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 Second Quarter 2012 Financial Results

Anworth Mortgage Asset Corporation (NYSE: ANH) today reported core earnings available to common stockholders of $24.4 million, or $0.18 per diluted share, for the second quarter ended June 30, 2012. Core earnings consisted of $25.9 million of net income less $1.5 million of dividends paid to our preferred stockholders. This compares to core earnings of $27.7 million, or $0.20 per diluted share, for the quarter ended March 31, 2012.

“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 June 30, 2012, there were no impairment losses on MBS.

On June 29, 2012, we declared a quarterly common stock dividend of $0.18 per share, which is payable on July 27, 2012 to our holders of common stock as of the close of business on July 9, 2012.

At June 30, 2012, our book value was $7.19 per share, versus $7.17 per share at March 31, 2012.

Our investments consist of Agency MBS, which constituted essentially our entire portfolio at June 30, 2012. At June 30, 2012 and March 31, 2012, the fair value of our Agency MBS portfolio and its allocation was approximately as follows:

   
June 30,

2012

March 31,

2012

 
Fair value of Agency MBS $9.15 billion $9.04 billion
 
Adjustable-rate Agency MBS (less than 1 year reset) 24% 23%
Adjustable-rate Agency MBS (1-2 year reset) 0% 3%
Adjustable-rate Agency MBS (2-5 year reset) 54% 54%
Adjustable-rate Agency MBS (> 5 year reset) 3% 2%
15-year fixed-rate Agency MBS 14% 13%
30-year fixed-rate Agency MBS 5% 5%
100% 100%
 

  June 30,

2012

  March 31,

2012

Weighted Average Coupon:
Adjustable-rate 3.23 % 3.22 %
Hybrid adjustable-rate 2.94 3.09
15-year fixed-rate 3.35 3.65
30-year fixed-rate 5.56 5.55
CMOs 1.05 1.05
Total Agency MBS: 3.18 % 3.31 %
Average Amortized Cost:
Adjustable-rate and hybrid adjustable-rate 102.89 % 102.86 %
15-year fixed-rate 103.04 103.36
30-year fixed-rate 100.84 100.83
Total Agency MBS: 102.82 % 102.82 %
Current yield (weighted average coupon divided by average amortized cost) 3.09 % 3.22 %
Unamortized premium $245.3 million $240.1 million
Unamortized premium as a percentage of par value 2.82 % 2.82 %
Premium amortization expense on Agency MBS $17.4 million $15.8 million
 
    June 30,

2012

  March 31,

2012

 
Fair value of Non-Agency MBS $0.7 million $1.0 million
 
    June 30,

2012

  March 31,

2012

 
Constant prepayment rate (CPR) of Agency MBS and Non-Agency MBS 24% 22%
Constant prepayment rate (CPR) of adjustable-rate and hybrid adjustable-rate Agency MBS 23% 21%
Weighted average term to next interest rate reset on Agency MBS and Non-Agency MBS 36 months 35 months
 
    June 30,

2012

  March 31,

2012

Repurchase Agreements:
Outstanding repurchase agreement balance $7.822 billion $7.600 billion
Average interest rate 0.38 % 0.33 %
Average maturity 32 days 34 days
Average interest rate after adjusting for interest rate swap transactions 1.11 % 1.05 %
Average maturity after adjusting for interest rate swap transactions 436 days 445 days
Fair value of Agency MBS pledged to counterparties $8.31 billion $8.09 billion
 
Interest Rate Swap Agreements:
Notional amount $3.18 billion $3.08 billion
Percentage of outstanding repurchase agreement balance 41 % 41 %
 

At June 30, 2012 and March 31, 2012, our swap agreements had the following notional amounts (in thousands), weighted average interest rates and remaining terms (in months):

  June 30,

2012

  March 31,

2012

Notional

Amount

  Weighted

Average

Interest

Rate

  Remaining

Term in

Months

Notional

Amount

  Weighted

Average

Interest

Rate

  Remaining

Term in

Months

 
Less than 12 months $ 645,000 3.75 % 6 $ 695,000 3.41 % 7
1 year to 2 years 325,000 2.31 20 200,000 2.85 20
2 years to 3 years 460,000 2.16 32 410,000 2.00 30
3 years to 4 years 1,100,000 2.04 44 730,000 2.06 42
Over 4 years   650,000 1.18 55   1,045,000 1.81 53
$ 3,180,000 2.25 % 34 $ 3,080,000 2.32 % 35
 

At June 30, 2012, our leverage multiple was 7.1x, which was an increase from our leverage multiple of 6.98x at March 31, 2012. The leverage multiple is calculated by dividing our repurchase agreements outstanding by the aggregate of common stockholders’ equity plus Preferred Stock and junior subordinated notes.

    June 30,

2012

  March 31,

2012

Relative to Average Earning Assets During the Quarter:
Interest income earned 3.15 % 3.27 %
Amortization of premium 0.80 0.75
Average cost of funds on repurchase agreements and derivative instruments 1.08 1.09
Net interest rate spread 1.27 % 1.43 %
 

At June 30, 2012, stockholders’ equity available to common stockholders was approximately $993 million, or a book value of $7.19 per share, based on approximately 138.1 million shares of common stock outstanding at quarter end. The $993 million equals total stockholders’ equity of $1.041 billion less the Series A Preferred Stock liquidating value of $46.9 million and less the difference between the Series B Preferred Stock liquidating value of $28.8 million and the proceeds from its sale of $27.2 million. At March 31, 2012, stockholders’ equity available to common stockholders was approximately $976 million, or a book value of $7.17 per share, based on approximately 136.1 million shares of common stock outstanding at quarter end. The $976 million equals total stockholders’ equity of $1.024 billion less the Series A Preferred Stock liquidating value of $46.9 million and less the difference between the Series B Preferred Stock liquidating value of $28.8 million and the proceeds from its sale of $27.2 million.

1 of 4

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 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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