Exhibit 99 | 
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| |
News Release | The Ryland Group, Inc. www.ryland.com |
FOR IMMEDIATE RELEASE | CONTACT: | Drew Mackintosh, Vice President, |
| Investor Relations | (818) 223-7548 |
| Marya Barlow, Director, |
| Communications | (818) 223-7591 |
RYLAND REPORTS RESULTS FOR THE SECOND QUARTER OF 2008
CALABASAS, Calif. (July 23, 2008) – The Ryland Group, Inc. (NYSE: RYL), today announced results for its second quarter ended June 30, 2008. Items of note included:
· Cash balance of $199.4 million as of June 30, 2008;
· Provided $37.1 million of cash from operations for the quarter ended June 30, 2008;
· Net debt-to-total capital ratio was 41.0 percent at June 30, 2008;
· Pretax charges for inventory and other valuation adjustments were $134.6 million, joint venture impairments were $35.9 million and option deposits and feasibility write-offs were $9.9 million;
· Noncash tax charge of $124.0 million was recorded by the Company for a valuation allowance related to its deferred tax assets during the quarter ended June 30, 2008;
· Loss of $5.70 per share for the quarter ended June 30, 2008, including inventory valuation adjustments and write-offs, joint venture impairments and an income tax charge, compared to a loss of $1.25 per share for the same period in 2007;
· Consolidated revenues of $487.9 million for the quarter ended June 30, 2008, reflected a decrease of 34.4 percent from the quarter ended June 30, 2007;
· Housing gross profit margins averaged 12.5 percent prior to inventory and joint venture valuation adjustments and write-offs for the quarter ended June 30, 2008, compared to 19.0 percent for the same period in 2007. Subsequent to these adjustments, housing gross profit margins averaged negative 18.2 percent for the second quarter of 2008, compared to 4.6 percent for the same period in 2007;
· Closings totaled 1,828 units for the quarter ended June 30, 2008, reflecting a 25.7 percent decrease from the same period in the prior year;
· New orders in the second quarter of 2008 declined 18.9 percent to 2,045 units from 2,521 units in the second quarter of 2007;
· Backlog increased 6.2 percent to 3,702 units at June 30, 2008, from 3,485 units at March 31, 2008; and
· Inventory of houses started and unsold declined by 17.4 percent to 680 units at June 30, 2008, from 823 units at December 31, 2007.
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RYLAND SECOND-QUARTER RESULTS
RESULTS FOR THE SECOND QUARTER OF 2008
For the second quarter ended June 30, 2008, the Company reported a consolidated net loss of $241.6 million, or $5.70 per diluted share, compared to a loss of $52.4 million, or $1.25 per diluted share, for the same period in 2007. The Company had inventory and other valuation adjustments, joint venture impairments, and option deposit and feasibility write-offs totaling $180.4 million, as well as a noncash tax charge of $124.0 million, during the second quarter ended June 30, 2008.
The homebuilding segments reported a pretax loss of $187.1 million during the second quarter of 2008, compared to a pretax loss of $91.5 million for the same period in 2007. This decrease was primarily due to the impact of inventory valuation adjustments and write-offs; a decline in closings and margins; and higher relative selling, general and administrative expenses.
Homebuilding revenues decreased 34.6 percent to $472.3 million for the second quarter of 2008, compared to $722.6 million for the same period in 2007. This decline was primarily attributable to closings totaling 1,828 units for the second quarter ended June 30, 2008, reflecting a 25.7 percent decrease from closings totaling 2,461 units for the same period in the prior year, and to a 13.0 percent decrease in the average closing price of a home, which dropped to $254,000 for the quarter ended June 30, 2008, from $292,000 for the same period in 2007. Homebuilding revenues for the second quarter of 2008 included $8.6 million from land sales, compared to $3.0 million from land sales for the second quarter of 2007, which contributed net gains of $124,000 and $595,000 to pretax earnings in 2008 and 2007, respectively.
New orders of 2,045 units for the quarter ended June 30, 2008, represented a decrease of 18.9 percent, compared to new orders of 2,521 units for the same period in 2007. For the second quarter of 2008, new order dollars declined 27.8 percent to $502.9 million from $696.8 million for the second quarter of 2007. Backlog at the end of the second quarter of 2008 increased 6.2 percent to 3,702 units from 3,485 units at March 31, 2008, and decreased 25.3 percent from 4,953 units at the end of the second quarter of 2007. At June 30, 2008, the dollar value of the Company’s backlog was $955.8 million, reflecting an increase of 4.3 percent from March 31, 2008, and a decrease of 34.5 percent from June 30, 2007.
Housing gross profit margins averaged 12.5 percent prior to inventory and joint venture valuation adjustments and write-offs for the quarter ended June 30, 2008, compared to 19.0 percent for the same period in 2007. Subsequent to these adjustments, housing gross profit margins averaged negative 18.2 percent for the second quarter of 2008, compared to 4.6 percent for the same period in 2007. This decrease was primarily due to inventory valuation adjustments and write-offs, as well as to increased sales incentives that related to home deliveries for the second quarter of 2008. The gross profit margin from land sales was 1.5 percent for the second quarter ended June 30, 2008, compared to 20.0 percent for the same period in 2007. Selling, general and administrative expenses, as a percentage of homebuilding revenue, were 13.8 percent for the second quarter of 2008, compared to 11.5 percent for the same period in 2007. This increase was
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primarily attributable to a decline in revenues, as well as to a rise in marketing and advertising costs per unit. For the second quarter ended June 30, 2008, selling, general and administrative expense dollars decreased $17.7 million from the same period in the prior year. The homebuilding segments capitalized all interest incurred during the second quarters of 2008 and 2007.
Corporate expenses were $8.1 million for the second quarter of 2008, compared to $7.1 million for the same period in the prior year. This increase was primarily due to a $1.1 million decline in the market value of investments included within the Company’s benefit plans.
The Company’s financial services segment, which includes mortgage, title, escrow and insurance services, reported pretax earnings of $5.5 million for the second quarter of 2008, compared to pretax earnings of $9.8 million for the same period in 2007. This decrease was primarily attributable to a 23.5 percent decline in the number of mortgages originated, due to a slowdown in the homebuilding market, and to a 13.8 percent decrease in average loan size. The capture rate of mortgages originated for the Company’s homebuilding customers was 82.9 percent for the second quarter of 2008, compared to 79.9 percent for the same period in 2007.
RESULTS FOR THE FIRST HALF OF 2008
For the six months ended June 30, 2008, the Company reported a consolidated net loss of $271.0 million, or $6.40 per diluted share, compared to a loss of $76.9 million, or $1.82 per diluted share, for the same period in 2007. The Company had inventory and other valuation adjustments, joint venture impairments, and option deposit and feasibility write-offs totaling $208.4 million, as well as a noncash tax charge of $124.0 million, for the six months ended June 30, 2008.
The homebuilding segments reported a pretax loss of $230.8 million during the first six months of 2008, compared to a pretax loss of $123.7 million for the same period in 2007. This decrease was primarily due to the impact of inventory valuation adjustments and write-offs; a decline in closings and margins; and higher relative selling, general and administrative expenses.
Homebuilding revenues decreased 38.3 percent to $871.9 million for the first six months of 2008, compared to $1.4 billion for the same period in 2007. This decline was primarily attributable to closings totaling 3,371 units for the six months ended June 30, 2008, reflecting a 29.2 percent decrease from closings totaling 4,763 units for the same period in the prior year, and to a 13.6 percent decrease in the average closing price of a home, which dropped to $255,000 for the six-month period ended June 30, 2008, from $295,000 for the six-month period ended June 30, 2007. Homebuilding revenues for the first six months of 2008 included $11.5 million from land sales, compared to $7.0 million from land sales for the first six months of 2007, which contributed net gains of $1.1 million to pretax earnings in 2008 and 2007.
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RYLAND SECOND-QUARTER RESULTS
New orders of 4,204 units for the six months ended June 30, 2008, represented a decrease of 23.7 percent, compared to new orders of 5,510 units for the same period in 2007. For the first six months of 2008, new order dollars declined 34.4 percent to $1.0 billion from $1.6 billion for the first six months of 2007.
Housing gross profit margins averaged 12.2 percent prior to inventory and joint venture valuation adjustments and write-offs for the six months ended June 30, 2008, compared to 18.8 percent for the same period in 2007. Subsequent to these adjustments, housing gross profit margins averaged negative 7.4 percent for the first half of 2008, compared to 8.3 percent for the same period in 2007. This decrease was primarily due to inventory valuation adjustments and write-offs, as well as to increased sales incentives that related to home deliveries for the first half of 2008. The gross profit margin from land sales was 9.4 percent for the six months ended June 30, 2008, compared to 12.8 percent for the same period in 2007. Selling, general and administrative expenses, as a percentage of homebuilding revenue, were 14.8 percent for the first six months of 2008, compared to 12.6 percent for the same period in 2007. This increase was primarily attributable to a decline in revenues, as well as to a rise in marketing and advertising costs per unit, partially offset by a $15.4 million goodwill impairment charge in the first quarter of 2007. For the first six months ended June 30, 2008, selling, general and administrative expense dollars decreased $49.7 million, versus the same period in the prior year. The homebuilding segments capitalized all interest incurred during the six-month periods ended June 30, 2008 and 2007.
Corporate expenses were $17.2 million for the first six months of 2008, compared to $13.6 million for the same period in the prior year. This increase was primarily due to a $3.1 million decline in the market value of investments included within the Company’s benefit plans.
The Company’s financial services segment, which includes mortgage, title, escrow and insurance services, reported pretax earnings of $12.1 million for the first six months ended June 30, 2008, compared to pretax earnings of $17.8 million for the same period in 2007. This decrease was primarily attributable to a 27.1 percent decline in the number of mortgages originated, due to a slowdown in the homebuilding market, and to a 13.5 percent decrease in average loan size, partially offset by a $3.2 million gain related to the 2008 implementation of Staff Accounting Bulletin No. 109, which requires servicing rights related to interest rate lock commitments to be recorded at fair value. The capture rate of mortgages originated for the Company’s homebuilding customers was 82.6 percent for the first six months of 2008, compared to 79.5 percent for the same period in 2007.
AMENDED CREDIT FACILITY
In June 2008, the Company amended its revolving credit facility by reducing its borrowing capacity from $750.0 million to $550.0 million and by modifying several of its covenants, which included decreasing the base amount for the minimum consolidated tangible net worth covenant to $600.0 million; adjusting the
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RYLAND SECOND-QUARTER RESULTS
permitted leverage ratio and the ratio of unsold land to its consolidated tangible net worth; and changing its pricing structure. The facility’s maturity date of January 2011 and the uncommitted accordion feature remained unchanged. There were no borrowings against this facility at June 30, 2008.
NONCASH TAX CHARGE FOR A DEFERRED TAX VALUATION ALLOWANCE
During the second quarter of 2008, the Company recorded a noncash tax charge of $124.0 million for a valuation allowance related to its deferred tax assets. This was reflected as a charge to income tax expense and resulted in a reduction of the Company’s deferred tax assets. Consequently, the Company’s effective tax rate was 27.3 percent for the quarter ended June 30, 2008, compared to an effective tax benefit rate of 41.0 percent for the same period in 2007. Due to the uncertainty of current market conditions, the Company is unable to provide precise annual effective rate guidance at this time.
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RYLAND SECOND-QUARTER RESULTS
Headquartered in Southern California, Ryland is one of the nation’s largest homebuilders and a leading mortgage-finance company. Since its founding in 1967, Ryland has built more than 275,000 homes and financed more than 235,000 mortgages. The Company currently operates in 17 states and 21 homebuilding divisions across the country and is listed on the New York Stock Exchange under the symbol “RYL.” For more information, please visit www.ryland.com.
Note: Certain statements in this press release may be regarded as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may qualify for the safe harbor provided for in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s expectations and beliefs concerning future events, and no assurance can be given that the future results described in this press release will be achieved. These forward-looking statements can generally be identified by the use of statements that include words such as “anticipate,” “believe,” “estimate,” “expect,” “foresee,” “goal,” “intend,” “likely,” “may,” “plan,” “project,” “should,” “target,” “will” or other similar words or phrases. All forward-looking statements contained herein are based upon information available to the Company on the date of this press release. Except as may be required under applicable law, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. The factors and assumptions upon which any forward-looking statements herein are based are subject to risks and uncertainties which include, among others:
· economic changes nationally or in the Company’s local markets, including volatility and increases in interest rates, inflation, changes in consumer demand and confidence levels and the state of the market for homes in general;
· instability and uncertainty in the mortgage lending market, including revisions to underwriting standards for borrowers;
· the availability and cost of land and the future value of land held or under development;
· increased land development costs on projects under development;
· shortages of skilled labor or raw materials used in the production of houses;
· increased prices for labor, land and raw materials used in the production of houses;
· increased competition;
· failure to anticipate or react to changing consumer preferences in home design;
· increased costs and delays in land development or home construction resulting from adverse weather conditions;
· potential delays or increased costs in obtaining necessary permits as a result of changes to laws, regulations, or governmental policies (including those that affect zoning, density, building standards and the environment);
· delays in obtaining approvals from applicable regulatory agencies and others in connection with the Company’s communities and land activities;
· changes in the Company’s effective tax rate and assumptions and valuations related to its tax accounts;
· the risk factors set forth in the Company’s most recent Annual Report on Form 10-K; and
· other factors over which the Company has little or no control.
# # #
Four financial-statement pages follow.
THE RYLAND GROUP, INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(in thousands, except share data)
| | Three months ended June 30, | | | Six months ended June 30, | | |
| | 2008 | | | 2007 | | | 2008 | | | 2007 | | |
| | | | | | | | | | | | | |
REVENUES | | | | | | | | | | | | | |
Homebuilding | | $ | 472,283 | | | $ | 722,578 | | | $ | 871,883 | | | $ | 1,413,941 | | |
Financial services | | 15,598 | | | 21,156 | | | 32,164 | | | 40,907 | | |
TOTAL REVENUES | | 487,881 | | | 743,734 | | | 904,047 | | | 1,454,848 | | |
| | | | | | | | | | | | | |
EXPENSES | | | | | | | | | | | | | |
Cost of sales | | 558,742 | | | 731,420 | | | 931,143 | | | 1,359,214 | | |
(Earnings) loss from unconsolidated joint ventures | | 35,606 | | | (84 | ) | | 42,707 | | | (119 | ) | |
Selling, general and administrative | | 65,062 | | | 82,762 | | | 128,847 | | | 178,577 | | |
Financial services | | 10,112 | | | 11,364 | | | 20,091 | | | 23,092 | | |
Corporate | | 8,130 | | | 7,097 | | | 17,196 | | | 13,550 | | |
TOTAL EXPENSES | | 677,652 | | | 832,559 | | | 1,139,984 | | | 1,574,314 | | |
| | | | | | | | | | | | | |
Earnings (loss) before taxes | | (189,771 | ) | | (88,825 | ) | | (235,937 | ) | | (119,466 | ) | |
| | | | | | | | | | | | | |
Tax expense (benefit) | | 51,868 | | | (36,394 | ) | | 35,018 | | | (42,590 | ) | |
| | | | | | | | | | | | | |
NET EARNINGS (LOSS) | | $ | (241,639 | ) | | $ | (52,431 | ) | | $ | (270,955 | ) | | $ | (76,876 | ) | |
| | | | | | | | | | | | | |
NET EARNINGS (LOSS) PER COMMON SHARE | | | | | | | | | | | | | |
Basic | | $ | (5.70 | ) | | $ | (1.25 | ) | | $ | (6.40 | ) | | $ | (1.82 | ) | |
Diluted | | (5.70 | ) | | (1.25 | ) | | (6.40 | ) | | (1.82 | ) | |
| | | | | | | | | | | | | |
AVERAGE COMMON SHARES | | | | | | | | | | | | | |
OUTSTANDING | | | | | | | | | | | | | |
Basic | | 42,421,753 | | | 42,010,783 | | | 42,326,968 | | | 42,248,112 | | |
Diluted | | 42,421,753 | | | 42,010,783 | | | 42,326,968 | | | 42,248,112 | | |
THE RYLAND GROUP, INC. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| | June 30, | | | December 31, | |
| | 2008 | | | 2007 | |
| | (Unaudited) | | | | |
| | | | | | |
ASSETS | | | | | | |
Cash and cash equivalents | | $ | 199,356 | | | $ | 243,614 | |
Housing inventories | | | | | | |
Homes under construction | | 726,640 | | | 717,992 | |
Land under development and improved lots | | 705,024 | | | 949,726 | |
Inventory held-for-sale | | 81,360 | | | 69,225 | |
Consolidated inventory not owned | | 60,328 | | | 76,734 | |
Total inventories | | 1,573,352 | | | 1,813,677 | |
Property, plant and equipment | | 65,908 | | | 75,538 | |
Net deferred taxes | | 86,971 | | | 158,065 | |
Other | | 235,798 | | | 260,426 | |
TOTAL ASSETS | | 2,161,385 | | | 2,551,320 | |
| | | | | | |
LIABILITIES | | | | | | |
Accounts payable | | 128,942 | | | 114,050 | |
Accrued and other liabilities | | 334,502 | | | 404,545 | |
Debt | | 791,615 | | | 839,080 | |
TOTAL LIABILITIES | | 1,255,059 | | | 1,357,675 | |
| | | | | | |
MINORITY INTEREST | | 53,322 | | | 68,919 | |
| | | | | | |
STOCKHOLDERS’ EQUITY | | | | | | |
Common stock, $1.00 par value: | | | | | | |
Authorized - 200,000,000 shares | | | | | | |
Issued - 42,485,267 shares at June 30, 2008 | | | | | | |
(42,151,085 shares at December 31, 2007) | | 42,485 | | | 42,151 | |
Retained earnings | | 806,859 | | | 1,078,521 | |
Accumulated other comprehensive income | | 3,660 | | | 4,054 | |
TOTAL STOCKHOLDERS’ EQUITY | | 853,004 | | | 1,124,726 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 2,161,385 | | | $ | 2,551,320 | |
THE RYLAND GROUP, INC. and Subsidiaries
SEGMENT INFORMATION (Unaudited)
| | Three months ended June 30, | | | Six months ended June 30, | |
| | 2008 | | | 2007 | | | 2008 | | | 2007 | |
EARNINGS (LOSS) BEFORE TAXES (in thousands) | | | | | | | | | | | | |
Homebuilding | | | | | | | | | | | | |
North | | $ | (69,973 | ) | | $ | 20,714 | | | $ | (86,236 | ) | | $ | 29,162 | |
Southeast | | (55,977 | ) | | 8,010 | | | (59,987 | ) | | 16,866 | |
Texas | | (3,286 | ) | | 8,984 | | | (3,830 | ) | | 14,916 | |
West | | (57,891 | ) | | (129,228 | ) | | (80,761 | ) | | (184,675 | ) |
Financial services | | 5,486 | | | 9,792 | | | 12,073 | | | 17,815 | |
Corporate and unallocated | | (8,130 | ) | | (7,097 | ) | | (17,196 | ) | | (13,550 | ) |
Total | | $ | (189,771 | ) | | $ | (88,825 | ) | | $ | (235,937 | ) | | $ | (119,466 | ) |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
NEW ORDERS | | | | | | | | | | | | |
Units | | | | | | | | | | | | |
North | | 524 | | | 653 | | | 1,129 | | | 1,489 | |
Southeast | | 536 | | | 705 | | | 1,186 | | | 1,494 | |
Texas | | 668 | | | 682 | | | 1,221 | | | 1,511 | |
West | | 317 | | | 481 | | | 668 | | | 1,016 | |
Total | | 2,045 | | | 2,521 | | | 4,204 | | | 5,510 | |
| | | | | | | | | | | | |
Dollars (in millions) | | | | | | | | | | | | |
North | | $ | 142 | | | $ | 210 | | | $ | 307 | | | $ | 479 | |
Southeast | | 136 | | | 195 | | | 288 | | | 426 | |
Texas | | 145 | | | 139 | | | 262 | | | 313 | |
West | | 80 | | | 153 | | | 172 | | | 351 | |
Total | | $ | 503 | | | $ | 697 | | | $ | 1,029 | | | $ | 1,569 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
CLOSINGS | | | | | | | | | | | | |
Units | | | | | | | | | | | | |
North | | 563 | | | 699 | | | 986 | | | 1,306 | |
Southeast | | 535 | | | 725 | | | 1,046 | | | 1,482 | |
Texas | | 446 | | | 659 | | | 833 | | | 1,243 | |
West | | 284 | | | 378 | | | 506 | | | 732 | |
Total | | 1,828 | | | 2,461 | | | 3,371 | | | 4,763 | |
| | | | | | | | | | | | |
Average closing price (in thousands) | | | | | | | | | | | | |
North | | $ | 288 | | | $ | 320 | | | $ | 286 | | | $ | 318 | |
Southeast | | 248 | | | 303 | | | 253 | | | 308 | |
Texas | | 215 | | | 214 | | | 216 | | | 215 | |
West | | 258 | | | 351 | | | 264 | | | 362 | |
Total | | $ | 254 | | | $ | 292 | | | $ | 255 | | | $ | 295 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
OUTSTANDING CONTRACTS | | | | | | | | June 30, |
Units | | | | | | | | 2008 | | | 2007 | |
North | | | | | | | | 1,109 | | | 1,340 | |
Southeast | | | | | | | | 1,086 | | | 1,651 | |
Texas | | | | | | | | 1,064 | | | 1,288 | |
West | | | | | | | | 443 | | | 674 | |
Total | | | | | | | | 3,702 | | | 4,953 | |
| | | | | | | | | | | | |
Dollars (in millions) | | | | | | | | | | | | |
North | | | | | | | | $ | 323 | | | $ | 450 | |
Southeast | | | | | | | | 281 | | | 496 | |
Texas | | | | | | | | 238 | | | 274 | |
West | | | | | | | | 114 | | | 239 | |
Total | | | | | | | | $ | 956 | | | $ | 1,459 | |
| | | | | | | | | | | | |
Average price (in thousands) | | | | | | | | | | | | |
North | | | | | | | | $ | 291 | | | $ | 334 | |
Southeast | | | | | | | | 259 | | | 301 | |
Texas | | | | | | | | 223 | | | 212 | |
West | | | | | | | | 257 | | | 354 | |
Total | | | | | | | | $ | 258 | | | $ | 294 | |
THE RYLAND GROUP, INC. and Subsidiaries
FINANCIAL SERVICES SUPPLEMENTAL INFORMATION (Unaudited)
(in thousands, except origination data)
| | Three months ended June 30, | | | Six months ended June 30, | |
RESULTS OF OPERATIONS | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | |
Revenues | | | | | | | | | | | | |
Net gains on sales of mortgages | | $ | 7,236 | | | $ | 8,105 | | | $ | 14,574 | | | $ | 15,319 | |
Origination fees | | 4,187 | | | 6,470 | | | 7,954 | | | 12,230 | |
Title/escrow/insurance | | 3,873 | | | 6,378 | | | 9,007 | | | 12,903 | |
Interest and other | | 302 | | | 203 | | | 629 | | | 455 | |
Total revenues | | 15,598 | | | 21,156 | | | 32,164 | | | 40,907 | |
General and administrative expenses | | 10,112 | | | 11,364 | | | 20,091 | | | 23,092 | |
Pretax earnings | | $ | 5,486 | | | $ | 9,792 | | | $ | 12,073 | | | $ | 17,815 | |
| | | | | | | | | | | | |
OPERATIONAL DATA | | | | | | | | | | | | |
| | | | | | | | | | | | |
Retail operations: | | | | | | | | | | | | |
Originations (units) | | 1,413 | | | 1,848 | | | 2,597 | | | 3,562 | |
Ryland Homes closings as a | | | | | | | | | | | | |
percentage of total closings | | 99.5% | | | 99.5% | | | 99.3% | | | 99.5% | |
Ryland Homes origination capture rate | | 82.9% | | | 79.9% | | | 82.6% | | | 79.5% | |
| | | | | | | | | | | | |
Investment operations: | | | | | | | | | | | | |
Mortgage-backed securities and | | | | | | | | | | | | |
notes receivable average balance | | $ | 366 | | | $ | 419 | | | $ | 377 | | | $ | 490 | |
