Friedman, Billings, Ramsey Group Inc.

1001 19th St. North

Year founded: 1989

Industry: Financial services

Post 200 Category: Top 125 Companies

Revenue: $1.05 Billion

Net Income/Loss: $349.56 Million

Earnings per share: $2.07

Dividend: $1.53

Stockholder equity: $1.58 Billion

Auditor: PricewaterhouseCoopers LLP

Stock: FBR

Assets: $12.93 Billion

Market capitalization: $2.45 Billion

52-week high: 22.08 4/14/2004

52-week low: 13.56 4/5/2005

Co-CEO: Emanuel J. Friedman

Co-CEO: Eric F. Billings

Employees: 728

Local employees: 520

Description: Friedman, Billings, Ramsey's subsidiaries offer investment banking, institutional brokerage services and asset management, as well as mortgage banking and investment activities.

Developments: In the past year, FBR has established itself as one of the most prolific dealmakers in the mortgage investment business, both on its own account and for its many investment banking clients. After turning itself into a real estate investment trust in 2003, by merging its investment banking and mortgage-backed securities investment affiliates into one company, FBR has become an increasingly large player in the secondary mortgage market. It had a mortgage-backed securities portfolio worth more than $11 billion at the end of 2004. The company hopes to increase the profitability of its mortgage-backed securities business by buying more high-yielding securities that don't conform to Fannie Mae or Freddie Mac standards. This year, it bought First NLC Financial Services, a fast-growing lender of these so-called "non-conforming" mortgages. In the past year, FBR solidified its dominance in investment banking services for mid-size real estate and financial service firms. It raised equity for a number of real estate investment trusts, including several local firms: JER Investors Trust Inc., DiamondRock Hospitality Co. and Fieldstone Investment Corp. All told, FBR participated in 21 initial stock offerings that raised $4.2 billion in equity for companies. It also raised $3.4 billion in private placements, mostly through offerings in which FBR sold stock in new companies to its many institutional investors. These offerings typically lead to an initial public offering later. One of FBR's largest such deals in 2004 was KKR Financial Corp., a real estate investment trust sponsored by New York leveraged buyout firm Kohlberg Kravis Roberts & Co.; that deal raised $780 million. On April 4, co-chief executive Emanuel J. Friedman abruptly announced his departure effective June 9. The company and Friedman did not disclose the reason for the resignation. Friedman was in charge of FBR's hedge fund investing. The Securities and Exchange Commission and the security industry's NASD were investigating FBR's 2001 role in marketing shares of CompuDyne Corp. of Annapolis to a group of hedge funds.

Executive Compensation
Co-Chairman and Co-CEO: Eric F. Billings
Total Cash: $9,847,887.00
Total Compensation: $10,730,360.00

Former Co-Chairman and Co-CEO: Emanuel J. Friedman
Total Cash: $9,847,887.00
Total Compensation: $10,730,360.00

Head of Investment Banking: J. Rock Tonkel Jr.
Total Cash: $7,504,456.00
Total Compensation: $9,684,680.00

President and COO: Richard J. Hendrix
Total Cash: $6,883,348.00
Total Compensation: $9,609,980.00

Former Executive Vice President : Jonathan Billings
Total Cash: $3,897,794.00
Total Compensation: $4,768,563.00

Former Executive Vice President : Robert S. Smith
Total Cash: $1,995,833.00
Total Compensation: $3,556,919.00