This Day On The Street
Continue to site
ADVERTISEMENT
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

AG Mortgage Investment Trust, Inc. Reports Third Quarter Earnings

The Company had net realized gains of $4.1 million during the quarter ended September 30, 2012. Of this amount, $1.6 million, or $0.08 per share, was from sales of Agency RMBS and TBAs, $2.6 million, or $0.13 per share, was from the transfer of securities previously accounted for as derivatives through linked transactions and $(0.1) million, or $(0.00) per share, was from the net settlement of interest rate swaps. The Company had year-to-date net realized gains of $14.1 million. Of this amount, $9.4 million, or $0.57 per share, was from sales of Agency RMBS and TBAs, $2.4 million, or $0.15 per share, was from sales of credit investments, $2.6 million, or $0.16 per share was from the transfer of securities previously accounted for as derivatives through linked transactions and $(0.3) million, or $(0.02) per share, was from the net settlement of interest rate swaps.

The CPR for the Agency RMBS investment portfolio was 6.2% for the third quarter and 6.8% for the month of September 2012. The 2012 year-to-date CPR on the Agency RMBS investment portfolio was 5.5%. (6)

The weighted average cost basis of the Agency RMBS investment portfolio, excluding interest-only securities, was 105.0% as of September 30, 2012. The amortization of premiums (net of any accretion of discounts) on these securities for the third quarter was $(4.2) million, or $(0.21) per share. The Company recorded year-to-date premium amortization of $(10.9) million, or $(0.66) per share. The unamortized net Agency RMBS premium as of September 30, 2012 was $173.2 million.

Premiums and discounts associated with purchases of the Company's securities are amortized or accreted into interest income over the estimated life of such securities, using the effective yield method. The Company recorded $1.2 million, or $0.06 per share, of retrospective adjustment due to the change in projected cash flows on its bonds. Since the cost basis of the Company's Agency RMBS securities, excluding interest-only securities, exceeds the underlying principal balance by 5.0% as of September 30, 2012, slower actual and projected prepayments can have a meaningful positive impact, while faster actual or projected prepayments can have a meaningful negative impact on the Company's asset yields.
LEVERAGE AND HEDGING ACTIVITIES
 

The investment portfolio is financed with repurchase agreements as of September 30, 2012 as summarized below:
     

Repurchase Agreements Maturing Within:
Balance

Weighted Average Rate

Weighted Average Maturity
30 Days or Less $ 2,656,350,000 0.74% 15.4
31-60 Days 582,068,000 0.48% 44.9
61-90 Days 297,628,000 0.52% 70.7
Greater than 90 Days   581,475,386 0.70% 170.2
Total / Weighted Average $ 4,117,521,386 0.68% 45.4

The Company has entered into repurchase agreements with 26 counterparties. We continue to rebalance our exposures to counterparties and add new counterparties.

4 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs