Saxon Capital, Inc. Reports Fourth Quarter and Year End 2003 Operating Results; Diluted EPS Increased To $0.66 Per Share for the Quarter; and $2.16 Per Share for 2003.Business Editors GLEN ALLEN Glen Allen is the name of several places in the United States of America:
Saxon Saxon Any member of a Germanic people who lived along the Baltic coast in ancient times and later migrated west as far as the British Isles. The Saxons became pirates in the North Sea during the decline of the Roman empire, and in the early 5th century they spread through Capital, Inc. ("Saxon") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : SAXN), a residential mortgage lending and servicing company, today announced fourth quarter 2003 net income of $20.2 million or $0.66 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , as compared to $11.8 million or $0.41 per share diluted, for the fourth quarter 2002, and $16.6 million or $0.55 per share diluted for third quarter 2003. Net income for the year ended December December: see month. 31, 2003 was $65.1 million or $2.16 per share diluted, as compared to $27.4 million or $0.94 for the year ended December 31, 2002. Operational Highlights -- Net mortgage loan portfolio, ("owned portfolio"), increased 2% to $4.7 billion at December 31, 2003 from $4.6 billion at September September: see month. 30, 2003, and increased 31% from $3.6 billion at December 31, 2002. -- Mortgage loan production for fourth quarter 2003 decreased by 3% compared to both fourth quarter 2002 and third quarter 2003. Mortgage loan production (excluding called loans purchased from off-balance sheet securitizations in 2002) increased 24% from the year ended 2002 to 2003. -- Servicing rights for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.3 billion of mortgage loans were purchased during the fourth quarter 2003. Loan Production Total mortgage loan production volume was $683.3 million for fourth quarter 2003, a decrease of 3% compared to both fourth quarter 2002 and third quarter 2003. Total mortgage loan production volume was $2.8 billion for year ended December 31, 2003, an increase of 24% compared to year ended December 31, 2002 (excluding called loans purchased from off-balance sheet securitizations in 2002). Total cost to produce increased to 3.57% of total loan production for fourth quarter 2003 from 3.16% for fourth quarter 2002 and 3.19% for third quarter 2003. Cost to produce increased to 3.35% for the year ended December 31, 2003, as compared to 3.23% for the year ended December 31, 2002. Saxon's retail mortgage loan production was $172.2 million during fourth quarter 2003, a decrease of 10% over fourth quarter 2002, and a decrease of 7% compared to third quarter 2003. For the year ended December 31, 2003, retail production was $762.7 million, an increase of 18% over prior year. At December 31, 2003, total retail branches totaled 27 as compared to 20 at December 31, 2002. Same branch retail production for branches open greater than 12 months decreased 23% and 12% from fourth quarter 2002 and third quarter 2003, respectively. Same branch retail production increased 11% for the year ended December 31, 2003 as compared to year ended December 31, 2002. Saxon's wholesale mortgage loan production was $320.4 million during fourth quarter 2003, an increase of 11% over fourth quarter 2002, and an increase of 8% compared to third quarter 2003. For the year ended December 31, 2003, wholesale production was $1.2 billion, an increase of 14% over prior year. Saxon's correspondent A bank, Securities firm, or other financial institution that regularly renders services for another in an area or market to which the other party lacks direct access. A bank that functions as an agent for another bank and carries a deposit balance for a bank in another city. flow mortgage loan production was $172.0 million during fourth quarter 2003, an increase of 63% over fourth quarter 2002, and a decrease of 7% over third quarter 2003. Correspondent flow production for the year ended December 31, 2003 was $700.3 million, an increase of 84% over prior year. Correspondent bulk mortgage loan production was $18.6 million during fourth quarter 2003, a decrease of 69% from fourth quarter 2002, and a decrease of 50% from third quarter 2003. Correspondent bulk production for the year ended December 31, 2003 was $205.4 million, a decrease of 12% over prior year. This year-over-year change in the correspondent flow and bulk production reflects Saxon's continued focus on growing the flow business, while pursuing the bulk business when market conditions are advantageous. Purchase of Servicing Rights During the quarter, Saxon purchased third party servicing rights to approximately $1.3 billion of mortgage loans. Saxon paid an average 65 basis points for the servicing rights, which have annual servicing fees of approximately 50 basis points. Portfolio Performance At December 31, 2003, Saxon's owned portfolio totaled $4.7 billion, an increase of 31% from December 31, 2002 and an increase of 2% from September 30, 2003. Seriously delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. (60+ days past due) loans were 7.7% of owned portfolio at December 31, 2003, compared to 7.1% at December 31, 2002 and 7.5% at September 30, 2003. Saxon decreased its reserve for loan losses to $43.4 million at December 31, 2003 from $46.1 million at September 30, 2003, due to the stability in the seriously delinquent ratio and continued improvement in the credit mix of the owned portfolio. Financial Highlights For fourth quarter 2003, Saxon's net interest income was $54.2 million, as compared to $42.8 million for fourth quarter 2002 and $54.3 million for third quarter 2003. For fourth quarter 2003, Saxon's net interest margin was 4.7%, as compared to 5.3% for fourth quarter 2002 and 4.9% for third quarter 2003. For the year ended December 31, 2003, Saxon's net interest income was $209.8 million as compared to $139.3 million for year ended December 31, 2002. Saxon's net interest margin for the year ended December 31, 2003 was 5.0% as compared to 5.4% for prior year. The net interest margin decline is due to the improved credit mix in the owned portfolio, which yields a lower coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer , and prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of higher yielding mortgage loans. Saxon's net interest margin after provision for mortgage loan losses was 4.2%, for both the fourth quarter 2003 and third quarter 2003, as compared to 4.4% for fourth quarter 2002. Saxon's net interest margin after provision for mortgage loan losses for the years ended December 31, 2003 and 2002 was 4.2% and 4.3%, respectively. Total net revenues for fourth quarter 2003 were $57.9 million, as compared to $42.1 million for fourth quarter 2002 and $54.7 million for third quarter 2003. Total net revenues for year ended December 31, 2003 were $211.4 million, as compared to $134.5 million for prior year. Saxon's increase in net revenues is due to the continued growth of the owned portfolio and an increase in servicing income. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , which include general and administrative expenses and depreciation, were $29.8 million for fourth quarter 2003, as compared to $23.5 million for fourth quarter 2002 and $27.3 million for third quarter 2003. Operating expenses were $109.8 million for the year ended December 31, 2003 as compared to $90.3 million for prior year. Liquidity At December 31, 2003, Saxon had $1.5 billion in committed facilities Committed Facility A credit facility whereby terms and conditions are clearly defined by the lending institution and imposed upon the borrowing company. Notes: In committed facilities, the borrowing companies must meet specific requirements set forth by the lending and $107 million in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. liquidity, as compared to $1.5 billion in committed facilities and $90 million in short-term liquidity at December 31, 2002. Recent Developments On January January: see month. 26, 2004, Saxon announced that the Board of Directors had authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the company to convert to a real estate investment trust ("REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). "), subject to shareholder approval and other conditions. Conference Call Saxon will host a conference call for analysts and investors at 11 a.m. Eastern Time on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , January 30, 2004. For a live Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the broadcast of this conference call, please visit Saxon's investor relations Investor relations The process by which the corporation communicates with its investors. website at www.saxoncapitalinc.com. To participate in the call, contact Ms. Bobbi Roberts, Vice President Investor Relations (804.967.7879 or robertsb@saxonmtg.com). A replay will be available shortly after the call and will remain available until 5 p.m. Eastern Time, February February: see month. 6, 2004. The replay will be available on Saxon's website or at 800.252.6030 using the ID number 21315197. About Saxon Saxon is a residential mortgage lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. and servicer that originates, purchases, securitizes and services real property secured mortgages. Saxon is headquartered in Glen Allen, Virginia Glen Allen is a census-designated place (CDP) in Henrico County, Virginia, United States. The population was 12,562 at the 2000 census. Geography Glen Allen is located at (37.660094, -77.485634)GR1. and has additional primary facilities in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. and Foothill Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Saxon's production subsidiaries, Saxon Mortgage, Inc., and America's MoneyLine Moneyline may refer to:
v. 1. To bring into being; create. 2. To come into being; start. and purchase loans through wholesale, correspondent and retail business channels Business channels are TV channels that concentrate on business news. List of channels
Information Regarding Forward Looking Statements Statements in this news release reflecting our future, plans and strategies, are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " that are based on current expectations and assumptions. These expectations and assumptions are subject to risks and uncertainty, which could affect our future plans. Saxon's actual results and the timing and occurrence of expected events could differ materially from our plans and expectations due to a number of factors, such as (i) changes in overall economic conditions and interest rates, (ii) Saxon's ability to successfully implement its growth strategy, (iii) Saxon's ability to sustain loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. growth at levels sufficient to absorb absorb To offset sell orders or a new security offering with buy orders. costs of production and operational costs, (iv) continued availability of credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and access to the securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. markets or other funding sources, (v) deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the credit quality of Saxon's loan portfolio, (vi) lack of access to the capital markets for additional funding, (vii) challenges in successfully expanding Saxon's servicing platform and technological capabilities, (viii) Saxon's ability to satisfy complex rules in order for it to qualify as a REIT for federal income tax purposes, (ix) the ability of certain of Saxon's subsidiaries to qualify as taxable REIT subsidiaries Taxable REIT Subsidiaries (TRSs) allow real estate investment trusts (REITs) to more effectively compete with other real estate owners. They do this by providing services to tenants or third parties such as landscaping, cleaning or concierge, and they provide new for federal income tax purposes and Saxon's ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules, (x) changes in federal income tax laws and regulations applicable to REITs, (xi) unfavorable changes in capital market conditions, (xii) future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. developments, (xiii) competitive conditions applicable to Saxon's industry, and (xiv) changes in the applicable legal and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment. You should also be aware that all information in this news release is as of January 29, 2004. Saxon undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations. Additional Information and Where To Find It Information contained in this press release is not a substitute for the proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus that Saxon intends to file with the Securities and Exchange Commission in connection with the proposed REIT conversion. SHAREHOLDERS AND INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION, INCLUDING DETAILED RISK FACTORS, ABOUT SAXON AND THE PROPOSED TRANSACTION. The proxy statement/prospectus and other documents which will be filed by Saxon with the Securities and Exchange Commission will be available free of charge at the SEC's website (www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ) or by directing a request when such a filing is made to Bobbi J. Roberts, Vice President, Investor Relations, Saxon Capital, Inc. 4860 Cox Road, Suite 300, Glen Allen, Virginia, Telephone 804.967.7879, email: robertsb@saxonmtg.com. Saxon, its directors, and certain of its executive officers may be considered participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies in connection with the proposed REIT conversion. Information about the directors and executive officers of Saxon and their ownership of Saxon stock is set forth in the proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. for Saxon's 2003 annual meeting of shareholders. Investors may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus when it becomes available.
Saxon Capital, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except for share data)
(unaudited)
Dec. 31, Dec. 31,
2003 2002
----------- -----------
Assets
Cash $5,245 $8,098
Accrued interest receivable 54,080 38,630
Trustee receivable 74,614 44,128
Mortgage loan portfolio 4,723,416 3,612,473
Allowance for loan losses (43,369) (40,227)
----------- -----------
Net mortgage loan portfolio 4,680,047 3,572,246
Restricted cash 1,257 301,435
Servicing related advances 98,588 102,558
Mortgage servicing rights, net 41,255 24,971
Real estate owned 23,787 14,563
Other assets 79,959 56,533
----------- -----------
Total assets $5,058,832 $4,163,162
=========== ===========
Liabilities and stockholders' equity
Liabilities:
Accrued interest payable $8,602 $7,431
Warehouse financing 427,969 474,442
Securitization financing 4,237,375 3,347,251
Note payable 25,000 25,000
Other liabilities 14,840 22,692
----------- -----------
Total liabilities 4,713,786 3,876,816
----------- -----------
Stockholders' equity
Common stock, $0.01 par value per share,
100,000,000 shares authorized;
28,661,739 and 28,235,781 issued and
outstanding, respectively 287 282
Additional paid-in capital 264,030 259,267
Other comprehensive (loss) income, net of tax
of $(3,500) and $3,649 (5,497) 5,707
Retained earnings 86,226 21,090
----------- -----------
Total stockholders' equity 345,046 286,346
----------- -----------
Total liabilities and stockholders' equity $5,058,832 $4,163,162
=========== ===========
Saxon Capital, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except for share data)
(unaudited)
Quarter Quarter Quarter Quarter Quarter
Ended Ended Ended Ended Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2003 2003 2003 2003 2002
-------- --------- -------- -------- --------
Revenues:
Interest income (1) $88,743 $85,489 $83,577 $75,255 $68,589
Interest expense (34,506) (31,143) (30,993) (26,661) (25,782)
-------- --------- -------- -------- --------
Net interest income 54,237 54,346 52,584 48,594 42,807
Provision for mortgage
loan losses (6,219) (8,517) (9,677) (8,614) (6,912)
-------- --------- -------- -------- --------
Net interest income
after provision for
mortgage loan losses 48,018 45,829 42,907 39,980 35,895
Servicing income, net of
amortization (1) 8,358 7,994 8,202 7,580 6,240
Gain on sale of mortgage
assets 1,558 924 45 6 -
-------- --------- -------- -------- --------
Total net revenues $57,934 $54,747 $51,154 $47,566 $42,135
Expenses:
Payroll and related
expenses 12,752 14,839 13,382 14,278 12,918
General and
administrative expenses 15,036 11,368 11,424 11,058 11,193
Other expense (income) 1,980 1,053 1,261 1,325 (579)
-------- --------- -------- -------- --------
Total expenses 29,768 27,260 26,067 26,661 23,532
Income before taxes 28,166 27,487 25,087 20,905 18,603
Income tax expense 7,964 10,868 9,656 8,021 6,792
-------- --------- -------- -------- --------
Net income $20,202 $16,619 $15,431 $12,884 $11,811
Basic earnings per share $0.71 $0.58 $0.54 $0.46 $0.42
======== ========= ======== ======== ========
Diluted earnings per
share $0.66 $0.55 $0.51 $0.44 $0.41
======== ========= ======== ======== ========
(1) Previously the company reported prepayment penalty income as a
component of net servicing income. The company has reclassed
prepayment penalty income to interest income for all periods
presented.
Saxon Capital, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except for share data)
(unaudited)
Year Ended Year Ended
Dec. 31, Dec. 31,
2003 2002
--------- ---------
Revenues:
Interest income (1) $333,064 $226,399
Interest expense (123,303) (87,068)
--------- ---------
Net interest income 209,761 139,331
Provision for mortgage loan losses (33,027) (28,117)
--------- ---------
Net interest income after provision
for mortgage loan losses 176,734 111,214
Servicing income, net of amortization (1) 32,134 22,924
Gain on sale of mortgage assets 2,533 365
--------- ---------
Total net revenues $211,401 $134,503
Expenses:
Payroll and related expenses 55,251 50,437
General and administrative expenses 48,886 38,425
Other expense (income) 5,619 1,431
--------- ---------
Total expenses 109,756 90,293
Income before taxes 101,645 44,210
Income tax expense 36,509 16,833
--------- ---------
Net income $65,136 $27,377
Basic earnings per share $2.28 $0.97
========= =========
Diluted earnings per share $2.16 $0.94
========= =========
(1) Previously the company reported prepayment penalty income as
a component of net servicing income. The company has reclassed
prepayment penalty income to interest income for all periods
presented.
Saxon Capital, Inc.
Supplemental Data
Quarter Ended
Qtr Qtr Qtr
12/31/2003 9/30/2003 6/30/2003
----------------------------------------------------------------------
Production Statistics
Volume
-------------------------------
Wholesale $320,429 $296,959 $282,460
Retail 172,204 184,474 223,633
Correspondent Flow 172,033 185,406 200,441
Correspondent Bulk 18,636 37,387 34,774
Called loans (1) - - -
Net Cost to Produce (2)
-------------------------------
Wholesale 3.09% 2.81% 2.97%
Retail 4.47% 3.33% 2.80%
Correspondent Flow 3.35% 3.24% 3.32%
Correspondent Bulk 5.79% 5.14% 5.25%
Total Production 3.57% 3.19% 3.12%
Cost to Service 0.26% 0.26% 0.26%
Credit Quality
-------------------------------
Average Loan-To-Value 79.6% 79.2% 79.9%
Credit Score 621 623 617
Fixed Weighted Average Coupon 8.1% 7.8% 7.7%
ARM Weighted Average Coupon 7.5% 7.5% 7.6%
----------------------------------------------------------------------
Portfolio Statistics
Owned Portfolio Principal
Balance (at period end) $4,665,770 $4,529,008 $4,319,424
Owned Portfolio Seriously
Delinquent (3) 7.7% 7.5% 6.6%
Owned Net Losses on Liquidated
Loans - quarter ended trust basis
(4)(5) 7,629 7,609 6,668
Owned Net Losses on Liquidated
Loans - quarter ended GAAP basis
(4)(5) 9,172 7,431 8,029
Total Serviced Portfolio
Principal Balance
(at period end) 9,899,523 8,778,290 8,318,228
Total Serviced Portfolio
Seriously Delinquent (3) 8.9% 10.1% 10.0%
Total Serviced Net Losses on
Liquidated Loans - quarter ended
trust basis 25,310 26,655 29,127
----------------------------------------------------------------------
Key Ratios
Average Earning Assets (6) $4,623,280 $4,395,113 $4,115,044
Average Assets 5,100,500 4,917,499 4,511,920
Average Equity 334,823 313,025 297,472
Return on Average Assets (ROA) (7) 1.6% 1.4% 1.4%
Return on Average Equity (ROE) (7) 24.1% 21.2% 20.7%
Average Equity/Average Assets (%) 6.6% 6.4% 6.6%
Interest Income/Average Earning
Assets (7) 7.7% 7.8% 8.1%
Interest Expense/Average
Earning Assets (7) 3.0% 2.8% 3.0%
Interest Margin/Average Earning
Assets (9)(7) 4.7% 4.9% 5.1%
Net Interest Margin after provision
for Mortgage Loans Losses (7) 4.2% 4.2% 4.2%
Operating expense/Servicing
Portfolio (7) 1.2% 1.2% 1.2%
Operating expenses/Average
Assets (7) 2.3% 2.2% 2.3%
Efficiency Ratio (8) 51.4% 49.8% 51.0%
----------------------------------------------------------------------
Common Stock Data
Basic earnings per share $0.71 $0.58 $0.54
Diluted earnings per share $0.66 $0.55 $0.51
Shares used to compute basic EPS 28,639 28,600 28,522
Shares used to compute diluted EPS 30,701 30,312 29,973
Shares outstanding (period end) 28,662 28,617 28,594
Common Stock Price
High $22.15 $18.65 $19.01
Low $17.15 $15.30 $12.81
Period End $20.95 $17.14 $17.28
Book value per share (period end) $12.04 $11.34 $10.54
----------------------------------------------------------------------
Saxon Capital, Inc.
Supplemental Data
Quarter Ended
Qtr Qtr
3/31/2003 12/31/2002
---------------------------------------------------------------------
Production Statistics
Volume
-------------------------------
Wholesale $274,724 $288,729
Retail 182,345 192,387
Correspondent Flow 142,460 105,847
Correspondent Bulk 114,574 60,616
Called loans (1) - 58,839
Net Cost to Produce (2)
-------------------------------
Wholesale 3.24% 3.03%
Retail 3.17% 2.43%
Correspondent Flow 3.52% 3.34%
Correspondent Bulk 4.94% 5.78%
Total Production 3.55% 3.16%
Cost to Service 0.26% 0.32%
Credit Quality
-------------------------------
Average Loan-To-Value 79.5% 79.1%
Credit Score 612 613
Fixed Weighted Average Coupon 7.9% 8.3%
ARM Weighted Average Coupon 8.0% 8.3%
----------------------------------------------------------------------
Portfolio Statistics
Owned Portfolio Principal Balance
(at period end) $3,953,056 $3,505,255
Owned Portfolio Seriously Delinquent (3) 6.4% 7.1%
Owned Net Losses on Liquidated Loans -
quarter ended trust basis (4)(5) 5,860 2,595
Owned Net Losses on Liquidated Loans -
quarter ended GAAP basis (4)(5) 6,282 5,638
Total Serviced Portfolio Principal
Balance (at period end) 8,394,916 7,575,560
Total Serviced Portfolio Seriously
Delinquent (3) 9.8% 11.3%
Total Serviced Net Losses on Liquidated Loans
- quarter ended trust basis 26,554 25,857
---------------------------------------------------------------------
Key Ratios
Average Earning Assets (6) $3,723,306 $3,260,581
Average Assets 4,247,087 3,758,518
Average Equity 289,920 277,719
Return on Average Assets (ROA) (7) 1.2% 1.3%
Return on Average Equity (ROE) (7) 17.8% 17.0%
Average Equity/Average Assets (%) 6.8% 7.4%
Interest Income/Average Earning Assets (7) 8.1% 8.4%
Interest Expense/Average Earning Assets (7) 2.9% 3.2%
Interest Margin/Average Earning Assets (9)(7) 5.2% 5.3%
Net Interest Margin after provision for
Mortgage Loans Losses (7) 4.3% 4.4%
Operating expense/Servicing Portfolio (7) 1.3% 1.2%
Operating expenses/Average Assets (7) 2.5% 2.5%
Efficiency Ratio (8) 56.1% 55.8%
---------------------------------------------------------------------
Common Stock Data
Basic earnings per share $0.46 $0.42
Diluted earnings per share $0.44 $0.41
Shares used to compute basic EPS 28,284 28,152
Shares used to compute diluted EPS 29,059 28,696
Shares outstanding (period end) 28,393 28,236
Common Stock Price
High $13.96 $13.50
Low $10.76 $8.15
Period End $13.31 $12.51
Book value per share (period end) $10.34 $10.14
----------------------------------------------------------------------
(1) Called loans are mortgages purchased from the SASTA 96-2,
97-1, 97-2, and 97-3 securitizations pursuant to the clean-up
call provision of the trust.
(2) Net cost to produce is defined as general and administrative
costs and premium paid, net of fees collected, divided by loan
production.
(3) Seriously delinquent is defined as 60 plus days past due.
(4) 2002 net losses on liquidated loans exclude losses of $12.6
million relating to sale of delinquent called loans purchased
at a discount and certain recoveries.
(5) GAAP requires losses to be recognized immediately upon the
loan transferring to real estate owned. The trust does not
recognize a loss on real estate owned property until it is
sold, which causes a timing difference between GAAP and trust
losses. In addition, trust losses exclude losses resulting
from a delinquent loan sale.
(6) Average Earning Assets is a daily average balance of loans in
warehouse and securitized portfolio.
(7) Ratios are annualized.
(8) Efficiency ratio is calculated as total expenses divided by
net revenues.
(9) Previously the company reported prepayment penalty income as a
component of net servicing income. The company has reclassed
prepayment penalty income to interest income for all periods
presented.
Saxon Capital, Inc.
Supplemental Data
Year Ended
Year Ended Year Ended
12/31/2003 12/31/2002
----------- -----------
Production Statistics
---------------------------------------------------------------------
Volume
-------------------------------
Wholesale $1,174,573 $1,034,278
Retail 762,657 645,949
Correspondent Flow 700,340 380,939
Correspondent Bulk 205,372 234,349
Called loans (1) - 188,559
Net Cost to Produce (2)
-------------------------------
Total Loan Production 3.35% 3.23%
Key Ratios
-------------------------------
Average Earning Assets (3) $4,214,186 $2,566,292
Interest Income/Average Earning Assets 7.9% 8.8%
Interest Expense/Average Earning Assets 2.9% 3.4%
Interest Margin/Average Earning Assets (4) 5.0% 5.4%
Net Interest Margin after provision for
Mortgage Loans Losses 4.2% 4.3%
(1) Called loans are mortgages purchased from the SASTA 96-2,
97-1, 97-2, and 97-3 securitizations pursuant to the clean-up
call provision of the trust.
(2) Net cost to produce is defined as general and administrative
costs and premium paid, net of fees collected, divided by loan
production.
(3) Average Earning Assets is a daily average balance of loans in
warehouse and securitized portfolio.
(4) Previously the company reported prepayment penalty income as a
component of net servicing income. The company has reclassed
prepayment penalty income to interest income for all periods
presented.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion