This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Anworth Announces Fourth Quarter 2011 Financial Results

Anworth Mortgage Asset Corporation (NYSE: ANH) reported today core earnings available to common stockholders of $26.9 million, or $0.20 per diluted share, for the fourth quarter ended December 31, 2011, consisting primarily of $28.4 million of net income less $1.5 million of dividends paid to our preferred stockholders. This compares to core earnings of $29.1 million, or $0.22 per diluted share, for the third quarter ended September 30, 2011.

“Core earnings” represents a non-GAAP financial measure, which we define as GAAP net income excluding impairment losses on mortgage-backed securities, or MBS. For the three months ended December 31, 2011, there were no impairment losses on MBS.

On December 15, 2011, we declared a quarterly common stock dividend of $0.21 per share, which was payable on January 27, 2012 to our holders of common stock as of the close of business on December 30, 2011.

On a non-GAAP basis and during the three months ended December 31, 2011, our estimated taxable income, on which we base our common stock dividends, was $29 million, or $0.21 per diluted share. The difference between net income and our estimate of taxable income earned during the three months ended December 31, 2011 reflects the non-deductibility for income tax purposes of executive compensation of approximately $1.6 million, or $0.01 per share. A reconciliation of taxable earnings to net income available to common stockholders appears at the end of this news release.

At December 31, 2011 and September 30, 2011, our book value per share was $6.96 and $6.93, respectively.

Our investments consist of Agency MBS, which constituted essentially all of our portfolio at December 31, 2011. At December 31, 2011 and September 30, 2011, the fair value of our Agency MBS portfolio and its allocation was approximately as follows:

   
December 31, 2011 September 30, 2011
 
Fair value of Agency MBS $8.76 billion $8.74 billion
 
Adjustable-rate Agency MBS (less than 1 year reset) 24% 23%
Adjustable-rate Agency MBS (1-2 year reset) 4% 7%
Adjustable-rate Agency MBS (2-7 year reset) 53% 50%
15-year fixed-rate Agency MBS 13% 14%
30-year fixed-rate Agency MBS 6% 6%
Agency floating-rate collateralized mortgage obligations (CMOs) <1% <1%
100% 100%
 
   
December 31, 2011 September 30, 2011
Weighted Average Coupon:
Adjustable-rate 3.27 % 3.36 %
Hybrid adjustable-rate 3.22 3.40
15-year fixed-rate 3.66 3.68
30-year fixed-rate 5.55 5.54
CMOs 1.09 1.02
Total Agency MBS: 3.42 % 3.56 %
Average Amortized Cost:
Adjustable-rate and hybrid adjustable-rate 102.83 % 102.78 %
15-year fixed-rate 103.29 103.22
30-year fixed-rate 100.82 102.59
Total Agency MBS: 102.78 % 102.72 %
Current yield (weighted average coupon divided by average amortized cost) 3.33 % 3.47 %
Unamortized premium $231.5 million $227.4 million
Unamortized premium as a percentage of par value

2.78

%

2.72

%

Premium amortization expense on Agency MBS $16.7 million $16.5 million
 
       
December 31, 2011 September 30, 2011
 
Fair value of Non-Agency MBS $1.6 million $2.2 million
 
   
December 31, 2011 September 30, 2011
 
Constant prepayment rate (CPR) of Agency MBS and Non-Agency MBS 25% 28%
Constant prepayment rate (CPR) of adjustable-rate and hybrid adjustable-rate Agency MBS 25% 29%
Weighted average term to next interest rate reset on Agency MBS and Non-Agency MBS 36 months 34 months
 

   
December 31, 2011 September 30, 2011
Repurchase Agreements:
 
Outstanding repurchase agreement balance $7.595 billion $7.435 billion
Average interest rate 0.36% 0.26%
Average maturity 38 days 38 days
Average interest rate after adjusting for interest rate swap transactions 1.18% 1.15%
Average maturity after adjusting for interest rate swap transactions 436 days 452 days
Fair value of Agency MBS pledged to counterparties $8.07 billion $7.9 billion
 
 
Interest Rate Swap Agreements:
 
Notional amount $3.03 billion $2.93 billion
Percentage of outstanding repurchase agreement balance 40% 39%
 

At December 31, 2011, our swap agreements had the following notional amounts (in thousands), weighted average interest rates and remaining terms (in months):

 
December 31, 2011
Notional Amount   Weighted Average Interest Rate   Remaining Term in Months
 
Less than 12 months $520,000 3.92 % 5
1 year to 2 years 375,000 3.32 14
2 years to 3 years 410,000 2.07 28
3 years to 4 years 680,000 2.07 42
Over 4 years 1,045,000 1.98 54
$3,030,000 2.51 % 34
 

At December 31, 2011, our leverage multiple was 7.25x, which was an increase from our leverage multiple of 7.18x at September 30, 2011. The leverage multiple is based on common stockholders’ equity plus all Preferred Stock and the junior subordinated notes.

   
December 31, 2011 September 30, 2011
Relative to Average Earning Assets During the Quarter:
 
Interest income earned 3.39 % 3.52 %
Amortization of premium 0.79 % 0.80 %
Average cost of funds on repurchase agreements and derivative instruments 1.18 % 1.15 %
Net interest rate spread 1.42 % 1.57 %
 




1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs