Downey Savings & Loan

NEWPORT BEACH —  Nature of Business: A state-chartered thrift that primarily makes real estate loans.

Employees Total: 980

In Orange County: 562

Stock Designation: Listed on NYSE and PSE as “Downy”

Ticket Symbol: “DSL”

Friday’s Close: $15.63

One-Week Change: -$1.23

Analyst Review: “Downey has to sell its significant real estate portfolio over the next several years to meet new federal guidelines; that cut off one of their better bread-and-butter businesses, but they’ll be fine. They have $4 billion in assets and over 50 branches. They are an especially desirable acquisition for an out-of-state savings and loan looking for a franchise. With the consolidation of the thrift industry underway, I think in two to five years, there may be a sale of the company.” --Campbell K. Chaney, analyst, Sutro & Co., San Francisco

Revenues and Profits

Corporate Outlook: “Downey has experienced significant improvement in its core (non-real estate) earnings in 1991. It continues to have strong capital ratios in excess of regulatory requirements and a relatively low non-performing asset ratio.” --David T. Hansen, chief financial officer

5-YEAR SUMMARY: RETURN ON STOCKHOLDER INVESTMENT

FISCAL YEAR ENDING DEC 31, ’86 DEC 31, ’87 DEC 31, ’88 DEC 31, ’89 52-Week High $18.06 $15.25 $13.08 $24.08 52-Week Low $11.17 $6.67 $7.58 $10.25 Price Per Share $13.33 $8.67 $10.25 $17.75 Net Earnings/ Loss Per Share $3.57 $2.06 $1.80 $0.85 Price to Earnings Ratio 4:1 4:1 6:1 21:1 Average Return to Investor 37% 18% 14% 6%

FISCAL YEAR ENDING DEC 31, ’90 52-Week High $19.75 52-Week Low $10.13 Price Per Share $12.75 Net Earnings/ Loss Per Share $2.60 Price to Earnings Ratio 5:1 Average Return to Investor 16%

For more information write Downey Savings: P.O. Box 6000, Newport Beach, CA 92658-6000. (714) 854-3100

Source: Downey Savings & Loan Assn.; Newport Securities