FBR & Co (FBRC) 8-K Regulation FD Disclosure

Financial data as of June 30, 2015

Exhibit 99.1

FBR & CO. (NASDAQ: FBRC) CAUTIONARY STATEMENT

1

FBR

&

Co.

was

formed

as

a

Virginia

corporation

in

June

2006

to

be

the

holding

company

for

FBRC.

This

document

is

intended

for

information

purposes

only,

and

shall

not

constitute

a

solicitation

or

an

offer

to

buy

or

sell,

any

security

or

services,

or

an

endorsement

of

any

particular

investment

strategy.

This

document

is

intended

solely

for

the

use

of

the

party

to

whom

FBR

has

provided

it,

and

is

not

to

be

reprinted

or

redistributed

without

the

permission

of

FBR.

All

references

to

“FBR”

refer

to

FBR

&

Co.

and

its

subsidiaries

as

appropriate.

Investment

banking,

sales,

trading,

and

research

services

1

are

provided

by

FBR

Capital

Markets

&

Co.,

Inc.

(FBRC).

FBRC

is

a

broker-dealer

registered

with

the

SEC

and

is

a

member

of

FINRA.

Loan

Trading

services

are

provided

by

FBR’s

affiliate

–

FBR

Capital

Markets

LT,

Inc.

CAUTIONS

ABOUT

FORWARD-LOOKING

INFORMATION

This

presentation

and

the

information

incorporated

by

reference

in

this

presentation

include

forward

looking

statements

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933,

as

amended,

and

Section

21E

of

the

Securities

Exchange

Act

of

1934,

as

amended.

Some

of

the

forward-looking

statements

can

be

identified

by

the

use

of

forward-looking

words

such

as

“believes,”

“expects,”

“may,”

“will,”

“should,”

“seeks,”

“approximately,”

“plans,”

“estimates”

or

“anticipates”

or

the

negative

of

those

words

or

other

comparable

terminology.

Statements

concerning

projections,

future

performance

developments,

events,

revenues,

expenses,

earnings,

run

rates,

and

any

other

guidance

on

present

or

future

periods

constitute

forward-looking

statements.

Such

statements

include,

but

are

not

limited

to,

those

relating

to

the

effects

of

growth,

revenues

and

earnings,

our

principal

investing

activities,

levels

of

assets

under

management

and

our

current

equity

capital

levels.

Forward-looking

statements

involve

risks

and

uncertainties.

You

should

be

aware

that

a

number

of

important

factors

could

cause

our

actual

results

to

differ

materially

from

those

in

the

forward-looking

statements.

These

factors

include,

but

are

not

limited

to,

deterioration

in

the

business

environment

in

the

specific

sectors

in

which

we

focus

or

a

decline

in

the

market

for

securities

of

companies

within

these

sectors,

substantial

fluctuations

in

our

financial

results,

our

ability

to

retain

senior

professionals,

pricing

and

other

competitive

pressures,

changes

in

laws

and

regulations

and

industry

practices

that

affect

our

sales

and

trading

business,

incurrence

of

losses

in

the

future,

the

singular

nature

of

our

capital

markets

and

strategic

advisory

engagements,

competition

among

financial

services

firms

for

business

and

personnel,

larger

and

more

frequent

capital

commitments

in

our

trading

and

underwriting

business,

limitations

on

our

access

to

capital,

infrastructure

or

operational

failures,

the

overall

environment

for

interest

rates,

changes

in

our

business

strategy,

and

our

ability

to

deploy

offering

proceeds.

We

will

not

necessarily

update

the

information

presented

or

incorporated

by

reference

in

this

presentation

if

any

of

these

forward

looking

statements

turn

out

to

be

inaccurate.

Risks

affecting

our

business

are

described

throughout

our

annual

report

on

Form

10-K

and

our

quarterly

reports

on

Form

10-Q,

especially

in

the

section

entitled

“Risk

Factors”,

filed

with

the

Securities

and

Exchange

Commission.

Our

latest

annual

report

and

quarterly

reports

should

be

read

for

a

complete

understanding

of

our

business

and

the

risks

associated

with

our

business.

1. Research is provided by FBRC’s Research department, which is independent from the Investment Banking department of FBRC, and has the sole authority to determine which companies receive research

coverage and the recommendation contained in the coverage. In the normal course of its business, FBRC seeks to perform investment banking and other fee generating services for companies that are the subject

of FBRC research reports.  Research analysts are eligible to receive bonus compensation that is based on FBRC’s overall operating revenues, including revenues generated by FBRC’s investment banking

department.

Specific

information

is

contained

in

each

research

report

concerning

FBRC’s

relationship

with

the

company

that

is

the

subject

of

the

report.

Ticker:  FBRC

Founded:  1989

Employees

1

:  293

Headquarters:

Arlington, VA

Offices:

Boston, MA

Houston, TX

Irvine, CA

New York, NY

San Francisco, CA

Top Tier Middle Market Equities Franchise

Leading

market

share

in

two

execution

categories

–

144As

and

At-the-Market

(ATM)

issuances

Experienced, specialized sales force

combined with focused, high-touch trading department

Deep research

within seven industries and highly regarded Washington policy research

Experienced

senior management team

Inside employee ownership aligns management and shareholder interests

Well Capitalized,

Stable Financial Profile

35 percent operating margin before non-comp fixed expenses provide significant operating leverage

Unlevered balance sheet with $235

million in shareholders’ equity

Tangible

book value per share of $28.52

2

, up 81 percent since 1/1/2012

Committed to effective, accretive return of capital

to shareholders; Since 2010

3

, returned significant value

to shareholders with over $206 million in accretive share repurchases

Initiation of quarterly $0.20 per share cash dividend provides another avenue to return capital consistently

over time

FBR & CO. HIGHLIGHTS

2

1.

Employee

data

as

of

6/30/2015.

2.

Balance

sheet

data

as

of

6/30/2015;

total

shares

outstanding

of

8,070,000

used

for

per

share

calculations.

3.

Repurchase

data

through

6/30/2015

3

Stability of business platform and balance sheet supports strategic growth in industry

verticals and complementary business lines to capitalize on competitive advantages

GROWTH INITIATIVES

Capitalizing on expanded banking opportunities in growth industries and products

–

Addition of Healthcare focus provides access to the biggest sector of the economy, leading to more

opportunistic executions in our core IPO and 144A products

–

Expanding our product footprint through enhanced capabilities, such as At-the-Market (ATM) offerings

and retail distribution

Organically building momentum in advisory business with several dedicated M&A bankers

embedded across industry verticals

Enhancing services through complementary securities lending business

–

High margin business with balances and profitability progressing according to expectations

NOTE: Research is provided by FBRC’s Research department, which is independent from the Investment Banking department of FBRC, and has the sole authority to determine which companies receive research coverage and the recommendation

contained in the coverage.  In the normal course of its business, FBRC seeks to perform investment banking and other fee generating services for companies that are the subject of FBRC research reports.  Research analysts are eligible to receive

bonus compensation that is based on FBRC’s overall operating revenues, including revenues generated by FBRC’s Investment Banking Department. Specific information is contained in each research report concerning FBRC’s relationship with the

company that is the subject of the report. 

MLV & Co. Acquisition

FBR ACQUIRES MLV & CO.

5

Broadens FBR’s equity capital markets presence and expands its investment banking

capabilities

Compatible industry expertise, additive capabilities and complementary professionals

Expands capital markets product suite of equity and equity-linked financing solutions that are relevant

to small cap issuers

Increases FBR’s ability to extend issuer relationships deeper into their corporate life cycles through the

addition of At-the-Market (ATM), preferred and debt (“Baby Bond”) offering expertise

Highly complementary industry expertise in key areas of opportunity

o

Healthcare, Energy and Specialty Finance

Transaction details

Acquisition will be immediately accretive to revenue per head and earnings

Transaction expected to close in early September 2015

Approximately 20 employees added to headcount

6

ACQUISITION MERGES TWO MARKET LEADERS

At-the-Market Issuance

01/01/2013

-

05/11/2015

All Industries | All Market Caps

Rank

Investment Bank

No.

1

$MM

2

% Deals

1

MLV

119

$   4,144

24.0

2

Bank of America

96

$   7,640

19.4

3

Cantor Fitzgerald

86

$   3,579

17.3

4

Wells Fargo

84

$   5,355

16.9

5

RBC

65

$   3,752

13.1

Institutional privates for early-stage issuers and ownership transitions

ATM offerings for public companies

Applicable to small & large cap companies

Preferred and Convertible securities

“Baby Bond” issues

Source:  Dealogic, Company Filings; See Appendix I for expanded ATM league tables

1. The sum of the deals in the Number of Deals column is greater than the actual number of deals completed to account for co-managed transactions.  Excludes quarterly refilings for closed-end funds.  2. Amount filed, split equally

among bookruners.

Combining FBR and MLV capabilities will make us the market leader in 144A Equity

offerings and At-the-Market (ATM) issuances serving a broad client base:

144A Equity Offerings (PIPO)

01/01/2010

-

06/30/2015

All Industries | All Market Caps

Rank

Bookrunner

No.

$MM

% Volume

1

FBR

21

$

6,042

59.3

2

Deutsche Bank

1

$      720

7.1

3

Macquarie Group

5

$      370

3.6

4

Astrup Fearnley AS

3

$      303

3.0

5

BMO

3

$      270

2.7

Our Revenue / Expense Strategy

Leads to Profitability

REVENUE MIX WEIGHTED TO HIGH MARGIN BANKING BUSINESS

8

Revenue

Mix

–

High

mix

of

banking-to-

brokerage revenue results in competitive revenue

per head

By generating the largest portion of our revenue

from the highest ROE business (i.e., initial capital

raising), FBR is able to pay for production and

retain key employees

Compensation

/

Net

Revenue

–

Maintain

an appropriate and sustainable ratio of

compensation to net revenue

Low

Fixed

Costs

–

Leaner

back

office

provides more profitable employee base; ongoing

strict management of non-comp fixed expenses

keeps break-even low

Source: 10K and 10Q filings

Revenue

Mix

–

Banking

vs.

Brokerage

July

1,

2014

–

June

30,

2015

Compensation-to-Net Revenue Ratio (percent)

REVENUE GENERATED THROUGH BROAD INDUSTRY COVERAGE

9

FBR maintains and continues to grow expertise in multiple verticals, creating sustained

value for clients and generating revenue across economic market environments

Annual Banking and Trading Revenues by Industry Vertical ($ millions)

EXPENSE DISCIPLINE

10

LTM

is

defined

as

July

1,

2014

–

June

30,

2015

FBR’s focus on expenses has led to predictability within those elements of the income

statement that are more controllable

Significantly limits the likelihood and degree of losses that may be sustained, even in

very weak revenue environments

Non-Compensation Fixed Costs ($ millions)

COMPENSATION-TO-NET REVENUE RATIO

11

LTM

is

defined

as

July

1,

2014

–

June

30,

2015

FBR’s discipline around this ratio, despite varying revenue generation, is an important

element of our expense strategy and our commitment to creating value for shareholders

in all environments

Compensation-to-Net Revenue Ratio ($ millions)

12

POSITIONED TO DELIVER POSITIVE NET REVENUE

Median quarterly

revenue ~ $43mm

Quarterly Net Revenue ($ millions)

1,2

1. Results

as

originally

reported

(asset

management

operations

included

in

2009

–

2011,

excluded

in

2012

and

beyond

as

discontinued

operations).

2008

Net

Revenue

excludes

$81.3

million

in

investment

losses.

2.

Revenue

from

NMI

Holdings,

Inc.

investment banking transaction of $38.3 million removed from 1Q13 net revenue and added to 2Q12 net revenue to reflect its April 2012 transaction closing date. GAAP Net Revenue for 2013 and 2012 was $259.8  million and $151.5 million,

respectively, and for 1Q13 and 2Q12 and was $117.9 and $32.7, respectively.  Earnings impact of change is estimated to be $20.5 million, which assumes $17 million variable compensation and 4% effective tax rate.

Despite quarterly volatility, the implementation of our restructuring plan in 2011 has

positioned FBR to deliver positive annual revenue and earnings

Annual Net Revenue ($ thousands)

1,2

13

NET REVENUE PER HEAD –

KEY METRIC FOR FBR

Revenue per Employee ($ thousands)

2

$500K per Head 

benchmark

1.

Beginning of year  headcount.  2.  Source:  SEC filings. Revenue from NMI Holdings, Inc. investment banking transaction of $38.3 million removed from 2013 net revenue and added to 2012 net revenue to reflect its April 2012

transaction closing date. GAAP Net Revenue for 2013 and 2012 was $259.8 million and $151.5 million, respectively.  Earnings impact of change is estimated to be $20.5 million, which assumes $17 million variable compensation and 4%

effective tax rate

FBR is consistently profitable at revenue levels exceeding $500K in revenue per head

Reaching this benchmark allows us to properly balance the interests of shareholders and

employees

Number of Employees

1

14

BUSINESS MODEL DELIVERS PROFITABILITY  

Adjustments to cost and capital structure position FBR to deliver positive annual

returns at normalized revenue levels

$000s

Annual

Expense Rate

Assumptions

2009

Recast

2010

Recast

2011

Recast

2012

Recast

2

2013

Actual

2

2014

Actual

Adjusted net revenue ("NR")

1

NA

$292,233

$246,587

$147,151

$189,814

$221,521

$182,125

Compensation and benefits

57% of NR

166,573

140,555

83,876

108,194

127,720

103,811

Other variable costs

8% of NR

23,379

19,727

11,772

15,185

14,188

17,102

Non-comp fixed costs

$43mm

43,000

43,000

43,000

43,000

43,643

43,852

Net income before taxes

$59,282

$43,305

$8,503

$23,435

$35,970

$17,360

Operating Margin

20.3%

17.6%

5.8%

12.3%

16.2%

9.5%

Revenue / Head

$512

$452

$362

$739

$811

$607

Net income (taxed @ 39%)

3

$36,162

$26,416

$5,187

$14,295

$21,941

$10,590

ROE (@ $220MM Equity)

16.4%

12.0%

2.4%

6.5%

10.0%

4.8%

EPS -

8 MM shares

$4.52

$3.30

$0.65

$1.79

$2.74

$1.32

For

Illustrative

Purposes

Only.

2008

–

2012

expense

and

net

income

amounts

recast

using

current

strategy

expense

rates

/

levels

(see

Annual

Expense

Rate

Assumptions

above).

1. As originally reported except as otherwise noted (i.e., asset management operations included in 2008 – 2011, excluded in 2012 and 2013 as discontinued operations).  2. Revenue of $38.3 million from NMI 

Holdings, Inc. investment banking transaction removed from 2013 Adjusted Net Revenue and added to 2012 Adjusted Net Revenue to reflect the transaction’s April 2012 closing date. GAAP Net Revenue for 

2013 and 2012 was $259.8 million and $151.5 million, respectively. Related variable compensation of $17 million removed from 2013 Compensation & Benefits.  Net effect on 2013 Net Income is $21.3 million.    

3. Reflects recast results for 2013 and 2014 based on a 39 percent tax rate.   

Our Capital Strategy

16

SHARES OUTSTANDING

1

FBR has repurchased 50 percent of its outstanding shares since December 2009.  A

steady approach to repurchases over this time frame has resulted in an accretive

impact to book value per share of approximately $5.44

1.

Reflects

common

shares

outstanding

for

book

value

per

share

purposes

and

1

for

4

reverse

stock

split

effected

on

2/28/13.

Committed to holding share count at current levels or lower

Targeting inside ownership for 30%, which we believe to be achievable over the next two years, further

aligning management and shareholder interests

Shares Outstanding (millions)

17

SHAREHOLDERS’

EQUITY(Pro

Forma

Adjusted

for

Deferred

Tax

Reserves)

1

Shareholders’ equity, when adjusted to remove the impact of (since released) deferred

tax asset reserves, shows a reduction of $167 million, or 42 percent, which reflects the

repurchase of 50 percent of shares outstanding as of December 2009

1. This non-GAAP presentation portrays the changes in shareholders’ equity removing the impact of valuation reserves against deferred tax assets, which existed at varying levels during the entire period, but have now been released.

Shareholders’ Equity Ending Balance ($ millions)

18

GROWTH IN TANGIBLE BOOK VALUE PER SHARE

The final stage of restructuring was accomplished late in 2011.  Resulting business focus

and streamlined cost structure ensure profitability in most foreseeable economic

environments

Tangible

book

value

has

grown

over

$12.50

per

share

since

the

end

of

2011

–

a

compound annual growth rate of 18.4 percent, reflecting a combination of earnings and

the accretive share repurchases

19

Source: SNL Financial.  Sectors include: Banking, Insurance, Securities & Investments, Specialty Finance, Financial Technology, Real Estate, Energy and Media & Communications.

1.  Overall Ranking based on percentage of outstanding shares repurchased.  2. DIRECTV market cap as of 6/30/15 due to AT&T acquisition. 

Overall

Rank

1

Company

Ticker

Industry

Market Cap.

7/28/15

($ MM)

Shares Out,

12/31/09

Shares

Repurchased

(1Q10 -

2Q15)

Shares Out, 

3/31/15

+ Repurchases

% of Shares

Repurchased

1

Atlanticus Holdings Corporation

ATLC

Specialty Lender

$55

47,717,723

34,693,349

48,680,291

71.3%

2

FBR & Co.

FBRC

Broker-Dealer

179

16,016,196

10,571,970

18,152,581

58.2%

3

MCG Capital Corporation

MCGC

Investment Company

162

76,394,000

40,764,725

77,838,842

52.4%

4

World Acceptance Corporation

WRLD

Specialty Lender

473

16,211,659

9,610,956

18,580,904

51.7%

5

WebMD Health Corp.

WBMD

New Media

1,662

50,946,766

39,042,397

76,808,359

50.8%

6

Outerwall Inc.

OUTR

Media & Entertainment

1,515

31,076,784

17,014,955

35,513,933

47.9%

7

Montpelier Re Holdings Ltd.

MRH

Insurance Underwriter

1,789

79,998,795

39,255,113

83,054,366

47.3%

8

DIRECTV

2

DTV

Communications

467,642

933,187,782

449,992,796

953,973,973

47.2%

9

Anthem, Inc.

ANTM

Insurance

Underwriter

40,848

449,789,672

225,687,546

490,593,144

46.0%

10

Validus Holdings, Ltd.

VR

Insurance Underwriter

3,732

128,459,478

70,287,964

153,922,879

45.7%

|

20

Magellan Health, Inc.

MGLN

Financial Technology

1,644

34,535,000

17,699,729

45,026,104

39.3%

|

50

Arch Capital Group

ACGL

Insurance Underwriter

8,903

164,285,034

59,048,246

183,809,087

32.1%

|

100

W.R.

Berkley

Corporation

WRB

Insurance Underwriter

6,961

156,552,355

41,752,938

166,686,213

25.0%

|

500

Cogent Communications Holdings, Inc.

CCOI

Communications

1,469

44,853,974

2,270,205

48,464,831

4.7%

|

1,000

Tiptree Financial Inc.

TIPT

Investment Company

188

20,158,894

75,743

32,068,213

0.2%

FBR RANKS #2 IN SHARE REPURCHASES AMONG MORE

THAN 5,000 DOMESTIC PUBLIC COMPANIES SINCE 2010

20

CAPITAL MANAGEMENT –

CLOSE PEER TREND

Within its peer group, FBR has been the most aggressive in managing share count and

tangible book value

Source:

SEC

filings

and

FactSet.

1.

Reflects

price

change

for

the

period

December

31,

2009

through

July

31,

2015.

December

31,

2009

-

June

30,

2015

($

millions)

Financial Metric

FBR & Co.

Piper Jaffray

Cowen Group

JMP Group

Total share repurchases

$206

$306

$111

$38

Common dividends paid

$2

-

-

$20

Change in share count

-50%

-11%

47%

4%

Change in TBV / share

47%

3%

1%

9%

Change in share price¹

-4.9%

-11.4%

-4.6%

-24.6%

Our Financials and Valuation

22

Balance Sheet

Income Statement

Unlevered balance sheet and no debt

$71 million in cash

$235 million in shareholders’ equity

FINANCIAL STATEMENTS

1

GAAP presentation.  Does not include adjustment for NMI Holdings, Inc. transaction.

1.  Balance Sheet and Income Statement $ in thousands, except per share amounts

Jun 30, 2015

Dec. 31, 2014

Cash and cash equivalents

$71,170

$108,962

Securities borrowed

683,269

594,674

Other receivables

332,791

103,065

Investments

127,949

173,047

Deferred tax assets, net

28,497

28,648

Other assets

25,293

26,701

Total assets

$1,268,969

$1,035,097

Debt

$0

$0

Securities loaned

685,266

595,717

Other liabilities

348,838

178,974

Shareholders' equity

234,865

260,406

Total liabilities & shareholders' equity

$1,268,969

$1,035,097

Tangible book value per share

$28.52

$28.63

Balances as of

2014

2013

Investment banking

$115,255

$196,213

Institutional brokerage

56,182

53,738

Net investment and interest & other income

10,688

9,870

Revenues, net of interest expense

$182,125

$259,821

Compensation and benefits

$103,811

$144,720

Professional services

13,259

12,326

Business development

11,689

9,602

Clearing and brokerage fees

4,757

4,922

Occupancy and other operating expenses

31,249

30,981

Total expense

$164,765

$202,551

Income (loss) from cont. operations before taxes

$17,360

$57,270

Income tax (benefit) provision

341

(27,483)

Income (loss) from cont. operations, net of taxes

$17,019

$84,753

Income from discontinued operations, net of taxes

-

8,159

Net income (loss)

$17,019

$92,912

Compensation & benefits / revenue

57%

56%

Basic earnings per share

$1.66

$7.77

Diluted earnings per share

$1.48

$7.17

Weighted

average

shares

-

basic

10,283

11,963

Weighted

average

shares

-

diluted

11,465

12,960

Year ended December 31,

PEER COMPARABILITY ANALYSIS

PRICE AS OF 8/28/2015, INCOME STATEMENT AND BALANCE SHEET DATA AS OF 6/30/2015

23

Annualized

YTD 6/30/15

8/28/15

% of 52

Market

BV

TBV

Price/

Price/

Total Revenue

Employees

Net Revenue/

Comp & Ben/

Price

Week High

Cap.

Per Share

Per Share

2015E

2016E

BV

TBV

YTD as of 2Q

as of 2Q

Employee

Net Revenue

Ticker

Company Name

($)

(%)

($MM)

($)

($)

(x)

(x)

(x)

(x)

($MM)

(#)

($'000s)

(%)

FBRC

FBR & Co.

$22.28

74.3%

$166.1

$29.10

$28.52

15.3x

13.6x

0.8x

0.8x

$71.4

293

$490

59.1%

Institutional Only

COWN

Cowen Group, Inc.

$5.23

79.4%

$575.3

$7.14

$6.76

10.0x

8.4x

0.7x

0.8x

$240.7

664

(1)

$725

71.1%

PJC

Piper Jaffray Companies

$40.87

68.2%

$617.3

$52.16

$36.37

9.7x

9.9x

0.8x

1.1x

$325.9

1,055

(1)

$618

61.2%

JMP

JMP Group Inc.

$7.24

81.8%

$153.8

$6.41

$6.41

8.1x

8.0x

1.1x

1.1x

$81.4

235

$693

67.1%

Median

79.4%

$575.3

9.7x

8.4x

0.8x

1.1x

$693

67.1%

Average

76.5%

$448.8

9.3x

8.8x

0.9x

1.0x

$679

66.5%

Institutional and Retail

SF

Stifel Financial Corp.

$47.07

78.5%

$3,268.2

$37.99

$23.72

15.5x

12.1x

1.2x

2.0x

$1,158.7

6,200

(2)

$374

66.1%

OPY

Oppenheimer Holdings Inc.

$19.87

71.0%

$271.5

$39.02

$26.57

20.0x

8.9x

0.5x

0.7x

$484.5

3,434

(2)

$282

66.3%

Average

74.8%

$1,769.8

17.7x

10.5x

0.9x

1.4x

$328

66.2%

Advisory

EVR

Evercore Partners Inc

$52.81

88.9%

$1,916.3

$13.47

$5.74

16.3x

14.1x

3.9x

9.2x

$506.1

1,300

(2)

$779

66.4%

GHL

Greenhill & Co Inc

$35.53

71.3%

$1,041.8

$7.12

$1.76

20.0x

15.3x

5.0x

20.2x

$135.2

305

(2)

$887

54.0%

MC

Moelis & Company

$27.20

72.8%

$549.2

$6.71

$6.71

16.5x

14.9x

4.1x

4.1x

$225.3

650

$693

55.5%

Median

72.8%

$1,041.8

16.5x

14.9x

4.1x

9.2x

$779

55.5%

Average

77.7%

$1,169.1

17.6x

14.8x

4.3x

11.2x

$786

58.7%

All Peers -

Median

75.7%

$596.3

15.9x

11.0x

1.2x

1.6x

$693

66.2%

All Peers -

Average

76.5%

$1,049.2

14.5x

11.5x

2.2x

4.9x

$631

63.5%

Valuation

P/E

Source: Factset as of August 28, 2015 and SEC Filings as of August 2015.   1. Annualized.  2.  As of February 2015. 3. As of December 31, 2014.

SUMMARY

24

FBR & Co. is a uniquely valuable equity capital markets franchise

–

A transaction driven business model focused on ideas and execution that make money for our

clients

–

Dominant in the high margin initial equity capital raising arena

–

Operating on a low fixed cost structure

–

Allowing us to achieve profitability across market conditions

FBR’s well capitalized, stable financial profile has positioned us for:

–

Pro-active growth initiatives

–

Strategic management of capital

–

Attractive returns on equity

–

Returning capital to shareholders

Metropolitan Washington, D.C. Headquarters

1300

North Seventeenth Street . Arlington, VA 22209

703.312.9500 T . 703.312.9501 F . www.fbr.com

Boston

Houston

Irvine

(Los Angeles)

New York

San Francisco

100 Federal Street, 29th Floor 

Boston, MA 02110

617.757.2900

9 Greenway Plaza, Suite 2050 

Houston, TX 77046

713.226.4700

18101 Von Karman Ave., Suite 950 

Irvine, CA 92612

949.477.3100

299 Park Avenue, 7th Floor  New

York, NY 10171

212.457.3300

1 Embarcadero Center, Suite 2140

San Francisco, CA 94111

415.248.2900

Note: Not all services available from  all offices