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Annaly Capital Management, Inc. Reports 3rd Quarter 2023 Results

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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,
2023

 

June 30,
2023

 

March 31,
2023

 

December 31,

2022 (1)

 

September 30,
2022

 

 

(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,

2023

 

June 30,
2023

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

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,

2023

 

September 30,

2022

 

 

(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

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