Anworth Reports Fourth Quarter 2020 Financial Results
Anworth Mortgage Asset Corporation (NYSE: ANH) reported its financial results for Q4 2020, with core earnings of $4,655 and GAAP net income of $21,122, translating to an EPS of $0.21. The total comprehensive income was $16,195, reflecting a healthy financial position. The company’s total assets stood at $3,108,318, and its portfolio consisted of 79.8% Agency MBS. The fair value of the Agency MBS increased slightly from the previous quarter, indicating stability in a fluctuating market.
- Core earnings increased to $4,655, improving financial health.
- GAAP net income rose to $21,122, reflecting positive profitability.
- Total comprehensive income at $16,195 indicates strong overall performance.
- Total assets of $3,108,318 show robust balance sheet strength.
- Minor increase in fair value of Agency MBS from last quarter.
- Decrease in total portfolio value from $2,989,780 to $2,951,073.
- Core earnings per share (EPS) at $0.05 shows limited growth potential.
Insights
Analyzing...
Anworth Mortgage Asset Corporation (NYSE: ANH) (the “Company” or “Anworth”) today reported its financial results for the fourth quarter ended December 31, 2020.
Earnings
The following table summarizes the Company’s core earnings, GAAP net income to common stockholders, and comprehensive income for the three months ended December 31, 2020:
|
|
Three Months Ended |
||||
|
|
December 31, 2020 |
||||
|
|
(unaudited) |
||||
|
|
|
|
Per |
||
|
|
|
|
Weighted |
||
|
|
Earnings |
|
Share |
||
|
|
(in thousands) |
|
|
|
|
Core earnings |
|
$ |
4,655 |
|
$ |
0.05 |
GAAP net income to common stockholders |
|
$ |
21,122 |
|
$ |
0.21 |
Comprehensive income |
|
$ |
16,195 |
|
$ |
0.16 |
Core earnings is a non-GAAP financial measure, which is explained and reconciled to GAAP net income to common stockholders in the section entitled “Non-GAAP Financial Measures Related to Operating Results” near the end of this earnings release. Comprehensive income is shown on our consolidated statements of comprehensive income, which is included in this earnings release. Comprehensive income consists of net income to all stockholders (including the amounts paid to preferred stockholders) and the change in other comprehensive income.
Portfolio
At December 31, 2020 and September 30, 2020, the composition of our portfolio at fair value was as follows:
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
||||||
|
|
Dollar Amount |
|
Percentage |
|
|
Dollar Amount |
|
Percentage |
|
||
|
|
(in thousands) |
|
|
|
|
(in thousands) |
|
|
|
||
|
|
(unaudited) |
|
|||||||||
Agency MBS: |
|
|
|
|
|
|
|
|
|
|
|
|
ARMS and hybrid ARMs |
|
$ |
511,628 |
|
17.3 |
% |
|
$ |
575,163 |
|
19.2 |
% |
Fixed-rate Agency MBS |
|
|
1,112,726 |
|
37.7 |
|
|
|
1,034,598 |
|
34.6 |
|
TBA Agency MBS |
|
|
730,617 |
|
24.8 |
|
|
|
727,472 |
|
24.3 |
|
Total Agency MBS |
|
$ |
2,354,971 |
|
79.8 |
% |
|
$ |
2,337,233 |
|
78.1 |
% |
Non-Agency MBS |
|
$ |
206,933 |
|
7.0 |
% |
|
$ |
198,586 |
|
6.7 |
% |
Residential mortgage loans held-for-investment through consolidated securitization trusts(1) |
|
|
267,107 |
|
9.1 |
|
|
|
317,887 |
|
10.6 |
|
Residential mortgage loans held-for-securitization |
|
|
109,312 |
|
3.7 |
|
|
|
123,247 |
|
4.2 |
|
Residential real estate |
|
|
12,750 |
|
0.4 |
|
|
|
12,827 |
|
0.4 |
|
Total Portfolio |
|
$ |
2,951,073 |
|
100.0 |
% |
|
$ |
2,989,780 |
|
100.0 |
% |
Total Assets(2) |
|
$ |
3,108,318 |
|
|
|
|
$ |
3,164,635 |
|
|
|
| ________________________________ | |
(1) |
Residential mortgage loans owned by consolidated variable interest entities (“VIEs”) can only be used to settle obligations and liabilities of the VIEs, for which creditors do not have recourse to the Company. |
(2) |
Includes TBA Agency MBS. |
Agency MBS
At December 31, 2020, the allocation of our agency mortgage-backed securities (“Agency MBS”) was approximately
|
|
December 31, |
|
|
September 30, |
|
||
|
|
2020 |
|
|
2020 |
|
||
|
|
(dollar amounts in thousands) |
|
|||||
|
|
(unaudited) |
|
|||||
Fair value of Agency MBS and TBA Agency MBS |
|
$ |
2,354,971 |
|
|
$ |
2,337,233 |
|
Adjustable-rate Agency MBS coupon reset (less than 1 year) |
|
|
14 |
% |
|
|
16 |
% |
Hybrid adjustable-rate Agency MBS coupon reset (1-3 years) |
|
|
5 |
|
|
|
6 |
|
Hybrid adjustable-rate Agency MBS coupon reset (3-5 years) |
|
|
— |
|
|
|
— |
|
Hybrid adjustable-rate Agency MBS coupon reset (greater than 5 years) |
|
|
3 |
|
|
|
3 |
|
Total adjustable-rate Agency MBS |
|
|
22 |
% |
|
|
25 |
% |
15-year fixed-rate Agency MBS |
|
|
1 |
|
|
|
2 |
|
20-year fixed-rate Agency MBS |
|
|
7 |
|
|
|
7 |
|
30-year fixed-rate Agency MBS |
|
|
39 |
|
|
|
35 |
|
30-year fixed-rate TBA Agency MBS |
|
|
31 |
|
|
|
31 |
|
Total MBS |
|
|
100 |
% |
|
|
100 |
% |
At December 31, 2020 and September 30, 2020, the summary statistics of our Agency MBS and TBA Agency MBS were as follows:
|
|
December 31, 2020 |
||||||||
|
|
Weighted Average |
||||||||
|
|
|
|
|
|
|
|
|
Fair Market |
|
|
|
Coupon |
|
|
Cost |
|
|
Price |
||
|
|
(unaudited) |
||||||||
Agency MBS: |
|
|
|
|
|
|
|
|
|
|
Adjustable-rate Agency MBS |
|
|
2.80 |
% |
|
$ |
101.99 |
|
$ |
103.76 |
Hybrid adjustable-rate Agency MBS |
|
|
2.73 |
|
|
|
101.30 |
|
|
104.03 |
15-year fixed-rate Agency MBS |
|
|
3.50 |
|
|
|
101.50 |
|
|
106.75 |
20-year fixed-rate Agency MBS |
|
|
3.56 |
|
|
|
103.28 |
|
|
108.95 |
30-year fixed-rate Agency MBS |
|
|
3.61 |
|
|
|
102.81 |
|
|
107.45 |
Total Agency MBS: |
|
|
3.34 |
% |
|
$ |
102.49 |
|
$ |
106.43 |
Average asset yield (weighted average coupon divided by average amortized cost) |
|
|
3.26 |
% |
|
|
|
|
|
|
Unamortized premium |
|
$ |
37.8 |
million |
|
|
|
|
|
|
Unamortized premium as a percentage of par value |
|
|
2.49 |
% |
|
|
|
|
|
|
Premium amortization expense on Agency MBS for the respective quarter |
|
$ |
4.6 |
million |
|
|
|
|
|
|
TBA Agency MBS: |
|
|
|
|
|
|
|
|
|
|
30-year fixed-rate TBA Agency MBS |
|
|
2.14 |
% |
|
$ |
103.40 |
|
$ |
104.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 |
||||||||
|
|
Weighted Average |
||||||||
|
|
|
|
|
|
|
|
|
Fair Market |
|
|
|
Coupon |
|
|
|
Cost |
|
|
Price |
|
|
|
(unaudited) |
||||||||
Agency MBS: |
|
|
|
|
|
|
|
|
|
|
Adjustable-rate Agency MBS |
|
|
3.16 |
% |
|
$ |
102.02 |
|
$ |
104.06 |
Hybrid adjustable-rate Agency MBS |
|
|
2.74 |
|
|
|
101.51 |
|
|
104.19 |
15-year fixed-rate Agency MBS |
|
|
3.50 |
|
|
|
101.51 |
|
|
106.10 |
20-year fixed-rate Agency MBS |
|
|
3.56 |
|
|
|
103.35 |
|
|
108.84 |
30-year fixed-rate Agency MBS |
|
|
4.00 |
|
|
|
102.23 |
|
|
108.02 |
Total Agency MBS: |
|
|
3.58 |
% |
|
$ |
102.18 |
|
$ |
106.98 |
Average asset yield (weighted average coupon divided by average amortized cost) |
|
|
3.51 |
% |
|
|
|
|
|
|
Unamortized premium |
|
$ |
32.8 |
million |
|
|
|
|
|
|
Unamortized premium as a percentage of par value |
|
|
2.18 |
% |
|
|
|
|
|
|
Premium amortization expense on Agency MBS for the respective quarter |
|
$ |
9.1 |
million |
|
|
|
|
|
|
TBA Agency MBS: |
|
|
|
|
|
|
|
|
|
|
30-year fixed-rate TBA Agency MBS |
|
|
2.18 |
% |
|
$ |
103.69 |
|
$ |
103.92 |
At December 31, 2020 and September 30, 2020, the constant prepayment rate (“CPR”) and weighted average term to next interest rate reset of our Agency MBS were as follows:
|
|
December 31, |
|
September 30, |
|
|
|
2020 |
|
2020 |
|
|
|
(unaudited) |
|
||
Constant prepayment rate (CPR) of Agency MBS |
|
40 |
% |
39 |
% |
Constant prepayment rate (CPR) of adjustable-rate and hybrid adjustable-rate Agency MBS |
|
35 |
% |
37 |
% |
Weighted average term to next interest rate reset on Agency MBS |
|
19 |
months |
21 |
months |
The following tables summarize our fixed-rate Agency MBS at December 31, 2020 and September 30, 2020:
|
|
|
December 31, 2020 |
|||||||||||
|
|
|
(unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
Remaining |
|
|
|
Market |
|
|
|
|
|
Fair Market |
|
Average |
|
|
Term |
|
|
|
Value |
|
|
Cost |
|
|
Price |
|
Coupon |
|
|
(Years) |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
30-Year Fixed-Rate Agency MBS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
51,966 |
|
$ |
103.32 |
|
$ |
103.93 |
|
2.00 |
% |
|
30.0 |
|
|
|
167,049 |
|
|
104.95 |
|
|
105.49 |
|
2.50 |
|
|
29.9 |
|
|
|
110,235 |
|
|
102.61 |
|
|
107.99 |
|
3.50 |
|
|
26.2 |
|
|
|
519,435 |
|
|
102.16 |
|
|
107.92 |
|
4.00 |
|
|
27.6 |
≥ |
|
|
72,917 |
|
|
102.36 |
|
|
110.65 |
|
4.85 |
|
|
25.2 |
|
|
$ |
921,602 |
|
$ |
102.81 |
|
$ |
107.45 |
|
3.61 |
% |
|
27.8 |
15-Year to 20-Year Fixed-Rate Agency MBS |
|
|
191,124 |
|
|
102.95 |
|
|
108.55 |
|
3.55 |
|
|
15.5 |
Total Fixed-Rate Agency MBS |
|
$ |
1,112,726 |
|
$ |
102.84 |
|
$ |
107.64 |
|
3.60 |
% |
|
25.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 |
|||||||||||
|
|
|
(unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
Remaining |
|
|
|
Market |
|
|
|
|
|
Fair Market |
|
Average |
|
|
Term |
|
|
|
Value |
|
|
Cost |
|
|
Price |
|
Coupon |
|
|
(Years) |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
30-Year Fixed-Rate Agency MBS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
127,722 |
|
$ |
102.59 |
|
$ |
107.92 |
|
3.50 |
% |
|
26.5 |
|
|
|
616,741 |
|
|
102.13 |
|
|
107.75 |
|
4.00 |
|
|
27.9 |
≥ |
|
|
82,968 |
|
|
102.41 |
|
|
110.27 |
|
4.82 |
|
|
25.7 |
|
|
$ |
827,431 |
|
$ |
102.23 |
|
$ |
108.02 |
|
4.00 |
% |
|
27.5 |
15-Year to 20-Year Fixed-Rate Agency MBS |
|
|
207,167 |
|
|
103.00 |
|
|
108.33 |
|
3.55 |
|
|
15.8 |
Total Fixed-Rate Agency MBS |
|
$ |
1,034,598 |
|
$ |
102.38 |
|
$ |
108.08 |
|
3.91 |
% |
|
25.1 |
Non-Agency MBS
At March 31, 2020, our Non-Agency MBS were designated as trading securities and are carried at fair value.
The following tables summarize our Non-Agency MBS at December 31, 2020 and September 30, 2020:
|
|
December 31, 2020 |
|
||||||||||
|
|
(unaudited) |
|
||||||||||
|
|
|
|
|
|
|
|
Weighted Average |
|
||||
|
|
Fair |
|
|
Current |
|
|
|
|
|
Fair Market |
|
|
Portfolio Type |
|
Value |
|
|
Principal |
|
Coupon |
|
|
|
Price |
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
||||
Legacy Non-Agency MBS (pre-2008) |
|
$ |
101,149 |
|
$ |
161,648 |
|
5.21 |
% |
|
$ |
62.57 |
|
Non-performing |
|
|
9,860 |
|
|
10,000 |
|
6.35 |
|
|
|
98.60 |
|
Credit Risk Transfer |
|
|
95,924 |
|
|
94,782 |
|
4.12 |
|
|
|
101.20 |
|
Total Non-Agency MBS |
|
$ |
206,933 |
|
$ |
266,430 |
|
4.86 |
% |
|
$ |
77.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 |
|
||||||||||
|
|
(unaudited) |
|
||||||||||
|
|
|
|
|
|
|
|
Weighted Average |
|
||||
|
|
Fair |
|
Current |
|
|
|
|
Fair Market |
|
|||
Portfolio Type |
|
Value |
|
Principal |
|
Coupon |
|
|
Price |
|
|||
|
|
(in thousands) |
|
|
|
|
|
|
|
||||
Legacy Non-Agency MBS (pre-2008) |
|
$ |
104,180 |
|
$ |
165,885 |
|
5.23 |
% |
|
$ |
62.80 |
|
Non-performing |
|
|
1,000 |
|
|
1,000 |
|
5.00 |
|
|
|
100.00 |
|
Credit Risk Transfer |
|
|
93,406 |
|
|
96,236 |
|
4.11 |
|
|
|
97.06 |
|
Total Non-Agency MBS |
|
$ |
198,586 |
|
$ |
263,121 |
|
4.82 |
% |
|
$ |
75.47 |
|
Residential Mortgage Loans Held-for-Investment
The following table summarizes our residential mortgage loans held-for-investment at December 31, 2020 and September 30, 2020:
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
||
|
|
2020 |
|
2020 |
||
|
|
(in thousands) |
||||
|
|
(unaudited) |
||||
Residential mortgage loans held-for-investment through consolidated securitization trusts |
|
$ |
267,107 |
|
$ |
317,887 |
Asset-backed securities issued by securitization trusts |
|
|
258,414 |
|
|
309,173 |
Retained interest in loans held in securitization trusts |
|
$ |
8,693 |
|
$ |
8,714 |
Residential Mortgage Loans Held-for-Securitization
The following table summarizes our residential mortgage loans held-for-securitization at December 31, 2020 and September 30, 2020:
|
|
|
|
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"@type": "Question",
"name": "What were Anworth Mortgage's earnings in Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "Anworth reported core earnings of $4,655 and GAAP net income of $21,122."
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},
{
"@type": "Question",
"name": "What is the total asset value of Anworth Mortgage as of December 31, 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The total asset value is $3,108,318."
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"@type": "Question",
"name": "How much did Anworth's comprehensive income amount to in Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The comprehensive income for Q4 2020 was $16,195."
}
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{
"@type": "Question",
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"acceptedAnswer": {
"@type": "Answer",
"text": "Agency MBS constitutes 79.8% of Anworth's total portfolio."
}
},
{
"@type": "Question",
"name": "How did Anworth's total portfolio value change from Q3 to Q4 2020?",
"acceptedAnswer": {
"@type": "Answer",
"text": "The total portfolio value decreased from $2,989,780 to $2,951,073."
}
}
]
}
FAQWhat were Anworth Mortgage's earnings in Q4 2020?
Anworth reported core earnings of $4,655 and GAAP net income of $21,122.
What is the total asset value of Anworth Mortgage as of December 31, 2020?
The total asset value is $3,108,318.
How much did Anworth's comprehensive income amount to in Q4 2020?
The comprehensive income for Q4 2020 was $16,195.
What percentage of Anworth's portfolio consists of Agency MBS?
Agency MBS constitutes 79.8% of Anworth's total portfolio.
How did Anworth's total portfolio value change from Q3 to Q4 2020?
The total portfolio value decreased from $2,989,780 to $2,951,073.
Anworth Mortgage
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