-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TL1mKd5QovUBkg0z3tPy1FT3H9EB+DnuwOdw8/R7fHPsK6EdD4iZ0MFB7eAC7hP5 oMQiGsCZxWHl7PE8kMqZ7w== 0000899078-05-000101.txt : 20050211 0000899078-05-000101.hdr.sgml : 20050211 20050211131158 ACCESSION NUMBER: 0000899078-05-000101 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050210 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050211 DATE AS OF CHANGE: 20050211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MATRIX BANCORP INC CENTRAL INDEX KEY: 0000944725 STANDARD INDUSTRIAL CLASSIFICATION: MORTGAGE BANKERS & LOAN CORRESPONDENTS [6162] IRS NUMBER: 841233716 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21231 FILM NUMBER: 05596738 MAIL ADDRESS: STREET 1: 700 17TH STREET STREET 2: SUITE 2100 CITY: DENVER STATE: CO ZIP: 80202 FORMER COMPANY: FORMER CONFORMED NAME: MATRIX CAPITAL CORP /CO/ DATE OF NAME CHANGE: 19960711 8-K 1 feb2005-form8k.txt FORM 8-K DATED FEBRUARY 10, 2005 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) February 10, 2005 ----------------------- Matrix Bancorp, Inc. - ------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Colorado - ------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 0-21231 84-1233716 - ------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 700 Seventeenth Street, Suite 2100 Denver, Colorado 80202 - ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (303) 595-9898 - ------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) - ------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION The information in this Current Report and in the accompanying exhibit is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. On February 10, 2005, Matrix Bancorp, Inc. issued a press release announcing financial results for the quarter ended December 31, 2004. A copy of this press release is attached hereto as Exhibit 99.1. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (a) Financial Statements of Businesses Acquired. Not applicable. (b) Pro Forma Financial Information. Not applicable. (c) Exhibits. 99.1 Press Release, dated February 10, 2005, announcing financial results for the quarter ended December 31, 2004. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: February 11, 2005 MATRIX BANCORP, INC. By: /s/ Allen McConnell Name: Allen McConnell Title: Senior Vice President EXHIBIT INDEX Exhibit No. Description 99.1 Press Release, dated February 10, 2005, announcing financial results for the quarter ended December 31, 2004. EX-99 2 feb2005-exhibit99.txt EXHIBIT 99.1, PRESS RELEASE - 02/10/2005 EXHIBIT 99.1 [GRAPHIC OMITTED] For more information, please contact: David W. Kloos Chief Financial Officer (303) 595-9898 [GRAPHIC OMITTED] MATRIX BANCORP ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2004 EARNINGS February 10, 2004 Denver, Colorado -- Matrix Bancorp, Inc. (NASDAQ: MTXC) (the "Company") today reported net income of $9.6 million for the quarter ended December 31, 2004, or $1.48 per basic and $1.45 per diluted share, as compared to $1.0 million, or $0.16 per basic and diluted share for the quarter ended December 31, 2003. Net income for the quarter ended December 31, 2004 was positively impacted by two separate transactions during the quarter, the first being the sale of Matrix Capital Bank's branch in Sun City, Arizona, on which an after-tax gain of approximately $3.0 million is included in net income, and the second being a $5.0 million after-tax gain on the sale of our joint venture interest in Matrix Settlement and Clearance Services, LLC ("MSCS"), both of which are discussed more fully below. Offsetting a portion of the impact of the transactions was an after-tax charge of approximately $830 thousand related to the transfer of the servicing rights to a third party subservicer, also discussed more fully below. The net income for the quarter ended December 31, 2003 consisted of income from continuing operations of $650 thousand, or $0.10 per basic and diluted share, and income from discontinued operations of $370 thousand, or $0.06 per basic and diluted share. Richard V. Schmitz, Chairman and Co-CEO noted, "As announced on November 30, 2004, we have sold our 45% membership interest in MSCS. As part of the same transaction, we have agreed to sell substantially all of the assets of the trust operations of Matrix Capital Bank utilized to serve as custodian or trustee for various customers of MSCS in connection with the MSCS mutual fund clearing and settlement activities (the "trust operations assets"), subject to necessary regulatory approvals and other customary conditions. The purchaser is an entity which is controlled by the principals of our previous joint venture partner in MSCS. In consideration of the sale of the 45% membership interest, we received cash and an approximate 5% interest in the new company formed to continue the operations of MSCS. This portion of the transaction closed during the fourth quarter 2004. Upon the sale of the trust operations assets, the Company will receive an additional approximate 2% interest in the new company. The recording of the sale of the assets of the trust operations will be made at the time the consummation of the sale of the trust operations assets. We have also entered into an agreement that continues the depositary relationship at Matrix Capital Bank through at least September 30, 2006 with the new company." D. Mark Spencer, President and Co-CEO noted, "The sale of Matrix Capital Bank's retail branch in Sun City, Arizona closed on November 1, 2004. The sale included approximately $100.0 million of deposits, as well as the real estate and fixed assets associated with the branch. We anticipate that the sale will have a favorable impact on Matrix Capital Bank from an earnings and operational standpoint, will have limited impact on the liquidity of Matrix Capital Bank, and will allow Matrix Capital Bank to reduce costs associated with the operations of this retail branch location." -1- Net income for the year ended December 31, 2004 totals $21.9 million, or $3.36 per basic and $3.30 per diluted share, as compared to $2.3 million, or $0.36 per basic and diluted share for the year ended December 31, 2003. The net income for the year ended December 31, 2004 consists of income from continuing operations of $21.8 million, or $3.34 per basic and $3.28 per diluted share, and income from discontinued operations of $140 thousand, or $0.02 per basic and diluted share. The net income for the year ended December 31, 2003 consisted of a loss from continuing operations of $(1.0) million, or $(0.15) per basic and diluted share, and income from discontinued operations of $3.3 million, or $0.51 per basic and diluted share. Discontinued operations include the results of the wholesale production platform at Matrix Financial Services Corporation, which was sold in the third quarter of 2003. The earnings from discontinued operations in the year ended December 31, 2004 reflect a production premium payment of approximately $230 thousand, pursuant to the terms of the sale. Mr. Spencer commented, "2004 was a year of significant progress for the Company as we were successful in implementing many facets of our strategic plan. We have continued to reduce our exposure to the mortgage banking operations, as during the fourth quarter of 2004 we outsourced the servicing function of our servicing portfolio to a sub-servicer. This will allow us to lower our overall cost structure and convert a significant component of the servicing expense to more of a variable cost versus the fixed overhead that was associated with maintaining our own servicing platform, in line with our strategic goal of expense containment. As part of the move, we recorded a $1.4 million charge related to the write-off of fixed assets and lease obligations and retention packages associated with the servicing function. Over the course of the last 12 months, we have reduced our investment in mortgage servicing rights from approximately $39.7 million to $26.6 million. We may also explore opportunities in 2005 to sell or otherwise reduce our level of exposure to the mortgage servicing asset. The sale of the Las Cruces, New Mexico and Sun City, Arizona retail banking branches of Matrix Capital Bank will allow us to focus on growing our institutional depository relationships and reduce costs associated with the operations of the retail branch locations. We believe this will favorably impact earnings and operational activities, while having a limited impact on the liquidity of Matrix Capital Bank. On the growth side, we have had continued success in the core operations of Matrix Capital Bank, where loan and deposit balances have experienced sustained growth." Mr. Schmitz continued, "With regard to our fee based businesses, our strategic direction is to continue towards consistent and sustained growth in these business lines, and growing the synergies between the fee based business lines and our core banking operations. We have had another strong year at Matrix Bancorp Trading, where revenues increased 9% over 2003 levels. We utilize the expertise of Matrix Bancorp Trading to assist with opportune purchases and sales of loans and securities for Matrix Capital Bank's portfolio. We are pleased that we were able to retain a minority interest in the operations of Matrix Asset Management, LLC, in which we sold our majority interest effective September 1, 2004. We believe the continuing operations of the new company will experience sustained growth and positive performance. We are also satisfied that we retained a small interest in the new company formed from the sale of MSCS, and have been able to continue the banking relationship of the new company and its customers for Matrix Capital Bank. The strategic divestitures, along with our core operations, have allowed us to increase our capital base, increasing our book value to $13.94 per share at December 31, 2004, improved our liquidity and allowed us to pay down higher priced debt, thereby reducing our interest expense going forward." -2- The Company's assets totaled $1.89 billion on December 31, 2004, as compared to $1.72 billion at December 31, 2003. The increase is primarily due to purchases of loan portfolios and investment securities at Matrix Capital Bank, which was funded primarily by FHLBank borrowings, and growth in institutional deposits. Loans receivable increased $25.3 million, as compared to December 31, 2003, to $1.37 billion at December 31, 2004. The increase is primarily due to the purchase of single-family mortgage loan portfolios and origination of multi-family and commercial real estate loans at Matrix Capital Bank, offset partially by loans included in the sale of the Las Cruces branches of Matrix Capital Bank in the second quarter of 2004, and repayments and sales of mortgage loans at Matrix Capital Bank and Matrix Financial Services Corporation. Investment securities increased $163.9 million, as compared to December 31, 2003, to $316.4 million at December 31, 2004. This increase occurred due to the purchase of mortgage backed securities, primarily highly rated collateralized mortgage obligations, and pooling into securities of Small Business Administration ("SBA") loans at Matrix Capital Bank, which offset repayments on existing securities. Financial Highlights Net interest income before provision for loan and valuation losses totaled $11.4 million for the quarter ended December 31, 2004, as compared to $10.0 million for the quarter ended December 31, 2003. Net interest income before provision for loan and valuation losses totaled $42.6 million for the year ended December 31, 2004, as compared to $41.7 million for the year ended December 31, 2003. The Company's net interest margin decreased to 2.66% and 2.68% for the quarter and year ended December 31, 2004, respectively, as compared to 2.82% and 2.88% for the quarter and year ended December 31, 2003, respectively. The change in the net interest margin can be attributed primarily to a decrease in the average rate earned on average interest-earning assets to 4.70% and 4.68% for the quarter and year ended December 31, 2004, respectively, as compared to 4.93% and 5.08% for the quarter and year ended December 31, 2003, respectively. The average balance of interest-earning assets was $1.72 billion and $1.59 billion for the quarter and year ended December 31, 2004, as compared to $1.41 billion and $1.45 billion for the quarter and year ended December 31, 2003. The increase in the average balances as compared to prior year periods reduces the financial impact of the decrease in the rate earned. The effects of the decrease in average rate earned was also partially offset by a decrease in the rate on interest-bearing liabilities to 2.23% and 2.22% for the quarter and year ended December 31, 2004, respectively, as compared to 2.32% and 2.51% for the quarter and year ended December 31, 2003, respectively. The average balance of interest-bearing liabilities increased to $1.57 billion and $1.43 billion for the quarter and year ended December 31, 2004, respectively, as compared to $1.29 billion and $1.27 billion for the quarter and year ended December 31, 2003, which partially offsets the financial benefit of the decrease in the rate paid. Both the decrease in the yield on interest-earning assets and the cost of the interest-bearing liabilities are attributable to the continued low interest rate environment. The drop in yield on interest-earning assets can also be attributed to the sale of the production platform in the third quarter of 2003, as the yields in 2003 included a higher percentage of fixed rate loans related to our origination activities. Subsequent to the sale of the production platform, the fixed rate loans have been replaced by lower yielding adjustable rate and shorter-term fixed rate loans. The provision for loan and valuation losses was $980 thousand for the quarter ended December 31, 2004 and $3.3 million for the year ended December 31, 2004, as compared to $990 thousand for the quarter ended December 31, 2003 and $3.6 million for the year ended December 31, 2003. The slight decrease in the provision was due to the inclusion in the prior year of additional allowances recorded at Matrix Financial Services Corporation and Matrix Capital Bank at levels that are not present in the period ended December 31, 2004 as nonperforming assets are declining at both entities. -3- Noninterest income was $26.2 million and $88.4 million for the quarter and year ended December 31, 2004 as compared to $15.7 million and $69.3 million for the quarter and year ended December 31, 2003. Noninterest income for the quarter ended December 31, 2004 includes the $4.9 million pre-tax gain on sale of the Sun City, Arizona branch of Matrix Capital Bank, and the $8.2 million pre-tax gain on the sale of our 45% membership interest in MSCS. Noninterest income for the year ended December 31, 2004 also includes a $5.1 million pre-tax gain on the sale of the Las Cruces branches by Matrix Capital Bank, which occurred in the second quarter of 2004, and the $13.5 million pre-tax gain on the sale of substantially all of the assets of Matrix Asset Management Corporation ("Matrix Asset Management"), which occurred in the third quarter of 2004. Absent the gains on sale of other assets, noninterest income for the quarter ended December 31, 2004 declined due to lower loan administration income to $3.3 million for the quarter ended December 31, 2004 as compared to $4.7 million for the quarter ended December 31, 2003, due to approximately 30.1% lower average balance in our servicing portfolio on which fees are generated, and decreases in our real estate disposition services revenue to $340 thousand for the quarter ended December 31, 2004 as compared to $2.0 million for the quarter ended December 31, 2003 due to the sale of Matrix Asset Management discussed above. For the year ended December 31, 2004, income from loan administration declined $6.4 million to $15.3 million due to the decrease in the average balance of our servicing portfolio. Gain on sales of loans and securities declined as compared to the same period of 2003 by approximately $7.6 million to $6.6 million for the year ended December 31, 2004. The decline is due to marketplace conditions that caused a decrease in the volume of sales of single-family mortgage loans from our loan and servicing portfolios, and a decrease in sales of loans from our SBA loan portfolio. Noninterest expense was $23.1 million and $95.7 million for the quarter and year ended December 31, 2004, as compared to $24.2 million and $111.0 million for the quarter and year ended December 31, 2003. The fluctuations in our noninterest expense primarily relate to the amortization and impairments/recoveries of impairments associated with our mortgage servicing asset. Amortization of mortgage servicing rights for both the quarter and year ended December 31, 2004 as compared to the same prior year periods, declined by $1.7 million to $3.3 million for the quarter ended December 31, 2004 and $16.4 million to $16.1 million for the year ended December 31, 2004, due to an overall decrease in the outstanding balance of our mortgage servicing rights asset and despite prepayment speeds that remained high at 23.6% and 27.5% for the quarter and year ended December 31, 2004. We recognized a recovery of impairment on mortgage servicing rights of $250 thousand and $2.9 million for the quarter and year ended December 31, 2003, as compared to recoveries of $0 and $440 thousand for the quarter and year ended December 31, 2004. The level of recovery is based on the valuation of the mortgage servicing portfolio, and is impacted by changes in the interest rate environment, among other things. There was also a decrease of $1.5 million and $2.1 million for the quarter and year ended December 31, 2004 as compared to the same periods of 2003, respectively, in compensation and benefits expense to $6.9 million for the quarter ended December 31, 2004 and $32.9 million for the year ended December 31, 2004. This decrease is due to the overall decrease in the number of employees at the Company, which have been reduced with the Matrix Capital Bank branch sales and the sale of substantially all of the assets of Matrix Asset Management. These decreases were offset by increases in levels of subaccounting fees at Matrix Capital Bank of $1.5 million and $1.9 million for the quarter and year ended December 31, 2004, to $2.3 million and $7.7 million for the quarter and year ended December 31, 2004, respectively, due to increased levels of institutional deposits held on which subaccounting services are incurred. Finally, other general and administrative expenses for the year ended December 31, 2004 include the $3.0 million litigation accrual at Matrix Capital Bank related to the settlement with the Trustee in the Island Mortgage bankruptcy, where the year ended December 31, 2003 included $1.9 million in litigation settlements at Matrix Financial Services Corporation. For the quarter and year ended December 31, 2004, we have increases of $2.0 million and $3.0 million, respectively, in repurchase reserves and write-offs of receivables included in other general and administrative expenses due primarily to loans repurchased through representation and warranty provisions related to our discontinued mortgage loan origination business line. -4- Forward-Looking Statements Certain statements contained in this press release that are not historical facts, including, but not limited to, statements that can be identified by the use of forward-looking terminology such as "may," "expect," "anticipate," "predict," "believe," "plan," "estimate" or "continue" or the negative thereof or other variations thereon or comparable terminology, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties. The actual results of the future events described in such forward-looking statements in this press release could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: third party claims or actions in relation to the ongoing or future bankruptcies of the Company's customers; interest rate fluctuations; level of delinquencies; defaults and prepayments; general economic conditions; competition; government regulation; possible future litigation; the actions or inactions of third parties, and actions or inactions of those that are parties to the existing or future bankruptcies of the Company's customers or litigation related thereto; unanticipated developments in connection with the bankruptcy actions or litigation described above, including judicial variation from existing legal precedent and the decision by one or more parties to appeal decisions rendered; the risks and uncertainties discussed elsewhere in the annual report and in the Company's current report on Form 8-K, filed with the Securities and Exchange Commission on March 14, 2001; and the uncertainties set forth from time to time in the Company's periodic reports, filings and other public statements. -5-
MATRIX BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share information) December 31, December 31, 2004 2003 --------------------- -------------------- ASSETS (Unaudited) Cash and cash equivalents $ 40,471 $ 32,538 Interest-earning deposits and federal funds sold 2,398 1,972 Investment securities 316,367 152,508 Loans held for sale, net 989,822 999,454 Loans held for investment, net 379,717 344,802 Mortgage servicing rights, net 26,574 39,744 Other receivables 35,139 43,884 FHLBank stock, at cost 33,481 30,682 Premises and equipment, net 19,037 24,981 Bank owned life insurance 21,569 20,613 Foreclosed real estate 2,955 8,538 Other assets, net 21,330 24,208 --------------------- -------------------- Total assets $ 1,888,860 $ 1,723,924 ===================== ==================== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits $ 1,119,159 $ 974,059 Custodial escrow balances 51,598 85,466 FHLBank borrowings 506,118 458,204 Borrowed money 31,573 47,970 Junior subordinated debentures owed to unconsolidated subsidiary trusts 61,835 66,525 Other liabilities 23,955 18,508 Income taxes payable and deferred income tax liability 2,307 3,508 --------------------- -------------------- Total liabilities 1,796,545 1,654,240 Shareholders' equity: Common stock, $0.0001 par value 1 1 Additional paid-in capital 21,432 20,615 Retained earnings 70,756 48,859 Accumulated other comprehensive income 126 209 --------------------- -------------------- Total shareholders' equity 92,315 69,684 --------------------- -------------------- Total liabilities and shareholders' equity $ 1,888,860 $ 1,723,924 ===================== ====================
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MATRIX BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except share information) Quarter Ended Year ended December 31, December 31, 2004 2003 2004 2003 ------------ ----------- ----------- ------------ (unaudited) (unaudited) Interest and dividend income: Loans and securities $ 19,842 $ 17,135 $ 73,363 $ 72,667 Interest-earning deposits 339 276 1,063 1,040 ------------ ----------- ----------- ------------ Total interest and dividend income 20,181 17,411 74,426 73,707 Interest expense: Deposits 2,979 2,674 10,665 13,339 Borrowed money and junior subordinated debentures 5,796 4,771 21,134 18,660 ------------ ----------- ----------- ------------ Total interest expense 8,775 7,445 31,799 31,999 Net interest income before provision for loan and 11,406 9,966 42,627 41,708 valuation losses Provision for loan and valuation losses 981 990 3,269 3,641 ------------ ----------- ----------- ------------ Net interest income after provision for loan and 10,425 8,976 39,358 38,067 valuation losses Noninterest income: Loan administration 3,309 4,694 15,253 21,668 Brokerage 2,742 3,351 10,629 10,873 Trust services 2,088 1,804 7,853 6,781 Real estate disposition services 335 2,016 7,786 6,624 Gain on sale of loans and securities 2,234 1,912 6,618 14,267 Gain on sale of other assets 13,178 - 31,767 - School Services 592 634 2,871 2,420 Other 1,724 1,264 5,650 6,696 ------------ ----------- ----------- ------------ Total noninterest income 26,202 15,675 88,427 69,329 Noninterest expense: Compensation and employee benefits 6,941 8,443 32,891 34,984 Amortization of mortgage servicing rights 3,321 4,980 16,100 32,497 Occupancy and equipment 1,515 1,605 6,166 6,172 Postage and communication 371 554 2,001 2,435 Professional fees 708 976 3,242 3,357 Data processing 1,191 747 3,005 2,860 Subaccounting fees 2,259 754 7,738 5,845 Recovery of mortgage servicing rights impairment - (250) (444) (2,950) Other general and administrative 6,761 6,376 24,967 25,768 ------------ ----------- ----------- ------------ Total noninterest expense 23,067 24,185 95,666 110,968 Income (loss) from continuing operations before 13,560 466 32,119 (3,572) income taxes Income tax provision (benefit) 3,941 (185) 10,359 (2,575) ------------ ----------- ----------- ------------ Income (loss) from continuing operations 9,619 651 21,760 (997) Discontinued operations: Income from discontinued operations, net of income tax provision of $0, $241, $89 and $2,149, respectively - 373 137 3,322 ------------ ----------- ----------- ------------ Net income $ 9,619 $ 1,024 $ 21,897 $ 2,325 ============ =========== =========== ============
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MATRIX BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except share information) Quarter Ended Year ended December 31, December 31, 2004 2003 2004 2003 ------------- ------------ ------------- ------------ (unaudited) (unaudited) (unaudited) Income (loss) from continuing operations per share - basic $ 1.48 $ 0.10 $ 3.34 $ (0.15) ------------- ------------ ------------- ------------ Income (loss) from continuing operations per share - assuming dilution $ 1.45 $ 0.10 $ 3.28 $ (0.15) ------------- ------------ ------------- ------------ Income from discontinued operations per share - basic $ - $ 0.06 $ 0.02 $ 0.51 ------------- ------------ ------------- ------------ Income from discontinued operations per share - assuming dilution $ - $ 0.06 $ 0.02 $ 0.51 ------------- ------------ ------------- ------------ Net income per share - basic $ 1.48 $ 0.16 $ 3.36 $ 0.36 ============= ============ ============= ============ Net income per share - assuming dilution $ 1.45 $ 0.16 $ 3.30 $ 0.36 ============= ============ ============= ============
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MATRIX BANCORP, INC. AND SUBSIDIARIES OPERATING RATIOS AND OTHER SELECTED DATA (Dollars in thousands, except share information) Quarter Ended Year ended December 31, December 31, 2004 2003 2004 2003 ------------ ------------ ----------- ----------- (Unaudited) Weighted average shares - basic 6,523,474 6,498,765 6,520,239 6,494,803 Weighted average shares - assuming dilution 6,653,303 6,538,089 6,630,006 6,539,195 Number of shares outstanding at end of period 6,620,850 6,518,981 6,620,850 6,518,981 Average Balances Loans receivable $ 1,443,948 $ 1,310,483 $ 1,373,246 $ 1,376,723 Interest-earning assets 1,717,064 1,413,472 1,590,431 1,449,998 Total assets 1,895,106 1,613,021 1,779,320 1,666,097 Interest-bearing deposits 905,765 733,139 810,946 786,797 FHLBank and other borrowings 665,070 552,903 618,645 487,098 Interest-bearing liabilities 1,570,835 1,286,042 1,429,591 1,273,895 Shareholders' equity 86,903 68,019 76,491 68,999 Operating Ratios & Other Selected Data (1) Return on average equity 44.28 % 3.83 % 28.45 % (1.45) % Net interest margin (2) 2.66 % 2.82 % 2.68 % 2.88 % Net interest margin - Matrix Capital Bank 2.96 % 2.91 % 2.98 % 2.92 % Balance of servicing portfolio $ 2,258,840 $ 3,183,536 $ 2,258,840 $ 3,183,536 Average prepayment rate on owned servicing 23.6% 30.3 % 27.5 % 35.4 % portfolio Book value per share (end of period) $ 13.94 $ 10.68 $ 13.94 $ 10.68 Loan Performance Ratios (1) Net charge offs/average loans 0.21 % 0.06 % 0.14 % 0.23 % Allowance for loan and valuation losses/total 0.81 % 0.72 % 0.81 % 0.72 % loans - ------------------------------------------------------------------------------- (1) Calculations are based on average daily balances where available and monthly averages otherwise, as applicable. (2) Net interest margin has been calculated by dividing net interest income before loan and valuation loss provision by average interest-earning assets.
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