EXHIBIT 99.1
[FBR LOGO]
FOR IMMEDIATE RELEASE
Media Contact: Lisa Staubs 703.312.9713 or lstaubs@fbr.com
Investor Contact: Kurt R. Harrington 703.312.9647 or kharrington@fbr.com
FBR ASSET INVESTMENT CORPORATION REPORTS
RECORD FIRST QUARTER RESULTS
ARLINGTON, VA., APRIL 23, 2002 - FBR Asset Investment Corporation (NYSE: FB)
announced today record first quarter earnings. Fully diluted earnings per
share for the first quarter were $1.46, or $17.9 million compared to $.03 per
share, or $128 thousand in the first quarter 2001. The company had 14.4
million shares outstanding at March 31, 2002, and average outstanding shares
of 12.3 million during the quarter. FBR Asset declared a quarterly dividend of
$1.25 per share payable on April 15, 2002, to shareholders of record as of
March 28, 2002.
FBR Asset continued to enjoy a strong environment in its spread-based
mortgage-backed securities ("MBS") portfolio strategy as well as strong
performance in its equity and lending businesses. For the first quarter, the
average yield on the mortgage-backed securities portfolio was 5.00% and the
company's average interest rate on repurchase agreements used to finance the
mortgage-backed securities was 1.88%. Net interest income from the
mortgage-backed securities portfolio totaled $12.3 million in the first
quarter, contributing approximately 59% of the company's net revenue (net
interest, dividends, fees and net gains). Dividends and net gains from equity
investments totaled $7.8 million in the quarter and represented approximately
37% of net revenue. Fees earned from Friedman, Billings, Ramsey Group, Inc.
investment banking transactions, pursuant to an agreement entered into between
the parties in 2001, totaled $0.3 million during the quarter and contributed
approximately 1.4% of net revenue. Interest on notes receivable was $.6
million for the period and represented approximately 2.9% of net revenue for
the quarter.
Eric F. Billings, Chairman and CEO, commented on the company's results and
recent developments, "FBR Asset continued its track record of providing
investors with attractive returns in the first quarter of 2002. We are pleased
that each of our revenue categories contributed positively to our record
results for the quarter and are optimistic about the remainder of this year."
At March 31, 2002, the company owned approximately $2.62 billion in
mortgage-backed securities and had entered into repurchase agreements to
finance the mortgage-backed securities totaling approximately $2.34 billion.
Investments in equity securities were $52.3 million and
notes receivable were $3 million at the end of the quarter. Total equity at
March 31, 2002 was $343.8 million and book value per outstanding common share
was $23.81.
During the first quarter, the company completed a follow-on offering of 5.5
million shares of common stock at a price of $26.50 per share. This offering
was completed on January 28, 2002 and added approximately $138.5 million in
capital to the company. Proceeds from the offering were used to invest
primarily in mortgage-backed securities.
Subsequent to March 31, 2002, the Company issued 4.6 million additional shares
of common stock at a price per share of $27.90. This offering was completed on
April 3, 2002 and resulted in net proceeds to the Company of $121.6 million
including the full exercise of the underwriter's over-allotment option. The
proceeds will be used to invest in mortgage-backed securities, equity
investments and direct loans and for general corporate purposes.
Richard J. Hendrix, President and COO added, "FBR Asset has been able to add
over $268 million in total equity through our two most recent equity offerings
and FBR Group's purchase of an additional 415,805 shares in February. This
additional capital has been deployed in a very attractive market for our MBS
strategy and has given us great flexibility to pursue opportunistic
investments in the equity investing and lending areas of our business. We
believe this flexibility will enhance our ability to provide investors with
industry leading returns."
The company also announced today that it expects to have a dividend
reinvestment plan available for shareholders prior to the distribution of the
second quarter dividend.
FBR Asset is a Real Estate Investment Trust (REIT) that was formed in December
1997. FBR Asset invests in mortgage-backed securities and makes opportunistic
investments in debt and equity securities of companies engaged in real
estate-related and other businesses.
This news release shall not constitute an offer to sell or a solicitation of
an offer to buy nor shall there be any sale of these securities in any state
or jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
state or jurisdiction.
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 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 (NYSE: 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 follow this page.
FBR ASSET INVESTMENT CORPORATION
CONDENSED STATEMENT OF OPERATIONS
[FBR LOGO] (In thousands, except per share amounts)
(Unaudited)
Three months ended
March 31,
REVENUE: 2002 2001
---------------- ---------------
Interest $ 19,583 $ 2,980
Dividends 538 200
Fee income 288 --
---------------- ---------------
Total Revenue 20,409 3,180
---------------- ---------------
EXPENSES:
Interest 6,635 1,904
Management fees:
Base 1,149 205
Incentive 1,698 128
Professional fees & other 183 250
---------------- ---------------
Total Expenses 9,665 2,487
---------------- ---------------
Net realized gains (losses) 7,215 (20)
Recognized loss on available for-
sale equity securities (545)
---------------- ---------------
Net income before income taxes 17,959 128
Income tax provision 55 --
---------------- ---------------
Net income $ 17,904 $ 128
================ ===============
Basic income per share $ 1.46 $ 0.04
================ ===============
Diluted income per share $ 1.46 $ 0.03
================ ===============
Basic weighted average shares 12,268 3,615
================ ===============
Diluted weighted average shares 12,289 3,663
================ ===============
FBR ASSET INVESTMENT CORPORATION
CONDENSED STATEMENT OF OPERATIONS
[FBR LOGO] (In thousands, except per share amounts)
(Unaudited)
SELECTED BALANCE SHEET DATA
MARCH 31, 2002 DECEMBER 31, 2001 AVERAGE DAILY BALANCE
-------------- ----------------- ---------------------
Mortgage- backed securities 2,621,313,602 1,238,365,511 1,572,174,691
Reverse repurchase agreements 2,338,032,000 1,105,145,000 1,348,463,256
Equity securities 52,323,836 61,692,660 46,767,537
Loans 3,000,000 8,000,000 6,502,533
Equity capital 343,834,131 203,865,546 321,760,806
MARCH 31, 2001 DECEMBER 31, 2000 AVERAGE DAILY BALANCE
-------------- ----------------- ---------------------
Mortgage- backed securities 148,922,771 154,848,205 151,852,327
Reverse repurchase agreements 125,957,000 133,896,000 130,901,856
Equity securities 40,975,449 28,110,190 35,085,081
Loans 12,000,000 4,000,000 1,690,377
Equity capital 84,305,405 86,840,584 85,090,891