EXHIBIT 99.1
[LOGO]
For Immediate Release
Media Contact: Lisa Staubs 703.312.9713 or lstaubs@fbr.com
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Investor Contact: Kurt R. Harrington 703.312.9647 or kharrington@fbr.com
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FBR Asset Investment Corporation Reports
Record Fourth Quarter and Full Year Results
Full Year Earnings Per Share Increase 127%
ARLINGTON, Va., February 6, 2002 - FBR Asset Investment Corporation (AMEX: FB)
announced today record fourth quarter and full year results for 2001. Fully
diluted earnings per share for the fourth quarter were $1.62, or $13.3 million,
compared to $1.35 per share, or $5.4 million in 2000. The company had 8.5
million shares outstanding at December 31, 2001 and average outstanding shares
of 8.1 million during the quarter. Previously, the company had declared and
paid a fourth quarter dividend of $1.25 per share. For the full year ended
December 31, 2001 the company earned $4.17 per share on a fully diluted basis,
or $23.1 million, compared to $1.84 per share, or $8.4 million in 2000. The
company's average share count during the year was 5.4 million.
FBR Asset continued to benefit in the fourth quarter from the steep yield curve
and the strong performance of a number of its equity and mezzanine investments.
For the fourth quarter, the average yield on the mortgage-backed securities
portfolio was 5.44% and the company's average interest rate on repurchase
agreements used to finance the mortgage-backed securities was 2.43%. Net
interest income from the mortgage-backed securities portfolio totaled $10.1
million in the fourth quarter, contributing approximately 64% of the company's
net revenue (net interest, dividends, fees and net gains). Dividends and net
gains from equity investments totaled $3.8 million in the quarter and
represented approximately 24% of net revenue. Fees earned from Friedman,
Billings, Ramsey Group, Inc. investment banking transactions pursuant to the
fee-sharing agreement entered into between the parties in 2001 totaled $1.2
million during the quarter and contributed approximately 8% to net revenue.
Interest on notes receivable was $.6 million for the period and represented
approximately 4% of net revenue for the quarter. For the full year, approximate
net revenue contributions from the aforementioned categories were 59%, 22%, 10%,
and 9%, respectively.
At December 31, 2001 the company owned approximately $1.24 billion in mortgage-
backed securities and had entered into repurchase agreements to finance the
mortgage-backed securities totaling approximately $1.11 billion. Investments in
equity securities were $61.7 million and notes receivable were $8 million at the
end of the year. Total equity at December 31, 2001 was $203.9 million and book
value per outstanding common share was $23.98.
As previously disclosed, the company completed a follow-on offering of 4.8
million shares of common stock on January 28, 2002 bringing the total number of
issued and outstanding shares to 13.3 million. This offering added
approximately $120.4 million in capital to the company. Proceeds from the
offering will be used to invest in mortgage-backed securities, equity securities
and mezzanine loans and for general corporate purposes.
Eric F. Billings, Chairman and CEO, commented on the company's results and
recent developments, "FBR Asset continued to deliver outstanding returns to
investors throughout 2001 and was able to continue its track record of
increasing dividends each year since its inception. Our unique relationship
with Friedman, Billings, Ramsey Group, Inc., which allows us to earn fees from
certain investment banking transactions and to source proprietary equity and
mezzanine investment opportunities, combined with the continued opportunity to
earn high returns through our mortgage-backed securities strategy makes us
optimistic that we will continue to provide attractive returns to investors in
2002."
A live webcast of FBR's conference call will be available at 9 a.m. (Eastern
Time) via:
http://web.servicebureau.net/conf/meta?i=1112307241&c=2343&m=was&u=/w_ccbn.xsl&
date_ticker=2_7_2002_FB
Replays of the webcast will be available afterward.
# # #
The company makes forward-looking statements in this document, and in the
public documents to which the company refers, that are subject to risks and
uncertainties in addition to those set forth above. These forward-looking
statements include information about possible or assumed future results of
the company's operations. Also, when the company uses any of the words
"believes," "expects," "anticipates" or similar expressions, it is making
forward-looking statements. Many possible events or factors could affect
the company's future financial results and performance. This could cause
the company's results or performance to differ materially from those
expressed in the forward-looking statements. These and other risks are
described in the company's publicly filed documents and reports that are
available from the company and from the SEC.
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) 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) 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.
# # #
Two pages of financial data follows this page.
FBR ASSET INVESTMENT CORPORATION
[LOGO] CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three months ended
December 31,
Revenue: 2001 2000
------- ------
Interest $17,514 $4,375
Dividends 1,510 1,635
Fee income 1,174 --
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Total Revenue 20,198 6,010
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Expenses:
Interest 6,819 2,307
Management fees:
Base 879 253
Incentive 841 ---
Professional fees & other 181 141
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Total Expenses 8,720 2,701
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Net realized gains 2,265 2,056
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Net income before income taxes 13,743 5,365
Income tax expense 474 --
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Net income $13,269 $5,365
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Basic income per share $ 1.65 $ 1.35
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Diluted income per share $ 1.62 $ 1.35
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Basic weighted average shares 8,053 3,985
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Diluted weighted average shares 8,198 3,985
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FBR ASSET INVESTMENT CORPORATION
[LOGO] CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Year ended
December 31,
Revenue: 2001 2000
------- -------
Interest $32,391 $18,759
Dividends 3,821 5,082
Fee income 2,876 ---
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Total Revenue 39,088 23,841
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Expenses:
Interest 14,613 10,935
Management fees:
Base 1,842 1,079
Incentive 1,652 ---
Professional fees & other 772 597
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Total Expenses 18,879 12,611
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Net realized gains 3,875 2,760
Recognized loss on available- (545) (5,626)
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Net income before income taxes 23,539 8,364
Income tax expense 474 ---
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Net income $23,065 $ 8,364
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Basic income per share $ 4.27 $ 1.84
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Diluted income per share $ 4.17 $ 1.84
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Basic weighted average shares 5,402 4,544
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Diluted weighted average shares 5,525 4,544
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