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, 2022.
Financial Highlights
- GAAP net income (loss) of ($0.70) per average common share for the quarter
- Earnings available for distribution (“EAD”) of $1.06 per average common share for the quarter; dividend coverage of 120%
- Economic return (loss) of (11.7%) for the third quarter
- Annualized GAAP return (loss) on average equity of (9.9%) and annualized EAD return on average equity of 17.6%
- Book value per common share of $19.94
- GAAP leverage of 5.8x, up from 5.4x in the prior quarter; economic leverage of 7.1x, up from 6.6x in the prior quarter
- Declared quarterly common stock cash dividend of $0.88 per share
Business Highlights
Investment and Strategy
- Total assets of $86.2 billion(1), up from $82.3 billion in the prior quarter
-
Annaly’s Agency Portfolio increased by 4.5% to $78.2 billion(1) in assets at the end of the third quarter
- Portfolio activity focused on shifting upwards in coupon, primarily adding 4.5% and 5.0% coupons, while also increasing exposure to specified pools, which increased seven percentage points to 81% of the Agency portfolio
- Hedging strategy was focused on managing duration with yields reaching multi-year highs and volatility persisting; activity primarily consisted of adding long-end swap hedges and Treasury futures in the front end of the curve
-
Annaly’s Mortgage Servicing Rights (“MSR”) platform grew assets by 9% to $1.9 billion(2) in the third quarter with MSR representing 15% of dedicated equity capital
- Annaly is the second largest purchaser of MSR year-to-date(3)
-
Annaly’s Residential Credit Group portfolio increased 6% during the quarter to $5.1 billion(1), driven by retention of OBX securities and opportunistic third party purchases
- Purchased approximately $900 million of whole loans during the quarter and Annaly’s correspondent channel achieved over $2 billion in aggregated loans since inception in April 2021
- Annaly was added to the S&P MidCap 400 Index on September 19, 2022, representing the only mortgage REIT in the index
Financing and Capital
- $6.1 billion of unencumbered assets(4), including cash and unencumbered Agency MBS of $4.3 billion
- Average GAAP cost of interest bearing liabilities increased 126 basis points to 2.38% and average economic cost of interest bearing liabilities increased 43 basis points to 1.54%
- Annaly Residential Credit Group remains the largest non-bank issuer of Prime Jumbo and Expanded Credit MBS(5) with three residential whole loan securitizations totaling $1.1 billion priced in the third quarter
- Raised nearly $1.7 billion of accretive common equity during the third quarter(6)
“During the third quarter of 2022, financial markets continued to experience elevated volatility previously only seen during periods of crisis. Our book value came under pressure as a result of substantial spread widening in Agency MBS and the significant moves in interest rates,” said David Finkelstein, Annaly’s Chief Executive Officer and President. “Our strong capital base, disciplined portfolio and risk management, and deep financing sources have enabled us to weather this persistent volatility and prepare us for further sustained macroeconomic uncertainty. While we expect to maintain our defensive positioning due to the difficult operating environment, we continue to view asset valuations as attractive and are poised to take advantage of opportunities when technical factors improve.
“With Annaly marking 25 years as a public company subsequent to quarter end, I am reminded of our resilience and proven ability to successfully manage and adapt through numerous market cycles and I remain confident that we will emerge from this current period stronger than ever.”
| (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. Total assets include commercial real estate related assets, including CMBX derivatives (market value) of $0.4 billion, which are excluded from capital allocation calculations. Agency assets exclude assets transferred or pledged to securitization vehicles of $0.4 billion and include TBA purchase contracts (market value) of $15.2 billion and $27 million of retained securities that are eliminated in consolidation. Residential Credit assets exclude assets transferred or pledged to securitization vehicles of $8.8 billion, include $1.0 billion of retained securities that are eliminated in consolidation and are shown net of participations issued totaling $0.7 billion. MSR assets include limited partnership interests in a MSR fund, which is reported in Other Assets, and unsettled commitments of $151 million. MSR commitments represent the market value of deals where Annaly has executed a letter of intent. There can be no assurance whether these deals will close or when they will close. |
|
| (2) |
Includes limited partnership interests in a MSR fund, which is reported in Other Assets, and unsettled commitments of $151 million. MSR commitments represent the market value of deals where Annaly has executed a letter of intent. There can be no assurance whether these deals will close or when they will close. |
|
| (3) |
eMBS servicing transfer data through September 30, 2022. |
|
| (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) |
Issuer ranking data from Inside Nonconforming Markets for 2021 to 2022 year-to-date. |
|
| (6) |
These amounts include $914 million raised through the Company’s at-the-market sales program for its common stock, net of sales agent commissions and excluding other offering expenses, and $765 million raised through a common equity offering, excluding any applicable underwriting discounts and other offering expenses and including the underwriters’ full exercise of their overallotment option to purchase additional shares of stock. |
|
Financial Performance
The following table summarizes certain key performance indicators as of and for the quarters ended September 30, 2022, June 30, 2022 and September 30, 2021:
|
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
||||||
|
Book value per common share |
$ |
19.94 |
|
|
$ |
23.59 |
|
|
$ |
33.55 |
|
|
GAAP leverage at period-end (1) |
|
5.8:1 |
|
|
|
5.4:1 |
|
|
|
4.4:1 |
|
|
GAAP net income (loss) per average common share (2) |
$ |
(0.70 |
) |
|
$ |
2.21 |
|
|
$ |
1.36 |
|
|
Annualized GAAP return (loss) on average equity |
|
(9.94 |
%) |
|
|
30.60 |
% |
|
|
15.25 |
% |
|
Net interest margin (3) |
|
1.42 |
% |
|
|
2.64 |
% |
|
|
2.01 |
% |
|
Average yield on interest earning assets (4) |
|
3.47 |
% |
|
|
3.58 |
% |
|
|
2.29 |
% |
|
Average GAAP cost of interest bearing liabilities (5) |
|
2.38 |
% |
|
|
1.12 |
% |
|
|
0.32 |
% |
|
Net interest spread |
|
1.09 |
% |
|
|
2.46 |
% |
|
|
1.97 |
% |
|
Non-GAAP metrics * |
|
|
|
|
|
||||||
|
Earnings available for distribution per average common share (2) |
$ |
1.06 |
|
|
$ |
1.22 |
|
|
$ |
1.14 |
|
|
Annualized EAD return on average equity |
|
17.57 |
% |
|
|
17.49 |
% |
|
|
12.81 |
% |
|
Economic leverage at period-end (1) |
|
7.1:1 |
|
|
|
6.6:1 |
|
|
|
5.8:1 |
|
|
Net interest margin (excluding PAA) (3) |
|
1.98 |
% |
|
|
2.20 |
% |
|
|
2.04 |
% |
|
Average yield on interest earning assets (excluding PAA) (4) |
|
3.24 |
% |
|
|
2.87 |
% |
|
|
2.63 |
% |
|
Average economic cost of interest bearing liabilities (5) |
|
1.54 |
% |
|
|
1.11 |
% |
|
|
0.66 |
% |
|
Net interest spread (excluding PAA) |
|
1.70 |
% |
|
|
1.76 |
% |
|
|
1.97 |
% |
|
* Represents a non-GAAP financial measure. Please refer to the “Non-GAAP Financial Measures” section for additional information. (1) GAAP leverage is computed as the sum of repurchase agreements, other secured financing, debt issued by securitization vehicles, participations issued and mortgages payable divided by total equity. Economic leverage is computed as the sum of recourse debt, cost basis of to-be-announced (“TBA”) and CMBX derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements and other secured financing (excluding certain non-recourse credit facilities). Certain credit facilities (included within other secured financing), debt issued by securitization vehicles, participations issued, and mortgages payable are non-recourse to the Company and are excluded from economic leverage. (2) Net of dividends on preferred stock. (3) Net interest margin represents interest income less interest expense divided by average Interest Earning Assets. Net interest margin (excluding PAA) represents the sum of interest income (excluding PAA) plus TBA dollar roll income and CMBX coupon income less interest expense and the net interest component of interest rate swaps divided by the sum of average Interest Earning Assets plus average outstanding TBA contract and CMBX balances. PAA represents the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to the Company’s Agency mortgage-backed securities. (4) Average yield on interest earning assets represents annualized interest income divided by average interest earning assets. Average interest earning assets reflects the average amortized cost of our investments during the period. Average yield on interest earning assets (excluding PAA) is calculated using annualized interest income (excluding PAA). (5) Average GAAP cost of interest bearing liabilities represents annualized interest expense divided by average interest bearing liabilities. Average interest bearing liabilities reflects the average balances during the period. Average economic cost of interest bearing liabilities represents annualized economic interest expense divided by average interest bearing liabilities. Economic interest expense is comprised of GAAP interest expense and the net interest component of interest rate swaps. |
|||||||||||
Updates to Financial Disclosures
On September 8, 2022, the Company announced that its Board of Directors had unanimously approved a reverse stock split of the Company’s common stock at a ratio of 1-for-4 (the “Reverse Stock Split”). The Reverse Stock Split was effective following the close of business on September 23, 2022 (the “Effective Time”). Accordingly, at the Effective Time, every four issued and outstanding shares of the Company’s common stock were converted into one share of the Company’s common stock. No fractional shares were issued in connection with the Reverse Stock Split. Instead, each stockholder that would have held fractional shares as a result of the Reverse Stock Split received cash in lieu of such fractional shares. The par value per share of the Company’s common stock remained unchanged at $0.01 per share after the Reverse Stock Split. Accordingly, for all historical periods presented, an amount equal to the par value of the reduced number of shares resulting from the Reverse Stock Split was reclassified from Common stock to Additional paid in capital in the Company’s Consolidated Statements of Financial Condition. All other references made to share or per share amounts in the accompanying consolidated financial statements and disclosures have also been retroactively adjusted, where applicable, to reflect the effects of the Reverse Stock Split.
Beginning with the quarter ended March 31, 2022, in light of the continued growth of its mortgage servicing rights portfolio, the Company enhanced its financial disclosures by separately reporting servicing income and servicing expense in its Consolidated Statements of Comprehensive Income (Loss). Servicing income and servicing expense were previously included within Other income (loss). As a result of this change, prior periods have been adjusted to conform to the current presentation.
In addition, beginning with the quarter ended March 31, 2022, the Company consolidated certain line items in its Consolidated Statements of Comprehensive Income (Loss) in an effort to streamline and simplify its financial presentation. Amounts previously reported under Net interest component of interest rate swaps, Realized gains (losses) on termination or maturity of interest rate swaps, Unrealized gains (losses) on interest rate swaps and Net gains (losses) on other derivatives are combined into a single line item titled Net gains (losses) on derivatives. Similarly, amounts previously reported under Net gains (losses) on disposal of investments and other and Net unrealized gains (losses) on instruments measured at fair value through earnings are combined into a single line item titled Net gains (losses) on investments and other. As a result of these changes, prior periods have been adjusted to conform to the current presentation.
Other Information
This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, risks and uncertainties related to the COVID-19 pandemic, including as related to adverse economic conditions on real estate-related assets and financing conditions; changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of our assets; changes in business conditions and the general economy; operational risks or risk management failures by us or critical third parties, including cybersecurity incidents; our ability to grow our residential credit business; credit risks related to our investments in credit risk transfer securities, residential mortgage-backed securities, and related residential mortgage credit assets; risks related to investments in mortgage servicing rights; our ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting our business; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; and our ability to maintain our exemption from registration under the Investment Company Act. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.
Annaly is a leading diversified capital manager with investment strategies across mortgage finance. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Additional information on the company can be found at www.annaly.com.
Annaly routinely posts important information for investors on the Company’s website, www.annaly.com. Annaly intends to use this webpage as a means of disclosing material, non-public information, for complying with the Company’s disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. Annaly encourages investors, analysts, the media and others interested in Annaly to monitor the Company’s website, in addition to following Annaly’s press releases, SEC filings, public conference calls, presentations, webcasts and other information it posts from time to time on its website. To sign-up for email-notifications, please visit the “Investors” section of our website, www.annaly.com, then click on “Investor Resources” and select “Email Alerts” to complete the email notification form. The information contained on, or that may be accessed through, the Company’s webpage is not incorporated by reference into, and is not a part of, this document.
The Company prepares a supplemental investor presentation and a financial summary for the benefit of its shareholders. Both the Third Quarter 2022 Investor Presentation and the Third Quarter 2022 Financial Summary can be found at the Company’s website (www.annaly.com) in the Investors section under Investor Presentations.
Conference Call
The Company will hold the third quarter 2022 earnings conference call on October 27, 2022 at 9:00 a.m. Eastern Time. Participants are encouraged to pre-register for the conference call to receive a unique PIN to gain immediate access to the call and bypass the live operator. Pre-registration may be completed by accessing the pre-registration link found on the homepage or “Investors” section of the Company’s website at www.annaly.com, or by using the following link: https://dpregister.com/sreg/10171506/f491665b6c. 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 6415389. 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 |
$ |
1,466,171 |
|
|
$ |
853,932 |
|
|
$ |
955,840 |
|
|
$ |
1,342,090 |
|
|
$ |
1,046,300 |
|
|
Securities |
|
66,839,353 |
|
|
|
59,042,734 |
|
|
|
60,727,637 |
|
|
|
63,655,674 |
|
|
|
65,622,352 |
|
|
Loans, net |
|
1,551,707 |
|
|
|
1,487,133 |
|
|
|
3,617,818 |
|
|
|
4,242,043 |
|
|
|
3,580,521 |
|
|
Mortgage servicing rights |
|
1,705,254 |
|
|
|
1,421,420 |
|
|
|
1,108,937 |
|
|
|
544,562 |
|
|
|
572,259 |
|
|
Interests in MSR |
|
— |
|
|
|
83,622 |
|
|
|
85,653 |
|
|
|
69,316 |
|
|
|
57,530 |
|
|
Assets transferred or pledged to securitization vehicles |
|
9,202,014 |
|
|
|
8,877,247 |
|
|
|
7,809,307 |
|
|
|
6,086,308 |
|
|
|
4,738,481 |
|
|
Assets of disposal group held for sale |
|
11,371 |
|
|
|
97,414 |
|
|
|
— |
|
|
|
194,138 |
|
|
|
238,042 |
|
|
Derivative assets |
|
1,949,530 |
|
|
|
748,432 |
|
|
|
964,075 |
|
|
|
170,370 |
|
|
|
331,395 |
|
|
Receivable for unsettled trades |
|
2,153,895 |
|
|
|
434,227 |
|
|
|
407,225 |
|
|
|
2,656 |
|
|
|
42,482 |
|
|
Principal and interest receivable |
|
262,542 |
|
|
|
300,028 |
|
|
|
246,739 |
|
|
|
234,983 |
|
|
|
234,810 |
|
|
Goodwill and intangible assets, net |
|
17,437 |
|
|
|
18,195 |
|
|
|
23,110 |
|
|
|
24,241 |
|
|
|
25,371 |
|
|
Other assets |
|
247,490 |
|
|
|
272,865 |
|
|
|
238,793 |
|
|
|
197,683 |
|
|
|
172,890 |
|
|
Total assets |
$ |
85,406,764 |
|
|
$ |
73,637,249 |
|
|
$ |
76,185,134 |
|
|
$ |
76,764,064 |
|
|
$ |
76,662,433 |
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
||||||||||
|
Liabilities |
|
|
|
|
|
|
|
|
|
||||||||||
|
Repurchase agreements |
$ |
54,160,731 |
|
|
$ |
51,364,097 |
|
|
$ |
52,626,503 |
|
|
$ |
54,769,643 |
|
|
$ |
55,475,420 |
|
|
Other secured financing |
|
250,000 |
|
|
|
— |
|
|
|
914,255 |
|
|
|
903,255 |
|
|
|
729,555 |
|
|
Debt issued by securitization vehicles |
|
7,844,518 |
|
|
|
7,502,483 |
|
|
|
6,711,953 |
|
|
|
5,155,633 |
|
|
|
3,935,410 |
|
|
Participations issued |
|
745,729 |
|
|
|
696,944 |
|
|
|
775,432 |
|
|
|
1,049,066 |
|
|
|
641,006 |
|
|
Liabilities of disposal group held for sale |
|
1,151 |
|
|
|
3,608 |
|
|
|
— |
|
|
|
154,956 |
|
|
|
159,508 |
|
|
Derivative liabilities |
|
764,535 |
|
|
|
379,708 |
|
|
|
826,972 |
|
|
|
881,537 |
|
|
|
912,134 |
|
|
Payable for unsettled trades |
|
9,333,646 |
|
|
|
1,995,960 |
|
|
|
1,992,568 |
|
|
|
147,908 |
|
|
|
571,540 |
|
|
Interest payable |
|
30,242 |
|
|
|
91,962 |
|
|
|
80,870 |
|
|
|
91,176 |
|
|
|
109,586 |
|
|
Dividends payable |
|
411,762 |
|
|
|
354,027 |
|
|
|
321,423 |
|
|
|
321,142 |
|
|
|
318,986 |
|
|
Other liabilities |
|
912,895 |
|
|
|
158,560 |
|
|
|
456,388 |
|
|
|
94,423 |
|
|
|
91,421 |
|
|
Total liabilities |
|
74,455,209 |
|
|
|
62,547,349 |
|
|
|
64,706,364 |
|
|
|
63,568,739 |
|
|
|
62,944,566 |
|
|
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) |
|
4,679 |
|
|
|
4,023 |
|
|
|
3,653 |
|
|
|
3,649 |
|
|
|
3,625 |
|
|
Additional paid-in capital |
|
22,967,665 |
|
|
|
21,293,146 |
|
|
|
20,332,909 |
|
|
|
20,324,780 |
|
|
|
20,239,240 |
|
|
Accumulated other comprehensive income (loss) |
|
(5,431,436 |
) |
|
|
(4,310,926 |
) |
|
|
(2,465,482 |
) |
|
|
958,410 |
|
|
|
1,638,638 |
|
|
Accumulated deficit |
|
(8,211,358 |
) |
|
|
(7,496,061 |
) |
|
|
(7,980,407 |
) |
|
|
(9,653,582 |
) |
|
|
(9,720,270 |
) |
|
Total stockholders’ equity |
|
10,866,119 |
|
|
|
11,026,751 |
|
|
|
11,427,242 |
|
|
|
13,169,826 |
|
|
|
13,697,802 |
|
|
Noncontrolling interests |
|
85,436 |
|
|
|
63,149 |
|
|
|
51,528 |
|
|
|
25,499 |
|
|
|
20,065 |
|
|
Total equity |
|
10,951,555 |
|
|
|
11,089,900 |
|
|
|
11,478,770 |
|
|
|
13,195,325 |
|
|
|
13,717,867 |
|
|
Total liabilities and equity |
$ |
85,406,764 |
|
|
$ |
73,637,249 |
|
|
$ |
76,185,134 |
|
|
$ |
76,764,064 |
|
|
$ |
76,662,433 |
|
|
|
|||||||||||||||||||
|
(1) Derived from the audited consolidated financial statements at December 31, 2021. (2) 6.95% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock – Includes 28,800,000 shares authorized, issued and outstanding. 6.50% Series G Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock – Includes 17,000,000 shares authorized, issued and outstanding. 6.75% Series I Preferred Stock – Includes 17,700,000 shares authorized, issued and outstanding. (3) Includes 2,936,500,000 shares authorized. Includes 467,911,144 shares issued and outstanding at September 30, 2022; 402,303,874 shares issued and outstanding at June 30, 2022; 365,253,063 shares issued and outstanding at March 31, 2022; 364,934,065 shares issued and outstanding at December 31, 2021; 362,483,754 shares issued and outstanding at September 30, 2021. |
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|
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES |
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|
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 |
$ |
678,488 |
|
|
$ |
645,615 |
|
|
$ |
655,850 |
|
|
$ |
422,780 |
|
|
$ |
412,972 |
|
|
Interest expense |
|
400,491 |
|
|
|
170,475 |
|
|
|
74,922 |
|
|
|
61,785 |
|
|
|
50,438 |
|
|
Net interest income |
|
277,997 |
|
|
|
475,140 |
|
|
|
580,928 |
|
|
|
360,995 |
|
|
|
362,534 |
|
|
Net servicing income |
|
|
|
|
|
|
|
|
|
||||||||||
|
Servicing and related income |
|
74,486 |
|
|
|
55,685 |
|
|
|
34,715 |
|
|
|
31,322 |
|
|
|
17,948 |
|
|
Servicing and related expense |
|
7,780 |
|
|
|
5,949 |
|
|
|
3,757 |
|
|
|
4,290 |
|
|
|
3,012 |
|
|
Net servicing income |
|
66,706 |
|
|
|
49,736 |
|
|
|
30,958 |
|
|
|
27,032 |
|
|
|
14,936 |
|
|
Other income (loss) |
|
|
|
|
|
|
|
|
|
||||||||||
|
Net gains (losses) on investments and other |
|
(2,702,512 |
) |
|
|
(615,216 |
) |
|
|
(159,804 |
) |
|
|
(40,473 |
) |
|
|
102,819 |
|
|
Net gains (losses) on derivatives |
|
2,117,240 |
|
|
|
1,015,643 |
|
|
|
1,642,028 |
|
|
|
135,359 |
|
|
|
84,950 |
|
|
Loan loss (provision) reversal |
|
1,613 |
|
|
|
26,913 |
|
|
|
(608 |
) |
|
|
(194 |
) |
|
|
6,134 |
|
|
Business divestiture-related gains (losses) |
|
(2,936 |
) |
|
|
(23,955 |
) |
|
|
(354 |
) |
|
|
(16,514 |
) |
|
|
(14,009 |
) |
|
Other, net |
|
1,526 |
|
|
|
(5,486 |
) |
|
|
3,058 |
|
|
|
(415 |
) |
|
|
1,285 |
|
|
Total other income (loss) |
|
(585,069 |
) |
|
|
397,899 |
|
|
|
1,484,320 |
|
|
|
77,763 |
|
|
|
181,179 |
|
|
General and administrative expenses |
|
|
|
|
|
|
|
|
|
||||||||||
|
Compensation expense |
|
27,744 |
|
|
|
22,243 |
|
|
|
33,002 |
|
|
|
27,061 |
|
|
|
27,859 |
|
|
Other general and administrative expenses |
|
10,178 |
|
|
|
13,795 |
|
|
|
12,762 |
|
|
|
13,640 |
|
|
|
16,023 |
|
|
Total general and administrative expenses |
|
37,922 |
|
|
|
36,038 |
|
|
|
45,764 |
|
|
|
40,701 |
|
|
|
43,882 |
|
|
Income (loss) before income taxes |
|
(278,288 |
) |
|
|
886,737 |
|
|
|
2,050,442 |
|
|
|
425,089 |
|
|
|
514,767 |
|
|
Income taxes |
|
(4,311 |
) |
|
|
23,420 |
|
|
|
26,548 |
|
|
|
6,629 |
|
|
|
(6,767 |
) |
|
Net income (loss) |
|
(273,977 |
) |
|
|
863,317 |
|
|
|
2,023,894 |
|
|
|
418,460 |
|
|
|
521,534 |
|
|
Net income (loss) attributable to noncontrolling interests |
|
1,287 |
|
|
|
(3,379 |
) |
|
|
1,639 |
|
|
|
2,979 |
|
|
|
2,290 |
|
|
Net income (loss) attributable to Annaly |
|
(275,264 |
) |
|
|
866,696 |
|
|
|
2,022,255 |
|
|
|
415,481 |
|
|
|
519,244 |
|
|
Dividends on preferred stock |
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
Net income (loss) available (related) to common stockholders |
$ |
(302,147 |
) |
|
$ |
839,813 |
|
|
$ |
1,995,372 |
|
|
$ |
388,598 |
|
|
$ |
492,361 |
|
|
Net income (loss) per share available (related) to common stockholders |
|
|
|
|
|
|
|
|
|||||||||||
|
Basic |
$ |
(0.70 |
) |
|
$ |
2.21 |
|
|
$ |
5.46 |
|
|
$ |
1.07 |
|
|
$ |
1.36 |
|
|
Diluted |
$ |
(0.70 |
) |
|
$ |
2.20 |
|
|
$ |
5.46 |
|
|
$ |
1.07 |
|
|
$ |
1.36 |
|
|
Weighted average number of common shares outstanding |
|
|
|
|
|
|
|
|
|||||||||||
|
Basic |
|
429,858,876 |
|
|
|
380,609,192 |
|
|
|
365,340,909 |
|
|
|
363,534,539 |
|
|
|
361,328,979 |
|
|
Diluted |
|
429,858,876 |
|
|
|
380,898,750 |
|
|
|
365,612,991 |
|
|
|
363,852,876 |
|
|
|
361,589,467 |
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|||||||||||
|
Net income (loss) |
$ |
(273,977 |
) |
|
$ |
863,317 |
|
|
$ |
2,023,894 |
|
|
$ |
418,460 |
|
|
$ |
521,534 |
|
|
Unrealized gains (losses) on available-for-sale securities |
|
(2,578,509 |
) |
|
|
(2,503,250 |
) |
|
|
(3,568,679 |
) |
|
|
(685,699 |
) |
|
|
(113,451 |
) |
|
Reclassification adjustment for net (gains) losses included in net income (loss) |
|
1,457,999 |
|
|
|
657,806 |
|
|
|
144,787 |
|
|
|
5,471 |
|
|
|
(28,186 |
) |
|
Other comprehensive income (loss) |
|
(1,120,510 |
) |
|
|
(1,845,444 |
) |
|
|
(3,423,892 |
) |
|
|
(680,228 |
) |
|
|
(141,637 |
) |
|
Comprehensive income (loss) |
|
(1,394,487 |
) |
|
|
(982,127 |
) |
|
|
(1,399,998 |
) |
|
|
(261,768 |
) |
|
|
379,897 |
|
|
Comprehensive income (loss) attributable to noncontrolling interests |
|
1,287 |
|
|
|
(3,379 |
) |
|
|
1,639 |
|
|
|
2,979 |
|
|
|
2,290 |
|
|
Comprehensive income (loss) attributable to Annaly |
|
(1,395,774 |
) |
|
|
(978,748 |
) |
|
|
(1,401,637 |
) |
|
|
(264,747 |
) |
|
|
377,607 |
|
|
Dividends on preferred stock |
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
|
26,883 |
|
|
Comprehensive income (loss) attributable to common stockholders |
$ |
(1,422,657 |
) |
|
$ |
(1,005,631 |
) |
|
$ |
(1,428,520 |
) |
|
$ |
(291,630 |
) |
|
$ |
350,724 |
|
|
|
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Contacts
Annaly Capital Management, Inc.
Investor Relations
1-888-8Annaly
www.annaly.com
