Invesco Mortgage Capital Inc. Reports Fourth Quarter 2009 Financial Results

Invesco Mortgage Capital Inc. (NYSE: IVR – News) (the “Company”) today announced results for the fourth quarter ended December 31, 2009.

The Company reported net income of $10.5 million, or $1.02 per share (basic and diluted), for the quarter ended December 31, 2009, compared to $7.2 million, or $0.70 per share, for the quarter ended September 30, 2009. The Company completed its initial public offering (“IPO”) on July 1, 2009. The fourth quarter was the first completed quarter to reflect the full deployment of the IPO capital. The increase from the previous quarter was primarily driven by the $2.0 million gain on sale of securities and a $1.1 million increase in net interest income as a result of the full deployment of the IPO capital. Net income for the year ended December 31, 2009 was $17.5 million which represented a return on average equity of 16.5%. [Read the full article]

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Rates for 30-year home loans edged lower for the second straight week, a report said Thursday, but remained above last year’s record lows.

The average rate on a 30-year fixed rate mortgage was 4.93 percent this week, down from 4.97 percent a week earlier, mortgage finance company Freddie Mac said.

Rates dropped to a record low of 4.71 percent in early December, pushed down by an aggressive government campaign to reduce consumers’ borrowing costs.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.

Mortgage rates have been at or near record lows due to a $1.25 trillion Federal Reserve program to buy up mortgage securities. That program is scheduled to run out at the end of March, but the Fed has held the door open to extending it if the economy weakens. [Read the full article]

Anworth Mortgage Asset Corporation (NYSE: ANH – News) reported today Core Earnings available to common stockholders of $32.3 million, or $0.28 per diluted share, for the quarter ended December 31, 2009, consisting primarily of $33.8 million of net income less $1.5 million of dividends paid to our preferred stockholders. This compares to Core Earnings of $30.2 million, or $0.27 per diluted earnings per share, for the quarter ended September 30, 2009. “Core Earnings” represents a non-GAAP financial measure which we define as GAAP net income excluding any MBS impairment losses or recoveries. For the quarter ended December 31, 2009, there were no MBS impairment losses or recoveries.

Our investments consist primarily of agency mortgage-backed securities, or Agency MBS, which constituted 99.9% of our portfolio at December 31, 2009. [Read the full article]

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