EX-99.1 3 dex991.htm ITEM 6 Item 6

Exhibit 99.1

 

Item 6. Selected Financial Data

 

The following selected consolidated financial data is derived from our audited consolidated financial statements for the periods presented and should be read in conjunction with the more detailed information therein and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this annual report. Operating results are not necessarily indicative of future performance.

 

Selected Consolidated Financial and Other Data

(dollars in thousands, except per share amounts)

 

     For the Year Ended December 31,
  
     2004 (E)
     2003
     2002
     2001
     2000 (A)
  

Consolidated Statement of Operations Data:

                                         

Interest income

    $ 224,024     $ 170,420     $ 107,143     $ 57,904     $ 47,627  

Interest expense

      52,590       40,364       27,728       27,366       34,696  

Net interest income before credit recoveries (losses)

      171,434       130,056       79,415       30,538       12,931  

Credit (losses) recoveries

      (726 )     389       432       (3,608 )     (5,449 )

Gains (losses) on sales of mortgage assets

      144,950       144,005       53,305       37,347       (826 )

Losses on derivative instruments

      (8,905 )     (30,837 )     (36,841 )     (3,953 )     —    

Impairment on mortgage securities – available for sale

      (15,902 )     —         —         —         —    

General and administrative expenses

      218,038       174,408       84,594       46,505       3,017  

Income from continuing operations

      124,155       111,996       48,761       32,308       5,626  

Loss from discontinued operations, net of income tax (C)

      (8,766 )     —         —         —         —    

Net income available to common shareholders

      109,124       111,996       48,761       32,308       5,626  

Basic income per share:

                                         

Income from continuing operations available to common shareholders

    $ 4.66     $ 5.04     $ 2.35     $ 1.61     $ 0.26  

Loss from discontinued operations, net of income tax (C)

      (0.35 )     —         —         —         —    
    
 
 
 
 

Net income available to common shareholders

    $ 4.31     $ 5.04     $ 2.35     $ 1.61     $ 0.26  

Diluted income per share:

                                         

Income from continuing operations available to common shareholders

    $ 4.58     $ 4.91     $ 2.25     $ 1.51     $ 0.25  

Loss from discontinued operations, net of income tax (C)

      (0.34 )     —         —         —         —    
    
 
 
 
 

Net income available to common shareholders

    $ 4.24     $ 4.91     $ 2.25     $ 1.51     $ 0.25  
     As of December 31,
  
     2004
     2003
     2002
     2001
     2000 (A)
  

Consolidated Balance Sheet Data:

                                         

Mortgage Assets:

                                         

Mortgage loans

    $ 807,121     $ 792,709     $ 1,133,509     $ 365,560     $ 375,927  

Mortgage securities – available-for-sale

      489,175       382,287       178,879       71,584       46,650  

Mortgage securities – trading

      143,153       —         —         —         —    

Total assets

      1,861,311       1,399,957       1,452,497       512,380       494,482  

Borrowings

      1,295,422       1,005,516       1,225,228       362,398       382,437  

Stockholders’ equity

      426,344       300,224       183,257       129,997       107,919  

 

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     For the Year Ended December 31,
  
     2004
     2003
     2002
     2001
     2000
  

Other Data:

                                         

Loans originated and purchased, principal

    $ 8,486,028     $ 5,994,492     $ 2,781,539     $ 1,333,366     $ 719,341  

Loans securitized, principal

    $ 8,329,804     $ 5,319,435     $ 1,560,001     $ 1,215,100     $ 584,350  

Nonconforming loans sold, principal

    $ —       $ 151,210     $ 142,159     $ 73,324     $ 172,839  

Loan servicing portfolio, principal

    $ 12,151,196     $ 7,206,113     $ 3,657,640     $ 1,994,448     $ 1,112,615  

Annualized return on assets

      6.48 %     8.24 %     6.31 %     6.03 %     0.97 %

Annualized return on equity

      31.69 %     48.92 %     31.61 %     27.04 %     5.50 %

Taxable income (loss) available to common shareholders (D)

    $ 250,501     $ 137,851     $ 49,511     $ 5,221     $ (2 )

Taxable income (loss) per common share (B) (D)

    $ 9.04     $ 5.64     $ 2.36     $ 0.45     $ —    

Dividends declared per common share (B)

    $ 6.75     $ 5.04     $ 2.15     $ 0.48     $ —    

Dividends declared per preferred share

    $ 2.11     $ —       $ —       $ 1.08     $ 0.49  
(A) Does not include the assets, liabilities, equity and results of operations for NFI Holding Corporation. The common stock of NFI Holding Corporation was acquired on January 1, 2001.

 

(B) On January 29, 2003, a $0.165 special dividend related to 2002 taxable income was declared per common share.

 

(C) Discussion and detail regarding the loss from discontinued operations is provided in Note 14 to the consolidated financial statements.

 

(D) Taxable income (loss) for years prior to 2004, are actual while 2004 taxable income is an estimate. For a reconciliation of taxable income to GAAP income see “Income Taxes” included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The common shares outstanding as of the end of each period presented is used in calculating the taxable income (loss) per common share.

 

(E) Reclassified to conform to current year presentation in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, as described in Note 14 to the consolidated financial statements.

 

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