Exhibit 99.1

FBR Announces 2005 Financial Results

Net Loss of $170.9 Million or $1.01 per Share for the Year Reflects

4th Quarter Investment Portfolio Write-Downs and Losses of $261.6 Million

ARLINGTON, Va., February 22, 2006 – Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) today announced a net loss after tax for the year ended December 31, 2005 of $170.9 million, or $1.01 per share (diluted). These results include a previously announced write-down within FBR’s spread-based portfolio of mortgage-backed securities, a separate write-down of certain equity investments in the firm’s merchant banking portfolio, and a fourth quarter loss in FBR’s non-conforming mortgage subsidiaries.

The mortgage-backed securities (MBS) and merchant banking portfolio write-downs and losses realized during the fourth quarter of 2005 totaled $261.6 million. Included in that figure were:

• $180.1 million in write-downs, net of hedging gains, of mortgage-backed securities,

• $7.0 million of realized losses on sales of mortgage-backed securities, and

• $74.5 million recognized in the write-down of nine equity investments to reflect “other than temporary” impairments in the firm’s merchant banking portfolio.

The company’s decision to reposition the MBS portfolio and recognize merchant banking write-downs is discussed in detail below.

The full-year 2005 loss of $170.9 million, or $1.01 per share (diluted), compares to net after-tax income of $349.6 million, or $2.07 per share (diluted), in 2004. Total revenue in 2005 was $1.0 billion compared to $1.1 billion in 2004.

FBR incurred a fourth quarter net after-tax loss of $271.6 million, or $1.60 per share (diluted), compared to net after-tax income of $86.6 million, or $0.51 per share (diluted), in the final quarter of 2004. The company’s book value per share was reduced by $0.55 during the quarter from $8.21 at September 30, 2005 to $7.66 at December 31, 2005. The reduction in book value per share was less than the overall reported loss in the fourth quarter since the majority of the impact from the portfolio write-downs was already reflected in the September 30, 2005 balance sheet. Also contributing to the loss for the quarter, First NLC Financial Services, Inc. (FNLC), FBR’s wholly-owned non-conforming residential mortgage origination business, incurred an after-tax loss of $15.5 million.

On December 7, 2005, FBR declared a regular quarterly dividend of $0.20 per share for the fourth quarter of 2005, which was paid on January 31, 2006 to shareholders of record on December 30, 2005. For the full year, the company declared a total of $1.22 per share in dividends, down from $1.53 per share in 2004. Information regarding the tax treatment of FBR’s 2005 dividends was released on February 16, 2006 and may also be found on the company’s web site.

Net income for the company during the fourth quarter, excluding the portfolio write-downs, the loss in the non-conforming mortgage subsidiaries and the negative carry of the MBS portfolio, was $35.0 million, or $0.21 per share (diluted).¹ The company believes this is an important measure because it more accurately reflects the core earnings of the business.

“There is no question that 2005 was a difficult and disappointing year in many respects,” said Eric F. Billings, Chairman and Chief Executive Officer. “However, it is very important to note that FBR’s capital markets operations continue to perform at exceptional levels. Finally, the business overall – excluding the impact of the write-downs and other items – delivered a return on tangible equity of approximately 12% during the fourth quarter.”¹

Capital Markets

“In 2005, a year in which FBR continued to broaden its broker/dealer franchise, two accomplishments, in particular, stand out,” said J. Rock Tonkel, Jr., President and Head of Investment Banking. “FBR ranked as the #1 book-running manager for U.S. IPOs and 144A equity placements combined – the best and most comprehensive measure of initial capital-raising performance.2 Additionally, we were the #2 book running manager in oil and gas – the core of the energy sector – the newest sector in which we have achieved an industry-leading position.”

In 134 transactions during 2005, FBR raised $41.2 billion compared to $26.2 billion in 2004, and the size of its average common equity transactions grew from $188.2 million in 2004 to $259.8 million in 2005. Additionally, for the full year, FBR led the U.S. equity capital markets in net revenue per transaction.³

• Investment banking revenue for the year was $374.5 million, down from the record $428.3 million generated in 2004. Revenue for the fourth quarter was $96.3 million compared to $133.6 million in the fourth quarter of 2004.

• In 2005, FBR was ranked as:

• #1 book-running manager for U.S. IPOs and 144A equity placements combined,²

• #1 book-running manager of all common stock offerings for U.S. companies with a market capitalization of $2 billion or less,⁴

• #2 book-running manager of all common stock offerings for domestic oil and gas companies,⁴ and

• #9 book-running manager of all common stock offerings for all U.S. companies.⁴

In a difficult trading environment characterized by continuing pressure on commission rates, revenue from institutional brokerage (principal transactions and agency commissions) was down 8.5% on a year-to-year basis, falling from $110.1 million in 2004 to $100.7 million in 2005. For the fourth quarter of 2005, brokerage revenue totaled $24.8 million, a decline of 3.5% from the $25.7 million generated in the final quarter of 2004.

Principal Investment and Mortgage Banking

“While 2005 was clearly the most challenging year the company has experienced from a portfolio perspective, we believe we have taken the necessary steps to position our spread businesses and the merchant bank to achieve higher returns on equity in the coming quarters and years,” commented Richard J. Hendrix, President and COO. “Although we believe that many opportunities exist to generate very good returns in each of our portfolio businesses, we are operating in essentially a low return environment for most asset classes. Consequently, we will be patient with the redeployment of capital generated from the MBS portfolio repositioning and any other portfolio liquidations.”

Mortgage Portfolio

During a year when the federal funds rate was increased eight times, almost doubling short-term interest rates, FBR’s spread-based businesses were under constant pressure from the impact of a flattening yield curve combined with persistently high mortgage prepayment speeds. Consequently, the company determined to undertake a repositioning of the MBS portfolio to eliminate a negative cash spread on much of the portfolio and to be in a position to take advantage of reinvestment opportunities presented by the changing environment over the coming quarters.

The repositioning, a step involving the sale of a significant percentage of the mortgage portfolio in early 2006, was announced on December 21, 2005. This decision marked a change in FBR’s intent to hold securities in its MBS portfolio until maturity. Consequently, a determination was made that unrealized MBS portfolio losses as of December 31, 2005 were to be considered “other than temporary” impairments under Statement of Financial Accounting Standards (SFAS) 115, necessitating a recognition through the income statement of the reduced value of those securities at year end. As of February 22, 2006, FBR had sold mortgage-backed securities valued at $6.7 billion, substantially completing the liquidation phase of the portfolio repositioning. The company intends to patiently reinvest the net proceeds from the $6.7 billion liquidation throughout 2006.

The non-conforming mortgage portfolio investment was substantially completed in the third quarter of 2005. During the fourth quarter the company completed $3.1 billion in securitization financing for the portfolio, placing permanent financing on the remaining warehouse funded portions of the held for investment portfolio. At year end, FBR held for investment $6.8 billion in non-conforming mortgage loans with an average coupon of 7.25%, an ending premium of 102.10, and a one-month CPR of 25. The yield for the month of December was 6.84% with a corresponding cost of funds of 4.86%. With the construction of the non-conforming portfolio complete for the near term, FBR will patiently invest available capital opportunistically.

Merchant Banking

FBR made a determination during the year-end evaluation of its merchant banking portfolio to recognize as “other than temporary” impairments the amount by which the fair value of certain of its merchant banking investments was below their respective cost bases. This determination, which was discussed as a possible course of action in the December 21, 2005 press release, is different from the determination for the mortgage portfolio as it relates strictly to current trading values and is not the result of any change in the company’s investment intent regarding these securities.

During 2005, the merchant banking group continued to make new investments in attractive opportunities presented by the capital markets business, investing a total of $68 million of equity in eight companies over the course of the year. The merchant banking and long-term investments portfolio generated total income of $57.5 million during the year – comprised of $36.6 million in dividends and $20.9 million in related gains – prior to the recognition of a $74.5 million write-down in the cost basis of a portion of the assets in the portfolio. At year end, the merchant banking investment portfolio had an estimated cash dividend yield of more than 12%.

The total value of FBR’s merchant banking portfolio and other long-term investments was $333.1 million as of December 31, 2005. Of this total, $291.6 million was held in the merchant banking and long-term investments portfolio and $41.5 million was held in alternative asset investments.

First NLC Financial Services

The adverse interest rate climate contributed to the difficult environment for FNLC and other non-conforming mortgage lenders in the fourth quarter. The compression between funding costs and coupons in the non-conforming mortgage business continued until late in the year, leading to deteriorating sale prices for mortgage originators throughout the fourth quarter. During the fourth quarter, FNLC achieved an average sale price of 100.90 on sold production resulting in an after-tax loss of $15.5 million for the quarter. Importantly, FNLC has seen coupon increases of 109 basis points on its first mortgage production since November, resulting in a meaningful increase in sale prices for its mortgage inventory.

Nonetheless, the environment remains challenging in the gain-on-sale business. FNLC is taking the necessary steps to quickly return to profitability, including headcount reductions in many areas and other cost reductions throughout its origination business, while continuing to serve its broad base of mortgage brokers and retail customers. For the full year, FNLC originated a record $6.0 billion in mortgages, an increase of 81% over 2004. Total non-interest expenses related to FNLC since the acquisition in February were $87.1 million for the year and are the primary reason for the year-to-year increase in non-interest expenses for the entire firm.

Asset Management

Base management fees for 2005 were $30.3 million compared to fees of $28.3 million in 2004. Incentive fees, however, fell from $10.9 million in 2004 to $1.9 million in 2005. Base management fees for the fourth quarter of 2005 were $6.1 million, and incentive fees were $.7 million.

• Total funds under management were $2.6 billion as of December 31, 2005, compared to $3.2 billion on December 31, 2004.

• Mutual fund assets totaled $1.9 billion at year end 2005 compared to $2.3 billion at the close of 2004.

Looking Ahead

“As the 2005 capital markets results demonstrate, our franchise is far broader and more diversified than it was just a few short years ago,” Mr. Billings said. “Nothing says more about the strength of our business than our three-year aggregate ranking as the #1 book-running manager for U.S. IPOs and 144A equity placements combined.5 Given this record of accomplishment and the position it puts us in our marketplace, we have great confidence about our business as we look toward the future.”

The firm will host an earnings conference call tomorrow morning, Thursday, February 23, 2006 at 9:00 A.M. U.S. EST. Investors wishing to listen to the conference 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. provides investment banking*, institutional brokerage*, asset management, and private client services through its operating subsidiaries and invests in mortgage-related assets and merchant banking opportunities. FBR focuses capital and financial expertise on eight industry sectors: consumer, diversified industrials, energy and natural resources, financial institutions, healthcare,

insurance, real estate, and technology, media and telecommunications. FBR is headquartered in the Washington, D.C. metropolitan area with offices in Arlington, Va., Boston, Cleveland, Dallas, Denver, Houston, Irvine, London, New York, Phoenix, San Francisco and Seattle. Friedman, Billings, Ramsey Group, Inc. is the parent company of First NLC Financial Services, Inc., a non-conforming residential mortgage originator headquartered in Deerfield Beach, Florida. For more information, visit http://www.fbr.com.

* Friedman, Billings, Ramsey & Co., Inc.

¹ Return on tangible equity computed as annualized quarterly earnings per share excluding portfolio write-downs ($1.54 per share (diluted)), the loss in the non-conforming mortgage subsidiaries ($0.18 per share (diluted)) and the negative carry of the MBS portfolio ($0.09 per share (diluted)): $0.84 ($.21 x 4), divided by the average tangible book value per share: $6.83 ($7.10 at 9/30/05; $6.55 at 12/31/05). Tangible book value is shareholders’ equity less goodwill and intangible assets. The company believes this is an important measure because it more accurately reflects the core earnings of the business.

² Source: Dealogic. Relates to total deal value of all common stock of U.S. issuers offered in IPOs or transactions exempt from SEC registration pursuant to rule 144A; priced between 1/1/05 and 12/31/05, with apportioned credit to all book-runners. Includes only rank eligible transactions.

³ Source: Dealogic. Relates to reported net revenue for all U.S. equity capital markets IPO and follow-on transactions; priced between 1/1/05 and 12/31/05, with net revenue allocated to lead banks on an apportioned basis. Includes only rank eligible transactions.

⁴ Source: Dealogic. Relates to total deal value of all common stock offered in transactions classified as IPOs or follow-ons, regardless of SEC registration, for: U.S. issuers valued at $2 billion or less, U.S. issuers classified in the Oil and Gas general industry group, and all U.S. issuers, respectively; priced between 1/1/05 and 12/31/05, with apportioned credit to all book-runners. Includes only rank eligible transactions.

⁵ Source: Dealogic. Relates to total deal value of all common stock of U.S. issuers offered in IPOs or transactions exempt from SEC registration pursuant to rule 144A; priced between 1/1/03 and 12/31/05, with apportioned credit to all book-runners. Includes only rank eligible transactions.

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 attached.

# # #

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

	Quarter ended December 31,
	2005			%		2004		%
REVENUES:
Investment banking:
Capital raising	$	88,866		77.9	%	$	125,488	51.2	%
Advisory		7,415		6.5	%	$	8,088	3.3	%
Institutional brokerage:
Principal transactions		3,788		3.3	%		4,758	1.9	%
Agency commissions		21,006		18.4	%		20,948	8.5	%
Mortgage trading interest		19,555		17.1	%		—	0.0	%
Mortgage trading net investment loss		(1,419	)	-1.2	%		—	0.0	%
Asset management:
Base management fees		6,153		5.4	%		8,344	3.4	%
Incentive allocations and fees		742		0.6	%		7,982	3.3	%
Principal investment:
Interest		189,811		166.3	%		86,550	35.3	%
Net investment (loss) income		(258,500	)	-226.5	%		27,442	11.2	%
Dividends		16,039		14.1	%		6,169	2.5	%
Mortgage Banking:
Interest		30,965		27.1	%		—	0.0	%
Net investment loss		(21,899	)	-19.2	%		—	0.0	%
Other		3,024		2.7	%		2,329	1.0	%
Total revenues		105,546		92.5	%		298,098	121.6	%
Interest expense		211,393		185.3	%		52,968	21.6	%
Provision for loan losses		8,263		7.2	%		—	0.0	%
Revenues, net of interest expense and provision for loan losses		(114,110	)	-100.0	%		245,130	100.0	%
NON-INTEREST EXPENSES:
Compensation and benefits		87,330		76.5	%		95,113	38.8	%
Professional services		16,556		14.5	%		11,832	4.8	%
Business development		10,433		9.2	%		11,248	4.6	%
Clearing and brokerage fees		2,447		2.1	%		2,186	0.9	%
Occupancy and equipment		10,151		8.9	%		4,330	1.8	%
Communications		5,741		5.0	%		4,227	1.7	%
Other operating expenses		24,984		21.9	%		6,570	2.7	%
Total non-interest expenses		157,642		138.1	%		135,506	55.3	%
Net (loss) income before income taxes		(271,752	)	-238.1	%		109,624	44.7	%
Income tax (benefit) provision		(142	)	-0.1	%		23,032	9.4	%
Net (loss) income	$	(271,610	)	-238.0	%	$	86,592	35.3	%
Basic (loss) earnings per share	$	(1.60	)			$	0.52
Diluted (loss) earnings per share	$	(1.60	)			$	0.51
Weighted average shares - basic		169,921					167,753
Weighted average shares - diluted		169,921					168,867

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

	Twelve Months Ended December 31,
	2005			%		2004		%
REVENUES:
Investment banking:
Capital raising	$	356,753		82.1	%	$	398,183	44.8	%
Advisory		17,759		4.1	%		30,115	3.4	%
Institutional brokerage:
Principal transactions		17,950		4.1	%		20,444	2.3	%
Agency commissions		82,778		19.0	%		89,650	10.1	%
Mortgage trading interest		30,859		7.1	%		—	0.0	%
Mortgage trading net investment loss		(3,820	)	-0.9	%		—	0.0	%
Asset management:
Base management fees		30,348		7.0	%		28,307	3.2	%
Incentive allocations and fees		1,929		0.4	%		10,940	1.2	%
Principal investment:
Interest		549,832		126.6	%		350,691	39.5	%
Net investment (loss) income		(239,754	)	-55.2	%		101,973	11.5	%
Dividends		36,622		8.4	%		14,644	1.6	%
Mortgage Banking:
Interest		87,958		20.2	%		—	0.0	%
Net investment income		13,741		3.2	%		—	0.0	%
Other		12,351		2.9	%		7,155	0.9	%
Total revenues		995,306		229.0	%		1,052,102	118.5	%
Interest expense		546,313		125.7	%		164,156	18.5	%
Provision for loan losses		14,291		3.3	%		—	0.0	%
Revenues, net of interest expense and provision for loan losses		434,702		100.0	%		887,946	100.0	%
NON-INTEREST EXPENSES:
Compensation and benefits		331,492		76.3	%		323,524	36.4	%
Professional services		66,550		15.3	%		50,467	5.7	%
Business development		46,648		10.7	%		44,955	5.1	%
Clearing and brokerage fees		8,882		2.0	%		9,123	1.0	%
Occupancy and equipment		34,044		7.8	%		14,458	1.6	%
Communications		20,634		4.8	%		13,959	1.6	%
Other operating expenses		70,679		16.3	%		22,740	2.6	%
Total non-interest expenses		578,929		133.2	%		479,226	54.0	%
Net (loss) income before income taxes		(144,227	)	-33.2	%		408,720	46.0	%
Income tax provision		26,683		6.1	%		59,161	6.7	%
Net (loss) income	$	(170,910	)	-39.3	%	$	349,559	39.3	%
Basic (loss) earnings per share	$	(1.01	)			$	2.09
Diluted (loss) earnings per share	$	(1.01	)			$	2.07
Weighted average shares - basic		169,333					167,099
Weighted average shares - diluted		169,333					168,490

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. FINANCIAL & STATISTICAL SUPPLEMENT - OPERATING RESULTS (Dollars in thousands, except per share data) (Unaudited)

	As of and for the year ending December 31, 2005			Q-4 05			Q-3 05			Q-2 05			Q-1 05
Revenues
Investment banking:
Capital raising	$	356,753			88,866		$	86,035		$	95,039		$	86,813
Advisory		17,759			7,415			3,026			6,180			1,138
Institutional brokerage:
Principal transactions		17,950			3,788			4,348			4,187			5,627
Agency commissions		82,778			21,006			20,445			19,170			22,157
Mortgage trading interest		30,859			19,555			11,304			—			—
Mortgage trading net investment loss		(3,820	)		(1,419	)		(2,401	)		—			—
Asset management:
Base management fees		30,348			6,153			7,914			7,813			8,468
Incentive allocations and fees		1,929			742			832			730			(375	)
Principal investment:
Interest		549,832			189,811			144,401			116,724			98,896
Net investment (loss) income		(239,754	)		(258,500	)		4,866			17,738			(3,858	)
Dividends		36,622			16,039			8,772			8,371			3,440
Mortgage Banking:
Interest		87,958			30,965			29,383			18,118			9,492
Net investment income (loss)		13,741			(21,899	)		17,600			14,559			3,481
Other		12,351			3,024			3,376			3,455			2,496
Total revenues		995,306			105,546			339,901			312,084			237,775
Interest expense		546,313			211,393			156,373			103,725			74,822
Provision for loan losses		14,291			8,263			4,890			1,138			—
Revenues, net of interest expense and provision for loan losses		434,702			(114,110	)		178,638			207,221			162,953
Non-interest expenses
Compensation and benefits		331,492			87,330			88,348			80,015			75,799
Professional services		66,550			16,556			16,158			20,186			13,650
Business development		46,648			10,433			8,815			11,962			15,438
Clearing and brokerage fees		8,882			2,447			2,363			2,040			2,032
Occupancy and equipment		34,044			10,151			9,397			8,772			5,724
Communications		20,634			5,741			5,561			5,300			4,032
Other operating expenses		70,679			24,984			16,861			12,540			16,294
Total expenses		578,929			157,642			147,503			140,815			132,969
Net (loss) income before income taxes		(144,227	)		(271,752	)		31,135			66,406			29,984
Income tax provision (benefit)		26,683			(142	)		8,090			13,163			5,572
Net (loss) income	$	(170,910	)	$	(271,610	)	$	23,045		$	53,243		$	24,412
Net (loss) income before income taxes as a percentage of net revenue		(33.2	%)		(238.1	%)		17.4	%		32.0	%		18.4	%
ROE (annualized)		(11.9	%)		(80.5	%)		6.3	%		14.3	%		6.4	%
ROE (annualized-excluding AOCI) (1)		(11.7	%)		(74.7	%)		5.9	%		13.8	%		6.0	%
Total shareholders’ equity	$	1,304,170		$	1,304,170		$	1,394,137		$	1,519,021		$	1,458,861
Total shareholders’ equity, net of AOCI (1)	$	1,305,147		$	1,305,147		$	1,603,305		$	1,631,955		$	1,636,371

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. FINANCIAL & STATISTICAL SUPPLEMENT - OPERATING RESULTS (Dollars in thousands, except per share data) (Unaudited)

	As of and for the year ending December 31, 2005			Q-4 05			Q-3 05		Q-2 05		Q-1 05
Basic earnings per share	$	(1.01	)	$	(1.60	)	$	0.14	$	0.31	$	0.15
Diluted earnings per share	$	(1.01	)	$	(1.60	)	$	0.14	$	0.31	$	0.14
Ending shares outstanding (in thousands)		170,264			170,264			169,891		169,617		169,214
Book value per share	$	7.66		$	7.66		$	8.21	$	8.96	$	8.62
Book value per share, net of AOCI (1)	$	7.67		$	7.67		$	9.44	$	9.62	$	9.67
Gross assets under management (in millions)
Managed accounts	$	463.4		$	463.4		$	437.2	$	510.4	$	242.4
Hedge & offshore funds		154.3			154.3			239.0		463.1		601.1
Mutual funds		1,883.3			1,883.3			2,078.1		2,185.0		2,213.9
Private equity and venture capital funds		56.2			56.2			42.7		41.3		69.5
Total	$	2,557.2		$	2,557.2		$	2,797.0	$	3,199.8	$	3,126.9
Net assets under management (in millions)
Managed accounts	$	329.5		$	329.5		$	255.5	$	257.3	$	223.0
Hedge & offshore funds		150.5			150.5			227.8		401.1		490.3
Mutual funds		1,872.8			1,872.8			2,069.9		2,176.6		2,204.2
Private equity and venture capital funds		46.8			46.8			39.9		37.8		66.3
Total	$	2,399.6		$	2,399.6		$	2,593.1	$	2,872.8	$	2,983.8
Productive assets under management (in millions)
Managed accounts	$	329.5		$	329.5		$	255.5	$	257.3	$	223.0
Hedge & offshore funds		142.2			142.2			183.3		332.8		425.3
Mutual funds		1,872.8			1,872.8			2,069.9		2,176.6		2,204.2
Private equity and venture capital funds		100.3			100.3			51.4		51.2		79.9
Total	$	2,444.8		$	2,444.8		$	2,560.1	$	2,817.9	$	2,932.4
Employee count		2,449			2,449			2,455		2,226		2,123

(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)

	As of and for the year ending December 31, 2004			Q-4 04			Q-3 04			Q-2 04			Q-1 04
Revenues
Investment banking:
Capital raising	$	398,183		$	125,488		$	130,019		$	52,883		$	89,793
Advisory		30,115			8,088			11,602			9,107			1,318
Institutional brokerage:
Principal transactions		20,444			4,758			4,241			5,426			6,019
Agency commissions		89,650			20,948			18,505			21,060			29,137
Mortgage trading interest		—			—			—			—			—
Mortgage trading net investment loss		—			—			—			—			—
Asset management:
Base management fees		28,307			8,344			7,044			6,384			6,535
Incentive allocations and fees		10,940			7,982			1,737			(1,444	)		2,665
Principal investment:
Interest		350,691			86,550			88,035			87,111			88,995
Net investment income		101,973			27,442			19,090			28,832			26,609
Dividends		14,644			6,169			5,820			1,683			972
Mortgage Banking:
Interest		—			—			—			—			—
Net investment income (loss)		—			—			—			—			—
Other		7,155			2,329			1,827			1,683			1,316
Total revenues		1,052,102			298,098			287,920			212,725			253,359
Interest expense		164,156			52,968			44,265			34,276			32,647
Provision for loan losses		—			—			—			—			—
Revenues, net of interest expense and provision for loan losses		887,946			245,130			243,655			178,449			220,712
Non-interest expenses
Compensation and benefits		323,524			95,113			95,824			57,698			74,889
Professional services		50,467			11,832			13,421			15,050			10,164
Business development		44,955			11,248			8,284			8,885			16,538
Clearing and brokerage fees		9,123			2,186			1,556			2,608			2,773
Occupancy and equipment		14,458			4,330			3,898			3,326			2,904
Communications		13,959			4,227			3,348			3,442			2,942
Other operating expenses		22,740			6,570			4,846			5,351			5,973
Total expenses		479,226			135,506			131,177			96,360			116,183
Net income before income taxes		408,720			109,624			112,478			82,089			104,529
Income tax provision		59,161			23,032			20,329			910			14,890
Netincome	$	349,559		$	86,592		$	92,149		$	81,179		$	89,639
Net income before income taxes as a percentage of net revenue		46.0	%		44.7	%		46.2	%		46.0	%		47.4	%
ROE (annualized)		22.3	%		22.2	%		24.8	%		20.8	%		22.1	%
ROE (annualized-excluding AOCI) (1)		45.0	%		11.1	%		12.0	%		10.7	%		11.8	%
Total shareholders’ equity	$	1,578,524		$	1,578,524		$	1,543,361		$	1,431,345		$	1,685,673
Total shareholders’ equity, net of AOCI (1)	$	1,616,686		$	1,616,686		$	1,588,310		$	1,549,918		$	1,540,739

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. FINANCIAL & STATISTICAL SUPPLEMENT - OPERATING RESULTS (Dollars in thousands, except per share amounts) (Unaudited)

	As of and for the year ending December 31, 2004		Q-4 04		Q-3 04		Q-2 04		Q-1 04
Basic earnings per share	$	2.09	$	0.52	$	0.55	$	0.49	$	0.54
Diluted earnings per share	$	2.07	$	0.51	$	0.55	$	0.48	$	0.54
Ending shares outstanding (in thousands)		166,932		166,932		166,753		166,632		165,623
Book value per share	$	9.46	$	9.46	$	9.26	$	8.59	$	10.18
Book value per share, net of AOCI (1)	$	9.68	$	9.68	$	9.52	$	9.30	$	9.30
Gross assets under management (in millions)
Managed accounts	$	196.1	$	196.1	$	168.7	$	160.3	$	78.8
Hedge & offshore funds		631.6		631.6		519.3		430.0		435.4
Mutual funds		2,320.4		2,320.4		1,963.7		1,612.2		1,897.4
Private equity and venture capital funds		52.5		52.5		49.7		50.7		76.5
Total	$	3,200.6	$	3,200.6	$	2,701.4	$	2,253.2	$	2,488.1
Net assets under management (in millions)
Managed accounts	$	196.1	$	196.1	$	168.7	$	160.3	$	78.8
Hedge & offshore funds		589.6		589.6		482.8		409.0		350.5
Mutual funds		2,305.5		2,305.5		1,951.7		1,606.9		1,874.0
Private equity and venture capital funds		49.7		49.7		46.4		46.5		70.4
Total	$	3,140.9	$	3,140.9	$	2,649.6	$	2,222.7	$	2,373.7
Productive assets under management (in millions)
Managed accounts	$	196.1	$	196.1	$	168.7	$	160.3	$	78.8
Hedge & offshore funds		488.7		488.7		393.8		329.9		263.8
Mutual funds		2,305.5		2,305.5		1,951.7		1,606.9		1,874.0
Private equity and venture capital funds		70.9		70.9		70.9		111.6		131.2
Total	$	3,061.2	$	3,061.2	$	2,585.1	$	2,208.7	$	2,347.8
Employee count		698		698		665		626		549

(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 in thousands, except per share amounts) (Unaudited)

	31-Dec-05			31-Dec-04
ASSETS
Cash and cash equivalents	$	238,615		$	224,381
Restricted cash		6,101			7,146
Receivables		259,519			74,880
Investments:
Mortgage-backed securities, at fair value		8,002,561			11,726,689
Loans held for investment, net		6,841,266			—
Loans held for sale, net		963,807			—
Long-term investments		333,067			441,499
Reverse repurchase agreements		283,824			183,375
Trading securities, at fair value		1,032,638			7,744
Residual interest in securitization, at fair value		14,577			—
Due from clearing broker		71,065			95,247
Derivative assets, at fair value		70,636			8,098
Goodwill		162,765			108,013
Intangible assets, net		26,485			14,404
Furniture, equipment, software and leasehold improvements, net		46,382			18,733
Prepaid expenses and other assets		82,482			18,079
Total assets	$	18,435,790		$	12,928,288
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Trading account securities sold short but not yet purchased, at fair value	$	150,547		$	17,176
Commercial paper		6,996,950			7,294,949
Repurchase agreements		2,698,619			3,467,569
Securities purchased		—			144,430
Derivative liabilities, at fair value		31,952			613
Dividends payable		34,588			65,870
Interest payable		12,039			5,894
Accrued compensation and benefits		82,465			131,218
Accounts payable, accrued expenses and other liabilities		82,576			93,675
Temporary subordinated loan payable		75,000			—
Securitization financing for loans held for investment, net		6,642,198			—
Long-term debt		324,686			128,370
Total liabilities		17,131,620			11,349,764
Shareholders’ equity:
Common stock, 172,854 and 168,897 shares		1,729			1,689
Additional paid-in capital		1,547,128			1,483,640
Employee stock loan receivable (551 and 711 shares)		(4,018	)		(4,890	)
Deferred compensation		(15,602	)		(16,863	)
Accumulated other comprehensive loss		(977	)		(38,162	)
Retained (deficit) earnings		(224,090	)		153,110
Total shareholders’ equity		1,304,170			1,578,524
Total liabilities and shareholders’ equity	$	18,435,790		$	12,928,288