Annaly Capital Management, Inc. Reports 1st Quarter 2022 Results
NEW YORK–(BUSINESS WIRE)–Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly” or the “Company”) today announced its financial results for the quarter ended March 31, 2022.
Financial Highlights
- GAAP net income of $1.37 per average common share for the quarter
- Earnings available for distribution (“EAD”) of $0.28 per average common share for the quarter; unchanged from the prior quarter with dividend coverage of over 125%
- Economic return of (12.3%) for the first quarter
- Annualized GAAP return on average equity of 65.6% and annualized EAD return on average equity of 14.0%
- Book value per common share of $6.77
- GAAP leverage of 5.3x, up from 4.7x in the prior quarter; economic leverage of 6.4x, up from 5.7x in the prior quarter
- Declared quarterly common stock cash dividend of $0.22 per share
Business Highlights
Investment and Strategy
- Total assets of $84.4 billion, including $76.1 billion in highly liquid Agency portfolio(1)
- Due to meaningful spread widening and market volatility, Annaly’s Agency portfolio decreased 6% during the first quarter; however, notional holdings were roughly unchanged and portfolio activity focused on rotating upwards in coupon
- Hedge ratio increased from 95% to 109% as a result of a higher notional hedge portfolio; hedge activity focused on active delta hedging throughout the quarter and moving interest rate hedges further out the curve given higher rate environment
- Annaly’s Mortgage Servicing Rights (“MSR”) platform grew assets by 91% to $1.2 billion during the first quarter with MSR representing 9% of dedicated equity capital(2)
-
Annaly’s Residential Credit portfolio decreased 6% during the quarter to $4.4 billion,(1) driven by residential whole loan securitization activity as a result of strong production from the whole loan correspondent channel
- During the quarter, the correspondent channel achieved over $1 billion in aggregated expanded credit loans since launching last April
- Announced an agreement to sell Annaly’s Middle Market Lending portfolio for approximately $2.4 billion; portfolio sale enhances Annaly’s focus on all aspect of the housing finance market(3)
Financing and Capital
- $7.2 billion of unencumbered assets, including cash and unencumbered Agency MBS of $4.0 billion
- Average GAAP cost of interest bearing liabilities increased 10 basis points to 0.48% and average economic cost of interest bearing liabilities increased 14 basis points to 0.89%
- Annaly Residential Credit Group is now the second largest non-bank issuer of Prime Jumbo and Expanded Credit MBS with six securitizations totaling ~$2.5 billion in proceeds during the first quarter(4)
- Annaly Residential Credit Group expanded credit facility capacity by $250 million subsequent to quarter end
Corporate Responsibility & Governance
- Published disclosures outlining climate-related risks and opportunities across our business in the short-, medium-and long-term horizons taking into consideration the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”)
- Amended bylaws to lower the threshold for shareholders to call a special meeting
“The market environment during the first quarter of 2022 was one of the most challenging for fixed-income in decades, characterized by exceptional volatility with substantial spread widening and a notable increase in benchmark rates,” remarked David Finkelstein, Annaly’s Chief Executive Officer and President. “While our portfolio continued to generate strong earnings, our book value was not immune to the effects of Agency MBS underperformance resulting from market turbulence. We remain disciplined given our expectation for continued volatility, though we are encouraged by the improvement in new investment returns provided by wider spreads, greater certainty of mortgage cash flows in a lower prepayment environment and additional clarity with respect to quantitative tightening.
Further, the announced sale of our Middle Market Lending portfolio subsequent to quarter end marks a significant strategic achievement that is accretive to Annaly’s stockholders. Combined with the recent disposition of our Commercial Real Estate business and the expansion of our MSR and Residential Credit businesses, the transaction enables Annaly to deploy additional capital into our core housing finance strategy and continue to build on synergies between our Agency, MSR and Residential Credit portfolios.”
|
(1) |
Total portfolio represents Annaly’s investments that are on-balance sheet as well as investments that are off-balance sheet in which Annaly has economic exposure. Assets exclude assets transferred or pledged to securitization vehicles of $7.8 billion, include TBA purchase contracts (market value) of $18.3 billion, CMBX derivatives (market value) of $0.4 billion and $0.9 billion of retained securities that are eliminated in consolidation and are shown net of participations issued totaling $0.8 billion. |
|
|
(2) |
Includes limited partnership interests in two MSR funds, one of which is reported in Other Assets. |
|
|
(3) |
Annaly announced the sale of its Middle Market Lending portfolio on April 25, 2022. The transaction represents substantially all of the Middle Market Lending assets held on balance sheet as well as assets managed for third parties. Subject to customary closing conditions, the transfer of the Middle Market Lending portfolio is expected to be completed by end of the second quarter of 2022. For more information, please see the 8-K filing. |
|
|
(4) |
Issuer ranking data from Inside Nonconforming Markets as of April 9, 2022. |
Financial Performance
The following table summarizes certain key performance indicators as of and for the quarters ended March 31, 2022, December 31, 2021 and March 31, 2021:
|
|
March 31, 2022 |
|
December 31, 2021 |
|
March 31, 2021 |
|||||||
|
Book value per common share |
$ |
6.77 |
|
|
$ |
7.97 |
|
|
$ |
8.95 |
|
|
|
GAAP leverage at period-end (1) |
5.3:1 |
|
|
4.7:1 |
|
|
4.6:1 |
|
||||
|
GAAP net income (loss) per average common share (2) |
$ |
1.37 |
|
|
$ |
0.27 |
|
|
$ |
1.23 |
|
|
|
Annualized GAAP return (loss) on average equity |
|
65.62 |
% |
|
|
12.44 |
% |
|
|
49.87 |
% |
|
|
Net interest margin (3) |
|
3.20 |
% |
|
|
1.97 |
% |
|
|
3.39 |
% |
|
|
Average yield on interest earning assets (4) |
|
3.61 |
% |
|
|
2.31 |
% |
|
|
3.76 |
% |
|
|
Average GAAP cost of interest bearing liabilities (5) |
|
0.48 |
% |
|
|
0.38 |
% |
|
|
0.42 |
% |
|
|
Net interest spread |
|
3.13 |
% |
|
|
1.93 |
% |
|
|
3.34 |
% |
|
|
Non-GAAP metrics * |
|
|
|
|
|
|||||||
|
Earnings available for distribution per average common share (2) |
$ |
0.28 |
|
|
$ |
0.28 |
|
|
$ |
0.29 |
|
|
|
Annualized EAD return on average equity |
|
14.01 |
% |
|
|
13.10 |
% |
|
|
12.53 |
% |
|
|
Economic leverage at period-end (1) |
6.4:1 |
|
|
5.7:1 |
|
|
6.1:1 |
|
||||
|
Net interest margin (excluding PAA) (3) |
|
2.04 |
% |
|
|
2.03 |
% |
|
|
1.91 |
% |
|
|
Average yield on interest earning assets (excluding PAA) (4) |
|
2.62 |
% |
|
|
2.63 |
% |
|
|
2.71 |
% |
|
|
Average economic cost of interest bearing liabilities (5) |
|
0.89 |
% |
|
|
0.75 |
% |
|
|
0.87 |
% |
|
|
Net interest spread (excluding PAA) |
|
1.73 |
% |
|
|
1.88 |
% |
|
|
1.84 |
% |
|
|
* |
Represents a non-GAAP financial measure. Please refer to the “Non-GAAP Financial Measures” section for additional information. |
|
|
(1) |
GAAP leverage is computed as the sum of repurchase agreements, other secured financing, debt issued by securitization vehicles, participations issued and mortgages payable divided by total equity. Economic leverage is computed as the sum of recourse debt, cost basis of to-be-announced (“TBA”) and CMBX derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements and other secured financing (excluding certain non-recourse credit facilities). Certain credit facilities (included within other secured financing), debt issued by securitization vehicles, participations issued, and mortgages payable are non-recourse to the Company and are excluded from economic leverage. |
|
|
(2) |
Net of dividends on preferred stock. |
|
|
(3) |
Net interest margin represents interest income less interest expense divided by average Interest Earning Assets. Net interest margin (excluding PAA) represents the sum of interest income (excluding PAA) plus TBA dollar roll income and CMBX coupon income less interest expense and the net interest component of interest rate swaps divided by the sum of average Interest Earning Assets plus average outstanding TBA contract and CMBX balances. PAA represents the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to the Company’s Agency mortgage-backed securities. |
|
|
(4) |
Average yield on interest earning assets represents annualized interest income divided by average interest earning assets. Average interest earning assets reflects the average amortized cost of our investments during the period. Average yield on interest earning assets (excluding PAA) is calculated using annualized interest income (excluding PAA). |
|
|
(5) |
Average GAAP cost of interest bearing liabilities represents annualized interest expense divided by average interest bearing liabilities. Average interest bearing liabilities reflects the average balances during the period. Average economic cost of interest bearing liabilities represents annualized economic interest expense divided by average interest bearing liabilities. Economic interest expense is comprised of GAAP interest expense and the net interest component of interest rate swaps. |
Updates to Financial Disclosures
Beginning with the quarter ended March 31, 2022, in light of the continued growth of its mortgage servicing rights portfolio, the Company enhanced its financial disclosures by separately reporting servicing income and servicing expense in its Consolidated Statements of Comprehensive Income (Loss). Servicing income and servicing expense were previously included within Other income (loss). As a result of this change, prior periods have been adjusted to conform to the current presentation.
In addition, the Company consolidated certain line items in its Consolidated Statements of Comprehensive Income (Loss) in an effort to streamline and simplify its financial presentation. Amounts previously reported under Net interest component of interest rate swaps, Realized gains (losses) on termination or maturity of interest rate swaps, Unrealized gains (losses) on interest rate swaps and Net gains (losses) on other derivatives are combined into a single line item titled Net gains (losses) on derivatives. Similarly, amounts previously reported under Net gains (losses) on disposal of investments and other and Net unrealized gains (losses) on instruments measured at fair value through earnings are combined into a single line item titled Net gains (losses) on investments and other. As a result of these changes, prior periods have been adjusted to conform to the current presentation.
Commencing with the Company’s financial results for the quarter ended June 30, 2021 and for subsequent reporting periods, the Company has relabeled “Core Earnings (excluding PAA)” as “Earnings Available for Distribution” (“EAD”). Earnings Available for Distribution, which is a non-GAAP financial measure intended to supplement the Company’s financial results computed in accordance with U.S. generally accepted accounting principles (“GAAP”), has replaced the Company’s prior presentation of Core Earnings (excluding PAA). In addition, Core Earnings (excluding PAA) results from prior reporting periods have been relabeled Earnings Available for Distribution. In line with evolving industry practices, the Company believes the term Earnings Available for Distribution more accurately reflects the principal purpose of the measure than the term Core Earnings (excluding PAA) and serves as a useful indicator for investors in evaluating the Company’s performance and its ability to pay dividends.
The definition of Earnings Available for Distribution is identical to the definition of Core Earning (excluding PAA) from prior reporting periods. As such, Earnings Available for Distribution is defined as the sum of (a) economic net interest income, (b) TBA dollar roll income and CMBX coupon income, (c) net servicing income less realized amortization of MSR, (d) other income (loss) (excluding depreciation expense related to commercial real estate and amortization of intangibles, non-EAD income allocated to equity method investments and other non-EAD components of other income (loss)), (e) general and administrative expenses (excluding transaction expenses and non-recurring items) and (f) income taxes (excluding the income tax effect of non-EAD income (loss) items) and excludes (g) the premium amortization adjustment (“PAA”) representing the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to the Company’s Agency mortgage-backed securities.
Earnings Available for Distribution should not be considered a substitute for, or superior to, GAAP net income. Please refer to the “Non-GAAP Financial Measures” section for a detailed discussion of Earnings Available for Distribution.
In addition, beginning with the quarter ended June 30, 2021, the Company began classifying certain portfolio activity- or volume-related expenses (including but not limited to brokerage and commission fees, due diligence costs and securitization expenses) as Other income (loss) rather than Other general and administrative expenses in the Consolidated Statements of Comprehensive Income (Loss) to better reflect the nature of the items. As such, prior periods have been conformed to the current presentation.
Other Information
This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, risks and uncertainties related to the COVID-19 pandemic, including as related to adverse economic conditions on real estate-related assets and financing conditions; changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of our assets; changes in business conditions and the general economy; operational risks or risk management failures by us or critical third parties, including cybersecurity incidents; our ability to grow our residential credit business; the sale of our middle market lending business; credit risks related to our investments in credit risk transfer securities, residential mortgage-backed securities and related residential mortgage credit assets and corporate debt; risks related to investments in mortgage servicing rights; our ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting our business; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; and our ability to maintain our exemption from registration under the Investment Company Act. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.
Annaly is a leading diversified capital manager with investment strategies across mortgage finance. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Additional information on the company can be found at www.annaly.com.
Annaly routinely posts important information for investors on the Company’s website, www.annaly.com. Annaly intends to use this webpage as a means of disclosing material, non-public information, for complying with the Company’s disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. Annaly encourages investors, analysts, the media and others interested in Annaly to monitor the Company’s website, in addition to following Annaly’s press releases, SEC filings, public conference calls, presentations, webcasts and other information it posts from time to time on its website. To sign-up for email-notifications, please visit the “Investors” section of our website, www.annaly.com, then click on “Investor Resources” and select “Email Alerts” to complete the email notification form. The information contained on, or that may be accessed through, the Company’s webpage is not incorporated by reference into, and is not a part of, this document.
The Company prepares a supplemental investor presentation and a financial summary for the benefit of its shareholders. Both the First Quarter 2022 Investor Presentation and the First Quarter 2022 Financial Summary can be found at the Company’s website (www.annaly.com) in the Investors section under Investor Presentations.
Conference Call
The Company will hold the first quarter 2022 earnings conference call on April 28, 2022 at 9:00 a.m. Eastern Time. Participants are encouraged to pre-register for the conference call to receive a unique PIN to gain immediate access to the call and bypass the live operator. Pre-registration may be completed by accessing the pre-registration link found on the homepage or “Investors” section of the Company’s website at www.annaly.com, or by using the following link: https://dpregister.com/sreg/10164945/f20d8f5d22. Pre-registration may be completed at any time, including up to and after the call start time.
For participants who would like to join the call but have not pre-registered, access is available by dialing 844-735-3317 within the U.S., or 412-317-5703 internationally, and requesting the “Annaly Earnings Call.”
There will also be an audio webcast of the call on www.annaly.com. A replay of the call will be available for one week following the conference call. The replay number is 877-344-7529 for domestic calls and 412-317-0088 for international calls and the conference passcode is 4986417. If you would like to be added to the e-mail distribution list, please visit www.annaly.com, click on Investors, then select Email Alerts and complete the email notification form.
Financial Statements
|
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands, except per share data) |
||||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|||||||||||
|
|
(unaudited) |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Cash and cash equivalents |
$ |
955,840 |
|
|
$ |
1,342,090 |
|
|
$ |
1,046,300 |
|
|
$ |
1,380,456 |
|
|
$ |
1,122,793 |
|
|
|
Securities |
|
60,727,637 |
|
|
|
63,655,674 |
|
|
|
65,622,352 |
|
|
|
69,032,335 |
|
|
|
71,849,437 |
|
|
|
Loans, net |
|
3,617,818 |
|
|
|
4,242,043 |
|
|
|
3,580,521 |
|
|
|
3,563,008 |
|
|
|
2,603,343 |
|
|
|
Mortgage servicing rights |
|
1,108,937 |
|
|
|
544,562 |
|
|
|
572,259 |
|
|
|
202,616 |
|
|
|
113,080 |
|
|
|
Interests in MSR |
|
85,653 |
|
|
|
69,316 |
|
|
|
57,530 |
|
|
|
49,035 |
|
|
|
— |
|
|
|
Assets transferred or pledged to securitization vehicles |
|
7,809,307 |
|
|
|
6,086,308 |
|
|
|
4,738,481 |
|
|
|
4,073,156 |
|
|
|
3,768,922 |
|
|
|
Assets of disposal group held for sale |
|
— |
|
|
|
194,138 |
|
|
|
238,042 |
|
|
|
3,302,001 |
|
|
|
4,400,723 |
|
|
|
Derivative assets |
|
964,075 |
|
|
|
170,370 |
|
|
|
331,395 |
|
|
|
181,889 |
|
|
|
891,474 |
|
|
|
Receivable for unsettled trades |
|
407,225 |
|
|
|
2,656 |
|
|
|
42,482 |
|
|
|
14,336 |
|
|
|
144,918 |
|
|
|
Principal and interest receivable |
|
246,739 |
|
|
|
234,983 |
|
|
|
234,810 |
|
|
|
250,210 |
|
|
|
259,655 |
|
|
|
Goodwill and intangible assets, net |
|
23,110 |
|
|
|
24,241 |
|
|
|
25,371 |
|
|
|
26,502 |
|
|
|
37,337 |
|
|
|
Other assets |
|
238,793 |
|
|
|
197,683 |
|
|
|
172,890 |
|
|
|
300,761 |
|
|
|
177,907 |
|
|
|
Total assets |
$ |
76,185,134 |
|
|
$ |
76,764,064 |
|
|
$ |
76,662,433 |
|
|
$ |
82,376,305 |
|
|
$ |
85,369,589 |
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Liabilities |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Repurchase agreements |
$ |
52,626,503 |
|
|
$ |
54,769,643 |
|
|
$ |
55,475,420 |
|
|
$ |
60,221,067 |
|
|
$ |
61,202,477 |
|
|
|
Other secured financing |
|
914,255 |
|
|
|
903,255 |
|
|
|
729,555 |
|
|
|
909,655 |
|
|
|
922,605 |
|
|
|
Debt issued by securitization vehicles |
|
6,711,953 |
|
|
|
5,155,633 |
|
|
|
3,935,410 |
|
|
|
3,315,087 |
|
|
|
3,044,725 |
|
|
|
Participations issued |
|
775,432 |
|
|
|
1,049,066 |
|
|
|
641,006 |
|
|
|
315,810 |
|
|
|
180,527 |
|
|
|
Liabilities of disposal group held for sale |
|
— |
|
|
|
154,956 |
|
|
|
159,508 |
|
|
|
2,362,690 |
|
|
|
3,319,414 |
|
|
|
Derivative liabilities |
|
826,972 |
|
|
|
881,537 |
|
|
|
912,134 |
|
|
|
900,259 |
|
|
|
939,622 |
|
|
|
Payable for unsettled trades |
|
1,992,568 |
|
|
|
147,908 |
|
|
|
571,540 |
|
|
|
154,405 |
|
|
|
1,070,080 |
|
|
|
Interest payable |
|
80,870 |
|
|
|
91,176 |
|
|
|
109,586 |
|
|
|
173,721 |
|
|
|
100,949 |
|
|
|
Dividends payable |
|
321,423 |
|
|
|
321,142 |
|
|
|
318,986 |
|
|
|
317,714 |
|
|
|
307,671 |
|
|
|
Other liabilities |
|
456,388 |
|
|
|
94,423 |
|
|
|
91,421 |
|
|
|
66,721 |
|
|
|
213,924 |
|
|
|
Total liabilities |
|
64,706,364 |
|
|
|
63,568,739 |
|
|
|
62,944,566 |
|
|
|
68,737,129 |
|
|
|
71,301,994 |
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Preferred stock, par value $0.01 per share (2) |
|
1,536,569 |
|
|
|
1,536,569 |
|
|
|
1,536,569 |
|
|
|
1,536,569 |
|
|
|
1,536,569 |
|
|
|
Common stock, par value $0.01 per share (3) |
|
14,610 |
|
|
|
14,597 |
|
|
|
14,499 |
|
|
|
14,442 |
|
|
|
13,985 |
|
|
|
Additional paid-in capital |
|
20,321,952 |
|
|
|
20,313,832 |
|
|
|
20,228,366 |
|
|
|
20,178,692 |
|
|
|
19,754,826 |
|
|
|
Accumulated other comprehensive income (loss) |
|
(2,465,482 |
) |
|
|
958,410 |
|
|
|
1,638,638 |
|
|
|
1,780,275 |
|
|
|
2,002,231 |
|
|
|
Accumulated deficit |
|
(7,980,407 |
) |
|
|
(9,653,582 |
) |
|
|
(9,720,270 |
) |
|
|
(9,892,863 |
) |
|
|
(9,251,804 |
) |
|
|
Total stockholders’ equity |
|
11,427,242 |
|
|
|
13,169,826 |
|
|
|
13,697,802 |
|
|
|
13,617,115 |
|
|
|
14,055,807 |
|
|
|
Noncontrolling interests |
|
51,528 |
|
|
|
25,499 |
|
|
|
20,065 |
|
|
|
22,061 |
|
|
|
11,788 |
|
|
|
Total equity |
|
11,478,770 |
|
|
|
13,195,325 |
|
|
|
13,717,867 |
|
|
|
13,639,176 |
|
|
|
14,067,595 |
|
|
|
Total liabilities and equity |
$ |
76,185,134 |
|
|
$ |
76,764,064 |
|
|
$ |
76,662,433 |
|
|
$ |
82,376,305 |
|
|
$ |
85,369,589 |
|
|
|
|
||||||||||||||||||||
|
(1) |
Derived from the audited consolidated financial statements at December 31, 2021. |
|
|
(2) |
6.95% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock – Includes 28,800,000 shares authorized, issued and outstanding. 6.50% Series G Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock – Includes 17,000,000 shares authorized, issued and outstanding. 6.75% Series I Preferred Stock – Includes 17,700,000 shares authorized, issued and outstanding. |
|
|
(3) |
Includes 2,936,500,000 shares authorized. Includes 1,461,012,252 shares issued and outstanding at March 31, 2022; 1,459,736,258 shares issued and outstanding at December 31, 2021; 1,449,935,017 shares issued and outstanding at September 30, 2021; 1,444,156,029 shares issued and outstanding at June 30, 2021; 1,398,502,906 shares issued and outstanding at March 31, 2021. |
|
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (dollars in thousands, except per share data) (Unaudited) |
||||||||||||||||||||
|
|
For the quarters ended |
|||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|||||||||||
|
Net interest income |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Interest income |
$ |
655,850 |
|
|
$ |
422,780 |
|
|
$ |
412,972 |
|
|
$ |
383,906 |
|
|
$ |
763,378 |
|
|
|
Interest expense |
|
74,922 |
|
|
|
61,785 |
|
|
|
50,438 |
|
|
|
61,047 |
|
|
|
75,973 |
|
|
|
Net interest income |
|
580,928 |
|
|
|
360,995 |
|
|
|
362,534 |
|
|
|
322,859 |
|
|
|
687,405 |
|
|
|
Net servicing income |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Servicing and related income |
|
34,715 |
|
|
|
31,322 |
|
|
|
17,948 |
|
|
|
10,519 |
|
|
|
9,229 |
|
|
|
Servicing and related expense |
|
3,757 |
|
|
|
4,290 |
|
|
|
3,012 |
|
|
|
2,603 |
|
|
|
2,297 |
|
|
|
Net servicing income |
|
30,958 |
|
|
|
27,032 |
|
|
|
14,936 |
|
|
|
7,916 |
|
|
|
6,932 |
|
|
|
Other income (loss) |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net gains (losses) on investments and other |
|
(159,804 |
) |
|
|
(40,473 |
) |
|
|
102,819 |
|
|
|
20,207 |
|
|
|
38,405 |
|
|
|
Net gains (losses) on derivatives |
|
1,642,028 |
|
|
|
135,359 |
|
|
|
84,950 |
|
|
|
(581,962 |
) |
|
|
1,169,383 |
|
|
|
Loan loss (provision) reversal |
|
(608 |
) |
|
|
(194 |
) |
|
|
6,134 |
|
|
|
(494 |
) |
|
|
139,620 |
|
|
|
Business divestiture-related gains (losses) |
|
(354 |
) |
|
|
(16,514 |
) |
|
|
(14,009 |
) |
|
|
1,527 |
|
|
|
(249,563 |
) |
|
|
Other, net |
|
3,058 |
|
|
|
(415 |
) |
|
|
1,285 |
|
|
|
(6,241 |
) |
|
|
6,536 |
|
|
|
Total other income (loss) |
|
1,484,320 |
|
|
|
77,763 |
|
|
|
181,179 |
|
|
|
(566,963 |
) |
|
|
1,104,381 |
|
|
|
General and administrative expenses |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Compensation and management fee |
|
33,002 |
|
|
|
27,061 |
|
|
|
27,859 |
|
|
|
32,013 |
|
|
|
31,518 |
|
|
|
Other general and administrative expenses |
|
12,762 |
|
|
|
13,640 |
|
|
|
16,023 |
|
|
|
21,513 |
|
|
|
16,387 |
|
|
|
Total general and administrative expenses |
|
45,764 |
|
|
|
40,701 |
|
|
|
43,882 |
|
|
|
53,526 |
|
|
|
47,905 |
|
|
|
Income (loss) before income taxes |
|
2,050,442 |
|
|
|
425,089 |
|
|
|
514,767 |
|
|
|
(289,714 |
) |
|
|
1,750,813 |
|
|
|
Income taxes |
|
26,548 |
|
|
|
6,629 |
|
|
|
(6,767 |
) |
|
|
5,134 |
|
|
|
(321 |
) |
|
|
Net income (loss) |
|
2,023,894 |
|
|
|
418,460 |
|
|
|
521,534 |
|
|
|
(294,848 |
) |
|
|
1,751,134 |
|
|
|
Net income (loss) attributable to noncontrolling interests |
|
1,639 |
|
|
|
2,979 |
|
|
|
2,290 |
|
|
|
794 |
|
|
|
321 |
|
|
|
Net income (loss) attributable to Annaly |
|
2,022,255 |
|
|
|
415,481 |
|
|
|
519,244 |
|
|
|
(295,642 |
) |
|
|
1,750,813 |
|
|
|
Dividends on preferred stock |
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
Net income (loss) available (related) to common stockholders |
$ |
1,995,372 |
|
|
$ |
388,598 |
|
|
$ |
492,361 |
|
|
$ |
(322,525 |
) |
|
$ |
1,723,930 |
|
|
|
Net income (loss) per share available (related) to common stockholders |
|
|
|
|
|
|
|
|
||||||||||||
|
Basic |
$ |
1.37 |
|
|
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
(0.23 |
) |
|
$ |
1.23 |
|
|
|
Diluted |
$ |
1.36 |
|
|
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
(0.23 |
) |
|
$ |
1.23 |
|
|
|
Weighted average number of common shares outstanding |
|
|
|
|
|
|
|
|
||||||||||||
|
Basic |
|
1,461,363,637 |
|
|
|
1,454,138,154 |
|
|
|
1,445,315,914 |
|
|
|
1,410,239,138 |
|
|
|
1,399,210,925 |
|
|
|
Diluted |
|
1,462,451,965 |
|
|
|
1,455,411,503 |
|
|
|
1,446,357,867 |
|
|
|
1,410,239,138 |
|
|
|
1,400,000,727 |
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
||||||||||||
|
Net income (loss) |
$ |
2,023,894 |
|
|
$ |
418,460 |
|
|
$ |
521,534 |
|
|
$ |
(294,848 |
) |
|
$ |
1,751,134 |
|
|
|
Unrealized gains (losses) on available-for-sale securities |
|
(3,568,679 |
) |
|
|
(685,699 |
) |
|
|
(113,451 |
) |
|
|
(191,541 |
) |
|
|
(1,428,927 |
) |
|
|
Reclassification adjustment for net (gains) losses included in net income (loss) |
|
144,787 |
|
|
|
5,471 |
|
|
|
(28,186 |
) |
|
|
(30,415 |
) |
|
|
56,823 |
|
|
|
Other comprehensive income (loss) |
|
(3,423,892 |
) |
|
|
(680,228 |
) |
|
|
(141,637 |
) |
|
|
(221,956 |
) |
|
|
(1,372,104 |
) |
|
|
Comprehensive income (loss) |
|
(1,399,998 |
) |
|
|
(261,768 |
) |
|
|
379,897 |
|
|
|
(516,804 |
) |
|
|
379,030 |
|
|
|
Comprehensive income (loss) attributable to noncontrolling interests |
|
1,639 |
|
|
|
2,979 |
|
|
|
2,290 |
|
|
|
794 |
|
|
|
321 |
|
|
|
Comprehensive income (loss) attributable to Annaly |
|
(1,401,637 |
) |
|
|
(264,747 |
) |
|
|
377,607 |
|
|
|
(517,598 |
) |
|
|
378,709 |
|
|
|
Dividends on preferred stock |
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
Comprehensive income (loss) attributable to common stockholders |
$ |
(1,428,520 |
) |
|
$ |
(291,630 |
) |
|
$ |
350,724 |
|
|
$ |
(544,481 |
) |
|
$ |
351,826 |
|
|
|
|
||||||||||||||||||||
Contacts
Annaly Capital Management, Inc.
Investor Relations
1-888-8Annaly
www.annaly.com