-
GAAP net loss of $335.5 million, $0.37 loss per common share
-
Core earnings of $300.4 million, $0.30 earnings per common share
-
Strong capital position with capital ratio of 15.4% and leverage of
5.3:1
-
Book value of $13.23, up from $12.30 as of prior quarter
-
Net interest rate spread of 1.26%, up from 0.90% in prior quarter
NEW YORK--(BUSINESS WIRE)--
Annaly Capital Management, Inc. (NYSE:NLY) today announced its financial
results for the quarter ended June 30, 2014.
Financial Performance
GAAP net loss for the quarter ended June 30, 2014 was $335.5 million or
$0.37 per average common share as compared to GAAP net loss of $203.4
million or $0.23 per average common share for the quarter ended March
31, 2014, and GAAP net income of $1.6 billion or $1.71 per average
common share for the quarter ended June 30, 2013. The decrease from the
quarter ended March 31, 2014 to the quarter ended June 30, 2014 was
largely due to a decline in other income, partially offset by higher
interest income. The decrease in other income is primarily attributable
to higher net losses on interest rate swaps, a significant portion of
which were realized upon terminations of interest rate swaps with
shorter remaining maturities during the current quarter, and lower gains
on disposal of investments, partially offset by lower unrealized losses
on interest-only Agency mortgage-backed securities and trading assets.
The decrease from the quarter ended June 30, 2013 to the quarter ended
June 30, 2014 was largely attributable to higher net losses on interest
rate swaps, a significant portion of which were realized upon
terminations of interest rate swaps with shorter remaining maturities
during the current quarter, and higher unrealized losses on
interest-only Agency mortgage-backed securities and trading assets. Core
earnings for the quarter ended June 30, 2014 was $300.4 million or $0.30
per average common share as compared to $239.7 million or $0.23 per
average common share for the quarter ended March 31, 2014, and $294.2
million or $0.29 per average common share for the quarter ended June 30,
2013. "Core earnings" represents a non-GAAP measure and is defined as
net income (loss) excluding gains or losses on disposals of investments
and termination of interest rate swaps, unrealized gains or losses on
interest rate swaps and Agency interest-only mortgage-backed securities,
net loss on extinguishment of the 4% Convertible Senior Notes due 2015,
net gains and losses on trading assets, impairment losses and loss on
previously held equity interest in CreXus Investment Corp.
For the quarter ended June 30, 2014, the annualized yield on average
interest-earning assets was 3.20% and the annualized cost of funds on
average interest-bearing liabilities, including the net interest
payments on interest rate swaps, was 1.94%, which resulted in an average
interest rate spread of 1.26%. This represented a 36 basis point
increase from the 0.90% average interest rate spread for the quarter
ended March 31, 2014, and a 25 basis point increase from the 1.01%
average interest rate spread for the quarter ended June 30, 2013. Net
interest margin for the quarters ended June 30, 2014, March 31, 2014 and
June 30, 2013 was 1.57%, 1.32% and 1.20%, respectively. Our annualized
yield on average interest-earning assets was relatively unchanged for
the quarter ended June 30, 2014 when compared to the quarter ended March
31, 2014. Our annualized cost of funds on average interest-bearing
liabilities decreased for the quarter ended June 30, 2014 when compared
to the quarter ended March 31, 2014 as a result of the Company unwinding
a significant portion of its interest rate swaps with shorter remaining
maturities during the period.
Wellington J. Denahan, Chairman and Chief Executive Officer of Annaly,
commented on the Company’s results. “We welcome the continued reduction
of monetary policy influences on the markets and all the opportunities
it brings. We continue to feel comfortable in our ability to sustain
attractive risk-adjusted returns in the quarters ahead.”
Asset Portfolio
Investment Securities, which are comprised of Agency mortgage-backed
securities and Agency debentures, were $82.4 billion at June 30, 2014,
compared to $77.8 billion at March 31, 2014 and $95.8 billion at June
30, 2013. As of June 30, 2014, substantially all of the Company’s
Investment Securities were Fannie Mae, Freddie Mac and Ginnie Mae
mortgage-backed securities and debentures. Fixed-rate Agency
mortgage-backed securities and debentures comprised 95% of the Company’s
Investment Securities portfolio at June 30, 2014. Adjustable-rate Agency
mortgage-backed securities and debentures comprised 5% of the Company’s
Investment Securities portfolio. During the quarter ended June 30, 2014,
the Company disposed of $6.1 billion of Investment Securities, resulting
in a realized gain of $5.9 million. During the quarter ended March 31,
2014, the Company disposed of $5.0 billion of Investment Securities,
resulting in a realized gain of $80.7 million. During the quarter ended
June 30, 2013, the Company disposed of $14.8 billion of Investment
Securities, resulting in a realized gain of $148.0 million.
The Constant Prepayment Rate for the quarters ended June 30, 2014, March
31, 2014, and June 30, 2013, was 7%, 6% and 17%, respectively. The net
amortization of premiums and accretion of discounts on Investment
Securities for the quarters ended June 30, 2014, March 31, 2014, and
June 30, 2013, was $149.6 million, $119.0 million, and $320.2 million,
respectively. The total net premium balance on Investment Securities at
June 30, 2014, March 31, 2014, and June 30, 2013, was $5.4 billion, $5.1
billion, and $5.3 billion, respectively. The amortized cost basis of the
Company’s non-interest-only Investment Securities at June 30, 2014,
March 31, 2014, and June 30, 2013, was 105.5%, 105.2%, and 104.6%,
respectively. The amortized cost basis of the Company’s interest-only
Investment Securities at June 30, 2014, March 31, 2014, and June 30,
2013, was 15.1%, 14.7%, and 14.2%, respectively.
The Company’s commercial investment portfolio consists of commercial
real estate investments and corporate debt. Commercial real estate debt
and preferred equity, including securitized loans, totaled $1.6 billion
and investments in commercial real estate totaled $74.4 million at June
30, 2014. Commercial real estate debt and preferred equity, including
securitized loans, totaled $1.6 billion and investments in commercial
real estate totaled $40.3 million at March 31, 2014. The commercial
investment portfolio, net of financing, represented 11% of stockholders’
equity at June 30, 2014, compared to 12% at March 31, 2014. The weighted
average yield on commercial real estate debt and preferred equity as of
June 30, 2014, March 31, 2014, and June 30, 2013, was 8.93%, 9.13% and
9.90%, respectively. The weighted average levered equity yield on
investments in commercial real estate, excluding real estate
held-for-sale, as of June 30, 2014, March 31, 2014, and June 30, 2013,
was 9.23%, 11.69% and 12.71%, respectively. Current quarter acquisitions
of commercial real estate have a lower weighted average yield during the
first year as a result of transaction costs. The weighted average
levered stabilized equity yield related to current quarter acquisitions
is estimated to be 13.39%.
Capital and Funding
At June 30, 2014, total stockholders’ equity was $13.4 billion. Leverage
at June 30, 2014, March 31, 2014, and June 30, 2013, was 5.3:1, 5.2:1
and 6.2:1, respectively. Leverage includes repurchase agreements,
Convertible Senior Notes, securitized debt, loan participation and
mortgages payable. Securitized debt, loan participation and mortgages
payable are non-recourse to the Company. At June 30, 2014, March 31,
2014, and June 30, 2013, the Company’s capital ratio, which represents
the ratio of stockholders’ equity to total assets, was 15.4%, 15.2%, and
12.9%, respectively. At June 30, 2014, March 31, 2014, and June 30,
2013, the Company’s net capital ratio was 15.4%, 15.4%, and 13.3%,
respectively. The Company’s net capital ratio takes into account the net
balances of its U.S Treasury securities and U.S Treasury securities
sold, not yet purchased, reverse repurchase agreements and repurchase
agreements, and securities borrowed and securities loaned. On a GAAP
basis, the Company produced an annualized return (loss) on average
equity for the quarters ended June 30, 2014, March 31, 2014, and June
30, 2013 of (10.32%), (6.52%), and 45.87%, respectively. On a Core
earnings basis, the Company provided an annualized return on average
equity for the quarters ended June 30, 2014, March 31, 2014, and June
30, 2013, of 9.24%, 7.68%, and 8.24%, respectively.
At June 30, 2014, March 31, 2014, and June 30, 2013 the Company had
outstanding $70.4 billion, $64.5 billion, and $81.4 billion of
repurchase agreements, respectively, with weighted average borrowing
rates of 1.59%, 2.43%, and 1.72%, respectively, after giving effect to
the Company’s interest rate swaps, and weighted average remaining
maturities of 173 days, 187 days, and 191 days, respectively.
At June 30, 2014, March 31, 2014, and June 30, 2013, the Company had a
common stock book value per share of $13.23, $12.30 and $13.03,
respectively.
The following table presents the principal balance and weighted average
rate of repurchase agreements by maturity at June 30, 2014:
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
Principal Balance
|
|
|
Weighted Average Rate
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
Within 30 days
|
|
|
$ 19,443,213
|
|
|
0.37%
|
|
30 to 59 days
|
|
|
21,751,921
|
|
|
0.31%
|
|
60 to 89 days
|
|
|
2,931,207
|
|
|
0.39%
|
|
90 to 119 days
|
|
|
2,698,579
|
|
|
0.45%
|
|
Over 120 days(1)
|
|
|
23,547,298
|
|
|
1.07%
|
|
Total
|
|
|
$ 70,372,218
|
|
|
0.59%
|
|
(1) Approximately 13% of the total repurchase agreements have a
remaining maturity over 1 year.
|
|
|
Hedge Portfolio
At June 30, 2014, the Company had entered into interest rate swaps with
a net notional amount of $30.8 billion and interest rate swaptions with
a net notional amount of $2.6 billion, or 48% of the Company’s
repurchase agreements, compared to 94% of the Company’s repurchase
agreements at March 31, 2014 and 63% of the Company’s repurchase
agreements at June 30, 2013. During the quarter ended June 30, 2014, the
Company realized losses of $772.5 million upon terminating a significant
portion of its interest rate swaps with shorter remaining maturities.
Changes in the unrealized gains or losses on the interest rate swaps are
reflected in the Company’s Consolidated Statements of Comprehensive
Income (Loss). The purpose of the interest rate swaps is to mitigate the
risk of rising interest rates that affect the Company’s cost of funds.
Since the Company pays a fixed rate and receives a floating rate on the
notional amount of the swaps, the intended effect of the swaps is to
lock in a cost of financing. As of June 30, 2014, the swap portfolio,
excluding forward starting swaps, had a weighted average pay rate of
2.48%, a weighted average receive rate of 0.21% and weighted average
maturity of 8.87 years.
At June 30, 2014, the Company had entered into interest rate swaptions
with a net notional amount of $2.6 billion. Changes in the unrealized
gains or losses on the interest rate swaptions are reflected in the
Company’s Consolidated Statements of Comprehensive Income (Loss). The
interest rate swaptions provide the Company with the option to enter
into an interest rate swap agreement for a specified notional amount,
duration, and pay and receive rates. As of June 30, 2014, the long
swaption portfolio had a weighted average pay rate of 3.16% and weighted
average maturity of 3.86 months. As of June 30, 2014, there were no
short swaption positions.
The following table summarizes certain characteristics of the Company’s
interest rate swaps at June 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
Current Notional (1)
|
|
|
Weighted
Average Pay
Rate (2)
(3)
|
|
|
Weighted
Average Receive
Rate (2)
|
|
|
Weighted
Average Years
to Maturity (2)
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 - 3 years
|
|
|
$
|
702,539
|
|
|
2.23
|
%
|
|
|
0.16
|
%
|
|
|
2.97
|
|
3 - 6 years
|
|
|
|
6,338,000
|
|
|
1.66
|
%
|
|
|
0.19
|
%
|
|
|
4.53
|
|
6 - 10 years
|
|
|
|
18,488,800
|
|
|
2.52
|
%
|
|
|
0.22
|
%
|
|
|
8.01
|
|
Greater than 10 years
|
|
|
|
5,301,800
|
|
|
3.58
|
%
|
|
|
0.19
|
%
|
|
|
20.03
|
|
Total / Weighted Average
|
|
|
$
|
30,831,139
|
|
|
2.48
|
%
|
|
|
0.21
|
%
|
|
|
8.87
|
|
(1)
|
|
Notional amount includes $1.3 billion in forward starting pay fixed
swaps.
|
|
(2)
|
|
Excludes forward starting swaps.
|
|
(3)
|
|
Weighted average fixed rate on forward starting pay fixed swaps was
3.10%.
|
|
|
|
|
The following table summarizes certain characteristics of the Company’s
interest rate swaptions at June 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Underlying
Notional
|
|
|
Weighted Average
Underlying Pay
Rate
|
|
|
Weighted Average
Underlying Receive
Rate
|
|
|
Weighted Average
Underlying Years to
Maturity
|
|
|
Weighted Average Months
to Expiration
|
|
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long
|
|
|
$ 2,600,000
|
|
|
3.16%
|
|
|
3M LIBOR
|
|
|
9.76
|
|
|
3.86
|
Key Metrics
The following table presents key metrics of the Company’s portfolio,
liabilities and hedging positions, and performance as of and for the
quarters ended June 30, 2014, March 31, 2014, and June 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2014
|
|
|
March 31, 2014
|
|
|
June 30, 2013
|
|
Portfolio Related Metrics:
|
|
|
|
|
|
|
|
|
|
|
|
Fixed-rate Agency mortgage-backed securities and debentures as a
percentage of portfolio
|
|
|
|
95%
|
|
|
93%
|
|
|
92%
|
|
Adjustable-rate Agency mortgage-backed securities and debentures as
a percentage of portfolio
|
|
|
|
5%
|
|
|
7%
|
|
|
8%
|
|
Weighted average yield on commercial real estate debt and preferred
equity at period-end
|
|
|
|
8.93%
|
|
|
9.13%
|
|
|
9.90%
|
|
Weighted average net equity yield on investments in commercial real
estate at period-end (1)
|
|
|
|
9.23%
|
|
|
11.69%
|
|
|
12.71%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Hedging Metrics:
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average days to maturity on repurchase agreements
outstanding at period-end
|
|
|
|
173
|
|
|
187
|
|
|
191
|
|
Notional amount of interest rate swaps and swaptions as a percentage
of repurchase agreements
|
|
|
|
48%
|
|
|
94%
|
|
|
63%
|
|
Weighted average pay rate on interest rate swaps at period-end
(2)
|
|
|
|
2.48%
|
|
|
2.16%
|
|
|
2.05%
|
|
Weighted average receive rate on interest rate swaps at period-end
(2)
|
|
|
|
0.21%
|
|
|
0.19%
|
|
|
0.22%
|
|
Weighted average net rate on interest rate swaps at period-end
(2)
|
|
|
|
2.27%
|
|
|
1.97%
|
|
|
1.83%
|
|
Leverage at period-end (3)
|
|
|
|
5.3:1
|
|
|
5.2:1
|
|
|
6.2:1
|
|
Capital ratio at period end
|
|
|
|
15.4%
|
|
|
15.2%
|
|
|
12.9%
|
|
Net capital ratio at period end
|
|
|
|
15.4%
|
|
|
15.4%
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Related Metrics:
|
|
|
|
|
|
|
|
|
|
|
|
Annualized yield on average interest earning assets during the
quarter (4)
|
|
|
|
3.20%
|
|
|
3.21%
|
|
|
2.54%
|
|
Annualized cost of funds on average interest bearing liabilities
during the quarter (5)
|
|
|
|
1.94%
|
|
|
2.31%
|
|
|
1.53%
|
|
Annualized interest rate spread during the quarter
|
|
|
|
1.26%
|
|
|
0.90%
|
|
|
1.01%
|
|
Net interest margin
|
|
|
|
1.57%
|
|
|
1.32%
|
|
|
1.20%
|
|
Annualized return (loss) on average equity
|
|
|
|
(10.32%)
|
|
|
(6.52%)
|
|
|
45.87%
|
|
Annualized Core return on average equity
|
|
|
|
9.24%
|
|
|
7.68%
|
|
|
8.24%
|
|
Common dividend declared during the quarter
|
|
|
|
$0.30
|
|
|
$0.30
|
|
|
$0.40
|
|
Book value per common share
|
|
|
|
$13.23
|
|
|
$12.30
|
|
|
$13.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Excludes real estate held-for-sale.
|
|
(2)
|
|
Excludes forward starting swaps.
|
|
(3)
|
|
Includes repurchase agreements, Convertible Senior Notes,
securitized debt, loan participation and mortgages payable.
Securitized debt, loan participation and mortgages payable are
non-recourse to the Company.
|
|
(4)
|
|
Average interest earning assets reflects the average amortized cost
of our investments during the period.
|
|
(5)
|
|
Includes interest expense on interest rate swaps.
|
|
|
|
|
The following table presents a reconciliation between GAAP net income
and Core earnings for the quarters ended June 30, 2014, March 31, 2014,
and June 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
For the quarters ended
|
|
|
|
|
|
June 30, 2014
|
|
|
March 31, 2014
|
|
|
June 30, 2013
|
|
|
|
|
|
(dollars in thousands)
|
|
GAAP net income
|
|
|
|
$
|
(335,512
|
)
|
|
|
$
|
(203,351
|
)
|
|
|
$
|
1,638,213
|
|
|
Realized (gains) losses on termination of interest rate swaps
|
|
|
|
|
772,491
|
|
|
|
|
6,842
|
|
|
|
|
35,649
|
|
|
Unrealized (gains) losses on interest rate swaps
|
|
|
|
|
(175,062
|
)
|
|
|
|
348,942
|
|
|
|
|
(1,109,022
|
)
|
|
Net (gains) losses on disposal of investments
|
|
|
|
|
(5,893
|
)
|
|
|
|
(79,710
|
)
|
|
|
|
(147,998
|
)
|
|
Net (gains) losses on trading assets
|
|
|
|
|
46,489
|
|
|
|
|
146,228
|
|
|
|
|
(54,046
|
)
|
|
Net unrealized (gains) losses on interest-only Agency
mortgage-backed securities
|
|
|
|
|
(2,085
|
)
|
|
|
|
20,793
|
|
|
|
|
(111,521
|
)
|
|
Impairment of goodwill
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
23,987
|
|
|
Loss on previously held equity interest in CreXus
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
18,896
|
|
|
Core earnings
|
|
|
|
$
|
300,428
|
|
|
|
$
|
239,744
|
|
|
|
$
|
294,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per average common share
|
|
|
|
$
|
(0.37
|
)
|
|
|
$
|
(0.23
|
)
|
|
|
$
|
1.71
|
|
|
Core earnings per average common share
|
|
|
|
$
|
0.30
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the components of the Company’s interest
income and interest expense for the quarters ended June 30, 2014, March
31, 2014, and June 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
For the quarters ended
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
June 30,
|
|
|
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities
|
|
|
|
$
|
640,287
|
|
|
$
|
614,419
|
|
|
$
|
685,148
|
|
Commercial investment portfolio(1)
|
|
|
|
|
43,325
|
|
|
|
39,486
|
|
|
|
15,335
|
|
U.S. Treasury securities
|
|
|
|
|
-
|
|
|
|
1,329
|
|
|
|
7,242
|
|
Securities loaned
|
|
|
|
|
-
|
|
|
|
114
|
|
|
|
2,302
|
|
Reverse repurchase agreements
|
|
|
|
|
271
|
|
|
|
500
|
|
|
|
2,775
|
|
Other
|
|
|
|
|
79
|
|
|
|
53
|
|
|
|
134
|
|
Total interest income
|
|
|
|
|
683,962
|
|
|
|
655,901
|
|
|
|
712,936
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase agreements
|
|
|
|
|
103,773
|
|
|
|
103,131
|
|
|
|
141,945
|
|
Convertible Senior Notes
|
|
|
|
|
20,319
|
|
|
|
18,897
|
|
|
|
16,364
|
|
U.S. Treasury securities sold, not yet purchased
|
|
|
|
|
-
|
|
|
|
1,076
|
|
|
|
4,075
|
|
Securities borrowed
|
|
|
|
|
-
|
|
|
|
95
|
|
|
|
1,737
|
|
Securitized debt of consolidated VIE
|
|
|
|
|
1,853
|
|
|
|
1,611
|
|
|
|
-
|
|
Participation sold
|
|
|
|
|
162
|
|
|
|
161
|
|
|
|
134
|
|
Total interest expense
|
|
|
|
|
126,107
|
|
|
|
124,971
|
|
|
|
164,255
|
|
Net interest income
|
|
|
|
$
|
557,855
|
|
|
$
|
530,930
|
|
|
$
|
548,681
|
|
(1)
|
|
Consists of commercial real estate debt and preferred equity and
corporate debt.
|
|
|
|
|
Dividend Declarations
Common dividends declared for the quarters ended June 30, 2014, March
31, 2014, and June 30, 2013 were $0.30, $0.30, and $0.40 per common
share, respectively. The Company distributes dividends based on its
current estimate of taxable earnings per common share, not GAAP net
income. Taxable earnings and GAAP net income will typically differ due
to items such as non-taxable unrealized and realized gains and losses,
differences in premium amortization and discount accretion,
non-deductible general and administrative expenses and other GAAP to tax
differences. The annualized dividend yield on the Company’s common stock
for the quarter ended June 30, 2014, based on the June 30, 2014 closing
price of $11.43, was 10.50%, as compared to 10.94% for the quarter ended
March 31, 2014, and 12.73% for the quarter ended June 30, 2013.
Other Information
Annaly’s principal business objective is to generate net income for
distribution to its shareholders from its investments. Annaly is a
Maryland corporation that has elected to be taxed as a real estate
investment trust (“REIT”). Annaly is managed and advised by Annaly
Management Company LLC.
The Company prepares a supplement to provide additional quarterly
information for the benefit of its shareholders. The supplement can be
found at the Company’s website in the Investor Relations section under
“Quarterly Supplemental Information”.
Conference Call
The Company will hold the second quarter 2014 earnings conference call
on August 7, 2014 at 10:00 a.m. EDT. The number to call is 888-317-6003
for domestic calls and 412-317-6061 for international calls. The
conference passcode is 0006993. There will also be an audio webcast of
the call on www.annaly.com.
The replay of the call is 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
10049842. If you would like to be added to the e-mail distribution list,
please visit www.annaly.com,
click on Investor Relations, then select Email Alerts and complete the
email notification form.
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, 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 financings; changes in the market value of our assets; changes in
business conditions and the general economy; our ability to grow the
commercial mortgage business; credit risks related to our investments in
commercial real estate assets and corporate debt; our ability to
consummate any contemplated investment opportunities; changes in
government regulations affecting our business; our ability to maintain
our qualification as a REIT for federal income tax purposes; our ability
to maintain our exemption from registration under the Investment Company
Act of 1940, as amended; risks associated with the businesses of our
subsidiaries, including the investment advisory business of a
wholly-owned subsidiary and the broker-dealer business of a wholly-owned
subsidiary. 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.
We do not undertake, and specifically disclaim 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.
|
|
|
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
|
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
|
|
|
2014
|
|
2014
|
|
2013 (1)
|
|
2013
|
|
2013
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
1,320,666
|
|
|
$
|
924,197
|
|
|
$
|
552,436
|
|
|
$
|
1,122,722
|
|
|
$
|
725,537
|
|
|
Reverse repurchase agreements
|
|
|
|
-
|
|
|
|
444,375
|
|
|
|
100,000
|
|
|
|
31,074
|
|
|
|
171,234
|
|
|
Securities borrowed
|
|
|
|
-
|
|
|
|
513,500
|
|
|
|
2,582,893
|
|
|
|
3,439,954
|
|
|
|
2,425,024
|
|
|
Investments, at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,117,915
|
|
|
|
2,459,617
|
|
|
|
-
|
|
|
Agency mortgage-backed securities
|
|
|
|
81,055,337
|
|
|
|
75,350,388
|
|
|
|
70,388,949
|
|
|
|
79,902,834
|
|
|
|
92,487,318
|
|
|
Agency debentures
|
|
|
|
1,348,727
|
|
|
|
2,408,259
|
|
|
|
2,969,885
|
|
|
|
3,128,853
|
|
|
|
3,306,473
|
|
|
Investment in affiliates
|
|
|
|
143,495
|
|
|
|
137,647
|
|
|
|
139,447
|
|
|
|
136,748
|
|
|
|
134,948
|
|
|
Commercial real estate debt and preferred equity (2)
|
|
|
|
1,586,169
|
|
|
|
1,640,206
|
|
|
|
1,583,969
|
|
|
|
1,227,182
|
|
|
|
938,357
|
|
|
Investments in commercial real estate
|
|
|
|
74,355
|
|
|
|
40,313
|
|
|
|
60,132
|
|
|
|
60,424
|
|
|
|
67,203
|
|
|
Corporate debt, held for investment
|
|
|
|
151,344
|
|
|
|
145,394
|
|
|
|
117,687
|
|
|
|
75,988
|
|
|
|
61,682
|
|
|
Receivable for investments sold
|
|
|
|
856,983
|
|
|
|
19,116
|
|
|
|
1,193,730
|
|
|
|
934,964
|
|
|
|
1,499,140
|
|
|
Accrued interest and dividends receivable
|
|
|
|
283,423
|
|
|
|
276,007
|
|
|
|
273,079
|
|
|
|
297,161
|
|
|
|
340,671
|
|
|
Receivable for investment advisory income
|
|
|
|
6,380
|
|
|
|
6,498
|
|
|
|
6,839
|
|
|
|
10,055
|
|
|
|
10,374
|
|
|
Intangible for customer relationships
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,572
|
|
|
|
6,474
|
|
|
Goodwill
|
|
|
|
94,781
|
|
|
|
94,781
|
|
|
|
94,781
|
|
|
|
103,245
|
|
|
|
102,783
|
|
|
Interest rate swaps, at fair value
|
|
|
|
170,604
|
|
|
|
340,890
|
|
|
|
559,044
|
|
|
|
360,373
|
|
|
|
38,950
|
|
|
Other derivatives, at fair value
|
|
|
|
7,938
|
|
|
|
40,105
|
|
|
|
146,725
|
|
|
|
85,180
|
|
|
|
91,270
|
|
|
Other assets
|
|
|
|
50,743
|
|
|
|
33,101
|
|
|
|
34,949
|
|
|
|
52,211
|
|
|
|
61,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
87,150,945
|
|
|
$
|
82,414,777
|
|
|
$
|
81,922,460
|
|
|
$
|
93,433,157
|
|
|
$
|
102,468,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities sold, not yet purchased, at fair value
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,918,394
|
|
|
$
|
2,403,524
|
|
|
$
|
-
|
|
|
Repurchase agreements
|
|
|
|
70,372,218
|
|
|
|
64,543,949
|
|
|
|
61,781,001
|
|
|
|
69,211,309
|
|
|
|
81,397,335
|
|
|
Securities loaned
|
|
|
|
7
|
|
|
|
513,510
|
|
|
|
2,527,668
|
|
|
|
3,299,090
|
|
|
|
2,284,245
|
|
|
Payable for investments purchased
|
|
|
|
781,227
|
|
|
|
1,898,507
|
|
|
|
764,131
|
|
|
|
2,546,467
|
|
|
|
2,833,214
|
|
|
Convertible Senior Notes
|
|
|
|
831,167
|
|
|
|
827,486
|
|
|
|
825,262
|
|
|
|
824,512
|
|
|
|
824,229
|
|
|
Securitized debt of consolidated VIE
|
|
|
|
260,700
|
|
|
|
260,700
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Mortgages payable
|
|
|
|
30,316
|
|
|
|
19,317
|
|
|
|
19,332
|
|
|
|
19,346
|
|
|
|
19,361
|
|
|
Participation sold
|
|
|
|
13,866
|
|
|
|
13,963
|
|
|
|
14,065
|
|
|
|
14,164
|
|
|
|
14,324
|
|
|
Accrued interest payable
|
|
|
|
157,782
|
|
|
|
170,644
|
|
|
|
160,921
|
|
|
|
162,755
|
|
|
|
164,190
|
|
|
Dividends payable
|
|
|
|
284,261
|
|
|
|
284,247
|
|
|
|
284,230
|
|
|
|
331,557
|
|
|
|
396,888
|
|
|
Interest rate swaps, at fair value
|
|
|
|
928,789
|
|
|
|
1,272,616
|
|
|
|
1,141,828
|
|
|
|
1,504,258
|
|
|
|
1,189,178
|
|
|
Other derivatives, at fair value
|
|
|
|
6,533
|
|
|
|
6,045
|
|
|
|
55,518
|
|
|
|
125,468
|
|
|
|
-
|
|
|
Accounts payable and other liabilities
|
|
|
|
35,160
|
|
|
|
39,081
|
|
|
|
25,055
|
|
|
|
44,983
|
|
|
|
82,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
73,702,026
|
|
|
|
69,850,065
|
|
|
|
69,517,405
|
|
|
|
80,487,433
|
|
|
|
89,205,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
7.875% Series A Cumulative Redeemable Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,412,500 authorized, issued and outstanding
|
|
|
|
177,088
|
|
|
|
177,088
|
|
|
|
177,088
|
|
|
|
177,088
|
|
|
|
177,088
|
|
|
7.625% Series C Cumulative Redeemable Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,650,000 authorized, 12,000,000 issued and outstanding
|
|
|
|
290,514
|
|
|
|
290,514
|
|
|
|
290,514
|
|
|
|
290,514
|
|
|
|
290,514
|
|
|
7.50% Series D Cumulative Redeemable Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,400,000 authorized, issued and outstanding
|
|
|
|
445,457
|
|
|
|
445,457
|
|
|
|
445,457
|
|
|
|
445,457
|
|
|
|
445,457
|
|
|
Common stock, par value $0.01 per share, 1,956,937,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
authorized, 947,540,823, 947,488,945, 947,432,862, 947,304,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and 947,483,487 issued and outstanding, respectively
|
|
|
|
9,475
|
|
|
|
9,475
|
|
|
|
9,474
|
|
|
|
9,473
|
|
|
|
9,475
|
|
|
Additional paid-in capital
|
|
|
|
14,776,302
|
|
|
|
14,770,553
|
|
|
|
14,765,761
|
|
|
|
14,759,738
|
|
|
|
14,754,681
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
(572,256
|
)
|
|
|
(2,088,479
|
)
|
|
|
(2,748,933
|
)
|
|
|
(1,454,790
|
)
|
|
|
(1,289,246
|
)
|
|
Accumulated deficit
|
|
|
|
(1,677,661
|
)
|
|
|
(1,039,896
|
)
|
|
|
(534,306
|
)
|
|
|
(1,281,756
|
)
|
|
|
(1,124,665
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
|
13,448,919
|
|
|
|
12,564,712
|
|
|
|
12,405,055
|
|
|
|
12,945,724
|
|
|
|
13,263,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
87,150,945
|
|
|
$
|
82,414,777
|
|
|
$
|
81,922,460
|
|
|
$
|
93,433,157
|
|
|
$
|
102,468,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Derived from the audited consolidated financial statements at
December 31, 2013.
|
|
(2) Includes senior securitized mortgages of consolidated VIE with a
carrying value of $398.3 million at June 30, 2014.
|
|
|
|
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
(UNAUDITED)
|
|
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarters ended
|
|
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Net interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
$
|
683,962
|
|
|
$
|
655,901
|
|
|
$
|
771,249
|
|
|
$
|
697,160
|
|
|
$
|
712,936
|
|
|
Interest expense
|
|
|
|
126,107
|
|
|
|
124,971
|
|
|
|
137,393
|
|
|
|
145,476
|
|
|
|
164,255
|
|
|
Net interest income
|
|
|
|
557,855
|
|
|
|
530,930
|
|
|
|
633,856
|
|
|
|
551,684
|
|
|
|
548,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains (losses) on interest rate swaps(1)
|
|
|
|
(220,934
|
)
|
|
|
(260,435
|
)
|
|
|
(242,182
|
)
|
|
|
(227,909
|
)
|
|
|
(212,727
|
)
|
|
Realized gains (losses) on termination of interest rate swaps
|
|
|
|
(772,491
|
)
|
|
|
(6,842
|
)
|
|
|
(13,177
|
)
|
|
|
(36,658
|
)
|
|
|
(35,649
|
)
|
|
Unrealized gains (losses) on interest rate swaps
|
|
|
|
175,062
|
|
|
|
(348,942
|
)
|
|
|
561,101
|
|
|
|
6,343
|
|
|
|
1,109,022
|
|
|
Subtotal
|
|
|
|
(818,363
|
)
|
|
|
(616,219
|
)
|
|
|
305,742
|
|
|
|
(258,224
|
)
|
|
|
860,646
|
|
|
Investment advisory income
|
|
|
|
6,109
|
|
|
|
6,123
|
|
|
|
8,490
|
|
|
|
9,558
|
|
|
|
12,187
|
|
|
Net gains (losses) on disposal of investments
|
|
|
|
5,893
|
|
|
|
79,710
|
|
|
|
28,602
|
|
|
|
43,602
|
|
|
|
147,998
|
|
|
Dividend income from affiliates
|
|
|
|
4,048
|
|
|
|
13,045
|
|
|
|
4,048
|
|
|
|
4,048
|
|
|
|
4,048
|
|
|
Net gains (losses) on trading assets
|
|
|
|
(46,489
|
)
|
|
|
(146,228
|
)
|
|
|
41,936
|
|
|
|
(96,022
|
)
|
|
|
54,046
|
|
|
Net unrealized gains (losses) on interest-only Agency
mortgage-backed securities
|
|
|
|
2,085
|
|
|
|
(20,793
|
)
|
|
|
60,181
|
|
|
|
(7,099
|
)
|
|
|
111,521
|
|
|
Impairment of goodwill
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(23,987
|
)
|
|
Loss on previously held equity interest in CreXus
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,896
|
)
|
|
Other income (loss)
|
|
|
|
4,687
|
|
|
|
1,460
|
|
|
|
3,945
|
|
|
|
4,212
|
|
|
|
7,192
|
|
|
Subtotal
|
|
|
|
(23,667
|
)
|
|
|
(66,683
|
)
|
|
|
147,202
|
|
|
|
(41,701
|
)
|
|
|
294,109
|
|
|
Total other income (loss)
|
|
|
|
(842,030
|
)
|
|
|
(682,902
|
)
|
|
|
452,944
|
|
|
|
(299,925
|
)
|
|
|
1,154,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and management fee
|
|
|
|
39,277
|
|
|
|
38,521
|
|
|
|
43,385
|
|
|
|
41,774
|
|
|
|
43,764
|
|
|
Other general and administrative expenses
|
|
|
|
12,912
|
|
|
|
8,857
|
|
|
|
12,909
|
|
|
|
16,970
|
|
|
|
21,367
|
|
|
Total general and administrative expenses
|
|
|
|
52,189
|
|
|
|
47,378
|
|
|
|
56,294
|
|
|
|
58,744
|
|
|
|
65,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
(336,364
|
)
|
|
|
(199,350
|
)
|
|
|
1,030,506
|
|
|
|
193,015
|
|
|
|
1,638,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
(852
|
)
|
|
|
4,001
|
|
|
|
1,757
|
|
|
|
557
|
|
|
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
(335,512
|
)
|
|
|
(203,351
|
)
|
|
|
1,028,749
|
|
|
|
192,458
|
|
|
|
1,638,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on preferred stock
|
|
|
|
17,992
|
|
|
|
17,992
|
|
|
|
17,992
|
|
|
|
17,992
|
|
|
|
17,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) available (related) to common stockholders
|
|
|
$
|
(353,504
|
)
|
|
$
|
(221,343
|
)
|
|
$
|
1,010,757
|
|
|
$
|
174,466
|
|
|
$
|
1,620,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share available (related) to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.37
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
1.07
|
|
|
$
|
0.18
|
|
|
$
|
1.71
|
|
|
Diluted
|
|
|
$
|
(0.37
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
1.03
|
|
|
$
|
0.18
|
|
|
$
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
947,515,127
|
|
|
|
947,458,813
|
|
|
|
947,386,060
|
|
|
|
947,303,205
|
|
|
|
947,411,380
|
|
|
Diluted
|
|
|
|
947,515,127
|
|
|
|
947,458,813
|
|
|
|
995,625,622
|
|
|
|
955,690,471
|
|
|
|
995,229,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(335,512
|
)
|
|
$
|
(203,351
|
)
|
|
$
|
1,028,749
|
|
|
$
|
192,458
|
|
|
$
|
1,638,213
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) on available-for-sale securities
|
|
|
|
1,522,126
|
|
|
|
741,172
|
|
|
|
(1,244,500
|
)
|
|
|
(121,942
|
)
|
|
|
(3,144,496
|
)
|
|
Reclassification adjustment for net (gains) losses included in net
income (loss)
|
|
|
|
(5,903
|
)
|
|
|
(80,718
|
)
|
|
|
(49,643
|
)
|
|
|
(43,602
|
)
|
|
|
(147,998
|
)
|
|
Other comprehensive income (loss)
|
|
|
|
1,516,223
|
|
|
|
660,454
|
|
|
|
(1,294,143
|
)
|
|
|
(165,544
|
)
|
|
|
(3,292,494
|
)
|
|
Comprehensive income (loss)
|
|
|
$
|
1,180,711
|
|
|
$
|
457,103
|
|
|
$
|
(265,394
|
)
|
|
$
|
26,914
|
|
|
$
|
(1,654,281
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Interest expense related to the Company’s interest rate swaps is
recorded in Realized gains (losses) on interest rate swaps on the
Consolidated Statements of Comprehensive Income (Loss).
|
|
|
|
|
|
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
(dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net interest income:
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
$
|
1,339,863
|
|
|
|
$
|
1,450,153
|
|
|
Interest expense
|
|
|
|
|
251,078
|
|
|
|
|
341,845
|
|
|
Net interest income
|
|
|
|
|
1,088,785
|
|
|
|
|
1,108,308
|
|
|
|
|
|
|
|
|
|
|
|
Other income (loss):
|
|
|
|
|
|
|
|
|
Realized gains (losses) on interest rate swaps(1)
|
|
|
|
|
(481,369
|
)
|
|
|
|
(438,203
|
)
|
|
Realized gains (losses) on termination of interest rate swaps
|
|
|
|
|
(779,333
|
)
|
|
|
|
(52,027
|
)
|
|
Unrealized gains (losses) on interest rate swaps
|
|
|
|
|
(173,880
|
)
|
|
|
|
1,434,756
|
|
|
Subtotal
|
|
|
|
|
(1,434,582
|
)
|
|
|
|
944,526
|
|
|
Investment advisory income
|
|
|
|
|
12,232
|
|
|
|
|
25,595
|
|
|
Net gains (losses) on disposal of investments
|
|
|
|
|
85,603
|
|
|
|
|
330,841
|
|
|
Dividend income from affiliates
|
|
|
|
|
17,093
|
|
|
|
|
10,479
|
|
|
Net gains (losses) on trading assets
|
|
|
|
|
(192,717
|
)
|
|
|
|
55,595
|
|
|
Net unrealized gains (losses) on interest-only Agency
mortgage-backed securities
|
|
|
|
|
(18,708
|
)
|
|
|
|
191,648
|
|
|
Impairment of goodwill
|
|
|
|
|
-
|
|
|
|
|
(23,987
|
)
|
|
Loss on previously held equity interest in CreXus
|
|
|
|
|
-
|
|
|
|
|
(18,896
|
)
|
|
Other income (loss)
|
|
|
|
|
6,147
|
|
|
|
|
7,324
|
|
|
Subtotal
|
|
|
|
|
(90,350
|
)
|
|
|
|
578,599
|
|
|
Total other income (loss)
|
|
|
|
|
(1,524,932
|
)
|
|
|
|
1,523,125
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses:
|
|
|
|
|
|
|
|
|
Compensation and management fee
|
|
|
|
|
77,798
|
|
|
|
|
82,207
|
|
|
Other general and administrative expenses
|
|
|
|
|
21,769
|
|
|
|
|
34,836
|
|
|
Total general and administrative expenses
|
|
|
|
|
99,567
|
|
|
|
|
117,043
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
|
(535,714
|
)
|
|
|
|
2,514,390
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
3,149
|
|
|
|
|
5,899
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
(538,863
|
)
|
|
|
|
2,508,491
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on preferred stock
|
|
|
|
|
35,984
|
|
|
|
|
35,984
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) available (related) to common stockholders
|
|
|
|
$
|
(574,847
|
)
|
|
|
$
|
2,472,507
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share available (related) to common
stockholders:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(0.61
|
)
|
|
|
$
|
2.61
|
|
|
Diluted
|
|
|
|
$
|
(0.61
|
)
|
|
|
$
|
2.51
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
947,487,125
|
|
|
|
|
947,331,087
|
|
|
Diluted
|
|
|
|
|
947,487,125
|
|
|
|
|
995,151,942
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared Per Share of Common Stock
|
|
|
|
$
|
0.60
|
|
|
|
$
|
0.85
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(538,863
|
)
|
|
|
$
|
2,508,491
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) on available-for-sale securities
|
|
|
|
|
2,263,298
|
|
|
|
|
(4,011,647
|
)
|
|
Reclassification adjustment for net (gains) losses included in net
income (loss)
|
|
|
|
|
(86,621
|
)
|
|
|
|
(330,841
|
)
|
|
Other comprehensive income (loss)
|
|
|
|
|
2,176,677
|
|
|
|
|
(4,342,488
|
)
|
|
Comprehensive income (loss)
|
|
|
|
$
|
1,637,814
|
|
|
|
$
|
(1,833,997
|
)
|
|
(1)
|
|
Interest expense related to the Company’s interest rate swaps is
recorded in Realized gains (losses) on interest rate swaps on the
Consolidated Statements of Comprehensive Income (Loss).
|
|
|
|
|
Annaly Capital Management, Inc.
Investor Relations
1-888-8Annaly
www.annaly.com
Source: Annaly Capital Management, Inc.