RE/MAX Co-founder and Chairman Dave Liniger will be featured on the live webinar series, Secrets of Top Selling Agents, on...
Mortgage insurer United Guaranty Corp. promoted Brian Gould to the position of chief operating officer. Gould joined the...
Annaly Capital Management ($0.00 0%) reported first-quarter net income of $901.8 million, or 92 cents a share, rising 29% from year-ago levels when earnings equaled $699.9 million, or 92 cents a share.
The unchanged status of the company's earnings per share is a result of stock issuance. Annaly has 971.7 million common shares outstanding at the end of the first quarter; a year ago at that time, it had 752.4 million shares outstanding.
However, without the effect of the unrealized gains or losses on interest rate swaps and agency interest-only mortgage-backed securities, net income for the quarter totaled $529.3 million, or 54 cents a share, nearly even with the $530.6 million, or 70 cents a share, earned a year earlier. Analysts polled by Thomson Reuters had a consensus estimate of 48 cents a share.
Annaly, which invests in MBS, disposed of $5.3 billion of agency MBS and debentures, resulting in a realized gain of $80.3 million. During the same period in 2011, it disposed of $4.2 billion of agency MBS and debentures, resulting in a realized gain of $27.2 million.
The company provided an annualized return on average equity of 22.73%, down from the 24.56% offered a year ago. Without the effect of the unrealized gains or losses on interest rate swaps and agency interest-only MBS, it provided an annualized return on average equity of 13.34%, also down from 18.62% in the year-ago period.
Fixed-rate mortgage-backed securities and agency debentures comprised 91% of the company’s portfolio at the end of the quarter. The balance of the mortgage-backed securities and agency debentures was comprised of 8% adjustable-rate MBS and agency debentures and 1% LIBOR floating-rate collateralized mortgage obligations.
“Although prepayment speeds remained muted relative to the level of interest rates and the efforts of government-mandated refinancing programs, we are closely monitoring activity and believe our portfolio is prepared for a range of outcomes,” said Wellington Denahan-Norris, Annaly’s CIO and COO.
“After taking into account the effect of interest rate swaps, our portfolio of mortgage-backed securities and agency debentures was comprised of 41% floating-rate, 8% adjustable-rate and 51% fixed-rate assets,” Denahan-Norris said.
Don’t miss out: get HW delivered via email