,129    |            |         |            | 386,126  |           
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            | Net cash provided by operating activities before activity for
    trading securities and loans held for sale |                                                                 |                                           | 69,624     |          |            |         | 521,241    |         
|                                                                            | Net sales of trading securities                                                                              |                                                                 |                                           | 74,550     |          |            |         | 58,599     |         
|                                                                            | Net purchases of loans held for sale                                                                         |                                                                 |                                           | (3,137,485 | )        |            |         | (3,708,016 | )       
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            |                                                                                                              |                                                                 | Net cash used in operating activities     |            |          | (2,993,311 | )       |            |          | (3,128,176 | )
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Cash flows from investing activities:                                       |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Net sales of and payments from loans held for investment                                                     |                                                                 |                                           | 723,685    |          |            |         | 1,411,939  |         
|                                                                            | Net sales (purchases) of and payments from mortgage-backed
    securities available for sale                 |                                                                 |                                           | 58,182     |          |            |         | (195,954   | )       
|                                                                            | Net increase in investment in Federal Home Loan Bank stock,
    at cost                                      |                                                                 |                                           | (148,140   | )        |            |         | (48,870    | )       
|                                                                            | Net purchases of property, plant and equipment                                                               |                                                                 |                                           | (63,082    | )        |            |         | (36,920    | )       
|                                                                            | Purchase of Financial Freedom, net of cash received                                                          |                                                                 |                                           |           |          |            |         | (81,408    | )       
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            |                                                                                                              |                                                                 | Net cash provided by investing activities |            |          | 570,645    |         |            |          | 1,048,787  |  
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Cash flows from financing activities:                                       |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Net increase in deposits                                                                                     |                                                                 |                                           | 1,515,565  |          |            |         | 934,736    |         
|                                                                            | Net increase (decrease) in advances from Federal Home
    Loan Bank                                          |                                                                 |                                           | 459,000    |          |            |         | (153,000   | )       
|                                                                            | Net increase in borrowings                                                                                   |                                                                 |                                           | 422,608    |          |            |         | 1,564,344  |         
|                                                                            | Net proceeds from issuance of common stock                                                                   |                                                                 |                                           |           |          |            |         | 100,170    |         
|                                                                            | Net proceeds from stock options, warrants, and notes receivable                                              |                                                                 |                                           | 49,705     |          |            |         | 38,427     |         
|                                                                            | Cash dividends paid                                                                                          |                                                                 |                                           | (71,785    | )        |            |         | (51,345    | )       
|                                                                            | Purchases of common stock                                                                                    |                                                                 |                                           | (579       | )        |            |         | (543       | )       
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            |                                                                                                              |                                                                 | Net cash provided by financing activities |            |          | 2,374,514  |         |            |          | 2,432,789  |  
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Net (decrease) increase in cash and cash equivalents                        |                                                                                                              |                                                                 | (48,152                                   | )          |          |            | 353,400 |           
|Cash and cash equivalents at beginning of period                            |                                                                                                              |                                                                 | 356,157                                   |            |          |            | 115,485 |           
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Cash and cash equivalents at end of period                                  |                                                                                                              | $                                                               | 308,005                                   |            |          | $          | 468,885 |           
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Supplemental cash flow information:                                         |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Cash paid for interest                                                                                       |                                                                 | $                                         | 394,625    |          |            | $       | 229,305    |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            | Cash paid for income taxes                                                                                   |                                                                 | $                                         | 69,935     |          |            | $       | 31,335     |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|Supplemental disclosure of non-cash investing and financing
    activities: |                                                                                                              |                                                                 |                                           |            |          |            |         |           
|                                                                            | Net transfer of loans held for sale to loans held for investment                                             |                                                                 | $                                         | 1,922,841  |          |            | $       | 1,766,881  |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            | Recharacterization of loans to mortgage-backed securities
    available for sale                             |                                                                 | $                                         |           |          |            | $       | 1,000,262  |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           
|                                                                            | Net transfer of mortgage servicing rights to trading securities                                              |                                                                 | $                                         | 8,491      |          |            | $       | 13,898     |         
|                                                                            |                                                                                                              |                                                                 |                                           |            |          |           



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INDYMAC BANCORP, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


September 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


Classification and Measurement of
Freestanding Financial Instruments Originally Issued in Exchange
for Employee Services under FASB Statement No. 123(R)


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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Practical Accommodation to the Application
of Grant Date as Defined in FASB Statement No. 123(R)


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


Determining the Variability to be
Considered in Applying FASB Interpretation No. 46(R)


Accounting
for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities Accounting for Transfers of Financial
Assets, Accounting for Servicing of Financial Assets and
Accounting for Certain Hybrid Financial Instrument 


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)


Accounting for Rental Costs Incurred during a
Construction Period


NOTE 3  MORTGAGE-BACKED SECURITIES AND AGENCY
NOTES




|                                                                     |                                                |                                                                            |   |           |              |  |   |           |           | 
|-------------------------------------------------------------------- | ---------------------------------------------- | -------------------------------------------------------------------------- | - | --------- | ------------ |  | - | --------- | --------- | 
|                                                                     |                                                | September 30,                                                              |   |           | December 31, | 
|                                                                     |                                                | 2005                                                                       |   |           | 2004         | 
|                                                                     |                                                |                                                                            |   |           |              | 
|                                                                     |                                                | (Dollars in thousands)                                                     |  
|Mortgage-backed securities  Trading                                 |                                                |                                                                            |   |           |              |  |   |          
|                                                                     | AAA-rated and agency interest-only securities  |                                                                            | $ | 74,005    |              |  | $ | 90,658    |          
|                                                                     | AAA-rated principal-only securities            |                                                                            |   | 2,351     |              |  |   | 18,598    |          
|                                                                     | Prepayment penalty securities                  |                                                                            |   | 76,178    |              |  |   | 33,451    |          
|                                                                     | Other investment grade securities              |                                                                            |   | 9,359     |              |  |   | 9,219     |          
|                                                                     | Other non-investment grade securities          |                                                                            |   |          |              |  |   | 4,198     |          
|                                                                     | Non-investment grade residual securities       |                                                                            |   | 106,638   |              |  |   | 78,912    |          
|                                                                     |                                                |                                                                            |   |           |              | 
|                                                                     |                                                | Total mortgage-backed securities  Trading                                 |   | $         | 268,531      |  |   | $         | 235,036   | 
|                                                                     |                                                |                                                                            |   |           |              | 
|Mortgage-backed securities and agency notes 
    Available for sale |                                                |                                                                            |   |           |              |  |   |          
|                                                                     | AAA-rated non-agency securities                |                                                                            | $ | 3,241,329 |              |  | $ | 3,166,600 |          
|                                                                     | AAA-rated agency securities                    |                                                                            |   | 45,695    |              |  |   | 14,903    |          
|                                                                     | Other investment grade securities              |                                                                            |   | 84,081    |              |  |   | 137,603   |          
|                                                                     | Other non-investment grade securities          |                                                                            |   | 53,041    |              |  |   | 78,854    |          
|                                                                     | Non-investment grade HELOC residual securities |                                                                            |   | 47,696    |              |  |   | 56,475    |          
|                                                                     |                                                |                                                                            |   |           |              | 
|                                                                     |                                                | Total mortgage-backed securities and agency notes 
    Available for sale |   | $         | 3,471,842    |  |   | $         | 3,454,435 | 
|                                                                     |                                                |                                                                            |   |           |              | 

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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |                                       |                                       |   |         |                      |   |            |           |           |  |            |            |         |        |   |         |            |  |   |         |         |   |   |           |           | 
|-------------------------------- | ------------------------------------- | ------------------------------------- | - | ------- | -------------------- | - | ---------- | --------- | --------- |  | ---------- | ---------- | ------- | ------ | - | ------- | ---------- |  | - | ------- | ------- | - | - | --------- | --------- | 
|                                 |                                       | As of September 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           |                                       | $ | (81     | )                    |   | $          | 35,070    |           |  | $          | (111       | )       |        | $ | 6,084   |            |  | $ | (192    | )       |   | $ | 41,154    |          
|                                 | AAA-rated non-agency securities       |                                       |   | (11,274 | )                    |   |            | 1,218,428 |           |  |            | (25,143    | )       |        |   | 939,273 |            |  |   | (36,417 | )       |   |   | 2,157,701 |          
|                                 | Other non-investment grade securities |                                       |   | (556    | )                    |   |            | 29,099    |           |  |            |           |         |        |   |        |            |  |   | (556    | )       |   |   | 29,099    |          
|                                 |                                       |                                       |   |         |                      |   |            |           |           |  |            |            |         |        |   |         |            | 
|                                 |                                       | Total Securities  Available for Sale |   | $       | (11,911              | ) |            | $         | 1,282,597 |  |            | $          | (25,254 | )      |   | $       | 945,357    |  |   | $       | (37,165 | ) |   | $         | 2,227,954 | 
|                                 |                                       |                                       |   |         |                      |   |            |           |           |  |            |            |         |        |   |         |            | 



NOTE 4  SEGMENT REPORTING










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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                      |                               |                  |           |         |                 |   |           |          |   |   |         |         |   |       |            |         |         |   |         |          |   |   |            |         | 
|------------------------------------- | ----------------------------- | ---------------- | --------- | ------- | --------------- | - | --------- | -------- | - | - | ------- | ------- | - | ----- | ---------- | ------- | ------- | - | ------- | -------- | - | - | ---------- | ------- | 
|                                      |                               | Mortgage Banking |           |         |                 |   |           |          |  
|                                      |                               |                  |           |         |                 |   |           |          |  
|                                      |                               | Production       |           |         | MSRs and        |   |           | MB       |   |   |         |         |   |       | Total      |        
|                                      |                               | Divisions        |           |         | Retained Assets |   |           | Overhead |   |   | Thrift  |         |   | Other |            |         | Company |  
|                                      |                               |                  |           |         |                 |   |           |          |   |   |         |         |   |       |            |         |         |  
|(Dollars in thousands)                |                               |                  |          
|Three months ended September 30, 2005 |                               |                  |           |         |                 |   |           |          |   |   |         |         |   |       |            |         |         |   |         |          |   |   |            |        
|                                      | Net interest income           |                  | $         | 35,937  |                 |   | $         | 12,161   |   |   | $       | 33      |   |       | $          | 60,518  |         |   | $       | 2,777    |   |   | $          | 111,426 | 
|                                      | Net revenues (expense)        |                  |           | 175,808 |                 |   |           | 26,684   |   |   |         | 655     |   |       |            | 83,963  |         |   |         | (4,416   | ) |   |            | 282,694 | 
|                                      | Net earnings (loss)           |                  |           | 65,599  |                 |   |           | 10,615   |   |   |         | (5,647  | ) |       |            | 37,751  |         |   |         | (29,043  | ) |   |            | 79,275  | 
|Allocated capital                     |                               |                  | 477,400   |         |                 |   | 251,304   |          |   |   | 12,680  |         |   |       | 638,258    |         |         |   | 19,322  |          |   |   | 1,398,964  |        
|Assets as of September 30, 2005       |                               | $                | 4,618,997 |         |                 | $ | 1,559,104 |          |   | $ | 109,940 |         |   | $     | 12,359,345 |         |         | $ | 980,358 |          |   | $ | 19,627,744 |        
|Return on equity                      |                               |                  | 55        | %       |                 |   | 17        | %        |   |   | N/A     |         |   |       | 23         | %       |         |   | N/A     |          |   |   | 22         | %      
|Three months ended September 30, 2004 |                               |                  |           |         |                 |   |           |          |   |   |         |         |   |       |            |         |         |   |         |          |   |   |            |        
|                                      | Net interest income           |                  | $         | 33,418  |                 |   | $         | 12,757   |   |   | $       |        |   |       | $          | 55,164  |         |   | $       | (749     | ) |   | $          | 100,590 | 
|                                      | Net revenues (expense)        |                  |           | 126,149 |                 |   |           | 4,759    |   |   |         | 608     |   |       |            | 71,380  |         |   |         | 1,264    |   |   |            | 204,160 | 
|                                      | Net earnings (loss)           |                  |           | 40,068  |                 |   |           | (152     | ) |   |         | (7,025  | ) |       |            | 33,794  |         |   |         | (16,959  | ) |   |            | 49,726  | 
|Allocated capital                     |                               |                  | 315,440   |         |                 |   | 226,674   |          |   |   |        |         |   |       | 527,220    |         |         |   | 143,728 |          |   |   | 1,213,062  |        
|Assets as of September 30, 2004       |                               | $                | 3,105,289 |         |                 | $ | 1,280,942 |          |   | $ | 163,503 |         |   | $     | 10,598,672 |         |         | $ | 991,678 |          |   | $ | 16,140,084 |        
|Return on equity                      |                               |                  | 51        | %       |                 |   |          |          |   |   | N/A     |         |   |       | 26         | %       |         |   | N/A     |          |   |   | 16         | %      
|Nine months ended September 30, 2005  |                               |                  |           |         |                 |   |           |          |   |   |         |         |   |       |            |         |         |   |         |          |   |   |            |        
|                                      | Net interest income (expense) |                  | $         | 87,031  |                 |   | $         | 39,076   |   |   | $       | 119     |   |       | $          | 174,692 |         |   | $       | 11,333   |   |   | $          | 312,251 | 
|                                      | Net revenues (expense)        |                  |           | 573,523 |                 |   |           | 70,952   |   |   |         | 1,606   |   |       |            | 237,513 |         |   |         | (58,880  | ) |   |            | 824,714 | 
|                                      | Net earnings (loss)           |                  |           | 223,976 |                 |   |           | 28,332   |   |   |         | (19,181 | ) |       |            | 107,688 |         |   |         | (112,918 | ) |   |            | 227,897 | 
|Allocated capital                     |                               |                  | 391,604   |         |                 |   | 246,409   |          |   |   | 12,343  |         |   |       | 601,503    |         |         |   | 72,540  |          |   |   | 1,324,399  |        
|Assets as of September 30, 2005       |                               | $                | 4,618,997 |         |                 | $ | 1,559,104 |          |   | $ | 109,940 |         |   | $     | 12,359,345 |         |         | $ | 980,358 |          |   | $ | 19,627,744 |        
|Return on equity                      |                               |                  | 76        | %       |                 |   | 15        | %        |   |   | N/A     |         |   |       | 24         | %       |         |   | N/A     |          |   |   | 23         | %      
|Nine months ended September 30, 2004  |                               |                  |           |         |                 |   |           |          |   |   |         |         |   |       |            |         |         |   |         |          |   |   |            |        
|                                      | Net interest income (expense) |                  | $         | 101,822 |                 |   | $         | 44,583   |   |   | $       |        |   |       | $          | 162,957 |         |   | $       | (7,861   | ) |   | $          | 301,501 | 
|                                      | Net revenues (expense)        |                  |           | 369,222 |                 |   |           | 11,851   |   |   |         | 1,681   |   |       |            | 217,251 |         |   |         | (76,418  | ) |   |            | 523,587 | 
|                                      | Net earnings (loss)           |                  |           | 131,094 |                 |   |           | (2,035   | ) |   |         | (21,406 | ) |       |            | 104,393 |         |   |         | (97,435  | ) |   |            | 114,611 | 
|Allocated capital                     |                               |                  | 253,469   |         |                 |   | 210,971   |          |   |   |        |         |   |       | 504,452    |         |         |   | 158,999 |          |   |   | 1,127,891  |        
|Assets as of September 30, 2004       |                               | $                | 3,105,289 |         |                 | $ | 1,280,942 |          |   | $ | 163,503 |         |   | $     | 10,598,672 |         |         | $ | 991,678 |          |   | $ | 16,140,084 |        
|Return on equity                      |                               |                  | 69        | %       |                 |   |          |          |   |   | N/A     |         |   |       | 28         | %       |         |   | N/A     |          |   |   | 14         | %      

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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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





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




|                           |             |                                               |   |        |                   |   |   |        |        |   |      |         |        |   |   |         |        |  
|-------------------------- | ----------- | --------------------------------------------- | - | ------ | ----------------- | - | - | ------ | ------ | - | ---- | ------- | ------ | - | - | ------- | ------ | -
|                           |             | Three Months Ended                            |   |        | Nine Months Ended |  
|                           |             | September 30,                                 |   |        | September 30,     |  
|                           |             |                                               |   |        |                   |  
|                           |             | 2005                                          |   |        | 2004              |   |   | 2005   |        |   | 2004 |        
|                           |             |                                               |   |        |                   |   |   |        |        |   |      |        
|                           |             | (Dollars in thousands, except per share data) |  
|Net Earnings               |             |                                               |   |        |                   |   |   |        |        |   |      |         |        |   |   |        
|                           | As reported |                                               | $ | 79,275 |                   |   | $ | 49,726 |        |   | $    | 227,897 |        |   | $ | 114,611 |       
|                           |             | Stock-based compensation expense              |   |        | (2,513            | ) |   |        | (2,784 | ) |      |         | (7,901 | ) |   |         | (8,353 | )
|                           |             | Tax effect                                    |   |        | 779               |   |   |        | 1,100  |   |      |         | 2,373  |   |   |         | 3,300  |  
|                           |             |                                               |   |        |                   |   |   |        |        |   |      |        
|                           | Pro forma   |                                               | $ | 77,541 |                   |   | $ | 48,042 |        |   | $    | 222,369 |        |   | $ | 109,558 |       
|                           |             |                                               |   |        |                   |   |   |        |        |   |      |        
|Basic Earnings Per Share   |             |                                               |   |        |                   |   |   |        |        |   |      |         |        |   |   |        
|                           | As reported |                                               | $ | 1.25   |                   |   | $ | 0.81   |        |   | $    | 3.65    |        |   | $ | 1.95    |       
|                           | Pro forma   |                                               | $ | 1.22   |                   |   | $ | 0.78   |        |   | $    | 3.56    |        |   | $ | 1.86    |       
|Diluted Earnings Per Share |             |                                               |   |        |                   |   |   |        |        |   |      |         |        |   |   |        
|                           | As reported |                                               | $ | 1.18   |                   |   | $ | 0.78   |        |   | $    | 3.46    |        |   | $ | 1.87    |       
|                           | Pro forma   |                                               | $ | 1.15   |                   |   | $ | 0.75   |        |   | $    | 3.37    |        |   | $ | 1.78    |       





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



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INDYMAC BANCORP, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                   |  |                        |       |   |                   |   |       |      |  |   |        |   |  |   |       |  
|---------------------------------- |  | ---------------------- | ----- | - | ----------------- | - | ----- | ---- |  | - | ------ | - |  | - | ----- | -
|                                   |  | Three Months           |       |   |                  
|                                   |  | Ended                  |       |   | Nine Months Ended |  
|                                   |  | September 30,          |       |   | September 30,     |  
|                                   |  |                        |       |   |                   |  
|                                   |  | 2005                   |       |   | 2004              |   |       | 2005 |  |   | 2004   |  
|                                   |  |                        |       |   |                   |   |       |      |  |   |        |  
|                                   |  | (Dollars in thousands) |      
|Service cost                       |  | $                      | 1,812 |   |                   | $ | 1,209 |      |  | $ | 5,436  |   |  | $ | 3,627 |  
|Interest cost                      |  |                        | 507   |   |                   |   | 323   |      |  |   | 1,521  |   |  |   | 969   |  
|Expected return on assets          |  |                        | (453  | ) |                   |   | (294  | )    |  |   | (1,359 | ) |  |   | (882  | )
|Recognized actuarial loss          |  |                        | 139   |   |                   |   | 73    |      |  |   | 417    |   |  |   | 219   |  
|Amortization of prior service cost |  |                        | 14    |   |                   |   | 14    |      |  |   | 42     |   |  |   | 42    |  
|                                   |  |                        |       |   |                   |   |       |      |  |   |        |  
|Net periodic benefit costs         |  | $                      | 2,019 |   |                   | $ | 1,325 |      |  | $ | 6,057  |   |  | $ | 3,975 |  
|                                   |  |                        |       |   |                   |   |       |      |  |   |        |  



|                              |  |               |       |  |      |  |       | 
|----------------------------- |  | ------------- | ----- |  | ---- |  | ----- | 
|                              |  | Three Months  |      
|                              |  | Ended         |      
|                              |  | September 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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##### Table of Contents








|        |                        
|------- | -----------------------
|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








|        |                  
|------- | -----------------
|ITEM 5. | OTHER INFORMATION








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

| |    |    |  |                                                                                                                                                          
| | -- | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .1 |  | IndyMac Bancorp, Inc. Board Compensation Policy & Stock
    Ownership Requirements, as Amended, Effective September 28,
    2005.                        
| | 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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##### Table of Contents



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

70