FBR Group Reports Fourth Quarter and Full Year 2007 Financial Results
PRNewswire - First Call
Arlington, Virginia
NYSE: FBR

ARLINGTON, Va., Feb. 21 /PRNewswire-FirstCall/ -- Friedman, Billings, Ramsey Group, Inc. (FBR Group; NYSE: FBR) today reported a net after-tax loss of $270.4 million, or $1.77 per share (diluted), for the quarter ended December 31, 2007 compared to net after-tax earnings of $3.8 million, or $0.02 per share (diluted) in the fourth quarter of 2006. Of the quarterly loss, $108 million is the result of a non-cash write-down of goodwill. In addition, under Generally Accepted Accounting Principles (GAAP), upon the discharge of the First NLC Financial Services (FNLC) bankruptcy - expected to occur in the first six months of 2008 - the Company estimates $70 million of fourth quarter losses will be recovered. Net of these two non-cash items, the quarterly loss was $92.4 million.

For the year, FBR Group had a net after-tax loss of $660.3 million, or $3.95 per share (diluted), compared to a net after-tax loss of $67.3 million, or $0.39 per share (diluted), in 2006. Net of intangible asset write-downs of $173 million and the expected $70 million FNLC loss recovery, the loss for 2007 was $417.3 million. Inclusive of the expected FNLC loss recovery, tangible book value net of Accumulated Other Comprehensive Income (AOCI) as of December 31, 2007 was $3.10(1) per share.

Adjusted for GAAP recovery of $70 million associated with FNLC losses, FBR Group ended the quarter with $777 million of consolidated tangible capital, including $320 million of trust preferred securities. Of this tangible capital, $254 million was attributable to FBR Group's 52% ownership interest in FBR Capital Markets. Of the remaining $523 million of tangible capital, FBR Group had approximately $370 million invested in cash and agency-backed securities.

Importantly, at December 31, 2007, FBR Group also had $372 million of net operating loss carry-forwards and $268 million of capital loss carry-forwards.

    The principal economic components of the fourth quarter loss were:

    -- previously announced (Dec. 21, 2007) $40 million of write-downs and
       losses relating to the sale of approximately $200 million of non-
       securitized non-prime mortgage loans (net of reserves) originated by
       First NLC Financial Services,
    -- $15.8 million, representing FBR Group's proportionate share of 52%-
       owned FBR Capital Markets Corporation's (Nasdaq: FBCM) fourth quarter
       loss, and
    -- $16.2 million in valuation adjustments to securities in FBR Group's
       merchant banking and non-prime securities portfolios.

"Whole loan mortgages and on-balance sheet residuals have been eliminated. Our remaining non-prime securities exposure is below $30 million - about 1.5% of total assets - and is self-liquidating," said J. Rock Tonkel, Jr., President and Chief Operating Officer of FBR Group. "In the fourth quarter, we deployed cash into the company's core business of investing in agency mortgage-backed securities (MBS). With current spreads exceeding 175 basis points on a substantially hedged basis for certain segments of the agency MBS market, we intend to continue to deploy cash and re-deploy additional liquidity created from the disposition of our remaining non-agency assets into the core business."

Mortgage Investment Portfolio

FBR Group's investments in mortgage-backed securities, primarily government agency securities, averaged $1.1 billion with a one-month CPR of 3.9, and an ending net premium of $1.0 million. The net yield on mortgage-backed securities for the fourth quarter was 5.83% with a corresponding cost of funds of 4.88%.

Merchant Banking

Excluding merchant banking investments of $58.3 million at FBR Capital Markets, the total value of the merchant banking investments held by FBR Group at the close of the fourth quarter was $53.0 million.

Looking Ahead

"With non-prime and credit exposure substantially eliminated, our balance sheet includes $523 million of long-term capital, approximately $370 million of which is in cash and highly liquid agency securities," said Eric F. Billings, Chairman and Chief Executive Officer of FBR Group. "That foundation is permitting us to take advantage of a significantly steepening yield curve by deploying our capital in a conservative, substantially hedged agency strategy that, we believe, will provide very acceptable returns. In addition, we are examining strategies to maximize the economic benefit that can be derived from the $372 million of net operating loss carry-forwards and $268 million of capital loss carry-forwards. All of this repositions the company to focus once again on building the core agency business, growing capital, increasing earnings and delivering growth in shareholder value."

FBR Capital Markets Corporation

FBR Capital Markets (Nasdaq: FBCM), a majority-owned subsidiary of FBR Group, yesterday reported a net after-tax loss of $27.8 million, or $0.43 per share (diluted), for the quarter ended December 31, 2007 compared to net after-tax income of $7.0 million, or $0.11 per share (diluted) in the fourth quarter of 2006.

For the year ending December 31, 2007, FBR Capital Markets had pre-tax earnings of $25.3 million, income tax expense of $20.1 million (including $8 million of non-cash items), resulting in after-tax earnings of $5.2 million or $0.08 per share (diluted), compared to a net after-tax loss of $9.8 million, or $0.18 per share (diluted), in 2006. Net revenues for the full year were $479.6 million compared to net revenues of $364.1 million in 2006.

At the close of the fourth quarter, FBR Capital Markets had $506.7 million in equity, $383.6 million of cash, no debt, and its book value was $7.91 per share compared to $8.25 per share at the end of the third quarter of 2007. Complete financial results and tables for FBR Capital Markets can be found at www.fbrcapitalmarkets.com.

The firm will host an earnings conference call this morning, Thursday, February 21, 2008 at 9:00 A.M. U.S. EST. Investors wishing to listen to the call may do so via the web at: http://phx.corporate-ir.net/phoenix.zhtml?c=71352&p=irol-irhome. Replays of the webcast will be available following the call.

Friedman, Billings, Ramsey Group, Inc. (FBR) invests in mortgage-related assets, merchant banking opportunities and is the majority owner of FBR Capital Market Corporation, a separate publicly traded company. FBR is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.fbr.com.

    (1) Accumulated Other Comprehensive Income (AOCI) includes changes in the
        value of available-for-sale securities and cash flow hedges. FBR
        believes that such changes represent temporary market fluctuations,
        are not reflective of our market strategy, and, therefore, the
        exclusion of AOCI provides a reasonable basis for calculating returns.
        Tangible book value net of AOCI and excluding the $70 million FNLC
        loss recovery is $2.63.

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.

                            Financial data follows


    FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per share amounts)
    (Unaudited)
                                                      Quarter Ended
                                                       December 31,

                                             2007       %      2006      %
    REVENUES:
    Investment banking:
      Capital raising                      $25,648   -76.5%  $71,883   40.9%
      Advisory                               4,973   -14.8%    9,172    5.2%
    Institutional brokerage:
      Principal transactions                 2,996    -8.9%       (8)   0.0%
      Agency commissions                    26,153   -78.0%   24,720   14.1%
      Mortgage trading interest                  -     0.0%    2,509    1.4%
      Mortgage trading net investment loss       -     0.0%     (309)  -0.2%
    Asset management:
    Base management fees                     5,542   -16.5%    5,051    2.9%
    Incentive allocations and fees              99    -0.3%      403    0.2%
    Principal investment:
      Interest                              51,057  -152.4%  181,491  103.3%
      Net investment loss                  (22,327)   66.6%   (8,826)  -5.0%
      Dividends                                805    -2.4%    2,043    1.2%
    Mortgage banking:
      Interest                               4,059   -12.1%   21,806   12.4%
      Net investment (loss) income         (83,174)  248.2%   27,555   15.7%
    Other                                    3,242    -9.8%    3,162    1.7%
        Total revenues                      19,073   -56.9%  340,652  193.8%
    Interest expense                        52,583  -156.9%  164,891   93.8%
        Revenues, net of interest
         expense                           (33,510)  100.0%  175,761  100.0%

    NON-INTEREST EXPENSES:
    Compensation and benefits               69,533  -207.5%   84,431   48.0%
    Professional services                   15,598   -46.5%   18,224   10.4%
    Business development                    10,878   -32.5%   11,884    6.8%
    Clearing and brokerage fees              2,797    -8.3%    3,505    2.0%
    Occupancy and equipment                 13,791   -41.2%   13,668    7.8%
    Communications                           6,899   -20.6%    6,307    3.6%
    Other operating expenses                15,706   -46.9%   20,116   11.3%
    Goodwill impairment                    108,013  -322.3%        -    0.0%
    Restructuring charges                   21,466   -64.1%        -    0.0%
        Total non-interest expenses        264,681  -789.9%  158,135   89.9%

    Operating (loss) income               (298,191)  889.9%   17,626   10.1%

    OTHER INCOME:
      Gain on sale of subsidiary shares          4     0.0%        -    0.0%

        Net (loss) income before income
         taxes and minority interest      (298,187)  889.8%   17,626   10.1%

    Income tax (benefit) provision         (15,817)   47.2%   11,859    6.7%
    Minority interest in  (losses)
     earnings of consolidated subsidiary   (12,008)   35.8%    1,957    1.1%

        Net (loss) income                $(270,362)  806.8%   $3,810    2.3%

    Basic (loss) earnings per share         $(1.77)            $0.02
    Diluted (loss) earnings per share       $(1.77)            $0.02

    Weighted average shares  - basic       152,375           172,531
    Weighted average shares  - diluted     152,375           172,600



    FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per share amounts)
    (Unaudited)
                                                 Twelve Months Ended
                                                     December 31,

                                             2007       %        2006      %
    REVENUES:
    Investment banking:
      Capital raising                     $282,619   267.9%   $190,187   50.0%
      Advisory                              34,063    32.3%     24,148    6.3%
    Institutional brokerage:
      Principal transactions                10,152     9.6%      5,814    1.5%
      Agency commissions                   104,792    99.3%    101,009   26.6%
      Mortgage trading interest                  -     0.0%     51,147   13.4%
      Mortgage trading net investment loss       -     0.0%     (3,301)  -0.9%
    Asset management:
      Base management fees                  23,549    22.3%     20,093    5.3%
      Incentive allocations and fees           401     0.4%      1,327    0.3%
    Principal investment:
      Interest                             501,130   475.0%    594,879  156.4%
      Net investment loss                 (221,956) -210.4%   (184,552) -48.5%
      Dividends                              3,173     3.0%     14,551    3.8%
    Mortgage banking:
      Interest                              51,245    48.6%     88,662   23.3%
      Net investment (loss) income        (222,032) -210.4%     83,786   22.0%
    Other                                   15,808    14.9%     20,154    5.4%
        Total revenues                     582,944   552.5%  1,007,904  264.9%
    Interest expense                       477,437   452.5%    611,800  160.8%
    Provision for loan losses                    -     0.0%     15,740    4.1%
        Revenues, net of interest
         expense and provision for
         loan losses                       105,507   100.0%    380,364  100.0%

    NON-INTEREST EXPENSES:
    Compensation and benefits              361,355   342.5%    309,065   81.3%
    Professional services                   55,741    52.8%     59,722   15.7%
    Business development                    43,518    41.2%     42,150   11.1%
    Clearing and brokerage fees             12,514    11.9%     11,820    3.1%
    Occupancy and equipment                 52,302    49.6%     50,051   13.2%
    Communications                          28,690    27.2%     24,398    6.4%
    Other operating expenses                82,246    78.0%     89,377   23.5%
    Goodwill impairment                    162,765   154.3%          -    0.0%
    Restructuring charges                   46,985    44.5%          -    0.0%
        Total non-interest expenses        846,116   802.0%    586,583  154.3%

    Operating loss                        (740,609) -702.0%   (206,219) -54.2%

    OTHER INCOME:
      Gain on sale of subsidiary shares    104,062    98.6%    121,511   31.9%

        Net loss before income taxes
         and minority interest            (636,547) -603.3%    (84,708) -22.3%

    Income tax provision (benefit)          22,932    21.7%    (14,682)  -3.9%
    Minority interest in earnings
     (losses) of consolidated subsidiary       774     0.7%     (2,751)  -0.7%

        Net loss                         $(660,253) -625.7%   $(67,275) -17.7%

    Basic loss per share                    $(3.95)             $(0.39)
    Diluted loss per share                  $(3.95)             $(0.39)

    Weighted average shares  - basic       166,975             171,667
    Weighted average shares  - diluted     166,975             171,667



    FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
    Financial & Statistical Supplement - Operating Results
    (Dollars in thousands, except per share data)
    (Unaudited)

                           For the
                        twelve months
                           ended
                          December
                          31, 2007     Q-4 07     Q-3 07     Q-2 07    Q-1 07
    Revenues
    Investment banking:
      Capital raising     $282,619    $25,648    $49,692   $110,032   $97,247
      Advisory              34,063      4,973     16,480      6,152     6,458
    Institutional brokerage:
      Principal
       transactions         10,152      2,996        968      4,152     2,036
      Agency commissions   104,792     26,153     26,257     28,564    23,818
    Asset management:
      Base management fees  23,549      5,542      6,119      6,360     5,528
      Incentive allocations
       and fees                401         99         82        116       104
    Principal investment:
      Interest             501,130     51,057    115,450    152,927   181,696
      Net investment loss (221,956)   (22,327)  (136,475)    (3,441)  (59,713)
      Dividends              3,173        805        526        883       959
    Mortgage banking:
      Interest              51,245      4,059      7,194     13,462    26,530
      Net investment loss (222,032)   (83,174)   (27,968)    (4,031) (106,859)
    Other                   15,808      3,242      3,990      4,482     4,094
        Total revenues     582,944     19,073     62,315    319,658   181,898
    Interest expense       477,437     52,583    112,072    143,231   169,551
        Revenues, net of
         interest expense  105,507    (33,510)   (49,757)   176,427    12,347

    Non-interest expenses
    Compensation and
     benefits              361,355     69,533     80,955    106,885   103,982
    Professional services   55,741     15,598     12,281     14,008    13,854
    Business development    43,518     10,878      7,713     11,158    13,769
    Clearing and brokerage
     fees                   12,514      2,797      3,953      3,063     2,701
    Occupancy and equipment 52,302     13,791     12,695     12,699    13,117
    Communications          28,690      6,899      7,148      7,592     7,051
    Other operating
     expenses               82,246     15,706     16,140     18,684    31,716
    Impairment of goodwill 162,765    108,013          -     28,900    25,852
    Restructuring charges   46,985     21,466      6,172      3,862    15,485
        Total non-interest
         expenses          846,116    264,681    147,057    206,851   227,527

    Operating loss        (740,609)  (298,191)  (196,814)   (30,424) (215,180)

    Other income (loss)
      Gain (loss) on sale of
       subsidiary shares   104,062          4     (2,450)   105,677       831

    (Loss) income before
     income taxes and
     minority interest    (636,547)  (298,187)  (199,264)    75,253  (214,349)

    Income tax provision
     (benefit)              22,932    (15,817)    15,288     55,011   (31,550)
    Minority interest in
     earnings (losses)
     of consolidated
     subsidiary                774    (12,008)       165      9,538     3,079

    Net (loss) income    $(660,253) $(270,362) $(214,717)   $10,704 $(185,878)


    ROE (annualized)         -84.4%    -138.2%     -91.9%       3.9%    -68.8%
    ROE (annualized-excluding
     AOCI) (1)               -82.9%    -135.8%     -90.5%       3.9%    -68.2%


    Total shareholders'
     equity               $393,691   $393,691   $698,214 $1,012,635  $989,213
    Total shareholders'
     equity, net of
     AOCI (1)             $406,537   $406,537   $711,693 $1,000,071  $993,753

    Basic (loss) earnings
     per share              $(3.95)    $(1.77)    $(1.28)     $0.06    $(1.08)
    Diluted (loss) earnings
     per share              $(3.95)    $(1.77)    $(1.28)     $0.06    $(1.08)

    Ending shares outstanding
     (in thousands)        150,674    150,674    158,671    173,756   172,846

    Book value per share     $2.61      $2.61      $4.40      $5.83     $5.72
    Book value per share,
     net of AOCI (1)         $2.70      $2.70      $4.49      $5.76     $5.75

    Gross assets under management
     (in millions)

    Managed accounts        $347.1     $347.1     $345.6     $291.3    $258.8
    Hedge & offshore funds    52.1       52.1       61.7       61.7      67.1
    Mutual funds           2,046.5    2,046.5    2,292.3    2,482.6   2,412.9
    Private equity and venture
     capital funds            23.8       23.8       31.3       33.8      41.2
        Total             $2,469.5   $2,469.5   $2,730.9   $2,869.4  $2,780.0

    Net assets under management
     (in millions)
    Managed accounts        $347.1     $347.1    $ 345.6     $291.3    $258.8
    Hedge & offshore funds    50.7       50.7       58.1       58.1      62.5
    Mutual funds           2,034.6    2,034.6    2,285.1    2,474.7   2,406.4
    Private equity and
     venture capital funds    22.6       22.6       29.8       32.0      38.0
        Total             $2,455.0   $2,455.0   $2,718.6   $2,856.1  $2,765.7

    Employee count           1,025      1,025      1,290      2,151     2,592

    (1) Accumulated Other Comprehensive Income (AOCI) includes changes in
        value of available-for-sale securities and cash flow hedges. We
        believe that such changes represent temporary market fluctuations, are
        not reflective of our market strategy, and therefore, exclusion of
        AOCI provides a reasonable basis for calculating returns.



    FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
    Financial & Statistical Supplement - Operating Results
    (Dollars in thousands, except per share data)
    (Unaudited)

                         For the
                        year ended
                         December
                         31, 2006     Q-4 06     Q-3 06     Q-2 06     Q-1 06
    Revenues
    Investment banking:
      Capital raising    $190,187    $71,883     $6,852    $45,117    $66,335
      Advisory             24,148      9,172      5,826      6,281      2,869
    Institutional brokerage:
      Principal
        transactions        5,814         (8)    (1,658)     1,760      5,720
      Agency commissions  101,009     24,720     24,388     28,492     23,409
      Mortgage trading
       interest            51,147      2,509     13,845     17,143     17,650
      Mortgage trading net
       investment loss     (3,301)      (309)    (1,546)      (209)    (1,237)
    Asset management:
      Base management fees 20,093      5,051      4,880      5,065      5,097
      Incentive allocations
       and fees             1,327        403        (31)       (53)     1,008
    Principal investment:
      Interest            594,879    181,491    150,649    113,613    149,126
      Net investment
       (loss) income     (184,552)    (8,826)  (170,621)   (31,290)    26,185
      Dividends            14,551      2,043      4,750      4,059      3,699
    Mortgage banking:
      Interest             88,662     21,806     22,476     21,267     23,113
      Net investment
       income              83,786     27,555     16,092     29,401     10,738
    Other                  20,154      3,162      6,540      5,465      4,987
        Total revenues  1,007,904    340,652     82,442    246,111    338,699
    Interest expense      611,800    164,891    165,237    128,189    153,483
    Provision for loan
     losses                15,740          -          -      7,348      8,392
        Revenues, net of
         interest expense
         and provision for
         loan losses      380,364    175,761    (82,795)   110,574    176,824

    Non-interest expenses
    Compensation and
     benefits             309,065     84,431     69,405     71,732     83,497
    Professional services  59,722     18,224     14,308     12,925     14,265
    Business development   42,150     11,884      7,577      8,604     14,085
    Clearing and brokerage
     fees                  11,820      3,505      2,917      3,082      2,316
    Occupancy and
     equipment             50,051     13,668     12,909     12,232     11,242
    Communications         24,398      6,307      6,471      6,013      5,607
    Other operating
     expenses              89,377     20,116     23,291     24,993     20,977
        Total non-interest
         expenses         586,583    158,135    136,878    139,581    151,989

    Operating (loss)
     income              (206,219)    17,626   (219,673)   (29,007)    24,835

    Other income

      Gain on sale of
      subsidiary shares   121,511          -    121,511          -          -

    (Loss) income before
     income taxes and
     minority interest    (84,708)    17,626    (98,162)   (29,007)    24,835

    Income tax (benefit)
     provision            (14,682)    11,859    (26,062)     1,240     (1,719)
    Minority interest in
     (loss) earnings of
     consolidated
     subsidiary            (2,751)     1,957     (4,708)         -          -

    Net (loss) income    $(67,275)    $3,810   $(67,392)  $(30,247)   $26,554


    ROE (annualized)         -5.4%       1.3%     -22.1%      -9.4%       8.2%
    ROE (annualized-excluding
     AOCI) (1)               -5.4%       1.3%     -22.2%      -9.5%       8.1%


    Total shareholders'
     equity            $1,171,045 $1,171,045 $1,163,681 $1,270,361 $1,301,949
    Total shareholders'
     equity, net of
     AOCI (1)          $1,186,181 $1,186,181 $1,181,372 $1,250,117 $1,306,450

    Basic (loss) earnings
     per share             $(0.39)     $0.02     $(0.39)    $(0.18)     $0.16
    Diluted (loss) earnings
     per share             $(0.39)     $0.02     $(0.39)    $(0.18)     $0.16

    Ending shares outstanding
     (in thousands)       172,759    172,759    172,506    171,812    171,236

    Book value per share    $6.78      $6.78      $6.75      $7.39      $7.60
    Book value per share,
     net of AOCI (1)        $6.87      $6.87      $6.85      $7.28      $7.63

    Gross assets under management
     (in millions)

    Managed accounts       $259.9     $259.9     $376.6     $386.8     $383.9
    Hedge & offshore funds   97.5       97.5      102.1      125.8      136.6
    Mutual funds          1,961.9    1,961.9    1,825.1    1,750.6    1,849.5
    Private equity and venture
     capital funds           42.2       42.2       48.5       48.2       50.5
    Total                $2,361.5   $2,361.5  $ 2,352.3   $2,311.4   $2,420.5

    Net assets under management
     (in millions)
    Managed accounts       $259.9     $259.9     $376.6     $386.8     $380.9
    Hedge & offshore funds   96.4       96.4       98.3      116.1      125.4
    Mutual funds          1,954.7    1,954.7    1,817.8    1,742.6    1,843.4
    Private equity and venture
     capital funds           40.5       40.5       46.9       46.7       49.1
    Total                $2,351.5   $2,351.5  $ 2,339.6   $2,292.2   $2,398.8

    Employee count          3,019      3,019      2,909      2,651      2,531

    (1) Accumulated Other Comprehensive Income (AOCI) includes changes in
        value of available-for-sale securities and cash flow hedges. We
        believe that such changes represent temporary market fluctuations, are
        not reflective of our market strategy, and therefore, exclusion of
        AOCI provides a reasonable basis for calculating returns.



    FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
    CONSOLIDATED BALANCE SHEETS
    (Dollars and shares in thousands, except per share amounts)
    (Unaudited)

    ASSETS                                       31-Dec-07          31-Dec-06

    Cash and cash equivalents                     $692,360           $189,956
    Restricted cash                                 14,166                132
    Receivables                                     75,357            217,249
    Investments:
      Mortgage-backed securities, at fair value  1,791,480          6,870,661
      Loans held for sale, net                      65,074          5,367,934
      Long-term investments                        169,274            185,492
      Trading securities, at fair value             19,057             18,180
    Due from clearing broker                             -             28,999
    Derivative assets, at fair value                 3,514             36,875
    Goodwill                                             -            162,765
    Intangible assets, net                           9,837             21,825
    Furniture, equipment, software and
     leasehold improvements, net                    30,451             44,111
    Prepaid expenses and other assets               74,385            208,339
        Total assets                            $2,944,955        $13,352,518


    LIABILITIES AND SHAREHOLDERS' EQUITY

    Liabilities:
    Trading account securities sold short
     but not yet purchased, at fair value             $206               $202
    Commercial paper                                     -          3,971,389
    Repurchase agreements                        1,744,377          3,059,330
    Derivative liabilities, at fair value            3,558             44,582
    Dividends payable                                    -              8,743
    Interest payable                                 2,991             12,239
    Accrued compensation and benefits               57,000             57,227
    Due to clearing broker                           7,059                  -
    Accounts payable, accrued expenses
     and other liabilities                         105,456             81,819
    Short-term loan financing                       63,981                  -
    Securitization financing, net                        -          4,486,046
    Long-term debt                                 323,575            324,453
        Total liabilities                        2,308,203         12,046,030

    Minority interest                              243,061            135,443

    Shareholders' equity:
    Common stock, 151,887 and 174,712 shares         1,519              1,747
    Additional paid-in capital                   1,468,801          1,562,485
    Accumulated other comprehensive loss,
     net of taxes                                  (12,846)           (15,136)
    Accumulated deficit                         (1,063,783)          (378,051)
        Total shareholders' equity                 393,691          1,171,045

        Total liabilities and shareholders'
         equity                                 $2,944,955        $13,352,518
 

For further information: Media - Lauren Burk +1-703-469-1004 lburk@fbr.com Investors - Paul Beattie +1-703-312-9673 pbeattie@fbr.com