8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): November 1, 2005

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

(Exact name of Registrant as specified in its charter)

Virginia	54-1873198	000-50230
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)	(Commission File Number)

1001 Nineteenth Street

North Arlington, VA 22209

(Address of principal executive offices) (Zip code)

(703) 312-9500

(Registrant’s telephone number including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

On November 1, 2005, Friedman, Billings, Ramsey Group, Inc. (the “Company”) will post a copy of its Corporate Presentation on the Investor Relations portion of the Company’s website. A copy of the presentation is furnished herewith as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

EXHIBIT

99.1 Friedman, Billings, Ramsey Group, Inc. Corporate Presentation dated November 1, 2005.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
Date: November 1, 2005	By:	/s/    ERIC F. BILLINGS
		Eric F. Billings
		Chairman and Chief Executive Officer

EX-99.1

CAPITAL FOR YOUR CONQUEST

2005

N O V E M B E R

CORPORATE PRESENTATION

All information as of September 30, 2005 unless indicated.

Friedman, Billings, Ramsey Group, Inc.

November 1, 2005

Exhibit 99.1

Corporate Presentation

November 2005

Page 1

This document is intended solely for the use of the party to whom FBR has provided it, and is not to be

reprinted

or

redistributed

without

the

permission

of

FBR.

All

references

to

“FBR”

refer

to

Friedman,

Billings,

Ramsey Group, Inc., and its predecessors and subsidiaries as appropriate. Investment banking, sales,

trading,

and

research

services¹

are

provided

by

Friedman,

Billings,

Ramsey

&

Co.,

Inc.

(FBR

&

Co.),

except

for

those

online

offering,

mutual

fund

distribution

and

discount

brokerage

services

provided

by

FBR

Investment Services, Inc. (FBRIS), and those services in the U.K., Europe and elsewhere outside the United

States and Canada provided by Friedman, Billings, Ramsey International, Ltd. (FBRIL). FBR & Co. and

FBRIS are broker-dealers registered with the SEC and are members of the NASD.  FBRIL, based in the U.K,

is regulated by the Financial Services Authority.  Asset management services, including managed hedge

funds, mutual funds, private equity and venture capital funds, are provided by FBR subsidiaries FBR

Investment Management, Inc. (FBRIM), FBR Fund Advisers, Inc., and Money Management Advisers, Inc.,

which are investment advisers registered with the SEC. Trust services, including mutual fund custody and

administration, are provided by FBR National Trust Company.  Mortgage lending and origination provided by

First NLC Financial Services, LLC (FNLC).

On

March

31,

2003,

Friedman,

Billings,

Ramsey

Group,

Inc.

merged

with

FBR

Asset

Investment

Corporation

(“FBR

Asset”),

a

real

estate

investment

trust

(“REIT”)

managed

by

FBR

prior

to

the

merger.

The

merged

company,

Friedman,

Billings,

Ramsey

Group,

Inc.

is

structured

as

a

REIT

for

U.S.

Federal

Income

Tax

purposes

and

conducts

its

brokerage,

sales

and

trading,

investment

banking,

asset

management

and

banking business through taxable REIT subsidiaries.

This document is intended for information purposes only, and shall not constitute a solicitation or an offer to

buy or sell, any security or services, or an endorsement of any particular investment strategy. 

For additional important information, please visit our website, www.fbr.com.

CAUTIONS ABOUT FORWARD-LOOKING INFORMATION

This

presentation

and

the

information

incorporated

by

reference

in

this

presentation

include

forward

looking

statements

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933,

as

amended,

and

Section

21E

of

the

Securities

Exchange

Act

of

1934,

as

amended.

Some

of

the

forward-looking

statements

can

be

identified

by

the

use

of

forward-looking

words

such

as

“believes,”

“expects,”

“may,”

“will,”

“should,”

“seeks,”

“approximately,”

“plans,”

“estimates”

or

“anticipates”

or

the

negative

of

those

words

or

other

comparable

terminology.

Statements

concerning

projections,

future

performance

developments,

events,

revenues,

expenses,

earnings,

run

rates,

and

any

other

guidance

on

present

or

future

periods

constitute

forward-looking

statements.

Such

statements

include,

but

are

not

limited

to,

those

relating

to

the

effects

of

growth,

revenues

and

earnings,

our

principal

investing

activities,

levels

of

assets

under

management

and

our

current

equity

capital

levels.

Forward-looking

statements

involve

risks

and

uncertainties.

You

should

be

aware

that

a

number

of

important

factors

could

cause

our

actual

results

to

differ

materially

from

those

in

the

forward-looking

statements.

These

factors

include,

but

are

not

limited

to,

the

overall

environment

for

interest

rates,

repayment

speeds

within

the

mortgage

backed

securities

market,

risk

associated

with

equity

investments,

the

demand

for

public

offerings,

activity

in

the

secondary

securities

markets,

competition

among

financial

services

firms

for

business

and

personnel,

the

high

degree

of

risk

associated

with

venture

capital

investments,

the

effect

of

demand

for

public

offerings,

mutual

fund

and

401(k)

pension

plan

inflows

or

outflows

in

the

securities

markets,

volatility

of

the

securities

markets,

available

technologies,

the

effect

of

government

regulation

and

of

general

economic

conditions

on

our

own

business

and

on

the

business

in

the

industry

areas

on

which

we

focus,

fluctuating

quarterly

operating

results,

the

availability

of

capital

to

us

and

risks

related

to

online

commerce.

We

will

not

necessarily

update

the

information

presented

or

incorporated

by

reference

in

this

presentation

if

any

of

these

forward

looking

statements

turn

out

to

be

inaccurate.

Risks

affecting

our

business

are

described

throughout

our

Form

10-K,

especially

in

the

section

entitled

“Risk

Factors.”

The

entire

Form

10-K,

including

the

Consolidated

Financial

Statements

and

the

notes

and

any

other

documents

incorporated

by

reference

into

the

Form

10-K,

as

well

as,

the

Forms

10-Q

and

8-K

filed

subsequent

to

the

Form

10-K,

should

be

read

for

a

complete

understanding

of

our

business

and

the

risks

associated

with

that

business.

1.

Research

is

provided

by

FBR

&

Co.’s

Research

department,

which

is

independent

from

the

Investment

Banking

department

of

FBR

&

Co.,

and

has

the

sole

authority

to

determine

which

companies

receive

research coverage and the recommendation contained in the coverage.  In the normal course of its business, FBR & Co. seeks to perform investment banking and other fee generating services for

companies that are the subject of FBR & Co. research reports.  Research analysts are eligible to receive bonus compensation that

is based on FBR & Co.’s overall operating revenues, including revenues

generated by FBR & Co.’s investment banking department.  Specific information is contained in each research report concerning FBR& Co.’s relationship with the company that is the subject of the report.

Corporate Presentation

November 2005

Page 2

Investment Banking

#1 underwriter of common stock for U.S.

companies valued $2 billion and under ¹

#1

underwriter

of

Real

Estate

IPOs

1

#2

underwriter

of

Oil

&

Gas

common

stock

1

Research

and

Institutional

Brokerage

9

29% compound growth in customer trading

volume since 2000

Capital Markets

Business Overview

•

Friedman Billings Ramsey (NYSE: FBR) is a top ten investment banking firm

1

•

Most

efficient

platform

among

Major

Investment

Banks

as

measured

by

net income per employee

5, 6

•

31% Revenue Compound Annual Growth Rate (CAGR) 1992

through Q3 2005

•

Annualized core dividend: $ .80 (yield 8.5%)

2, 3

•

Core book value per share: $9.44

2, 4

•

Equity: $1.4 billion; Assets: $21.0 billion

2, 4

•

Market cap of $1.6 billion

2, 3

•

Focused on 8 specific industry sectors

1.

Source Dealogic; see page 6.

2.  See FBR 2005 Q3 Earnings Release, ex. 99.1.

3.  10/24/05 closing price of $9.36.

4.  As of 9/30/05.

5. FBR net income and employees exclude FNLC.

6.

Major Investment Banks: Publicly traded U.S. underwriters of public common stock in 2004, classified as Securities Brokers & Dealers (SIC 6211)  with greater than $200 million in revenue in their last reported

twelve months (ltm).  Sources: SEC filings, Capital IQ, Bloomberg, company financials.

7.  See pages 12-14.

8.  See page 10.

9.

Research is provided by FBR & Co.’ s Research department, which is independent from the Investment Banking department of FBR & Co., and has the sole authority to determine which companies receive research

coverage and the recommendation contained in the coverage.  In the normal course of its business, FBR & Co. seeks to perform investment banking and other fee generating services for companies that are the

subject of FBR & Co. research reports.  Research analysts are eligible to receive bonus compensation that is based on FBR & Co.’s overall operating revenues, including revenues generated by FBR & Co.’s

investment banking department.  Specific information is contained in each research report concerning FBR& Co.’s relationship with the company that is the subject of the report.

Mortgage Investing Portfolios

Mortgage Loans

Agency Issued Securities

Merchant Banking

Investment banking fees associated with

portfolio companies have totaled over

$450

million

since

January

1,

2001

8

Principal Investment

Mutual Funds

Top tier asset management products

Private Wealth Management

SEC-Registered Investment Adviser

Proprietary Managed Funds

Hedge Funds

Funds of Funds

Asset Management

7

Net Income Per Employee

6

(thousands of dollars; ltm

as of September 30, 2005)

$12

$13

$18

$34

$39

$70

$73

$80

$98

$120

$134

$91

$235

$249

Corporate Presentation

November 2005

Page 3

Legal Structure

REIT Parent with Full Taxpayer Subsidiaries

1.

Research

is

provided

by

FBR

&

Co.’s

Research

department,

which

is

independent

from

the

Investment

Banking

department

of

FBR

&

Co.,

and

has

the

sole

authority

to

determine

which

companies

receive

research coverage and the recommendation contained in the coverage.  In the normal course of its business, FBR & Co. seeks to perform investment banking and other fee generating services for

companies that are the subject of FBR & Co. research reports.  Research analysts are eligible to receive bonus compensation that

is based on FBR & Co.’s overall operating revenues, including revenues

generated by FBR & Co.’s investment banking department.  Specific information is contained in each research report concerning FBR& Co.’s relationship with the company that is the subject of the report.

FBR Taxable REIT Subsidiary (“TRS”) Holdings, Inc.

Full Taxpayer

Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR)

REIT Election

Mortgage Portfolios

Merchant Banking

First NLC Financial Services, LLC

Mortgage Origination

Friedman, Billings, Ramsey & Co., Inc.

Investment Banking

Institutional Brokerage

Research ¹

Friedman, Billings, Ramsey International, Ltd.

European Operations

FBR Investment Services, Inc.

FBR Direct

Online Brokerage

FBR Investment Management, Inc.

Private Wealth Management

Managed Funds

FBR Fund Advisers, Inc.

Mutual Funds

Corporate Presentation

November 2005

Page 4

Business Summary

1.

See pages 12-14.

2.  Headcount numbers approximate as of 9/30/05.

3.  See page 9.

4.  Source Dealogic; see page 6.

5.

Coverage

as

of

8/5/05.

Research

is

provided

by

FBR

&

Co.’s

Research

department,

which

is

independent

from

the

Investment

Banking

department

of

FBR

&

Co.,

and

has

the

sole

authority

to

determine

which

companies

receive research coverage and the recommendation contained in the coverage.  In the normal course of its business, FBR & Co. seeks to perform investment banking and other fee generating services for companies that are

the subject of FBR & Co. research reports.  Research analysts are eligible to receive bonus compensation that is based on FBR & Co.’s overall operating revenues, including revenues generated by FBR & Co.’s investment

banking department.  Specific information is contained in each research report concerning FBR& Co.’s relationship with the company that is the subject of the report.

194 Investment Banking 

personnel

8 focused industry sectors

Consumer

Diversified Industrials

Energy & Natural

Resources

Financial Institutions

Healthcare

Insurance

Real Estate

Technology, Media &

Telecommunications

Top 10 lead underwriter

through 9/30/05:

4

91 transactions with

$32.2B in total

transaction value

39 lead and sole-

managed public

underwritings / private

placements

19 M&A and Advisory

assignments

$15.5B of Asset-Backed

Securitizations (ABS)

Investment Banking ²

198 Institutional Brokers,

Traders and Sales Traders

Market-maker in over 585

equity and debt securities

Cover over 700 institutional

investors

50 Senior Analysts

Department total 132

Over 595 companies under

coverage

Consumer

Diversified Industrials

Energy & Natural

Resources

Financial Institutions

Healthcare

Insurance

Real Estate

Technology, Media &

Telecommunications

Fixed-Income and ABS

Research Coverage

Institutional

Brokerage ²

Research

5

Sales & Trading

Capital Markets

Assets of $9.3 billion, as of

September 30, 2005

Mortgage-backed

securities primarily

guaranteed by Freddie

Mac, Fannie Mae or

Ginnie

Mae (GSEs)

Portfolio composition

1/1 ARMs

through 5/1

Hybrid ARMs

3

Dedicated $12 billion

funding source

Assets of $7.0 billion held for

investment and $1.5 billion

held for sale, as of

September 30, 2005

Loans acquired through

wholly-owned FNLC or

from third parties

Focus on higher quality

non-prime loans

Ultimately funded

through securitization

Mortgage Investing

and Origination

$361 million long-term

investment portfolio as of

September 30, 2005

20 Merchant Banking equity

investments funded with FBR

Group equity as of

September 30, 2005

FBR Group potential long-

term investments include:

Preferred and common

equity

Senior secured and

mezzanine loans

Interest in proprietary

funds

Direct assets

Merchant Banking

Principal Investing

Mortgage Loans

Mortgage-Backed

Securities

Hedge funds

Equity mutual funds

Fixed income mutual funds

Tax-exempt funds

Money market funds

Private equity funds

Venture capital funds

Private Wealth Management

Open architecture asset

allocation and

performance reporting

Risk-managed portfolio

construction

Best of breed third party

traditional investments

Access to FBR

proprietary alternative

strategies and dealflow

Liquidity management

10b5-1 Plans and options

/ stock sales

Restricted stock sales

and concentrated

strategies

Asset Management ¹

Corporate Presentation

November 2005

Page 5

Capital Markets

Investment Banking

•

#1

Book-Running

Manager

of

common

stock

offerings

for

U.S.

companies

valued

$2

billion and under ¹

•

Concentrated

on

specific

industries

where

FBR

has

developed

in-depth

expertise

and relationships

•

These industries comprised 80% of the equity raised and 87% traded in the U.S. in 2004

•

We continue to see new business opportunities

1.

Source: Dealogic; see page 6.

2.

Excluding asset-backed securities transactions.

3.

First three quarters of 2005 Annualized (12-month estimate).

Investment Banking Transactions by Industry ²

(% to total; through Q3 2005)

Lead or Sole-Managed Average Deal Size

(millions of dollars)

INDUSTRY

COMPOSITION

Healthcare

4%

Financial Institutions

31%

Technology, Media & Telecom

17%

Real Estate

19%

Energy

21%

Diversified Industrials

4%

Insurance

4%

$47.8

$68.5

$92.2

$184.6

$173.2

$219.4

2000

2001

2002

2003

2004

2005-E ³

Corporate Presentation

November 2005

Page 6

Investment Banking Rankings

First Three Quarters of 2005 Underwriting

Note:

Apportioned

credit

to

all

book-running

managers;

Issuer

nationality

as

noted;

excludes

closed-end

funds

and

best

efforts.

Source:  Dealogic.

Book-Running

Manager

# of Deals

Amount

Raised

Friedman Billings Ramsey

21

4,284.1

$         

Citigroup

40

4,207.9

Merrill Lynch & Co

40

4,187.1

Morgan Stanley

25

4,052.9

Lehman Brothers

37

3,802.7

JP Morgan

32

3,560.4

Credit Suisse First Boston

30

3,287.3

UBS

33

2,806.0

Goldman Sachs & Co

20

2,472.7

Banc of America Securities

25

1,746.3

Bear Stearns & Co Inc

17

1,576.2

Wachovia Capital Markets LLC

18

1,430.6

US Issuers - All Industries

Market Cap $2B & Under

1/1/2005 - 9/30/2005  All Common Stock

(IPO, Secondary, Private)

Book-Running

Manager

# of Deals

Amount

Raised

Goldman Sachs & Co

3

1,747.1

$         

Friedman Billings Ramsey

4

1,744.3

JP Morgan

7

1,611.6

Citigroup

3

1,414.9

Lehman Brothers

5

480.3

Raymond James

4

404.8

Jefferies & Co Inc

4

377.9

Morgan Stanley

1

326.0

RBC Capital Markets

1

299.8

Bear Stearns & Co Inc

2

269.6

Credit Suisse First Boston

3

216.5

Banc of America Securities

3

138.5

US Issuers - Oil & Gas Industry

All Market Caps

1/1/2005 - 9/30/2005  All Common Stock

(IPO, Secondary, Private)

Book-Running

Manager

# of Deals

Amount

Raised

Friedman Billings Ramsey

5

962.8

$            

JP Morgan

2

324.8

Citigroup

2

306.4

UBS

2

289.8

Credit Suisse First Boston

2

265.0

Wachovia Capital Markets LLC

1

207.0

Lehman Brothers

1

150.0

Bear Stearns & Co Inc

1

150.0

Banc of America Securities

1

124.7

Merrill Lynch & Co

1

115.0

Deutsche Bank

1

115.0

BMO Financial Services

1

43.0

Global Issuers - Real Estate Industry

All Market Caps

1/1/2005 - 9/30/2005

IPOs Only

Corporate Presentation

November 2005

Page 7

Capital Markets

Research and Institutional Brokerage

•

198 institutional brokers, traders and sales traders; 50 senior analysts

•

Understanding of investment philosophy leads to powerful distribution platform

•

29% volume growth CAGR from 2000 through Q3 2005

•

Currently

provide

research

on

39%

of

S&P

500

by

market

capitalization

•

Over

595

companies

and

83

fixed-income

securities

under

research

coverage

1

•

Make markets in more than 585 securities

1.

As

of

8/5/05.

Research

is

provided

by

FBR

&

Co.’s

Research

department,

which

is

independent

from

the

Investment

Banking

department

of

FBR

&

Co.,

and

has

the

sole

authority

to

determine

which

companies

receive research coverage and the recommendation contained in the coverage.  In the normal course of its business, FBR & Co. seeks to perform investment banking and other fee generating services for

companies that are the subject of FBR & Co. research reports.  Research analysts are eligible to receive bonus compensation that

is based on FBR & Co.’s overall operating revenues, including revenues

generated by FBR & Co.’s investment banking department.  Specific information is contained in each research report concerning FBR& Co.’s relationship with the company that is the subject of the report.

2.

Q3 2005 Annualized (12-month estimate); Q3 2005 Actuals: Listed –

985, OTC -

602.

Research Coverage: All Companies ¹

(number of companies; as of August 2005)

Customer Trading Volumes

(millions of shares)

Diversified

Industrials

11%

Energy

15%

Financial Institutions

23%

Consumer

5%

Technology, Media & Telecom

22%

Real Estate

11%

Insurance

6%

Healthcare

7%

INDUSTRY

COVERAGE

320

351

554

850

803

284

428

673

932

1,436

1,313

352

2000

2001

2002

2003

2004

2005-E ²

Listed

OTC

CAGR 28.5%

604

780

1,135

1,486

2,286

2,116

68

87

149

46

33

59

120

36

Corporate Presentation

November 2005

Page 8

Principal Investing

Non-Conforming Mortgage Loans

•

Portfolio

run

in

conjunction

with

mortgage-backed

securities

portfolio

•

Loans

acquired

through

owned

origination

platform

(First

NLC)

or

purchased

from third parties

•

Current

portfolio

focus

is

on

non-prime

loans

with

summary

characteristics

of:

Average Fair Isaac FICO score¹

of approximately 625

Average loan to value of approximately 81.5%

Approximately 95% of loans become adjustable rate loans after 2 to 3 years

•

Loans

are

funded

through

in-place

warehouse

lines

or

Arlington

Funding

(a

proprietary commercial paper conduit) then securitized with permanent funding

•

Permanent funding reduces mark to market liquidity risk and allows for 20-22x

leverage

•

Loan portfolio target IRR > 25%

1

FICO®

risk

scores

rank-order

consumers

according

to

the

likelihood

that

their

credit

obligations

will

be

paid

as

expected.

Source:

Fair

Isaac

Corporation

(www.fairisaac.com).

Corporate Presentation

November 2005

Page 9

Principal Investing

Mortgage-Backed Securities

•

$9.3 billion portfolio as of September 30, 2005

•

Portfolio securities are primarily agency issues guaranteed by Freddie Mac, Fannie Mae or Ginnie

Mae

•

Low duration target of 1 to 2 —

limits price risk

•

Leverage guideline —

6x to 11x debt to equity, 10x to 11x long-term target

•

Georgetown

Funding,

FBR’s

proprietary

$12

billion

A1+/P1

commercial

paper

funding

source

•

Consistent high prepayments allow for continuous reinvestment

•

Long-term average target ROE of approximately 20%

(Dollars in millions)

Book

Value

$9,411

Market

Value

$9,242

Average

Coupon

4.02%

Cost

Premium

101.55

WTD Avg.

CPR

35.59

Average

Life

1.45 yrs

Current

Face

$9,268

Effective

Duration

1.01 yrs

MBS Portfolio by Agency

MBS Portfolio by Security

1/1 ARM

50.6%

2/1 ARM

31.5%

3/1 ARM

9.7%

4/1 ARM

4.8%

5/1 ARM

3.4%

FNMA

72.1%

FHLMC

19.5%

GNMA

3.9%

AAA

4.5%

Corporate Presentation

November 2005

Page 10

Principal Investing

Merchant Banking

•

All investment decisions driven by

fundamental valuation approach

•

Proprietary deal flow through FBR &

Co., Inc.

•

Independent due diligence and

investment committee process

•

Deep industry knowledge allows for

expedited execution and innovative

structures enhance potential for

premium returns

•

Investment banking experience

improves accuracy of our predicted

liquidity outcomes

•

Portfolio of 20 investments funded with

FBR Group equity

FBR Merchant Banking has invested in 32 companies out of

168 lead-managed and 263 total transactions completed

by FBR since January of 2001

8

Period of

Investment

Investment

Amount

Total Banking

Fees Earned

Fieldstone Mortgage Company

Nov-03

50,000,000

$    

46,078,984

$       

AmeriCredit Corp.

Sep-02

40,329,295

26,462,476

American Financial Realty Trust

Sep-02

40,000,001

1

43,883,007

Aames Investment Corporation

Nov-04

39,525,000

16,736,691

New Century

Sep-04

35,050,015

14,225,154

Peoples' Choice Financial Corporation

Dec-04

32,900,000

22,638,972

Provident

Aug-04

25,000,004

26,919,910

Quanta Capital Holdings

Aug-03

25,000,000

35,090,698

ECC Capital Corporation

Feb-05

24,999,998

21,639,199

KKR Financial Corp.

Aug-04

23,250,000

33,041,790

Southwest Royalties

Apr-02

18,333,333

2

1,714,662

Medical Properties Trust

Mar-04

15,000,000

17,270,432

Oxford Finance Corp.

Mar-02

14,650,000

3

2,889,359

Specialty Underwriters' Alliance

Dec-03

12,976,692

4

6,436,194

Taberna Realty Finance Trust

Apr-05

10,000,000

17,039,510

Vintage Wine Trust

Mar-05

9,999,992

11,014,111

MCG Capital

Nov-01

9,934,375

13,776,396

Saxon Capital, Inc.

Jul-01

9,300,000

15,058,315

Asset Capital Corporation

Jun-05

7,499,995

6,149,699

Annaly

Jan-01

7,144,000

8,274,551

Accredited Home Lenders

Feb-03

6,789,586

4,163,044

Equity Inns

Jul-03

5,750,000

1,191,423

Franklin Bank Corporation

Oct-02

5,580,000

4,369,198

JER Investors Trust

Jun-04

5,264,033

11,124,647

Whittier Energy Corporation

Jun-05

5,000,015

2,805,899

Lexington Strategic Asset Corporation

Sep-05

4,999,996

3,181,995

CMET Finance Holdings

Dec-03

4,650,000

7,351,588

Tower Group Holdings

Oct-04

3,952,500

7,179,741

Anworth

Dec-01

3,890,650

11,568,421

Government Properties Trust

Oct-03

3,050,000

5

11,004,095

Atlas Pipeline

Sep-03

-

6

375,000

Quaker Coal

Nov-02

-

7

113,789

499,819,480

$  

450,768,949

$     

1

Includes $5 million note which has been repaid and $35,000,001 equity investment.

2

Represents a loan commitment of up to $25,000,000, of which $18,333,333 was funded and has been repaid.

3

Includes $10 million note which has been repaid and $4,650,000 equity investment.

4

Represents a loan of $2,000,000 which has been repaid and $10,976,692 equity investment.

5

Includes $950,000 note which has been repaid and $2,100,000 equity investment.

6

Represents a loan commitment of up to $25,000,000.  This commitment was not funded.

7

Break-up fee.

8

Transaction total composed of public and private equity and debt offerings. 

   Excludes M& A, Advisory and ABS transactions. As of September 30, 2005.

Corporate Presentation

November 2005

Page 11

•

Non-prime residential mortgage lending with nationwide origination

•

Loan products with flexibility on a broad array of attributes: maturity,

documentation, rate type and credit quality

Principal Investing

First NLC Financial Services, LLC

Operational Profile

•

Headquartered in Deerfield Beach, FL

•

Licensed in 41 States

•

41 Retail Branches

•

6 Operation Centers

•

Approximately 1,700 Employees

See statement concerning Forward Looking Information on page 1.

Originations ($ in billions):

2004

$

3.4

Q3 2005 Run-Rate

$

7.0

Corporate Contribution ($ in millions):

Revenue

$

28.1

Pre-Tax Income

$

2.1

2005 Q3 Performance ¹

Corporate Presentation

November 2005

Page 12

Asset Management Products and Services

Managed Funds

5

Hedge Funds

•

FBR Ashton Income Fund, LLC

•

FBR Life Sciences Fund, LLC

•

FBR Life Sciences, Ltd

•

FBR Weston, LP

Funds of Funds

•

FBR Pegasus Fund of Funds, LLC

•

FBR Pegasus Fund of Funds, Ltd

•

FBR Multi-Strategy Fund, LLC

Private Wealth Advisory Services

•

Open architecture asset allocation

•

Risk-managed portfolio construction

•

Best of breed third party traditional investments

•

Access to FBR proprietary alternative strategies

•

Access to FBR Syndicate dealflow

•

Open architecture performance reporting

•

Tax and legal advisory “quarterbacking”

•

Liquidity management

•

Concentrated stock strategies

•

10b5-1 Plans and options / stock sales

•

Restricted stock sales

Private Wealth Management

The FBR Funds ¹

(Mutual Funds)

Equity funds (see next page)

•

FBR Small Cap Financial Fund

•

FBR Large Cap Financial Fund

•

FBR Small Cap Fund

2

•

FBR Gas Utility Index Fund

•

FBR Small Cap Technology Fund

•

FBR Large Cap Technology Fund

Fixed income and money market funds

•

FBR Fund for Government Investors ³

•

FBR Maryland Tax-Free Portfolio

4

•

FBR Virginia Tax-Free Portfolio

4

5. Managed Funds currently offered through FBR Investment Management, Inc.

1.

Investors are asked to consider the investment objectives, risks, charges and expenses of the FBR Funds carefully before investing. For more complete information

about

FBR

Mutual

Funds,

including

fees

and

expenses,

and

a

copy

of

a

FREE

prospectus

please

call

888.888.0025

or

visit

us

at

www.fbrfunds.com .

Please

read

the

prospectus

carefully

before

you

invest

or

send

money.

FBR

Mutual

Funds

are

distributed

by

FBR

Investment

Services,

Inc.,

member

NASD/SIPC.

2.

The FBR Small Cap Fund is closed to NEW investors effective October 1, 2004.

3.

Investments in money market funds are not guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds

seek to preserve the NAV (Net Asset Value) at $1.00 per share, it is possible to lose money by investing in the fund.

4.

Some income earned in the tax- free Portfolios may be subject to the Federal Alternative Minimum Tax. Income earned by non-Maryland or non-Virginia residents will

be subject to applicable state and local taxes.

Corporate Presentation

November 2005

Page 13

FBR Mutual Funds

Commenced 01/03/97

7.57%

n/a

n/a

29.18%

23.12%

8.01%

FBR Large Cap Technology Fund

3, 4 *

1.41%

n/a

n/a

n/a

22.78%

9.40%

FBR Small Cap Technology Fund

2, 3, 4 *

11.00%

n/a

9.04%

12.69%

2.66%

-2.26%

FBR Large Cap Financial Fund

1, 3

10.19%

11.66%

4.83%

24.49%

32.77%

6.84%

FBR Gas Utility Index Fund

5 *

16.94%

n/a

20.35%

18.39%

3.23%

-3.31%

FBR Small Cap Financial Fund

1, 2, 3

17.03%

n/a

18.48%

28.91%

16.50%

-2.60%

FBR Small Cap Fund

2, 3, 6

Average Annual Total Returns thru 9/30/2005

Since Inception

Rating

Q3 2005

1-

Year

3-

Years

5-Years

10-

Years

The Overall Morningstar Rating™

is based on risk-adjusted returns, derived from a weighted average of the 3-, 5 -, and 10-year (if applicable) Morningstar metrics.

*

The FBR Gas Utility Index Fund commenced on 05/10/89 as the American Gas Index Fund.  The FBR Large Cap Technology

Fund commenced on 02/01/02. The FBR Small Cap Technology Fund commenced on 01/20/04.

FBR Small Cap Fund rated 5 stars for 3-

and 5-yrs among 577 and 421 small growth funds respectively.  FBR Small Cap Financial Fund rated 4 stars for 3-yrs and 5 stars for 5-yrs

among 103 and 77 financial funds respectively. FBR Large Cap Technology Fund rated 4 stars for 3-yrs among 247 technology funds. FBR Gas Utility Index Fund rated

3 stars for 3-

yrs and 4 stars for 5-

and 10-yrs among 68, 72 and 38 utility funds respectively.  FBR Large Cap Financial Fund rated 2 stars for 3-yrs and 4 stars for 5-yrs among 103 and 77

financial

funds

respectively.

For

each

fund

with

at

least

a

three-year

history,

Morningstar

calculates

a

Morningstar

Rating™

based

on

a

Morningstar

risk-adjusted

return

measure

that

accounts

for

variation

in

a

fund’s

monthly

performance

(including

the

effects

of

sales

charges,

loads

and

redemption

fees),

placing

more

emphasis

on

downward

variations

and

rewarding consistent performance.  The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars,  the next 35% receive 3 stars, the next 22.5% receive 2 stars

and the bottom 10% receive 1 star.

TOTAL RETURNS REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS.

The current performances may be lower or higher than

performance data quoted.  To obtain performance data current to the most recent month-end please call 888.200.4710 or visit us at www.fbrfunds.com.  Investment return and

principal will fluctuate so that investors’

shares, when redeemed, may be worth more, or less, than their original value.

Investors are asked to consider the investment objectives, risks, charges and expenses of The FBR Funds carefully before investing. For more complete information about The FBR Funds, including

fees and expenses, and a copy of a FREE prospectus please call 888.888.0025 or visit us at www.fbrfunds.com. Please read the prospectus carefully before you invest or send

money. The FBR Funds

are distributed by FBR Investment Services, Inc., member NASD/SIPC.

1

Fund investments are focused in the financial services industry,

which may be adversely affected by regulatory or other market conditions, such as rising interest rates.

2

Investing

in

a

small-cap

fund

involves

the

risks

of

investing

in

small-cap

companies,

which

generally

involve

greater

risk

than

investing

in

larger,

more

established

companies.

3  The

non-diversified

nature

of

the

Fund

may

subject

investors

to

greater

volatility

than

other

diversified

funds.

4

Fund investments are focused in the technology sector, which may be affected by developments in the technology industry and its related businesses. In addition, the Fund may

be subject to risks posed by use of derivative instruments.

5

The Fund is subject to risks associated with the natural gas industry which is sensitive to interest rates, weather and competition risks.

6

The FBR Small Cap Fund is closed to NEW investors effective October 1, 2004.

Corporate Presentation

November 2005

Page 14

Asset Management

Private Wealth Management

•

Comprehensive private wealth management services provided to high net

worth individuals and families through FBR Investment Management, Inc.

(FBRIM), an SEC-registered investment adviser

•

FBRIM

manages

approximately

$721

million

in

assets

1

•

Private Wealth Management professionals work in defined teams,

responding to specific wealth management client needs including:

1.  As of 9/30/05.

Open architecture performance reporting

Tax and legal advisory “quarterbacking”

Liquidity management

Concentrated stock strategies

10b5-1 Plans and options / stock sales

Restricted stock sales

Open architecture asset allocation

Risk-managed portfolio construction

Best of breed third party traditional

investments

Access to FBR proprietary alternative

strategies

Access to FBR Syndicate dealflow

Corporate Presentation

November 2005

Page 15

Five-Year Indexed Total Return

1

FBR vs. Peer Group vs. S&P 500

10/24/2000 - 10/24/2005

0

100

200

300

400

500

10/24/00

10/24/01

10/24/02

10/24/03

10/24/04

10/24/05

Market Return Comparison

Notes:

1. Indexed Prices are adjusted for dividends and stock splits (reinvested on ex-date)

2. Peer Group includes Jeffries Group, Bear Stearns, Goldman Sachs, Lehman Brothers and Piper Jaffray

Source: FactSet

Merger Close

Date

3/31/2003

Annualized Total Return

Merger

5-Year

Close

Return

Date

FBR

11.5%

11.4%

Peer Group ²

8.3%

28.1%

S&P 500

(1.4%)

16.4%

Corporate Presentation

November 2005

Page 16

Peer Group Statistical Analysis

Highlights

•

Superior

Margins

•

Lowest Cost

Platform

•

Solid ROAE

•

Highest

Dividend

Yield

•

Compelling

Valuation

($ in 000s, Peers ranked by Equity)

Broker / Dealer

Latest Twelve

Months (LTM)

Period End

Most Recent

Quarter (MRQ)

Stockholder's

Equity

LTM

Net Income

LTM

Net Revenue

Net Income 

Growth

(YTD04 -

YTD05)

1

Net Revenue 

Growth

(YTD04 -

YTD05)

1

LTM Profit

Margin

LTM

ROAE

Assets / Core

Book2

FBR3

30-Sep-05

$1,394,137

$182,581

$731,716

-63.5%

-24.3%

25.0%

12.4%

13.1x

Goldman Sachs

26-Aug-05

$26,607,000

$5,179,000

$23,077,000

18.6%

15.8%

22.4%

20.7%

25.2x

Lehman Brothers

31-Aug-05

16,334,000

2,948,000

13,823,000

37.6%

25.8%

21.3%

19.2%

23.5x

Bear Stearns

31-Aug-05

9,881,046

1,382,341

7,352,149

6.8%

10.8%

18.8%

15.4%

28.8x

Jefferies Group

30-Sep-05

1,200,000

146,100

1,139,933

15.4%

10.5%

12.8%

13.5%

10.6x

Piper Jaffray

30-Sep-05

734,185

35,529

762,664

-38.5%

-5.8%

4.7%

4.9%

3.5x

Peer Average

8.0%

11.4%

16.0%

14.7%

18.3x

Broker / Dealer

10/24/2005 Market

Value

Price/

Book

Price / Core

Book2

Price / 2005E

EPS

Price / 2006E

EPS

Dividend Yield

LTM Net

Revenue /

Employee

LTM Comp &

Benefits/ LTM

Net Revenue

LTM Net Income

/ Employee

FBR

$1,590,180

1.1x

1.0x

9.1x

6.7x

8.5%

$997

42.0%

$249

Goldman Sachs

$55,583,552

2.1x

2.1x

11.2x

11.2x

0.8%

$1,047

61.1%

$235

Lehman Brothers

31,339,988

1.9x

1.9x

10.9x

11.1x

0.7%

628

49.3%

134

Bear Stearns

15,424,236

1.6x

1.6x

10.4x

10.2x

1.0%

639

47.4%

120

Jefferies Group

2,452,264

2.0x

2.0x

18.8x

16.7x

1.2%

570

56.2%

73

Piper Jaffray

680,722

0.9x

0.9x

19.4x

15.7x

NA

262

61.1%

12

Peer Average

1.7x

1.7x

14.2x

13.0x

0.9%

$629

55.0%

$115

Footnotes:

1. YTD = Year To Date

2. Core Book adjusted for accumulated other comprehensive income

/ loss.

3. FBR income statetement

financials exclude FNLC.

Sources: Company Reports, Bloomberg (Market Data as of 10/24/2005).

Corporate Presentation

November 2005

Page 17

FBR at a Glance

Performance Summary

•

Top 10 investment banking firm ¹

•

31% Revenue CAGR 1992 through Q3 2005

•

$1.6 billion market cap ²

•

Strong, highly-liquid balance sheet: Equity $1.4 billion; Assets $21.0 billion

•

One of the most efficient cost structures in the industry

•

Leading capital markets platform ¹

#1 lead underwriter of common stock for U.S. companies valued $2

billion and under

#9 lead underwriter of common stock for all U.S. companies ³

#1 lead underwriter of IPOs

for all Real Estate companies worldwide

#2 lead underwriter of common stock for U.S. Oil & Gas companies

Top ten underwriter —

$5.9 billion lead/sole managed equity through Q3 2005

4

•

Diversified mortgage and principal investing activities

•

Asset management business positioned for growth

•

Stable and diversified earnings stream supports regular dividends

•

History of significant growth; significant future growth opportunities

1.

Source: Dealogic; see page 6.

2.

10/24/05 closing price of $9.36.

3.

Source:

Dealogic.

Relates

to

total

dollar

amount,

with

over-allotment,

of

all

IPOs,

secondary

offerings

and

private

placements

for

all

U.S.

issuers;

priced

between

1/1/05

and

9/30/05,

with

apportioned

credit

to

all

book-runners.

Excludes

closed-end

funds

and

best

efforts.

4.

Excluding asset-backed securitizations.

Metropolitan Washington, D.C. Headquarters

1001 Nineteenth Street North •

Arlington, Virginia 22209

Tel:  703.312.9500 •

Fax: 703.312.9501

www.fbr.com

Phoenix

2555 East Camelback Road

Suite 180

Phoenix, Arizona 85016

602.794.3700

San Francisco

4 Embarcadero Center

Suite 1950

San Francisco, California 94111

415.248.2900

Seattle

Two Union Square

601 Union Street, Suite 4200

Seattle, Washington 98101

206.652.3564

London, UK

8th

Floor

Berkeley Square House

Berkeley Square

London WIJ 6DB

011.44.20.7409.5300

Vienna, Austria

Millenium Tower, 23rd floor

Handelskai 94-96

A-1201 Vienna

011.43.12.402.7250

First NLC Headquarters

700 W. Hillsboro Boulevard

Bldg. 1, Suite 204

Deerfield Beach,

Florida 33441

954.420.0060

Bethesda

4922 Fairmont Avenue

Bethesda, Maryland 20814

301.657.1500

Boston

100 Federal Street, 29th

Floor

Boston, Massachusetts 02110

617.757.2900

Cleveland

3201 Enterprise Parkway

Suite 320

Cleveland, Ohio 44122

216.593.7000

Dallas

2100 McKinney Avenue

Suite 1940

Dallas, Texas 75201

469.341.1200

Denver

1200 17th Street, Suite 550

Denver,

Colorado

80202

720.946.6010

Houston

600 Travis Street

Suite 6070

Houston, Texas 77002

713.343.1000

Irvine (Los Angeles)

18101 Von Karman

Avenue

Suite 950

Irvine, California 92612

949.477.3100

New York

299 Park Avenue, 7th

Floor

New York, New York 10171

212.457.3300

Friedman Billings Ramsey Group, Inc.

NOTE: Not all services are available from all offices.

Does not include FNLC branch offices.

2005

N O V E M B E R

CAPITAL FOR YOUR CONQUEST

ADDENDUM

Corporate Presentation

November 2005

Page 20

Financial Results

Income Statement

See statement concerning Forward Looking Information on page 1.

(Dollars in 000's)

2005

2004

2005

2004

REVENUES

Investment banking

89,061

$               

141,621

$            

278,231

$            

294,722

$            

Institutional brokerage

33,696

22,746

84,837

84,388

Asset management

8,746

8,781

25,382

22,921

Principal investment

158,039

112,945

399,350

347,147

Mortgage banking

46,983

-

92,633

-

Other

3,376

1,827

9,327

4,824

Gross revenues

339,901

287,920

889,760

754,002

Interest expense and loan loss provision

161,263

44,265

340,948

111,188

Revenues, net of interest expense and loan loss provision

178,638

243,655

548,812

642,814

NON-INTEREST EXPENSES

Compensation and benefits

88,348

95,824

244,162

228,411

Other expenses

59,155

35,353

177,125

115,307

Total non-interest expenses

147,503

131,177

421,287

343,718

Net income before income taxes

31,135

112,478

127,525

299,096

Income tax provision

8,090

20,329

26,825

36,129

Net income

23,045

92,149

100,700

262,967

Diluted earnings per share

0.14

$                   

0.55

$                   

0.59

$                   

1.56

$                   

Dividends declared per share

0.34

$                   

0.34

$                   

1.02

$                   

1.14

$                   

Three Months Ended September 30,

Nine Months Ended September 30,

Corporate Presentation

November 2005

Page 21

Financial Results

Balance Sheet

See statement concerning Forward Looking Information on page 1.

(Dollars in 000s)

September 30,

June 30,

December 31,

2005

2005

2004

ASSETS

Cash and cash equivalents

181,534

$            

299,428

$            

224,371

$            

Mortgage-backed securities, at fair value

9,268,662

10,622,271

11,726,689

Mortgage loans, net

8,540,692

3,075,753

-

Long-term investments

361,131

433,206

441,499

Other investments

1,917,660

732,515

191,119

Intangible assets

188,405

189,551

122,417

Other assets

582,742

304,033

222,193

Total assets

21,040,826

15,656,757

12,928,288

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities

Commercial paper

8,214,835

$         

7,765,230

$         

7,294,949

$         

Repurchase agreements

6,853,306

4,923,394

3,467,569

Securitization financing

3,809,901

702,636

-

Other liabilities

484,719

523,485

458,876

Long-term debt

283,928

222,991

128,370

Total liabilities

19,646,689

14,137,736

11,349,764

Total shareholders' equity

1,394,137

1,519,021

1,578,524

Total liabilities and shareholders' equity

21,040,826

15,656,757

12,928,288

Book Value Per Share - GAAP

8.21

$                   

8.96

$                   

9.46

$                   

Book Value Per Share - Core

9.44

$                   

9.62

$                   

9.68

$                   

Shares Outstanding

169,891

169,617

166,932

2005

CAPITAL FOR YOUR CONQUEST

N O V E M B E R