AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY Financial Supplement. March 31, 2011

Transcription

1 Exhibit 99.2 Financial Supplement March 3, 20 A. Financial Highlights Condensed Consolidated Balance Sheets Consolidated Statements of Operations Operating Income Three Months Ended March 3, 20 Quarterly Summary - Most Recent 5 Quarters Capitalization/Book Value per Share B. Product Summary Annuity Deposits by Product Type Surrender Charge Protection and Account Values by Product Type Annuity Liability Characteristics Spread Results C. Investment Summary Summary of Invested Assets Credit Quality of Fixed Maturity Securities Watch List Securities Summary of Residential Mortgage Backed Securities Mortgage Loans by Region and Property Type D. Shareholder Information 3 E. Research Analyst Coverage 4

2 Financial Supplement-March 3, 20 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) Assets Investments: Fixed maturity securities: Available for sale, at fair value Held for investment, at amortized cost Equity securities, available for sale, at fair value Mortgage loans on real estate Derivative instruments Other investments Total investments March 3, 20 $ 5,745,405,593,459 69,644 2,730,84 622,06 23,357 20,784,82 December 3, 200 $ 5,830, ,200 65,96 2,598,64 479,786 9,680 9,86,93 Cash and cash equivalents Coinsurance deposits Accrued investment income Deferred policy acquisition costs Deferred sales inducements Deferred income taxes Income taxes recoverable Other assets Total assets 746,737 2,657,02 97,648,827,090,33,986 92,58 4,983 $ 27,834, ,766 2,63,9 67,645,747,760,227,328 43,253 6,34 06,755 $ 26,426,763 Liabilities and Stockholders' Equity Liabilities: Policy benefit reserves Other policy funds and contract claims Notes payable Subordinated debentures Income taxes payable Other liabilities Total liabilities $ 24,983,32 268, , ,473 50, ,782 26,873,699 $ 23,655, , , ,435,00,779 25,488,76 Stockholders' equity: Common stock Additional pain-in capital Unallocated common stock held by ESOP Accumulated other comprehensive income Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 57, ,498 (4,55) 67, ,963 96,77 $ 27,834,876 56, ,454 (4,85) 8, , ,047 $ 26,426,763 Page

3 Financial Supplement-March 3, 20 CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited) Revenues: Traditional life and accident and health insurance premiums Annuity product charges Net investment income Change in fair value of derivatives Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses OTTI losses on investments: Total OTTI losses Portion of OTTI losses recognized in (from) other comprehensive income Net OTTI losses recognized in operations Total revenues 20 $ 2,96 Three Months Ended March 3, 6, ,28 48,653 (,93) (5,00) (,47) (6,57) 452, $ 3,287 5,58 242,90 82,05 9,903 (2,584) 9,36 (3,223) 350,40 Benefits and expenses: Insurance policy benefits and change in future policy benefits Interest sensitive and index product benefits (b) Amortization of deferred sales inducements Change in fair value of embedded derivatives Interest expense on notes payable Interest expense on subordinated debentures Interest expense on amounts due under repurchase agreements Amortization of deferred policy acquisition costs Other operating costs and expenses Total benefits and expenses Income before income taxes Income tax expense Net income (b),895 59,665 30,692 28,303 7,907 3, ,223 7, ,629 48,266 6,923 $ 3,343 2,332 96,869 3,089 63,875 4,65 3,685 27,268 5, ,754 22,656 7,77 $ 4,885 Earnings per common share (b) Earnings per common share - assuming dilution (a) (b) Weighted average common shares outstanding (in thousands): Earnings per common share Earnings per common share - assuming dilution $ 0.53 $ ,82 65,7 $ 0.26 $ ,225 6,38 (a) (b) The numerator for earnings per common share - assuming dilution is equal to net income plus the after tax cost of interest on convertible subordinated debentures issued to a subsidiary trust. The after tax cost of such interest was $258 and $259 for the three months ended March 3, 20 and 200, respectively. Three months ended March 3, 20 includes an adjustment to single premium immediate annuity reserves which reduced interest sensitive and index product benefits by $4.2 million and increased net income, earnings per common share and earnings per common share - assuming dilution by $2.7 million, $0.05 per share and $0.04 per share, respectively. Page 2

4 Financial Supplement-March 3, 20 Operating Income Three months ended March 3, 20 (Unaudited) Revenues: Traditional life and accident and health insurance premiums Annuity product charges Net investment income Change in fair value of derivatives Net realized losses on investments, excluding other than temporary impairment ("OTTI") losses Net OTTI losses recognized in operations Total revenues As Reported $ 2,96 6, ,28 48,653 (,93) (6,57) 452,895 Realized Losses (Dollars in thousands, except per share data) $ Adjustments,93 6,57 7,764 Derivatives and Other Index Annuity $ (33,920) (33,920) Operating Income (a) $ 2,96 6, ,28 4, ,739 Benefits and expenses: Insurance policy benefits and change in future policy benefits,895,895 Interest sensitive and index product benefits (b) 59,665 59,665 Amortization of deferred sales inducements 30,692,636 (2,056) 30,272 Change in fair value of embedded derivatives 28,303 (23,034) 5,269 Interest expense on notes payable 7,907 7,907 Interest expense on subordinated debentures 3,466 3,466 Interest expense on amounts due under repurchase agreements 4 4 Amortization of deferred policy acquisition costs 55,223 2,289 (3,753) 53,759 Other operating costs and expenses 7,474 7,474 Total benefits and expenses 404,629 3,925 (28,843) 279,7 Income before income taxes 48,266 3,839 (5,077) 47,028 Income tax expense 6,923,367 (,836) 6,454 Net income (b) $ 3,343 $ 2,472 $ (3,24) $ 30,574 Earnings per common share (b) $ 0.53 $ 0.52 Earnings per common share - assuming dilution (b) $ 0.48 $ 0.47 (a) (b) In addition to net income, we have consistently utilized operating income, operating income per common share and operating income per common share - assuming dilution, non-gaap financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Operating income equals net income adjusted to eliminate the impact of net realized gains and losses on investments including net OTTI losses recognized in operations and fair value changes in derivatives and embedded derivatives. Because these items fluctuate from quarter to quarter in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income, provides information that may enhance an investor s understanding of our underlying results and profitability. Three months ended March 3, 20 includes an adjustment to single premium immediate annuity reserves which reduced interest sensitive and index product benefits by $4.2 million and increased net income and operating income by $2.7 million, increased earnings per common share and operating income per common share by $0.05 per share and increased earnings per common share - assuming dilution and operating income per common share - assuming dilution by $0.04 per share. Change in fair value of derivatives: Proceeds received at expiration $ 88,026 $ $ 88,026 Cost of money for fixed index annuities (77,989) (77,989) Change in the difference between fair value and remaining option cost at beginning and end of period 38,66 (33,920) 4,696 $ 48,653 $ (33,920) $ 4,733 Index credits included in interest credited to account balances 87,394 87,394 Page 3

5 Financial Supplement-March 3, 20 Operating Income/Net Income Quarterly Summary - Most Recent 5 Quarters (Unaudited) Q 20 Q4 200 Q3 200 Q2 200 Q 200 (Dollars in thousands, except per share data) Revenues: Traditional life and accident and health insurance premiums Annuity product charges Net investment income Change in fair value of derivatives Total revenues $ 2,96 6, ,28 4, ,739 $ 2,87 6, ,876 29,40 326,550 $ 3,8 8, ,475 7, ,289 $ 2,643 8,67 254,845 9, ,4 $ 3,287 5,58 242,90 66,77 328,486 Benefits and expenses: Insurance policy benefits and change in future policy benefits Interest sensitive and index product benefits (b) Amortization of deferred sales inducements Change in fair value of embedded derivatives Interest expense on notes payable Interest expense on subordinated debentures Interest expense on amounts due under repurchase agreements Amortization of deferred policy acquisition costs Other operating costs and expenses Total benefits and expenses Operating income before income taxes Income tax expense Operating income (a) (b) Net realized gains (losses) and net OTTI losses on investments, net of offsets Lawsuit settlement Convertible debt retirement, net of income taxes Net effect of derivatives and other index annuity, net of offsets Net income (loss) (b),895 59,665 30,272 5,269 7,907 3, ,759 7, ,7 47,028 6,454 30,574 (2,472) 3,24 $ 3,343,622 48,320 27,79 28,2 7,86 3,700 50,788 7,75 285,837 40,73 4,39 26,394 (4,687) (27,297) 4,628 $ 9,038 2,28 55,667 24,942,483 4,940 3,805 47,754 6,23 256,932 42,357 4,795 27,562,950 (8,998) $ 20,54 2,69 224,33 24,503 4,673 3,76 46,47 6, ,5 44,900 5,692 29,208 () (7) (30,530) $ (,504) 2,332 95,284 22,774 4,65 3,685 44,75 5, ,886 39,600 3,87 25,783 2,369 (3,267) $ 4,885 Operating income per common share (a) (b) Operating income per common share - assuming dilution (a) (b) Earnings (loss) per common share (b) Earnings (loss) per common share - assuming dilution (b) $ 0.52 $ 0.47 $ 0.53 $ 0.48 $ 0.45 $ 0.4 $ 0.5 $ 0.4 $ 0.47 $ 0.45 $ 0.35 $ 0.33 $ 0.50 $ 0.48 $ (0.03) $ (0.03) $ 0.44 $ 0.43 $ 0.26 $ 0.25 Weighted average common shares outstanding (in thousands): Earnings per common share Earnings per common share - assuming dilution 59,82 65,7 58,757 65,054 58,564 62,498 58,427 6,592 58,225 6,38 (a) (b) In addition to net income (loss), we have consistently utilized operating income, operating income per common share and operating income per common share - assuming dilution, non-gaap financial measures commonly used in the life insurance industry, as economic measures to evaluate our financial performance. Operating income equals net income (loss) adjusted to eliminate the impact of net realized gains and losses on investments including net OTTI losses recognized in operations, loss on extinguishment of debt, the settlement of a class action lawsuit and fair value changes in derivatives and embedded derivatives. Because these items fluctuate from quarter to quarter in a manner unrelated to core operations, we believe measures excluding their impact are useful in analyzing operating trends. We believe the combined presentation and evaluation of operating income together with net income (loss), provides information that may enhance an investor s understanding of our underlying results and profitability. Three months ended March 3, 20 includes an adjustment to single premium immediate annuity reserves which reduced interest sensitive and index product benefits by $4.2 million and increased operating income and net income by $2.7 million, increased operating income per common share and earnings per common share by $0.05 per share and increased operating income per common share - assuming dilution and earnings per common share - assuming dilution by $0.04 per share. Page 4

6 Financial Supplement-March 3, 20 Capitalization/Book Value per Share Capitalization: Notes payable Subordinated debentures payable to subsidiary trusts Total debt Total stockholders equity Total capitalization Accumulated other comprehensive income loss (AOCI) Total capitalization excluding AOCI (a) March 3, December 3, (Dollars in thousands, except per share data) $ 334, , ,473 96,77,563,650 (67,579) $,496,07 $ 330, , , ,047,537,37 (8,820) $,455,497 Total stockholders equity Accumulated other comprehensive income Total stockholders equity excluding AOCI (a) $ 96,77 (67,579) $ 893,598 $ 938,047 (8,820) $ 856,227 Common shares outstanding (b) 58,79,80 58,377,233 Book Value per Share: (c) Book value per share including AOCI Book value per share excluding AOCI (a) $ 6.35 $ 5.20 $ 6.07 $ 4.67 Debt-to-Capital Ratios: (d) Senior debt / Total capitalization Adjusted debt / Total capitalization 22.3% 25.3% 22.7% 26.2% (a) Total capitalization, total stockholders equity and book value per share excluding AOCI, non-gaap financial measures, are based on stockholders equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, we believe these non-gaap financial measures provide useful supplemental information. (b) Common shares outstanding include shares held by the NMO Deferred Compensation Trust: 20 -,549,803 shares; 200 -,855,835 shares and exclude unallocated shares held by ESOP: ,048 shares; ,048 shares. (c) (d) Book value per share including and excluding AOCI is calculated as total stockholders equity and total stockholders equity excluding AOCI divided by the total number of shares of common stock outstanding. Debt-to-capital ratios are computed using total capitalization excluding AOCI. Adjusted debt includes notes payable and the portion of the total subordinated debentures payable to subsidiary trusts outstanding (qualifying trust preferred securities) that exceeds 5% of total capitalization including AOCI. Page 5

7 Financial Supplement-March 3, 20 Annuity Deposits by Product Type Product Type Fixed Index Annuities: Index Strategies Fixed Strategy Fixed Rate Annuities: Single-Year Rate Guaranteed Multi-Year Rate Guaranteed Total before coinsurance ceded Coinsurance ceded Net after coinsurance ceded Three Months Ended March 3, 20 $ 778, ,472,36,054 28,743 77, ,790,34,844 65,877 $,275, $ 403,24 337, ,906 52,768 53,8 05, ,855 89,22 $ 657,733 Year Ended December 3, 200 $ 2,40,89,55,007 3,952,898 33, ,6 75,82 4,668,79 478,962 $ 4,89,757 Surrender Charge Protection and Account Values by Product Type Annuity Surrender Charges and Net (of coinsurance) Account Values at March 3, 20 Product Type Avg. Years At Issue Surrender Charge Avg. Years Remaining Avg. % Remaining Net Account Value Dollars in Thousands % Fixed Index Annuities Single-Year Fixed Rate Guaranteed Annuities Multi-Year Fixed Rate Guaranteed Annuities Total % 7.6% 4.7% 5.3% $ 9,524,577,35, ,86 $ 2,385, % 6.3% 2.4% 00.0% Page 6

8 Financial Supplement-March 3, 20 Annuity Liability Characteristics SURRENDER CHARGE PERCENTAGES (): No surrender charge 0.0% < 2.0% 2.0% < 3.0% 3.0% < 4.0% 4.0% < 5.0% 5.0% < 6.0% 6.0% < 7.0% 7.0% < 8.0% 8.0% < 9.0% 9.0% < 0.0% 0.0% or greater Fixed Annuities Account Value $ 383,465 30,258 26,200 35, ,046 30,83 95,205 24,080 87,52 200,373 49,430 $,86,320 Fixed Index Annuities Account Value $ 352,552 39,55 6, , , , , ,024 26,84 687,659 6,622,368 $ 9,524,577 SURRENDER CHARGE EXPIRATION BY YEAR: Out of Surrender Charge Fixed and Fixed Index Annuities Account Value (Dollars in thousands) $ 736,07 98,63 400,42 566, , , , , , , ,23 86,8,095,547 3,980,23 4,23,68,774,45,690, ,650 3,870 $ 2,385,897 Weighted Average Surrender Charge 0.00% 2.40% 3.26% 4.34% 5.5% 7.34% 8.57% 9.76%.94% 2.53% 3.83% 4.49% 7.06% 9.4% 9.59% 9.57% 9.90% 9.99% 20.00% 5.33% Page 7

9 Financial Supplement-March 3, 20 Annuity Liability Characteristics APPLICABLE GUARANTEE PERIOD: Annual reset (2) Multi-year (3-7 years) Fixed Annuities Account Value $,64,435 29,885 $,86,320 Fixed Index Annuities Account Value $ 9,50,073 4,504 $ 9,524,577 ULTIMATE MINIMUM GUARANTEE RATE:.50% 2.00% 2.20% 2.25% 2.25% (3) 3.00% (4) 3.00% (5) 3.50% (6) 4.00% $ 8, ,446 4,359 6,000 84,726,224,224 6,085 $,86,320 $ 603,45,97 74,592 5,369, ,700,33,853,000,86 9,200 $ 9,524,577 CREDITED RATE (INCLUDING BONUS INTEREST) VS. ULTIMATE MINIMUM GUARANTEED RATE DIFFERENTIAL (7): No differential 0.0% % 0.25% - 0.5% 0.5% -.0% (8).0% -.5% (8).5% - 2.0% 2.0% - 2.5% 2.5% - 3.0%.50% ultimate guarantee - 2.7% wtd avg interest rate (9) 2.00% ultimate guarantee % wtd avg interest rate (9) 2.25% ultimate guarantee % wtd avg interest rate (9) 3.00% ultimate guarantee - 3.4% wtd avg interest rate (9) Cumulative floor $ 78, ,80 28,774 3,405 07,839 40,828 4,73 74,723 9,707 07,762 $,86,32 $ 8,002,02, ,737,4,242 66,503 2,95 45,40,550,203 3,25,53 2,26,577 $ 9,524,577 () In addition, $950,240 (5.05%) of the Fixed Annuities Account Value have market value adjustment protection. (2) The contract features for substantially all of the Fixed Index Annuities Account Value provide for the annual reset of contractual features that effect the cost of money. The contract features for less than 0.5% of the Fixed Index Annuities Account Value are reset every two years. (3) Products have a guarantee of 2.25% for the first 0 years, and 3.00% thereafter. (4) Products have a guarantee of 3.00% on 00% of the premium. (5) Products have a guarantee of 3.00% on less than 00% of the premium. (6) Rates applicable to the minimum guaranteed surrender value are 3.50% for the first 5 years, and 3.00% thereafter (applied to less than 00% of the annuity deposits received). Minimum guaranteed rates for amounts allocated to the fixed rate strategy are 2.25% for the first 0 years, and 3.00% thereafter. (7) Recent issues may contain bonus interest rates ranging from.0% to 3.0%. (8) $84,726 of Fixed Annuities Account Value have a guarantee of 2.25% for the first 0 years and 3% thereafter. They begin increasing in 204. $653,935 of Index Annuities Account Value is in fixed rate strategies that have a guarantee of 2.25% for the first 0 years and 3% thereafter. They begin increasing in 204. (9) The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy is.0%. The ultimate guaranteed rate is applied on less than 00% of the premium. Page 8

10 Financial Supplement-March 3, 20 Spread Results Average yield on invested assets Three Months Ended March 3, % % Year Ended December 3, % Cost of money: Aggregate Cost of money for fixed index annuities Average crediting rate for fixed rate annuities: Annually adjustable Multi-year rate guaranteed 2.82% 2.77% 3.9% 3.69% 2.96% 2.9% 3.26% 3.78% 2.9% 2.86% 3.26% 3.74% Investment spread: Aggregate Fixed index annuities Fixed rate annuities: Annually adjustable Multi-year rate guaranteed 3.4% 3.9% 2.77% 2.27% 3.7% 3.22% 2.87% 2.35% 3.5% 3.20% 2.80% 2.32% Summary of Invested Assets Fixed maturity securities: United States Government full faith and credit United States Government sponsored agencies United States municipalities, states and territories Corporate securities Residential mortgage backed securities Total fixed maturity securities Equity securities Mortgage loans on real estate Derivative instruments Other investments Carrying Amount $ 4,335 March 3, 20 3,907,40 2,489,998 8,035,009 2,902,382 7,338,864 69,644 2,730,84 622,06 23,357 $ 20,784,82 Percent % 8.8% 2.0% 38.7% 4.0% 83.5% 0.3% 3.% 3.0% 0.% 00.0% Carrying Amount $ 4,388 December 3, 200 3,750,065 2,367,003 7,652,850 2,878,557 6,652,863 65,96 2,598,64 479,786 9,680 $ 9,86,93 Percent % 8.9% 2.0% 38.6% 4.5% 84.0% 0.4% 3.% 2.4% 0.% 00.0% Page 9

11 Financial Supplement-March 3, 20 Credit Quality of Fixed Maturity Securities - March 3, 20 NAIC Designation Carrying Amount (Dollars in thousands) $ 2,925,036 4,00, ,427 8,026 6,73 5,6 $ 7,338,864 Percent 74.6% 23.6%.6% 0.% 0.% % 00.0% Rating Agency Rating Aaa/Aa/A Baa Ba B Caa and lower In or near default Carrying Amount (Dollars in thousands) $ 2,54,65 3,88,390 28,832 64, ,293 54,086 $ 7,338,864 Percent 70.% 22.4%.6% 0.4% 5.2% 0.3% 00.0% Watch List Securities - March 3, 20 General Description Corporate bonds: Finance, insurance and real estate companies U.S. retail company Amortized Cost $ 0,66 0,477 $ 20,643 Unrealized Losses $ (694) (,077) $ (,77) Fair Value $ 9,472 9,400 $ 8,872 Months Below Amortized Cost Page 0

12 Financial Supplement-March 3, 20 Summary of Residential Mortgage Backed Securities Collateral Type OTTI has not been recognized Government agency Prime Alt-A OTTI has been recognized Prime Alt-A Total by collateral type Government agency Prime Alt-A Total by NAIC designation NAIC Designation Principal Amount $ 50,558,489,525,437 28,04 45,965 5,23 $ 2,080,72 $ 257,87 297,07 35, ,33 30,335 6,54 4,52 $,087,634 $ 50,558 2,09,70 548,68 $ 3,68,346 $ 2,649, ,92 80,545 4,52 $ 3,68,346 Amortized Cost $ 450,55,4,806,48 27,505 46,347 5,24 $,942,445 $ 229,89 274,922 34, ,903 02,554 4,327 3,884 $ 953,684 $ 450,55,979, ,229 $ 2,896,29 $ 2,432, ,08 76,07 3,884 $ 2,896,29 Fair Value $ 463,90,469,445,335 24,942 48,069 4,73 $ 2,02,405 $ 220, ,962 3,7 279,64 89,478 4,335 2,70 $ 889,977 $ 463,90 2,000,02 438,460 $ 2,902,382 $ 2,480, ,488 70,394 2,70 $ 2,902,382 Page

13 Financial Supplement-March 3, 20 Mortgage Loans by Region and Property Type Geographic distribution East Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central Loan loss allowance Carrying Amount $ 653,566 March 3, 20 82,54 409,555 42, ,45 505, , ,326 $ 2,747,783 (6,942) 2,730,84 Percent 23.8% 6.6% 4.9%.5% 0.3% 8.4% 5.9% 8.6% 00.0% Carrying Amount $ 68,250 December 3, , ,965 42, , ,606 49,002 25,650 $ 2,64,865 (6,224) 2,598,64 Percent 23.6% 6.6% 5.4%.6% 9.5% 9.0% 6.0% 8.3% 00.0% Property type distribution Office Medical Office Retail Industrial/Warehouse Hotel Apartment Mixed use/other Loan loss allowance $ 739,960 68,376 63,582 69,448 50,24 49,09 235,57 $ 2,747,783 (6,942) 2,730, % 6.% 22.3% 25.2% 5.5% 5.4% 8.6% 00.0% $ 683,404 66, , ,908 5,56 3, ,056 $ 2,64,865 (6,224) 2,598,64 26.% 6.4% 22.5% 25.6% 5.8% 5.0% 8.6% 00.0% Page 2

14 Financial Supplement-March 3, 20 Shareholder Information Corporate Offices: American Equity Investment Life Holding Company 6000 Westown Parkway West Des Moines, IA Inquiries: D. J. Noble, Executive Chairman (55) , Debra J. Richardson, Executive Vice President and Secretary (55) , John M. Matovina, Vice Chairman, Chief Financial Officer and Treasurer (55) , Common Stock and Dividend Information: New York Stock Exchange symbol: AEL High Low Close Dividend Declared 20 First Quarter $3.93 $.27 $3.2 $ First Quarter Second Quarter Third Quarter Fourth Quarter $0.99 $.64 $.9 $3.0 $6.65 $8.53 $9.9 $0. $0.65 $0.32 $0.24 $2.55 $0.00 $0.00 $0.00 $ First Quarter Second Quarter Third Quarter Fourth Quarter $7.40 $8.86 $8.65 $8.40 $2.96 $4.0 $5.24 $6.0 $4.6 $5.58 $7.02 $7.44 $0.00 $0.00 $0.00 $0.08 Transfer Agent: Computershare Trust Company, N.A. P.O. Box 4300 Providence, RI Phone: (877) Fax: (78) Annual Report and Other Information: Shareholders may receive when available, without charge, a copy of American Equity s Annual Report, SEC filings and/or press releases by calling Julie L. LaFollette, Investor Relations, at (55) or by visiting our web site at Page 3

15 Financial Supplement-March 3, 20 Research Analyst Coverage Steven Schwartz Raymond James & Associates, Inc. (32) Paul Sarran, Mark Finkelstein Macquarie (USA) Equities Research (32) (32) Randy Binner Friedman, Billings, Ramsey & Co., Inc. (703) Edward Shields Sandler O Neill & Partners (32) eshields@sandleroneill.com Mark Hughes SunTrust Robinson Humphrey (65) mark_hughes@rhco.com Page 4