NEW YORK–(BUSINESS WIRE)–Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly” or the “Company”) today announced its financial results for the quarter ended September 30, 2023.
Financial Highlights
- GAAP net income (loss) of ($1.21) per average common share for the quarter
- Earnings available for distribution (“EAD”) of $0.66 per average common share for the quarter
- Economic return (loss) of (8.8%) for the third quarter
- Book value per common share of $18.25
- GAAP leverage of 7.1x, up from 6.1x in the prior quarter; economic leverage of 6.4x, up from 5.8x in the prior quarter
- Declared quarterly common stock cash dividend of $0.65 per share
Business Highlights
Investment and Strategy
- Total portfolio of $76.2 billion, including $68.5 billion in highly liquid Agency portfolio(1)
-
Annaly’s Agency portfolio decreased modestly by 4%, with portfolio activity focused on further gravitation up in coupon
- Annaly’s Agency portfolio represents 64% of dedicated equity capital(2), down from 69% in the prior quarter
- Maintained a conservative hedge position and actively managed portfolio duration by adding longer-dated hedges; hedge ratio increased from 105% to 115% during the quarter
-
Annaly’s Residential Credit portfolio increased 6% to $5.3 billion(1), representing 17% of dedicated equity capital(2)
- Continued growth driven by strong performance from our residential whole loan correspondent channel, with $2.4 billion of quarterly lock volume and $1.5 billion of whole loans settled during the third quarter
- Annaly’s Mortgage Servicing Rights (“MSR”) portfolio grew 4% quarter-over-quarter to $2.3 billion(3) in assets, representing 19% of dedicated equity capital(2)
Financing and Capital
- $4.7 billion of unencumbered assets(4), including cash and unencumbered Agency MBS of $2.8 billion
- Average GAAP cost of interest bearing liabilities increased 27 basis points to 5.27% and average economic cost of interest bearing liabilities increased 51 basis points to 3.28% quarter-over-quarter
- Extended weighted average days to maturity for repurchase agreements to 52 days, up from 44 days in the prior quarter, amidst healthy funding market conditions
-
Annaly Residential Credit Group priced ten whole loan securitizations totaling $3.9 billion in proceeds since the beginning of the year(5)
- Annaly remains the largest non-bank issuer and the second largest issuer overall of Prime Jumbo and Expanded Credit MBS from the beginning of 2022 through 2023 year-to-date(6)
Corporate Responsibility & Governance
-
Expanded Board of Directors with election of two new Independent Directors, Manon Laroche and Scott Wede
- Annaly’s Board of Directors is currently comprised of twelve members, ten of whom are independent and seven of whom identify as women and/or racially/ethnically diverse
“The third quarter of 2023 marked a challenging period for fixed income markets driven by a rapid rise in global yields. Agency MBS spreads widened amidst ongoing supply, MBS runoff from Federal Reserve and bank portfolios as well as elevated volatility,” commented David Finkelstein, Annaly’s Chief Executive Officer and Chief Investment Officer. “Annaly entered the quarter with lower leverage and substantial liquidity, which, along with our dynamic hedging, enabled us to remain nimble. Despite our active portfolio management, higher rates and spreads weighed on our book value and economic return for the quarter.
“While risks to the operating environment persist, we expect to benefit from attractive investment returns across our three businesses and a supportive financing environment. Within Agency MBS, historically wide spreads provide ample compensation for above average volatility and technical challenges. Meanwhile, our Residential Credit business continues to grow, bolstered by strong performance from our whole loan correspondent channel, and our MSR portfolio is strengthened by stable cash flows and rising yields supporting valuations.”
|
(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 $11.5 billion, include TBA purchase contracts (market value) of $1.9 billion and $1.2 billion of retained securities that are eliminated in consolidation and are shown net of participations issued totaling $0.8 billion. |
|
(2) |
Capital allocation for each of the investment strategies is calculated as the difference between each investment strategy’s allocated assets, which include TBA purchase contracts, and liabilities. Dedicated capital allocations as of September 30, 2023 exclude commercial real estate assets. |
|
(3) |
Includes limited partnership interests in a MSR fund, which is reported in Other Assets. |
|
(4) |
Represents Annaly’s excess liquidity and defined as assets that have not been pledged or securitized (generally including cash and cash equivalents, Agency MBS, CRT, Non-Agency MBS, residential mortgage loans, MSR, reverse repurchase agreements, other unencumbered financial assets and capital stock). |
|
(5) |
Includes a $407 million residential whole loan securitization that priced in October 2023. |
|
(6) |
Issuer ranking data from Inside Nonconforming Markets for 2022 through 2023 YTD (October 6, 2023 issue). |
Financial Performance
The following table summarizes certain key performance indicators as of and for the quarters ended September 30, 2023, June 30, 2023 and September 30, 2022:
|
|
September 30, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
|
Book value per common share |
$ 18.25 |
|
$ 20.73 |
|
$ 19.94 |
|
|
GAAP leverage at period-end (1) |
7.1:1 |
|
6.1:1 |
|
5.8:1 |
|
|
GAAP net income (loss) per average common share (2) |
$ (1.21) |
|
$ 0.27 |
|
$ (0.70) |
|
|
Annualized GAAP return (loss) on average equity(3) |
(20.18%) |
|
5.42% |
|
(9.94%) |
|
|
Net interest margin (4) |
(0.20%) |
|
(0.15%) |
|
1.42% |
|
|
Average yield on interest earning assets (5) |
4.49% |
|
4.27% |
|
3.47% |
|
|
Average GAAP cost of interest bearing liabilities (6) |
5.27% |
|
5.00% |
|
2.38% |
|
|
Net interest spread |
(0.78%) |
|
(0.73%) |
|
1.09% |
|
|
Non-GAAP metrics * |
|
|
|
|
|
|
|
Earnings available for distribution per average common share (2) |
$ 0.66 |
|
$ 0.72 |
|
$ 1.06 |
|
|
Annualized EAD return on average equity |
12.96% |
|
13.22% |
|
17.57% |
|
|
Economic leverage at period-end (1) |
6.4:1 |
|
5.8:1 |
|
7.1:1 |
|
|
Net interest margin (excluding PAA) (4) |
1.48% |
|
1.66% |
|
1.98% |
|
|
Average yield on interest earning assets (excluding PAA) (5) |
4.46% |
|
4.22% |
|
3.24% |
|
|
Average economic cost of interest bearing liabilities (6) |
3.28% |
|
2.77% |
|
1.54% |
|
|
Net interest spread (excluding PAA) |
1.18% |
|
1.45% |
|
1.70% |
|
* |
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 and participations issued 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. Debt issued by securitization vehicles and participations issued are non-recourse to the Company and are excluded from economic leverage. |
|
(2) |
Net of dividends on preferred stock. |
|
(3) |
Annualized GAAP return (loss) on average equity annualizes realized and unrealized gains and (losses) which may not be indicative of full year performance, unannualized GAAP return (loss) on average equity is (5.04%), 1.35%, and (2.49%) for the quarters ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively. |
|
(4) |
Net interest margin represents interest income less interest expense divided by average Interest Earning Assets. Net interest margin does not include net interest component of interest rate swaps. 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. |
|
(5) |
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). |
|
(6) |
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. |
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. Such statements include those relating to the Company’s future performance, macro outlook, the interest rate and credit environments, tax reform and future opportunities. 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 (“MBS”) and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of the Company’s assets; changes in business conditions and the general economy; the Company’s ability to grow its residential credit business; the Company’s ability to grow its mortgage servicing rights business; credit risks related to the Company’s investments in credit risk transfer securities and residential mortgage-backed securities and related residential mortgage credit assets; risks related to investments in mortgage servicing rights; the Company’s ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting the Company’s business; the Company’s ability to maintain its qualification as a REIT for U.S. federal income tax purposes; the Company’s ability to maintain its exemption from registration under the Investment Company Act of 1940; operational risks or risk management failures by us or critical third parties, including cybersecurity incidents; and risks and uncertainties related to the COVID-19 pandemic, including as related to adverse economic conditions on real estate-related assets and financing conditions. 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.
We use our website (www.annaly.com) and LinkedIn account (www.linkedin.com/company/annaly-capital-management) as channels of distribution of company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about Annaly when you enroll your email address by visiting the “Investors” section of our website, then clicking on “Investor Resources” and selecting “Email Alerts” to complete the email notification form. Our website, any alerts and social media channels are not incorporated by reference into, and are not a part of, this document.
The Company prepares an investor presentation and supplemental financial information for the benefit of its shareholders. Please refer to the investor presentation for definitions of both GAAP and non-GAAP measures used in this news release. Both the Third Quarter 2023 Investor Presentation and the Third Quarter 2023 Supplemental Information 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 third quarter 2023 earnings conference call on October 26, 2023 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/10183128/fa9aa400b0. 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 9426626. 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) |
||||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||||||||
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
(unaudited) |
|||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Cash and cash equivalents |
$ |
1,241,122 |
|
|
$ |
1,236,872 |
|
|
$ |
1,794,173 |
|
|
$ |
1,576,714 |
|
|
$ |
1,466,171 |
|
|
|
Securities |
|
69,860,730 |
|
|
|
71,202,461 |
|
|
|
69,238,185 |
|
|
|
65,789,907 |
|
|
|
66,839,353 |
|
|
|
Loans, net |
|
1,793,140 |
|
|
|
1,154,320 |
|
|
|
1,642,822 |
|
|
|
1,809,832 |
|
|
|
1,551,707 |
|
|
|
Mortgage servicing rights |
|
2,234,813 |
|
|
|
2,018,896 |
|
|
|
1,790,980 |
|
|
|
1,748,209 |
|
|
|
1,705,254 |
|
|
|
Assets transferred or pledged to securitization vehicles |
|
11,450,346 |
|
|
|
11,318,419 |
|
|
|
10,277,588 |
|
|
|
9,121,912 |
|
|
|
9,202,014 |
|
|
|
Assets of disposal group held for sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,371 |
|
|
|
Derivative assets |
|
549,833 |
|
|
|
457,119 |
|
|
|
400,139 |
|
|
|
342,064 |
|
|
|
1,949,530 |
|
|
|
Receivable for unsettled trades |
|
1,047,566 |
|
|
|
787,442 |
|
|
|
679,096 |
|
|
|
575,091 |
|
|
|
2,153,895 |
|
|
|
Principal and interest receivable |
|
1,158,648 |
|
|
|
944,537 |
|
|
|
773,722 |
|
|
|
637,301 |
|
|
|
262,542 |
|
|
|
Intangible assets, net |
|
12,778 |
|
|
|
15,163 |
|
|
|
15,921 |
|
|
|
16,679 |
|
|
|
17,437 |
|
|
|
Other assets |
|
299,447 |
|
|
|
195,248 |
|
|
|
219,391 |
|
|
|
233,003 |
|
|
|
247,490 |
|
|
|
Total assets |
$ |
89,648,423 |
|
|
$ |
89,330,477 |
|
|
$ |
86,832,017 |
|
|
$ |
81,850,712 |
|
|
$ |
85,406,764 |
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Liabilities |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Repurchase agreements |
$ |
64,693,821 |
|
|
$ |
61,637,600 |
|
|
$ |
60,993,018 |
|
|
$ |
59,512,597 |
|
|
$ |
54,160,731 |
|
|
|
Other secured financing |
|
500,000 |
|
|
|
500,000 |
|
|
|
250,000 |
|
|
|
250,000 |
|
|
|
250,000 |
|
|
|
Debt issued by securitization vehicles |
|
9,983,847 |
|
|
|
9,789,282 |
|
|
|
8,805,911 |
|
|
|
7,744,160 |
|
|
|
7,844,518 |
|
|
|
Participations issued |
|
788,442 |
|
|
|
492,307 |
|
|
|
673,431 |
|
|
|
800,849 |
|
|
|
745,729 |
|
|
|
Liabilities of disposal group held for sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,151 |
|
|
|
Derivative liabilities |
|
97,616 |
|
|
|
156,182 |
|
|
|
473,515 |
|
|
|
204,172 |
|
|
|
764,535 |
|
|
|
Payable for unsettled trades |
|
2,214,319 |
|
|
|
4,331,315 |
|
|
|
3,259,034 |
|
|
|
1,157,846 |
|
|
|
9,333,646 |
|
|
|
Interest payable |
|
198,084 |
|
|
|
140,620 |
|
|
|
118,395 |
|
|
|
325,280 |
|
|
|
30,242 |
|
|
|
Dividends payable |
|
321,629 |
|
|
|
321,031 |
|
|
|
321,023 |
|
|
|
412,113 |
|
|
|
411,762 |
|
|
|
Other liabilities |
|
173,608 |
|
|
|
74,795 |
|
|
|
28,657 |
|
|
|
74,269 |
|
|
|
912,895 |
|
|
|
Total liabilities |
|
78,971,366 |
|
|
|
77,443,132 |
|
|
|
74,922,984 |
|
|
|
70,481,286 |
|
|
|
74,455,209 |
|
|
|
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) |
|
4,948 |
|
|
|
4,939 |
|
|
|
4,939 |
|
|
|
4,683 |
|
|
|
4,679 |
|
|
|
Additional paid-in capital |
|
23,572,996 |
|
|
|
23,550,346 |
|
|
|
23,543,091 |
|
|
|
22,981,320 |
|
|
|
22,967,665 |
|
|
|
Accumulated other comprehensive income (loss) |
|
(2,694,776 |
) |
|
|
(2,382,531 |
) |
|
|
(2,550,614 |
) |
|
|
(3,708,896 |
) |
|
|
(5,431,436 |
) |
|
|
Accumulated deficit |
|
(11,855,267 |
) |
|
|
(10,933,044 |
) |
|
|
(10,741,863 |
) |
|
|
(9,543,233 |
) |
|
|
(8,211,358 |
) |
|
|
Total stockholders’ equity |
|
10,564,470 |
|
|
|
11,776,279 |
|
|
|
11,792,122 |
|
|
|
11,270,443 |
|
|
|
10,866,119 |
|
|
|
Noncontrolling interests |
|
112,587 |
|
|
|
111,066 |
|
|
|
116,911 |
|
|
|
98,983 |
|
|
|
85,436 |
|
|
|
Total equity |
|
10,677,057 |
|
|
|
11,887,345 |
|
|
|
11,909,033 |
|
|
|
11,369,426 |
|
|
|
10,951,555 |
|
|
|
Total liabilities and equity |
$ |
89,648,423 |
|
|
$ |
89,330,477 |
|
|
$ |
86,832,017 |
|
|
$ |
81,850,712 |
|
|
$ |
85,406,764 |
|
|
|
(1) |
Derived from the audited consolidated financial statements at December 31, 2022. |
|
(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 1,468,250,000 shares authorized. Includes 494,814,038 shares issued and outstanding at September 30, 2023, 493,893,288 shares issued and outstanding at June 30, 2023, 493,880,938 shares issued and outstanding at March 31, 2023, 468,309,810 shares issued and outstanding at December 31, 2022, 467,911,144 shares issued and outstanding at September 30, 2022. |
|
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES |
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||||||
|
(dollars in thousands, except per share data) |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||
|
|
For the quarters ended |
|||||||||||||||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||||||||||
|
Net interest income |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Interest income |
$ |
1,001,485 |
|
|
$ |
921,494 |
|
|
$ |
818,250 |
|
|
$ |
798,934 |
|
|
$ |
678,488 |
|
|
|
Interest expense |
|
1,046,819 |
|
|
|
953,457 |
|
|
|
798,787 |
|
|
|
663,847 |
|
|
|
400,491 |
|
|
|
Net interest income |
|
(45,334 |
) |
|
|
(31,963 |
) |
|
|
19,463 |
|
|
|
135,087 |
|
|
|
277,997 |
|
|
|
Net servicing income |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Servicing and related income |
|
97,620 |
|
|
|
83,790 |
|
|
|
84,273 |
|
|
|
82,040 |
|
|
|
74,486 |
|
|
|
Servicing and related expense |
|
9,623 |
|
|
|
8,930 |
|
|
|
7,880 |
|
|
|
7,659 |
|
|
|
7,780 |
|
|
|
Net servicing income |
|
87,997 |
|
|
|
74,860 |
|
|
|
76,393 |
|
|
|
74,381 |
|
|
|
66,706 |
|
|
|
Other income (loss) |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net gains (losses) on investments and other |
|
(2,713,126 |
) |
|
|
(1,308,948 |
) |
|
|
1,712 |
|
|
|
(1,124,924 |
) |
|
|
(2,702,512 |
) |
|
|
Net gains (losses) on derivatives |
|
2,127,430 |
|
|
|
1,475,325 |
|
|
|
(900,752 |
) |
|
|
84,263 |
|
|
|
2,117,240 |
|
|
|
Loan loss (provision) reversal |
|
— |
|
|
|
— |
|
|
|
219 |
|
|
|
(7,258 |
) |
|
|
1,613 |
|
|
|
Business divestiture-related gains (losses) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13,013 |
) |
|
|
(2,936 |
) |
|
|
Other, net |
|
26,250 |
|
|
|
9,105 |
|
|
|
15,498 |
|
|
|
7,569 |
|
|
|
1,526 |
|
|
|
Total other income (loss) |
|
(559,446 |
) |
|
|
175,482 |
|
|
|
(883,323 |
) |
|
|
(1,053,363 |
) |
|
|
(585,069 |
) |
|
|
General and administrative expenses |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Compensation expense |
|
30,064 |
|
|
|
30,635 |
|
|
|
29,391 |
|
|
|
29,714 |
|
|
|
27,744 |
|
|
|
Other general and administrative expenses |
|
9,845 |
|
|
|
12,280 |
|
|
|
11,437 |
|
|
|
13,291 |
|
|
|
10,178 |
|
|
|
Total general and administrative expenses |
|
39,909 |
|
|
|
42,915 |
|
|
|
40,828 |
|
|
|
43,005 |
|
|
|
37,922 |
|
|
|
Income (loss) before income taxes |
|
(556,692 |
) |
|
|
175,464 |
|
|
|
(828,295 |
) |
|
|
(886,900 |
) |
|
|
(278,288 |
) |
|
|
Income taxes |
|
12,392 |
|
|
|
14,277 |
|
|
|
11,033 |
|
|
|
(86 |
) |
|
|
(4,311 |
) |
|
|
Net income (loss) |
|
(569,084 |
) |
|
|
161,187 |
|
|
|
(839,328 |
) |
|
|
(886,814 |
) |
|
|
(273,977 |
) |
|
|
Net income (loss) attributable to noncontrolling interests |
|
(6,879 |
) |
|
|
(5,846 |
) |
|
|
4,928 |
|
|
|
1,548 |
|
|
|
1,287 |
|
|
|
Net income (loss) attributable to Annaly |
|
(562,205 |
) |
|
|
167,033 |
|
|
|
(844,256 |
) |
|
|
(888,362 |
) |
|
|
(275,264 |
) |
|
|
Dividends on preferred stock |
|
36,854 |
|
|
|
35,766 |
|
|
|
31,875 |
|
|
|
29,974 |
|
|
|
26,883 |
|
|
|
Net income (loss) available (related) to common stockholders |
$ |
(599,059 |
) |
|
$ |
131,267 |
|
|
$ |
(876,131 |
) |
|
$ |
(918,336 |
) |
|
$ |
(302,147 |
) |
|
|
Net income (loss) per share available (related) to common stockholders |
|
|
|
|
|
|
|
|
||||||||||||
|
Basic |
$ |
(1.21 |
) |
|
$ |
0.27 |
|
|
$ |
(1.79 |
) |
|
$ |
(1.96 |
) |
|
$ |
(0.70 |
) |
|
|
Diluted |
$ |
(1.21 |
) |
|
$ |
0.27 |
|
|
$ |
(1.79 |
) |
|
$ |
(1.96 |
) |
|
$ |
(0.70 |
) |
|
|
Weighted average number of common shares outstanding |
|
|
|
|
|
|
|
|
||||||||||||
|
Basic |
|
494,330,361 |
|
|
|
494,165,256 |
|
|
|
489,688,364 |
|
|
|
468,250,672 |
|
|
|
429,858,876 |
|
|
|
Diluted |
|
494,330,361 |
|
|
|
494,358,982 |
|
|
|
489,688,364 |
|
|
|
468,250,672 |
|
|
|
429,858,876 |
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
||||||||||||
|
Net income (loss) |
$ |
(569,084 |
) |
|
$ |
161,187 |
|
|
$ |
(839,328 |
) |
|
$ |
(886,814 |
) |
|
$ |
(273,977 |
) |
|
|
Unrealized gains (losses) on available-for-sale securities |
|
(825,286 |
) |
|
|
(294,045 |
) |
|
|
675,374 |
|
|
|
445,896 |
|
|
|
(2,578,509 |
) |
|
|
Reclassification adjustment for net (gains) losses included in net income (loss) |
|
513,041 |
|
|
|
462,128 |
|
|
|
482,908 |
|
|
|
1,276,644 |
|
|
|
1,457,999 |
|
|
|
Other comprehensive income (loss) |
|
(312,245 |
) |
|
|
168,083 |
|
|
|
1,158,282 |
|
|
|
1,722,540 |
|
|
|
(1,120,510 |
) |
|
|
Comprehensive income (loss) |
|
(881,329 |
) |
|
|
329,270 |
|
|
|
318,954 |
|
|
|
835,726 |
|
|
|
(1,394,487 |
) |
|
|
Comprehensive income (loss) attributable to noncontrolling interests |
|
(6,879 |
) |
|
|
(5,846 |
) |
|
|
4,928 |
|
|
|
1,548 |
|
|
|
1,287 |
|
|
|
Comprehensive income (loss) attributable to Annaly |
|
(874,450 |
) |
|
|
335,116 |
|
|
|
314,026 |
|
|
|
834,178 |
|
|
|
(1,395,774 |
) |
|
|
Dividends on preferred stock |
|
36,854 |
|
|
|
35,766 |
|
|
|
31,875 |
|
|
|
29,974 |
|
|
|
26,883 |
|
|
|
Comprehensive income (loss) attributable to common stockholders |
$ |
(911,304 |
) |
|
$ |
299,350 |
|
|
$ |
282,151 |
|
|
$ |
804,204 |
|
|
$ |
(1,422,657 |
) |
|
|
|
||||||||||||||||||||
|
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES |
||||||||
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
||||||||
|
(dollars in thousands, except per share data) |
||||||||
|
|
For the nine months ended |
|||||||
|
|
September 30, |
|
September 30, |
|||||
|
|
(unaudited) |
|
(unaudited) |
|||||
|
Net interest income |
|
|
|
|||||
|
Interest income |
$ |
2,741,229 |
|
|
$ |
1,979,953 |
|
|
|
Interest expense |
|
2,799,063 |
|
|
|
645,888 |
|
|
|
Net interest income |
|
(57,834 |
) |
|
|
1,334,065 |
|
|
|
Net servicing income |
|
|
|
|||||
|
Servicing and related income |
|
265,683 |
|
|
|
164,886 |
|
|
|
Servicing and related expense |
|
26,433 |
|
|
|
17,486 |
|
|
|
Net servicing income |
|
239,250 |
|
|
|
147,400 |
|
|
|
Other income (loss) |
|
|
|
|||||
|
Net gains (losses) on investments and other |
|
(4,020,362 |
) |
|
|
(3,477,532 |
) |
|
|
Net gains (losses) on derivatives |
|
2,702,003 |
|
|
|
4,774,911 |
|
|
|
Loan loss (provision) reversal |
|
219 |
|
|
|
27,918 |
|
|
|
Business divestiture-related gains (losses) |
|
— |
|
|
|
(27,245 |
) |
|
|
Other, net |
|
50,853 |
|
|
|
(902 |
) |
|
|
Total other income (loss) |
|
(1,267,287 |
) |
|
|
1,297,150 |
|
|
|
General and administrative expenses |
|
|
|
|||||
|
Compensation expense |
|
90,090 |
|
|
|
82,989 |
|
|
|
Other general and administrative expenses |
|
33,562 |
|
|
|
36,735 |
|
|
|
Total general and administrative expenses |
|
123,652 |
|
|
|
119,724 |
|
|
|
Income (loss) before income taxes |
|
(1,209,523 |
) |
|
|
2,658,891 |
|
|
|
Income taxes |
|
37,702 |
|
|
|
45,657 |
|
|
|
Net income (loss) |
|
(1,247,225 |
) |
|
|
2,613,234 |
|
|
|
Net income (loss) attributable to noncontrolling interests |
|
(7,797 |
) |
|
|
(453 |
) |
|
|
Net income (loss) attributable to Annaly |
|
(1,239,428 |
) |
|
|
2,613,687 |
|
|
|
Dividends on preferred stock |
|
104,495 |
|
|
|
80,649 |
|
|
|
Net income (loss) available (related) to common stockholders |
$ |
(1,343,923 |
) |
|
$ |
2,533,038 |
|
|
|
Net income (loss) per share available (related) to common stockholders |
|
|
||||||
|
Basic |
$ |
(2.73 |
) |
|
$ |
6.46 |
|
|
|
Diluted |
$ |
(2.73 |
) |
|
$ |
6.45 |
|
|
|
Weighted average number of common shares outstanding |
|
|
||||||
|
Basic |
|
492,744,997 |
|
|
|
392,172,655 |
|
|
|
Diluted |
|
492,744,997 |
|
|
|
392,445,034 |
|
|
|
Other comprehensive income (loss) |
|
|
||||||
|
Net income (loss) |
$ |
(1,247,225 |
) |
|
$ |
2,613,234 |
|
|
|
Unrealized gains (losses) on available-for-sale securities |
|
(443,957 |
) |
|
|
(8,650,438 |
) |
|
|
Reclassification adjustment for net (gains) losses included in net income (loss) |
|
1,458,077 |
|
|
|
2,260,592 |
|
|
|
Other comprehensive income (loss) |
|
1,014,120 |
|
|
|
(6,389,846 |
) |
|
|
Comprehensive income (loss) |
|
(233,105 |
) |
|
|
(3,776,612 |
) |
|
|
Comprehensive income (loss) attributable to noncontrolling interests |
|
(7,797 |
) |
|
|
(453 |
) |
|
|
Comprehensive income (loss) attributable to Annaly |
|
(225,308 |
) |
|
|
(3,776,159 |
) |
|
|
Dividends on preferred stock |
|
104,495 |
|
|
|
80,649 |
|
|
|
Comprehensive income (loss) attributable to common stockholders |
$ |
(329,803 |
) |
|
$ |
(3,856,808 |
) |
|
|
|
|
|
|
|||||
Contacts
Annaly Capital Management, Inc.
Investor Relations
1-888-8Annaly
www.annaly.com
