EXHIBIT 99.1
FBR Reports Third Quarter 2003 Net Income of $57 Million,
or $0.42 (Basic) and $0.41 (Diluted) per Share
ARLINGTON, Va., October 28, 2003 - Friedman, Billings, Ramsey Group, Inc. (NYSE:
FBR) today reported net income after tax of $57 million, or $0.42 (basic) and
$0.41 (diluted) per share, on gross revenues of $185 million for the quarter
ended September 30, 2003, compared to net income of $15.1 million, or $0.33
(basic) and $0.31 (diluted) per share on gross revenues of $81.7 million for the
third quarter of 2002.
Reflected in these results is the negative impact of purchase accounting
adjustments related to FBR's merger with FBR Asset Investment Corporation on
March 31, 2003. As a result of the purchase accounting step-up in the basis of
the mortgage-backed securities (MBS) owned by FBR Asset at the time of the
merger, non-cash premium amortization is greater than it would have been without
these adjustments. The impact of the increased amortization (the "Merger
Amortization") associated with the step-up reduced net interest income by $0.07
per share during the quarter. In addition, following the merger and the
establishment of a quarterly dividend payment by FBR Group, FBR treats as
compensation expense the dividends paid on employee-owned shares pledged in
connection with stock incentive loans to those employees. The impact of this
additional compensation expense was $0.02 per share during the quarter. The
company believes this is important because it currently plans to sell these
loans, eliminating this expense.
Adjusting for the above two items, diluted earnings per share of $0.41 would
increase by $0.09 to $0.50 per share for the third quarter.
FBR's third quarter results were primarily influenced by a challenging MBS
environment, offset by strong continued growth in the investment banking
business. During the quarter, extraordinarily high prepayment speeds were
experienced in the mortgage-backed securities market. The impact of this
increased prepayment activity, from an already high average of 35 CPR (constant
prepayment rate) in the second quarter to an average of 41 CPR in the third
quarter, reduced the company's net interest margin in its MBS portfolio by
approximately $9 million, or 11 basis points quarter over quarter, in addition
to the previously mentioned Merger Amortization. FBR's investment banking
business experienced its strongest quarter of the year in the third quarter,
offsetting the impact of this unique MBS environment and demonstrating the
strength of the company's diversified business model.
"As anticipated, investment banking revenues for the third quarter exceeded the
entire first half of the year," said Co-Chairman and Co-CEO Eric F. Billings.
"The performance in the third quarter from our capital markets business
demonstrated the progress we have made in building the business through the
addition of new people and broadening our industries of focus. Additionally, we
are continuing to benefit from and build upon our industry-leading underwriting
track record. We believe that this past quarter is one that demonstrated clearly
the unique discipline and capability of our origination and distribution
franchise. We expect to continue to grow and enhance this business over the next
year, just as we have grown and enhanced the company's capital through FBR's
recently completed follow-on offering which raised net proceeds of $430
million."
The company reported investment banking revenues of $90.2 million in the third
quarter, versus $58.9 million in the third quarter 2002, a 53% increase. During
the period, FBR completed 11 lead-managed equity offerings totaling $1.9
billion.* For the first nine months of 2003 investment banking revenues were
$150.8 million, a 26% increase over the $119.6 million in revenues in the first
nine months of 2002. "Since the end of the third quarter, investment banking has
completed six lead-managed equity offerings totaling $1.2 billion, while at the
same time substantially growing the investment banking pipeline," said J. Rock
Tonkel, Head of Investment Banking.
Through September 30, 2003, FBR ranks as the number three lead-managed IPO
underwriter in the United States (ranked by dollar volume according to CommScan
EquiDesk). FBR lead-managed public common equity offerings completed during the
first three quarters of this year ranked number one in after-market performance
among major underwriters. This continues a record in which FBR ranks number one
in aftermarket performance among major underwriters for all public common equity
offerings during the last five years.**
In the institutional brokerage business, revenues continued to grow despite a
continued reduction in spreads throughout the securities industry. Brokerage
revenue for the quarter of $19.7 million exceeded revenue during the same
quarter last year by 37%. The company believes that in addition to growing
market share in both its investment banking and institutional brokerage
businesses, in the future institutional brokerage revenues will grow at a faster
rate as its market share becomes more comparable with that of investment
banking.
In its asset management business, FBR recorded fee revenues of $7.2 million,
including base management and administration fees of $5.6 million and non-cash
incentive income of $1.6 million. Net assets under management totaled $1.8
billion as of September 30, 2003, representing a 28% increase from September 30,
2002.
"In addition to the continued growth of each of our operating businesses, FBR
completed several strategic initiatives during the third quarter," added Emanuel
J. Friedman, Co-Chairman and Co-CEO. "In July we added a team of ABS bankers
providing FBR with its first entry into the structured finance fixed-income
business. This group will focus on the securitization of non-prime mortgage
assets. This is an industry where FBR maintains the leadership position in
equity underwriting and has extensive issuer relationships. Also during the
quarter, FBR established a $5 billion A1+/P1 rated asset-backed commercial paper
vehicle called Georgetown Funding, which has strengthened and diversified our
funding sources for our agency-backed MBS portfolio."
In the company's mortgage-backed securities portfolio the asset yield was 2.37%
for the quarter. This yield was impacted by both the Merger Amortization and the
historically high prepayments, which averaged 41 CPR for the quarter. The
company's weighted average cost of financing for the portfolio was 1.12%,
including the cost of hedging. The resulting net interest spread for the quarter
was 1.25%, compared to 1.96% in the previous quarter, and 2.73% in last year's
third quarter, for the stand-alone portfolio of FBR Asset. Excluding the Merger
Amortization, the net interest spread was 1.69% for the quarter, compared to
2.09% in the second quarter of 2003. A 1.69% net interest spread results in a
return on equity approximately equal to 20%, using the third quarter leverage
ratio. This demonstrated the resiliency of the company's mortgage-backed
security business, given the extreme conditions of the third quarter. FBR's
mortgage-backed portfolio averaged $7.9 billion during the third quarter. The
premium in the MBS portfolio was 2.28% at the end of the quarter, and the
company had approximately no unrealized net gain or loss in the overall
portfolio. The company continues to own only adjustable rate mortgage-backed
securities guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae, and with a
duration of 0.93 as of September 30, 2003.
"We were particularly pleased with the performance of our mortgage-backed
portfolio this quarter, given the uniquely challenging environment," said
Richard J. Hendrix, Chief Investment Officer. "Specifically, our low duration
and low leverage combined to insulate us from the extremes in valuation changes
and rapid asset prepayments that characterized the third quarter MBS market.
Through this period we did not have to sell assets, allowing us to maintain our
target portfolio leverage and provide an acceptable return on equity despite the
pressure on yields from rapid amortization. Already in October, CPR's have begun
to fall, allowing our net interest spread to begin to widen to more historical
levels."
In its merchant banking portfolio, FBR generated realized gains and dividends of
$15.1 million during the quarter ended September 30, 2003. The company made one
significant merchant banking investment during the quarter of $25 million in a
specialty lines insurance company. FBR's merchant banking portfolio and other
long term investments totaled $254.8 million, or approximately 24% of the
company's equity, as of September 30, 2003. Of this total, $178 million was held
in the merchant banking portfolio, $57.4 million was held in alternative asset
funds, and $19.4 million was held in broker-dealer investments. The company had
unrealized gains in the merchant banking portfolio of $50.8 million as of
September 30, 2003.
FBR had 136.2 million common shares outstanding, shareholders' equity of $1.1
billion, and book value per share of $7.84 as of September 30, 2003, compared
with 46.5 million common shares outstanding, shareholders' equity of $ 245.2
million, and book value per share of $5.28 as of December 31, 2002. Subsequent
to the end of the quarter, the company completed a follow-on offering of 26.4
million shares (including over-allotment option), at $17.00 per share, raising
$430 million. Including the impact of this offering, FBR had 162.6 million
shares outstanding, shareholders' equity of $1.5 billion, and book value per
share of $9.21.
Friedman, Billings, Ramsey Group, Inc. is a leading investment bank that
provides investment banking, institutional brokerage, asset management, and
private client services through its operating subsidiaries and invests in
mortgage-backed securities and merchant banking opportunities.*** FBR focuses
capital and financial expertise on six industrial sectors: financial services,
real estate, technology, healthcare, energy and diversified industries. FBR,
headquartered in the Washington, D.C. metropolitan area, with offices in
Arlington, Va. and Bethesda, Md., also has offices in Atlanta, Boston,
Charlotte, Chicago, Cleveland, Denver, Irvine, London, New York, Portland, San
Francisco, Seattle, and Vienna. FBR has elected REIT status for tax purposes.
For more information, see http://www.fbr.com.
------------------
* IPO's, public follow-ons, public and unregistered secondaries, and 144A
institutional equity offerings.
**Source: CommScan EquiDesk, pricing as of October 27, 2003, for transactions
completed during the periods 01/01/03 through 09/30/03 and 09/30/98 through
09/30/03. "Major underwriters" is defined as those firms with greater than 10
transactions for the nine months ended September 30, 2003 and greater than 50
transactions for the five year period.
*** Investment banking and institutional brokerage provided in the United States
by Friedman, Billings, Ramsey & Co., Inc. and FBR Investment Services Inc., and
in Europe, the Middle East and Asia by Friedman, Billings, Ramsey International,
Ltd.
A live webcast of FBR's conference call will be available at 9:00am on October
29, 2003, 2003 (Eastern Time) via
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=FBR. Replays of the
webcast will be available afterward.
The company believes that the pro forma information about Merger Amortization
set forth in the second paragraph when read in conjunction with the company's
GAAP financial information, can provide useful supplemental information for
investors analyzing period to period comparisons of the company's financial
statements because it is the result of the company's merger on March 31, 2003.
Financial data follows.
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Quarter ended September 30,
2003 % 2002 %
REVENUES:
Investment banking $90,251 55.7% $58,910 72.6%
Institutional brokerage 19,694 12.1% 14,372 17.7%
Asset management:
Base fees 5,602 3.5% 7,208 8.9%
Incentive and investment income 5,002 3.1% 1,545 1.9%
Technology sector investment and
incentive loss (729) -0.5% (2,202) -2.7%
Principal investment:
Interest 46,849 28.9% - 0.0%
Realized gains 14,358 8.9% - 0.0%
Dividends 1,258 0.8% - 0.0%
Other 2,675 1.7% 1,879 2.3%
------- ------ ------- ------
Gross revenues 184,960 114.2% 81,712 100.7%
Interest expense 22,972 14.2% 608 0.7%
------- ------ ------- ------
Revenues, net of interest
expense 161,988 100.0% 81,104 100.0%
------- ------ ------- ------
EXPENSES:
Compensation and benefits 67,505 41.7% 45,725 56.4%
Business development and professional
services 11,328 7.0% 8,650 10.6%
Other 11,711 7.2% 8,737 10.8%
------- ------ ------- ------
Total expenses 90,544 55.9% 63,112 77.8%
------- ------ ------- ------
Net income before income taxes and
extraordinary gain 71,444 44.1% 17,992 22.2%
Income tax provision 14,483 8.9% 2,343 2.9%
------- ------ ------- ------
Net income before extraordinary gain 56,961 35.2% 15,649 19.3%
------- ------ ------- ------
Extraordinary gain - 0.0% - 0.0%
Income tax provision on extraordinary
gain - 0.0% 536 0.7%
------- ------ ------- ------
Net Income $56,961 35.2% $15,113 18.6%
======= ====== ======= ======
Basic earnings per share before
extraordinary gain $0.42 $0.34
Diluted earnings per share before ======= =======
extraordinary gain $0.41 $0.32
======= =======
Basic earnings per share $0.42 $0.33
======= =======
Diluted earnings per share $0.41 $0.31
======= =======
Weighted average shares - basic 135,670 46,370
======= =======
Weighted average shares - diluted 138,269 49,526
======= =======
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Nine Months ended
September 30,
2003 % 2002 %
REVENUES:
Investment banking $150,781 44.5% $119,555 57.5%
Institutional brokerage 50,607 14.9% 48,501 23.3%
Asset management:
Base fees 18,662 5.5% 20,837 10.0%
Incentive and investment income 23,308 6.9% 20,769 10.0%
Technology sector investment and
incentive loss (1,232) -0.3% (5,733) -2.7%
Principal investment:
Interest 98,432 29.1% - 0.0%
Realized gains 32,187 9.5% - 0.0%
Dividends 3,741 1.1% - 0.0%
Other 6,452 1.9% 5,407 2.6%
-------- ------ -------- ------
Gross revenues 382,938 113.1% 209,336 100.7%
Interest expense 44,339 13.1% 1,408 0.7%
Revenues, net of interest -------- ------ -------- ------
expense 338,599 100.0% 207,928 100.0%
-------- ------ -------- ------
EXPENSES:
Compensation and benefits 135,150 39.9% 115,455 55.5%
Business development and
professional services 27,885 8.2% 23,044 11.1%
Other 30,601 9.1% 24,769 11.9%
-------- ------ -------- ------
Total expenses 193,636 57.2% 163,268 78.5%
-------- ------ -------- ------
Net income before income taxes
and extraordinary gain 144,963 42.8% 44,660 21.5%
Income tax provision 23,507 6.9% 2,343 1.1%
-------- ------ -------- ------
Net income before extraordinary
gain 121,456 35.9% 42,317 20.4%
-------- ------ -------- ------
Extraordinary gain - 0.0% 1,413 0.7%
Income tax provision on
extraordinary gain - 0.0% 536 0.3%
-------- ------ -------- ------
Net income $121,456 35.9% $43,194 20.8%
======== ====== ======== ======
Basic earnings per share before
extraordinary gain $1.14 $0.92
Diluted earnings per share before ===== =====
extraordinary gain $1.11 $0.88
===== =====
Basic earnings per share $1.14 $0.94
===== =====
Diluted earnings per share $1.11 $0.90
===== =====
Weighted average shares - basic 106,279 45,995
======== ========
Weighted average shares - diluted 109,103 48,218
======== ========
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
Financial & Statistical Supplement -
Operating Results (unaudited)
(Dollars in thousands, except per
share data)
YTD 2003 Q-3 03 Q-2 03 Q-1 03
Revenues
Investment banking:
Underwriting $70,281 $37,518 $23,975 $8,788
Corporate finance 70,739 51,637 13,383 5,719
Investment gains 9,761 1,096 5,433 3,232
Institutional brokerage:
Principal transactions 16,876 6,549 6,576 3,751
Agency commissions 33,731 13,145 13,049 7,537
Asset management:
Base management fees 18,662 5,602 5,369 7,691
Incentive income 8,482 1,770 1,133 5,579
Net investment income
(loss) 14,826 3,232 8,968 2,626
Technology sector
investment and
incentive income (loss) (1,232) (729) (66) (437)
Principal investment:
Interest 98,432 46,849 49,088 2,495
Realized gains 32,187 14,358 17,770 59
Dividends 3,741 1,258 1,542 941
Other 6,452 2,675 2,219 1,558
-------- -------- -------- -------
Total revenues 382,938 184,960 148,439 49,539
-------- -------- -------- -------
Expenses
Compensation and benefits 135,150 67,505 42,841 24,804
Business development &
professional services 27,885 11,328 10,678 5,879
Clearing and brokerage
fees 5,037 2,057 1,748 1,232
Occupancy & equipment 6,842 2,426 2,217 2,199
Communications 7,406 2,969 2,228 2,209
Interest expense 44,339 22,972 19,721 1,646
Other operating expenses 11,316 4,259 4,053 3,004
------- ------- ------- -------
Total expenses 237,975 113,516 83,486 40,973
------- ------- ------- -------
Net income before taxes
and extraordinary gain 144,963 71,444 64,953 8,566
Income tax provision 23,507 14,483 6,181 2,843
------- ------- ------- -------
Net income before
extraordinary gain $121,456 $56,961 $58,772 $5,723
Extraordinary gain - - - -
Income tax provision on
extraordinary gain - - - -
-------- ------- ------- ------
Net income $121,456 $56,961 $58,772 $5,723
======== ======= ======= ======
Net income before taxes
and extraordinary gain as
a percentage of revenue 37.9% 38.6% 43.8% 17.3%
ROE (annualized) 24.7% 20.7% 21.9% 3.6%
Total shareholders'
equity $1,068,153 $1,068,153 $1,136,093 $1,011,647
Basic earnings per share $1.14 $0.42 $0.43 $0.12
Diluted earnings per share $1.11 $0.41 $0.43 $0.12
Ending shares outstanding
(in thousands) 136,180 136,180 136,087 131,576
Book value per share $7.84 $7.84 $8.35 $7.69
Gross assets under
management (in millions)
Managed accounts $63.8 $63.8 $69.6 $818.8
Hedge & offshore funds 245.9 245.9 234.8 237.5
Mutual funds 1,492.1 1,492.1 1,419.6 1,196.8
Private equity funds 40.6 40.6 32.5 32.7
Technology sector funds 46.1 46.1 44.8 49.7
-------- -------- -------- --------
Total $1,888.5 $1,888.5 $1,801.3 $2,335.5
Net assets under
management (in millions)
Managed accounts $63.8 $63.8 $69.6 $82.7
Hedge & offshore funds 222.3 222.3 196.8 159.4
Mutual funds 1,480.5 1,480.5 1,410.5 1,191.6
Private equity funds 33.2 33.2 30.9 28.6
Technology sector funds 39.7 39.7 40.4 45.4
-------- -------- -------- --------
Total $1,839.5 $1,839.5 $1,748.2 $1,507.7
Productive assets under
management (in millions)
Managed accounts $63.8 $63.8 $69.6 $818.8
Hedge & offshore funds 222.3 222.3 196.8 159.4
Mutual funds 1,480.5 1,480.5 1,410.5 1,191.6
Private equity funds 88.6 88.6 88.1 90.9
Technology sector funds 92.2 92.2 89.5 249.2
-------- -------- -------- --------
Total $1,947.4 $1,947.4 $1,854.5 $2,509.9
Employee count 479 479 500 493
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
Financial & Statistical Supplement -
Operating Results (unaudited)
(Dollars in thousands, except per
share data)
YTD 2002 Q-4 02 Q-3 02 Q-2 02 Q-1 02
Revenues
Investment banking:
Underwriting $76,556 $8,890 $30,108 $25,248 $12,310
Corporate finance 58,595 11,119 26,175 9,827 11,474
Investment gains 8,725 4,312 2,627 1,595 191
Institutional brokerage:
Principal transactions 27,512 6,339 5,743 8,372 7,058
Agency commissions 35,672 8,344 8,629 9,954 8,745
Asset management:
Base management fees 28,956 8,119 7,208 7,633 5,996
Incentive income 14,258 5,291 4,282 2,902 1,783
Net investment income
(loss) 16,276 4,474 (2,737) 8,517 6,022
Technology sector
investment and
incentive income
(loss) (5,622) 111 (2,202) (2,432) (1,099)
Principal investment:
Interest - - - - -
Realized gains - - - - -
Dividends - - - - -
Other 7,275 1,868 1,879 1,638 1,890
------- ------ ------ ------ ------
Total revenues 268,203 58,867 81,712 73,254 54,370
------- ------ ------ ------ ------
Expenses
Compensation and
benefits 147,072 31,617 45,725 38,411 31,319
Business development &
professional services 30,589 7,545 8,650 7,982 6,412
Clearing and brokerage
fees 5,353 1,467 1,443 1,817 626
Occupancy & equipment 8,838 2,274 2,309 2,046 2,209
Communications 8,185 1,910 2,009 2,187 2,079
Interest expense 2,073 665 608 430 370
Other operating expenses 10,652 2,608 2,976 2,602 2,466
------- ------ ------ ------ ------
Total expenses 212,762 48,086 63,720 55,475 45,481
------- ------ ------ ------ ------
Net income before taxes
and extraordinary gain 55,441 10,781 17,992 17,779 8,889
Income tax provision 3,035 692 2,343 - -
------- ------- ------- ------- -------
Net income before
extraordinary gain $52,406 $10,089 $15,649 $17,779 $8,889
Extraordinary gain 1,413 - - - 1,413
Income tax provision on
extraordinary gain 536 - 536 - -
------- ------- ------- ------- -------
Net income $53,283 $10,089 $15,113 $17,779 $10,302
======= ======= ======= ======= =======
Net income before taxes
and extraordinary gain
as a percentage of
revenue 20.7% 18.3% 22.0% 24.3% 16.3%
ROE (annualized) 24.8% 16.8% 26.7% 34.4% 21.7%
Total shareholders'
equity $245,165 $245,165 $234,625 $218,368 $194,590
Basic earnings per share $1.16 $0.22 $0.33 $0.39 $0.23
Diluted earnings per
share $1.10 $0.21 $0.31 $0.36 $0.22
Ending shares
outstanding (in
thousands) 46,456 46,456 46,396 46,339 45,751
Book value per share $5.28 $5.28 $5.06 $4.71 $4.25
Gross assets under
management (in
millions)
Managed accounts $6,538.0 $6,538.0 $7,356.0 $4,152.3 $2,757.7
Hedge & offshore funds 247.0 247.0 232.3 216.0 209.2
Mutual funds 1,188.5 1,188.5 1,071.2 1,313.4 1,270.4
Private equity funds 34.7 34.7 41.7 46.1 46.4
Technology sector funds 63.8 63.8 54.0 56.6 60.4
-------- -------- -------- -------- --------
Total $8,072.0 $8,072.0 $8,755.2 $5,784.4 $4,344.1
Net assets under
management (in
millions)
Managed accounts $871.5 $871.5 $849.7 $748.5 $394.5
Hedge & offshore funds 162.4 162.4 162.9 188.5 157.7
Mutual funds 1,173.3 1,173.3 1,064.4 1,297.7 1,214.1
Private equity funds 30.9 30.9 40.1 45.5 45.5
Technology sector funds 48.2 48.2 48.6 52.3 55.8
-------- -------- -------- -------- --------
Total $2,286.3 $2,286.3 $2,165.7 $2,332.5 $1,867.6
Productive assets under
management (in
millions)
Managed accounts $6,538.0 $6,538.0 $7,356.0 $4,152.3 $2,757.7
Hedge & offshore funds 162.4 162.4 162.9 188.5 157.7
Mutual funds 1,173.3 1,173.3 1,064.4 1,297.7 1,214.1
Private equity funds 91.2 91.2 92.5 94.8 95.3
Technology sector funds 249.0 249.0 248.5 248.1 249.3
-------- -------- -------- -------- --------
Total $8,213.9 $8,213.9 $8,924.3 $5,981.4 $4,474.1
Employee count 481 481 464 445 441
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(Unaudited)
ASSETS 30-Sep-03 31-Dec-02
Cash and cash equivalents $252,102 $90,007
Receivables 64,100 28,122
Due from clearing broker 84,062 43,146
Investments:
Mortgage-backed securities, at
fair value 8,408,164 38,505
Trading securities, at market value 6,745 8,298
Long-term investments 254,830 150,447
Bank loans, net - 15,052
MMA acquired management contracts 16,643 17,629
Goodwill 108,013 -
Building, furniture, equipment and
leasehold improvements, net 5,545 9,156
Other assets 17,607 5,823
---------- --------
Total assets $9,217,811 $406,185
========== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Trading account securities sold
short, at market value $24,002 $19,932
Repurchase agreements 3,880,788 16,352
Commercial paper 4,046,645 -
Interest rate swaps 3,877 -
Dividends payable 47,621 -
Interest payable 3,404 -
Accounts payable and accrued expenses 44,193 16,412
Accrued compensation and benefits 53,512 41,255
Bank deposits - 51,215
Short-term loans payable - 10,588
Long-term debt 45,616 5,266
--------- ---------
Total liabilities 8,149,658 161,020
--------- ---------
Shareholders' equity:
Common stock, 140,061 and 50,456 shares 1,401 505
Additional paid-in capital 1,002,663 211,724
Employee stock loan receivable
including accrued interest
(3,881 and 4,000 shares) (24,338) (24,182)
Deferred compensation (2,216) -
Accumulated other comprehensive
income 54,652 4,345
Retained earnings 35,991 52,773
---------- ---------
Total shareholders' equity 1,068,153 245,165
---------- ---------
Total liabilities and ---------- ---------
shareholders' equity $9,217,811 $406,185
========== =========
Book Value per Share $7.84 $5.28
Shares Outstanding 136,180 46,456
Statements concerning future performance, developments, events, market
forecasts, revenues, expenses, earnings, run rates and any other guidance on
present or future periods, constitute forward-looking statements that are
subject to a number of factors, risks and uncertainties that might cause actual
results 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, interest rates, costs
of borrowing, interest spreads, mortgage pre-payment speeds, risks associated
with merchant banking investments, the realization of gains and losses on
principal investments, available technologies, competition for business and
personnel, and general economic, political and market conditions. These and
other risks are described in the company's Annual Report and Form 10-K and
quarterly reports on Form 10-Q that are available from the company and from the
SEC.
# # #
Investor Contact: Kurt Harrington 703.312.9647 or kharrington@fbr.com
Media Contacts: Bob Leahy 703.312.9745 or bleahy@fbr.com or
Bill Dixon 703.469.1092 or bdixon@fbr.com