EXHIBIT 99.1
Wednesday November 1, 5:09 pm Eastern Time
Press Release
SOURCE: FBR Asset Investment Corporation
FBR Asset Investment Corporation Reports Third Quarter Results
ARLINGTON, Va., Nov. 1 /PRNewswire/ -- FBR Asset Investment Corporation (Amex:
FB - news) today reported third quarter 2000 operating earnings of $2.4 million,
or $0.58 per share; compared with operating earnings of $2.7 million, or $0.38
per share for the third quarter of 1999. Revenue for the third quarter of 2000
was $5.6 million, compared with $4.6 million for the third quarter of 1999.
For the first nine months of 2000, FBR Asset had operating earnings of
$8.6 million, or $1.82 per share; compared with operating earnings of $9.3
million, or $1.19 per share, for the first nine months of 1999. Revenue for the
first nine months of 2000 was $17.8 million, compared to $15.2 million for the
first nine months of 1999.
During the first nine months, FBR Asset recorded a charge of $5.6
million related to the impairment of certain available for sale equity
securities, most of which had already been recorded as a reduction of
shareholders equity in previous quarters -- yielding year to date net income of
$3.0 million, or $0.63 per share. FBR Asset's operating earnings for the first
nine months of 2000 of $8.6 million were before recognized losses on these
available-for-sale equity securities.
FBR Asset paid a third quarter dividend of $0.60 per share on October
16, 2000 to shareholders of record as of September 29, 2000. The Company also
paid a $0.60 per share dividend on July 14, 2000.
FBR Asset is a Real Estate Investment Trust (REIT) formed in December
1997. It invests in mortgages, mortgage-backed securities, and other real
estate-related assets. As of September 30, 2000, the Company had approximately
$232 million in total assets, shareholders' equity of $87 million, a book value
of $21.63 per share, and 4.0 million shares outstanding.
Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR - news) has a 33
percent equity ownership interest in FBR Asset, and has warrants to potentially
own up to 44 percent of FBR Asset. The majority of FBR Asset's outstanding
shares are owned by individual and institutional investors.
FBR Asset listed on the American Stock Exchange on September 29, 1999.
NOTE TO EDITORS: Please note that "FBR Asset Investment Corporation"
and "Friedman, Billings, Ramsey Group, Inc." are two different companies. FBR
Asset is a REIT, which is required as a result of its tax status, to pay a
dividend. FBR Asset (Amex: FB - news) is externally managed by Friedman,
Billings, Ramsey Investment Management, Inc., a subsidiary of Friedman,
Billings, Ramsey Group, Inc. Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR -
news) is a publicly held company, which has historically never paid a dividend.
Friedman, Billings, Ramsey Group, Inc. is a minority owner of FBR Asset. Thank
you.
Statements concerning future performance, earnings, developments,
expenditures, negotiation or other events, concerning expectations, plans, or
objectives for future operations or for growth, concerning market forecasts, or
filed backlog, and any other guidance on present and future periods, constitute
forward-looking statements that are subject to a number of factors, risks, and
uncertainties that might cause actual events, results, or developments to differ
materially from stated expectations or current circumstances. These factors
include but are not limited to the effect of demand for public offerings,
activity in the secondary securities markets, demand for asset management
services, available technologies, competition for business and personnel, and
general economic, political, and market conditions.
Financial data follows.
FBR Asset Investment Corporation
Condensed Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended
September 30,
Revenue: 2000 1999
Interest income $ 4,212 $ 2,909
Dividend income 1,382 1,694
Total Revenue 5,594 4,603
Expenses:
Interest 2,821 1,539
Management fees 243 296
Professional fees & other expenses 191 249
Amortization -- 114
Total Expenses 3,255 2,198
Net realized gains 57 331
Net income $ 2,396 $ 2,736
Basic and diluted income per share $0.58 $0.38
Weighted average shares 4,158 7,112
FBR Asset Investment Corporation
Condensed Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Nine months ended
September 30, 2000
Revenue: 2000 1999
Interest income $14,384 $10,655
Dividend income 3,447 4,533
Total Revenue 17,831 15,188
Expenses:
Interest 8,628 4,922
Management fees 826 975
Professional fees & other expenses 456 758
Amortization --- 341
Total Expenses 9,910 6,996
Net realized gains 704 1,074
Recognized loss on available-for-sale
equity securities (5,626)
Net income $ 2,999 $ 9,266
Basic and diluted income per share $0.63 $1.19
Weighted average shares 4,731 7,773
SOURCE: FBR Asset Investment Corporation