NEWPORT BEACH, Calif., Sept. 18 /PRNewswire-FirstCall/ -- Downey Financial Corp. (NYSE: DSL) today released monthly selected financial data for the thirteen months ended August 31, 2008.

Downey Financial Corp. is the parent company of Downey Savings and Loan Association, F.A., with assets of $13.9 billion and 169 branches throughout California and five in Arizona.

                   DOWNEY FINANCIAL CORP. AND SUBSIDIARIES
                 Monthly Selected Financial Data (Unaudited)
                            (Dollars in Thousands)
                       Aug. 31,     Jul. 31,     Jun. 30,     May 31,
                         2008         2008         2008         2008
                     -----------  -----------  -----------  -----------
    BALANCE SHEET
     SUMMARY
    Total assets     $13,886,200  $13,379,950  $12,632,319  $12,783,866
    Loans receivable
     held for
     investment, net  10,743,384   10,703,276   10,631,012   10,739,610
    Loans held for
     sale, at lower
     of cost or fair
     value                82,981       84,516       85,558      113,042
    MBS available
     for sale, at
     fair value              104          105          106          107
    Cash, investment
     securities and
     FHLB stock        2,324,489    1,823,057    1,170,402    1,206,941
    Deposits           9,850,174    9,373,703    9,880,978   10,046,208
    FHLB advances and
     other borrowings  2,906,674    2,909,431    1,622,872    1,428,871
    Senior notes         198,575      198,559      198,543      198,526
    NON-PERFORMING
     ASSETS AS A % OF
     TOTAL ASSETS
    Performing trouble
     debt
     restructurings (a)     3.23%        3.64%        4.34%        4.56%
    All other
     non-performing assets 11.45        11.44        11.16         9.77
     Total non-performing
      assets               14.68%       15.08%       15.50%       14.33%
    LOAN ACTIVITY FOR
     THE MONTH ENDED
    Loans for
     investment
     portfolio:
     Originations
      and purchases:
     Residential
      one-to-four
      units             $189,036     $231,224     $196,878     $271,920
     All other            25,433       18,131       36,236       13,580
     Repayments         (101,285)    (117,429)    (111,176)    (131,520)
    Loans for sale:
     Originations
      and purchases       50,590       69,551       64,024       73,954
     Sales               (50,067)     (69,242)     (90,538)     (65,869)
    MORTGAGE LOANS
     SERVICED FOR
     OTHERS
    Total             $5,338,529   $5,377,801   $5,435,529   $5,390,280
    With capitalized
     mortgage
     servicing
     rights: (b)
     Amount            2,473,754    2,473,370    2,471,000    2,440,693
     Weighted average
      interest rate         5.88%        5.87%        5.87%        5.87%
    INTEREST RATE
     SPREAD DATA (c)
    Weighted average
     yield:
     Loans and MBS          6.35%        6.46%        6.57%        6.73%
     Investment
      securities (d)        3.88         4.65         4.88         4.89
                           ------       ------       ------       ------
       Interest-earning
        assets yield        6.06         6.28         6.44         6.58
                           ------       ------       ------       ------
    Weighted average
     cost:
     Deposits               2.95         2.86         2.95         3.08
     FHLB advances and
      other borrowings (e)  3.48         3.49         3.29         3.48
     Senior notes           6.50         6.50         6.50         6.50
                           ------       ------       ------       ------
       Combined funds
        cost                3.13         3.06         3.06         3.18
                           ------       ------       ------       ------
    Interest rate
     spread                 2.93%        3.22%        3.38%        3.40%
                           ======       ======       ======       ======
                                    Apr. 30,     Mar. 31,     Feb.