The three most important numbers for last quarter's earnings:
Non-GAAP Core Operating Income of $1.16 per share (diluted) for the second quarter 2012(1)
20.5% Return on Equity from Non-GAAP Core Operating Income for the second quarter 2012(2)
Book value per share at June 30, 2012 was $22.58
It looks like a very solid quarter with adequate "Core Operating Income" to maintain the $.875 dividend quite easily. Here is some more from the report:
ARLINGTON, Va., July 30, 2012 /PRNewswire/ -- Arlington Asset Investment Corp. (NYSE: AI) (the "Company") today reported non-GAAP core operating income of $11.3 million for the quarter ended June 30, 2012, or $1.16 per share (diluted). A reconciliation of non-GAAP core operating income to GAAP net income appears at the end of this press release. On a GAAP basis, the Company reported net income of $2.1 million for the quarter ended June 30, 2012, or $0.22 per share (diluted), compared to net income of $10.8 million for the quarter ended March 31, 2012, or $1.37 per share (diluted), and net income of $0.1 million, or $0.01 per share (diluted), for the quarter ended June 30, 2011.
"The Company had another solid quarter in core operating earnings per share and overall portfolio performance. Since quarter end, strong investor appetite has pushed prices up in our prepayment protected agency-backed MBS portfolio causing spreads between our agency-backed MBS and our hedges to narrow, boosting book value per share and permitting us to realize cash gains of approximately $5.0 million to date in the third quarter," said J. Rock Tonkel, Jr., President and Chief Operating Officer. "Trading activity and liquidity levels in private-label MBS have increased since mid-June, while credit trends in our private-label MBS portfolio continue to be steady with improvement in delinquency levels, CPRs, and loss severities."
I just finished reading the CC and while there were several positive comments that were made, the most important one for me was: "We have 2 complementary portfolios with attractive attributes, high risk-adjusted returns that permit the company to generate consistent cash earnings and dividends with the potential for growth." With a Book Value of $22.56 per share, today's price action was, (IMHO), a buying opportunity.