(1) Resets quarterly to 3-Month LIBOR
(2) The interest rate swap effective date is December 19, 2012 and does not accrue any income or expense until that date.
(3) The interest rate swap effective date is April 24, 2013 and does not accrue any income or expense until that date.
Conference CallThe Company will host a conference call at 9:00 AM Eastern Time on Thursday, July 19, 2012, to discuss its financial results for the quarter ended June 30, 2012. To participate in the event by telephone, please dial 866.713.8563 at least 10 minutes prior to the start time and reference the conference passcode 30403304. International callers should dial 617.597.5311 and reference the same passcode. The conference call will also be webcast live over the Internet and can be accessed at the Company’s web site at http://www.cysinv.com. To listen to the live webcast, please visit http://www.cysinv.com at least 15 minutes prior to the start of the call to register, download, and install necessary audio software. A dial-in replay will be available on Thursday, July 19, 2012, at approximately 12:00 PM Eastern Time through Thursday, August 2, 2012, at approximately 11:00 AM Eastern Time. To access this replay, please dial 888.286.8010 and enter the conference ID number 57013594. International callers should dial 617.801.6888 and enter the same conference ID number. A replay of the conference call will also be archived on the Company’s website at http://www.cysinv.com. About CYS Investments, Inc. CYS Investments, Inc. is a specialty finance company that invests on a leveraged basis in residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. The Company refers to these securities as Agency RMBS. CYS Investments, Inc. has elected to be taxed as a real estate investment trust for federal income tax purposes.
CYS INVESTMENTS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
|(In thousands, except per share numbers)||June 30, 2012||March 31, 2012||December 31, 2011*|
Investments in securities, at fair value (including pledged assets of $10,066,807, $8,806,898 and $8,412,295, respectively)
|Interest rate cap contracts, at fair value||43,871||4,548||5,966|
|Cash and cash equivalents||13,846||10,643||11,508|
Receivable for securities sold and principal repayments(including pledged assets of $354,838, $0 and $0,respectively)
|Interest rate swap contracts, at fair value||93,337||84,941||79,476|
|Payable for securities purchased||3,058,300||3,634,983||463,302|
Accrued interest payable (including accrued interest onrepurchase agreements of $3,920, $2,425 and $3,747,respectively
|Accrued expenses and other liabilities||3,163||1,887||1,390|
|Net assets consist of:|
Common Stock, $0.01 par value, 500,000 shares authorized(120,595, 116,139 and 82,753 shares issued and outstanding,respectively)
|Additional paid in capital||1,496,613||1,434,836||997,884|
|NET ASSET VALUE PER SHARE||$||13.52||$||13.14||$||13.02|
|* Derived from audited financial statements.|
CYS INVESTMENTS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
|Three Months Ended||Six Months Ended|
|(In thousands, except per share numbers)||June 30, 2012||March 31, 2012||June 30, 2012|
|Interest income from Agency RMBS||$||70,352||$||64,147||$||134,499|
|Total investment income||71,747||65,369||137,116|
|Compensation and benefits||3,346||3,164||6,510|
|General, administrative and other||1,933||1,955||3,888|
|Net investment income||57,475||53,397||110,872|
|GAINS AND (LOSSES) FROM INVESTMENTS:|
|Net realized gain (loss) on investments||61,113||5,173||66,286|
|Net unrealized appreciation (depreciation) on investments||7,473||27,977||35,450|
|Net gain (loss) from investments||68,586||33,150||101,736|
|GAINS AND (LOSSES) FROM SWAP AND CAP CONTRACTS:|
|Net swap and cap interest income (expense)||(12,687||)||(11,506||)||(24,193||)|
|Net gain (loss) on termination of swap contracts||—||—||—|
|Net unrealized appreciation (depreciation) on swap and cap contracts||(11,669||)||(5,923||)||(17,592||)|
|Net gain (loss) from swap and cap contracts||(24,356||)||(17,429||)||(41,785||)|
|NET INCOME PER COMMON SHARE - DILUTED||$||0.87||$||0.66||$||1.54|