AP NEWS

Anworth Reports Second Quarter 2018 Financial Results

August 2, 2018

SANTA MONICA, Calif.--(BUSINESS WIRE)--Aug 2, 2018--Anworth Mortgage Asset Corporation (NYSE: ANH) (the “Company”) today reported its financial results for the second quarter ended June 30, 2018.

Earnings

The following table summarizes the Company’s core earnings, GAAP net income to common stockholders, and comprehensive income for the three months ended June 30, 2018:

Core earnings is a non-GAAP financial measure, which is explained and reconciled to GAAP net income to common stockholders in the section entitled “Non-GAAP Financial Measures Related to Operating Results” near the end of this earnings release. Comprehensive income is shown on the consolidated statements of comprehensive income, which is included in this earnings release. Comprehensive income consists of the net income to all stockholders (including the amounts paid to preferred stockholders) and the change in other comprehensive income.

Portfolio

At June 30, 2018 and December 31, 2017, the composition of the Company’s portfolio at fair value was as follows (dollar amounts in thousands):

Agency MBS

At June 30, 2018, the allocation of the Company’s agency mortgage-backed securities (“Agency MBS”) was approximately 39% adjustable-rate and hybrid adjustable-rate Agency MBS, 44% fixed-rate Agency MBS, and 17% fixed-rate TBA Agency MBS. At December 31, 2017, the allocation of the Company’s Agency MBS was approximately 42% adjustable-rate and hybrid adjustable-rate Agency MBS, 43% fixed-rate Agency MBS, and 15% fixed-rate TBA Agency MBS, both periods of which are detailed below (dollar amounts in thousands):

At June 30, 2018 and December 31, 2017, the summary statistics of the Company’s Agency MBS portfolio were as follows:

At June 30, 2018 and December 31, 2017, the constant prepayment rate (“CPR”) and weighted average term to next interest rate reset of our Agency MBS were as follows:

Non-Agency MBS

Our Non-Agency MBS were either issued before 2008 or were recently issued and are collateralized by currently non-performing residential mortgage loans that were originated before 2008. The following tables summarize the Company’s Non-Agency MBS at June 30, 2018 and December 31, 2017 (dollar amounts in thousands):

Residential Mortgage Loans

The following table summarizes the Company’s residential mortgage loans held-for-investment at June 30, 2018 and December 31, 2017 (in thousands):

Residential Real Estate

At June 30, 2018 and December 31, 2017, Anworth Properties Inc. owned 88 single-family residential rental properties located in Southeastern Florida that were carried at a total cost, net of accumulated depreciation, of $14.0 million and $14.1 million, respectively.

MBS Portfolio Financing

Portfolio Leverage

At June 30, 2018, the Company’s leverage multiple was 5.92x. The leverage multiple is calculated by dividing the Company’s repurchase agreements outstanding by the aggregate of common stockholders’ equity plus preferred stock and junior subordinated notes. The Company’s effective leverage, which includes the effect of TBA dollar roll financing, was 7.04x at June 30, 2018. At December 31, 2017, the Company’s leverage multiple was 5.94x and the effective leverage was 6.97x.

Interest Rate Swaps

At June 30, 2018 and December 31, 2017, the Company’s interest rate swap agreements (“Swaps”) had the following notional amounts, weighted average fixed rates, and remaining terms (dollar amounts in thousands):

This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20180802005769/en.

AP RADIO
Update hourly