Exhibit 99.1
FOR IMMEDIATE RELEASE:
CONTACT:
INVESTOR RELATIONS
TEL: 410-772-5160
TOLL-FREE: 866-438-1088
INVESTORS@FIELDSTONEINVESTMENT.COM
FIELDSTONE INVESTMENT CORPORATION
ANNOUNCES SECOND QUARTER 2005 OPERATING RESULTS
COLUMBIA, MARYLAND, July 27, 2005 – Fieldstone Investment Corporation (NASDAQ: FICC) today announced its results of operations for the second quarter of 2005.
Financial Highlights
• Fieldstone’s net income for the second quarter of 2005 was $23.1 million or $0.47 per share (diluted) compared to $42.1 million or $0.87 per share (diluted) for the first quarter of 2005. Net income decreased during the second quarter of 2005 from the prior quarter primarily due to the $12.1 million non-cash mark to market valuation loss on interest rate swap and cap agreements in the second quarter of 2005 compared to the $20.6 million non-cash mark to market valuation gain in the first quarter of 2005. This decrease was partially offset by a $17.6 million pre-tax increase in gain on sale revenue from mortgage loan sales.
• Fieldstone had record core net income in the second quarter of 2005 of $35.2 million or $0.72 core per share (diluted), due primarily to a $17.6 million pre-tax increase in gain on sale revenue from mortgage loan sales. This is a 63.7% increase from the $21.5 million or $0.44 core per share (diluted) for the first quarter of 2005. Core net income excludes the non-cash mark to market gains or losses on interest rate swap and cap agreements.
• The investment portfolio was $4.8 billion at June 30, 2005, which includes a $268 million increase to the portfolio during the quarter, following the sale in May 2005 of $557 million of loans that had been classified as held for investment at March 31, 2005.
• Fieldstone funded $1.6 billion of non-conforming residential mortgage loans in the second quarter of 2005, an increase of 48.0% compared to the first quarter of 2005, and funded $2.0 billion of loans over-all during the quarter.
• Cost to produce decreased to 2.37% during the quarter from 2.96% in the first quarter of 2005, improving as a result of increased mortgage loan fundings and continued origination expense efficiencies in the non-conforming division.
• Fieldstone declared a cash dividend on July 6, 2005 of $0.50 per share for the second quarter of 2005, representing the sixth consecutive dividend increase since November of 2003.
“Fieldstone has continued its strategy of originating high quality non-conforming residential mortgage loans, allowing us to build relatively stable net interest income from our REIT investment portfolio and to sell loans for cash gains from our taxable REIT subsidiary (TRS). We funded a strong level of non-conforming loans in the second quarter, a level comparable to our 2004 fundings, we sold a $1.0 billion pool of loans at a solid premium and reduced our all-in cost to produce to 2.37% during the quarter. Our investment portfolio has continued to perform well, with stable net interest income (including the effect of our swaps) and low levels of delinquencies and losses. As a result of our continued success, Fieldstone increased its dividend to $0.50 per share, our sixth consecutive increase,” stated Michael J. Sonnenfeld, Fieldstone’s President and Chief Executive Officer.
- More -
DIVIDEND GUIDANCE
Fieldstone today reaffirmed management’s previous forward-looking guidance that dividends for common stockholders during the year 2005 are expected to total between $1.98 and $2.04 per share, including dividends declared relating to the first and second quarters of 2005 of $0.97 per share. This dividend guidance is based on management’s current estimates for the year 2005, including the following:
• Total annual non-conforming mortgage loan fundings of between $6.0 billion and $6.5 billion, which range has been adjusted to reflect management’s current estimate of total annual non-conforming mortgage loan fundings.
• Investment portfolio balance of approximately $6.0 billion of non-conforming loans by year end 2005, which reflects a portfolio debt to equity leverage ratio of 11 to 1.
• Stable interest margin on the new loans added to the investment portfolio in 2005 at levels achieved in the first six months of 2005 and as interest rates increase as anticipated by the forward LIBOR curve.
• Retention of 2005 after-tax income from sale of loans in the taxable REIT subsidiary (TRS).
• Weighted average diluted common shares outstanding in 2005 of 48.5 million.
FINANCIAL RESULTS
This press release discloses Fieldstone’s financial results under accounting principles generally accepted in the United States of America (GAAP). Also presented are certain non-GAAP financial measures that management believes provide useful information to investors regarding Fieldstone’s financial performance. The non-GAAP financial measures presented include core net income, core earnings per share (diluted), core net interest income and margin and cost to produce. Additional information about each of these non-GAAP financial measures, including a definition and the reason management believes its presentation provides useful information and a reconciliation of each of these non-GAAP financial measures to the most directly comparable measure under GAAP, is provided on Schedule 2 of this release.
Net Income and Earnings per Share
Fieldstone’s net income for the second quarter of 2005 was $23.1 million or $0.47 per share (diluted) compared to $42.1 million or $0.87 per share (diluted) for the first quarter of 2005. Net income decreased during the second quarter of 2005 from the prior quarter primarily due to the $12.1 million non-cash mark to market valuation loss on interest rate swap and cap agreements in the second quarter of 2005 compared to the $20.6 million non-cash mark to market valuation gain in the first quarter of 2005, and the decrease in net interest income after provision for loan losses. This was partially offset by the $17.6 million increase in gains on sales of mortgage loans, net during the quarter.
Net income for the second quarter of 2005 decreased $7.0 million from $30.1 million or $0.62 per share (diluted), for the second quarter of 2004 due primarily to the non-cash mark to market valuation loss on interest rate swap and cap agreements in 2005, versus a non-cash mark to market valuation gain in 2004, offset partially by higher net interest income in 2005 due to the growth of the portfolio and stronger loan sale revenues.
Core Net Income and Core Earnings per Share
Core net income for the second quarter of 2005 was a record $35.2 million, or $0.72 core per share (diluted), a 63.7% increase from the $21.5 million, or $0.44 core per share (diluted) in the first quarter of 2005. During the second quarter of 2005 core net income benefited from increased gains on sales of mortgage loans as Fieldstone sold over $1.5 billion of loans. In addition, Fieldstone recognized $42.5 million of core net interest income after provision for loan losses, which was a $0.9 million decrease from the prior quarter (see discussion below).
Core net income for the second quarter of 2005 increased $27.2 million from $8.0 million, or $0.16 core per share (diluted), for the second quarter of 2004 due to the growth of the portfolio and stronger loan sale revenues.
Mortgage Loan Fundings
Total mortgage loan fundings increased in the second quarter to $2.0 billion. Fieldstone funded over $1.6 billion of non-conforming loans during the quarter, a 48.0% increase from the prior quarter. The non-conforming fundings increased due to seasonal factors, increased funding in new branches and more competitive origination rates. Conforming mortgage loan fundings were $381.4 million for the second quarter of 2005, an increase of 8.3% compared to the first quarter of 2005.
2
Total mortgage loan fundings for the second quarter of 2005 decreased (1.3)% from the $2.0 billion funded in the second quarter of 2004. Non-conforming fundings decreased (2.5)% from the second quarter of 2004 and conforming mortgage loan fundings increased 4.3%.
Interest Income and Margin
Net interest income after provision for loan losses was $39.9 million for the second quarter of 2005, a 2.9% net interest margin after provision, compared to $43.7 million for the first quarter of 2005, a 3.4% net interest margin after provision, and $29.2 million for the second quarter of 2004, a 4.0% net interest margin after provision. The decline in net interest margin for the second quarter of 2005 reflects a generally lower yield on new loans added to the portfolio during the first six months of 2005, combined with an increased cost of financing on the entire portfolio as short-term market interest rates rose over that time while long-term rates remained relatively flat; these measures do not include the effect of Fieldstone’s economic hedge of its cost of financing.
Core Net Interest Income and Margin
Core net interest income after provision for loan losses was $42.5 million for the second quarter of 2005, compared to $43.4 million for the first quarter of 2005, and $27.4 million for the second quarter of 2004. Core net interest margin after provision for loan losses was 3.1% for the second quarter of 2005, compared to 3.4% for the first quarter of 2005, and 3.7% for the second quarter of 2004. The $0.9 million decrease in core net interest income after provision for loan losses from the first quarter of 2005 was primarily due to an increased provision for loan losses and a smaller average portfolio due to the whole loan sale executed in May 2005. Core net interest margin on loans held for investment prior to the provision for loan losses remained stable at 3.6% throughout the first half of 2005, reflecting the effectiveness of Fieldstone’s economic hedge program. Core net interest margin after provision in the second quarter of 2005 declined from the first quarter of 2005 primarily due to the increase in loan loss provision for loans held for investment attributable to the continued seasoning of the portfolio. Core net interest margin after provision in the second quarter of 2005 of 3.1% is lower than in the second quarter of 2004 of 3.7% due to the generally lower net interest margins available on new loans held for investment that Fieldstone added to its portfolio over the course of 2004 and first six months of 2005.
Gains on Sales of Mortgage Loans, Net
For the second quarter of 2005, revenues from gains on sales of mortgage loans were $27.3 million, an increase of $17.6 million from $9.7 million for the first quarter of 2005. Gain on sale revenue increased due to sales of over $1.5 billion of mortgage loans at an average net gain on sale margin of 1.8% for the second quarter of 2005, as compared to $0.8 billion of sales at a net gain on sale margin of 1.2% for the first quarter of 2005. The quarter-to-quarter increase in gain on sale margin reflected strong demand for mortgages in the second quarter and the sale of a relatively greater component of first lien non-conforming mortgages at relatively higher sales premiums than first lien conforming and second lien mortgages.
During May 2005, Fieldstone sold a pool of approximately $1.0 billion of mortgage loans, including $557 million of loans that were previously classified as held for investment on March 31, 2005. The loans that Fieldstone held for investment at March 31, 2005 that had not yet been securitized were transferred to “held for sale” in April 2005, and Fieldstone sold this pool at a price of 103.50% of par.
Origination Expenses and Cost to Produce
Fieldstone’s cost to produce as a percentage of total mortgage loan fundings decreased to 2.37% in the second quarter of 2005, from 2.96% in the first quarter of 2005 due to increased mortgage loan originations and continued origination expense efficiencies in the non-conforming division. Cost to produce is total expenses plus deferred origination costs and premiums paid, net of fees collected, less internal and external servicing costs.
“Fieldstone is committed to a continued focus on maximizing cost efficiencies in our production channels, while maintaining our credit discipline, through the use of enhanced origination technology and ongoing process improvements. In addition, we are adding sales staff to our existing offices to generate increased loan volume through both our existing and new branches,” stated Michael J. Sonnenfeld.
3
Mortgage Loans Held for Investment, Net
|
| Three Months Ended |
| ||||||
|
| 2005 |
| 2004 |
| ||||
($000) |
| June 30 |
| March 31 |
| June 30 |
| ||
Beginning principal balance |
| $ | 5,091,330 |
| 4,735,063 |
| 2,116,415 |
| |
Loans funded for investment |
| 729,341 |
| 730,798 |
| 1,105,395 |
| ||
Less: | Loan repayments |
| (453,356 | ) | (369,889 | ) | (84,875 | ) | |
| Transfers to mortgage loans held for sale |
| (530,830 | ) | — |
| — |
| |
| Transfers to real estate owned |
| (7,916 | ) | (4,642 | ) | — |
| |
Ending principal balance |
| 4,828,569 |
| 5,091,330 |
| 3,136,935 |
| ||
Plus: Net deferred loan origination (fees)/costs |
| 37,945 |
| 40,959 |
| 25,551 |
| ||
Ending balance mortgage loans held for investment |
| 4,866,514 |
| 5,132,289 |
| 3,162,486 |
| ||
Allowance for loan losses – loans held for investment |
| (30,690 | ) | (26,379 | ) | (11,034 | ) | ||
Ending balance mortgage loans held for investment, net |
| $ | 4,835,824 |
| 5,105,910 |
| 3,151,452 |
| |
Allowance for loan losses as a percentage of the principal balance of loans held for investment |
| 0.64 | % | 0.52 | % | 0.35 | % | ||
The investment portfolio was $4.8 billion at June 30, 2005, which includes a $268 million increase to the portfolio during the quarter following the sale in May 2005 of $557 million of loans classified as held for investment at March 31, 2005. During the second quarter of 2005, loan repayments increased to $453.4 million from $369.9 million during the previous quarter due to the continued seasoning of the portfolio.
At June 30, 2005, $134.6 million, or 2.8%, of mortgage loans held for investment were seriously delinquent (60+ days past due or in the process of foreclosure), compared to $104.5 million, or 2.0%, at March 31, 2005, and compared to $26.8 million, or 0.9%, at June 30, 2004. Fieldstone anticipates that delinquent loans will continue to increase (in principal balance and as a percentage of the investment portfolio), consistent with industry expectations, as the portfolio grows and the average age of loans in the portfolio continues to increase. In Fieldstone’s most seasoned securitized pool of mortgage loans (FMIC 2003-1), the average seasoning of which was twenty three months as of June 30, 2005, 4.9% of the outstanding current principal balance was seriously delinquent and the pool had experienced life-of-pool aggregate losses of $1.1 million, or 0.22% of the original principal balance.
The delinquency status of mortgage loans held for investment at June 30, 2005, March 31, 2005, and June 30, 2004 was as follows:
|
| June 30, 2005 |
| March 31, 2005 |
| June 30, 2004 |
| |||||||||
($ 000) |
| Principal |
| % of |
| Principal |
| % of |
| Principal |
| % of |
| |||
Current |
| $ | 4,467,490 |
| 92.5 | % | $ | 4,768,154 |
| 93.7 | % | $ | 3,003,173 |
| 95.7 | % |
30 days past due |
| 226,477 |
| 4.7 | % | 218,712 |
| 4.3 | % | 106,976 |
| 3.4 | % | |||
60 days past due |
| 55,685 |
| 1.1 | % | 41,156 |
| 0.8 | % | 14,708 |
| 0.5 | % | |||
90+ days past due |
| 32,642 |
| 0.7 | % | 19,606 |
| 0.4 | % | 5,612 |
| 0.2 | % | |||
In process of foreclosure |
| 46,275 |
| 1.0 | % | 43,702 |
| 0.8 | % | 6,466 |
| 0.2 | % | |||
Total |
| $ | 4,828,569 |
| 100.0 | % | $ | 5,091,330 |
| 100.0 | % | $ | 3,136,935 |
| 100.0 | % |
4
Mortgage Loans Held for Sale, Net
|
| Three Months Ended |
| |||||
|
| 2005 |
| 2004 |
| |||
($000) |
| June 30 |
| March 31 |
| June 30 |
| |
Beginning principal balance |
| $ | 272,368 |
| 356,408 |
| 320,071 |
|
Loans funded, held for sale |
| 1,285,666 |
| 725,054 |
| 936,304 |
| |
Transfers from mortgage loans held for investment |
| 639,469 |
| — |
| — |
| |
Less: Loans sold |
| (1,536,713 | ) | (802,732 | ) | (905,469 | ) | |
Transfers to mortgage loans held for investment |
| (108,639 | ) | — |
| — |
| |
Loans paid off /other |
| (6,992 | ) | (6,362 | ) | (2,901 | ) | |
Ending principal balance |
| 545,159 |
| 272,368 |
| 348,005 |
| |
Plus: Net deferred loan origination fees/(costs) |
| 4,145 |
| 2,138 |
| 2,879 |
| |
Less: Valuation allowances |
| (858 | ) | (2,056 | ) | (1,397 | ) | |
Ending balance mortgage loans held for sale, net |
| $ | 548,446 |
| 272,450 |
| 349,487 |
|
Mortgage loans held for sale, net, totaled $548.4 million at June 30, 2005, which consist of all conforming loans funded, together with the non-conforming loans held for sale, which include certain fixed rate loans, second lien loans and ARM loans originated by Fieldstone.
Income Taxes
Fieldstone recognized income tax expense of $2.7 million during the second quarter of 2005 related to the $7.7 million pre-tax net income of Fieldstone Mortgage Company (FMC), Fieldstone’s taxable REIT subsidiary (TRS).
Six Months Ended June 30, 2005 Compared to Six Months Ended June 30, 2004
Net Income and Earnings per Share
Fieldstone’s net income for the six months ended June 30, 2005 was $65.2 million, or $1.34 per share (diluted), an increase of $38.8 million from the $26.4 million, or $0.54 per share (diluted) for the six months ended June 30, 2004. Net income was higher in the six months ended June 30, 2005 than in the same period of the prior year primarily due to increased net interest income on a growing investment portfolio and the increase in gains on sales of mortgage loans, net.
Core Net Income and Core Earnings per Share
Core net income for the six months ended June 30, 2005 was $56.6 million, or $1.17 core per share (diluted), an increase of $46.2 million from the $10.5 million, or $0.21 core per share (diluted) for the six months ended June 30, 2004. Core net income in the six months ended June 30, 2005 was higher than in the same period of the prior year primarily due to the increased net interest income on a growing investment portfolio and the increase in gains on sales of mortgage loans, net.
Mortgage Loan Fundings
Total mortgage loan fundings for the six months ended June 30, 2005 was $3.5 billion compared to $3.6 billion for the six months ended June 30, 2004. Non-conforming mortgage loan fundings decreased $223.7 million offset by the $58.3 million increase in conforming mortgage loan fundings.
Income Taxes
For the six months ended June 30, 2005, Fieldstone recognized income tax expense of $1.8 million related to the $5.3 million pre-tax net income of FMC.
5
Conference Call
Fieldstone will hold a conference call on Thursday, July 28, 2005 at 10:00 a.m. Eastern Time to discuss its second quarter 2005 financial results. The conference call may be accessed by dialing 877-707-9631 (domestic) or 785-832-2041 (international). Please dial in at least 10 minutes prior to the start of the call.
The conference call also will be webcast live on the Internet at www.FieldstoneInvestment.com. Interested participants should go to the company’s website at least 15 minutes prior to the start of the call, select the “Press Room” tab, choose “Live Webcast of 2Q Earnings Call” and follow the related instructions.
A replay of the conference call will be available on Fieldstone’s website at www.FieldstoneInvestment.com shortly after the conclusion of the call on Thursday, July 28, 2005 and will be archived on Fieldstone’s website for a minimum of 30 days following the conference call.
About Fieldstone
Fieldstone Investment Corporation owns and manages a portfolio of non-conforming mortgage loans originated primarily by its mortgage origination subsidiary, Fieldstone Mortgage Company, and has elected to be taxed as a real estate investment trust for federal income tax purposes Founded in 1995, Fieldstone Mortgage Company is a nationwide residential mortgage banking company that originates non-conforming and conforming residential mortgage loans through over 4,700 independent mortgage brokers serviced by 15 regional wholesale operations centers and a network of retail branch offices located throughout the country. Fieldstone is headquartered in Columbia, Maryland.
To find out more about Fieldstone, please visit www.FieldstoneInvestment.com.
Information Regarding Forward Looking Statements
Certain matters discussed in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws and, if so, are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results and the timing of certain events may differ materially from those indicated by such forward-looking statements due to a variety of risks and uncertainties, many of which are beyond Fieldstone’s ability to control or predict, including but not limited to (i) Fieldstone’s ability to successfully implement or change aspects of its portfolio strategy; (ii) interest rate volatility and the level of interest rates generally; (iii) the sustainability of loan origination volumes; (iv) continued availability of credit facilities for the origination of mortgage loans; (v) the ability to sell or securit ize mortgage loans; (vi) deterioration in the credit quality of Fieldstone’s loan portfolio; (vii) the nature and amount of competition; (viii) the impact of changes to the fair value of our interest rate swaps on our net income, which will vary based upon changes in interest rates and could cause net income to vary significantly from quarter to quarter; and (ix) other risks and uncertainties outlined in Fieldstone Investment Corporation’s annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 25, 2005, and other filings with the SEC. These statements are made as of the date of this press release, and Fieldstone undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
6
FIELDSTONE INVESTMENT CORPORATION AND SUBSIDIARIES
Consolidated Statements of Condition
(Unaudited; in thousands, except share data)
|
| June 30, |
| March 31, |
| June 30, |
| |
Assets |
|
|
|
|
|
|
| |
Cash |
| $ | 38,435 |
| 34,810 |
| 34,287 |
|
Restricted cash |
| 5,946 |
| 5,947 |
| 8,897 |
| |
Mortgage loans held for sale, net |
| 548,446 |
| 272,450 |
| 349,487 |
| |
Mortgage loans held for investment |
| 4,866,514 |
| 5,132,289 |
| 3,162,486 |
| |
Allowance for loan losses – loans held for investment |
| (30,690 | ) | (26,379 | ) | (11,034 | ) | |
Mortgage loans held for investment, net |
| 4,835,824 |
| 5,105,910 |
| 3,151,452 |
| |
Accounts receivable |
| 7,204 |
| 11,254 |
| 6,576 |
| |
Accrued interest receivable |
| 23,417 |
| 23,234 |
| 16,247 |
| |
Trustee receivable |
| 95,561 |
| 99,167 |
| 14,446 |
| |
Prepaid expenses and other assets |
| 21,833 |
| 22,368 |
| 9,998 |
| |
Derivative assets, net |
| 28,237 |
| 41,371 |
| 14,607 |
| |
Deferred tax asset, net |
| 16,809 |
| 15,884 |
| 18,994 |
| |
Furniture and equipment, net |
| 9,205 |
| 9,433 |
| 8,339 |
| |
Total assets |
| $ | 5,630,917 |
| 5,641,828 |
| 3,633,330 |
|
|
|
|
|
|
|
|
| |
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
| |
Liabilities: |
|
|
|
|
|
|
| |
Warehouse financing – loans held for sale |
| $ | 361,747 |
| 174,081 |
| 289,480 |
|
Warehouse financing – loans held for investment |
| 670,004 |
| 421,687 |
| 868,442 |
| |
Securitization financing |
| 3,968,008 |
| 4,422,465 |
| 1,877,736 |
| |
Reserve for losses – loans sold |
| 38,411 |
| 35,099 |
| 35,808 |
| |
Accounts payable and accrued expenses |
| 23,551 |
| 19,880 |
| 24,270 |
| |
Total liabilities |
| 5,061,721 |
| 5,073,212 |
| 3,095,736 |
| |
|
|
|
|
|
|
|
| |
Commitments and contingencies |
| — |
| — |
| — |
| |
|
|
|
|
|
|
|
| |
Shareholders’ equity: |
|
|
|
|
|
|
| |
Common stock $0.01 par value; 90,000,000 shares authorized; shares issued and outstanding of 48,835,876 as of June 30, 2005 and March 31, 2005, and 48,845,860 as of |
|
|
|
|
|
|
| |
June 30, 2004 |
| 488 |
| 488 |
| 488 |
| |
Paid-in capital |
| 497,244 |
| 496,534 |
| 498,603 |
| |
Accumulated earnings |
| 76,913 |
| 76,791 |
| 45,310 |
| |
Unearned compensation |
| (5,449 | ) | (5,197 | ) | (6,807 | ) | |
Total shareholders’ equity |
| 569,196 |
| 568,616 |
| 537,594 |
| |
Total liabilities and shareholders’ equity |
| $ | 5,630,917 |
| 5,641,828 |
| 3,633,330 |
|
7
FIELDSTONE INVESTMENT CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited; in thousands, except share and per share data)
|
| Three Months Ended |
| Six Months Ended |
| |||||||
|
| June 30, |
| March 31, |
| June 30, |
| June 30, |
| June 30, |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Revenues: |
|
|
|
|
|
|
|
|
|
|
| |
Interest income: |
|
|
|
|
|
|
|
|
|
|
| |
Loans held for investment |
| $ | 80,574 |
| 82,836 |
| 42,408 |
| 163,410 |
| 69,998 |
|
Loans held for sale |
| 14,226 |
| 5,372 |
| 6,139 |
| 19,598 |
| 12,591 |
| |
Total interest income |
| 94,800 |
| 88,208 |
| 48,547 |
| 183,008 |
| 82,589 |
| |
Interest expense: |
|
|
|
|
|
|
|
|
|
|
| |
Loans held for investment |
| 41,773 |
| 38,608 |
| 11,266 |
| 80,381 |
| 18,431 |
| |
Loans held for sale |
| 6,276 |
| 1,413 |
| 1,318 |
| 7,689 |
| 2,728 |
| |
Total interest expense |
| 48,049 |
| 40,021 |
| 12,584 |
| 88,070 |
| 21,159 |
| |
Net interest income |
| 46,751 |
| 48,187 |
| 35,963 |
| 94,938 |
| 61,430 |
| |
Provision for loan losses – loans held for investment |
| 6,863 |
| 4,494 |
| 6,778 |
| 11,357 |
| 8,957 |
| |
Net interest income after provision for loan losses |
| 39,888 |
| 43,693 |
| 29,185 |
| 83,581 |
| 52,473 |
| |
Gains on sales of mortgage loans, net |
| 27,254 |
| 9,669 |
| 12,950 |
| 36,923 |
| 27,118 |
| |
Other income (expense) - portfolio derivatives |
| (9,432 | ) | 20,342 |
| 20,376 |
| 10,910 |
| 10,544 |
| |
Fees and other income |
| 144 |
| 393 |
| 988 |
| 537 |
| 1,831 |
| |
Total revenues |
| 57,854 |
| 74,097 |
| 63,499 |
| 131,951 |
| 91,966 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Expenses: |
|
|
|
|
|
|
|
|
|
|
| |
Salaries and employee benefits |
| 19,707 |
| 19,742 |
| 20,665 |
| 39,449 |
| 41,727 |
| |
Occupancy |
| 1,975 |
| 1,795 |
| 1,570 |
| 3,770 |
| 3,067 |
| |
Depreciation and amortization |
| 828 |
| 795 |
| 609 |
| 1,623 |
| 1,128 |
| |
Servicing fees(1) |
| 1,743 |
| 2,604 |
| 1,272 |
| 4,347 |
| 1,926 |
| |
General and administration |
| 7,792 |
| 7,998 |
| 7,948 |
| 15,790 |
| 14,764 |
| |
Total expenses |
| 32,045 |
| 32,934 |
| 32,064 |
| 64,979 |
| 62,612 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Income before income taxes |
| 25,809 |
| 41,163 |
| 31,435 |
| 66,972 |
| 29,354 |
| |
Provision for income tax (expense) benefit |
| (2,734 | ) | 941 |
| (1,312 | ) | (1,793 | ) | (3,002 | ) | |
Net income |
| $ | 23,075 |
| 42,104 |
| 30,123 |
| 65,179 |
| 26,352 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings per share of common stock: |
|
|
|
|
|
|
|
|
|
|
| |
Basic: |
| $ | 0.47 |
| 0.87 |
| 0.62 |
| 1.34 |
| 0.54 |
|
Diluted: |
| $ | 0.47 |
| 0.87 |
| 0.62 |
| 1.34 |
| 0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic weighted average common shares outstanding |
| 48,462,126 |
| 48,461,987 |
| 48,325,860 |
| 48,462,057 |
| 48,325,860 |
| |
Diluted weighted average common shares outstanding |
| 48,462,126 |
| 48,519,518 |
| 48,522,174 |
| 48,462,057 |
| 48,554,060 |
| |
(1) Servicing fees for the three and six months ended June 30, 2005 have been reduced by approximately $0.9 million related to compensatory interest received from the sub-servicer, based on an analysis in the second quarter of information received from the sub-servicer.
8
FIELDSTONE INVESTMENT CORPORATION AND SUBSIDIARIES
Schedule 1 - - Supplemental Data
(Unaudited; dollars in thousands)
|
| Three Months Ended |
| Six Months Ended |
| |||||||
|
| June 30, |
| March 31, |
| June 30 |
| June 30, |
| June 30 |
| |
Mortgage Loan Fundings |
|
|
|
|
|
|
|
|
|
|
| |
Non-Conforming |
| $ | 1,633,613 |
| 1,103,681 |
| 1,675,854 |
| 2,737,294 |
| 2,960,963 |
|
Conforming |
| 381,394 |
| 352,171 |
| 365,845 |
| 733,565 |
| 675,295 |
| |
Total |
| $ | 2,015,007 |
| 1,455,852 |
| 2,041,699 |
| 3,470,859 |
| 3,636,258 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-Conforming Mortgage Loan Funding Statistics |
|
|
|
|
|
|
|
|
|
|
| |
Weighted average interest rate |
| 7.3 | % | 7.4 | % | 7.0 | % | 7.4 | % | 7.0 | % | |
Weighted average credit score |
| 653 |
| 652 |
| 654 |
| 652 |
| 653 |
| |
Weighted average loan to value |
| 84.1 | % | 83.6 | % | 84.3 | % | 83.9 | % | 84.8 | % | |
Full documentation (1) |
| 57.4 | % | 55.8 | % | 64.1 | % | 56.8 | % | 62.3 | % | |
Percentage held for investment (2) |
| 45.8 | % | 16.4 | % | 66.0 | % | 33.9 | % | 65.5 | % | |
|
|
|
|
|
|
|
|
|
|
|
| |
Mortgage Loan Sales Statistics |
|
|
|
|
|
|
|
|
|
|
| |
Mortgage loan sales |
|
|
|
|
|
|
|
|
|
|
| |
Non-Conforming |
| $ | 1,158,674 |
| 488,274 |
| 500,869 |
| 1,646,948 |
| 1,161,124 |
|
Conforming |
| 378,039 |
| 314,458 |
| 404,600 |
| 692,497 |
| 686,193 |
| |
Total |
| $ | 1,536,713 |
| 802,732 |
| 905,469 |
| 2,339,445 |
| 1,847,317 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average whole loan sales price over par |
|
|
|
|
|
|
|
|
|
|
| |
Non-Conforming sales |
| 3.4 | % | 2.5 | % | 3.2 | % | 3.1 | % | 3.2 | % | |
Conforming sales |
| 2.2 | % | 2.1 | % | 1.9 | % | 2.2 | % | 2.0 | % | |
Total |
| 3.1 | % | 2.4 | % | 2.6 | % | 2.8 | % | 2.7 | % | |
|
|
|
|
|
|
|
|
|
|
|
| |
Average hedge gain (loss) on whole loan sales |
|
|
|
|
|
|
|
|
|
|
| |
Non-Conforming sales |
| (0.07 | )% | 0.09 | % | 0.04 | % | (0.02 | )% | (0.05 | )% | |
Conforming sales |
| (0.15 | )% | 0.10 | % | 0.14 | % | (0.03 | )% | 0.04 | % | |
Total |
| (0.09 | )% | 0.10 | % | 0.08 | % | (0.02 | )% | (0.01 | )% | |
|
|
|
|
|
|
|
|
|
|
|
| |
Provision for loan losses - loans sold (3) |
| 0.2 | % | 0.3 | % | 0.4 | % | 0.3 | % | 0.4 | % | |
Gain on sale margin (4) |
| 1.8 | % | 1.2 | % | 1.4 | % | 1.6 | % | 1.5 | % | |
|
|
|
|
|
|
|
|
|
|
|
| |
Statements of Condition Data |
|
|
|
|
|
|
|
|
|
|
| |
Average equity as a percentage of average assets |
| 9.9 | % | 10.1 | % | 16.9 | % | 10.0 | % | 19.7 | % | |
|
|
|
|
|
|
|
|
|
|
|
| |
Debt to capital |
| 8.8 |
| 8.8 |
| 5.6 |
|
|
|
|
| |
Book value per share |
| $ | 11.66 |
| 11.64 |
| 11.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Mortgage loans held for sale, net |
|
|
|
|
|
|
|
|
|
|
| |
Non-Conforming |
| $ | 407,499 |
| 133,655 |
| 260,255 |
|
|
|
|
|
Conforming |
| 140,947 |
| 138,795 |
| 89,232 |
|
|
|
|
| |
Total |
| $ | 548,446 |
| 272,450 |
| 349,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Seriously delinquent - mortgage loans held for sale (5) |
| 0.4 | % | 1.1 | % | 0.6 | % |
|
|
|
| |
Seriously delinquent - mortgage loans held for investment (5) |
| 2.8 | % | 2.0 | % | 0.9 | % |
|
|
|
| |
Weighted average credit score - mortgage loans held for investment |
| 650 |
| 651 |
| 650 |
|
|
|
|
| |
(1) Full documentation of non-conforming mortgage loan fundings includes bank statements.
(2) Data for the three months ended March 31, 2005 reflects $557 million of loans initially funded for investment and subsequently transferred to held for sale in April 2005.
(3) Provision for loan losses - loans sold is calculated as provision for loan losses - loans sold divided by total mortgage loan sales. The provision is recorded as a reductions of gains on sales of mortgage loans.
(4) Gain on sale margin is calculated as gains on sales of mortgage loans, net divided by total mortgage loan sales.
(5) Seriously delinquent is defined as 60 plus days past due plus in the process of foreclosure.
9
FIELDSTONE INVESTMENT CORPORATION AND SUBSIDIARIES
Schedule 2––Non-GAAP Financial Measures and Regulation G Reconciliations
Core net income, core earnings per share (diluted), core net interest income and margin, core return on average assets and core return on average equity and cost to produce are non-GAAP financial measures of Fieldstone’s earnings within the meaning of Regulation G promulgated by the Securities and Exchange Commission.
Core net income is net income less the non-cash mark to market gains (losses) on interest rate swap and cap agreements.
Core earnings per share (diluted) is core net income available to common shareholders divided by the weighted average diluted number of shares outstanding during the period.
Core return on average assets is core net income divided by average assets.
Core return on average equity is core net income divided by core average equity, which is equity balance at the end of the reporting period less the cumulative non-cash mark to market gains or losses on interest rate swap and cap agreements.
Core net interest income after provision for loan losses is net interest income after provision for loan losses adjusted to include (a) the net cash settlements on the existing interest rate swaps and caps economically hedging the variable rate debt financing Fieldstone’s investment portfolio and (b) the net cash settlements incurred or paid to terminate these derivatives prior to maturity related to derivatives related to loans held for investment. Core net interest income after provision for loan losses does not include the net cash settlements incurred or paid to terminate swaps or caps related to loans ultimately sold, which are a component of “Gains on sales of mortgage loans, net” on the consolidated statements of operations.
Cost to produce is total expenses plus deferred origination costs and premiums paid, net of fees collected, less internal and external servicing costs.
Management believes the core financial measures are useful because they include the current period effects of Fieldstone’s economic hedging program but exclude the non-cash mark to market derivative value changes. Fieldstone uses interest rate swap and cap agreements to create economic hedges of the variable rate debt it issues to finance its investment portfolio. Changes in the fair value of these agreements, which reflect the potential future cash settlements over the remaining lives of the agreements according to the market’s changing projections of interest rates, are recognized in the line item “Other income (expense) – portfolio derivatives” on the consolidated statements of operations. This single line item includes both the actual cash settlements related to the agreements that occurred during the period and recognition of the non-cash changes in the fair value of the agreements over the period. The actual cash settlements include regular monthly payments or receipts under the terms of the swap agreements and amounts paid or received to terminate the agreements prior to maturity.
The amounts of cash settlements and non-cash changes in derivative value that were included in the line item “Other income (expense) – portfolio derivatives” were:
|
| Three Months Ended |
| Six Months Ended |
| |||||||
|
| 2005 |
| 2004 |
| 2005 |
| 2004 |
| |||
($000) |
| June 30 |
| March 31 |
| June 30 |
| June 30 |
| June 30 |
| |
Non-cash changes in fair value |
| $ | (12,087 | ) | 20,628 |
| 22,158 |
| 8,541 |
| 15,896 |
|
Cash settlements received (paid) |
| 2,655 |
| (286 | ) | (1,782 | ) | 2,369 |
| (5,352 | ) | |
Other income (expense) – portfolio derivatives |
| $ | (9,432 | ) | 20,342 |
| 20,376 |
| 10,910 |
| 10,544 |
|
Management believes that the presentation of cost to produce provides useful information to investors regarding financial performance because this measure includes additional costs to originate mortgage loans, both recognized when incurred and deferred costs, which are not all included in GAAP total expenses.
As required by Regulation G, a reconciliation of each of these non-GAAP financial measures to the most directly comparable measure under GAAP is provided in the remainder of this Schedule 2.
10
Regulation G Reconciliation—Core Net Income and Core Earnings Per Share—Diluted
|
| Three Months Ended |
| Six Months Ended |
| ||||||||
(Dollars in 000’s, except share and per share data) |
| June 30, |
| March 31, |
| June 30, |
| June 30, |
| June 30, |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Core Net Income Reconciliation: |
|
|
|
|
|
|
|
|
|
|
| ||
Net income |
| $ | 23,075 |
| 42,104 |
| 30,123 |
| 65,179 |
| 26,352 |
| |
Less: | Mark to market (gain) loss on portfolio derivatives included in “Other income (expense) - portfolio derivatives” |
|
|
|
|
|
|
|
|
|
|
| |
| Mark to market interest rate swaps |
| 11,788 |
| (20,558 | ) | (21,074 | ) | (8,770 | ) | (16,319 | ) | |
| Mark to market interest rate cap |
| 299 |
| (70 | ) | (1,084 | ) | 229 |
| 423 |
| |
| Total mark to market on portfolio derivatives |
| 12,087 |
| (20,628 | ) | (22,158 | ) | (8,541 | ) | (15,896 | ) | |
Core net income |
| $ | 35,162 |
| 21,476 |
| 7,965 |
| 56,638 |
| 10,456 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Core Earnings per Share-Diluted Reconciliation: |
|
|
|
|
|
|
|
|
|
|
| ||
Net income |
| $ | 23,075 |
| 42,104 |
| 30,123 |
| 65,179 |
| 26,352 |
| |
Less: | Mark to market (gain) loss on portfolio derivatives |
| 12,087 |
| (20,628 | ) | (22,158 | ) | (8,541 | ) | (15,896 | ) | |
| Unvested restricted stock dividends |
| (176 | ) | — |
| (37 | ) | (176 | ) | (37 | ) | |
| Core net income available to common shareholders |
| $ | 34,986 |
| 21,476 |
| 7,928 |
| 56,462 |
| 10,419 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Earnings per share - diluted |
| $ | 0.47 |
| 0.87 |
| 0.62 |
| 1.34 |
| 0.54 |
| |
Core earnings per share - diluted |
| $ | 0.72 |
| 0.44 |
| 0.16 |
| 1.17 |
| 0.21 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Diluted weighted average common shares outstanding |
| 48,462,126 |
| 48,519,518 |
| 48,522,174 |
| 48,462,057 |
| 48,554,060 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Core Return on Assets and Core Return on Equity: |
|
|
|
|
|
|
|
|
|
|
| ||
Average total equity |
| $ | 557,817 |
| 545,843 |
| 526,615 |
| 551,830 |
| 520,532 |
| |
Average total assets |
| 5,650,417 |
| 5,428,987 |
| 3,119,077 |
| 5,540,293 |
| 2,638,688 |
| ||
Core average total equity |
| 529,819 |
| 518,996 |
| 521,264 |
| 524,408 |
| 520,583 |
| ||
Core average total assets |
| 5,650,417 |
| 5,428,987 |
| 3,119,077 |
| 5,540,293 |
| 2,638,688 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Return on average equity (annualized) |
| 16.5 | % | 30.9 | % | 22.9 | % | 23.6 | % | 10.1 | % | ||
Return on average assets (annualized) |
| 1.6 | % | 3.1 | % | 3.9 | % | 2.4 | % | 2.0 | % | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Core return on average equity (annualized) |
| 26.5 | % | 16.6 | % | 6.1 | % | 21.6 | % | 4.0 | % | ||
Core return on average assets (annualized) |
| 2.5 | % | 1.6 | % | 1.0 | % | 2.0 | % | 0.8 | % | ||
11
Regulation G Reconciliation—Core Net Interest Income & Core Yield Analysis
|
| Three Months Ended |
| Six Months Ended |
| ||||||||
(Dollars in 000’s) |
| June 30, |
| March 31, |
| June 30, |
| June 30, |
| June 30, |
| ||
Net interest income after provision for loan losses |
| $ | 39,888 |
| 43,693 |
| 29,185 |
| 83,581 |
| 52,473 |
| |
Plus: | Net cash settlements received (paid) on portfolio derivatives included in “Other income (expense) - portfolio derivatives |
| 2,655 |
| (286 | ) | (1,782 | ) | 2,369 |
| (5,352 | ) | |
Core net interest income after provision for loan losses |
| $ | 42,543 |
| 43,407 |
| 27,403 |
| 85,950 |
| 47,121 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Interest income loans held for investment |
| $ | 80,574 |
| 82,836 |
| 42,408 |
| 163,410 |
| 69,998 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Interest expense loans held for investment |
| 41,773 |
| 38,608 |
| 11,266 |
| 80,381 |
| 18,431 |
| ||
Plus: Net cash settlements (received) paid on portfolio derivatives |
| (2,655 | ) | 286 |
| 1,782 |
| (2,369 | ) | 5,352 |
| ||
Core interest expense - loans held for investment |
| 39,118 |
| 38,894 |
| 13,048 |
| 78,012 |
| 23,783 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Core net interest income loans held for investment |
| 41,456 |
| 43,942 |
| 29,360 |
| 85,398 |
| 46,215 |
| ||
Provision for loan losses loans held for investment |
| 6,863 |
| 4,494 |
| 6,778 |
| 11,357 |
| 8,957 |
| ||
Core net interest income loans held for investment after provision for loan losses |
| 34,593 |
| 39,448 |
| 22,582 |
| 74,041 |
| 37,258 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income loans held for sale |
| 7,950 |
| 3,959 |
| 4,821 |
| 11,909 |
| 9,863 |
| ||
Core net interest income after provision for loan losses |
| $ | 42,543 |
| 43,407 |
| 27,403 |
| 85,950 |
| 47,121 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Core Yield Analysis |
|
|
|
|
|
|
|
|
|
|
| ||
Core yield analysis - loans held for investment |
|
|
|
|
|
|
|
|
|
|
| ||
Yield on loans held for investment |
| 6.9 | % | 6.8 | % | 6.6 | % | 6.9 | % | 6.6 | % | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Cost of financing for loans held for investment |
| 3.7 | % | 3.3 | % | 1.9 | % | 3.5 | % | 2.0 | % | ||
Net cash settlements (received) paid on portfolio derivatives |
| (0.2 | )% | 0.0 | % | 0.3 | % | (0.1 | )% | 0.5 | % | ||
Core cost of financing for loans held for investment |
| 3.5 | % | 3.3 | % | 2.2 | % | 3.4 | % | 2.5 | % | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Net yield on loans held for investment |
| 3.4 | % | 3.6 | % | 4.8 | % | 3.5 | % | 4.8 | % | ||
Net cash settlements received (paid) on portfolio derivatives |
| 0.2 | % | 0.0 | % | (0.3 | )% | 0.1 | % | (0.5 | )% | ||
Core net yield on loans held for investment |
| 3.6 | % | 3.6 | % | 4.5 | % | 3.6 | % | 4.3 | % | ||
Provision for loan losses - loans held for investment |
| (0.6 | )% | (0.4 | )% | (1.0 | )% | (0.5 | )% | (0.8 | )% | ||
Core yield on loans held for investment after provision for loan losses |
| 3.0 | % | 3.2 | % | 3.5 | % | 3.1 | % | 3.5 | % | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Core yield analysis - loans held for sale |
|
|
|
|
|
|
|
|
|
|
| ||
Yield on loans held for sale |
| 6.9 | % | 7.1 | % | 6.9 | % | 7.0 | % | 7.1 | % | ||
Cost of financing for loans held for sale |
| 4.1 | % | 4.0 | % | 2.2 | % | 4.1 | % | 2.4 | % | ||
Net yield on loans held for sale |
| 3.9 | % | 5.2 | % | 5.4 | % | 4.2 | % | 5.5 | % | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Core yield analysis - loans held for investment and loans held for sale |
|
|
|
|
|
|
|
|
|
|
| ||
Yield - net interest income on loans held for sale and loans held for |
|
|
|
|
|
|
|
|
|
|
| ||
investment after provision for loan losses |
| 2.9 | % | 3.4 | % | 4.0 | % | 3.1 | % | 4.2 | % | ||
Net cash settlements received (paid) on portfolio derivatives |
| 0.2 | % | 0.0 | % | (0.3 | )% | 0.1 | % | (0.4 | )% | ||
Core yield - net interest income on loans held for sale and loans held for investment after provision for loan losses |
| 3.1 | % | 3.4 | % | 3.7 | % | 3.2 | % | 3.8 | % | ||
|
|
|
|
|
|
|
|
|
|
|
| ||
Average Balance Data |
|
|
|
|
|
|
|
|
|
|
| ||
Mortgage loans held for sale |
| $ | 811,753 |
| 304,279 |
| 354,493 |
| 559,418 |
| 353,019 |
| |
Mortgage loans held for investment |
| 4,590,662 |
| 4,884,311 |
| 2,553,929 |
| 4,736,675 |
| 2,106,152 |
| ||
Warehouse financing - mortgage loans held for sale |
| 601,742 |
| 139,641 |
| 235,788 |
| 371,968 |
| 224,795 |
| ||
Warehouse financing -mortgage loans held for investment |
| 223,368 |
| 518,852 |
| 559,012 |
| 370,294 |
| 561,105 |
| ||
Securitization financing |
| 4,242,147 |
| 4,187,989 |
| 1,747,666 |
| 4,215,218 |
| 1,293,750 |
| ||
12
Regulation G Reconciliation–Cost to Produce
|
| Three Months Ended |
| Six Months Ended |
| |||||||
(Dollars in 000’s) |
| June 30, |
| March 31, |
| June 30, |
| June 30, |
| June 30, |
| |
Total expenses |
| $ | 32,045 |
| 32,934 |
| 32,064 |
| 64,979 |
| 62,612 |
|
Deferred origination costs |
| 12,703 |
| 8,978 |
| 14,510 |
| 21,681 |
| 25,371 |
| |
Servicing costs - internal and external |
| (2,504 | ) | (3,319 | ) | (1,968 | ) | (5,823 | ) | (3,396 | ) | |
Total general and administrative costs |
| 42,244 |
| 38,593 |
| 44,606 |
| 80,837 |
| 84,587 |
| |
Premiums paid, net of fees collected |
| 5,568 |
| 4,565 |
| 3,336 |
| 10,133 |
| 6,521 |
| |
Cost to produce |
| 47,812 |
| 43,158 |
| 47,942 |
| 90,970 |
| 91,108 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Mortgage Loan Fundings: |
|
|
|
|
|
|
|
|
|
|
| |
Non-Conforming |
| $ | 1,633,613 |
| 1,103,681 |
| 1,675,854 |
| 2,737,294 |
| 2,960,963 |
|
Conforming |
| 381,394 |
| 352,171 |
| 365,845 |
| 733,565 |
| 675,295 |
| |
Total |
| $ | 2,015,007 |
| 1,455,852 |
| 2,041,699 |
| 3,470,859 |
| 3,636,258 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Cost to produce as% of total mortgage loan fundings: |
|
|
|
|
|
|
|
|
|
|
| |
Non-Conforming |
| 2.36 | % | 3.09 | % | 2.41 | % | 2.65 | % | 2.56 | % | |
Conforming |
| 2.44 | % | 2.57 | % | 2.06 | % | 2.50 | % | 2.25 | % | |
Total |
| 2.37 | % | 2.96 | % | 2.35 | % | 2.62 | % | 2.51 | % | |
|
|
|
|
|
|
|
|
|
|
|
| |
Cost to produce as% of total mortgage loan fundings: |
|
|
|
|
|
|
|
|
|
|
| |
Total expenses |
| 1.59 | % | 2.26 | % | 1.57 | % | 1.87 | % | 1.72 | % | |
Deferred origination costs |
| 0.63 | % | 0.62 | % | 0.71 | % | 0.62 | % | 0.70 | % | |
Servicing costs - internal and external |
| (0.12 | )% | (0.23 | )% | (0.10 | )% | (0.17 | )% | (0.09 | )% | |
Total general and administrative costs |
| 2.10 | % | 2.65 | % | 2.18 | % | 2.33 | % | 2.33 | % | |
Premiums paid, net of fees collected |
| 0.28 | % | 0.31 | % | 0.16 | % | 0.29 | % | 0.18 | % | |
Cost to produce as% of total mortgage loan fundings |
| 2.37 | % | 2.96 | % | 2.35 | % | 2.62 | % | 2.51 | % | |
13