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As Of Filer Filing For·On·As Docs:Size Issuer Agent 11/02/06 Indymac Bancorp Inc 10-Q 9/30/06 8:2.7M RR Donnelley |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended September 30, 2006 | ||
or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
Delaware | 95-3983415 | |
(State or other jurisdiction
of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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888 East Walnut Street, Pasadena, California |
91101-7211 (Zip Code) |
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(Address of principal executive offices) |
1
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||||||
Select Balance Sheet
Information (at period end)
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 521 | $ | 308 | $ | 165 | $ | 521 | $ | 308 | ||||||||||
Securities (trading and available
for sale)
|
4,950 | 3,740 | 4,890 | 4,950 | 3,740 | |||||||||||||||
Loans held for sale
|
8,341 | 5,366 | 6,493 | 8,341 | 5,366 | |||||||||||||||
Loans held for investment
|
10,030 | 7,977 | 8,773 | 10,030 | 7,977 | |||||||||||||||
Allowance for loan losses
|
(61 | ) | (56 | ) | (58 | ) | (61 | ) | (56 | ) | ||||||||||
Mortgage servicing rights
|
1,631 | 941 | 1,599 | 1,631 | 941 | |||||||||||||||
Other
|
1,973 | 1,352 | 1,894 | 1,973 | 1,352 | |||||||||||||||
Total Assets
|
27,385 | 19,628 | 23,756 | 27,385 | 19,628 | |||||||||||||||
Deposits
|
10,111 | 7,261 | 9,352 | 10,111 | 7,261 | |||||||||||||||
Advances from Federal Home
Loan Bank
|
9,333 | 6,621 | 7,070 | 9,333 | 6,621 | |||||||||||||||
Other borrowings
|
4,595 | 3,585 | 4,165 | 4,595 | 3,585 | |||||||||||||||
Other liabilities
|
1,409 | 664 | 1,366 | 1,409 | 664 | |||||||||||||||
Total Liabilities
|
25,448 | 18,131 | 21,952 | 25,448 | 18,131 | |||||||||||||||
Shareholders’
Equity
|
1,938 | 1,497 | 1,804 | 1,938 | 1,497 |
2
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||||||
Income Statement
|
||||||||||||||||||||
Net interest income before
provision for loan losses
|
$ | 137 | $ | 113 | $ | 130 | $ | 394 | $ | 315 | ||||||||||
Provision for loan losses
|
5 | 4 | 2 | 11 | 8 | |||||||||||||||
Gain on sale of loans
|
160 | 151 | 202 | 503 | 455 | |||||||||||||||
Service fee income
|
21 | 10 | 27 | 79 | 26 | |||||||||||||||
Gain on mortgage-backed
securities, net
|
19 | 1 | 8 | 25 | 12 | |||||||||||||||
Fee and other income
|
14 | 11 | 12 | 37 | 26 | |||||||||||||||
Net revenues
|
346 | 283 | 377 | 1,027 | 825 | |||||||||||||||
Operating expenses
|
203 | 154 | 204 | 578 | 455 | |||||||||||||||
Net earnings
|
86 | 78 | 105 | 271 | 223 | |||||||||||||||
Basic earnings per share(1)
|
1.25 | 1.23 | 1.57 | 4.07 | 3.57 | |||||||||||||||
Diluted earnings per share(2)
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1.19 | 1.16 | 1.49 | 3.87 | 3.38 | |||||||||||||||
Other Operating Data
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||||||||||||||||||||
Mortgage production
|
$ | 23,968 | $ | 16,950 | $ | 20,060 | $ | 64,005 | $ | 42,751 | ||||||||||
Total loan production(3)
|
24,439 | 17,489 | 20,591 | 65,370 | 44,237 | |||||||||||||||
Mortgage industry share(4)
|
3.87 | % | 1.95 | % | 2.78 | % | 3.31 | % | 1.85 | % | ||||||||||
Pipeline of mortgage loans in
process(5)
|
14,556 | 10,333 | 12,527 | 14,556 | 10,333 | |||||||||||||||
Loans sold
|
19,508 | 15,539 | 19,415 | 55,632 | 36,727 | |||||||||||||||
Loans sold/mortgage loans produced
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81 | % | 92 | % | 97 | % | 87 | % | 86 | % | ||||||||||
Mortgage loans serviced for others
(as of quarter end)(6)
|
124,395 | 73,787 | 109,989 | 124,395 | 73,787 | |||||||||||||||
Total mortgage loans serviced (as
of quarter end)
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130,807 | 80,484 | 117,417 | 130,807 | 80,484 | |||||||||||||||
Average full-time equivalent
headcount
|
8,186 | 6,376 | 7,861 | 7,759 | 6,076 |
3
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||||||
Other Per Share Data
|
||||||||||||||||||||
Dividends declared per share
|
$ | 0.48 | $ | 0.40 | $ | 0.46 | $ | 1.38 | $ | 1.14 | ||||||||||
Dividend payout ratio(7)
|
40 | % | 34 | % | 31 | % | 36 | % | 34 | % | ||||||||||
Book value per share at period end
|
27.35 | 23.32 | 26.29 | 27.35 | 23.32 | |||||||||||||||
Closing price per share at period
end
|
41.16 | 39.58 | 45.85 | 41.16 | 39.58 | |||||||||||||||
Average Common Shares (in
thousands)
|
||||||||||||||||||||
Basic
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68,866 | 63,268 | 66,483 | 66,570 | 62,460 | |||||||||||||||
Diluted
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72,286 | 67,100 | 70,213 | 70,009 | 65,908 | |||||||||||||||
Performance Ratios
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||||||||||||||||||||
Return on average equity
(“ROE”) (annualized)
|
18.27 | % | 21.73 | % | 24.09 | % | 20.82 | % | 22.20 | % | ||||||||||
Return on average assets
(“ROA”) (annualized)
|
1.17 | % | 1.35 | % | 1.51 | % | 1.30 | % | 1.45 | % | ||||||||||
Net interest income to pretax
income after minority interest
|
95.97 | % | 87.95 | % | 75.40 | % | 88.11 | % | 85.67 | % | ||||||||||
Net interest margin
|
2.13 | % | 2.12 | % | 2.12 | % | 2.13 | % | 2.22 | % | ||||||||||
Net interest margin, thrift
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2.02 | % | 2.07 | % | 2.01 | % | 2.03 | % | 2.14 | % | ||||||||||
Mortgage banking revenue
(“MBR”) margin on loans sold(8)
|
1.03 | % | 1.22 | % | 1.23 | % | 1.12 | % | 1.51 | % | ||||||||||
Efficiency ratio(9)
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58 | % | 54 | % | 54 | % | 56 | % | 55 | % | ||||||||||
Operating expenses to loan
production
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0.83 | % | 0.88 | % | 0.99 | % | 0.88 | % | 1.03 | % | ||||||||||
Balance Sheet and Asset Quality
Ratios
|
||||||||||||||||||||
Average interest-earning assets
|
$ | 25,507 | $ | 21,122 | $ | 24,681 | $ | 24,734 | $ | 18,989 | ||||||||||
Average equity
|
1,871 | 1,415 | 1,742 | 1,738 | 1,341 | |||||||||||||||
Debt to equity ratio(10)
|
13.1:1 | 12.1:1 | 12.2:1 | 13.1:1 | 12.1:1 | |||||||||||||||
Core capital ratio(11)
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7.60 | % | 7.51 | % | 8.24 | % | 7.60 | % | 7.51 | % | ||||||||||
Risk-based capital ratio(11)
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11.62 | % | 11.58 | % | 11.97 | % | 11.62 | % | 11.58 | % | ||||||||||
Non-performing assets to total
assets
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0.51 | % | 0.36 | % | 0.49 | % | 0.51 | % | 0.36 | % | ||||||||||
Allowance for loan losses to total
loans held for investment
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0.61 | % | 0.70 | % | 0.66 | % | 0.61 | % | 0.70 | % | ||||||||||
Allowance for loan losses to
non-performing loans held for investment
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77.43 | % | 127.24 | % | 90.61 | % | 77.43 | % | 127.24 | % | ||||||||||
Loan Loss Activity
|
||||||||||||||||||||
Allowance for loan losses to
annualized net charge-offs
|
8.2 | x | 6.7 | x | 8.8 | x | 8.8 | x | 7.2x | |||||||||||
Provision for loan losses to net
charge-offs
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267.45 | % | 170.93 | % | 136.06 | % | 213.42 | % | 145.69 | % | ||||||||||
Net charge-offs (annualized) to
average non-performing loans held for investment
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10.45 | % | 19.08 | % | 11.12 | % | 11.29 | % | 16.62 | % | ||||||||||
Net charge-offs (annualized) to
average loans held for investment
|
0.08 | % | 0.11 | % | 0.08 | % | 0.08 | % | 0.11 | % |
(1) | Net earnings for the period divided by weighted average basic shares outstanding for the period. |
4
(2) | Net earnings for the period divided by weighted average dilutive shares outstanding for the period. | |
(3) | Includes newly originated commitments on construction loans. | |
(4) | Our market share is calculated based on our total loan production, both purchased (correspondent and conduit) and originated (retail and wholesale), in all channels (the numerator) divided by the Mortgage Bankers Association (“MBA”) October 24, 2006 Mortgage Finance Long-Term Forecast estimate of the overall mortgage market (the denominator). As we review industry publications such as National Mortgage News, we have confirmed that our calculation is consistent with its methodologies for reporting market share of Indymac and our mortgage banking peers. It is important to note that these industry calculations cause purchased mortgages to be counted more than once, i.e., first when they are originated and again by the purchasers (through correspondent and conduit channels) of the mortgages. Therefore, our market share calculation may not be mathematically precise, but it is consistent with industry calculations, which provide investors with a good view of our relative standing compared to the other top mortgage lending peers. | |
(5) | The amount includes $2.8 billion, $1.6 billion and $2.5 billion of non-specific rate locks on bulk purchases in our conduit channel at September 30, 2006, September 30, 2005 and June 30, 2006, respectively. | |
(6) | Represents the unpaid principal balance on loans sold with servicing retained by Indymac. | |
(7) | Dividends declared per common share as a percentage of diluted earnings per share. | |
(8) | Mortgage banking revenue margin is calculated using the sum of consolidated gain on sale of loans and the net interest income earned on loans held for sale by our mortgage banking production divisions divided by total loans sold. | |
(9) | Defined as operating expenses divided by net interest income and other income. | |
(10) | Debt includes deposits. | |
(11) | Ratio is for Indymac Bank and excludes unencumbered cash at the Parent Company available for investment in Indymac Bank. Risk-based capital ratio is calculated based on the regulatory standard risk weighting adjusted for the additional risk weightings for subprime loans. |
5
6
Mortgage Banking | ||||||||||||||||||||||||||||||||||||
MSRs and |
||||||||||||||||||||||||||||||||||||
Other |
Mortgage |
Total |
||||||||||||||||||||||||||||||||||
Production |
Retained |
Banking |
Elimination |
Operating |
Corporate |
Total |
||||||||||||||||||||||||||||||
Divisions | Assets | Overhead(1) | Total | Thrift | & Other | Results | Overhead | Company | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Net Income Q306
|
$ | 68,635 | $ | 30,404 | $ | (8,899 | ) | $ | 90,140 | $ | 35,232 | $ | (12,641 | ) | $ | 112,731 | $ | (26,551 | ) | $ | 86,180 | |||||||||||||||
Net Income Q305
|
64,817 | 9,564 | (6,119 | ) | 68,262 | 36,239 | (4,015 | ) | 100,486 | (22,960 | ) | 77,526 | ||||||||||||||||||||||||
$ Change
|
3,818 | 20,840 | (2,780 | ) | 21,878 | (1,007 | ) | (8,626 | ) | 12,245 | (3,591 | ) | 8,654 | |||||||||||||||||||||||
% Change
|
6 | % | 218 | % | (45 | )% | 32 | % | (3 | )% | (215 | )% | 12 | % | (16 | )% | 11 | % | ||||||||||||||||||
Average Capital Q306
|
$ | 509,136 | $ | 401,545 | $ | 10,677 | $ | 921,358 | $ | 687,962 | $ | 1,939 | $ | 1,611,259 | $ | 260,120 | $ | 1,871,379 | ||||||||||||||||||
Average Capital Q305
|
415,031 | 189,744 | 10,762 | 615,537 | 546,094 | 1,440 | 1,163,071 | 252,290 | 1,415,361 | |||||||||||||||||||||||||||
% Change
|
23 | % | 112 | % | (1 | )% | 50 | % | 26 | % | 35 | % | 39 | % | 3 | % | 32 | % | ||||||||||||||||||
ROE Q306
|
53 | % | 30 | % | N/A | 39 | % | 20 | % | N/A | 28 | % | N/A | 18 | % | |||||||||||||||||||||
ROE Q305
|
62 | % | 20 | % | N/A | 44 | % | 26 | % | N/A | 34 | % | N/A | 22 | % | |||||||||||||||||||||
% Change
|
(14 | )% | 50 | % | N/A | (12 | )% | (23 | )% | N/A | (19 | )% | N/A | (16 | )% |
(1) | Included production division overhead and servicing overhead of $6.2 million and $2.7 million, respectively, for the third quarter of 2006. For the third quarter of 2005, the production division overhead and servicing overhead were $4.2 million and $1.9 million, respectively. |
Mortgage Banking Production Divisions | ||||||||||||||||||||||||||||
Mortgage Professionals Group |
Consumer |
Financial |
Production |
|||||||||||||||||||||||||
Wholesale | Correspondent | Conduit | Total | Direct | Freedom | Divisions | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Net Income Q306
|
$ | 31,800 | $ | 3,194 | $ | 17,256 | $ | 52,250 | $ | 103 | $ | 16,282 | $ | 68,635 | ||||||||||||||
Net Income Q305
|
43,769 | 8,839 | 4,365 | 56,973 | 864 | 6,980 | 64,817 | |||||||||||||||||||||
$ Change
|
$ | (11,969 | ) | $ | (5,645 | ) | $ | 12,891 | $ | (4,723 | ) | $ | (761 | ) | $ | 9,302 | $ | 3,818 | ||||||||||
% Change
|
(27 | )% | (64 | )% | 295 | % | (8 | )% | (88 | )% | 133 | % | 6 | % | ||||||||||||||
Average Capital Q306
|
$ | 192,689 | $ | 42,780 | $ | 149,894 | $ | 385,363 | $ | 8,822 | $ | 114,951 | $ | 509,136 | ||||||||||||||
Average Capital Q305
|
172,731 | 33,623 | 125,371 | 331,725 | 18,206 | 65,100 | 415,031 | |||||||||||||||||||||
% Change
|
12 | % | 27 | % | 20 | % | 16 | % | (52 | )% | 77 | % | 23 | % | ||||||||||||||
ROE Q306
|
65 | % | 30 | % | 46 | % | 54 | % | 5 | % | 56 | % | 53 | % | ||||||||||||||
ROE Q305
|
101 | % | 104 | % | 14 | % | 68 | % | 19 | % | 43 | % | 62 | % | ||||||||||||||
% Change
|
(35 | )% | (72 | )% | 231 | % | (21 | )% | (75 | )% | 32 | % | (14 | )% |
7
Thrift | ||||||||||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Mortgage- |
Prime SFR |
Home |
Construction |
Builder |
||||||||||||||||||||||||||||
Backed |
Mortgage |
Equity |
and Lot |
Construction |
Warehouse |
Discontinued |
||||||||||||||||||||||||||
Securities | Loans | Division | Loans | Financing | Lending | Products | Total Thrift | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Net Income Q306
|
$ | 3,991 | $ | 11,036 | $ | 5,918 | $ | 6,652 | $ | 7,193 | $ | 211 | $ | 231 | $ | 35,232 | ||||||||||||||||
Net Income Q305
|
4,802 | 12,856 | 5,553 | 7,695 | 5,447 | (138 | ) | 24 | 36,239 | |||||||||||||||||||||||
$ Change
|
$ | (811 | ) | $ | (1,820 | ) | $ | 365 | $ | (1,043 | ) | $ | 1,746 | $ | 349 | $ | 207 | $ | (1,007 | ) | ||||||||||||
% Change
|
(17 | )% | (14 | )% | 7 | % | (14 | )% | 32 | % | 253 | % | 863 | % | (3 | )% | ||||||||||||||||
Average Capital Q306
|
$ | 61,628 | $ | 220,811 | $ | 151,013 | $ | 130,975 | $ | 108,408 | $ | 11,583 | $ | 3,544 | $ | 687,962 | ||||||||||||||||
Average Capital Q305
|
39,787 | 208,202 | 98,744 | 106,799 | 84,970 | 3,301 | 4,291 | 546,094 | ||||||||||||||||||||||||
% Change
|
55 | % | 6 | % | 53 | % | 23 | % | 28 | % | 251 | % | (17 | )% | 26 | % | ||||||||||||||||
ROE Q306
|
26 | % | 20 | % | 16 | % | 20 | % | 26 | % | 7 | % | 26 | % | 20 | % | ||||||||||||||||
ROE Q305
|
48 | % | 24 | % | 22 | % | 29 | % | 25 | % | (17 | )% | 2 | % | 26 | % | ||||||||||||||||
% Change
|
(46 | )% | (19 | )% | (30 | )% | (30 | )% | 4 | % | N/M | N/M | (23 | )% |
8
Mortgage Banking | ||||||||||||||||||||||||||||||||||||
MSRs |
||||||||||||||||||||||||||||||||||||
and |
||||||||||||||||||||||||||||||||||||
Other |
Mortgage |
Total |
||||||||||||||||||||||||||||||||||
Production |
Retained |
Banking |
Elimination |
Operating |
Corporate |
Total |
||||||||||||||||||||||||||||||
Divisions | Assets | Overhead(1) | Total | Thrift | & Other(2) | Results | Overhead | Company | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||||||||||||||
Net interest income
|
$ | 41,218 | $ | 17,429 | $ | (188 | ) | $ | 58,459 | $ | 67,185 | $ | 13,140 | $ | 138,784 | $ | (2,073 | ) | $ | 136,711 | ||||||||||||||||
Provision for loan losses
|
— | — | — | — | (4,988 | ) | — | (4,988 | ) | — | (4,988 | ) | ||||||||||||||||||||||||
Gain (loss) on sale of loans
|
157,271 | 9,392 | — | 166,663 | 16,558 | (22,996 | ) | 160,225 | — | 160,225 | ||||||||||||||||||||||||||
Service fee income
|
5,599 | 15,434 | — | 21,033 | (397 | ) | 422 | 21,058 | — | 21,058 | ||||||||||||||||||||||||||
Gain (loss) on securities
|
— | 21,745 | — | 21,745 | (4,147 | ) | 1,370 | 18,968 | — | 18,968 | ||||||||||||||||||||||||||
Other income
|
303 | 1,653 | 846 | 2,802 | 10,631 | (610 | ) | 12,823 | 777 | 13,600 | ||||||||||||||||||||||||||
Net revenues (expense)
|
204,391 | 65,653 | 658 | 270,702 | 84,842 | (8,674 | ) | 346,870 | (1,296 | ) | 345,574 | |||||||||||||||||||||||||
Operating expenses
|
149,728 | 17,526 | 15,367 | 182,621 | 31,099 | 12,937 | 226,657 | 42,669 | 269,326 | |||||||||||||||||||||||||||
Deferred expense under SFAS 91
|
(58,860 | ) | (2,128 | ) | — | (60,988 | ) | (4,492 | ) | (718 | ) | (66,198 | ) | — | (66,198 | ) | ||||||||||||||||||||
Pretax income (loss)
|
113,523 | 50,255 | (14,709 | ) | 149,069 | 58,235 | (20,893 | ) | 186,411 | (43,965 | ) | 142,446 | ||||||||||||||||||||||||
Net income (loss)
|
$ | 68,635 | $ | 30,404 | $ | (8,899 | ) | $ | 90,140 | $ | 35,232 | $ | (12,641 | ) | $ | 112,731 | $ | (26,551 | ) | $ | 86,180 | |||||||||||||||
Relevant Financial and
Performance Data
|
||||||||||||||||||||||||||||||||||||
Average interest-earning assets
|
$ | 9,152,748 | $ | 963,760 | $ | 41 | $ | 10,116,549 | $ | 15,181,876 | $ | (93,621 | ) | $ | 25,204,804 | $ | 302,213 | $ | 25,507,017 | |||||||||||||||||
Allocated capital
|
509,136 | 401,545 | 10,677 | 921,358 | 687,962 | 1,939 | 1,611,259 | 260,120 | 1,871,379 | |||||||||||||||||||||||||||
Loans produced
|
22,446,264 | 721,019 | N/A | 23,167,283 | 1,271,893 | N/A | 24,439,176 | N/A | 24,439,176 | |||||||||||||||||||||||||||
Loans sold
|
20,562,308 | 654,023 | N/A | 21,216,331 | 1,281,971 | (2,990,126 | ) | 19,508,176 | N/A | 19,508,176 | ||||||||||||||||||||||||||
MBR margin
|
0.97 | % | 1.44 | % | N/A | 0.98 | % | 1.29 | % | N/A | N/A | N/A | 1.03 | % | ||||||||||||||||||||||
ROE
|
53 | % | 30 | % | N/A | 39 | % | 20 | % | N/A | 28 | % | N/A | 18 | % | |||||||||||||||||||||
ROA
|
2.89 | % | 4.23 | % | N/A | 2.88 | % | 0.91 | % | N/A | 1.61 | % | N/A | 1.17 | % | |||||||||||||||||||||
Net interest margin, thrift.
|
N/A | N/A | N/A | N/A | 1.76 | % | N/A | N/A | N/A | 2.02 | % | |||||||||||||||||||||||||
Average FTE
|
4,652 | 182 | 1,074 | 5,908 | 650 | 324 | 6,882 | 1,304 | 8,186 | |||||||||||||||||||||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||||||||||||||
Net interest income
|
$ | 34,695 | $ | 11,242 | $ | (5 | ) | $ | 45,932 | $ | 60,076 | $ | 10,168 | $ | 116,176 | $ | (3,357 | ) | $ | 112,819 | ||||||||||||||||
Provision for loan losses
|
— | — | — | — | (3,528 | ) | — | (3,528 | ) | — | (3,528 | ) | ||||||||||||||||||||||||
Gain (loss) on sale of loans
|
137,241 | 7,642 | — | 144,883 | 14,458 | (8,255 | ) | 151,086 | — | 151,086 | ||||||||||||||||||||||||||
Service fee income
|
3,384 | 5,796 | — | 9,180 | 1,568 | (444 | ) | 10,304 | — | 10,304 | ||||||||||||||||||||||||||
Gain (loss) on securities
|
— | (390 | ) | — | (390 | ) | 412 | 706 | 728 | — | 728 | |||||||||||||||||||||||||
Other income
|
145 | 731 | 622 | 1,498 | 8,880 | 192 | 10,570 | 715 | 11,285 | |||||||||||||||||||||||||||
Net revenues (expense)
|
175,465 | 25,021 | 617 | 201,103 | 81,866 | 2,367 | 285,336 | (2,642 | ) | 282,694 | ||||||||||||||||||||||||||
Operating expenses
|
122,089 | 9,920 | 10,730 | 142,739 | 27,460 | 9,711 | 179,910 | 35,301 | 215,211 | |||||||||||||||||||||||||||
Deferred expense under SFAS 91
|
(53,878 | ) | (708 | ) | — | (54,586 | ) | (5,496 | ) | (707 | ) | (60,789 | ) | — | (60,789 | ) | ||||||||||||||||||||
Pretax income (loss)
|
107,254 | 15,809 | (10,113 | ) | 112,950 | 59,902 | (6,637 | ) | 166,215 | (37,943 | ) | 128,272 | ||||||||||||||||||||||||
Net income (loss)
|
$ | 64,817 | $ | 9,564 | $ | (6,119 | ) | $ | 68,262 | $ | 36,239 | $ | (4,015 | ) | $ | 100,486 | $ | (22,960 | ) | $ | 77,526 | |||||||||||||||
Relevant Financial and
Performance Data
|
||||||||||||||||||||||||||||||||||||
Average interest-earning assets
|
$ | 7,767,105 | $ | 519,850 | $ | 51 | $ | 8,287,006 | $ | 12,082,104 | $ | (88,062 | ) | $ | 20,281,048 | $ | 840,492 | $ | 21,121,540 | |||||||||||||||||
Allocated capital
|
415,031 | 189,744 | 10,762 | 615,537 | 546,094 | 1,440 | 1,163,071 | 252,290 | 1,415,361 | |||||||||||||||||||||||||||
Loans produced
|
15,745,797 | 330,439 | — | 16,076,236 | 1,412,830 | — | 17,489,066 | — | 17,489,066 | |||||||||||||||||||||||||||
Loans sold
|
16,057,236 | 321,746 | — | 16,378,982 | 1,120,033 | (1,959,806 | ) | 15,539,209 | N/A | 15,539,209 | ||||||||||||||||||||||||||
MBR margin
|
1.07 | % | 2.81 | % | N/A | 1.10 | % | 1.49 | % | N/A | N/A | N/A | 1.22 | % | ||||||||||||||||||||||
ROE
|
62 | % | 20 | % | N/A | 44 | % | 26 | % | N/A | 34 | % | N/A | 22 | % | |||||||||||||||||||||
ROA
|
3.24 | % | 2.68 | % | N/A | 2.86 | % | 1.19 | % | N/A | 1.85 | % | N/A | 1.35 | % | |||||||||||||||||||||
Net interest margin, thrift.
|
N/A | N/A | N/A | N/A | 1.97 | % | N/A | N/A | N/A | 2.07 | % | |||||||||||||||||||||||||
Average FTE
|
3,593 | 156 | 817 | 4,566 | 601 | 247 | 5,414 | 962 | 6,376 |
(1) | Included production division overhead and servicing overhead of $6.2 million and $2.7 million, respectively, for the third quarter of 2006. For the third quarter of 2005, the production division overhead and servicing overhead were $4.2 million and $1.9 million, respectively. | |
(2) | Included are eliminations, deposits, and treasury items, the details of which are provided on page 12. |
9
Mortgage Banking Production Divisions | ||||||||||||||||||||||||||||
Financial |
||||||||||||||||||||||||||||
Freedom |
Total |
|||||||||||||||||||||||||||
Mortgage Professionals Group |
Consumer |
(Reverse |
Production |
|||||||||||||||||||||||||
Wholesale | Correspondent | Conduit | Total | Direct | Mortgage) | Divisions | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||||||
Net interest income
|
$ | 15,939 | $ | 3,577 | $ | 18,327 | $ | 37,843 | $ | 507 | $ | 2,868 | $ | 41,218 | ||||||||||||||
Provision for loan losses
|
— | — | — | — | — | — | — | |||||||||||||||||||||
Gain (loss) on sale of loans
|
79,916 | 7,897 | 17,905 | 105,718 | 6,005 | 45,548 | 157,271 | |||||||||||||||||||||
Service fee income
|
— | — | — | — | — | 5,599 | 5,599 | |||||||||||||||||||||
Gain (loss) on securities
|
— | — | — | — | — | — | — | |||||||||||||||||||||
Other income
|
— | — | (153 | ) | (153 | ) | 269 | 187 | 303 | |||||||||||||||||||
Net revenues (expense)
|
95,855 | 11,474 | 36,079 | 143,408 | 6,781 | 54,202 | 204,391 | |||||||||||||||||||||
Operating expenses
|
83,575 | 11,962 | 7,557 | 103,094 | 11,829 | 34,805 | 149,728 | |||||||||||||||||||||
Deferral of expenses under
SFAS 91
|
(40,282 | ) | (5,767 | ) | — | (46,049 | ) | (5,219 | ) | (7,592 | ) | (58,860 | ) | |||||||||||||||
Pretax income (loss)
|
52,562 | 5,279 | 28,522 | 86,363 | 171 | 26,989 | 113,523 | |||||||||||||||||||||
Net income (loss)
|
$ | 31,800 | $ | 3,194 | $ | 17,256 | $ | 52,250 | $ | 103 | $ | 16,282 | $ | 68,635 | ||||||||||||||
Relevant Financial and
Performance Data
|
||||||||||||||||||||||||||||
Average interest-earning assets
|
$ | 3,734,539 | $ | 830,710 | $ | 3,609,638 | $ | 8,174,887 | $ | 176,232 | $ | 801,629 | $ | 9,152,748 | ||||||||||||||
Allocated capital
|
192,689 | 42,780 | 149,894 | 385,363 | 8,822 | 114,951 | 509,136 | |||||||||||||||||||||
Loans produced
|
9,280,817 | 2,503,012 | 9,078,589 | 20,862,418 | 455,643 | 1,128,203 | 22,446,264 | |||||||||||||||||||||
Loans sold
|
9,050,759 | 2,385,091 | 7,600,746 | 19,036,596 | 454,060 | 1,071,652 | 20,562,308 | |||||||||||||||||||||
MBR margin
|
1.06 | % | 0.48 | % | 0.48 | % | 0.75 | % | 1.43 | % | 4.52 | % | 0.97 | % | ||||||||||||||
Pretax income/loan sold
|
0.58 | % | 0.22 | % | 0.38 | % | 0.45 | % | 0.04 | % | 2.52 | % | 0.55 | % | ||||||||||||||
ROE
|
65 | % | 30 | % | 46 | % | 54 | % | 5 | % | 56 | % | 53 | % | ||||||||||||||
ROA
|
3.37 | % | 1.52 | % | 1.87 | % | 2.52 | % | 0.22 | % | 6.42 | % | 2.89 | % | ||||||||||||||
Net interest margin
|
1.69 | % | 1.71 | % | 2.01 | % | 1.84 | % | 1.14 | % | 1.42 | % | 1.79 | % | ||||||||||||||
Average FTE
|
2,507 | 246 | 147 | 2,900 | 387 | 1,365 | 4,652 | |||||||||||||||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||||||
Net interest income
|
$ | 15,845 | $ | 3,863 | $ | 12,719 | $ | 32,427 | $ | 1,534 | $ | 734 | $ | 34,695 | ||||||||||||||
Provision for loan losses
|
— | — | — | — | — | — | — | |||||||||||||||||||||
Gain (loss) on sale of loans
|
86,078 | 14,309 | (552 | ) | 99,835 | 15,550 | 21,856 | 137,241 | ||||||||||||||||||||
Service fee income
|
— | — | — | — | — | 3,384 | 3,384 | |||||||||||||||||||||
Gain (loss) on securities
|
— | — | — | — | — | — | — | |||||||||||||||||||||
Other income
|
— | — | 31 | 31 | 88 | 26 | 145 | |||||||||||||||||||||
Net revenues (expense)
|
101,923 | 18,172 | 12,198 | 132,293 | 17,172 | 26,000 | 175,465 | |||||||||||||||||||||
Operating expenses
|
64,427 | 8,562 | 4,983 | 77,972 | 23,393 | 20,724 | 122,089 | |||||||||||||||||||||
Deferral of expenses under
SFAS 91
|
(34,850 | ) | (5,000 | ) | — | (39,850 | ) | (7,649 | ) | (6,379 | ) | (53,878 | ) | |||||||||||||||
Pretax income (loss)
|
72,346 | 14,610 | 7,215 | 94,171 | 1,428 | 11,655 | 107,254 | |||||||||||||||||||||
Net income (loss)
|
$ | 43,769 | $ | 8,839 | $ | 4,365 | $ | 56,973 | $ | 864 | $ | 6,980 | $ | 64,817 | ||||||||||||||
Relevant Financial and
Performance Data
|
||||||||||||||||||||||||||||
Average interest-earning assets
|
3,686,819 | 741,485 | 2,808,114 | 7,236,418 | 377,158 | 153,529 | 7,767,105 | |||||||||||||||||||||
Allocated capital
|
172,731 | 33,623 | 125,371 | 331,725 | 18,206 | 65,100 | 415,031 | |||||||||||||||||||||
Loans produced
|
7,749,550 | 1,651,558 | 4,718,369 | 14,119,477 | 791,707 | 834,613 | 15,745,797 | |||||||||||||||||||||
Loans sold
|
7,689,017 | 1,628,396 | 5,179,806 | 14,497,219 | 780,010 | 780,007 | 16,057,236 | |||||||||||||||||||||
MBR margin
|
1.33 | % | 1.12 | % | 0.23 | % | 0.91 | % | 2.19 | % | 2.90 | % | 1.07 | % | ||||||||||||||
Pretax income/loan sold
|
0.94 | % | 0.90 | % | 0.14 | % | 0.65 | % | 0.18 | % | 1.49 | % | 0.67 | % | ||||||||||||||
ROE
|
101 | % | 104 | % | 14 | % | 68 | % | 19 | % | 43 | % | 62 | % | ||||||||||||||
ROA
|
4.70 | % | 4.72 | % | 0.61 | % | 3.12 | % | 0.88 | % | 9.76 | % | 3.24 | % | ||||||||||||||
Net interest margin
|
1.71 | % | 2.07 | % | 1.80 | % | 1.78 | % | 1.61 | % | 1.90 | % | 1.77 | % | ||||||||||||||
Average FTE
|
1,870 | 222 | 116 | 2,208 | 561 | 824 | 3,593 |
10
Thrift | ||||||||||||||||||||||||||||||||
Consumer |
||||||||||||||||||||||||||||||||
Mortgage- |
Prime SFR |
Home |
Construction |
Builder |
||||||||||||||||||||||||||||
Backed |
Mortgage |
Equity |
and Lot |
Construction |
Warehouse |
Discontinued |
||||||||||||||||||||||||||
Securities | Loans | Division | Loans | Financing | Lending | Products | Total Thrift | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||||||||||
Net interest income
|
$ | 7,418 | $ | 20,430 | $ | 10,851 | $ | 10,454 | $ | 16,488 | $ | 1,035 | $ | 509 | $ | 67,185 | ||||||||||||||||
Provision for loan losses
|
— | (2,000 | ) | — | (720 | ) | (2,200 | ) | (18 | ) | (50 | ) | (4,988 | ) | ||||||||||||||||||
Gain (loss) on sale of loans
|
— | 748 | 5,788 | 10,022 | — | — | — | 16,558 | ||||||||||||||||||||||||
Service fee income
|
— | — | (397 | ) | — | — | — | — | (397 | ) | ||||||||||||||||||||||
Gain (loss) on securities
|
(493 | ) | — | (3,607 | ) | (47 | ) | — | — | — | (4,147 | ) | ||||||||||||||||||||
Other income
|
(14 | ) | 429 | 2,392 | 6,655 | 703 | 466 | — | 10,631 | |||||||||||||||||||||||
Net revenues (expense)
|
6,911 | 19,607 | 15,027 | 26,364 | 14,991 | 1,483 | 459 | 84,842 | ||||||||||||||||||||||||
Operating expenses
|
315 | 1,365 | 5,607 | 17,690 | 4,911 | 1,134 | 77 | 31,099 | ||||||||||||||||||||||||
Deferral of expenses under
SFAS 91
|
— | — | (361 | ) | (2,321 | ) | (1,810 | ) | — | — | (4,492 | ) | ||||||||||||||||||||
Pretax income (loss)
|
6,596 | 18,242 | 9,781 | 10,995 | 11,890 | 349 | 382 | 58,235 | ||||||||||||||||||||||||
Net income (loss)
|
$ | 3,991 | $ | 11,036 | $ | 5,918 | $ | 6,652 | $ | 7,193 | $ | 211 | $ | 231 | $ | 35,232 | ||||||||||||||||
Relevant Financial and
Performance Data
|
||||||||||||||||||||||||||||||||
Average interest-earning assets
|
$ | 3,527,766 | $ | 5,851,294 | $ | 1,947,724 | $ | 2,568,007 | $ | 1,112,338 | $ | 135,511 | $ | 39,236 | $ | 15,181,876 | ||||||||||||||||
Allocated capital
|
61,628 | 220,811 | 151,013 | 130,975 | 108,408 | 11,583 | 3,544 | 687,962 | ||||||||||||||||||||||||
Loans produced
|
— | — | 29,806 | 770,937 | 471,150 | — | — | 1,271,893 | ||||||||||||||||||||||||
Loans sold
|
— | — | 635,366 | 646,605 | — | — | — | 1,281,971 | ||||||||||||||||||||||||
ROE
|
26 | % | 20 | % | 16 | % | 20 | % | 26 | % | 7 | % | 26 | % | 20 | % | ||||||||||||||||
ROA
|
0.44 | % | 0.74 | % | 1.17 | % | 1.03 | % | 2.58 | % | 0.62 | % | 2.67 | % | 0.91 | % | ||||||||||||||||
Net interest margin
|
0.83 | % | 1.39 | % | 2.21 | % | 1.62 | % | 5.88 | % | 3.03 | % | 5.15 | % | 1.76 | % | ||||||||||||||||
Efficiency ratio
|
5 | % | 6 | % | 35 | % | 57 | % | 18 | % | 76 | % | 15 | % | 30 | % | ||||||||||||||||
Average FTE
|
6 | 14 | 76 | 416 | 111 | 27 | — | 650 | ||||||||||||||||||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||||||||||
Net interest income
|
$ | 8,217 | $ | 19,559 | $ | 8,724 | $ | 10,781 | $ | 11,779 | $ | 253 | $ | 763 | $ | 60,076 | ||||||||||||||||
Provision for loan losses
|
— | (1,800 | ) | — | (1,197 | ) | — | (31 | ) | (500 | ) | (3,528 | ) | |||||||||||||||||||
Gain (loss) on sale of loans
|
— | 4,023 | 870 | 9,565 | — | — | — | 14,458 | ||||||||||||||||||||||||
Service fee income
|
— | 344 | 1,223 | — | 1 | — | — | 1,568 | ||||||||||||||||||||||||
Gain (loss) on securities
|
— | — | (654 | ) | 1,066 | — | — | — | 412 | |||||||||||||||||||||||
Other income
|
— | — | 2,527 | 5,895 | 314 | 145 | (1 | ) | 8,880 | |||||||||||||||||||||||
Net revenues (expense)
|
8,217 | 22,126 | 12,690 | 26,110 | 12,094 | 367 | 262 | 81,866 | ||||||||||||||||||||||||
Operating expenses
|
279 | 876 | 4,059 | 16,563 | 4,866 | 595 | 222 | 27,460 | ||||||||||||||||||||||||
Deferral of expenses under
SFAS 91
|
— | — | (548 | ) | (3,172 | ) | (1,776 | ) | — | — | (5,496 | ) | ||||||||||||||||||||
Pretax income (loss)
|
7,938 | 21,250 | 9,179 | 12,719 | 9,004 | (228 | ) | 40 | 59,902 | |||||||||||||||||||||||
Net income (loss)
|
$ | 4,802 | $ | 12,856 | $ | 5,553 | $ | 7,695 | $ | 5,447 | $ | (138 | ) | $ | 24 | $ | 36,239 | |||||||||||||||
Relevant Financial and
Performance Data
|
||||||||||||||||||||||||||||||||
Average interest-earning assets
|
$ | 2,189,352 | $ | 5,075,925 | $ | 1,686,216 | $ | 2,198,570 | $ | 850,653 | $ | 33,155 | $ | 48,233 | $ | 12,082,104 | ||||||||||||||||
Allocated capital
|
39,787 | 208,202 | 98,744 | 106,799 | 84,970 | 3,301 | 4,291 | 546,094 | ||||||||||||||||||||||||
Loans produced
|
— | — | 57,561 | 816,358 | 538,911 | — | — | 1,412,830 | ||||||||||||||||||||||||
Loans sold
|
— | 298,618 | 169,791 | 651,624 | — | — | — | 1,120,033 | ||||||||||||||||||||||||
ROE
|
48 | % | 24 | % | 22 | % | 29 | % | 25 | % | (17 | )% | 2 | % | 26 | % | ||||||||||||||||
ROA
|
0.87 | % | 1.00 | % | 1.28 | % | 1.38 | % | 2.57 | % | (1.64 | )% | 0.23 | % | 1.19 | % | ||||||||||||||||
Net interest margin
|
1.49 | % | 1.53 | % | 2.05 | % | 1.95 | % | 5.49 | % | 3.03 | % | 6.28 | % | 1.97 | % | ||||||||||||||||
Efficiency ratio
|
3 | % | 4 | % | 28 | % | 49 | % | 26 | % | 149 | % | 29 | % | 26 | % | ||||||||||||||||
Average FTE
|
6 | 11 | 37 | 421 | 97 | 19 | 10 | 601 |
11
Eliminations | ||||||||||||||||||||||||
Interdivision |
MSR Economic |
|||||||||||||||||||||||
Deposits | Treasury | Loan Sales | Value | Other | Total | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Three months ended
September 30, 2006
|
||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||
Net interest income
|
$ | — | $ | 18 | $ | 8,290 | $ | — | $ | 4,832 | $ | 13,140 | ||||||||||||
Provision for loan losses
|
— | — | — | — | — | — | ||||||||||||||||||
Gain (loss) on sale of loans
|
— | — | (22,996 | ) | — | — | (22,996 | ) | ||||||||||||||||
Service fee income
|
— | — | 422 | — | — | 422 | ||||||||||||||||||
Gain (loss) on securities
|
— | — | 1,370 | — | — | 1,370 | ||||||||||||||||||
Other income
|
896 | 150 | — | — | (1,656 | ) | (610 | ) | ||||||||||||||||
Net revenues (expense)
|
896 | 168 | (12,914 | ) | — | 3,176 | (8,674 | ) | ||||||||||||||||
Operating expenses
|
7,173 | 2,227 | — | — | 3,537 | 12,937 | ||||||||||||||||||
Deferral of expenses under
SFAS 91
|
— | — | — | — | (718 | ) | (718 | ) | ||||||||||||||||
Pretax income (loss)
|
(6,277 | ) | (2,059 | ) | (12,914 | ) | — | 357 | (20,893 | ) | ||||||||||||||
Net income (loss)
|
$ | (3,798 | ) | $ | (1,246 | ) | $ | (7,813 | ) | $ | — | $ | 216 | $ | (12,641 | ) | ||||||||
Relevant Financial and
Performance Data
|
||||||||||||||||||||||||
Average interest-earning assets
|
$ | 172 | $ | — | $ | (93,793 | ) | $ | — | $ | — | $ | (93,621 | ) | ||||||||||
Allocated capital
|
1,939 | — | — | — | — | 1,939 | ||||||||||||||||||
Loans produced
|
— | — | — | — | — | — | ||||||||||||||||||
Loans sold
|
N/A | N/A | (2,990,126 | ) | N/A | N/A | (2,990,126 | ) | ||||||||||||||||
ROE
|
N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
ROA
|
N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Net interest margin
|
N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Efficiency ratio
|
N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Average FTE
|
277 | 47 | — | — | — | 324 | ||||||||||||||||||
Three months ended
September 30, 2005
|
||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||
Net interest income
|
$ | — | $ | 810 | $ | 5,355 | $ | — | $ | 4,003 | $ | 10,168 | ||||||||||||
Provision for loan losses
|
— | — | — | — | — | — | ||||||||||||||||||
Gain (loss) on sale of loans
|
— | — | (10,055 | ) | — | 1,800 | (8,255 | ) | ||||||||||||||||
Service fee income
|
— | — | 1,966 | (2,410 | ) | — | (444 | ) | ||||||||||||||||
Gain (loss) on securities
|
— | — | 706 | — | — | 706 | ||||||||||||||||||
Other income
|
679 | 156 | — | — | (643 | ) | 192 | |||||||||||||||||
Net revenues (expense)
|
679 | 966 | (2,028 | ) | (2,410 | ) | 5,160 | 2,367 | ||||||||||||||||
Operating expenses
|
3,559 | 1,687 | — | — | 4,465 | 9,711 | ||||||||||||||||||
Deferral of expenses under
SFAS 91
|
— | — | — | — | (707 | ) | (707 | ) | ||||||||||||||||
Pretax income (loss)
|
(2,880 | ) | (721 | ) | (2,028 | ) | (2,410 | ) | 1,402 | (6,637 | ) | |||||||||||||
Net income (loss)
|
$ | (1,742 | ) | $ | (436 | ) | $ | (1,227 | ) | $ | (1,458 | ) | $ | 848 | $ | (4,015 | ) | |||||||
Relevant Financial and
Performance Data
|
||||||||||||||||||||||||
Average interest-earning assets
|
$ | 175 | $ | — | $ | (88,237 | ) | $ | — | $ | — | $ | (88,062 | ) | ||||||||||
Allocated capital
|
1,440 | — | — | — | — | 1,440 | ||||||||||||||||||
Loans produced
|
— | — | — | — | — | — | ||||||||||||||||||
Loans sold
|
N/A | N/A | (1,959,806 | ) | N/A | N/A | (1,959,806 | ) | ||||||||||||||||
ROE
|
N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
ROA
|
N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Net interest margin
|
N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Efficiency ratio
|
N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Average FTE
|
211 | 36 | — | — | — | 247 |
12
13
Home |
||||||||||||||||||||||||||||
Standard |
Specialty |
Loans & |
Specialty |
|||||||||||||||||||||||||
Consumer |
Consumer |
Related |
Commercial |
Total |
||||||||||||||||||||||||
Home Loans | Home Loans | Investments | Loans | Treasury | Overhead | Company | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||||||
Net interest income
|
$ | 30,746 | $ | 38,672 | $ | 44,141 | $ | 20,768 | $ | 18 | $ | 2,366 | $ | 136,711 | ||||||||||||||
Provision for loan losses
|
— | (566 | ) | (2,000 | ) | (2,422 | ) | — | — | (4,988 | ) | |||||||||||||||||
Gain (loss) on sale of loans
|
87,979 | 62,106 | 10,140 | — | — | — | 160,225 | |||||||||||||||||||||
Service fee income
|
— | 6,965 | 13,572 | — | — | 521 | 21,058 | |||||||||||||||||||||
Gain (loss) on securities
|
— | (3,945 | ) | 22,913 | — | — | — | 18,968 | ||||||||||||||||||||
Other income
|
— | 8,379 | 1,760 | 2,332 | 150 | 979 | 13,600 | |||||||||||||||||||||
Net revenue (expense)
|
118,725 | 111,611 | 90,526 | 20,678 | 168 | 3,866 | 345,574 | |||||||||||||||||||||
Variable expenses
|
57,213 | 42,428 | 4,098 | 2,225 | — | — | 105,964 | |||||||||||||||||||||
Deferral of expenses under
SFAS 91
|
(44,393 | ) | (18,371 | ) | (1,538 | ) | (1,896 | ) | — | — | (66,198 | ) | ||||||||||||||||
Fixed expenses
|
48,004 | 25,262 | 14,013 | 5,110 | 2,227 | 68,746 | 163,362 | |||||||||||||||||||||
Pretax income (loss)
|
57,901 | 62,292 | 73,953 | 15,239 | (2,059 | ) | (64,880 | ) | 142,446 | |||||||||||||||||||
Net income (loss)
|
$ | 35,030 | $ | 37,640 | $ | 44,742 | $ | 9,219 | $ | (1,246 | ) | $ | (39,205 | ) | $ | 86,180 | ||||||||||||
Balance Sheet Data
|
||||||||||||||||||||||||||||
Average interest-earning assets
|
$ | 7,762,761 | $ | 5,737,934 | $ | 10,237,788 | $ | 1,498,138 | $ | — | $ | 270,396 | $ | 25,507,017 | ||||||||||||||
Allocated capital
|
$ | 346,735 | $ | 386,649 | $ | 641,818 | $ | 138,726 | $ | — | $ | 357,451 | $ | 1,871,379 | ||||||||||||||
Performance Ratios
|
||||||||||||||||||||||||||||
ROE
|
40 | % | 39 | % | 28 | % | 26 | % | N/A | N/A | 18 | % | ||||||||||||||||
Net interest margin
|
1.57 | % | 2.67 | % | 1.71 | % | 5.50 | % | N/A | N/A | 2.13 | % | ||||||||||||||||
MBR margin
|
0.76 | % | 2.27 | % | 1.55 | % | N/A | N/A | N/A | 1.03 | % | |||||||||||||||||
Efficiency ratio
|
51 | % | 44 | % | 18 | % | 24 | % | N/A | N/A | 58 | % | ||||||||||||||||
Operating Data
|
||||||||||||||||||||||||||||
Loan production
|
$ | 19,032,639 | $ | 4,278,249 | $ | 606,713 | $ | 521,575 | $ | — | $ | — | $ | 24,439,176 | ||||||||||||||
Loans sold
|
$ | 15,612,563 | $ | 3,241,590 | $ | 654,023 | $ | — | $ | — | $ | — | $ | 19,508,176 |
14
Home |
||||||||||||||||||||||||||||
Standard |
Specialty |
Loans & |
Specialty |
|||||||||||||||||||||||||
Consumer |
Consumer |
Related |
Commercial |
Total |
||||||||||||||||||||||||
Home Loans | Home Loans | Investments | Loans | Treasury | Overhead | Company | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||||||||||||||
Operating Results
|
||||||||||||||||||||||||||||
Net interest income
|
$ | 28,211 | $ | 28,153 | $ | 40,778 | $ | 14,905 | $ | 810 | $ | (38 | ) | $ | 112,819 | |||||||||||||
Provision for loan losses
|
— | (1,546 | ) | (1,800 | ) | (182 | ) | — | — | (3,528 | ) | |||||||||||||||||
Gain (loss) on sale of loans
|
103,657 | 35,608 | 11,821 | — | — | — | 151,086 | |||||||||||||||||||||
Service fee income
|
— | 4,607 | 8,106 | 1 | — | (2,410 | ) | 10,304 | ||||||||||||||||||||
Gain (loss) on securities
|
— | 412 | 316 | — | — | — | 728 | |||||||||||||||||||||
Other income
|
— | 7,819 | 731 | 1,087 | 156 | 1,492 | 11,285 | |||||||||||||||||||||
Net revenue (expense)
|
131,868 | 75,053 | 59,952 | 15,811 | 966 | (956 | ) | 282,694 | ||||||||||||||||||||
Variable expenses
|
58,609 | 33,506 | 1,019 | 4,756 | — | — | 97,890 | |||||||||||||||||||||
Deferral of expenses under
SFAS 91
|
(43,060 | ) | (15,033 | ) | (708 | ) | (1,988 | ) | — | — | (60,789 | ) | ||||||||||||||||
Fixed expenses
|
35,137 | 14,684 | 9,482 | 2,276 | 1,687 | 54,055 | 117,321 | |||||||||||||||||||||
Pretax income (loss)
|
81,182 | 41,896 | 50,159 | 10,767 | (721 | ) | (55,011 | ) | 128,272 | |||||||||||||||||||
Net income (loss)
|
$ | 49,115 | $ | 25,275 | $ | 30,345 | $ | 6,514 | $ | (436 | ) | $ | (33,287 | ) | $ | 77,526 | ||||||||||||
Balance Sheet Data
|
||||||||||||||||||||||||||||
Average interest-earning assets
|
$ | 7,201,582 | $ | 4,277,106 | $ | 7,762,950 | $ | 1,077,261 | $ | — | $ | 802,641 | $ | 21,121,540 | ||||||||||||||
Allocated capital
|
$ | 315,106 | $ | 243,051 | $ | 436,624 | $ | 103,738 | $ | — | $ | 316,842 | $ | 1,415,361 | ||||||||||||||
Performance Ratios
|
||||||||||||||||||||||||||||
ROE
|
62 | % | 41 | % | 28 | % | 25 | % | N/A | N/A | 22 | % | ||||||||||||||||
Net interest margin
|
1.55 | % | 2.61 | % | 2.08 | % | 5.49 | % | N/A | N/A | 2.12 | % | ||||||||||||||||
MBR margin
|
1.01 | % | 2.46 | % | 2.13 | % | N/A | N/A | N/A | 1.22 | % | |||||||||||||||||
Efficiency ratio
|
38 | % | 43 | % | 16 | % | 32 | % | N/A | N/A | 54 | % | ||||||||||||||||
Operating Data
|
||||||||||||||||||||||||||||
Loan production
|
$ | 13,283,041 | $ | 3,295,823 | $ | 274,372 | $ | 635,830 | $ | — | $ | — | $ | 17,489,066 | ||||||||||||||
Loans sold
|
$ | 13,118,592 | $ | 1,800,253 | $ | 620,364 | $ | — | $ | — | $ | — | $ | 15,539,209 |
15
Standard Consumer Home Loans Held for Sale | ||||||||||||||||
Agency |
||||||||||||||||
Conforming | Alt-A | Subprime | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||
Operating Results
|
||||||||||||||||
Net interest income
|
$ | 393 | $ | 21,316 | $ | 9,037 | $ | 30,746 | ||||||||
Provision for loan losses
|
— | — | — | — | ||||||||||||
Gain (loss) on sale of loans
|
333 | 82,500 | 5,146 | 87,979 | ||||||||||||
Service fee income
|
— | — | — | — | ||||||||||||
Gain (loss) on securities
|
— | — | — | — | ||||||||||||
Other income
|
— | — | — | — | ||||||||||||
Net revenues (expense)
|
726 | 103,816 | 14,183 | 118,725 | ||||||||||||
Variable expenses
|
1,593 | 48,241 | 7,379 | 57,213 | ||||||||||||
Deferral of expenses under
SFAS 91
|
(1,236 | ) | (37,431 | ) | (5,726 | ) | (44,393 | ) | ||||||||
Fixed expenses
|
1,202 | 42,350 | 4,452 | 48,004 | ||||||||||||
Pretax income (loss)
|
(833 | ) | 50,656 | 8,078 | 57,901 | |||||||||||
Net income (loss)
|
$ | (504 | ) | $ | 30,647 | $ | 4,887 | $ | 35,030 | |||||||
Balance Sheet Data
|
||||||||||||||||
Average interest-earning assets
|
$ | 102,987 | $ | 6,221,229 | $ | 1,438,545 | $ | 7,762,761 | ||||||||
Allocated capital
|
$ | 4,186 | $ | 255,304 | $ | 87,245 | $ | 346,735 | ||||||||
Performance Ratios
|
||||||||||||||||
ROE
|
(48 | )% | 48 | % | 22 | % | 40 | % | ||||||||
Net interest margin
|
1.51 | % | 1.36 | % | 2.49 | % | 1.57 | % | ||||||||
MBR margin
|
0.48 | % | 0.70 | % | 2.30 | % | 0.76 | % | ||||||||
Efficiency ratio
|
215 | % | 51 | % | 43 | % | 51 | % | ||||||||
Operating Data
|
||||||||||||||||
Loan production
|
$ | 177,832 | $ | 18,143,707 | $ | 711,100 | $ | 19,032,639 | ||||||||
Loans sold
|
$ | 150,317 | $ | 14,846,766 | $ | 615,480 | $ | 15,612,563 | ||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||
Operating Results
|
||||||||||||||||
Net interest income
|
$ | 765 | $ | 20,455 | $ | 6,991 | $ | 28,211 | ||||||||
Provision for loan losses
|
— | — | — | — | ||||||||||||
Gain (loss) on sale of loans
|
1,572 | 95,868 | 6,217 | 103,657 | ||||||||||||
Service fee income
|
— | — | — | — | ||||||||||||
Gain (loss) on securities
|
— | — | — | — | ||||||||||||
Other income
|
— | — | — | — | ||||||||||||
Net revenues (expense)
|
2,337 | 116,323 | 13,208 | 131,868 | ||||||||||||
Variable expenses
|
2,957 | 48,422 | 7,230 | 58,609 | ||||||||||||
Deferral of expenses under
SFAS 91
|
(2,171 | ) | (35,638 | ) | (5,251 | ) | (43,060 | ) | ||||||||
Fixed expenses
|
1,427 | 29,827 | 3,883 | 35,137 | ||||||||||||
Pretax income (loss)
|
124 | 73,712 | 7,346 | 81,182 | ||||||||||||
Net income (loss)
|
$ | 75 | $ | 44,596 | $ | 4,444 | $ | 49,115 | ||||||||
16
Standard Consumer Home Loans Held for Sale | ||||||||||||||||
Agency |
||||||||||||||||
Conforming | Alt-A | Subprime | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance Sheet Data
|
||||||||||||||||
Average interest-earning assets
|
$ | 149,465 | $ | 6,175,572 | $ | 876,545 | $ | 7,201,582 | ||||||||
Allocated capital
|
$ | 6,413 | $ | 263,788 | $ | 44,905 | $ | 315,106 | ||||||||
Performance Ratios
|
||||||||||||||||
ROE
|
5 | % | 67 | % | 39 | % | 62 | % | ||||||||
Net interest margin
|
2.03 | % | 1.31 | % | 3.16 | % | 1.55 | % | ||||||||
MBR margin
|
0.76 | % | 0.95 | % | 2.56 | % | 1.01 | % | ||||||||
Efficiency ratio
|
95 | % | 37 | % | 44 | % | 38 | % | ||||||||
Operating Data
|
||||||||||||||||
Loan production
|
$ | 276,263 | $ | 12,373,817 | $ | 632,961 | $ | 13,283,041 | ||||||||
Loans sold
|
$ | 308,799 | $ | 12,294,644 | $ | 515,149 | $ | 13,118,592 |
Specialty Consumer Home Loans Held for Sale and/or Investment | ||||||||||||||||||||
HELOCs/ |
Reverse |
|||||||||||||||||||
Seconds | Mortgages | CTP/Lot | Discontinued | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||||||
Operating Results
|
||||||||||||||||||||
Net interest income
|
$ | 23,771 | $ | 2,868 | $ | 11,524 | $ | 509 | $ | 38,672 | ||||||||||
Provision for loan losses
|
— | — | (516 | ) | (50 | ) | (566 | ) | ||||||||||||
Gain (loss) on sale of loans
|
3,885 | 45,548 | 12,673 | — | 62,106 | |||||||||||||||
Service fee income
|
1,366 | 5,599 | — | — | 6,965 | |||||||||||||||
Gain (loss) on securities
|
(3,898 | ) | — | (47 | ) | — | (3,945 | ) | ||||||||||||
Other income
|
2,700 | 187 | 5,492 | — | 8,379 | |||||||||||||||
Net revenues (expense)
|
27,824 | 54,202 | 29,126 | 459 | 111,611 | |||||||||||||||
Variable expenses
|
13,444 | 20,319 | 8,665 | — | 42,428 | |||||||||||||||
Deferral of expenses under
SFAS 91
|
(8,544 | ) | (7,592 | ) | (2,235 | ) | — | (18,371 | ) | |||||||||||
Fixed expenses
|
2,964 | 14,486 | 7,735 | 77 | 25,262 | |||||||||||||||
Pretax income (loss)
|
19,960 | 26,989 | 14,961 | 382 | 62,292 | |||||||||||||||
Net income (loss)
|
$ | 12,076 | $ | 16,282 | $ | 9,051 | $ | 231 | $ | 37,640 | ||||||||||
Balance Sheet Data
|
||||||||||||||||||||
Average interest-earning assets
|
$ | 2,589,343 | $ | 801,629 | $ | 2,307,726 | $ | 39,236 | $ | 5,737,934 | ||||||||||
Allocated capital
|
$ | 237,260 | $ | 34,404 | $ | 111,441 | $ | 3,544 | $ | 386,649 | ||||||||||
Performance Ratios
|
||||||||||||||||||||
ROE
|
20 | % | 188 | % | 32 | % | 26 | % | 39 | % | ||||||||||
Net interest margin
|
3.64 | % | 1.42 | % | 1.98 | % | 5.15 | % | 2.67 | % | ||||||||||
MBR margin
|
0.83 | % | 4.52 | % | 1.96 | % | N/A | 2.27 | % | |||||||||||
Efficiency ratio
|
28 | % | 50 | % | 48 | % | 15 | % | 44 | % | ||||||||||
Operating Data
|
||||||||||||||||||||
Loan production
|
$ | 1,839,049 | $ | 1,128,203 | $ | 1,310,997 | $ | — | $ | 4,278,249 | ||||||||||
Loans sold
|
$ | 1,523,333 | $ | 1,071,652 | $ | 646,605 | $ | — | $ | 3,241,590 |
17
Specialty Consumer Home Loans Held for Sale and/or Investment | ||||||||||||||||||||
HELOCs/ |
Reverse |
|||||||||||||||||||
Seconds | Mortgages | CTP/Lot | Discontinued | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||||||
Operating Results
|
||||||||||||||||||||
Net interest income
|
$ | 15,798 | $ | 734 | $ | 10,858 | $ | 763 | $ | 28,153 | ||||||||||
Provision for loan losses
|
— | — | (1,046 | ) | (500 | ) | (1,546 | ) | ||||||||||||
Gain (loss) on sale of loans
|
3,597 | 21,856 | 10,155 | — | 35,608 | |||||||||||||||
Service fee income
|
1,223 | 3,384 | — | — | 4,607 | |||||||||||||||
Gain (loss) on securities
|
(654 | ) | — | 1,066 | — | 412 | ||||||||||||||
Other income
|
2,527 | 26 | 5,267 | (1 | ) | 7,819 | ||||||||||||||
Net revenues (expense)
|
22,491 | 26,000 | 26,300 | 262 | 75,053 | |||||||||||||||
Variable expenses
|
11,244 | 14,236 | 8,026 | — | 33,506 | |||||||||||||||
Deferral of expenses under
SFAS 91
|
(5,694 | ) | (6,379 | ) | (2,960 | ) | — | (15,033 | ) | |||||||||||
Fixed expenses
|
1,008 | 6,488 | 6,966 | 222 | 14,684 | |||||||||||||||
Pretax income (loss)
|
15,933 | 11,655 | 14,268 | 40 | 41,896 | |||||||||||||||
Net income (loss)
|
$ | 9,639 | $ | 6,980 | $ | 8,632 | $ | 24 | $ | 25,275 | ||||||||||
Balance Sheet Data
|
||||||||||||||||||||
Average interest-earning assets
|
$ | 2,078,870 | $ | 153,529 | $ | 1,996,474 | $ | 48,233 | $ | 4,277,106 | ||||||||||
Allocated capital
|
$ | 131,635 | $ | 16,657 | $ | 90,468 | $ | 4,291 | $ | 243,051 | ||||||||||
Performance Ratios
|
||||||||||||||||||||
ROE
|
29 | % | 166 | % | 38 | % | 2 | % | 41 | % | ||||||||||
Net interest margin
|
3.01 | % | 1.90 | % | 2.16 | % | 6.28 | % | 2.61 | % | ||||||||||
MBR margin
|
2.54 | % | 2.90 | % | 1.90 | % | N/A | 2.46 | % | |||||||||||
Efficiency ratio
|
29 | % | 55 | % | 44 | % | 29 | % | 43 | % | ||||||||||
Operating Data
|
||||||||||||||||||||
Loan production
|
$ | 1,106,109 | $ | 834,613 | $ | 1,355,101 | $ | — | $ | 3,295,823 | ||||||||||
Loans sold
|
$ | 368,622 | $ | 780,007 | $ | 651,624 | $ | — | $ | 1,800,253 |
18
Home Loans and Related Investments | ||||||||||||||||
Retained Assets |
SFR Loans |
|||||||||||||||
and Retention |
Held for |
|||||||||||||||
Activities | MBS | Investment | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||
Operating Results
|
||||||||||||||||
Net interest income
|
$ | 14,803 | $ | 7,418 | $ | 21,920 | $ | 44,141 | ||||||||
Provision for loan losses
|
— | — | (2,000 | ) | (2,000 | ) | ||||||||||
Gain (loss) on sale of loans
|
9,392 | — | 748 | 10,140 | ||||||||||||
Service fee income
|
13,572 | — | — | 13,572 | ||||||||||||
Gain (loss) on securities
|
23,406 | (493 | ) | — | 22,913 | |||||||||||
Other income
|
1,345 | (14 | ) | 429 | 1,760 | |||||||||||
Net revenues (expense)
|
62,518 | 6,911 | 21,097 | 90,526 | ||||||||||||
Variable expenses
|
4,098 | — | — | 4,098 | ||||||||||||
Deferral of expenses under
SFAS 91
|
(1,538 | ) | — | — | (1,538 | ) | ||||||||||
Fixed expenses
|
12,333 | 315 | 1,365 | 14,013 | ||||||||||||
Pretax income (loss)
|
47,625 | 6,596 | 19,732 | 73,953 | ||||||||||||
Net income (loss)
|
$ | 28,813 | $ | 3,991 | $ | 11,938 | $ | 44,742 | ||||||||
Balance Sheet Data
|
||||||||||||||||
Average interest-earning assets
|
$ | 878,038 | $ | 3,527,766 | $ | 5,831,984 | $ | 10,237,788 | ||||||||
Allocated capital
|
$ | 360,151 | $ | 61,628 | $ | 220,039 | $ | 641,818 | ||||||||
Performance Ratios
|
||||||||||||||||
ROE
|
32 | % | 26 | % | 22 | % | 28 | % | ||||||||
Net interest margin
|
6.69 | % | 0.83 | % | 1.49 | % | 1.71 | % | ||||||||
MBR margin
|
1.44 | % | N/A | N/A | 1.55 | % | ||||||||||
Efficiency ratio
|
24 | % | 5 | % | 6 | % | 18 | % | ||||||||
Operating Data
|
||||||||||||||||
Loan production
|
$ | 606,713 | $ | — | $ | — | $ | 606,713 | ||||||||
Loans sold
|
$ | 654,023 | $ | — | $ | — | $ | 654,023 |
19
Home Loans and Related Investments | ||||||||||||||||
Retained Assets |
SFR Loans |
|||||||||||||||
and Retention |
Held for |
|||||||||||||||
Activities | MBS | Investment | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||
Operating Results
|
||||||||||||||||
Net interest income
|
$ | 11,242 | $ | 8,217 | $ | 21,319 | $ | 40,778 | ||||||||
Provision for loan losses
|
— | — | (1,800 | ) | (1,800 | ) | ||||||||||
Gain (loss) on sale of loans
|
7,604 | — | 4,217 | 11,821 | ||||||||||||
Service fee income
|
7,762 | — | 344 | 8,106 | ||||||||||||
Gain (loss) on securities
|
316 | — | — | 316 | ||||||||||||
Other income
|
731 | — | — | 731 | ||||||||||||
Net revenues (expense)
|
27,655 | 8,217 | 24,080 | 59,952 | ||||||||||||
Variable expenses
|
1,019 | — | — | 1,019 | ||||||||||||
Deferral of expenses under
SFAS 91
|
(708 | ) | — | — | (708 | ) | ||||||||||
Fixed expenses
|
8,327 | 279 | 876 | 9,482 | ||||||||||||
Pretax income (loss)
|
19,017 | 7,938 | 23,204 | 50,159 | ||||||||||||
Net income (loss)
|
$ | 11,505 | $ | 4,802 | $ | 14,038 | $ | 30,345 | ||||||||
Balance Sheet Data
|
||||||||||||||||
Average interest-earning assets
|
$ | 519,850 | $ | 2,189,352 | $ | 5,053,748 | $ | 7,762,950 | ||||||||
Allocated capital
|
$ | 189,744 | $ | 39,787 | $ | 207,093 | $ | 436,624 | ||||||||
Performance Ratios
|
||||||||||||||||
ROE
|
24 | % | 48 | % | 27 | % | 28 | % | ||||||||
Net interest margin
|
8.58 | % | 1.49 | % | 1.67 | % | 2.08 | % | ||||||||
MBR margin
|
2.79 | % | N/A | N/A | 2.13 | % | ||||||||||
Efficiency ratio
|
31 | % | 3 | % | 3 | % | 16 | % | ||||||||
Operating Data
|
||||||||||||||||
Loan production
|
$ | 274,372 | $ | — | $ | — | $ | 274,372 | ||||||||
Loans sold
|
$ | 321,746 | $ | — | $ | 298,618 | $ | 620,364 |
20
Specialty Commercial Loans Held for Investment | ||||||||||||||||
Single |
Warehouse |
|||||||||||||||
Spec | Subdivision | Lending | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||
Operating Results
|
||||||||||||||||
Net interest income
|
$ | 3,245 | $ | 16,488 | $ | 1,035 | $ | 20,768 | ||||||||
Provision for loan losses
|
(204 | ) | (2,200 | ) | (18 | ) | (2,422 | ) | ||||||||
Gain (loss) on sale of loans
|
— | — | — | — | ||||||||||||
Service fee income
|
— | — | — | — | ||||||||||||
Gain (loss) on securities
|
— | — | — | — | ||||||||||||
Other income
|
1,163 | 703 | 466 | 2,332 | ||||||||||||
Net revenues (expense)
|
4,204 | 14,991 | 1,483 | 20,678 | ||||||||||||
Variable expenses
|
709 | 1,516 | — | 2,225 | ||||||||||||
Deferral of expenses under
SFAS 91
|
(86 | ) | (1,810 | ) | — | (1,896 | ) | |||||||||
Fixed expenses
|
581 | 3,395 | 1,134 | 5,110 | ||||||||||||
Pretax income (loss)
|
3,000 | 11,890 | 349 | 15,239 | ||||||||||||
Net income (loss)
|
$ | 1,815 | $ | 7,193 | $ | 211 | $ | 9,219 | ||||||||
Balance Sheet Data
|
||||||||||||||||
Average interest-earning assets
|
$ | 250,289 | $ | 1,112,338 | $ | 135,511 | $ | 1,498,138 | ||||||||
Allocated capital
|
$ | 18,735 | $ | 108,408 | $ | 11,583 | $ | 138,726 | ||||||||
Performance Ratios
|
||||||||||||||||
ROE
|
38 | % | 26 | % | N/A | 26 | % | |||||||||
Net interest margin
|
5.14 | % | 5.88 | % | N/A | 5.50 | % | |||||||||
Efficiency ratio
|
27 | % | 18 | % | N/A | 24 | % | |||||||||
Operating Data
|
||||||||||||||||
Loan production
|
$ | 50,425 | $ | 471,150 | $ | — | $ | 521,575 | ||||||||
Loans sold
|
$ | — | $ | — | $ | — | $ | — | ||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||
Operating Results
|
||||||||||||||||
Net interest income
|
$ | 2,873 | $ | 11,779 | $ | 253 | $ | 14,905 | ||||||||
Provision for loan losses
|
(151 | ) | — | (31 | ) | (182 | ) | |||||||||
Gain (loss) on sale of loans
|
— | — | — | — | ||||||||||||
Service fee income
|
— | 1 | — | 1 | ||||||||||||
Gain (loss) on securities
|
— | — | — | — | ||||||||||||
Other income
|
628 | 314 | 145 | 1,087 | ||||||||||||
Net revenues (expense)
|
3,350 | 12,094 | 367 | 15,811 | ||||||||||||
Variable expenses
|
887 | 3,869 | — | 4,756 | ||||||||||||
Deferral of expenses under
SFAS 91
|
(212 | ) | (1,776 | ) | — | (1,988 | ) | |||||||||
Fixed expenses
|
684 | 997 | 595 | 2,276 | ||||||||||||
Pretax income (loss)
|
1,991 | 9,004 | (228 | ) | 10,767 | |||||||||||
Net income (loss)
|
$ | 1,205 | $ | 5,447 | $ | (138 | ) | $ | 6,514 | |||||||
21
Specialty Commercial Loans Held for Investment | ||||||||||||||||
Single |
Warehouse |
|||||||||||||||
Spec | Subdivision | Lending | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance Sheet Data
|
||||||||||||||||
Average interest-earning assets
|
$ | 193,453 | $ | 850,653 | $ | 33,155 | $ | 1,077,261 | ||||||||
Allocated capital
|
$ | 15,467 | $ | 84,970 | $ | 3,301 | $ | 103,738 | ||||||||
Performance Ratios
|
||||||||||||||||
ROE
|
31 | % | 25 | % | N/A | 25 | % | |||||||||
Net interest margin
|
5.89 | % | 5.49 | % | N/A | 5.49 | % | |||||||||
Efficiency ratio
|
39 | % | 26 | % | N/A | 32 | % | |||||||||
Operating Data
|
||||||||||||||||
Loan production
|
$ | 96,919 | $ | 538,911 | $ | — | $ | 635,830 | ||||||||
Loans sold
|
$ | — | $ | — | $ | — | $ | — |
Total |
||||||||||||||||||||
Servicing OH | MB OH | Deposit OH | Corporate OH | Overhead | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended
September 30, 2006
|
||||||||||||||||||||
Operating Results
|
||||||||||||||||||||
Net interest income
|
$ | (115 | ) | $ | (73 | ) | $ | 3,954 | $ | (1,400 | ) | $ | 2,366 | |||||||
Provision for loan losses
|
— | — | — | — | — | |||||||||||||||
Gain (loss) on sale of loans
|
— | — | — | — | — | |||||||||||||||
Service fee income
|
— | — | — | 521 | 521 | |||||||||||||||
Gain (loss) on securities
|
— | — | — | — | — | |||||||||||||||
Other income
|
730 | 116 | 896 | (763 | ) | 979 | ||||||||||||||
Net revenues (expense)
|
615 | 43 | 4,850 | (1,642 | ) | 3,866 | ||||||||||||||
Variable expenses
|
— | — | — | — | — | |||||||||||||||
Deferral of expenses under
SFAS 91
|
— | — | — | — | — | |||||||||||||||
Fixed expenses
|
5,104 | 10,263 | 11,127 | 42,252 | 68,746 | |||||||||||||||
Pretax income (loss)
|
(4,489 | ) | (10,220 | ) | (6,277 | ) | (43,894 | ) | (64,880 | ) | ||||||||||
Net income (loss)
|
$ | (2,716 | ) | $ | (6,183 | ) | $ | (3,798 | ) | $ | (26,508 | ) | $ | (39,205 | ) | |||||
Balance Sheet Data
|
||||||||||||||||||||
Average interest-earning assets
|
$ | — | $ | 41 | $ | 172 | $ | 270,183 | $ | 270,396 | ||||||||||
Allocated capital
|
$ | 177 | $ | 10,500 | $ | 1,939 | $ | 344,835 | $ | 357,451 | ||||||||||
Performance Ratios
|
||||||||||||||||||||
ROE
|
N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Net interest margin
|
N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Efficiency ratio
|
N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Operating Data
|
||||||||||||||||||||
Loan production
|
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Loans sold
|
$ | — | $ | — | $ | — | $ | — | $ | — |
22
Total |
||||||||||||||||||||
Servicing OH | MB OH | Deposit OH | Corporate OH | Overhead | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three Months Ended
September 30, 2005
|
||||||||||||||||||||
Operating Results
|
||||||||||||||||||||
Net interest income
|
$ | (55 | ) | $ | 50 | $ | 3,729 | $ | (3,762 | ) | $ | (38 | ) | |||||||
Provision for loan losses
|
— | — | — | — | — | |||||||||||||||
Gain (loss) on sale of loans
|
— | — | — | — | — | |||||||||||||||
Service fee income
|
— | — | — | (2,410 | ) | (2,410 | ) | |||||||||||||
Gain (loss) on securities
|
— | — | — | — | — | |||||||||||||||
Other income
|
634 | (12 | ) | 679 | 191 | 1,492 | ||||||||||||||
Net revenues (expense)
|
579 | 38 | 4,408 | (5,981 | ) | (956 | ) | |||||||||||||
Variable expenses
|
— | — | — | — | — | |||||||||||||||
Deferral of expenses under
SFAS 91
|
— | — | — | — | — | |||||||||||||||
Fixed expenses
|
3,760 | 6,970 | 7,288 | 36,037 | 54,055 | |||||||||||||||
Pretax income (loss)
|
(3,181 | ) | (6,932 | ) | (2,880 | ) | (42,018 | ) | (55,011 | ) | ||||||||||
Net income (loss)
|
$ | (1,925 | ) | $ | (4,194 | ) | $ | (1,742 | ) | $ | (25,426 | ) | $ | (33,287 | ) | |||||
Balance Sheet Data
|
||||||||||||||||||||
Average interest-earning assets
|
$ | — | $ | 51 | $ | 175 | $ | 802,415 | $ | 802,641 | ||||||||||
Allocated capital
|
$ | 3,941 | $ | 6,821 | $ | 1,440 | $ | 304,640 | $ | 316,842 | ||||||||||
Performance Ratios
|
||||||||||||||||||||
ROE
|
N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Net interest margin
|
N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Efficiency ratio
|
N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Operating Data
|
||||||||||||||||||||
Loan production
|
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Loans sold
|
$ | — | $ | — | $ | — | $ | — | $ | — |
23
As of and for the Three Months Ended | ||||||||||||||||||||
September 30, |
September 30, |
% |
June 30, |
% |
||||||||||||||||
2006 | 2005 | Change | 2006 | Change | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Production and Pipeline by
Purpose:
|
||||||||||||||||||||
Mortgage loan
production:
|
||||||||||||||||||||
Purchase transactions
|
$ | 9,682 | $ | 7,425 | 30 | % | $ | 8,284 | 17 | % | ||||||||||
Cash-out refinance transactions
|
10,656 | 7,790 | 37 | % | 9,373 | 14 | % | |||||||||||||
Rate/term refinance transactions
|
3,630 | 1,735 | 109 | % | 2,403 | 51 | % | |||||||||||||
Total mortgage loan production
|
$ | 23,968 | $ | 16,950 | 41 | % | $ | 20,060 | 19 | % | ||||||||||
% purchase and cash-out
refinance transactions
|
85 | % | 90 | % | 88 | % | ||||||||||||||
Mortgage industry market
share
|
3.87 | % | 1.95 | % | 98 | % | 2.78 | % | 39 | % | ||||||||||
Mortgage pipeline:
|
||||||||||||||||||||
Purchase transactions
|
$ | 4,595 | $ | 3,654 | 26 | % | $ | 4,459 | 3 | % | ||||||||||
Cash-out refinance transactions
|
5,210 | 3,945 | 32 | % | 4,062 | 28 | % | |||||||||||||
Rate/term refinance transactions
|
1,930 | 1,346 | 43 | % | 1,492 | 29 | % | |||||||||||||
Total specific rate locks
|
11,735 | 8,945 | 31 | % | 10,013 | 17 | % | |||||||||||||
Non-specific rate locks on bulk
purchases
|
2,821 | 1,388 | 103 | % | 2,514 | 12 | % | |||||||||||||
Total pipeline at period end
|
$ | 14,556 | $ | 10,333 | 41 | % | $ | 12,527 | 16 | % | ||||||||||
Three Months Ended | ||||||||||||
September 30, |
September 30, |
June 30, |
||||||||||
2006 | 2005 | 2006 | ||||||||||
Production by Interest Rate
Type as a Percentage of Mortgage Production:
|
||||||||||||
Fixed rate mortgages
|
20 | % | 23 | % | 20 | % | ||||||
Interest-only loans
|
39 | % | 30 | % | 37 | % | ||||||
ARMs
|
11 | % | 12 | % | 15 | % | ||||||
Intermediate term fixed rate loans
|
7 | % | 9 | % | 7 | % | ||||||
Pay option ARMS
|
23 | % | 26 | % | 21 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
24
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, |
September 30, |
% |
June 30, |
% |
September 30, |
September 30, |
% |
|||||||||||||||||||||||||
2006 | 2005 | Change | 2006 | Change | 2006 | 2005 | Change | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Production by Product
Type:
|
||||||||||||||||||||||||||||||||
Standard First Mortgage Products:
|
||||||||||||||||||||||||||||||||
Alt-A
|
$ | 19,103 | $ | 13,016 | 47 | % | $ | 15,090 | 27 | % | $ | 49,642 | $ | 33,276 | 49 | % | ||||||||||||||||
Agency conforming
|
260 | 315 | (17 | )% | 244 | 7 | % | 783 | 843 | (7 | )% | |||||||||||||||||||||
Subprime
|
729 | 639 | 14 | % | 505 | 44 | % | 1,788 | 1,576 | 13 | % | |||||||||||||||||||||
Total standard first mortgage
products (S&P evaluated)(1)
|
20,092 | 13,970 | 44 | % | 15,839 | 27 | % | 52,213 | 35,695 | 46 | % | |||||||||||||||||||||
Specialty Consumer Home Mortgage
Products:
|
||||||||||||||||||||||||||||||||
Home equity line of credit(2)
/Seconds
|
1,840 | 1,106 | 66 | % | 1,860 | (1 | )% | 5,343 | 2,420 | 121 | % | |||||||||||||||||||||
Reverse mortgages
|
1,128 | 835 | 35 | % | 1,337 | (16 | )% | 3,583 | 1,981 | 81 | % | |||||||||||||||||||||
Consumer construction(2)
|
908 | 1,039 | (13 | )% | 1,024 | (11 | )% | 2,866 | 2,655 | 8 | % | |||||||||||||||||||||
Subtotal mortgage production
|
23,968 | 16,950 | 41 | % | 20,060 | 19 | % | 64,005 | 42,751 | 50 | % | |||||||||||||||||||||
Builder construction commitments(2)
|
471 | 539 | (13 | )% | 531 | (11 | )% | 1,365 | 1,486 | (8 | )% | |||||||||||||||||||||
Total production
|
$ | 24,439 | $ | 17,489 | 40 | % | $ | 20,591 | 19 | % | $ | 65,370 | $ | 44,237 | 48 | % | ||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
September 30, 2006 | September 30, 2005 | June 30, 2006 | ||||||||||||||||||||||
Average |
Average |
Average |
||||||||||||||||||||||
Lifetime |
% of |
Lifetime |
% of |
Lifetime |
% of |
|||||||||||||||||||
Loss Rate | Total | Loss Rate | Total | Loss Rate | Total | |||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
Production by S&P Lifetime
Loss Estimate(1):
|
||||||||||||||||||||||||
Agency conforming equivalent
(<48 bps)
|
0.23 | % | 48 | % | 0.21 | % | 54 | % | 0.22 | % | 48 | % | ||||||||||||
Prime Alt-A equivalent
(48-135 bps)
|
0.76 | % | 44 | % | 0.75 | % | 40 | % | 0.76 | % | 45 | % | ||||||||||||
Subprime equivalent
(>135 bps)
|
4.82 | % | 8 | % | 4.84 | % | 6 | % | 4.16 | % | 7 | % | ||||||||||||
Total S&P lifetime loss
estimate
|
0.82 | % | 100 | % | 0.72 | % | 100 | % | 0.74 | % | 100 | % | ||||||||||||
Total S&P evaluated production
|
$ | 20,092 | $ | 13,970 | $ | 15,839 | ||||||||||||||||||
25
Three Months Ended | ||||||||||||||||||||||||||||||||||||
September 30, 2006 | September 30, 2005 | June 30, 2006 | ||||||||||||||||||||||||||||||||||
Production | FICO | CLTV(3) | Production | FICO | CLTV(3) | Production | FICO | CLTV(3) | ||||||||||||||||||||||||||||
Total production
|
$ | 24,439 | N/A | N/A | $ | 17,489 | N/A | N/A | $ | 20,591 | N/A | N/A | ||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||
Home equity line of
credit(2)/Seconds
|
1,840 | 716 | 87% | 1,106 | 704 | 88% | 1,860 | 716 | 86% | |||||||||||||||||||||||||||
Reverse mortgages
|
1,128 | N/A | 53% | 835 | N/A | 53% | 1,337 | N/A | 53% | |||||||||||||||||||||||||||
Consumer construction(2)
|
908 | 722 | 76% | 1,039 | 721 | 74% | 1,024 | 724 | 77% | |||||||||||||||||||||||||||
Builder construction commitments
|
471 | N/A | 74% | 539 | N/A | 71% | 531 | N/A | 82% | |||||||||||||||||||||||||||
Total S&P evaluated production
|
$ | 20,092 | 702 | 81% | $ | 13,970 | 703 | 77% | $ | 15,839 | 702 | 80% | ||||||||||||||||||||||||
(1) | While Indymac production is evaluated using the S&P Levels model, the data are not audited or endorsed by S&P. S&P evaluated production excludes second liens, HELOC, reverse mortgages, and construction loans. | |
(2) | Amount represents total commitments. | |
(3) | Combined loan-to-value ratio for loans in the second lien position is used to calculate weighted average original loan-to-value ratio for the portfolio. |
September 30, |
September 30, |
June 30, |
||||||||||
2006 | 2005 | 2006 | ||||||||||
Production by Geographic
Distribution:
|
||||||||||||
California
|
45 | % | 43 | % | 44 | % | ||||||
Florida
|
8 | % | 8 | % | 9 | % | ||||||
New York
|
6 | % | 6 | % | 6 | % | ||||||
Virginia
|
4 | % | 5 | % | 4 | % | ||||||
New Jersey
|
4 | % | 4 | % | 4 | % | ||||||
Other
|
33 | % | 34 | % | 33 | % | ||||||
Total
|
100 | % | 100 | % | 100 | % | ||||||
26
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, |
September 30, |
% |
June 30, |
% |
September 30, |
September 30, |
% |
|||||||||||||||||||||||||
2006 | 2005 | Change | 2006 | Change | 2006 | 2005 | Change | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Production by
Divisions:
|
||||||||||||||||||||||||||||||||
Mortgage Loan
Production:
|
||||||||||||||||||||||||||||||||
Mortgage Professionals Group
Wholesale(1)
|
$ | 9,281 | $ | 7,749 | 20 | % | $ | 8,825 | 5 | % | $ | 26,887 | $ | 20,957 | 28 | % | ||||||||||||||||
Correspondent
|
2,503 | 1,652 | 52 | % | 2,528 | (1 | )% | 7,307 | 3,965 | 84 | % | |||||||||||||||||||||
Conduit
|
9,078 | 4,718 | 92 | % | 5,471 | 66 | % | 20,685 | 10,530 | 96 | % | |||||||||||||||||||||
Consumer Direct
|
456 | 792 | (42 | )% | 552 | (17 | )% | 1,533 | 2,216 | (31 | )% | |||||||||||||||||||||
Financial Freedom
|
1,128 | 835 | 35 | % | 1,337 | (16 | )% | 3,583 | 1,981 | 81 | % | |||||||||||||||||||||
Servicing Retention
|
721 | 330 | 118 | % | 540 | 34 | % | 1,688 | 726 | 133 | % | |||||||||||||||||||||
Home Equity Division
|
30 | 58 | (48 | )% | 33 | (9 | )% | 93 | 156 | (40 | )% | |||||||||||||||||||||
Consumer Construction and Lot
|
771 | 816 | (6 | )% | 774 | 0 | % | 2,229 | 2,220 | 0 | % | |||||||||||||||||||||
Total Mortgage Loan Production
|
23,968 | 16,950 | 41 | % | 20,060 | 19 | % | 64,005 | 42,751 | 50 | % | |||||||||||||||||||||
Commercial Loan
Production:
|
||||||||||||||||||||||||||||||||
Builder Construction
|
471 | 539 | (13 | )% | 531 | (11 | )% | 1,365 | 1,486 | (8 | )% | |||||||||||||||||||||
Total Production
|
$ | 24,439 | $ | 17,489 | 40 | % | $ | 20,591 | 19 | % | $ | 65,370 | $ | 44,237 | 48 | % | ||||||||||||||||
(1) | Wholesale channel includes $898 million, $378 million, and $709 million of production from emerging bankers/brokers sales for the quarters ended September 30, 2006 and 2005 and June 30, 2006. The emerging bankers/brokers sales force focuses on small and geographically remote mortgage brokers through centralized in-house sales personnel instead of field sales personnel. |
Three Months Ended | ||||||||||||||||||||
September 30, |
September 30, |
% |
June 30, |
% |
||||||||||||||||
2006 | 2005 | Change | 2006 | Change | ||||||||||||||||
Key Production
Drivers:
|
||||||||||||||||||||
Active customers during the
quarter(1)
|
7,686 | 6,473 | 19 | % | 7,472 | 3 | % | |||||||||||||
Sales personnel
|
992 | 692 | 43 | % | 952 | 4 | % | |||||||||||||
Number of regional offices
|
16 | 11 | 45 | % | 15 | 7 | % |
(1) | Active customers are defined as customers who funded at least one loan during the most recent 90-day period. |
27
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, |
September 30, |
% |
June 30, |
% |
September 30, |
September 30, |
% |
|||||||||||||||||||||||||
2006 | 2005 | Change | 2006 | Change | 2006 | 2005 | Change | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Total loans sold
|
$ | 19,508 | $ | 15,539 | 26 | % | $ | 19,415 | 0 | % | $ | 55,632 | $ | 36,727 | 51 | % | ||||||||||||||||
Ratios:
|
||||||||||||||||||||||||||||||||
Gross MBR margin before hedging
|
1.44 | % | 0.91 | % | 57 | % | 0.99 | % | 45 | % | 1.11 | % | 1.43 | % | (22 | )% | ||||||||||||||||
Net MBR margin after hedging
|
1.03 | % | 1.22 | % | (15 | )% | 1.23 | % | (16 | )% | 1.12 | % | 1.51 | % | (25 | )% |
Three Months Ended | ||||||||||||
September 30, |
September 30, |
June 30, |
||||||||||
2006 | 2005 | 2006 | ||||||||||
MBR Margin by
Channel:
|
||||||||||||
Wholesale
|
1.06 | % | 1.33 | % | 1.31 | % | ||||||
Correspondent
|
0.48 | % | 1.12 | % | 0.76 | % | ||||||
Conduit
|
0.48 | % | 0.23 | % | 0.60 | % | ||||||
Consumer Direct
|
1.43 | % | 2.19 | % | 1.87 | % | ||||||
Financial Freedom
|
4.52 | % | 2.90 | % | 3.31 | % | ||||||
Other
|
1.29 | % | 1.49 | % | 1.34 | % | ||||||
Total MBR margin
|
1.03 | % | 1.22 | % | 1.23 | % | ||||||
MBR Margin by
Product:
|
||||||||||||
Agency Conforming
|
0.48 | % | 0.76 | % | 0.63 | % | ||||||
Alt-A
|
0.70 | % | 0.95 | % | 1.17 | % | ||||||
Subprime
|
2.30 | % | 2.56 | % | 2.36 | % | ||||||
HELOC/Seconds
|
0.83 | % | 2.54 | % | 0.20 | % | ||||||
Reverse Mortgages
|
4.52 | % | 2.90 | % | 3.31 | % | ||||||
CTP/Lot
|
1.96 | % | 1.90 | % | 0.81 | % | ||||||
Other
|
1.55 | % | 2.13 | % | 1.41 | % | ||||||
Total MBR margin
|
1.03 | % | 1.22 | % | 1.23 | % |
28
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Distribution of Loan Sales by
Channel
|
||||||||||||||||||||
Sales of government-sponsored
enterprises (“GSEs”) equivalent loans
|
16 | % | 17 | % | 18 | % | 18 | % | 16 | % | ||||||||||
Private-label securitizations
|
38 | % | 60 | % | 46 | % | 40 | % | 63 | % | ||||||||||
Whole loan sales, servicing retained
|
38 | % | 16 | % | 33 | % | 36 | % | 13 | % | ||||||||||
Whole loan sales, servicing released
|
1 | % | 2 | % | 2 | % | 2 | % | 3 | % | ||||||||||
Subtotal sales
|
93 | % | 95 | % | 99 | % | 96 | % | 95 | % | ||||||||||
Investment portfolio acquisitions
|
7 | % | 5 | % | 1 | % | 4 | % | 5 | % | ||||||||||
Total loan distribution percentage
|
100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Total loan distribution
|
$ | 20,914 | $ | 16,283 | $ | 19,631 | $ | 57,870 | $ | 38,698 | ||||||||||
29
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Unpaid principal balance at
beginning of period
|
$ | 109,989 | $ | 63,676 | $ | 96,512 | $ | 84,495 | $ | 50,219 | ||||||||||
Additions
|
20,709 | 15,561 | 19,422 | 56,822 | 36,567 | |||||||||||||||
Clean-up
calls exercised
|
— | — | (31 | ) | (31 | ) | (113 | ) | ||||||||||||
Loan payments and prepayments
|
(6,303 | ) | (5,450 | ) | (5,914 | ) | (16,891 | ) | (12,886 | ) | ||||||||||
Unpaid principal balance at end of
period
|
$ | 124,395 | $ | 73,787 | $ | 109,989 | $ | 124,395 | $ | 73,787 | ||||||||||
As of | ||||||||||||
September 30, |
September 30, |
June 30, |
||||||||||
2006 | 2005 | 2006 | ||||||||||
By Product Type:
|
||||||||||||
Fixed rate mortgages
|
34 | % | 37 | % | 35 | % | ||||||
Intermediate term fixed rate loans
|
29 | % | 26 | % | 28 | % | ||||||
Pay option ARMs
|
25 | % | 25 | % | 25 | % | ||||||
Reverse mortgages (all ARMs)
|
9 | % | 9 | % | 9 | % | ||||||
HELOCs
|
2 | % | 2 | % | 2 | % | ||||||
Other
|
1 | % | 1 | % | 1 | % | ||||||
Total
|
100 | % | 100 | % | 100 | % | ||||||
Additional Information,
Excluding Reverse Mortgages:
|
||||||||||||
Weighted average FICO
|
703 | 699 | 703 | |||||||||
Weighted average original LTV(1)
|
73 | % | 73 | % | 72 | % | ||||||
Average original loan size (in
thousands)
|
228 | 210 | 225 | |||||||||
Percentage of portfolio with
prepayment penalty
|
42 | % | 34 | % | 40 | % | ||||||
By Geographic Distribution:
|
||||||||||||
California
|
42 | % | 42 | % | 42 | % | ||||||
New York
|
8 | % | 9 | % | 8 | % | ||||||
Florida
|
8 | % | 7 | % | 8 | % | ||||||
New Jersey
|
4 | % | 5 | % | 4 | % | ||||||
Virginia
|
4 | % | 3 | % | 4 | % | ||||||
Other
|
34 | % | 34 | % | 34 | % | ||||||
Total
|
100 | % | 100 | % | 100 | % | ||||||
(1) | Combined loan-to-value ratio for loans in the second lien position is used to calculate weighted average original loan-to-value ratio for the portfolio. | |
(2) | Capitalized MSRs totaled $1.63 billion as of September 30, 2006 and $1.60 billion as of June 30, 2006, an increase of $32.5 million. The activities in MSRs follow: |
30
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance at beginning of period
|
$ | 1,598,821 | $ | 738,844 | $ | 1,354,433 | $ | 1,094,490 | $ | 640,794 | ||||||||||
Cumulative-effect adjustment due
to change in accounting for MSRs
|
— | — | — | 17,561 | — | |||||||||||||||
Additions from loan sale or
securitization
|
258,249 | 212,857 | 268,515 | 756,821 | 489,821 | |||||||||||||||
Purchase or assumption
|
8,631 | (89 | ) | 27 | 8,658 | 5,463 | ||||||||||||||
Transfers to prepayment penalty
and/or
AAA-rated and agency interest-only securities
|
(2,601 | ) | — | — | (2,601 | ) | (8,491 | ) | ||||||||||||
Clean-up
calls exercised
|
— | (730 | ) | (274 | ) | (274 | ) | (2,597 | ) | |||||||||||
Change in fair value due to run-off
|
(97,714 | ) | N/A | (88,261 | ) | (254,133 | ) | N/A | ||||||||||||
Change in fair value due to market
changes
|
(133,471 | ) | N/A | 76,670 | 27,253 | N/A | ||||||||||||||
Change in fair value due to
application of external benchmarking policies
|
(599 | ) | N/A | (12,289 | ) | (16,459 | ) | N/A | ||||||||||||
Amortization
|
— | (60,911 | ) | — | — | (158,786 | ) | |||||||||||||
Valuation/impairment
|
— | 50,635 | — | — | (25,598 | ) | ||||||||||||||
Balance at end of period
|
$ | 1,631,316 | $ | 940,606 | $ | 1,598,821 | $ | 1,631,316 | $ | 940,606 | ||||||||||
MSRs fair value as a percentage of
unpaid principal balance (in bps)
|
131 | 127 | 145 | 131 | 127 |
31
Three Months Ended | ||||||||||||||||||||||||
September 30, |
BPS |
September 30, |
BPS |
June 30, |
BPS |
|||||||||||||||||||
2006 | UPB | 2005 | UPB | 2006 | UPB | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Service fee (expense)
income:
|
||||||||||||||||||||||||
Gross service fee income
|
$ | 133,818 | 46 | $ | 75,246 | 44 | $ | 117,787 | 45 | |||||||||||||||
Change in value due to portfolio
run offs/Amortization
|
(97,714 | ) | (33 | ) | (60,912 | ) | (36 | ) | (88,261 | ) | (34 | ) | ||||||||||||
Service fee income, net of change
in value due to portfolio run-off/amortization
|
36,104 | 13 | 14,334 | 8 | 29,526 | 11 | ||||||||||||||||||
Change in value due to application
of external benchmarking policies
|
(599 | ) | — | — | — | (12,289 | ) | (5 | ) | |||||||||||||||
Valuation adjustment due to market
changes
|
(133,471 | ) | (46 | ) | 50,635 | 30 | 76,670 | 30 | ||||||||||||||||
Hedge gain (loss) on MSRs
|
119,024 | 41 | (54,665 | ) | (32 | ) | (66,660 | ) | (26 | ) | ||||||||||||||
Total service fee
income
|
$ | 21,058 | 8 | $ | 10,304 | 6 | $ | 27,247 | 10 | |||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, |
BPS |
September 30, |
BPS |
|||||||||||||
2006 | UPB | 2005 | UPB | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Service fee (expense)
income:
|
||||||||||||||||
Gross service fee income
|
$ | 349,798 | 45 | $ | 194,592 | 43 | ||||||||||
Change in value due to portfolio
run offs/Amortization
|
(254,133 | ) | (33 | ) | (158,787 | ) | (35 | ) | ||||||||
Service income, net of change in
value due to portfolio run offs/amortization
|
95,665 | 12 | 35,805 | 8 | ||||||||||||
Change in value due to application
of external benchmarking policies
|
(16,459 | ) | (2 | ) | — | — | ||||||||||
Valuation adjustment due to market
changes
|
27,253 | 4 | (25,598 | ) | (6 | ) | ||||||||||
Hedge (loss) gain on MSRs
|
(27,265 | ) | (4 | ) | 15,314 | 3 | ||||||||||
Total service fee
income
|
$ | 79,194 | 10 | $ | 25,521 | 5 | ||||||||||
32
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Valuation adjustment due to market
changes
|
$ | (134,070 | ) | $ | 50,635 | $ | 64,381 | $ | 10,794 | $ | (25,598 | ) | ||||||||
Hedge gain (loss) on MSRs
|
119,024 | (54,665 | ) | (66,660 | ) | (27,265 | ) | 15,314 | ||||||||||||
Unrealized (loss) gain on
AAA-rated and agency interest-only securities and residual
securities
|
(504 | ) | (518 | ) | 5,566 | 11,346 | (17,612 | ) | ||||||||||||
Unrealized gain (loss) on
principal-only securities
|
5,008 | 5 | (5,614 | ) | (1,500 | ) | (91 | ) | ||||||||||||
Unrealized gain on prepayment
penalty securities
|
13,250 | 1,310 | 10,909 | 17,907 | 18,484 | |||||||||||||||
Other
|
1,476 | (604 | ) | (1,102 | ) | (944 | ) | 5,651 | ||||||||||||
Net (loss) gain on MSRs, AAA-rated
and agency interest-only securities, residual securities, and
hedges
|
$ | 4,184 | $ | (3,837 | ) | $ | 7,480 | $ | 10,338 | $ | (3,852 | ) | ||||||||
33
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
AAA-rated and agency
interest-only securities:
|
||||||||||||||||||||
Beginning balance
|
$ | 64,373 | $ | 63,052 | $ | 84,816 | $ | 78,731 | $ | 90,658 | ||||||||||
Retained investments from
securitizations
|
15,057 | 11,558 | — | 20,253 | 15,664 | |||||||||||||||
Sales
|
— | — | (22,939 | ) | (22,939 | ) | — | |||||||||||||
Clean-up
calls exercised
|
— | — | (107 | ) | (107 | ) | (171 | ) | ||||||||||||
Cash received, net of accretion
|
(2,361 | ) | (5,469 | ) | (3,669 | ) | (11,636 | ) | (17,352 | ) | ||||||||||
Valuation gains (losses) before
hedges
|
(8,629 | ) | 4,864 | 6,272 | 4,138 | (14,794 | ) | |||||||||||||
Ending balance
|
$ | 68,440 | $ | 74,005 | $ | 64,373 | $ | 68,440 | $ | 74,005 | ||||||||||
Principal-only
securities:
|
||||||||||||||||||||
Beginning balance
|
$ | 129,951 | $ | — | $ | 12,820 | $ | 9,483 | $ | 18,598 | ||||||||||
Retained investments from
securitizations
|
3,238 | 2,351 | 3,445 | 10,907 | 3,770 | |||||||||||||||
Purchases
|
— | — | 121,281 | 121,281 | — | |||||||||||||||
Sales
|
(100,761 | ) | — | — | (100,761 | ) | (19,448 | ) | ||||||||||||
Cash received, net of accretion
|
(2,278 | ) | (5 | ) | (1,981 | ) | (4,252 | ) | (478 | ) | ||||||||||
Valuation gains (losses) before
hedges
|
5,008 | 5 | (5,614 | ) | (1,500 | ) | (91 | ) | ||||||||||||
Ending balance
|
$ | 35,158 | $ | 2,351 | $ | 129,951 | $ | 35,158 | $ | 2,351 | ||||||||||
Prepayment penalty
securities:
|
||||||||||||||||||||
Beginning balance
|
$ | 80,036 | $ | 62,283 | $ | 66,949 | $ | 75,741 | $ | 33,451 | ||||||||||
Retained investments from
securitizations
|
13,801 | 20,998 | 13,466 | 35,858 | 31,140 | |||||||||||||||
Transfer from MSRs/residual
securities
|
3,642 | — | — | 3,642 | 8,491 | |||||||||||||||
Cash received, net of accretion
|
(12,307 | ) | (8,413 | ) | (11,288 | ) | (34,726 | ) | (15,388 | ) | ||||||||||
Valuation gains (losses) before
hedges
|
13,250 | 1,310 | 10,909 | 17,907 | 18,484 | |||||||||||||||
Ending balance
|
$ | 98,422 | $ | 76,178 | $ | 80,036 | $ | 98,422 | $ | 76,178 | ||||||||||
Residual
securities(1):
|
||||||||||||||||||||
Beginning balance
|
$ | 240,522 | $ | 145,794 | $ | 205,128 | $ | 167,771 | $ | 135,386 | ||||||||||
Retained investments from
securitizations
|
23,608 | 17,404 | 43,933 | 109,417 | 35,584 | |||||||||||||||
Transfer to prepayment penalty
securities
|
(1,041 | ) | — | — | (1,041 | ) | — | |||||||||||||
Impairments
|
(3,626 | ) | — | (1,300 | ) | (4,926 | ) | — | ||||||||||||
Cash received, net of accretion
|
(6,431 | ) | (3,414 | ) | (3,255 | ) | (15,735 | ) | (15,322 | ) | ||||||||||
Valuation gains (losses) before
hedges
|
8,626 | (5,450 | ) | (3,984 | ) | 6,172 | (1,314 | ) | ||||||||||||
Ending balance
|
$ | 261,658 | $ | 154,334 | $ | 240,522 | $ | 261,658 | $ | 154,334 | ||||||||||
34
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment-grade
securities:
|
||||||||||||||||||||
Beginning balance
|
$ | 187,945 | $ | 94,346 | $ | 145,499 | $ | 92,120 | $ | 146,822 | ||||||||||
Retained investments from
securitizations
|
3,092 | — | 25,808 | 43,701 | 33,924 | |||||||||||||||
Purchases
|
7,369 | — | 23,974 | 72,366 | — | |||||||||||||||
Impairment
|
— | (87 | ) | — | (183 | ) | (328 | ) | ||||||||||||
Clean-up
calls exercised
|
— | — | (1 | ) | (1 | ) | 7 | |||||||||||||
Sales
|
(7,039 | ) | — | — | (7,039 | ) | (83,629 | ) | ||||||||||||
Cash received, net of accretion
|
(1,142 | ) | 139 | (4,871 | ) | (7,437 | ) | (2,356 | ) | |||||||||||
Valuation gains (losses) before
hedges
|
2,970 | (958 | ) | (2,464 | ) | (332 | ) | (1,000 | ) | |||||||||||
Ending balance
|
$ | 193,195 | $ | 93,440 | $ | 187,945 | $ | 193,195 | $ | 93,440 | ||||||||||
Non-Investment grade
securities:
|
||||||||||||||||||||
Beginning balance
|
$ | 88,045 | $ | 57,950 | $ | 66,339 | $ | 57,712 | $ | 83,052 | ||||||||||
Retained investments from
securitizations
|
3,324 | 5,503 | 22,232 | 34,205 | 9,728 | |||||||||||||||
Purchases
|
— | — | — | — | 1,523 | |||||||||||||||
Impairment
|
(156 | ) | (51 | ) | (202 | ) | (610 | ) | (225 | ) | ||||||||||
Sales
|
(12,401 | ) | (10,344 | ) | — | (12,401 | ) | (37,330 | ) | |||||||||||
Cash received, net of accretion
|
296 | (24 | ) | (111 | ) | 392 | (345 | ) | ||||||||||||
Valuation gains (losses) before
hedges
|
(830 | ) | 7 | (213 | ) | (1,020 | ) | (3,362 | ) | |||||||||||
Ending balance
|
$ | 78,278 | $ | 53,041 | $ | 88,045 | $ | 78,278 | $ | 53,041 | ||||||||||
(1) | Included in the residual securities balance at September 30, 2006 were $38.8 million of HELOC residuals retained from two separate guaranteed mortgage securitization transactions. There was no gain on sale of loans recognized in connection with these transactions. |
35
September 30, 2006 | ||||||||||||||||||||
Premium |
||||||||||||||||||||
Current |
(Discount) |
December 31, |
||||||||||||||||||
Face |
to Face |
Amortized |
2005 | |||||||||||||||||
Value | Value | Cost | Fair Value | Fair Value | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Other investment grade
mortgage-backed securities:
|
||||||||||||||||||||
AA+
|
$ | 7,445 | $ | (73 | ) | $ | 7,372 | $ | 7,522 | $ | — | |||||||||
AA
|
87,813 | (1,080 | ) | 86,733 | 86,967 | 21,787 | ||||||||||||||
AA-
|
14,065 | (354 | ) | 13,711 | 14,171 | — | ||||||||||||||
A
|
4,468 | (187 | ) | 4,281 | 4,360 | 239 | ||||||||||||||
BBB
|
22,274 | (1,219 | ) | 21,055 | 21,088 | 29,848 | ||||||||||||||
BBB-
|
65,670 | (5,275 | ) | 60,395 | 59,087 | 40,246 | ||||||||||||||
Total other investment grade
mortgage-backed securities
|
$ | 201,735 | $ | (8,188 | ) | $ | 193,547 | $ | 193,195 | $ | 92,120 | |||||||||
Non-investment grade
mortgage-backed securities:
|
||||||||||||||||||||
BB+
|
$ | 8,456 | $ | (1,222 | ) | $ | 7,234 | $ | 7,234 | $ | — | |||||||||
BB
|
54,613 | (7,150 | ) | 47,463 | 47,850 | 36,873 | ||||||||||||||
BB-
|
22,021 | (1,002 | ) | 21,019 | 21,093 | 13,523 | ||||||||||||||
B
|
6,651 | (5,330 | ) | 1,321 | 1,703 | 6,458 | ||||||||||||||
Other
|
5,265 | (4,983 | ) | 282 | 398 | 858 | ||||||||||||||
Total other non-investment grade
mortgage-backed securities
|
$ | 97,006 | $ | (19,687 | ) | $ | 77,319 | $ | 78,278 | $ | 57,712 | |||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Net gain (loss) on
securities:
|
||||||||||||||||||||
Realized gain on available for
sale securities
|
$ | 3,520 | $ | 673 | $ | — | $ | 3,520 | $ | 6,054 | ||||||||||
Impairment on available for sale
securities
|
(3,782 | ) | (138 | ) | (1,501 | ) | (5,718 | ) | (553 | ) | ||||||||||
Unrealized gain on prepayment
penalty securities
|
13,250 | 1,310 | 10,909 | 17,907 | 18,484 | |||||||||||||||
Unrealized (loss) gain on
AAA-rated and agency interest-only and residual securities
|
(504 | ) | (518 | ) | 5,566 | 11,346 | (17,612 | ) | ||||||||||||
Net gain (loss) on trading
securities and other instruments used to hedge AAA-rated and
agency interest-only and residual securities
|
6,484 | (599 | ) | (6,716 | ) | (2,444 | ) | 5,560 | ||||||||||||
Total gain on securities, net
|
$ | 18,968 | $ | 728 | $ | 8,258 | $ | 24,611 | $ | 11,933 | ||||||||||
36
Actual | Valuation Assumptions | |||||||||||||||||||||||||||||||||||||||
Gross Wtd. |
Servicing |
3-Month |
Weighted |
Lifetime |
3-Month |
Remaining |
||||||||||||||||||||||||||||||||||
Book |
Collateral |
Average |
Fee/Interest |
Prepayment |
Average |
Prepayment |
Prepayment |
Discount |
Cumulative |
|||||||||||||||||||||||||||||||
Value | Balance | Coupon | Strip | Speeds | Multiple | Speeds | Speeds | Yield | Loss Rate(1) | |||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
MSRs
|
$ | 1,631,316 | $ | 124,394,943 | 6.96 | % | 0.37 | % | 18.2 | % | 3.59 | 24.8 | % | 18.2 | % | 9.6 | % | N/A | ||||||||||||||||||||||
AAA-rated interest-only securities
|
$ | 68,440 | $ | 4,424,080 | 6.68 | % | 0.52 | % | 12.7 | % | 2.95 | 16.7 | % | 17.2 | % | 13.6 | % | N/A | ||||||||||||||||||||||
Prepayment penalty securities
|
$ | 98,422 | $ | 19,441,542 | 7.17 | % | N/A | 23.0 | % | N/A | 25.3 | % | 18.8 | % | 22.9 | % | N/A | |||||||||||||||||||||||
Lot loan residual securities
|
$ | 66,133 | $ | 2,262,810 | 8.95 | % | 3.50 | % | 34.9 | % | 0.83 | 39.8 | % | 38.6 | % | 23.7 | % | 0.37 | % | |||||||||||||||||||||
HELOC residual securities
|
95,745 | $ | 2,661,610 | 9.65 | % | 3.21 | % | 44.5 | % | 1.12 | 50.0 | % | 48.7 | % | 20.3 | % | 0.76 | % | ||||||||||||||||||||||
Subprime residual securities
|
99,780 | $ | 6,650,080 | 8.19 | % | 2.15 | % | 27.0 | % | 0.70 | 38.9 | % | 33.4 | % | 23.6 | % | 3.69 | % | ||||||||||||||||||||||
Total non-investment grade residual
securities
|
$ | 261,658 | ||||||||||||||||||||||||||||||||||||||
MSRs
|
$ | 1,598,821 | $ | 109,988,858 | 6.70 | % | 0.37 | % | 18.5 | % | 3.98 | 22.1 | % | 20.5 | % | 10.2 | % | N/A | ||||||||||||||||||||||
AAA-rated interest-only securities
|
$ | 64,373 | $ | 4,512,539 | 6.61 | % | 0.41 | % | 12.6 | % | 3.47 | 13.5 | % | 16.4 | % | 15.0 | % | N/A | ||||||||||||||||||||||
Prepayment penalty securities
|
$ | 80,036 | $ | 16,388,466 | 6.79 | % | N/A | 22.9 | % | N/A | 21.1 | % | 19.3 | % | 27.9 | % | N/A | |||||||||||||||||||||||
Lot loan residual securities
|
58,779 | $ | 2,266,191 | 8.46 | % | 2.82 | % | 34.0 | % | 0.92 | 40.0 | % | 38.2 | % | 22.7 | % | 0.37 | % | ||||||||||||||||||||||
HELOC residual securities
|
87,434 | $ | 2,299,992 | 9.02 | % | 3.01 | % | 48.9 | % | 1.26 | 49.7 | % | 48.2 | % | 19.4 | % | 0.67 | % | ||||||||||||||||||||||
Subprime residual securities
|
94,309 | $ | 6,659,194 | 7.90 | % | 1.72 | % | 28.4 | % | 0.83 | 37.9 | % | 31.1 | % | 24.9 | % | 3.15 | % | ||||||||||||||||||||||
Total non-investment grade residual
securities
|
$ | 240,522 | ||||||||||||||||||||||||||||||||||||||
MSRs
|
$ | 1,094,490 | $ | 84,495,133 | 6.19 | % | 0.37 | % | 21.7 | % | 3.54 | 21.4 | % | 16.2 | % | 10.7 | % | N/A | ||||||||||||||||||||||
AAA-rated and agency interest-only
securities
|
$ | 78,731 | $ | 7,583,643 | 6.63 | % | 0.38 | % | 27.5 | % | 2.73 | 20.3 | % | 22.7 | % | 8.0 | % | N/A | ||||||||||||||||||||||
Prepayment penalty securities
|
$ | 75,741 | $ | 13,657,946 | 6.30 | % | N/A | 22.7 | % | N/A | 23.7 | % | 20.3 | % | 9.0 | % | N/A | |||||||||||||||||||||||
Prime residual securities
|
$ | 2,438 | $ | 1,183,361 | 5.85 | % | 0.61 | % | 60.0 | % | 0.34 | 46.3 | % | 51.4 | % | 15.0 | % | 0.18 | % | |||||||||||||||||||||
Lot loan residual securities
|
41,066 | $ | 939,005 | 7.55 | % | 2.90 | % | 33.2 | % | 1.51 | 43.1 | % | 41.4 | % | 21.6 | % | 0.36 | % | ||||||||||||||||||||||
HELOC residual securities
|
66,041 | $ | 1,430,473 | 8.26 | % | 3.18 | % | 55.8 | % | 1.45 | 44.0 | % | 49.6 | % | 19.0 | % | 0.87 | % | ||||||||||||||||||||||
Subprime residual securities
|
58,226 | $ | 4,831,675 | 7.40 | % | 2.17 | % | 28.9 | % | 0.55 | 37.1 | % | 29.4 | % | 24.9 | % | 2.94 | % | ||||||||||||||||||||||
Total non-investment grade residual
securities
|
$ | 167,771 | ||||||||||||||||||||||||||||||||||||||
(1) | As a percentage of the original pool balance, the actual cumulative loss rate to date totaled 0.29% and 0.39% for HELOC and subprime loans, respectively, at September 30, 2006. No loss has been incurred on lot loans as of September 30, 2006. |
37
38
Servicing |
AAA IO |
Credit Risk |
||||||||||||||
For the Three Months Ended September 30, 2006:
|
Portfolio | Portfolio | Portfolio | Total | ||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net earnings
|
$ | 19,406 | 517 | 10,481 | 30,404 | |||||||||||
Average capital deployed
|
$ | 259,680 | 9,784 | 132,081 | 401,545 | |||||||||||
Return on equity
|
30 | % | 21 | % | 31 | % | 30 | % |
September 30, |
December 31, |
|||||||
2006 | 2005 | |||||||
(Dollars in thousands) | ||||||||
Loans held for
investment:
|
||||||||
SFR mortgage
|
$ | 6,462,610 | $ | 5,441,521 | ||||
Consumer construction
|
1,985,738 | 1,656,963 | ||||||
Builder construction
|
1,018,891 | 838,772 | ||||||
HELOC
|
28,815 | 31,882 | ||||||
Land and other mortgage
|
366,984 | 260,615 | ||||||
Revolving warehouse lines of credit
|
166,948 | 48,616 | ||||||
Total — loans held for
investment
|
$ | 10,029,986 | $ | 8,278,369 | ||||
AAA-rated mortgage-backed
securities:
|
||||||||
AAA-rated non-agency securities,
trading
|
$ | 33,829 | $ | 52,633 | ||||
AAA-rated non-agency securities,
available for sale
|
4,130,995 | 3,524,952 | ||||||
AAA-rated agency securities,
available for sale
|
50,084 | 43,014 | ||||||
Total AAA-rated mortgage-backed
securities
|
$ | 4,214,908 | $ | 3,620,599 | ||||
39
September 30, |
June 30, |
December 31, |
||||||||||
2006 | 2006 | 2005 | ||||||||||
(Dollars in thousands) | ||||||||||||
SFR mortgage loans held for
investment (book value)
|
$ | 6,462,610 | $ | 5,427,609 | $ | 5,441,521 | ||||||
Average loan size
|
$ | 304 | $ | 290 | $ | 292 | ||||||
Non-performing loans as a
percentage of SFR loans
|
0.90 | % | 0.86 | % | 0.62 | % | ||||||
Estimated average life in years(1)
|
2.4 | 2.3 | 2.4 | |||||||||
Estimated average net duration in
months(2)
|
(1.0 | ) | (0.7 | ) | 0.1 | |||||||
Annualized yield
|
6.00 | % | 5.74 | % | 5.06 | % | ||||||
Percentage of loans with active
prepayment penalty
|
34 | % | 40 | % | 35 | % | ||||||
Interest-only loans
|
61 | % | 51 | % | 49 | % | ||||||
Pay option ARMs
|
18 | % | 24 | % | 25 | % | ||||||
Intermediate term fixed rate loans
|
14 | % | 16 | % | 16 | % | ||||||
Fixed-rate mortgages
|
5 | % | 6 | % | 6 | % | ||||||
ARMs
|
2 | % | 3 | % | 4 | % | ||||||
Additional
Information:
|
||||||||||||
Average FICO score(3)
|
716 | 713 | 715 | |||||||||
Original average loan to value
ratio
|
73 | % | 73 | % | 72 | % | ||||||
Current average loan to value
ratio(4)
|
59 | % | 58 | % | 58 | % | ||||||
Geographic distribution of top
five states:
|
||||||||||||
Southern California
|
32 | % | 31 | % | 32 | % | ||||||
Northern California
|
20 | % | 21 | % | 21 | % | ||||||
Total California
|
52 | % | 52 | % | 53 | % | ||||||
Florida
|
6 | % | 6 | % | 5 | % | ||||||
New York
|
4 | % | 3 | % | 4 | % | ||||||
Michigan
|
3 | % | 4 | % | 4 | % | ||||||
Virginia
|
3 | % | 3 | % | 3 | % | ||||||
Other
|
32 | % | 32 | % | 31 | % | ||||||
Total
|
100 | % | 100 | % | 100 | % | ||||||
(1) | Represents the estimated length of time, on average, the SFR loan portfolio will remain outstanding based on the Company’s estimates for prepayments. | |
(2) | Average net duration measures the expected change in the value of a financial instrument in response to changes in interest rates, taking into consideration the impact of the related hedges. The negative net duration implies an increase in value as rates rise while the positive net duration implies a decrease in value. | |
(3) | FICO scores are the result of a credit scoring system developed by Fair Isaacs and Co. and are generally used by lenders to evaluate a borrower’s credit history. FICO scores of 700 or higher are generally considered in the mortgage industry to be very high quality borrowers with low risk of default, but in general, the secondary market will consider FICO scores of 620 or higher to be prime. |
40
(4) | Current average loan-to-value ratio is estimated based on the Office of the Federal Housing Enterprise Oversight House Price Index Metropolitan Statistical Area data on a loan level basis. |
41
As of | ||||||||||||
September 30, |
June 30, |
December 31, |
||||||||||
2006 | 2006 | 2005 | ||||||||||
(Dollars in thousands) | ||||||||||||
Consumer construction loans (book
value)
|
$ | 1,985,738 | $ | 1,860,622 | $ | 1,656,963 | ||||||
Lot, land and other mortgage loans
(book value)
|
41,201 | 79,727 | 107,164 | |||||||||
Total commitments
|
3,342,008 | 3,214,385 | 2,949,430 | |||||||||
Average loan commitment
|
484 | 467 | 442 | |||||||||
Non-performing loans
|
0.75 | % | 0.67 | % | 0.51 | % | ||||||
Fixed-rate loans
|
89 | % | 95 | % | 96 | % | ||||||
Adjustable-rate loans
|
11 | % | 5 | % | 4 | % | ||||||
Additional
Information:
|
||||||||||||
Average
loan-to-value
ratio(1)
|
73 | % | 73 | % | 72 | % | ||||||
Average FICO score
|
714 | 714 | 713 | |||||||||
Geographic distribution of top
five states:
|
||||||||||||
Southern California
|
27 | % | 28 | % | 29 | % | ||||||
Northern California
|
16 | % | 16 | % | 18 | % | ||||||
Total California
|
43 | % | 44 | % | 47 | % | ||||||
Florida
|
9 | % | 9 | % | 8 | % | ||||||
Washington
|
4 | % | 4 | % | 3 | % | ||||||
Arizona
|
3 | % | 3 | % | 3 | % | ||||||
Colorado
|
3 | % | 3 | % | 3 | % | ||||||
Other
|
38 | % | 37 | % | 36 | % | ||||||
Total Consumer Construction
|
100 | % | 100 | % | 100 | % | ||||||
(1) | The average loan-to-value ratio is based on the estimated appraised value of the completed project compared to the commitment amount at the date indicated. |
42
September 30, |
June 30, |
December 31, |
||||||||||
2006 | 2006 | 2005 | ||||||||||
(Dollars in thousands) | ||||||||||||
Outstanding balance (book value)
|
$ | 765,760 | $ | 759,527 | $ | 786,922 | ||||||
Total commitments(1)
|
2,115,407 | 1,907,873 | 1,493,415 | |||||||||
Average spread over prime
|
1.17 | % | 1.26 | % | 1.47 | % | ||||||
Average FICO score
|
736 | 734 | 728 | |||||||||
Average original CLTV ratio(2)
|
77 | % | 77 | % | 78 | % |
Average Loan |
30+ Days |
|||||||||||||||||||
Outstanding |
Commitment |
Average Spread |
Average |
Delinquency |
||||||||||||||||
CLTV
|
Balance | Balance | Over Prime | FICO | Percentage | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
96% to 100%
|
$ | 80,904 | $ | 116 | 2.05 | % | 731 | 3.03 | % | |||||||||||
91% to 95%
|
99,220 | 99 | 2.10 | % | 713 | 0.62 | % | |||||||||||||
81% to 90%
|
304,942 | 92 | 1.48 | % | 718 | 0.92 | % | |||||||||||||
71% to 80%
|
161,165 | 165 | 0.35 | % | 745 | 0.50 | % | |||||||||||||
70% or less
|
119,529 | 158 | 0.15 | % | 752 | 0.83 | % | |||||||||||||
Total
|
$ | 765,760 | $ | 126 | 1.17 | % | 736 | 1.00 | % | |||||||||||
(1) | On funded loans. | |
(2) | The CLTV combines the loan-to-value on both the first mortgage loan and the HELOC. |
43
As of | ||||||||||||
September 30, |
June 30, |
December 31, |
||||||||||
2006 | 2006 | 2005 | ||||||||||
(Dollars in thousands) | ||||||||||||
Construction loans (book value)
|
$ | 1,018,891 | $ | 1,013,279 | $ | 838,772 | ||||||
Land and other mortgage loans
(book value)
|
350,496 | 307,282 | 252,427 | |||||||||
Total commitments(1)
|
2,445,632 | 2,368,149 | 2,181,698 | |||||||||
Average loan commitments(2)
|
11,135 | 10,602 | 10,824 | |||||||||
Percentage of homes under
construction or completed — pre-sold(3)
|
55 | % | 62 | % | 66 | % | ||||||
Median sales price of homes(3)
|
403 | 394 | 377 | |||||||||
Non-performing loans
|
0.25 | % | 0.23 | % | 0.04 | % | ||||||
Additional
Information:
|
||||||||||||
Average
loan-to-value
ratio(4)
|
72 | % | 71 | % | 71 | % | ||||||
Geographic distribution of top
five states:
|
||||||||||||
Southern California
|
37 | % | 36 | % | 40 | % | ||||||
Northern California
|
17 | % | 16 | % | 17 | % | ||||||
Total California
|
54 | % | 52 | % | 57 | % | ||||||
Florida
|
11 | % | 12 | % | 9 | % | ||||||
Illinois
|
8 | % | 10 | % | 9 | % | ||||||
Oregon
|
5 | % | 5 | % | 3 | % | ||||||
New York
|
4 | % | 4 | % | 4 | % | ||||||
Other
|
18 | % | 17 | % | 18 | % | ||||||
Total Builder Construction
|
100 | % | 100 | % | 100 | % | ||||||
(1) | 86% of the balance represents commitments in construction and land/model loans and 14% represents the single-spec portfolio at September 30, 2006. | |
(2) | In calculating the average loans commitments, total commitments of $352.3 million, $364.4 million, and $385.0 million of single-spec loans at September 30, 2006, June 30, 2006 and December 31, 2005, are excluded. Average loan commitments for the single-spec portfolio are $418 thousand, $404 thousand and $387 thousand at September 30, 2006, June 30, 2006, and December 31, 2005, respectively. | |
(3) | Amounts are for construction loans from homebuilder division only. | |
(4) | The average loan-to-value ratio is based on the estimated appraised value of the completed project compared to the commitment amount at the date indicated. |
44
As of | ||||||||||||
September 30, |
June 30, |
December 31, |
||||||||||
2006 | 2006 | 2005 | ||||||||||
(Dollars in thousands) | ||||||||||||
Outstanding balance (book value)
|
$ | 166,948 | $ | 121,292 | $ | 48,616 | ||||||
Total commitments
|
637,000 | 468,000 | 201,000 |
Three Months Ended | ||||||||||||||||||||||||||||||||||||
September 30, 2006 | September 30, 2005 | June 30, 2006 | ||||||||||||||||||||||||||||||||||
Average |
Yield/ |
Average |
Yield/ |
Average |
Yield/ |
|||||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Securities
|
$ | 4,889,155 | $ | 86,212 | 7.00 | % | $ | 3,589,084 | $ | 52,624 | 5.82 | % | $ | 4,596,115 | $ | 80,998 | 7.07 | % | ||||||||||||||||||
Loans held for sale
|
10,825,266 | 196,924 | 7.22 | % | 9,065,447 | 125,969 | 5.51 | % | 10,532,302 | 181,079 | 6.90 | % | ||||||||||||||||||||||||
Mortgage loans held for investment
|
6,079,803 | 92,005 | 6.00 | % | 5,392,079 | 66,566 | 4.90 | % | 6,016,878 | 86,092 | 5.74 | % | ||||||||||||||||||||||||
Builder construction and income
property
|
1,023,421 | 27,396 | 10.62 | % | 797,853 | 18,086 | 8.99 | % | 993,145 | 25,280 | 10.21 | % | ||||||||||||||||||||||||
Consumer construction
|
1,835,164 | 32,087 | 6.94 | % | 1,468,487 | 20,440 | 5.52 | % | 1,707,957 | 28,079 | 6.59 | % | ||||||||||||||||||||||||
Investment in Federal Home Loan
Bank stock and other
|
854,208 | 12,127 | 5.63 | % | 808,590 | 8,098 | 3.97 | % | 834,180 | 10,683 | 5.14 | % | ||||||||||||||||||||||||
Total interest-earning assets
|
25,507,017 | 446,751 | 6.95 | % | 21,121,540 | 291,783 | 5.48 | % | 24,680,577 | 412,211 | 6.70 | % | ||||||||||||||||||||||||
Mortgage servicing assets
|
1,552,295 | 792,300 | 1,434,234 | |||||||||||||||||||||||||||||||||
Other
|
2,080,669 | 931,074 | 1,655,158 | |||||||||||||||||||||||||||||||||
Total assets
|
$ | 29,139,981 | $ | 22,844,914 | $ | 27,769,969 | ||||||||||||||||||||||||||||||
Liabilities and
shareholders’ equity
|
||||||||||||||||||||||||||||||||||||
Interest-bearing deposits
|
$ | 9,208,481 | 113,758 | 4.90 | % | $ | 6,108,016 | 52,261 | 3.39 | % | $ | 8,211,312 | 92,840 | 4.53 | % | |||||||||||||||||||||
Advances from Federal Home
Loan Bank
|
9,783,887 | 115,769 | 4.69 | % | 9,061,905 | 76,907 | 3.37 | % | 9,775,167 | 110,468 | 4.53 | % | ||||||||||||||||||||||||
Other borrowings
|
5,682,601 | 80,513 | 5.62 | % | 4,806,036 | 49,796 | 4.11 | % | 5,923,472 | 78,749 | 5.33 | % | ||||||||||||||||||||||||
Total interest-bearing liabilities
|
24,674,969 | 310,040 | 4.99 | % | 19,975,957 | 178,964 | 3.55 | % | 23,909,951 | 282,057 | 4.73 | % | ||||||||||||||||||||||||
Other
|
2,593,633 | 1,453,596 | 2,117,781 | |||||||||||||||||||||||||||||||||
Total liabilities
|
27,268,602 | 21,429,553 | 26,027,732 | |||||||||||||||||||||||||||||||||
Shareholders’ equity
|
1,871,379 | 1,415,361 | 1,742,237 | |||||||||||||||||||||||||||||||||
Total liabilities and
shareholders’ equity
|
$ | 29,139,981 | $ | 22,844,914 | $ | 27,769,969 | ||||||||||||||||||||||||||||||
Net interest income
|
$ | 136,711 | $ | 112,819 | $ | 130,154 | ||||||||||||||||||||||||||||||
Net interest spread
|
1.96 | % | 1.93 | % | 1.97 | % | ||||||||||||||||||||||||||||||
Net interest margin
|
2.13 | % | 2.12 | % | 2.12 | % | ||||||||||||||||||||||||||||||
45
Nine Months Ended | ||||||||||||||||||||||||
September 30, 2006 | September 30, 2005 | |||||||||||||||||||||||
Average |
Yield |
Average |
Yield |
|||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Securities
|
$ | 4,541,302 | $ | 233,693 | 6.88 | % | $ | 3,603,369 | $ | 151,649 | 5.63 | % | ||||||||||||
Loans held for sale
|
10,650,644 | 551,564 | 6.92 | % | 7,319,273 | 293,108 | 5.35 | % | ||||||||||||||||
Mortgage loans held for investment
|
6,014,437 | 260,276 | 5.79 | % | 5,198,156 | 185,793 | 4.78 | % | ||||||||||||||||
Builder construction and income
property
|
973,663 | 73,960 | 10.16 | % | 727,197 | 46,614 | 8.57 | % | ||||||||||||||||
Consumer construction
|
1,719,823 | 84,609 | 6.58 | % | 1,412,820 | 59,097 | 5.59 | % | ||||||||||||||||
Investment in Federal Home
Loan Bank stock and other
|
834,396 | 32,706 | 5.24 | % | 727,884 | 19,534 | 3.59 | % | ||||||||||||||||
Total interest-earning assets
|
24,734,265 | 1,236,808 | 6.69 | % | 18,988,699 | 755,795 | 5.32 | % | ||||||||||||||||
Mortgage servicing assets
|
1,377,586 | 722,629 | ||||||||||||||||||||||
Other
|
1,695,257 | 766,007 | ||||||||||||||||||||||
Total assets
|
$ | 27,807,108 | $ | 20,477,335 | ||||||||||||||||||||
Liabilities and
shareholders’ equity
|
||||||||||||||||||||||||
Interest-bearing deposits
|
$ | 8,255,056 | 280,841 | 4.55 | % | $ | 5,686,527 | 132,479 | 3.11 | % | ||||||||||||||
Advances from Federal Home
Loan Bank
|
9,839,691 | 329,846 | 4.48 | % | 8,192,796 | 193,711 | 3.16 | % | ||||||||||||||||
Other borrowings
|
5,844,576 | 232,046 | 5.31 | % | 4,011,769 | 114,293 | 3.81 | % | ||||||||||||||||
Total interest-bearing liabilities
|
23,939,323 | 842,733 | 4.71 | % | 17,891,092 | 440,483 | 3.29 | % | ||||||||||||||||
Other
|
2,129,600 | 1,245,302 | ||||||||||||||||||||||
Total liabilities
|
26,068,923 | 19,136,394 | ||||||||||||||||||||||
Shareholders’ equity
|
1,738,185 | 1,340,941 | ||||||||||||||||||||||
Total liabilities and
shareholders’ equity
|
$ | 27,807,108 | $ | 20,477,335 | ||||||||||||||||||||
Net interest income
|
$ | 394,075 | $ | 315,312 | ||||||||||||||||||||
Net interest spread
|
1.98 | % | 2.03 | % | ||||||||||||||||||||
Net interest margin
|
2.13 | % | 2.22 | % |
Three Months Ended | ||||||||||||||||||||||||||||||||||||
September 30, 2006 | September 30, 2005 | June 30, 2006 | ||||||||||||||||||||||||||||||||||
Average |
Net |
Net |
Average |
Net |
Net |
Average |
Net |
Net |
||||||||||||||||||||||||||||
Earning |
Interest |
Interest |
Earning |
Interest |
Interest |
Earning |
Interest |
Interest |
||||||||||||||||||||||||||||
Assets | Income | Margin | Assets | Income | Margin | Assets | Income | Margin | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||
By Segment:
|
||||||||||||||||||||||||||||||||||||
Thrift segment and other
|
$ | 15,390 | $ | 78 | 2.02 | % | $ | 12,835 | $ | 67 | 2.07 | % | $ | 14,986 | $ | 75 | 2.01 | % | ||||||||||||||||||
Mortgage banking segment
|
10,117 | 59 | 2.29 | % | 8,287 | 46 | 2.20 | % | 9,695 | 55 | 2.27 | % | ||||||||||||||||||||||||
Total Company
|
$ | 25,507 | $ | 137 | 2.13 | % | $ | 21,122 | $ | 113 | 2.12 | % | $ | 24,681 | $ | 130 | 2.12 | % | ||||||||||||||||||
46
Nine Months Ended | ||||||||||||||||||||||||
September 30, 2006 | September 30, 2005 | |||||||||||||||||||||||
Average |
Net |
Net |
Average |
Net |
Net |
|||||||||||||||||||
Earning |
Interest |
Interest |
Earning |
Interest |
Interest |
|||||||||||||||||||
Assets | Income | Margin | Assets | Income | Margin | |||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||
By Segment:
|
||||||||||||||||||||||||
Thrift segment and other
|
$ | 14,946 | $ | 227 | 2.03 | % | $ | 12,170 | $ | 195 | 2.14 | % | ||||||||||||
Mortgage banking segment
|
9,788 | 167 | 2.28 | % | 6,819 | 120 | 2.35 | % | ||||||||||||||||
Total Company
|
$ | 24,734 | $ | 394 | 2.13 | % | $ | 18,989 | $ | 315 | 2.22 | % | ||||||||||||
Increase/(Decrease) Due to | ||||||||||||||||
Volume(1) | Rate(2) | Mix(3) | Total Change | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended
September 30, 2006 vs. 2005
|
||||||||||||||||
Interest income:
|
||||||||||||||||
Mortgage-backed securities
|
$ | 19,062 | $ | 10,664 | $ | 3,862 | $ | 33,588 | ||||||||
Loans held for sale
|
24,454 | 38,942 | 7,559 | 70,955 | ||||||||||||
Mortgage loans held for investment
|
8,490 | 15,032 | 1,917 | 25,439 | ||||||||||||
Builder construction and income
property
|
5,113 | 3,272 | 925 | 9,310 | ||||||||||||
Consumer construction
|
5,104 | 5,236 | 1,307 | 11,647 | ||||||||||||
Investment in Federal Home
Loan Bank stock and other
|
457 | 3,381 | 191 | 4,029 | ||||||||||||
Total interest income
|
62,680 | 76,527 | 15,761 | 154,968 | ||||||||||||
Interest expense:
|
||||||||||||||||
Interest-bearing deposits
|
26,528 | 23,195 | 11,774 | 61,497 | ||||||||||||
Advances from Federal Home
Loan Bank
|
6,127 | 30,319 | 2,416 | 38,862 | ||||||||||||
Other borrowings
|
10,304 | 17,836 | 2,577 | 30,717 | ||||||||||||
Total interest expense
|
42,959 | 71,350 | 16,767 | 131,076 | ||||||||||||
Net interest income
|
$ | 19,721 | $ | 5,177 | $ | (1,006 | ) | $ | 23,892 | |||||||
Nine Months Ended
September 30, 2006 vs. 2005
|
||||||||||||||||
Interest income:
|
||||||||||||||||
Mortgage-backed securities
|
$ | 39,473 | $ | 33,779 | $ | 8,792 | $ | 82,044 | ||||||||
Loans held for sale
|
133,408 | 85,934 | 39,114 | 258,456 | ||||||||||||
Mortgage loans held for investment
|
29,176 | 39,159 | 6,148 | 74,483 | ||||||||||||
Builder construction and income
property
|
15,799 | 8,625 | 2,922 | 27,346 | ||||||||||||
Consumer construction
|
12,842 | 10,409 | 2,261 | 25,512 | ||||||||||||
Investment in Federal Home
Loan Bank stock and other
|
2,858 | 8,997 | 1,317 | 13,172 | ||||||||||||
Total interest income
|
233,556 | 186,903 | 60,554 | 481,013 |
47
Increase/(Decrease) Due to | ||||||||||||||||
Volume(1) | Rate(2) | Mix(3) | Total Change | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest expense:
|
||||||||||||||||
Interest-bearing deposits
|
59,839 | 60,979 | 27,544 | 148,362 | ||||||||||||
Advances from Federal Home
Loan Bank
|
38,939 | 80,928 | 16,268 | 136,135 | ||||||||||||
Other borrowings
|
52,843 | 44,768 | 20,142 | 117,753 | ||||||||||||
Total interest expense
|
151,621 | 186,675 | 63,954 | 402,250 | ||||||||||||
Net interest income
|
$ | 81,935 | $ | 228 | $ | (3,400 | ) | $ | 78,763 | |||||||
(1) | Changes in volume are calculated by taking changes in average outstanding balances multiplied by the prior period’s rate. | |
(2) | Changes in the rate are calculated by taking changes in the average interest rate multiplied by the prior period’s volume. | |
(3) | Changes in rate/volume (“mix”) are calculated by taking changes in rates times the changes in volume. |
September 30, 2006 | December 31, 2005 | |||||||||||||||||||||||
Effect of Change in |
Effect of Change in |
|||||||||||||||||||||||
Interest Rates | Interest Rates | |||||||||||||||||||||||
Fair |
Decrease |
Increase |
Decrease |
Increase |
||||||||||||||||||||
Value | 100 bps | 100 bps | Fair Value | 100 bps | 100 bps | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 520,281 | $ | 520,281 | $ | 520,281 | $ | 442,059 | $ | 442,059 | $ | 442,059 | ||||||||||||
Trading securities
|
525,235 | 554,541 | 515,428 | 342,545 | 348,982 | 323,577 | ||||||||||||||||||
Available for sale securities
|
3,550,483 | 3,615,966 | 3,454,607 | 2,680,955 | 2,727,144 | 2,613,690 | ||||||||||||||||||
Loans held for sale
|
8,388,857 | 8,466,224 | 8,277,630 | 6,057,556 | 6,111,131 | 5,972,194 | ||||||||||||||||||
Loans held for investment
|
10,034,597 | 10,097,319 | 9,927,328 | 8,213,754 | 8,279,424 | 8,119,628 | ||||||||||||||||||
MSRs
|
1,631,316 | 1,269,914 | 1,892,303 | 1,114,630 | 930,932 | 1,239,189 | ||||||||||||||||||
Other assets
|
1,775,749 | 2,030,785 | 1,636,356 | 1,372,896 | 1,436,900 | 1,391,549 | ||||||||||||||||||
Total assets
|
$ | 26,426,518 | $ | 26,555,030 | $ | 26,223,933 | $ | 20,224,395 | $ | 20,276,572 | $ | 20,101,886 | ||||||||||||
Deposits
|
$ | 10,126,232 | $ | 10,171,064 | $ | 10,082,405 | $ | 7,629,227 | $ | 7,665,078 | $ | 7,594,015 | ||||||||||||
Advances from Federal Home Loan Bank
|
9,328,093 | 9,417,285 | 9,239,242 | 6,966,946 | 6,993,439 | 6,940,884 | ||||||||||||||||||
Other borrowings
|
3,315,142 | 3,316,516 | 3,313,771 | 2,990,570 | 2,992,630 | 2,988,513 | ||||||||||||||||||
Other liabilities
|
683,146 | 683,146 | 683,146 | 433,995 | 434,287 | 433,705 | ||||||||||||||||||
Total liabilities
|
23,452,613 | 23,588,011 | 23,318,564 | 18,020,738 | 18,085,434 | 17,957,117 | ||||||||||||||||||
Shareholders’ equity (NPV)
|
$ | 2,973,905 | $ | 2,967,019 | $ | 2,905,369 | $ | 2,203,657 | $ | 2,191,138 | $ | 2,144,769 | ||||||||||||
% Change from base case
|
(0.23 | )% | (2.30 | )% | (0.57 | )% | (2.67 | )% | ||||||||||||||||
48
49
Total |
||||||||||||||||||||||||||||
Reserves |
||||||||||||||||||||||||||||
as |
QTD |
YTD |
||||||||||||||||||||||||||
a |
Net |
Net |
||||||||||||||||||||||||||
Allowance |
Percentage |
Charge |
Charge |
|||||||||||||||||||||||||
For |
of |
Non- |
Offs/Net |
Offs/Net |
||||||||||||||||||||||||
Loan |
Credit |
Book |
Performing |
REO |
REO |
|||||||||||||||||||||||
Type of Loan
|
Book Value | Losses | Discounts(1) | Value | Assets | (Gains) | (Gains) | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Held for sale
portfolio
|
$ | 8,361,627 | $ | 20,705 | 0.25 | % | $ | 42,717 | $ | — | $ | — | ||||||||||||||||
Held for investment
portfolio
|
||||||||||||||||||||||||||||
SFR mortgage loans and HELOCs
|
6,453,348 | $ | 23,324 | 0.36 | % | 56,256 | 1,114 | 1,692 | ||||||||||||||||||||
Land and other mortgage loans
|
366,984 | 6,188 | 1.69 | % | 5,810 | — | — | |||||||||||||||||||||
Builder construction and income
property loans
|
1,018,891 | 14,906 | 1.46 | % | 3,462 | 108 | 303 | |||||||||||||||||||||
Consumer construction loans
|
1,985,738 | 10,541 | 0.53 | % | 9,421 | 427 | 1,471 | |||||||||||||||||||||
Revolving warehouse lines of credit
|
166,948 | 206 | 0.12 | % | — | — | — | |||||||||||||||||||||
Total core held for investment loans
|
9,991,909 | 55,165 | 0.55 | % | 74,949 | 1,649 | 3,466 | |||||||||||||||||||||
Discontinued product lines(2)
|
38,077 | 5,870 | 15.42 | % | 3,882 | 216 | 1,707 | |||||||||||||||||||||
Total held for investment portfolio
|
10,029,986 | $ | 61,035 | 0.61 | % | 78,831 | 1,865 | 5,173 | ||||||||||||||||||||
Total loans
|
$ | 18,391,613 | $ | 121,548 | $ | 1,865 | $ | 5,173 | ||||||||||||||||||||
Foreclosed assets
|
||||||||||||||||||||||||||||
Core portfolios
|
$ | 17,870 | $ | (1,234 | ) | $ | (2,816 | ) | ||||||||||||||||||||
Discontinued product lines
|
628 | 7 | 10 | |||||||||||||||||||||||||
Total foreclosed assets
|
$ | 18,498 | $ | (1,227 | ) | $ | (2,806 | ) | ||||||||||||||||||||
Total non-performing assets
|
$ | 140,046 | ||||||||||||||||||||||||||
Total non-performing assets as a
percentage of total assets
|
0.51 | % | ||||||||||||||||||||||||||
(1) | The amount represents the lower of cost or market adjustments on non-performing loans in the held for sale portfolio. | |
(2) | Discontinued product lines include manufactured home loans and home improvement loans, which were discontinued in 1999. |
50
September 30, |
September 30, |
December 31, |
||||||||||
2006 | 2005 | 2005 | ||||||||||
(Dollars in thousands) | ||||||||||||
Loans held for sale before market
valuation reserves
|
$ | 63,422 | $ | 25,292 | $ | 31,050 | ||||||
Mark valuation reserves
|
(20,705 | ) | (7,832 | ) | (10,245 | ) | ||||||
Net non-performing loans held for
sale
|
42,717 | 17,460 | 20,805 | |||||||||
Loans held for investment:
|
||||||||||||
Portfolio loans
|
||||||||||||
SFR mortgage loans
|
$ | 56,256 | $ | 25,983 | $ | 28,335 | ||||||
Land and other mortgage loans
|
5,810 | — | 197 | |||||||||
Builder construction and income
property loans
|
3,462 | 4,162 | 430 | |||||||||
Consumer construction loans
|
9,421 | 8,183 | 8,819 | |||||||||
Total portfolio non-performing
loans
|
74,949 | 38,328 | 37,781 | |||||||||
Discontinued product lines
|
3,882 | 5,318 | 5,623 | |||||||||
Total non-performing loans held
for investment
|
$ | 78,831 | $ | 43,646 | $ | 43,404 | ||||||
Total non-performing loans
|
121,548 | 61,106 | 64,209 | |||||||||
Foreclosed assets
|
18,498 | 9,217 | 8,817 | |||||||||
Total non-performing assets
|
$ | 140,046 | $ | 70,323 | $ | 73,026 | ||||||
Allowance for loan losses to
non-performing loans held for investment
|
77 | % | 127 | % | 127 | % | ||||||
Total non-performing assets to
total assets
|
0.51 | % | 0.36 | % | 0.34 | % | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance, beginning of period
|
$ | 57,912 | $ | 54,069 | $ | 55,168 | $ | 52,891 | ||||||||
Provision for loan losses
|
4,988 | 3,528 | 11,040 | 8,425 | ||||||||||||
Charge-offs net of recoveries:
|
||||||||||||||||
SFR mortgage loans
|
(1,114 | ) | (145 | ) | (1,692 | ) | (1,220 | ) | ||||||||
Land and other mortgage loans
|
— | (127 | ) | — | (168 | ) | ||||||||||
Builder construction
|
(108 | ) | — | (303 | ) | (72 | ) | |||||||||
Consumer construction
|
(427 | ) | (567 | ) | (1,471 | ) | (1,437 | ) | ||||||||
Discontinued product lines
|
(216 | ) | (1,225 | ) | (1,707 | ) | (2,886 | ) | ||||||||
Charge-offs net of recoveries
|
(1,865 | ) | (2,064 | ) | (5,173 | ) | (5,783 | ) | ||||||||
Balance, end of period
|
$ | 61,035 | $ | 55,533 | $ | 61,035 | $ | 55,533 | ||||||||
Annualized charge-offs to average
loans held for investment
|
0.08 | % | 0.11 | % | 0.08 | % | 0.11 | % | ||||||||
Charge-offs to quarterly production
|
0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % |
51
52
Nine Months Ended | ||||||||
September 30, |
September 30, |
|||||||
2006 | 2005 | |||||||
(Dollars in millions) | ||||||||
Loans sold:
|
||||||||
GSEs and whole loans
|
$ | 32,227 | $ | 12,520 | ||||
Securitization trusts
|
23,405 | 24,207 | ||||||
Total
|
$ | 55,632 | $ | 36,727 | ||||
Total repurchases(1)
|
$ | 102 | $ | 94 | ||||
Repurchase as a percentage of
total loans sold during the period
|
0.18 | % | 0.26 | % | ||||
Repurchase losses to loans sold
during the period
|
0.023 | % | 0.035 | % |
(1) | Amounts exclude repurchases that are administrative in nature and generally are re-sold immediately at little or no loss. |
Three |
Nine |
|||||||
Months | Months | |||||||
(Dollars in thousands) | ||||||||
Balance, beginning of period
|
$ | 35,402 | $ | 27,638 | ||||
Additions/provisions
|
9,374 | 24,147 | ||||||
Actual
losses/mark-to-market
|
(14,639 | ) | (22,423 | ) | ||||
Recoveries on previous claims
|
53 | 828 | ||||||
Balance, September 30, 2006
|
$ | 30,190 | $ | 30,190 | ||||
Secondary market reserve to loans
sold — UPB outstanding(1)
|
0.028 | % | 0.028 | % |
(1) | Loans sold — UPB outstanding represents current outstanding principal balances on loans sold after January 1, 2004, excluding HELOCs and reverse mortgages. |
53
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2006 | 2005 | 2006 | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Salaries and related
|
$ | 177,564 | $ | 142,352 | $ | 179,280 | $ | 509,402 | $ | 407,796 | ||||||||||
Premises and equipment
|
19,955 | 14,010 | 20,113 | 57,039 | 40,133 | |||||||||||||||
Loan purchase and servicing costs
|
14,246 | 10,779 | 13,149 | 40,301 | 31,026 | |||||||||||||||
Professional services
|
8,263 | 7,759 | 8,158 | 24,529 | 20,917 | |||||||||||||||
Data processing
|
16,831 | 11,142 | 15,758 | 46,864 | 32,491 | |||||||||||||||
Office and related
|
17,423 | 13,098 | 17,602 | 50,120 | 35,954 | |||||||||||||||
Advertising and promotion
|
10,742 | 11,648 | 12,409 | 34,368 | 33,406 | |||||||||||||||
Operations and sale of foreclosed
assets
|
557 | 1,227 | 385 | 1,484 | 1,939 | |||||||||||||||
Litigation settlement
|
— | — | — | — | 9,000 | |||||||||||||||
Other
|
3,315 | 2,634 | 3,005 | 9,640 | 7,683 | |||||||||||||||
Deferral of expenses under
SFAS 91
|
(66,198 | ) | (60,789 | ) | (66,175 | ) | (195,599 | ) | (165,124 | ) | ||||||||||
Total operating expenses
|
202,698 | 153,860 | 203,684 | 578,148 | 455,221 | |||||||||||||||
Amortization of other intangible
assets
|
430 | 145 | 130 | 694 | 452 | |||||||||||||||
Total expenses
|
$ | 203,128 | $ | 154,005 | $ | 203,814 | $ | 578,842 | $ | 455,673 | ||||||||||
54
Maximum |
||||||||||||||||
Approximate |
||||||||||||||||
Total Number of |
Dollar Value |
|||||||||||||||
Total |
Shares Purchased |
(in millions) of Shares |
||||||||||||||
Number of |
Weighted |
as Part of Publicly |
that May Yet Be |
|||||||||||||
Shares |
Average Price |
Announced Plans or |
Purchased Under the |
|||||||||||||
Calendar Month:
|
Purchased(1) | Paid per Share | Programs | Plans or Programs(2) | ||||||||||||
July 2006
|
119 | $ | 43.64 | — | $ | 63.6 | ||||||||||
August 2006
|
399 | 41.84 | — | 63.6 | ||||||||||||
September 2006
|
809 | 41.01 | — | 63.6 | ||||||||||||
Total
|
1,327 | $ | 41.50 | — | ||||||||||||
(1) | All shares purchased during the periods indicated represent withholding of a portion of shares to cover taxes in connection with vesting of restricted stocks or exercise of stock options. | |
(2) | Our Board of Directors previously approved a $500 million share repurchase program. Since its inception in 1999, we have repurchased a total of 28.0 million shares through this program. |
55
56
September 30, |
September 30, |
December 31, |
||||||||||||||||||||||
2006 | 2005 | 2005 | ||||||||||||||||||||||
Deposit Category
|
Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Non-interest-bearing checking
|
$ | 71,013 | 0.0 | % | $ | 64,079 | 0.0 | % | $ | 63,308 | 0.0 | % | ||||||||||||
Interest-bearing checking
|
51,333 | 1.2 | % | 55,021 | 1.3 | % | 55,479 | 1.3 | % | |||||||||||||||
Savings
|
1,696,859 | 4.9 | % | 1,219,710 | 3.1 | % | 1,194,963 | 3.6 | % | |||||||||||||||
Custodial accounts
|
651,421 | 0.0 | % | 658,958 | 0.0 | % | 493,936 | 0.0 | % | |||||||||||||||
Total core deposits
|
2,470,626 | 3.4 | % | 1,997,768 | 1.9 | % | 1,807,686 | 2.4 | % | |||||||||||||||
Certificates of deposit
|
7,640,393 | 5.0 | % | 5,263,182 | 3.6 | % | 5,864,238 | 4.0 | % | |||||||||||||||
Total deposits
|
$ | 10,111,019 | 4.6 | % | $ | 7,260,950 | 3.1 | % | $ | 7,671,924 | 3.6 | % | ||||||||||||
% of |
% of |
% of |
||||||||||||||||||||||
Total |
Total |
Total |
||||||||||||||||||||||
Deposit Channel
|
Amount | Deposits | Amount | Deposits | Amount | Deposits | ||||||||||||||||||
Branch
|
$ | 4,729,699 | 47 | % | $ | 3,059,462 | 42 | % | $ | 3,322,752 | 43 | % | ||||||||||||
Internet
|
1,121,653 | 11 | % | 714,837 | 10 | % | 798,518 | 10 | % | |||||||||||||||
Telebanking
|
1,249,974 | 12 | % | 835,145 | 12 | % | 934,572 | 12 | % | |||||||||||||||
Money desk
|
2,358,272 | 23 | % | 1,992,548 | 27 | % | 2,122,146 | 28 | % | |||||||||||||||
Custodial
|
651,421 | 7 | % | 658,958 | 9 | % | 493,936 | 7 | % | |||||||||||||||
Total deposits
|
$ | 10,111,019 | 100 | % | $ | 7,260,950 | 100 | % | $ | 7,671,924 | 100 | % | ||||||||||||
Face Amount | Interest Rate | |||||||
(Dollars in thousands) | ||||||||
September 2006
|
$ | 38,000 | 6.96 | % | ||||
June 2006
|
90,000 | 7.35 | % | |||||
December 2005
|
90,000 | 6.31 | % | |||||
December 2004
|
30,000 | 5.83 | % | |||||
December 2003
|
30,000 | 6.30 | % | |||||
July 2003
|
30,000 | 6.05 | % |
57
58
Adjusted for |
||||||||||||
As Reported |
Additional Subprime |
|||||||||||
Pre-Subprime Risk-Weighting | Risk-Weighting | Well-Capitalized Minimum | ||||||||||
Capital Ratios:
|
||||||||||||
Tier 1 core
|
7.60 | % | 7.60 | % | 5.00 | % | ||||||
Tier 1 risk-based
|
11.31 | % | 11.24 | % | 6.00 | % | ||||||
Total risk-based
|
11.70 | % | 11.62 | % | 10.00 | % |
59
60
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
61
ITEM 1. | FINANCIAL STATEMENTS |
September 30, |
December 31, |
|||||||
2006 | 2005 | |||||||
(Unaudited) | ||||||||
(Dollars in thousands) | ||||||||
ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 521,428 | $ | 442,525 | ||||
Securities classified as trading
($142.4 million and $96.8 million pledged as
collateral for borrowings at September 30, 2006 and
December 31, 2005, respectively)
|
527,579 | 348,962 | ||||||
Securities classified as available
for sale, amortized cost of $4.4 billion and
$3.8 billion at September 30, 2006 and
December 31, 2005, respectively ($3.5 billion and
$2.7 billion pledged as collateral for borrowings at
September 30, 2006 and December 31, 2005, respectively)
|
4,422,480 | 3,753,195 | ||||||
Loans receivable:
|
||||||||
Loans held for sale
|
||||||||
SFR mortgage
|
7,579,265 | 5,170,168 | ||||||
HELOC
|
736,945 | 755,040 | ||||||
Consumer lot loans
|
24,712 | 98,976 | ||||||
Total loans held for sale
|
8,340,922 | 6,024,184 | ||||||
Loans held for investment
|
||||||||
SFR mortgage
|
6,462,610 | 5,441,521 | ||||||
Consumer construction
|
1,985,738 | 1,656,963 | ||||||
Builder construction
|
1,018,891 | 838,772 | ||||||
HELOC
|
28,815 | 31,882 | ||||||
Land and other mortgage
|
366,984 | 260,615 | ||||||
Revolving warehouse lines of credit
|
166,948 | 48,616 | ||||||
Allowance for loan losses
|
(61,035 | ) | (55,168 | ) | ||||
Total loans held for investment
|
9,968,951 | 8,223,201 | ||||||
Total loans receivable
($13.1 billion and $10.2 billion pledged as collateral
for borrowings at September 30, 2006 and December 31,
2005, respectively)
|
18,309,873 | 14,247,385 | ||||||
Mortgage servicing rights
|
1,631,316 | 1,094,490 | ||||||
Investment in Federal Home
Loan Bank stock
|
636,650 | 556,262 | ||||||
Interest receivable
|
207,868 | 131,644 | ||||||
Goodwill and other intangible
assets
|
113,037 | 80,847 | ||||||
Foreclosed assets
|
18,498 | 8,817 | ||||||
Other assets
|
996,754 | 788,172 | ||||||
Total assets
|
$ | 27,385,483 | $ | 21,452,299 | ||||
62
September 30, |
December 31, |
|||||||
2006 | 2005 | |||||||
(Unaudited) | ||||||||
(Dollars in thousands) | ||||||||
LIABILITIES AND
SHAREHOLDERS’ EQUITY
|
||||||||
Deposits
|
$ | 10,111,019 | $ | 7,671,924 | ||||
Advances from Federal Home
Loan Bank
|
9,332,800 | 6,953,000 | ||||||
Other borrowings
|
4,594,920 | 4,367,270 | ||||||
Other liabilities
|
1,408,912 | 916,664 | ||||||
Total liabilities
|
25,447,651 | 19,908,858 | ||||||
Shareholders’ Equity
|
||||||||
Preferred stock —
authorized, 10,000,000 shares of $0.01 par value; none
issued
|
— | — | ||||||
Common stock —
authorized, 200,000,000 shares of $0.01 par value;
issued 100,100,243 shares (70,858,660 outstanding) at
September 30, 2006, and issued 93,436,622 shares
(64,246,767 outstanding) at December 31, 2005
|
1,001 | 934 | ||||||
Additional
paid-in-capital
|
1,533,528 | 1,318,751 | ||||||
Accumulated other comprehensive
loss
|
(21,377 | ) | (15,157 | ) | ||||
Retained earnings
|
947,158 | 759,330 | ||||||
Treasury stock,
29,241,583 shares and 29,189,855 shares at
September 30, 2006 and December 31, 2005, respectively
|
(522,478 | ) | (520,417 | ) | ||||
Total shareholders’ equity
|
1,937,832 | 1,543,441 | ||||||
Total liabilities and
shareholders’ equity
|
$ | 27,385,483 | $ | 21,452,299 | ||||
63
For the Three Months |
For the Nine Months |
|||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(Unaudited) |
||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
Interest income
|
||||||||||||||||
Mortgage-backed and other securities
|
$ | 86,212 | $ | 52,624 | $ | 233,693 | $ | 151,649 | ||||||||
Loans held for sale
|
||||||||||||||||
SFR mortgage
|
172,898 | 114,267 | 485,940 | 264,939 | ||||||||||||
HELOC
|
21,888 | 9,288 | 58,548 | 21,642 | ||||||||||||
Consumer lot loans
|
2,138 | 2,414 | 7,076 | 6,527 | ||||||||||||
Total loans held for sale
|
196,924 | 125,969 | 551,564 | 293,108 | ||||||||||||
Loans held for investment
|
||||||||||||||||
SFR mortgage
|
80,623 | 60,906 | 230,271 | 171,508 | ||||||||||||
Consumer construction
|
32,087 | 20,440 | 84,609 | 59,097 | ||||||||||||
Builder construction
|
27,396 | 18,086 | 73,960 | 46,614 | ||||||||||||
Land and other mortgage
|
8,211 | 4,651 | 23,003 | 11,982 | ||||||||||||
HELOC
|
622 | 535 | 1,863 | 1,659 | ||||||||||||
Revolving warehouse lines of credit
|
2,549 | 474 | 5,139 | 644 | ||||||||||||
Total loans held for investment
|
151,488 | 105,092 | 418,845 | 291,504 | ||||||||||||
Other
|
12,127 | 8,098 | 32,706 | 19,534 | ||||||||||||
Total interest income
|
446,751 | 291,783 | 1,236,808 | 755,795 | ||||||||||||
Interest expense
|
||||||||||||||||
Deposits
|
113,758 | 52,261 | 280,841 | 132,479 | ||||||||||||
Advances from Federal Home
Loan Bank
|
115,769 | 76,907 | 329,846 | 193,711 | ||||||||||||
Other borrowings
|
80,513 | 49,796 | 232,046 | 114,293 | ||||||||||||
Total interest expense
|
310,040 | 178,964 | 842,733 | 440,483 | ||||||||||||
Net interest income
|
136,711 | 112,819 | 394,075 | 315,312 | ||||||||||||
Provision for loan
losses
|
4,988 | 3,528 | 11,040 | 8,425 | ||||||||||||
Net interest income after provision
for loan losses
|
131,723 | 109,291 | 383,035 | 306,887 | ||||||||||||
Other income
|
||||||||||||||||
Gain on sale of loans
|
160,225 | 151,086 | 503,083 | 454,785 | ||||||||||||
Service fee income
|
21,058 | 10,304 | 79,194 | 25,521 | ||||||||||||
Gain on mortgage-backed securities,
net
|
18,968 | 728 | 24,611 | 11,933 | ||||||||||||
Fee and other income
|
13,600 | 11,285 | 37,276 | 25,588 | ||||||||||||
Total other income
|
213,851 | 173,403 | 644,164 | 517,827 | ||||||||||||
Net revenues
|
345,574 | 282,694 | 1,027,199 | 824,714 | ||||||||||||
Other expense
|
||||||||||||||||
Operating expenses
|
202,698 | 153,860 | 578,148 | 455,221 | ||||||||||||
Amortization of other intangible
assets
|
430 | 145 | 694 | 452 | ||||||||||||
Total other expense
|
203,128 | 154,005 | 578,842 | 455,673 | ||||||||||||
Earnings before provision for
income taxes and minority interests
|
142,446 | 128,689 | 448,357 | 369,041 | ||||||||||||
Provision for income taxes
|
56,266 | 50,746 | 176,545 | 145,343 | ||||||||||||
Net earnings before minority
interests
|
86,180 | 77,943 | 271,812 | 223,698 | ||||||||||||
Minority interests
|
— | 417 | 1,124 | 1,008 | ||||||||||||
Net earnings
|
$ | 86,180 | $ | 77,526 | $ | 270,688 | $ | 222,690 | ||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$ | 1.25 | $ | 1.23 | $ | 4.07 | $ | 3.57 | ||||||||
Diluted
|
$ | 1.19 | $ | 1.16 | $ | 3.87 | $ | 3.38 | ||||||||
Weighted-average shares
outstanding:
|
||||||||||||||||
Basic
|
68,866 | 63,268 | 66,570 | 62,460 | ||||||||||||
Diluted
|
72,286 | 67,100 | 70,009 | 65,908 | ||||||||||||
Dividends declared per
share
|
$ | 0.48 | $ | 0.40 | $ | 1.38 | $ | 1.14 |
64
Accumulated |
||||||||||||||||||||||||||||||||
Additional |
Other |
Total |
Total |
|||||||||||||||||||||||||||||
Shares |
Common |
Paid-In- |
Comprehensive |
Retained |
Comprehensive |
Treasury |
Shareholders’ |
|||||||||||||||||||||||||
Outstanding | Stock | Capital | Loss | Earnings | Income | Stock | Equity | |||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Balance at December 31,
2004
|
61,995,480 | $ | 912 | $ | 1,186,682 | $ | (20,304 | ) | $ | 616,516 | $ | — | $ | (519,835 | ) | $ | 1,263,971 | |||||||||||||||
Cumulative-effect adjustment due to
change in accounting for common stock options
|
— | — | 68,111 | — | (51,811 | ) | — | — | 16,300 | |||||||||||||||||||||||
Balance at December 31,
2004, retrospectively adjusted (see Note 2)
|
61,995,480 | 912 | 1,254,793 | (20,304 | ) | 564,705 | — | (519,835 | ) | 1,280,271 | ||||||||||||||||||||||
Exercises of common stock options
|
1,800,610 | 18 | 42,727 | — | — | — | — | 42,745 | ||||||||||||||||||||||||
Exercises of warrants
|
138,794 | 1 | 3,035 | — | — | — | — | 3,036 | ||||||||||||||||||||||||
Compensation expenses for common
stock options
|
— | — | 9,211 | — | — | — | — | 9,211 | ||||||||||||||||||||||||
Net officers’ notes receivable
payments
|
— | — | 25 | — | — | — | — | 25 | ||||||||||||||||||||||||
Deferred compensation, restricted
stock, and amortization net of forfeitures
|
265,450 | 3 | 3,872 | — | — | — | — | 3,875 | ||||||||||||||||||||||||
Net unrealized loss on
mortgage-backed securities available for sale
|
— | — | — | (11,688 | ) | — | (11,688 | ) | — | (11,688 | ) | |||||||||||||||||||||
Net unrealized gain on derivatives
used in cash flow hedges
|
— | — | — | 18,833 | — | 18,833 | — | 18,833 | ||||||||||||||||||||||||
Purchases of common stock
|
(16,352 | ) | — | — | — | — | — | (579 | ) | (579 | ) | |||||||||||||||||||||
Cash dividends
|
— | — | — | — | (71,786 | ) | — | — | (71,786 | ) | ||||||||||||||||||||||
Net earnings, retrospectively
adjusted (see Note 2)
|
— | — | — | — | 222,690 | 222,690 | — | 222,690 | ||||||||||||||||||||||||
Total comprehensive income
|
— | — | — | — | — | $ | 229,835 | — | — | |||||||||||||||||||||||
Balance at September 30,
2005, retrospectively adjusted
|
64,183,982 | $ | 934 | $ | 1,313,663 | $ | (13,159 | ) | $ | 715,609 | $ | (520,414 | ) | $ | 1,496,633 | |||||||||||||||||
Balance at December 31,
2005
|
64,246,767 | $ | 934 | $ | 1,242,500 | $ | (15,157 | ) | $ | 818,241 | $ | — | $ | (520,417 | ) | $ | 1,526,101 | |||||||||||||||
Cumulative-effect adjustment due to
change in accounting for common stock options
|
— | — | 76,251 | — | (58,911 | ) | — | — | 17,340 | |||||||||||||||||||||||
Balance at December 31,
2005, retrospectively adjusted
|
64,246,767 | 934 | 1,318,751 | (15,157 | ) | 759,330 | — | (520,417 | ) | 1,543,441 | ||||||||||||||||||||||
Cumulative-effect adjustment due to
change in accounting for MSRs
|
— | — | — | — | 10,624 | — | — | 10,624 | ||||||||||||||||||||||||
Issuance of common stock
|
2,969,165 | 30 | 123,696 | — | — | — | — | 123,726 | ||||||||||||||||||||||||
Exercises of common stock options
|
800,993 | 8 | 21,807 | — | — | — | — | 21,815 | ||||||||||||||||||||||||
Exercises of warrants
|
2,466,974 | 25 | 54,125 | — | — | — | — | 54,150 | ||||||||||||||||||||||||
Compensation expenses for common
stock options
|
— | — | 7,386 | — | — | — | — | 7,386 | ||||||||||||||||||||||||
Net officers’ notes receivable
payments
|
— | — | 100 | — | — | — | — | 100 | ||||||||||||||||||||||||
Deferred compensation, restricted
stock, and amortization net of forfeitures
|
426,489 | 4 | 7,663 | — | — | — | — | 7,667 | ||||||||||||||||||||||||
Net unrealized gain on
mortgage-backed securities available for sale
|
— | — | — | 7,816 | — | 7,816 | — | 7,816 | ||||||||||||||||||||||||
Net unrealized loss on derivatives
used in cash flow hedges
|
— | — | — | (14,036 | ) | — | (14,036 | ) | — | (14,036 | ) | |||||||||||||||||||||
Purchases of common stock
|
(51,728 | ) | — | — | — | — | — | (2,061 | ) | (2,061 | ) | |||||||||||||||||||||
Cash dividends
|
— | — | — | — | (93,484 | ) | — | — | (93,484 | ) | ||||||||||||||||||||||
Net earnings
|
— | — | — | — | 270,688 | 270,688 | — | 270,688 | ||||||||||||||||||||||||
Total comprehensive income
|
— | — | — | — | — | $ | 264,468 | — | — | |||||||||||||||||||||||
Balance at September 30,
2006
|
70,858,660 | $ | 1,001 | $ | 1,533,528 | $ | (21,377 | ) | $ | 947,158 | $ | (522,478 | ) | $ | 1,937,832 | |||||||||||||||||
65
For the Nine Months |
||||||||
Ended September 30, | ||||||||
2006 | 2005 | |||||||
(Unaudited) | ||||||||
(Dollars in thousands) | ||||||||
Cash flows from operating
activities:
|
||||||||
Net earnings
|
$ | 270,688 | $ | 222,690 | ||||
Adjustments to reconcile net
earnings to net cash used in operating activities:
|
||||||||
Gain on sale of loans
|
(503,083 | ) | (454,785 | ) | ||||
Compensation expenses related to
stock options and restricted stocks
|
15,053 | 13,086 | ||||||
Other amortization and depreciation
|
54,240 | 38,916 | ||||||
Change in valuation of mortgage
servicing rights, including amortization
|
243,339 | 184,384 | ||||||
Gain on mortgage-backed securities,
net
|
(24,611 | ) | (11,933 | ) | ||||
Provision for loan losses
|
11,040 | 8,425 | ||||||
Net increase in deferred tax
liability
|
186,127 | 113,585 | ||||||
Net decrease (increase) in other
assets and liabilities
|
38,742 | (10,732 | ) | |||||
Net cash provided by operating
activities before activity for trading securities and loans held
for sale
|
291,535 | 103,636 | ||||||
Net sales of trading securities
|
245,560 | 74,550 | ||||||
Net purchases and originations of
loans held for sale
|
(5,933,894 | ) | (3,177,009 | ) | ||||
Net cash used in operating
activities
|
(5,396,799 | ) | (2,998,823 | ) | ||||
Cash flows from investing
activities:
|
||||||||
Net sales of and payments from
loans held for investment
|
463,732 | 763,209 | ||||||
Purchases of mortgage-backed
securities available for sale
|
(570,884 | ) | (602,285 | ) | ||||
Proceeds from sales of and
principal payments from mortgage-backed securities available for
sale
|
652,610 | 660,467 | ||||||
Net increase in investment in
Federal Home Loan Bank stock, at cost
|
(80,388 | ) | (148,140 | ) | ||||
Net decrease (increase) in real
estate investment
|
7,483 | (27,495 | ) | |||||
Net purchases of property, plant
and equipment
|
(74,465 | ) | (63,082 | ) | ||||
Purchase of Financial Freedom
minority interest
|
(40,000 | ) | — | |||||
Net cash provided by investing
activities
|
358,088 | 582,674 | ||||||
Cash flows from financing
activities:
|
||||||||
Net increase in deposits
|
2,436,235 | 1,515,565 | ||||||
Net increase in advances from
Federal Home Loan Bank
|
2,379,800 | 459,000 | ||||||
Net increase in borrowings
|
97,920 | 419,991 | ||||||
Net proceeds from issuance of
common stock
|
123,726 | — | ||||||
Net proceeds from issuance of trust
preferred securities
|
128,000 | — | ||||||
Redemption of trust preferred
securities
|
(28,587 | ) | — | |||||
Net proceeds from stock options,
warrants and notes receivable
|
76,065 | 45,806 | ||||||
Cash dividends paid
|
(93,484 | ) | (71,786 | ) | ||||
Purchases of common stock
|
(2,061 | ) | (579 | ) | ||||
Net cash provided by financing
activities
|
5,117,614 | 2,367,997 | ||||||
Net increase (decrease) in cash and
cash equivalents
|
78,903 | (48,152 | ) | |||||
Cash and cash equivalents at
beginning of period
|
442,525 | 356,157 | ||||||
Cash and cash equivalents at end of
period
|
$ | 521,428 | $ | 308,005 | ||||
Supplemental cash flow
information:
|
||||||||
Cash paid for interest
|
$ | 779,203 | $ | 394,625 | ||||
Cash (received) paid for income
taxes
|
$ | (48,685 | ) | $ | 69,935 | |||
Supplemental disclosure of
non-cash investing and financing activities:
|
||||||||
Net transfer of loans held for sale
to loans held for investment
|
$ | 2,258,617 | $ | 2,032,052 | ||||
Net transfer of mortgage servicing
rights to trading securities
|
$ | 2,601 | $ | 8,491 | ||||
66
Q1 2005 | Q2 2005 | Q3 2005 | Q4 2005 | YTD 2005 | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Reported net earnings
|
$ | 65,476 | $ | 83,146 | $ | 79,275 | $ | 72,329 | $ | 300,226 | ||||||||||
Retrospective application of
SFAS No. 123(R)
|
2,026 | 1,432 | 1,749 | 1,891 | 7,098 | |||||||||||||||
Adjusted net earnings
|
$ | 63,450 | $ | 81,714 | $ | 77,526 | $ | 70,438 | $ | 293,128 | ||||||||||
Adjusted average dilutive shares
|
64,830 | 65,793 | 67,100 | 66,737 | 66,115 | |||||||||||||||
Reported dilutive earnings per
share
|
$ | 1.01 | $ | 1.26 | $ | 1.18 | $ | 1.09 | $ | 4.54 | ||||||||||
Adjusted dilutive earnings per
share
|
$ | 0.98 | $ | 1.24 | $ | 1.16 | $ | 1.06 | $ | 4.43 |
67
68
September 30, |
December 31, |
|||||||
2006 | 2005 | |||||||
(Dollars in thousands) | ||||||||
Mortgage-backed
securities — Trading
|
||||||||
AAA-rated non-agency securities
|
$ | 33,829 | $ | 52,633 | ||||
AAA-rated and agency interest-only
securities
|
68,440 | 78,731 | ||||||
AAA-rated principal-only securities
|
35,158 | 9,483 | ||||||
Prepayment penalty securities
|
98,422 | 75,741 | ||||||
Other investment grade securities
|
29,906 | 8,830 | ||||||
Other non-investment grade
securities
|
38,999 | 4,480 | ||||||
Non-investment grade residual
securities
|
222,825 | 119,064 | ||||||
Total mortgage-backed
securities — Trading
|
$ | 527,579 | $ | 348,962 | ||||
Mortgage-backed securities and
agency notes — Available for sale
|
||||||||
AAA-rated non-agency securities
|
$ | 4,130,995 | $ | 3,524,952 | ||||
AAA-rated agency securities
|
50,084 | 43,014 | ||||||
Other investment grade securities
|
163,289 | 83,290 | ||||||
Other non-investment grade
securities
|
39,279 | 53,232 | ||||||
Non-investment grade residual
securities
|
38,833 | 48,707 | ||||||
Total mortgage-backed securities
and agency notes — Available for sale
|
$ | 4,422,480 | $ | 3,753,195 | ||||
69
As of September 30, 2006 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Unrealized |
Unrealized |
Unrealized |
||||||||||||||||||||||
Losses | Fair Value | Losses | Fair Value | Losses | Fair Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Securities — Available
for Sale:
|
||||||||||||||||||||||||
AAA-rated agency securities
|
$ | (308 | ) | $ | 32,069 | $ | (5 | ) | $ | 184 | $ | (313 | ) | $ | 32,253 | |||||||||
AAA-rated non-agency securities
|
(177 | ) | 129,915 | (40,660 | ) | 1,740,227 | (40,837 | ) | 1,870,142 | |||||||||||||||
Other investment grade securities
|
(412 | ) | 20,017 | (2,049 | ) | 26,749 | (2,461 | ) | 46,766 | |||||||||||||||
Total Securities —
Available for Sale
|
$ | (897 | ) | $ | 182,001 | $ | (42,714 | ) | $ | 1,767,160 | $ | (43,611 | ) | $ | 1,949,161 | |||||||||
Mortgage Banking | ||||||||||||||||||||
MSRs and |
||||||||||||||||||||
Production |
Retained |
Total |
||||||||||||||||||
Divisions | Assets | Thrift | Other | Company | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Three months ended
September 30, 2006
|
||||||||||||||||||||
Net interest income
|
$ | 41,218 | $ | 17,429 | $ | 67,185 | $ | 10,879 | $ | 136,711 | ||||||||||
Net revenues (expense)
|
204,391 | 65,653 | 84,842 | (9,312 | ) | 345,574 | ||||||||||||||
Net earnings (loss)
|
68,635 | 30,404 | 35,232 | (48,091 | ) | 86,180 | ||||||||||||||
Allocated average capital
|
509,136 | 401,545 | 687,962 | 272,736 | 1,871,379 | |||||||||||||||
Assets as of September 30,
2006
|
$ | 7,687,438 | $ | 2,797,416 | $ | 15,952,532 | $ | 948,097 | $ | 27,385,483 | ||||||||||
Return on equity
|
53 | % | 30 | % | 20 | % | N/A | 18 | % | |||||||||||
Three months ended
September 30, 2005
|
||||||||||||||||||||
Net interest income
|
$ | 34,695 | $ | 11,242 | $ | 60,076 | $ | 6,806 | $ | 112,819 | ||||||||||
Net revenues (expense)
|
175,465 | 25,021 | 81,866 | 342 | 282,694 | |||||||||||||||
Net earnings (loss)
|
64,817 | 9,564 | 36,239 | (33,094 | ) | 77,526 | ||||||||||||||
Allocated average capital
|
415,031 | 189,744 | 546,094 | 264,492 | 1,415,361 | |||||||||||||||
Assets as of September 30,
2005
|
$ | 4,618,997 | $ | 1,559,104 | $ | 12,359,345 | $ | 1,090,298 | $ | 19,627,744 | ||||||||||
Return on equity
|
62 | % | 20 | % | 26 | % | N/A | 22 | % |
70
Mortgage Banking | ||||||||||||||||||||
MSRs and |
||||||||||||||||||||
Production |
Retained |
Total |
||||||||||||||||||
Divisions | Assets | Thrift | Other | Company | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nine months ended
September 30, 2006
|
||||||||||||||||||||
Net interest income
|
$ | 122,119 | $ | 44,739 | $ | 202,152 | $ | 25,065 | $ | 394,075 | ||||||||||
Net revenues (expense)
|
621,018 | 158,376 | 263,532 | (15,727 | ) | 1,027,199 | ||||||||||||||
Net earnings (loss)
|
217,969 | 72,650 | 112,163 | (132,094 | ) | 270,688 | ||||||||||||||
Allocated average capital
|
513,941 | 350,293 | 665,017 | 208,934 | 1,738,185 | |||||||||||||||
Assets as of September 30,
2006
|
$ | 7,687,438 | $ | 2,797,416 | $ | 15,952,532 | $ | 948,097 | $ | 27,385,483 | ||||||||||
Return on equity
|
57 | % | 28 | % | 23 | % | N/A | 21 | % | |||||||||||
Nine months ended
September 30, 2005
|
||||||||||||||||||||
Net interest income
|
$ | 83,810 | $ | 36,262 | $ | 172,000 | $ | 23,240 | $ | 315,312 | ||||||||||
Net revenues (expense)
|
549,896 | 66,172 | 230,446 | (21,800 | ) | 824,714 | ||||||||||||||
Net earnings (loss)
|
207,970 | 25,304 | 102,761 | (113,345 | ) | 222,690 | ||||||||||||||
Allocated average capital
|
337,572 | 183,162 | 505,144 | 315,063 | 1,340,941 | |||||||||||||||
Assets as of September 30,
2005
|
$ | 4,618,997 | $ | 1,559,104 | $ | 12,359,345 | $ | 1,090,298 | $ | 19,627,744 | ||||||||||
Return on equity
|
82 | % | 18 | % | 27 | % | N/A | 22 | % |
71
2006 | 2005 | |||||||
Expected volatility
|
28.11-28.44 | % | 27.55-29.42 | % | ||||
Expected dividends
|
4.00-4.60 | % | 3.52-4.07 | % | ||||
Weighted average expected term (in
years)
|
6.89-7.34 | 5.00 | ||||||
Risk-free rate
|
4.54-4.73 | % | 4.16-4.54 | % |
Weighted |
||||||||||||||||
Weighted- |
Average |
|||||||||||||||
Average |
Remaining |
|||||||||||||||
Exercise |
Contractual |
Aggregate |
||||||||||||||
Options:
|
Shares | Price | Term | Fair Value | ||||||||||||
(In thousands) | ||||||||||||||||
Options outstanding at
June 30, 2006
|
7,969,272 | $ | 26.37 | |||||||||||||
Options granted
|
— | — | ||||||||||||||
Options exercised
|
(157,440 | ) | 25.15 | |||||||||||||
Options canceled, forfeited and
expired
|
(29,293 | ) | 35.94 | |||||||||||||
Options outstanding at
September 30, 2006
|
7,782,539 | $ | 26.36 | 6.04 | $ | 59,132 | ||||||||||
Options exercisable at
September 30, 2006
|
5,724,701 | $ | 23.74 | 5.29 | $ | 42,504 | ||||||||||
72
Weighted |
||||||||||||||||
Weighted- |
Average |
|||||||||||||||
Average |
Remaining |
|||||||||||||||
Exercise |
Contractual |
Aggregate |
||||||||||||||
Options:
|
Shares | Price | Term | Fair Value | ||||||||||||
(In thousands) | ||||||||||||||||
Options outstanding at
December 31, 2005
|
7,851,820 | $ | 24.82 | |||||||||||||
Options granted
|
788,140 | 39.11 | ||||||||||||||
Options exercised
|
(797,584 | ) | 23.06 | |||||||||||||
Options canceled, forfeited and
expired
|
(59,837 | ) | 36.13 | |||||||||||||
Options outstanding at
September 30, 2006
|
7,782,539 | $ | 26.36 | 6.04 | $ | 59,132 | ||||||||||
Options exercisable at
September 30, 2006
|
5,724,701 | $ | 23.74 | 5.29 | $ | 42,504 | ||||||||||
Weighted-Average |
||||||||
Grant-Date |
||||||||
Fair Value |
||||||||
Nonvested Options:
|
Shares | per Share | ||||||
Nonvested at December 31, 2005
|
2,660,324 | $ | 7.54 | |||||
Granted
|
788,140 | 9.13 | ||||||
Vested
|
(1,333,933 | ) | 7.62 | |||||
Canceled, forfeited and expired
|
(56,693 | ) | 8.19 | |||||
Nonvested at September 30,
2006
|
2,057,838 | $ | 8.08 | |||||
73
Weighted-Average |
||||||||
Grant-Date |
||||||||
Fair Value |
||||||||
Restricted Stock:
|
Shares | per Share | ||||||
Nonvested at June 30, 2006
|
799,861 | $ | 38.05 | |||||
Granted
|
68,622 | 41.81 | ||||||
Vested
|
(5,253 | ) | 24.43 | |||||
Canceled and forfeited
|
(22,937 | ) | 38.51 | |||||
Nonvested at September 30,
2006
|
840,293 | $ | 38.53 | |||||
Weighted-Average |
||||||||
Grant-Date |
||||||||
Fair Value |
||||||||
Restricted Stock:
|
Shares | per Share | ||||||
Nonvested at December 31, 2005
|
582,401 | $ | 32.59 | |||||
Granted
|
485,671 | 40.32 | ||||||
Vested
|
(170,175 | ) | 24.20 | |||||
Canceled and forfeited
|
(57,604 | ) | 37.89 | |||||
Nonvested at September 30,
2006
|
840,293 | $ | 38.53 | |||||
Three Months |
Nine Months |
|||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Service cost
|
$ | 1,575 | $ | 1,486 | $ | 4,725 | $ | 4,458 | ||||||||
Interest cost
|
568 | 453 | 1,704 | 1,359 | ||||||||||||
Expected return on assets
|
(582 | ) | (440 | ) | (1,746 | ) | (1,320 | ) | ||||||||
Recognized actuarial loss
|
81 | 85 | 243 | 255 | ||||||||||||
Amortization of prior service cost
|
14 | 14 | 42 | 42 | ||||||||||||
Net periodic expense
|
$ | 1,656 | $ | 1,598 | $ | 4,968 | $ | 4,794 | ||||||||
74
Three Months |
||||||||
Ended September 30, | ||||||||
2006 | 2005 | |||||||
Assumed discount rate
|
6.00 | % | 6.00 | % | ||||
Rate of compensation increase
|
4.00 | % | 4.00 | % | ||||
Expected return on assets
|
7.50 | % | 7.50 | % |
75
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 5. | OTHER INFORMATION |
76
ITEM 6. | EXHIBITS |
4.1
|
2000 Stock Incentive Plan, as amended. | |
4.2
|
2002 Incentive Plan, as amended and restated, as amended. | |
10.1
|
Board Compensation Policy and Stock Ownership Requirements. | |
31.1
|
Chief Executive Officer’s Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2
|
Chief Financial Officer’s Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1
|
Chief Executive Officer’s Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2
|
Chief Financial Officer’s Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
77
By: |
/s/ Michael
W. Perry
|
By: |
/s/ Scott
Keys
|
78
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/15/08 | ||||
11/15/07 | 4 | |||
1/1/07 | 3 | |||
12/31/06 | 10-K, 11-K, 5 | |||
12/15/06 | ||||
12/7/06 | ||||
11/9/06 | ||||
Filed on: | 11/2/06 | 8-K | ||
10/27/06 | ||||
10/24/06 | ||||
10/4/06 | ||||
For Period End: | 9/30/06 | |||
9/15/06 | ||||
7/3/06 | ||||
7/1/06 | 8-K | |||
6/30/06 | 10-Q, 424B5, S-3ASR | |||
4/25/06 | 10-Q, 8-K, DEF 14A | |||
3/31/06 | 10-Q | |||
3/15/06 | 4 | |||
1/1/06 | ||||
12/31/05 | 10-K, 11-K, 5 | |||
9/30/05 | 10-Q | |||
12/31/04 | 10-K, 11-K | |||
1/1/04 | ||||
7/1/03 | ||||
1/1/03 | ||||
12/31/02 | 10-K, 11-K | |||
11/14/01 | ||||
List all Filings |