New York Mortgage Trust Reports Third Quarter 2019 Results
Summary of Third Quarter 2019:
Net income attributable to Company's common stockholders | $ | 34,835 | ||
Net income attributable to Company's common stockholders per share (basic) | $ | 0.15 | ||
Net interest income | $ | 31,971 | ||
Net interest margin | 2.40 | % | ||
Comprehensive income attributable to Company's common stockholders | $ | 45,747 | ||
Comprehensive income attributable to Company's common stockholders per share (basic) | $ | 0.20 | ||
Book value per share | $ | 5.77 | ||
Economic return on book value (1) | 3.83 | % | ||
Economic return on book value (annualized) (1) (2) | 17.00 | % | ||
Dividends per share | $ | 0.20 |
(1) Economic return on book value is based on the periodic change in GAAP book value per share plus dividends declared per common share during the respective period.
(2) Economic return on book value for the nine months ended
Key Developments:
- Issued 51,750,000 shares of common stock collectively through two underwritten public offerings, resulting in total net proceeds of
$310.6 million . - Issued 589,420 shares of preferred stock under an at-the-market preferred equity offering program, resulting in net proceeds of $14.4 million.
- Acquired residential, multi-family and other credit assets totaling
$396.9 million .
In
Management Overview
Our investment team continued to be active during the quarter, sourcing and closing on approximately
Subsequent to quarter end, the Company completed a preferred stock offering, raising approximately
Capital Allocation
The following tables set forth our allocated capital by investment category at
Agency RMBS |
Residential Credit |
Multi- Family Credit |
Other | Total | ||||||||||||||||
Investment securities, available for sale, at fair value | $ | 955,838 | $ | 621,528 | $ | 278,398 | $ | 48,254 | $ | 1,904,018 | ||||||||||
Distressed and other residential mortgage loans, at fair value | — | 1,116,128 | — | — | 1,116,128 | |||||||||||||||
Distressed and other residential mortgage loans, net | — | 210,466 | — | — | 210,466 | |||||||||||||||
Investments in unconsolidated entities | — | 61,779 | 107,154 | — | 168,933 | |||||||||||||||
Preferred equity and mezzanine loan investments | — | — | 178,997 | — | 178,997 | |||||||||||||||
Multi-family loans held in securitization trusts, at fair value | — | — | 15,863,264 | — | 15,863,264 | |||||||||||||||
Multi-family collateralized debt obligations, at fair value | — | — | (14,978,199 | ) | — | (14,978,199 | ) | |||||||||||||
Other investments (1) | — | 2,437 | 12,968 | — | 15,405 | |||||||||||||||
Carrying value | $ | 955,838 | $ | 2,012,338 | $ | 1,462,582 | $ | 48,254 | $ | 4,479,012 | ||||||||||
Liabilities: | ||||||||||||||||||||
Repurchase agreements | (840,864 | ) | (946,309 | ) | (772,707 | ) | — | (2,559,880 | ) | |||||||||||
CDOs and subordinated debentures | — | (42,119 | ) | — | (45,000 | ) | (87,119 | ) | ||||||||||||
Convertible notes | — | — | — | (132,395 | ) | (132,395 | ) | |||||||||||||
Hedges (net) (2) | 20,673 | — | — | — | 20,673 | |||||||||||||||
Cash and restricted cash (3) | 9,558 | 9,554 | 5,314 | 42,412 | 66,838 | |||||||||||||||
— | — | — | 25,222 | 25,222 | ||||||||||||||||
Other (4) | (3,057 | ) | 109,487 | (11,503 | ) | (60,279 | ) | 34,648 | ||||||||||||
Net capital allocated | $ | 142,148 | $ | 1,142,951 | $ | 683,686 | $ | (121,786 | ) | $ | 1,846,999 | |||||||||
Overall leverage ratio (5) | 1.5 | |||||||||||||||||||
Leverage ratio on callable debt (6) | 1.4 | |||||||||||||||||||
Net Interest Income - Three Months Ended |
||||||||||||||||||||
Interest Income | $ | 6,512 | $ | 23,668 | $ | 28,413 | $ | 681 | $ | 59,274 | ||||||||||
Interest Expense | (4,980 | ) | (10,499 | ) | (8,400 | ) | (3,424 | ) | (27,303 | ) | ||||||||||
Net Interest Income (Expense) | $ | 1,532 | $ | 13,169 | $ | 20,013 | $ | (2,743 | ) | $ | 31,971 | |||||||||
Portfolio Net Interest Margin - Three Months Ended |
||||||||||||||||||||
Average Interest Earning Assets (7) (9) | $ | 1,001,567 | $ | 1,772,485 | $ | 1,104,560 | $ | 26,235 | $ | 3,904,847 | ||||||||||
Weighted Average Yield on Interest Earning Assets (8) | 2.60 | % | 5.34 | % | 10.29 | % | 10.38 | % | 6.07 | % | ||||||||||
Average Cost of Funds (10) | (2.38 | )% | (4.27 | )% | (4.29 | )% | — | (3.67 | )% | |||||||||||
Portfolio Net Interest Margin (11) | 0.22 | % | 1.07 | % | 6.00 | % | 10.38 | % | 2.40 | % |
(1) Includes real estate under development in the amount of
(2) Includes derivative liabilities of
(3) Restricted cash is included in the Company's accompanying condensed consolidated balance sheets in receivables and other assets.
(4) Includes a
(5) Represents total debt divided by our total stockholders' equity. Total debt does not include debt associated with Multi-family CDOs amounting to
(6) Represents repurchase agreement borrowings divided by our total stockholders' equity.
(7) Average Interest Earning Assets for the periods indicated exclude all Consolidated K-Series assets other than those securities actually owned by the Company.
(8) Our Weighted Average Yield on Interest Earning Assets was calculated by dividing our annualized interest income by our Average Interest Earning Assets for the respective periods.
(9) Our Average Interest Earning Assets is calculated each quarter based on daily average amortized cost for the respective periods.
(10) Our Average Cost of Funds was calculated by dividing our annualized interest expense by our average interest bearing liabilities, excluding our subordinated debentures and convertible notes, which generated interest expense of approximately
(11) Portfolio Net Interest Margin is the difference between our Weighted Average Yield on Interest Earning Assets and our Average Cost of Funds, excluding the weighted average cost of subordinated debentures and convertible notes.
Third Quarter Earnings Summary
For the quarter ended
Net Interest Income
We generated net interest income of
Non-interest Income
Realized Gains, net
The following table presents the components of net realized gains recognized for the quarters ended
Three Months Ended | ||||||||
2019 |
||||||||
Investment securities and related hedges | $ | 5,013 | $ | — | ||||
Distressed and other residential mortgage loans at carrying value | (569 | ) | 2,054 | |||||
Distressed and other residential mortgage loans at fair value | 1,658 | 2,393 | ||||||
Total realized gains, net | $ | 6,102 | $ | 4,447 |
Realized gains on investment securities and related hedges increased due to the sale of Agency CMBS in the third quarter of 2019. Realized gains on distressed and other residential mortgage loans at carrying value and fair value decreased as there was no sale activity in the third quarter of 2019.
Unrealized Gains (Losses), net
The following table presents the components of unrealized gains (losses), net recognized for the quarters ended
Three Months Ended | ||||||||
2019 |
||||||||
Investment securities and related hedges | $ | (13,336 | ) | $ | (15,007 | ) | ||
Distressed and other residential mortgage loans at fair value | 16,818 | 9,878 | ||||||
Multi-family loans and debt held in securitization trusts | 7,630 | 5,207 | ||||||
Total unrealized gains (losses), net | $ | 11,112 | $ | 78 |
The change in unrealized losses on investment securities and related hedges is due to a decrease in unrealized losses recognized on our interest rate swaps in the third quarter. The increases in unrealized gains on distressed and other residential mortgage loans at fair value is due to increased purchase activity and tightening credit spreads during the quarter. Unrealized gains on multi-family loans and debt held in securitization trusts also increased in the third quarter as a result of tightening credit spreads.
Other Income
The following table presents the components of other income for the quarters ended
Three Months Ended | ||||||||||||||||
2019 |
||||||||||||||||
Income from preferred equity investments accounted for as equity (1) | $ | 2,458 | $ | 1,655 | ||||||||||||
Income from joint venture equity investments in multi-family properties | 985 | 1,698 | ||||||||||||||
Income from entities that invest in residential properties and loans | 431 | 163 | ||||||||||||||
Preferred equity and mezzanine loan premiums resulting from early redemption (2) | — | 522 | ||||||||||||||
Losses in Consolidated VIEs (3) | (185 | ) | (1,459 | ) | ||||||||||||
Miscellaneous income | 249 | 161 | ||||||||||||||
Total other income | $ | 3,938 | $ | 2,740 |
(1) Includes income earned from preferred equity ownership interests in entities that invest in multi-family properties accounted for under the equity method of accounting.
(2) Includes premiums resulting from early redemptions of preferred equity and mezzanine loan investments accounted for as loans.
(3) Losses in Consolidated VIEs are offset by allocations to non-controlling interests in the respective Consolidated VIEs, resulting in net losses to the Company of
The change in other income during the third quarter is primarily attributable to an increase in preferred equity investments accounted for as equity and reduced losses from our interest in a real estate development property. The increases are partially offset by decreases in preferred equity redemptions and income from joint venture equity investments during the third quarter.
The following table details the general and administrative expenses for the quarters ended
Three Months Ended | ||||||||||||||||
General and Administrative Expenses | 2019 |
|||||||||||||||
Salaries, benefits and directors’ compensation | $ | 5,780 | $ | 6,492 | ||||||||||||
Base management and incentive fees | (31 | ) | 543 | |||||||||||||
Other general and administrative expenses | 2,565 | 2,780 | ||||||||||||||
Total general and administrative expenses | $ | 8,314 | $ | 9,815 |
The change in general and administrative expenses is primarily related to the annual awards in equity compensation paid to non-employee directors of the Company in the second quarter. Additionally, management and incentive fees decreased due to the termination of our last management agreement and the end of transition services related to that agreement in the second quarter.
The following table sets out the operating expenses related to our distressed and other residential mortgage loans for the quarters ended
Three Months Ended | ||||||||||||||||
Operating Expenses | 2019 |
|||||||||||||||
Expenses related to distressed and other residential mortgage loans | $ | 3,974 | $ | 2,579 | ||||||||||||
Total operating expenses | $ | 3,974 | $ | 2,579 |
The increase in operating expenses in the third quarter can be primarily attributed to an increase in direct operating costs on our distressed and other residential mortgage loans as a result of the growth of the loan portfolio.
Comprehensive Income
For the quarter ended
Three Months Ended | ||||||||||||||||
2019 |
June 30, 2019 | |||||||||||||||
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ | 34,835 | $ | 16,478 | ||||||||||||
OTHER COMPREHENSIVE INCOME | ||||||||||||||||
Increase in fair value of available for sale securities | ||||||||||||||||
Agency RMBS | 5,405 | 12,971 | ||||||||||||||
Non-Agency RMBS | 6,972 | 1,045 | ||||||||||||||
CMBS | 2,979 | 6,076 | ||||||||||||||
Total | 15,356 | 20,092 | ||||||||||||||
Reclassification adjustment for net gain included in net income - CMBS | (4,444 | ) | — | |||||||||||||
TOTAL OTHER COMPREHENSIVE INCOME | 10,912 | 20,092 | ||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ | 45,747 | $ | 36,570 |
The market experienced general spread tightening during the third quarter of 2019 which benefited our investment securities portfolio and resulted in an increase in OCI during the period. This change in OCI was partially offset by the reclassification of unrealized gains reported in OCI to net income in relation to the sale of certain Agency CMBS investments in the third quarter.
Analysis of Changes in Book Value
The following table analyzes the changes in book value of our common stock for the quarter ended
Quarter Ended |
|||||||||||||||||||||||
Amount | Shares | Per Share(1) | |||||||||||||||||||||
Beginning Balance | $ | 1,211,546 | 210,873 | $ | 5.75 | ||||||||||||||||||
Common stock issuance, net(2) | 311,848 | 51,748 | |||||||||||||||||||||
Preferred stock issuance, net | 14,359 | ||||||||||||||||||||||
Preferred stock liquidation preference | (14,736 | ) | |||||||||||||||||||||
Balance after share issuance activity | 1,523,017 | 262,621 | 5.80 | ||||||||||||||||||||
Dividends declared | (52,524 | ) | (0.20 | ) | |||||||||||||||||||
Net change in accumulated other comprehensive income: | |||||||||||||||||||||||
Investment securities, available for sale (3) | 10,912 | 0.04 | |||||||||||||||||||||
Net income attributable to Company's common stockholders | 34,835 | 0.13 | |||||||||||||||||||||
Ending Balance | $ | 1,516,240 | 262,621 | $ | 5.77 |
(1) Outstanding shares used to calculate book value per share for the ending balance is based on outstanding shares as of
(2) Includes amortization of stock based compensation.
(3) The increases relate to unrealized gains in our investment securities due to improved pricing.
Conference Call
On
Third quarter 2019 financial and operating data can be viewed in the Company’s Quarterly Report on Form 10-Q for the quarter ended
About
Defined Terms
The following defines certain of the commonly used terms in this press release: “RMBS” refers to residential mortgage-backed securities comprised of adjustable-rate, hybrid adjustable-rate, fixed-rate, interest only and inverse interest only, and principal only securities; “Agency RMBS” refers to RMBS representing interests in or obligations backed by pools of mortgage loans issued or guaranteed by a government sponsored enterprise (“GSE”), such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or an agency of the
Additional Information
We determined that the Consolidated K-Series were variable interest entities and that we are the primary beneficiary of the Consolidated K-Series. As a result, we are required to consolidate the Consolidated K-Series’ underlying multi-family loans including their liabilities, income and expenses in our condensed consolidated financial statements. We have elected the fair value option on the assets and liabilities held within the Consolidated K-Series, which requires that changes in valuations in the assets and liabilities of the Consolidated K-Series be reflected in our condensed consolidated statements of operations.
A reconciliation of our net interest income generated by our multi-family credit portfolio to our condensed consolidated financial statements for the three months ended
Three Months Ended |
||||||
Interest income, multi-family loans held in securitization trusts | $ | 139,818 | ||||
Interest income, investment securities, available for sale (1) | 3,419 | |||||
Interest income, preferred equity and mezzanine loan investments | 5,505 | |||||
Interest expense, multi-family collateralized debt obligations | (120,329 | ) | ||||
Interest income, Multi-Family Credit, net | 28,413 | |||||
Interest expense, repurchase agreements | (8,400 | ) | ||||
Net interest income, Multi-Family Credit | $ | 20,013 |
(1) Included in the Company’s accompanying condensed consolidated statements of operations in interest income, investment securities and other interest earning assets.
Cautionary Statement Regarding Forward-Looking Statements
When used in this press release, in future filings with the
Forward-looking statements are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to the Company. If a change occurs, the Company’s business, financial condition, liquidity and results of operations may vary materially from those expressed in its forward-looking statements. The following factors are examples of those that could cause actual results to vary from the Company’s forward-looking statements: changes in interest rates and the market value of the Company’s assets; changes in credit spreads; changes in the long-term credit ratings of the
For Further Information
CONTACT: | AT THE COMPANY | |
|
||
Chief Financial Officer | ||
Phone: (646) 216-2363 | ||
Email: [email protected] |
FINANCIAL TABLES FOLLOW
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except share data)
2019 |
2018 |
|||||||||||
(unaudited) | ||||||||||||
ASSETS | ||||||||||||
Investment securities, available for sale, at fair value | $ | 1,904,018 | $ | 1,512,252 | ||||||||
Distressed and other residential mortgage loans, at fair value | 1,116,128 | 737,523 | ||||||||||
Distressed and other residential mortgage loans, net | 210,466 | 285,261 | ||||||||||
Investments in unconsolidated entities | 168,933 | 73,466 | ||||||||||
Preferred equity and mezzanine loan investments | 178,997 | 165,555 | ||||||||||
Multi-family loans held in securitization trusts, at fair value | 15,863,264 | 11,679,847 | ||||||||||
Derivative assets | 20,673 | 10,263 | ||||||||||
Cash and cash equivalents | 65,906 | 103,724 | ||||||||||
Real estate held for sale in consolidated variable interest entities | — | 29,704 | ||||||||||
25,222 | 25,222 | |||||||||||
Receivables and other assets | 205,642 | 114,821 | ||||||||||
Total Assets (1) | $ | 19,759,249 | $ | 14,737,638 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Liabilities: | ||||||||||||
Repurchase agreements | $ | 2,559,880 | $ | 2,131,505 | ||||||||
Residential collateralized debt obligations | 42,119 | 53,040 | ||||||||||
Multi-family collateralized debt obligations, at fair value | 14,978,199 | 11,022,248 | ||||||||||
Convertible notes | 132,395 | 130,762 | ||||||||||
Subordinated debentures | 45,000 | 45,000 | ||||||||||
Mortgages and notes payable in consolidated variable interest entities | 935 | 31,227 | ||||||||||
Securitized debt | — | 42,335 | ||||||||||
Accrued expenses and other liabilities | 153,722 | 101,228 | ||||||||||
Total liabilities (1) | 17,912,250 | 13,557,345 | ||||||||||
Commitments and Contingencies | ||||||||||||
Stockholders' Equity: | ||||||||||||
Preferred stock, |
75,733 | 72,397 | ||||||||||
Preferred stock, |
100,170 | 86,862 | ||||||||||
Preferred stock, |
144,298 | 130,496 | ||||||||||
Common stock, |
2,626 | 1,556 | ||||||||||
Additional paid-in capital | 1,648,661 | 1,013,391 | ||||||||||
Accumulated other comprehensive income (loss) | 21,916 | (22,135 | ) | |||||||||
Accumulated deficit | (145,896 | ) | (103,178 | ) | ||||||||
Company's stockholders' equity | 1,847,508 | 1,179,389 | ||||||||||
Non-controlling interest in consolidated variable interest entities | (509 | ) | 904 | |||||||||
Total equity | 1,846,999 | 1,180,293 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 19,759,249 | $ | 14,737,638 |
(1) Our condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs") as the Company is the primary beneficiary of these VIEs. As of
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands, except per share data)
(unaudited)
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Investment securities and other interest earning assets | $ | 17,503 | $ | 11,147 | $ | 48,173 | $ | 35,087 | ||||||||||||||||||||||||
Distressed and other residential mortgage loans | 16,776 | 6,770 | 46,266 | 19,415 | ||||||||||||||||||||||||||||
Preferred equity and mezzanine loan investments | 5,505 | 5,874 | 15,660 | 15,182 | ||||||||||||||||||||||||||||
Multi-family loans held in securitization trusts | 139,818 | 86,458 | 384,743 | 257,179 | ||||||||||||||||||||||||||||
Total interest income | 179,602 | 110,249 | 494,842 | 326,863 | ||||||||||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||||||
Repurchase agreements and other interest bearing liabilities | 23,540 | 10,548 | 66,749 | 30,673 | ||||||||||||||||||||||||||||
Residential collateralized debt obligations | 338 | 462 | 1,162 | 1,348 | ||||||||||||||||||||||||||||
Multi-family collateralized debt obligations | 120,329 | 75,145 | 332,041 | 224,310 | ||||||||||||||||||||||||||||
Convertible notes | 2,713 | 2,669 | 8,097 | 7,971 | ||||||||||||||||||||||||||||
Subordinated debentures | 711 | 712 | 2,185 | 2,023 | ||||||||||||||||||||||||||||
Securitized debt | — | 1,110 | 742 | 3,684 | ||||||||||||||||||||||||||||
Total interest expense | 147,631 | 90,646 | 410,976 | 270,009 | ||||||||||||||||||||||||||||
NET INTEREST INCOME | 31,971 | 19,603 | 83,866 | 56,854 | ||||||||||||||||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||||||||||||||
Recovery of loan losses | 244 | 840 | 2,605 | 1,235 | ||||||||||||||||||||||||||||
Realized gains (losses), net | 6,102 | 3,232 | 32,556 | (7,228 | ) | |||||||||||||||||||||||||||
Unrealized gains (losses), net | 11,112 | 14,094 | 13,898 | 57,518 | ||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | (2,857 | ) | — | |||||||||||||||||||||||||||
Income from real estate held for sale in consolidated variable interest entities | — | 1,380 | 215 | 4,759 | ||||||||||||||||||||||||||||
Other income | 3,938 | 4,757 | 14,405 | 8,981 | ||||||||||||||||||||||||||||
Total non-interest income | 21,396 | 24,303 | 60,822 | 65,265 | ||||||||||||||||||||||||||||
GENERAL, ADMINISTRATIVE AND OPERATING EXPENSES: | ||||||||||||||||||||||||||||||||
General and administrative expenses | 8,345 | 6,196 | 25,804 | 16,129 | ||||||||||||||||||||||||||||
Base management and incentive fees | (31 | ) | 844 | 1,235 | 2,486 | |||||||||||||||||||||||||||
Expenses related to distressed and other residential mortgage loans | 3,974 | 2,117 | 9,805 | 5,531 | ||||||||||||||||||||||||||||
Expenses related to real estate held for sale in consolidated variable interest entities | — | 755 | 482 | 3,234 | ||||||||||||||||||||||||||||
Total general, administrative and operating expenses | 12,288 | 9,912 | 37,326 | 27,380 | ||||||||||||||||||||||||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES | 41,079 | 33,994 | 107,362 | 94,739 | ||||||||||||||||||||||||||||
Income tax benefit | (187 | ) | (454 | ) | (247 | ) | (547 | ) | ||||||||||||||||||||||||
NET INCOME | 41,266 | 34,448 | 107,609 | 95,286 | ||||||||||||||||||||||||||||
Net loss (income) attributable to non-controlling interest in consolidated variable interest entities | 113 | (475 | ) | 645 | (2,001 | ) | ||||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO COMPANY | 41,379 | 33,973 | 108,254 | 93,285 | ||||||||||||||||||||||||||||
Preferred stock dividends | (6,544 | ) | (5,925 | ) | (18,726 | ) | (17,775 | ) | ||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO COMPANY'S COMMON STOCKHOLDERS | $ | 34,835 | $ | 28,048 | $ | 89,528 | $ | 75,510 | ||||||||||||||||||||||||
Basic earnings per common share | $ | 0.15 | $ | 0.21 | $ | 0.44 | $ | 0.63 | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.15 | $ | 0.20 | $ | 0.43 | $ | 0.60 | ||||||||||||||||||||||||
Weighted average shares outstanding-basic | 234,043 | 132,413 | 203,270 | 119,955 | ||||||||||||||||||||||||||||
Weighted average shares outstanding-diluted | 255,537 | 152,727 | 224,745 | 140,044 |
SUMMARY OF QUARTERLY EARNINGS
(Dollar amounts in thousands, except per share data)
(unaudited)
For the Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 |
2019 |
2019 |
December 31, 2018 |
September 30, 2018 |
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Net interest income | $ | 31,971 | $ | 25,691 | $ | 26,203 | $ | 21,873 | $ | 19,603 | ||||||||||||||||||||||||||||||||||||
Total non-interest income | 21,396 | 8,561 | 30,865 | 1,217 | 24,303 | |||||||||||||||||||||||||||||||||||||||||
Total general, administrative and operating expenses | 12,288 | 12,394 | 12,644 | 14,091 | 9,912 | |||||||||||||||||||||||||||||||||||||||||
Income from operations before income taxes | 41,079 | 21,858 | 44,424 | 8,999 | 33,994 | |||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | (187 | ) | (134 | ) | 74 | (511 | ) | (454 | ) | |||||||||||||||||||||||||||||||||||||
Net income | 41,266 | 21,992 | 44,350 | 9,510 | 34,448 | |||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to non-controlling interest in consolidated variable interest entities | 113 | 743 | (211 | ) | 91 | (475 | ) | |||||||||||||||||||||||||||||||||||||||
Net income attributable to Company | 41,379 | 22,735 | 44,139 | 9,601 | 33,973 | |||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | (6,544 | ) | (6,257 | ) | (5,925 | ) | (5,925 | ) | (5,925 | ) | ||||||||||||||||||||||||||||||||||||
Net income attributable to Company's common stockholders | 34,835 | 16,478 | 38,214 | 3,676 | 28,048 | |||||||||||||||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.15 | $ | 0.08 | $ | 0.22 | $ | 0.02 | $ | 0.21 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.15 | $ | 0.08 | $ | 0.21 | $ | 0.02 | $ | 0.20 | ||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding - basic | 234,043 | 200,691 | 174,421 | 148,871 | 132,413 | |||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding - diluted | 255,537 | 202,398 | 194,970 | 149,590 | 152,727 | |||||||||||||||||||||||||||||||||||||||||
Book value per common share | $ | 5.77 | $ | 5.75 | $ | 5.75 | $ | 5.65 | $ | 5.72 | ||||||||||||||||||||||||||||||||||||
Dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||||||||||||||||||||||||||||||||
Dividends declared per preferred share on Series B Preferred Stock | $ | 0.48 | $ | 0.48 | $ | 0.48 | $ | 0.48 | $ | 0.48 | ||||||||||||||||||||||||||||||||||||
Dividends declared per preferred share on Series C Preferred Stock | $ | 0.49 | $ | 0.49 | $ | 0.49 | $ | 0.49 | $ | 0.49 | ||||||||||||||||||||||||||||||||||||
Dividends declared per preferred share on Series D Preferred Stock | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.50 |
Capital Allocation Summary
The following tables set forth our allocated capital by investment category as well as the weighted average yield on interest earning assets, average cost of funds and portfolio net interest margin for our interest earning assets for the periods indicated (dollar amounts in thousands):
Agency RMBS |
Residential Credit |
Multi- Family Credit |
Other | Total | ||||||||||||||||||||||||||
At |
||||||||||||||||||||||||||||||
Carrying value | $ | 955,838 | $ | 2,012,338 | $ | 1,462,582 | $ | 48,254 | $ | 4,479,012 | ||||||||||||||||||||
Net capital allocated | $ | 142,148 | $ | 1,142,951 | $ | 683,686 | $ | (121,786 | ) | $ | 1,846,999 | |||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||||||
Average interest earning assets | $ | 1,001,567 | $ | 1,772,485 | $ | 1,104,560 | $ | 26,235 | $ | 3,904,847 | ||||||||||||||||||||
Weighted average yield on interest earning assets | 2.60 | % | 5.34 | % | 10.29 | % | 10.38 | % | 6.07 | % | ||||||||||||||||||||
Less: Average cost of funds | (2.38 | )% | (4.27 | )% | (4.29 | )% | — | (3.67 | )% | |||||||||||||||||||||
Portfolio net interest margin | 0.22 | % | 1.07 | % | 6.00 | % | 10.38 | % | 2.40 | % | ||||||||||||||||||||
At |
||||||||||||||||||||||||||||||
Carrying value | $ | 994,200 | $ | 1,778,276 | $ | 1,402,217 | $ | 24,739 | $ | 4,199,432 | ||||||||||||||||||||
Net capital allocated | $ | 150,314 | $ | 900,599 | $ | 615,275 | $ | (138,506 | ) | $ | 1,527,682 | |||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||||||
Average interest earning assets | $ | 1,017,409 | $ | 1,506,973 | $ | 1,018,847 | $ | 1,098 | $ | 3,544,327 | ||||||||||||||||||||
Weighted average yield on interest earning assets | 2.66 | % | 4.97 | % | 10.54 | % | 10.44 | % | 5.91 | % | ||||||||||||||||||||
Less: Average cost of funds | (2.62 | )% | (4.54 | )% | (4.20 | )% | — | (3.75 | )% | |||||||||||||||||||||
Portfolio net interest margin | 0.04 | % | 0.43 | % | 6.34 | % | 10.44 | % | 2.16 | % | ||||||||||||||||||||
At |
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Carrying value | $ | 1,023,938 | $ | 1,467,571 | $ | 1,299,404 | $ | — | $ | 3,790,913 | ||||||||||||||||||||
Net capital allocated | $ | 157,663 | $ | 723,960 | $ | 686,904 | $ | (189,075 | ) | $ | 1,379,452 | |||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||||||
Average interest earning assets | $ | 1,053,529 | $ | 1,312,263 | $ | 927,201 | — | $ | 3,292,993 | |||||||||||||||||||||
Weighted average yield on interest earning assets | 2.87 | % | 5.91 | % | 10.45 | % | — | 6.22 | % | |||||||||||||||||||||
Less: Average cost of funds | (2.76 | )% | (4.71 | )% | (4.37 | )% | — | (3.82 | )% | |||||||||||||||||||||
Portfolio net interest margin | 0.11 | % | 1.20 | % | 6.08 | % | — | 2.40 | % | |||||||||||||||||||||
At |
||||||||||||||||||||||||||||||
Carrying value | $ | 1,037,730 | $ | 1,252,770 | $ | 1,166,628 | $ | — | $ | 3,457,128 | ||||||||||||||||||||
Net capital allocated | $ | 135,514 | $ | 555,900 | $ | 619,252 | $ | (130,373 | ) | $ | 1,180,293 | |||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||||||
Average interest earning assets | $ | 1,087,267 | $ | 848,777 | $ | 786,394 | — | $ | 2,722,438 | |||||||||||||||||||||
Weighted average yield on interest earning assets | 2.74 | % | 5.36 | % | 10.85 | % | — | 5.90 | % | |||||||||||||||||||||
Less: Average cost of funds | (2.46 | )% | (5.01 | )% | (5.00 | )% | — | (3.60 | )% | |||||||||||||||||||||
Portfolio net interest margin | 0.28 | % | 0.35 | % | 5.85 | % | — | 2.30 | % | |||||||||||||||||||||
At |
||||||||||||||||||||||||||||||
Carrying value | $ | 1,055,433 | $ | 619,945 | $ | 947,851 | $ | — | $ | 2,623,229 | ||||||||||||||||||||
Net capital allocated | $ | 224,545 | $ | 402,819 | $ | 632,823 | $ | (151,498 | ) | $ | 1,108,689 | |||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||||||||
Average interest earning assets | $ | 1,121,180 | $ | 597,200 | $ | 681,040 | $ | — | $ | 2,399,420 | ||||||||||||||||||||
Weighted average yield on interest earning assets | 2.67 | % | 5.33 | % | 11.55 | % | — | 5.85 | % | |||||||||||||||||||||
Less: Average cost of funds | (2.22 | )% | (4.68 | )% | (5.04 | )% | — | (3.30 | )% | |||||||||||||||||||||
Portfolio net interest margin | 0.45 | % | 0.65 | % | 6.51 | % | — | 2.55 | % | |||||||||||||||||||||
Source: