Anworth Mortgage Asset Corp. (ANH, Financial) filed Quarterly Report for the period ended 2010-03-31.
Anworth Mortgage Asset Corp. has a market cap of $785.3 million; its shares were traded at around $6.69 with a P/E ratio of 5.9 and P/S ratio of 3. The dividend yield of Anworth Mortgage Asset Corp. stocks is 16.1%.ANH is in the portfolios of David Dreman of Dreman Value Management, Arnold Schneider of Schneider Capital Management, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
For the three months ended March 31, 2010, our net income was $33.2 million. Our net income available to common stockholders was $31.8 million, or $0.27 per diluted share, based on a weighted average of 120.3 million fully diluted shares outstanding. This includes net income of $33.2 million minus the payment of preferred dividends of $1.4 million. For the three months ended March 31, 2009, our net income was $30.8 million. Our net income available to common stockholders was $29.3 million, or $0.30 per diluted share, based on a weighted average of 99.3 million fully diluted shares outstanding. This included net income of $30.8 million minus the payment of preferred dividends of $1.5 million.
Net interest income for the three months ended March 31, 2010 totaled $37.2 million, or 50.6% of gross income, compared to $34.5 million, or 48% of gross income, for the three months ended March 31, 2009. Net interest income is comprised of the interest income earned on mortgage investments (net of premium amortization expense) less interest expense from borrowings. Interest income (net of premium amortization expense) for the three months ended March 31, 2010 was $61.2 million, compared to $67.0 million for the three months ended March 31, 2009, a decrease of 8.7% due primarily to an increase in premium amortization expense, a decrease in the weighted average coupons on Agency MBS (from 5.47% at March 31, 2009 to 4.88% at March 31, 2010), partially offset by an increase in the weighted average portfolio outstanding of approximately $6 billion at March 31, 2010 from approximately $5.3 billion at March 31, 2009. Interest expense for the three months ended March 31, 2010 was $24.0 million, compared to $32.5 million for the three months ended March 31, 2009, a decrease of 26.1%, which resulted from a decline in short-term interest rates, partially offset by an increase in average borrowings.
During the three months ended March 31, 2010, premium amortization expense increased $7.8 million, or 175%, from $4.5 million during the three months ended March 31, 2009 to $12.3 million, due primarily to an increase in prepayments.
Total expenses were $4.0 million for the three months ended March 31, 2010, compared to $3.9 million for the three months ended March 31, 2009. The increase of $66 thousand in total expenses was due primarily to an increase in compensation costs of $136 thousand (due to an increase in the accrual for bonus and incentive compensation) partially offset by a decrease in Other expenses (as detailed in Note 13 to the accompanying unaudited consolidated financial statements) of $70 thousand.
At March 31, 2010, we held agency mortgage assets whose amortized cost was approximately $6.28 billion, consisting primarily of $5.56 billion of adjustable-rate Agency MBS, $715 million of fixed-rate Agency MBS and $5 million of floating-rate CMOs. This amount represents an approximate 0.5% decrease from the $6.31 billion held at December 31, 2009. Of the adjustable-rate Agency MBS owned by us, 30% were adjustable-rate pass-through certificates whose coupons reset within one year. The remaining 70% consisted of hybrid adjustable-rate Agency MBS whose coupons will reset between one year and five years. Hybrid adjustable-rate Agency MBS have an initial interest rate that is fixed for a certain period, usually three to five years, and thereafter adjust annually for the remainder of the term of the loan.
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Anworth Mortgage Asset Corp. has a market cap of $785.3 million; its shares were traded at around $6.69 with a P/E ratio of 5.9 and P/S ratio of 3. The dividend yield of Anworth Mortgage Asset Corp. stocks is 16.1%.ANH is in the portfolios of David Dreman of Dreman Value Management, Arnold Schneider of Schneider Capital Management, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
At March 31, 2010, we had total assets of $6.6 billion. Our Agency MBS portfolio, consisting of $6.5 billion, was distributed as follows: 27% adjustable-rate Agency MBS, 61% hybrid adjustable-rate Agency MBS, 12% fixed-rate Agency MBS and less than 1% agency floating-rate collateralized mortgage obligations, or CMOs. Our Non-Agency MBS portfolio consisted of approximately $5.3 million of floating-rate CMOs. Stockholders equity available to common stockholders at March 31, 2010 was approximately $880 million, or $7.46 per share. The $880 million equals total stockholders equity of $929 million less the Series A Preferred Stock liquidating value of approximately $46.9 million and less the difference between the Series B Preferred Stock liquidating value of $27.5 million and the proceeds from its sale of $25.6 million. For the three months ended March 31, 2010, we reported net income of $33.2 million. Net income to common stockholders was $31.8 million, or net income of $0.27 per diluted share, based on a weighted average of 120.3 million fully diluted shares outstanding, which consisted of net income of $33.2 million minus payment of preferred dividends of $1.4 million.For the three months ended March 31, 2010, our net income was $33.2 million. Our net income available to common stockholders was $31.8 million, or $0.27 per diluted share, based on a weighted average of 120.3 million fully diluted shares outstanding. This includes net income of $33.2 million minus the payment of preferred dividends of $1.4 million. For the three months ended March 31, 2009, our net income was $30.8 million. Our net income available to common stockholders was $29.3 million, or $0.30 per diluted share, based on a weighted average of 99.3 million fully diluted shares outstanding. This included net income of $30.8 million minus the payment of preferred dividends of $1.5 million.
Net interest income for the three months ended March 31, 2010 totaled $37.2 million, or 50.6% of gross income, compared to $34.5 million, or 48% of gross income, for the three months ended March 31, 2009. Net interest income is comprised of the interest income earned on mortgage investments (net of premium amortization expense) less interest expense from borrowings. Interest income (net of premium amortization expense) for the three months ended March 31, 2010 was $61.2 million, compared to $67.0 million for the three months ended March 31, 2009, a decrease of 8.7% due primarily to an increase in premium amortization expense, a decrease in the weighted average coupons on Agency MBS (from 5.47% at March 31, 2009 to 4.88% at March 31, 2010), partially offset by an increase in the weighted average portfolio outstanding of approximately $6 billion at March 31, 2010 from approximately $5.3 billion at March 31, 2009. Interest expense for the three months ended March 31, 2010 was $24.0 million, compared to $32.5 million for the three months ended March 31, 2009, a decrease of 26.1%, which resulted from a decline in short-term interest rates, partially offset by an increase in average borrowings.
During the three months ended March 31, 2010, premium amortization expense increased $7.8 million, or 175%, from $4.5 million during the three months ended March 31, 2009 to $12.3 million, due primarily to an increase in prepayments.
Total expenses were $4.0 million for the three months ended March 31, 2010, compared to $3.9 million for the three months ended March 31, 2009. The increase of $66 thousand in total expenses was due primarily to an increase in compensation costs of $136 thousand (due to an increase in the accrual for bonus and incentive compensation) partially offset by a decrease in Other expenses (as detailed in Note 13 to the accompanying unaudited consolidated financial statements) of $70 thousand.
At March 31, 2010, we held agency mortgage assets whose amortized cost was approximately $6.28 billion, consisting primarily of $5.56 billion of adjustable-rate Agency MBS, $715 million of fixed-rate Agency MBS and $5 million of floating-rate CMOs. This amount represents an approximate 0.5% decrease from the $6.31 billion held at December 31, 2009. Of the adjustable-rate Agency MBS owned by us, 30% were adjustable-rate pass-through certificates whose coupons reset within one year. The remaining 70% consisted of hybrid adjustable-rate Agency MBS whose coupons will reset between one year and five years. Hybrid adjustable-rate Agency MBS have an initial interest rate that is fixed for a certain period, usually three to five years, and thereafter adjust annually for the remainder of the term of the loan.
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