U.S. Markets closed

Annaly Capital Management, Inc. Reports 4th Quarter 2019 Results

Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") today announced its financial results for the quarter and year ended December 31, 2019.

Financial Highlights

  • GAAP net income (loss) of $0.82 per average common share for the quarter, ($1.60) for the year ended 2019
  • Core earnings (excluding PAA) of $0.26 per average common share for the quarter, $1.00 for the year ended 2019
  • Economic return of 7.6% for the quarter, 14.1% for the year ended 2019
  • GAAP return on average equity of 31.20% and core return on average equity (excluding PAA) of 10.56% for the quarter
  • Book value per common share of $9.66 up from $9.21 in the prior quarter
  • Economic leverage of 7.2x down from 7.7x in the prior quarter
  • Declared quarterly common stock dividend of $0.25 per share

Business Highlights

Fourth Quarter Highlights

  • Capital allocation to credit increased to 26% from 23%, driven by $1.8 billion in new credit assets
  • Annaly Residential Credit Group completed a $465.5 million residential whole loan securitization and purchased $957.0 million of residential whole loans during the fourth quarter
  • Annaly Commercial Real Estate Group closed $596.0 million in new investments, bringing total assets to $2.3 billion, an increase of 31% from the third quarter
  • Annaly Middle Market Lending Group closed $238.7 million of loans in the quarter
  • Average interest rate on repo borrowings declined by over 40 bps during the quarter to 2.09%; extended weighted average days to maturity of repo to 65 days
  • Appointed Serena Wolfe as Chief Financial Officer
  • Separated the roles of CEO and Chair of the Board; appointed the Company’s first independent Board Chair
  • Subsequent to quarter end, announced signing of definitive agreements under which Annaly will acquire its external manager, Annaly Management Company LLC, and transition to being an internally-managed REIT

Full-Year 2019 Highlights

Investment and Strategy

  • Originated $4.6 billion of new credit assets in 2019, up 11% from 2018
  • Annaly Residential Credit Group issued $2.5 billion in residential whole loan securitizations across six transactions since the beginning of 2019, inclusive of the $374.6 million residential whole loan securitization closed subsequent to year end
  • Expanded partnerships to more than 25 across our four businesses
  • Authored industry-focused joint study on GSE reform in conjunction with Barclays' Head of Macro Research

Financing and Capital

  • Raised gross proceeds of $442.5 million through issuance of Series I fixed-to-floating rate cumulative redeemable preferred equity; redeemed all outstanding shares of Series H and Series C classes of preferred stock in May and July, respectively, reducing the cost of preferred capital by 15 bps
  • Raised $1.2 billion of common equity inclusive of $223.2 million of common shares repurchased during the second half of 2019 to take advantage of temporary market dislocation
  • Annaly Middle Market Lending Group added $695.0 million of credit facility capacity throughout the year

Corporate Governance

  • Expanded Board of Directors with election of two new independent directors during 2019; Board comprised of 82% independent directors and 45% women directors
  • Published extensive disclosure on the Company’s continued commitment to leading Corporate Responsibility practices including the launch of Annaly's Corporate Responsibility web page
  • Annaly’s Women’s Interactive Network hosted two external events in 2019 with nearly 350 attendees, including a Women’s Leadership Event and Nonprofit Board Fair, to enhance and empower women both inside and outside of Annaly

"Annaly successfully executed on its strategic goals and initiatives during 2019, including generating an economic return of over 14%, our highest annual return since 2014, and originating nearly $5 billion of credit assets throughout the year," stated Glenn Votek, Annaly’s Interim Chief Executive Officer and President. "Although we are always prepared for uncertainty, our outlook for the year is constructive given a robust global economy, more accommodative Fed policy and increased role for private capital in the housing market."

"As we are keenly focused on creating value for our shareholders, 2019 was also a milestone year for Annaly’s corporate responsibility and corporate governance initiatives with significant enhancements made to benefit our shareholders. These were highlighted by the announcement to internalize our manager and the separation of the CEO and Board Chair positions. We also substantially expanded our ESG disclosure through the creation of our Corporate Responsibility web page, were recognized as a 'Winning Company' by 2020 Women on Boards, and were recently named to the Bloomberg Gender-Equality Index for the third consecutive year. We look forward to building on these successes in 2020 as we continue to prioritize delivering attractive risk-adjusted returns while driving a positive impact over the long term."

Financial Performance

The following table summarizes certain key performance indicators as of and for the quarters ended December 31, 2019, September 30, 2019 and December 31, 2018:

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

Book value per common share

$

9.66

 

 

$

9.21

 

 

$

9.39

 

Economic leverage at period-end (1)

7.2:1

 

7.7:1

 

7.0:1

GAAP net income (loss) per average common share (2)

$

0.82

 

 

$

(0.54

)

 

$

(1.74

)

Annualized GAAP return (loss) on average equity

31.20

%

 

(19.32

%)

 

(62.05

%)

Net interest margin (3)

1.67

%

 

0.75

%

 

1.34

%

Average yield on interest earning assets (4)

3.53

%

 

2.89

%

 

3.21

%

Average cost of interest bearing liabilities (5)

2.01

%

 

2.28

%

 

2.22

%

Net interest spread

1.52

%

 

0.61

%

 

0.99

%

Core earnings metrics *

 

 

 

 

 

Core earnings (excluding PAA) per average common share (2)

$

0.26

 

 

$

0.21

 

 

$

0.29

 

Core earnings per average common share (2)

$

0.32

 

 

$

0.13

 

 

$

0.26

 

PAA cost (benefit) per average common share

$

(0.06

)

 

$

0.08

 

 

$

0.03

 

Annualized core return on average equity (excluding PAA)

10.56

%

 

8.85

%

 

11.48

%

Net interest margin (excluding PAA) (3)

1.41

%

 

1.10

%

 

1.49

%

Average yield on interest earning assets (excluding PAA) (4)

3.25

%

 

3.26

%

 

3.38

%

Net interest spread (excluding PAA)

1.24

%

 

0.98

%

 

1.16

%

*

 

Represents non-GAAP financial measures. Please refer to the "Non-GAAP Financial Measures" section for additional information.

(1)

 

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). Securitized debt, certain credit facilities (included within other secured financing) and mortgages payable are non-recourse to the Company and are excluded from this measure.

(2)

 

Net of dividends on preferred stock. The quarter ended September 30, 2019 excludes cumulative and undeclared dividends of $0.3 million on the Company's Series I Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock ("Series I Preferred Stock") as of June 30, 2019.

(3)

 

Net interest margin represents the sum of the Company's interest income 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 TBA contract and CMBX balances. Net interest margin (excluding PAA) excludes the premium amortization adjustment ("PAA") representing 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 cost of interest bearing liabilities represents annualized economic interest expense divided by average interest bearing liabilities. Average interest bearing liabilities reflects the average amortized cost during the period. 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. 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 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; our ability to grow our commercial real estate business; our ability to grow our residential credit business; our ability to grow our middle market lending business; credit risks related to our investments in credit risk transfer securities, residential mortgage-backed securities and related residential mortgage credit assets, commercial real estate assets and corporate debt; 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; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; and risks and uncertainties associated with the Internalization, including but not limited to the occurrence of any event, change or other circumstances that could give rise to the termination of the Internalization Agreement; the outcome of any legal proceedings that may be instituted against the parties to the Internalization Agreement; the inability to complete the Internalization due to the failure to satisfy closing conditions or otherwise; risks that the Internalization disrupts our current plans and operations; the impact, if any, of the announcement or pendency of the Internalization on our relationships with third parties; and the amount of the costs, fees, expenses charges related to the Internalization; and the risk that the expected benefits, including long-term cost savings, of the Internalization are not achieved. 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. We do not undertake, and specifically disclaim 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 that invests in and finances residential and commercial assets. 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 has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Prior to the closing of the transaction discussed above, Annaly is externally managed by Annaly Management Company LLC. 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 "Email Alerts" section of our website, www.annaly.com, under the "Investors" section and enter the required information to enable notifications. 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 Fourth Quarter 2019 Investor Presentation and the Fourth Quarter 2019 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 fourth quarter 2019 earnings conference call on February 13, 2020 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: http://dpregister.com/10138795.

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 10138795. 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)

 

 

December 31,
2019

 

September 30,
2019

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018 (1)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

 

1,850,729

 

 

$

 

1,793,921

 

 

$

 

1,982,311

 

 

$

 

1,522,605

 

 

$

 

1,735,749

 

Securities

 

114,833,580

 

 

 

116,094,061

 

 

 

119,926,869

 

 

 

104,993,271

 

 

 

92,623,788

 

Loans, net

 

4,462,350

 

 

 

3,946,614

 

 

 

3,546,468

 

 

 

3,879,324

 

 

 

4,585,975

 

Mortgage servicing rights

 

378,078

 

 

 

386,051

 

 

 

425,328

 

 

 

500,745

 

 

 

557,813

 

Assets transferred or pledged to securitization vehicles

 

7,002,460

 

 

 

4,688,144

 

 

 

4,211,582

 

 

 

4,365,300

 

 

 

3,833,200

 

Real estate, net

 

725,638

 

 

 

725,508

 

 

 

733,196

 

 

 

734,239

 

 

 

739,473

 

Derivative assets

 

113,556

 

 

 

168,755

 

 

 

75,142

 

 

 

148,178

 

 

 

200,503

 

Reverse repurchase agreements

 

 

 

 

 

 

 

523,449

 

 

 

650,040

 

Receivable for unsettled trades

 

4,792

 

 

 

193,229

 

 

 

5,322

 

 

 

1,574,251

 

 

 

68,779

 

Principal and interest receivable

 

449,906

 

 

 

483,744

 

 

 

440,940

 

 

 

390,930

 

 

 

357,365

 

Goodwill and intangible assets, net

 

92,772

 

 

 

94,904

 

 

 

96,591

 

 

 

98,551

 

 

 

100,854

 

Other assets

 

381,220

 

 

 

381,189

 

 

 

357,027

 

 

 

441,706

 

 

 

333,988

 

Total assets

$

 

130,295,081

 

 

$

 

128,956,120

 

 

$

 

131,800,776

 

 

$

 

119,172,549

 

 

$

 

105,787,527

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Repurchase agreements

$

 

101,740,728

 

 

$

 

102,682,104

 

 

$

 

105,181,241

 

 

$

 

88,554,170

 

 

$

 

81,115,874

 

Other secured financing

 

4,455,700

 

 

 

4,466,030

 

 

 

4,127,989

 

 

 

4,144,623

 

 

 

4,183,311

 

Debt issued by securitization vehicles

 

5,622,801

 

 

 

3,856,082

 

 

 

3,470,168

 

 

 

3,693,766

 

 

 

3,347,062

 

Mortgages payable

 

485,005

 

 

 

485,657

 

 

 

498,772

 

 

 

510,386

 

 

 

511,056

 

Derivative liabilities

 

803,866

 

 

 

972,415

 

 

 

1,043,197

 

 

 

775,980

 

 

 

889,750

 

Payable for unsettled trades

 

463,387

 

 

 

245,626

 

 

 

620,784

 

 

 

4,763,376

 

 

 

583,036

 

Interest payable

 

476,335

 

 

 

565,797

 

 

 

691,327

 

 

 

424,391

 

 

 

570,928

 

Dividends payable

 

357,527

 

 

 

359,491

 

 

 

364,066

 

 

 

434,431

 

 

 

394,129

 

Other liabilities

 

93,388

 

 

 

99,214

 

 

 

95,825

 

 

 

89,982

 

 

 

74,580

 

Total liabilities

 

114,498,737

 

 

 

113,732,416

 

 

 

116,093,369

 

 

 

103,391,105

 

 

 

91,669,726

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

Preferred stock, par value $0.01 per share (2)

 

1,982,026

 

 

 

1,982,026

 

 

 

2,110,346

 

 

 

1,778,168

 

 

 

1,778,168

 

Common stock, par value $0.01 per share (3)

 

14,301

 

 

 

14,380

 

 

 

14,562

 

 

 

14,481

 

 

 

13,138

 

Additional paid-in capital

 

19,966,923

 

 

 

20,034,970

 

 

 

20,195,419

 

 

 

20,112,875

 

 

 

18,794,331

 

Accumulated other comprehensive income (loss)

 

2,138,191

 

 

 

2,313,815

 

 

 

1,365,003

 

 

 

(319,376

)

 

 

(1,979,865

)

Accumulated deficit

 

(8,309,424

)

 

 

(9,125,895

)

 

 

(7,982,649

)

 

 

(5,809,931

)

 

 

(4,493,660

)

Total stockholders’ equity

 

15,792,017

 

 

 

15,219,296

 

 

 

15,702,681

 

 

 

15,776,217

 

 

 

14,112,112

 

Noncontrolling interests

 

4,327

 

 

 

4,408

 

 

 

4,726

 

 

 

5,227

 

 

 

5,689

 

Total equity

 

15,796,344

 

 

 

15,223,704

 

 

 

15,707,407

 

 

 

15,781,444

 

 

 

14,117,801

 

Total liabilities and equity

$

 

130,295,081

 

 

$

 

128,956,120

 

 

$

 

131,800,776

 

 

$

 

119,172,549

 

 

$

 

105,787,527

 

 

(1)

 

Derived from the audited consolidated financial statements at December 31, 2018.

(2)

 

7.625% Series C Cumulative Redeemable Preferred Stock - Includes 0 shares authorized, issued and outstanding at December 31, 2019 and September 30, 2019. Includes 7,000,000 shares authorized, issued and outstanding at June 30, 2019, March 31, 2019 and December 31, 2018.
7.50% Series D Cumulative Redeemable Preferred Stock - Includes 18,400,000 shares authorized, issued and outstanding.
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 19,550,000 shares authorized and 17,000,000 shares issued and outstanding.8.125% Series H Cumulative Redeemable Preferred Stock - Includes 0 shares authorized, issued and outstanding at December 31, 2019, September 30, 2019 and June 30, 2019. Includes 2,200,000 shares authorized, issued and outstanding at March 31, 2019 and December 31, 2018.
6.75% Series I Preferred Stock - Includes 18,400,000 shares authorized and 17,700,000 issued and outstanding at December 31, 2019 and September 30, 2019. Includes 18,400,000 shares authorized and 16,000,000 issued and outstanding at June 30, 2019. Includes 0 shares authorized, issued and outstanding at March 31, 2019 and December 31, 2018.

(3)

 

Includes 2,914,850,000 shares authorized and 1,430,106,199 shares issued and outstanding at December 31, 2019. Includes 2,914,850,000 shares authorized and 1,437,964,466 shares issued and outstanding at September 30, 2019. Includes 2,907,850,000 shares authorized and 1,456,263,410 shares issued and outstanding at June 30, 2019. Includes 1,924,050,000 shares authorized and 1,448,103,248 shares issued and outstanding at March 31, 2019. Includes 1,924,050,000 shares authorized and 1,313,763,450 shares issued and outstanding at December 31, 2018.

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(dollars in thousands, except per share data)

(Unaudited)

 

For the quarters ended

 

December 31,
2019

 

September 30,
2019

 

June 30,
2019

 

March 31,
2019

 

December 31,
2018

Net interest income

 

 

 

 

 

 

 

 

 

Interest income

$

 

1,074,214

 

 

$

 

919,299

 

 

$

 

927,598

 

 

$

 

866,186

 

 

$

 

859,674

 

Interest expense

 

620,058

 

 

 

766,905

 

 

 

750,217

 

 

 

647,695

 

 

 

586,774

 

Net interest income

 

454,156

 

 

 

152,394

 

 

 

177,381

 

 

 

218,491

 

 

 

272,900

 

Realized and unrealized gains (losses)

 

 

 

 

 

 

 

 

 

Net interest component of interest rate swaps

 

45,221

 

 

 

88,466

 

 

 

83,653

 

 

 

134,035

 

 

 

65,889

 

Realized gains (losses) on termination or maturity of interest rate swaps

 

(4,615

)

 

 

(682,602

)

 

 

(167,491

)

 

 

(588,256

)

 

 

Unrealized gains (losses) on interest rate swaps

 

782,608

 

 

 

(326,309

)

 

 

(1,276,019

)

 

 

(390,556

)

 

 

(1,313,882

)

Subtotal

 

823,214

 

 

 

(920,445

)

 

 

(1,359,857

)

 

 

(844,777

)

 

 

(1,247,993

)

Net gains (losses) on disposal of investments

 

17,783

 

 

 

66,522

 

 

 

(38,333

)

 

 

(93,916

)

 

 

(747,505

)

Net gains (losses) on other derivatives

 

(42,312

)

 

 

(16,888

)

 

 

(506,411

)

 

 

(115,159

)

 

 

(484,872

)

Net unrealized gains (losses) on instruments measured at fair value
through earnings

 

(5,636

)

 

 

(1,091

)

 

 

(4,881

)

 

 

47,629

 

 

 

(18,169

)

Loan loss provision

 

(7,362

)

 

 

(3,504

)

 

 

 

 

(5,703

)

 

 

(3,496

)

Subtotal

 

(37,527

)

 

 

45,039

 

 

 

(549,625

)

 

 

(167,149

)

 

 

(1,254,042

)

Total realized and unrealized gains (losses)

 

785,687

 

 

 

(875,406

)

 

 

(1,909,482

)

 

 

(1,011,926

)

 

 

(2,502,035

)

Other income (loss)

 

42,656

 

 

 

35,074

 

 

 

28,181

 

 

 

30,502

 

 

 

52,377

 

General and administrative expenses

 

 

 

 

 

 

 

 

 

Compensation and management fee

 

40,403

 

 

 

41,161

 

 

 

44,231

 

 

 

44,833

 

 

 

43,750

 

Other general and administrative expenses

 

32,948

 

 

 

24,977

 

 

 

34,177

 

 

 

38,904

 

 

 

33,323

 

Total general and administrative expenses

 

73,351

 

 

 

66,138

 

 

 

78,408

 

 

 

83,737

 

 

 

77,073

 

Income (loss) before income taxes

 

1,209,148

 

 

 

(754,076

)

 

 

(1,782,328

)

 

 

(846,670

)

 

 

(2,253,831

)

Income taxes

 

(594

)

 

 

(6,907

)

 

 

(5,915

)

 

 

2,581

 

 

 

1,041

 

Net income (loss)

 

1,209,742

 

 

 

(747,169

)

 

 

(1,776,413

)

 

 

(849,251

)

 

 

(2,254,872

)

Net income (loss) attributable to noncontrolling interests

 

68

 

 

 

(110

)

 

 

(83

)

 

 

(101

)

 

 

17

 

Net income (loss) attributable to Annaly

 

1,209,674

 

 

 

(747,059

)

 

 

(1,776,330

)

 

 

(849,150

)

 

 

(2,254,889

)

Dividends on preferred stock (1)

 

35,509

 

 

 

36,151

 

 

 

32,422

 

 

 

32,494

 

 

 

32,494

 

Net income (loss) available (related) to common stockholders

$

 

1,174,165

 

 

$

 

(783,210

)

 

$

 

(1,808,752

)

 

$

 

(881,644

)

 

$

 

(2,287,383

)

Net income (loss) per share available (related) to common stockholders

 

 

 

 

 

 

 

 

Basic

$

 

0.82

 

 

$

 

(0.54

)

 

$

 

(1.24

)

 

$

 

(0.63

)

 

$

 

(1.74

)

Diluted

$

 

0.82

 

 

$

 

(0.54

)

 

$

 

(1.24

)

 

$

 

(0.63

)

 

$

 

(1.74

)

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

1,431,079,108

 

 

 

1,453,359,211

 

 

 

1,456,038,736

 

 

 

1,398,614,205

 

 

 

1,314,377,748

 

Diluted

 

1,431,079,108

 

 

 

1,453,359,211

 

 

 

1,456,038,736

 

 

 

1,398,614,205

 

 

 

1,314,377,748

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

Net income (loss)

$

 

1,209,742

 

 

$

 

(747,169

)

 

$

 

(1,776,413

)

 

$

 

(849,251

)

 

$

 

(2,254,872

)

Unrealized gains (losses) on available-for-sale securities

 

(153,192

)

 

 

1,034,873

 

 

 

1,654,783

 

 

 

1,599,398

 

 

 

1,100,052

 

Reclassification adjustment for net (gains) losses included in net
income (loss)

 

(22,432

)

 

 

(86,061

)

 

 

29,596

 

 

 

61,091

 

 

 

743,039

 

Other comprehensive income (loss)

 

(175,624

)

 

 

948,812

 

 

 

1,684,379

 

 

 

1,660,489

 

 

 

1,843,091

 

Comprehensive income (loss)

 

1,034,118

 

 

 

201,643

 

 

 

(92,034

)

 

 

811,238

 

 

 

(411,781

)

Comprehensive income (loss) attributable to noncontrolling interests

 

68

 

 

 

(110

)

 

 

(83

)

 

 

(101

)

 

 

17

 

Comprehensive income (loss) attributable to Annaly

 

1,034,050

 

 

 

201,753

 

 

 

(91,951

)

 

 

811,339

 

 

 

(411,798

)

Dividends on preferred stock (1)

 

35,509

 

 

 

36,151

 

 

 

32,422

 

 

 

32,494

 

 

 

32,494

 

Comprehensive income (loss) attributable to common stockholders

$

 

998,541

 

 

$

 

165,602

 

 

$

 

(124,373

)

 

$

 

778,845

 

 

$

 

(444,292

)

 

(1)

 

The quarter ended September 30, 2019 excludes, and the quarter ended June 30, 2019 includes, cumulative and undeclared dividends of $0.3 million on the Company's Series I Preferred Stock as of June 30, 2019.

...

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(dollars in thousands, except per share data)

 

For the years ended

 

December 31, 2019

 

December 31, 2018 (1)

 

(unaudited)

 

 

Net interest income

 

 

 

Interest income

$

 

3,787,297

 

 

$

 

3,332,563

 

Interest expense

 

2,784,875

 

 

 

1,897,860

 

Net interest income

 

1,002,422

 

 

 

1,434,703

 

Realized and unrealized gains (losses)

 

 

 

Net interest component of interest rate swaps

 

351,375

 

 

 

100,553

 

Realized gains (losses) on termination or maturity of interest rate swaps

 

(1,442,964

)

 

 

1,409

 

Unrealized gains (losses) on interest rate swaps

 

(1,210,276

)

 

 

424,081

 

Subtotal

 

(2,301,865

)

 

 

526,043

 

Net gains (losses) on disposal of investments

 

(47,944

)

 

 

(1,124,448

)

Net gains (losses) on other derivatives

 

(680,770

)

 

 

(403,001

)

Net unrealized gains (losses) on instruments measured at fair value through earnings

 

36,021

 

 

 

(158,082

)

Loan loss provision

 

(16,569

)

 

 

(3,496

)

Subtotal

 

(709,262

)

 

 

(1,689,027

)

Total realized and unrealized gains (losses)

 

(3,011,127

)

 

 

(1,162,984

)

Other income (loss)

 

136,413

 

 

 

109,927

 

General and administrative expenses

 

 

 

Compensation and management fee

 

170,628

 

 

 

179,841

 

Other general and administrative expenses

 

131,006

 

 

 

150,032

 

Total general and administrative expenses

 

301,634

 

 

 

329,873

 

Income (loss) before income taxes

 

(2,173,926

)

 

 

51,773

 

Income taxes

 

(10,835

)

 

 

(2,375

)

Net income (loss)

 

(2,163,091

)

 

 

54,148

 

Net income (loss) attributable to noncontrolling interests

 

(226

)

 

 

(260

)

Net income (loss) attributable to Annaly

 

(2,162,865

)

 

 

54,408

 

Dividends on preferred stock

 

136,576

 

 

 

129,312

 

Net income (loss) available (related) to common stockholders

$

 

(2,299,441

)

 

$

 

(74,904

)

Net income (loss) per share available (related) to common stockholders