SANTA MONICA, Calif., Oct. 13 /PRNewswire-FirstCall/ -- Anworth Mortgage
Asset Corporation (NYSE: ANH) announced today that its Board of Directors
declared a quarterly Common Stock dividend of $0.08 per share for the third
quarter of 2005. The Common Stock dividend is payable on November 10, 2005 to
common stockholders of record as of the close of business on October 31, 2005.
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The Company also announced that, in accordance with the terms of the
Company's 8.625% Series A Cumulative Preferred Stock, the Board of Directors
also declared a preferred stock dividend of $0.539063 per share for the fourth
quarter of 2005. The preferred stock dividend is payable on January 16, 2006
to preferred stockholders of record as of the close of business on December
30, 2005. The dividend reflects the accrual from October 1, 2005 to December
30, 2005, or 90 days of a 360 day year.
The Company also announced that its Board of Directors authorized an
additional share repurchase program, permitting the Company to acquire an
incremental 3,000,000 shares of its common stock, or approximately 6% of its
total shares of common stock outstanding. Under the Company's previously
authorized repurchase program of 2,000,000 shares of common stock, the Company
has repurchased 1,861,010 shares at an average cost of $8.72 per share. The
shares are expected to be acquired at prevailing prices through open market
transactions. The purchases are to be made subject to restrictions relating
to volume, price and timing. The actual number and timing of share
repurchases will be subject to market conditions and applicable Securities and
Exchange Commission rules.
The Company also announced preliminary operating information for the
quarter ending September 30, 2005. Estimated earnings per share for the third
quarter is $0.07 per share. The weighted average coupon of our agency
portfolio at September 30, 2005 was 4.57%. Relative to the Company's agency
MBS portfolio, the average interest rate on outstanding repurchase agreements
was 3.37%. The average days to maturity related to our agency portfolio's
repurchase agreements was 100 days. The average amortized cost of our agency
adjustable-rate portfolio is 102.1%. The average amortized cost of the agency
fixed rate portfolio at September 30, 2005 was 101.6%. Unamortized net
premium paid for our agency mortgage-backed securities was $91 million.
Amortization of premium expense associated with our agency mortgage-backed
securities was $11.6 million. The net unrealized loss, as of September 30,
2005, on our agency portfolio and associated swaps was $66 million. The
percentage of our agency portfolio whose interest rate will reset within 12
months is to 33%. The percentage of our agency portfolio whose interest rate
will reset between 12 months and 36 months is 40%. The percentage of our
agency portfolio whose interest rate will reset between 36 months and 60
months is 18%. The percentage of our agency portfolio whose interest rate
will not reset prior to maturity is 9%.
Also, Anworth's wholly-owned subsidiary, Belvedere Trust Mortgage
Corporation, announced preliminary operating information for the quarter
ending September 30, 2005. Belvedere's return on average equity was 5.2%. At
quarter end, Belvedere's real estate loans were $2.9 billion. The average
FICO score of Belvedere's real estate loan portfolio was 725 and the average
LTV was 72%. Belvedere's real estate loans 60 or more days delinquent was
0.28 % (as of August 31, 2005). Belvedere's repurchase agreements outstanding
were $487 million. The quarter end yield of Belvedere's repurchase agreements
was 3.55%. The percentage of Belvedere's MTA loans was 38% of all real estate
loans. The percentage of Belvedere's hybrid loans was 43% of all real estate
loans. Amortization of Belvedere's premium expense was $5.7 million.
Belvedere's average equity capital was $107.5 million.
About Anworth Mortgage Asset Corporation
Anworth is a mortgage real estate investment trust (REIT) which invests in
mortgage assets, including mortgage pass-through certificates, collateralized
mortgage obligations, mortgage loans and other real estate securities.
Anworth generates income for distribution to its shareholders primarily based
on the difference between the yield on its mortgage assets and the cost of its
borrowings. Through its wholly-owned subsidiary, Belvedere Trust Mortgage
Corporation, Anworth acquires mortgage loans with a focus on high
credit-quality jumbo adjustable-rate and hybrid first-lien single-family
residential mortgage loans. Belvedere Trust and its subsidiaries securitize
such mortgage loans for financing purposes and to sell mortgage-backed
securities in the capital markets.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995
This press release contains forward-looking statements within the meaning
of the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These statements are based upon our current expectations and
speak only as of the date hereof. Our actual results may differ materially
and adversely from those expressed in any forward-looking statements as a
result of various factors and uncertainties, including increases in the
prepayment rates on the mortgage loans securing our mortgage-backed
securities, our ability to use borrowings to finance our assets, increases in
default rates of the mortgage loans acquired by our mortgage loan
subsidiaries, risks associated with investing in mortgage-related assets,
including changes in business conditions and the general economy, our ability
to maintain our qualification as a real estate investment trust for federal
income tax purposes, and management's ability to manage our growth. Our
Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form
10-Q, recent Current Reports on Form 8-K and other SEC filings discuss some of
the important risk factors that may affect our business, results of operations
and financial condition. We undertake no obligation to revise or update
publicly any forward-looking statements for any reason.
Contact:
Anworth Mortgage Asset Corporation
John T. Hillman
(310) 255-4438 or (310) 255-4493
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