Downey Reports '07 Loss

Downey Financial Corp., a Newport Beach, Calif.-based savings and loan, has reported a mortgage-related net loss of $56.6 million ($2.03 per share) for 2007, compared with net income of $199.7 million ($7.16 per share) in 2006. Downey said a key reason for the poor results was a $283.5 million increase in its provision for credit losses stemming from single-family loan delinquencies and foreclosure-related losses. The thrift also cited a $94.8 million decline in net interest income and a $23.3 million decline in net gains on the sale of loans and mortgage-backed securities, among other things, as contributors to the loss. For the fourth quarter, the company reported a net loss of $108.8 million ($3.90 per share), compared with net income of $52.1 million ($1.87 per share) a year earlier. Downey can be found online at http://www.downeysavings.com.