Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Arlington Asset Investment Corp. | |
Entity Central Index Key | 0001209028 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Trading Symbol | AI | |
Entity Common Stock, Shares Outstanding | 36,572,617 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 37,547 | $ 26,713 |
Interest receivable | 14,128 | 13,349 |
Sold securities receivable | 341,798 | |
Derivative assets, at fair value | 15,248 | 438 |
Deposits | 53,446 | 61,052 |
Other assets | 18,636 | 15,768 |
Total assets | 4,673,158 | 4,099,450 |
Liabilities: | ||
Repurchase agreements | 3,964,127 | 3,721,629 |
Interest payable | 5,063 | 4,646 |
Accrued compensation and benefits | 1,420 | 3,732 |
Dividend payable | 14,190 | 11,736 |
Derivative liabilities, at fair value | 2,346 | 6,959 |
Purchased securities payable | 251,144 | |
Other liabilities | 4,297 | 2,200 |
Long-term unsecured debt | 74,160 | 74,104 |
Total liabilities | 4,316,747 | 3,825,006 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Additional paid-in capital | 2,047,398 | 1,997,876 |
Accumulated deficit | (1,728,523) | (1,731,982) |
Total stockholders’ equity | 356,411 | 274,444 |
Total liabilities and stockholders’ equity | 4,673,158 | 4,099,450 |
Agency MBS | ||
ASSETS | ||
Mortgage-backed securities, at fair value | 4,192,327 | 3,982,106 |
Liabilities: | ||
Repurchase agreements | 3,964,127 | 3,721,629 |
Private-Label MBS | ||
ASSETS | ||
Mortgage-backed securities, at fair value | 28 | 24 |
Series B Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | 8,290 | 8,245 |
Series C Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | 28,880 | |
Common Class A | ||
Stockholders’ Equity: | ||
Common stock | $ 366 | $ 305 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 352,630 | 350,595 |
Preferred stock, outstanding (in shares) | 352,630 | 350,595 |
Preferred stock, liquidation preference | $ 8,816 | $ 8,765 |
Series C Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 1,200,000 | 0 |
Preferred stock, outstanding (in shares) | 1,200,000 | 0 |
Preferred stock, liquidation preference | $ 30,000 | $ 0 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 36,572,617 | 30,497,998 |
Common stock, shares outstanding (in shares) | 36,572,617 | 30,497,998 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income | ||
Other | $ 261 | $ 131 |
Total interest income | 33,832 | 30,860 |
Interest expense | ||
Total interest expense | 25,915 | 16,556 |
Net interest income | 7,917 | 14,304 |
Investment advisory fee income | 250 | |
Investment gain (loss), net | ||
Gain (loss) on trading investments, net | 69,168 | (88,343) |
(Loss) gain from derivative instruments, net | (55,205) | 40,154 |
Other, net | (160) | 50 |
Total investment gain (loss), net | 13,803 | (48,139) |
General and administrative expenses | ||
Compensation and benefits | 3,116 | 3,040 |
Other general and administrative expenses | 1,260 | 1,257 |
Total general and administrative expenses | 4,376 | 4,297 |
Income (loss) before income taxes | 17,594 | (38,132) |
Income tax provision | 18,251 | |
Net income (loss) | 17,594 | (56,383) |
Dividend on preferred stock | (278) | (137) |
Net income (loss) available (attributable) to common stock | $ 17,316 | $ (56,520) |
Basic earnings (loss) per common share | $ 0.52 | $ (2) |
Diluted earnings (loss) per common share | $ 0.52 | $ (2) |
Weighted-average common shares outstanding (in thousands) | ||
Basic | 33,053 | 28,197 |
Diluted | 33,139 | 28,197 |
Secured Debt | ||
Interest expense | ||
Short-term debt | $ 24,643 | $ 15,325 |
Unsecured Debt | ||
Interest expense | ||
Long-term debt | 1,272 | 1,231 |
Agency MBS | ||
Interest income | ||
Mortgage-backed securities | 33,570 | 30,725 |
Private-Label MBS | ||
Interest income | ||
Mortgage-backed securities | $ 1 | $ 4 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Class A | Preferred Stock | Preferred StockSeries B Preferred Stock | Preferred StockSeries C Preferred Stock | Common StockCommon Class A | Additional Paid-in Capital | Accumulated Deficit | |
Balances at Dec. 31, 2017 | $ 386,317 | $ 7,108 | $ 281 | $ 1,974,941 | $ (1,596,013) | ||||
Balances (in shares) at Dec. 31, 2017 | 303,291 | 28,140,721 | |||||||
Net Income (loss) | (56,383) | (56,383) | |||||||
Issuance of stock | $ (23) | $ 459 | $ 459 | (23) | |||||
Issuance of stock (in shares) | 19,431 | ||||||||
Cumulative-effect of accounting change (see Note 7) | 4,059 | 4,059 | |||||||
Stock-based compensation | 451 | 451 | |||||||
Dividends declared | [1] | (15,875) | (15,875) | ||||||
Balances at Mar. 31, 2018 | 319,005 | $ 7,567 | $ 281 | 1,975,369 | (1,664,212) | ||||
Balances (in shares) at Mar. 31, 2018 | 322,722 | 28,140,721 | |||||||
Balances at Dec. 31, 2017 | 386,317 | $ 7,108 | $ 281 | 1,974,941 | (1,596,013) | ||||
Balances (in shares) at Dec. 31, 2017 | 303,291 | 28,140,721 | |||||||
Balances at Dec. 31, 2018 | 274,444 | $ 8,245 | $ 305 | 1,997,876 | (1,731,982) | ||||
Balances (in shares) at Dec. 31, 2018 | 350,595 | 30,497,998 | |||||||
Net Income (loss) | 17,594 | 17,594 | |||||||
Issuance of stock | $ 48,810 | $ 28,925 | $ 45 | $ 28,880 | $ 60 | 48,750 | |||
Issuance of stock (in shares) | 2,035 | 1,200,000 | 6,000,000 | ||||||
Issuance of Class A common stock under stock-based compensation plans | $ 1 | (1) | |||||||
Issuance of Class A common stock under stock-based compensation plans (in shares) | 74,619 | ||||||||
Stock-based compensation | 773 | 773 | |||||||
Dividends declared | [1] | (14,135) | (14,135) | ||||||
Balances at Mar. 31, 2019 | $ 356,411 | $ 8,290 | $ 28,880 | $ 366 | $ 2,047,398 | $ (1,728,523) | |||
Balances (in shares) at Mar. 31, 2019 | 352,630 | 1,200,000 | 36,572,617 | ||||||
[1] | The Board of Directors approved and the Company declared and paid dividends of $0.375 and $0.55 per common share for the three months ended March 31, 2019 and 2018, respectively. The Board of Directors approved and the Company declared and paid dividends of $0.4375 per Series B preferred share for the three months ended March 31, 2019 and 2018. For the three months ended March 31, 2019, includes a dividend accrual of $0.103125 per Series C preferred share that has not been declared. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Dividends declared per common share | $ 0.375 | $ 0.55 |
Dividends paid per common share | 0.375 | 0.55 |
Series B Preferred Stock | ||
Dividends declared per preferred share | 0.4375 | 0.4375 |
Dividends paid per preferred share | 0.4375 | $ 0.4375 |
Series C Preferred Stock | ||
Preferred stock divdend accrual | $ 0.103125 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 17,594 | $ (56,383) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Investment (gain) loss, net | (13,803) | 48,139 |
Net premium amortization on mortgage-backed securities | 5,943 | 7,925 |
Deferred tax provision | 18,251 | |
Other | 833 | 511 |
Changes in operating assets | ||
Interest receivable | (779) | (116) |
Other assets | (493) | (399) |
Changes in operating liabilities | ||
Interest payable and other liabilities | 689 | (1,147) |
Accrued compensation and benefits | (2,312) | (3,394) |
Net cash provided by operating activities | 7,672 | 13,387 |
Cash flows from investing activities: | ||
Proceeds from sales of agency mortgage-backed securities | 461,558 | 842,741 |
Receipt of principal payments on agency mortgage-backed securities | 94,067 | 109,323 |
(Payments for) proceeds from derivatives and deposits, net | (67,803) | 34,619 |
Other | 71 | (18) |
Net cash (used in) provided by investing activities | (305,385) | 79,197 |
Cash flows from financing activities: | ||
Proceeds from (repayments of) repurchase agreements, net | 242,498 | (83,823) |
Proceeds from (payments for) issuance of common stock | 48,810 | (23) |
Proceeds from issuance of preferred stock | 28,925 | 459 |
Dividends paid | (11,686) | (15,592) |
Net cash provided by (used in) financing activities | 308,547 | (98,979) |
Net increase (decrease) in cash and cash equivalents | 10,834 | (6,395) |
Cash and cash equivalents, beginning of period | 26,713 | 21,614 |
Cash and cash equivalents, end of period | 37,547 | 15,219 |
Supplemental cash flow information: | ||
Cash payments for interest | 25,442 | 17,434 |
Agency MBS | ||
Cash flows from investing activities: | ||
Purchases of mortgage-backed securities | $ (793,278) | $ (907,468) |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation Arlington Asset Investment Corp. (“Arlington Asset”) and its consolidated subsidiaries (unless the context otherwise provides, collectively, the “Company”) is an investment firm that focuses on acquiring and holding a levered portfolio of residential mortgage-backed securities (“MBS”), consisting of “agency MBS” and “private-label MBS.” Agency MBS include residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by either a U.S. government sponsored enterprise (“GSE”), such as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or by a U.S. government agency, such as the Government National Mortgage Association (“Ginnie Mae”). Private-label MBS, or “non-agency MBS,” include residential MBS that are not guaranteed by a GSE or the U.S. government. Arlington Asset is a Virginia corporation that is internally managed. For the Company’s tax years ended December 31, 2018 and earlier, the Company was taxed as a C corporation for U.S. federal tax purposes. Commencing with its taxable year ending December 31, 2019, the Company intends to elect to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). As a REIT the Company will be required to distribute annually 90% of its REIT taxable income (subject to certain adjustments). So long as the Company continues to qualify as a REIT, it will generally not be subject to U.S. Federal or state corporate income taxes on its taxable income that it distributes to its shareholders on a timely basis. At present, it is the Company’s intention to distribute 100% of its taxable income, although the Company will not be required to do so. The Company intends to make distributions of its taxable income within the time limits prescribed by the Internal Revenue Code, which may extend into the subsequent taxable year The unaudited interim consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X. The Company’s unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Company’s consolidated financial statements include the accounts of Arlington Asset and all other entities in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Although the Company bases these estimates and assumptions on historical experience and all other reasonably available information that the Company believes to be relevant under the circumstances, such estimates frequently require management to exercise significant subjective judgment about matters that are inherently uncertain. Actual results may differ from these estimates materially. Certain amounts in the consolidated financial statements and notes for prior periods have been reclassified to conform to the current year’s presentation. These reclassifications had no impact on the previously reported net income, total assets or total liabilities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Cash Equivalents Cash equivalents include demand deposits with banks, money market accounts and highly liquid investments with original maturities of three months or less. As of March 31, 2019 and December 31, 2018, approximately 99% of the Company’s cash equivalents were invested in money market funds that invest primarily in U.S. Treasuries and other securities backed by the U.S. government. Investment Security Purchases and Sales Purchases and sales of investment securities are recorded on the settlement date of the transfer unless the trade qualifies as a “regular-way” trade and the associated commitment qualifies for an exemption from the accounting guidance applicable to derivative instruments. A regular-way trade is an investment security purchase or sale transaction that is expected to settle within the period of time following the trade date that is prevalent or traditional for that specific type of security. Any amounts payable or receivable for unsettled security trades are recorded as “sold securities receivable” or “purchased securities payable” in the consolidated balance sheets. Interest Income Recognition for Investments in Agency MBS The Company recognizes interest income for its investments in agency MBS by applying the “interest method” permitted by GAAP, whereby purchase premiums and discounts are amortized and accreted, respectively, as an adjustment to contractual interest income accrued at each security’s stated coupon rate. The interest method is applied at the individual security level based upon each security’s effective interest rate. The Company calculates each security’s effective interest rate at the time of purchase by solving for the discount rate that equates the present value of that security's remaining contractual cash flows (assuming no principal prepayments) to its purchase price. Because each security’s effective interest rate does not reflect an estimate of future prepayments, the Company refers to this manner of applying the interest method as the “contractual effective interest method.” When applying the contractual effective interest method to its investments in agency MBS, as principal prepayments occur, a proportional amount of the unamortized premium or discount is recognized in interest income such that the contractual effective interest rate on the remaining security balance is unaffected. Other Significant Accounting Policies Certain of the Company’s other significant accounting policies are summarized in the following notes: Investments in agency MBS, subsequent measurement Note 3 Borrowings Note 4 To-be-announced agency MBS transactions, including “dollar rolls” Note 5 Derivative instruments Note 5 Balance sheet offsetting Note 6 Fair value measurements Note 7 Refer to the Company’s 2018 Annual Report on Form 10-K for a complete inventory and summary of the Company’s significant accounting policies. Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting pronouncements and their actual or expected effect on the Company’s consolidated financial statements: Standard Description Date of Adoption Effect on the Consolidated Financial Statements Recently Adopted Accounting Guidance Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) This amendment replaces the existing lease accounting model with a revised model. The primary change effectuated by the revised lease accounting model is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. January 1, 2019 The primary impact of the adoption of ASU No. 2016-02 was the recognition of lease liabilities and associated right-of-use assets, as a component of “Other liabilities” and “Other assets,” respectively, on the Company’s consolidated balance sheets as of March 31, 2019. The adoption of ASU No. 2016-02 did not have an effect on the timing or amount of periodic lease expense recognized in net income. The adoption of ASU No. 2016-02 did not have a material effect on the Company’s consolidated financial statements. ASU No. 2017-08, Premium Amortization of Purchased Callable Debt Securities (Subtopic 310-20) This amendment requires purchase premiums for investments in debt securities that are noncontingently callable by the issuer (at a fixed price and preset date) to be amortized to the earliest call date. Previously, purchase premiums for such investments were permitted to be amortized to the instrument’s maturity date. January 1, 2019 Investments in prepayable financial assets, such as residential MBS, for which the embedded call options are not held by the issuer are not within the scope of ASU No. 2017-08. Accordingly, the adoption of ASU No. 2017-08 did not have an effect on the Company’s consolidated financial statements. ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) This update made several targeted amendments to existing GAAP with the objectives of facilitating (i) financial reporting that more closely reflects entities’ risk management strategies and (ii) greater ease of understanding and interpreting the effects of hedge accounting on an entities’ reported results. January 1, 2019 Hedge accounting pursuant to GAAP is an elective, rather than a required, accounting model. The Company does not elect to apply hedge accounting. The adoption of ASU No. 2017-12 did have an effect on the Company’s consolidated financial statements. Recently Issued Accounting Guidance Not Yet Adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 606) The amendments in this update require financial assets measured at amortized cost as well as available-for-sale debt securities to be measured for impairment on the basis of the net amount expected to be collected. Credit losses are to be recognized through an allowance for credit losses, which differs from the direct write-down of the amortized cost basis currently required for other-than-temporary impairments of investments in debt securities. This update also makes substantial changes to the manner in which interest income is to be recognized for financial assets acquired with a more-than-insignificant amount of credit deterioration since origination. This update will not affect the accounting for investments in debt securities that are classified as trading securities. January 1, 2020 As of March 31, 2019, all of the Company’s investments in debt securities are classified as trading securities. Accordingly, the Company does not expect ASU No. 2016-13 to have a material impact on its consolidated financial statements. |
Investments in Agency MBS
Investments in Agency MBS | 3 Months Ended |
Mar. 31, 2019 | |
Agency MBS | |
Investments in MBS | Note 3. Investments in Agency MBS The Company’s investments in agency MBS are reported in the accompanying consolidated balance sheets at fair value. As of March 31, 2019 and December 31, 2018, the Company had $4,192,327 and $3,982,106, respectively, of fair value in agency MBS classified as trading securities. As of March 31, 2019, all the Company’s investments in agency MBS represent undivided (or “pass-through”) beneficial interests in specified pools of fixed-rate mortgage loans. All periodic changes in the fair value of trading agency MBS that are not attributed to interest income are recognized as a component of “investment gain (loss), net” in the accompanying consolidated statements of comprehensive income. The following table provides additional information about the gains and losses recognized as a component of “investment gain (loss), net” in the Company’s consolidated statements of comprehensive income for the periods indicated with respect to investments in agency MBS classified as trading securities: Three Months Ended March 31, 2019 2018 Net gains (losses) recognized in earnings for: Agency MBS still held at period end $ 62,109 $ (61,825 ) Agency MBS sold during the period 7,056 (26,520 ) Total $ 69,165 $ (88,345 ) The Company also invests in and finances fixed-rate agency MBS on a generic pool basis through sequential series of to-be-announced security transactions commonly referred to as “dollar rolls.” Dollar rolls are accounted for as a sequential series of derivative instruments. Refer to “Note 5. Derivative Instruments” for further information about dollar rolls. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 4. Borrowings Repurchase Agreements The Company finances the purchase of MBS through repurchase agreements, which are accounted for as collateralized borrowing arrangements. In a repurchase transaction, the Company sells MBS to a counterparty under a master repurchase agreement in exchange for cash and concurrently agrees to repurchase the same security at a future date in an amount equal to the cash initially exchanged plus an agreed-upon amount of interest. MBS sold under agreements to repurchase remain on the Company’s consolidated balance sheets because the Company maintains effective control over such securities throughout the duration of the arrangement. Throughout the contractual term of a repurchase agreement, the Company recognizes a “repurchase agreement” liability on its consolidated balance sheets to reflect the obligation to repay to the counterparty the proceeds received upon the initial transfer of the MBS. The difference between the proceeds received by the Company upon the initial transfer of the MBS and the contractually agreed-upon repurchase price is recognized as interest expense ratably over the term of the repurchase arrangement. Amounts borrowed pursuant to repurchase agreements are equal in value to a specified percentage of the fair value of the pledged collateral. The Company retains beneficial ownership of the pledged collateral throughout the term of the repurchase agreement. The counterparty to the repurchase agreements may require that the Company pledge additional securities or cash as additional collateral to secure borrowings when the value of the collateral declines. As of March 31, 2019 and December 31, 2018, the Company had no amount at risk with a single repurchase agreement counterparty or lender greater than 10% of equity. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings as of the dates indicated: March 31, 2019 December 31, 2018 Pledged with agency MBS: Repurchase agreements outstanding $ 3,964,127 $ 3,721,629 Agency MBS collateral, at fair value (1) 4,197,580 3,931,232 Net amount (2) 233,453 209,603 Weighted-average rate 2.73 % 2.72 % Weighted-average term to maturity 20.9 days 17.3 days (1) As of March 31, 2019, includes $323,156 at sale price of unsettled agency MBS sale commitments which is included in the line item “sold securities receivable” in the accompanying consolidated balance sheets. ( 2 ) Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings during the three months ended March 31, 2019 and 2018: March 31, 2019 March 31, 2018 Weighted-average outstanding balance during the three months ended $ 3,680,429 $ 3,730,619 Weighted-average rate during the three months ended 2.68 % 1.64 % Long-Term Unsecured Debt As of March 31, 2019 and December 31, 2018, the Company had $74,160 and $74,104, respectively, of outstanding long-term unsecured debentures, net of unamortized debt issuance costs of $1,140 and $1,196, respectively. The Company’s long-term debentures consisted of the following as of the dates indicated: March 31, 2019 December 31, 2018 Senior Notes Due 2025 Senior Notes Due 2023 Trust Preferred Debt Senior Notes Due 2025 Senior Notes Due 2023 Trust Preferred Debt Outstanding Principal $ 35,300 $ 25,000 $ 15,000 $ 35,300 $ 25,000 $ 15,000 Annual Interest Rate 6.75 % 6.625 % LIBOR+ 2.25 - 3.00 % 6.75 % 6.625 % LIBOR+ 2.25 - 3.00 % Interest Payment Frequency Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Weighted-Average Interest Rate 6.75 % 6.625 % 5.54 % 6.75 % 6.625 % 5.19 % Maturity March 15, 2025 May 1, 2023 2033 - 2035 March 15, 2025 May 1, 2023 2033 - 2035 Early Redemption Date March 15, 2018 May 1, 2016 2008 - 2010 March 15, 2018 May 1, 2016 2008 - 2010 The Senior Notes due 2023 and the Senior Notes due 2025 are publicly traded on the New York Stock Exchange under the ticker symbols “AIW” and “AIC,” respectively. The Senior Notes due 2023 and Senior Notes due 2025 may be redeemed in whole or in part at any time and from time to time at the Company’s option at a redemption price equal to the principal amount plus accrued and unpaid interest. The indenture governing these Senior Notes contains certain covenants, including limitations on the Company’s ability to merge or consolidate with other entities or sell or otherwise dispose of all or substantially all of the Company’s assets. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 5. Derivative Instruments In the normal course of its operations, the Company is a party to financial instruments that are accounted for as derivative instruments. Derivative instruments are recorded at fair value as either “derivative assets” or “derivative liabilities” in the consolidated balance sheets, with all periodic changes in fair value reflected as a component of “investment gain (loss), net” in the consolidated statements of comprehensive income. Cash receipts or payments related to derivative instruments are classified as investing activities within the consolidated statements of cash flows. Types and Uses of Derivative Instruments Interest Rate Hedging Instruments The Company is party to interest rate hedging instruments that are intended to economically hedge changes, attributable to changes in benchmark interest rates, in certain MBS fair values and future interest cash flows on the Company’s short-term financing arrangements. Interest rate hedging instruments include centrally cleared interest rate swaps, exchange-traded instruments, such as U.S. Treasury note futures, Eurodollar futures, interest rate swap futures and options on futures, and non-exchange-traded instruments such as options on agency MBS. While the Company uses its interest rate hedging instruments to economically hedge a portion of its interest rate risk, it has not designated such contracts as hedging instruments for financial reporting purposes. The Company exchanges cash “variation margin” with the counterparties to its interest rate hedging instruments at least on a daily basis based upon daily changes in fair value as measured by the Chicago Mercantile Exchange (“CME”), the central clearinghouse through which those instruments are cleared. In addition, the CME requires market participants to deposit and maintain an “initial margin” amount which is determined by the CME and is generally intended to be set at a level sufficient to protect the CME from the maximum estimated single-day price movement in that market participant’s contracts . However, futures commission merchants may require “initial margin” in excess of the CME’s requirement Receivables recognized for the right to reclaim cash initial margin posted in respect of interest rate hedging instruments are included in the line item “deposits” in the accompanying consolidated balance sheets. The daily exchange of variation margin associated with a centrally cleared or exchange-traded hedging instrument is legally characterized as the daily settlement of the instrument itself, as opposed to a pledge of collateral. Accordingly, the Company accounts for the daily receipt or payment of variation margin associated with its interest rate swaps and futures as a direct reduction to the carrying value of the derivative asset or liability, respectively. The carrying amount of interest rate swaps and futures reflected in the Company’s consolidated balance sheets is equal to the unsettled fair value of such instruments; because variation margin is exchanged on a one-day lag, the unsettled fair value of such instruments generally represents the change in fair value that occurred on the last day of the reporting period. To-Be-Announced Agency MBS Transactions, Including “Dollar Rolls” In addition to interest rate derivatives that are used for interest rate risk management, the Company is a party to derivative instruments that economically serve as investments, such as forward commitments to purchase fixed-rate “pass-through” agency MBS on a non-specified pool basis, which are known as to-be-announced (“TBA”) securities. A TBA security is a forward commitment for the purchase or sale of a fixed-rate agency MBS at a predetermined price, face amount, issuer, coupon, and stated maturity for settlement on an agreed upon future date. The specific agency MBS that will be delivered to satisfy the TBA trade is not known at the inception of the trade. The specific agency MBS to be delivered is determined 48 hours prior to the settlement date. The Company accounts for TBA securities as derivative instruments because the Company cannot assert that it is probable at inception and throughout the term of an individual TBA commitment that its settlement will result in physical delivery of the underlying agency MBS, or the individual TBA commitment will not settle in the shortest time period possible. The Company’s agency MBS investment portfolio includes net purchase (or “net long”) positions in TBA securities, which are primarily the result of executing sequential series of “dollar roll” transactions. The Company executes dollar roll transactions as a means of investing in and financing non-specified fixed-rate agency MBS. Such transactions involve effectively delaying (or “rolling”) the settlement of a forward purchase of a TBA agency MBS by entering into an offsetting sale with the same counterparty prior to the settlement date, net settling the “paired-off” positions in cash, and contemporaneously entering, with the same counterparty, another forward purchase of a TBA agency MBS of the same characteristics for a later settlement date. TBA securities purchased for a forward settlement month are generally priced at a discount relative to TBA securities sold for settlement in the current month. This discount, often referred to as the dollar roll “price drop,” reflects compensation for the net interest income (interest income less financing costs) that is foregone as a result of relinquishing beneficial ownership of the MBS for the duration of the dollar roll (also known as “dollar roll income”). By executing a sequential series of dollar roll transactions, the Company is able to create the economic experience of investing in an agency MBS, financed with a repurchase agreement, over a period of time. Forward purchases and sales of TBA securities are accounted for as derivative instruments in the Company’s financial statements. Accordingly, dollar roll income is recognized as a component of “investment gain (loss), net” along with all other periodic changes in the fair value of TBA commitments. In addition to transacting in net long positions in TBA securities for investment purposes, the Company may also, from time to time, transact in net sale (or “net short”) positions in TBA securities for the purpose of economically hedging a portion of the sensitivity of the fair value of the Company’s investments in agency MBS to changes in interest rates. Under the terms of these forward commitments, the daily exchange of variation margin may occur based on changes in the fair value of the agency MBS commitments if a party to the transaction demands it. Receivables recognized for the right to reclaim cash collateral posted by the Company in respect of TBA transactions is included in the line item “deposits” in the accompanying consolidated balance sheets. Liabilities recognized for the obligation to return cash collateral received by the Company in respect of TBA transactions is included in the line item “other liabilities” in the accompanying consolidated balance sheets. In addition to TBA transactions, the Company may, from time to time, enter into commitments to purchase or sell specified agency MBS that do not qualify as regular-way security trades. Such commitments are also accounted for as derivative instruments. Derivative Instrument Population and Fair Value The following table presents the fair value of the Company’s derivative instruments as of the dates indicated: March 31, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Interest rate swaps $ 5,143 $ — $ — $ (5,709 ) 10-year U.S. Treasury note futures 605 — — (1,250 ) TBA commitments 9,500 (2,346 ) 438 — Total $ 15,248 $ (2,346 ) $ 438 $ (6,959 ) Interest Rate Swaps The Company’s interest rate swap agreements represent agreements to make semiannual interest payments based upon a fixed interest rate and receive quarterly variable interest payments based upon the prevailing three-month LIBOR on the date of reset. The following table presents information about the Company’s interest rate swap agreements that were in effect as of March 31, 2019: Weighted-average: Notional Amount Fixed Pay Rate Variable Receive Rate Net Receive (Pay) Rate Remaining Life (Years) Fair Value Years to maturity: Less than 3 years $ 1,175,000 1.59 % 2.70 % 1.11 % 1.4 $ 714 3 to less than 7 years 100,000 1.77 % 2.63 % 0.86 % 3.4 181 7 to less than 10 years 1,550,000 2.51 % 2.64 % 0.13 % 8.7 4,142 10 or more years 25,000 2.96 % 2.63 % (0.33 )% 29.0 106 Total / weighted-average $ 2,850,000 2.11 % 2.66 % 0.55 % 5.7 $ 5,143 The following table presents information about the Company’s interest rate swap agreements that were in effect as of December 31, 2018: Weighted-average: Notional Amount Fixed Pay Rate Variable Receive Rate Net Receive (Pay) Rate Remaining Life (Years) Fair Value Years to maturity: Less than 3 years $ 1,050,000 1.53 % 2.60 % 1.07 % 1.5 $ (152 ) 3 to less than 7 years 325,000 2.00 % 2.73 % 0.73 % 4.4 (432 ) 7 to less than 10 years 1,600,000 2.35 % 2.70 % 0.35 % 8.5 (4,572 ) 10 or more years 125,000 3.02 % 2.66 % (0.36 )% 29.6 (553 ) Total / weighted-average $ 3,100,000 2.07 % 2.67 % 0.60 % 6.6 $ (5,709 ) U.S. Treasury Note Futures The Company’s 10-year U.S. Treasury note futures held as of March 31, 2019 are short positions with an aggregate notional amount of $215,000 that mature in June 2019. Upon the maturity date of these futures contracts, the Company has the option to either net settle each contract in cash in an amount equal to the difference between the then-current fair value of the underlying 10-year U.S. Treasury note and the contractual sale price inherent to the futures contract, or to physically settle the contract by delivering the underlying 10-year U.S. Treasury note TBA Commitments The following tables present information about the Company’s TBA commitments as of the dates indicated: March 31, 2019 Notional Amount: Net Purchase (Sale) Commitment Contractual Forward Price Market Price Fair Value Dollar roll positions: 3.5% 30-year MBS purchase commitments $ 25,000 $ 25,094 $ 25,348 $ 254 3.5% 30-year MBS sale commitments (25,000 ) (25,332 ) (25,348 ) (16 ) 4.0% 30-year MBS purchase commitments 1,450,000 1,482,877 1,491,844 8,967 4.0% 30-year MBS sale commitments (550,000 ) (563,996 ) (566,047 ) (2,051 ) Total TBA commitments, net $ 900,000 $ 918,643 $ 925,797 $ 7,154 December 31, 2018 Notional Amount: Net Purchase (Sale) Commitment Contractual Forward Price Market Price Fair Value Dollar roll positions: 5.0% 30-year MBS purchase commitments $ 100,000 $ 103,750 $ 104,047 $ 297 5.0% 30-year MBS sale commitments (100,000 ) (104,188 ) (104,047 ) 141 Total TBA commitments, net $ — $ (438 ) $ — $ 438 Derivative Instrument Gains and Losses The following tables provide information about the derivative gains and losses recognized within the periods indicated: Three Months Ended March 31, 2019 2018 Interest rate derivatives: Interest rate swaps: Net interest income (expense) (1) $ 4,747 $ (816 ) Unrealized (losses) gains, net (63,491 ) 50,857 Gains realized upon early termination, net 1,178 10,169 Total interest rate swap (losses) gains, net (57,566 ) 60,210 U.S. Treasury note futures, net (6,704 ) 12,320 Total interest rate derivative (losses) gains, net (64,270 ) 72,530 TBA and specified agency MBS commitments: TBA dollar roll income (2) 1,420 6,643 Other gains (losses) on agency MBS commitments, net 7,645 (39,019 ) Total gains (losses) on agency MBS commitments, net 9,065 (32,376 ) Total derivative (losses) gains, net $ (55,205 ) $ 40,154 (1) Represents the periodic net interest settlement incurred during the period (often referred to as “net interest carry”). Also includes “price alignment interest” income earned or expense incurred on cumulative variation margin paid or received, respectively, associated with centrally cleared interest rate swap agreements. (2) Represents the price discount of forward-settling TBA purchases relative to a contemporaneously executed “spot” TBA sale, which economically equates to net interest income that is earned ratably over the period beginning on the settlement date of the sale and ending on the settlement date of the forward-settling purchase. Derivative Instrument Activity The following tables summarize the volume of activity, in terms of notional amount, related to derivative instruments for the periods indicated: For the Three Months Ended March 31, 2019 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,100,000 $ 400,000 $ — $ (650,000 ) $ 2,850,000 10-year U.S. Treasury note futures 320,000 440,000 (390,000 ) (155,000 ) 215,000 Commitments to purchase (sell) MBS, net — 2,150,000 (1,250,000 ) — 900,000 For the Three Months Ended March 31, 2018 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,600,000 $ 250,000 $ — $ (325,000 ) $ 3,525,000 5-year U.S. Treasury note futures 21,600 — (21,600 ) — — 10-year U.S. Treasury note futures 650,000 950,000 (750,000 ) — 850,000 Commitments to purchase (sell) MBS, net 1,265,000 4,255,000 (4,105,000 ) — 1,415,000 Cash Collateral Posted and Received for Derivative and Other Financial Instruments The following table presents information about the cash collateral posted and received by the Company in respect of its derivative and other financial instruments, which is included in the line item “deposits, net” in the accompanying consolidated balance sheets, for the dates indicated: March 31, 2019 December 31, 2018 Cash collateral posted for: Interest rate swaps (cash initial margin) $ 50,741 $ 54,883 U.S. Treasury note futures (cash initial margin) 2,473 6,169 Unsettled MBS trades and TBA commitments, net 232 — Total cash collateral posted, net $ 53,446 $ 61,052 As of December 31, 2018, the Company had received $438 of cash collateral in respect of its forward-settling TBA commitments. The Company recognized a corresponding obligation to return this cash collateral to its counterparties, which is included in the line item “other liabilities” in the accompanying consolidated balance sheets. |
Offsetting of Financial Assets
Offsetting of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting of Financial Assets and Liabilities | Note 6. Offsetting of Financial Assets and Liabilities The agreements that govern certain of the Company’s derivative instruments and collateralized short-term financing arrangements provide for a right of setoff in the event of default or bankruptcy with respect to either party to such transactions. The Company presents derivative assets and liabilities as well as collateralized short-term financing arrangements on a gross basis. Receivables recognized for the right to reclaim cash initial margin posted in respect of interest rate derivative instruments are included in the line item “deposits” in the accompanying consolidated balance sheets. The daily exchange of variation margin associated with a centrally cleared or exchange-traded derivative instrument is legally characterized as the daily settlement of the derivative instrument itself, as opposed to a pledge of collateral. Accordingly, the Company accounts for the daily receipt or payment of variation margin associated with its interest rate swaps and futures as a direct reduction to the carrying value of the interest rate swap derivative asset or liability, respectively. The carrying amount of interest rate swaps and futures reflected in the Company’s consolidated balance sheets is equal to the unsettled fair value of such instruments; because variation margin is exchanged on a one-day lag, the unsettled fair value of such instruments generally represents the change in fair value that occurred on the last day of the reporting period. The following tables present information, as of the dates indicated, about the Company’s derivative instruments, short-term borrowing arrangements, and associated collateral, including those subject to master netting (or similar) arrangements: As of March 31, 2019 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral (2) Assets: Derivative instruments: Interest rate swaps $ 5,143 $ — $ 5,143 $ — $ — $ 5,143 10-year U.S. Treasury note futures 605 — 605 — — 605 TBA commitments 9,500 — 9,500 (2,315 ) — 7,185 Total derivative instruments 15,248 — 15,248 (2,315 ) — 12,933 Total assets $ 15,248 $ — $ 15,248 $ (2,315 ) $ — $ 12,933 Liabilities: Derivative instruments: TBA commitments $ 2,346 $ — $ 2,346 $ (2,315 ) $ — $ 31 Total derivative instruments 2,346 — 2,346 (2,315 ) — 31 Repurchase agreements 3,964,127 — 3,964,127 (3,964,127 ) — — Total liabilities $ 3,966,473 $ — $ 3,966,473 $ (3,966,442 ) $ — $ 31 As of December 31, 2018 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral (2) Assets: Derivative instruments: TBA commitments $ 438 $ — $ 438 $ — $ (438 ) $ — Total derivative instruments 438 — 438 — (438 ) — Total assets $ 438 $ — $ 438 $ — $ (438 ) $ — Liabilities: Derivative instruments: Interest rate swaps $ 5,709 $ — $ 5,709 $ — $ (5,709 ) $ — 10-year U.S. Treasury note futures 1,250 — 1,250 — (1,250 ) — Total derivative instruments 6,959 — 6,959 — (6,959 ) — Repurchase agreements 3,721,629 — 3,721,629 (3,721,629 ) — — Total liabilities $ 3,728,588 $ — $ 3,728,588 $ (3,721,629 ) $ (6,959 ) $ — (1) Does not include the fair value amount of financial instrument collateral pledged in respect of repurchase agreements that exceeds the associated liability presented in the consolidated balance sheets. (2) Does not include the amount of cash collateral pledged in respect of derivative instruments that exceeds the associated derivative liability presented in the consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7. Fair Value Measurements Fair Value of Financial Instruments The accounting principles related to fair value measurements define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company at the measurement date; Level 2 Inputs - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 Inputs - Unobservable inputs for the asset or liability, including significant judgments made by the Company about the assumptions that a market participant would use. The Company measures the fair value of the following assets and liabilities: Mortgage-backed securities Agency MBS - The Company’s investments in agency MBS are classified within Level 2 of the fair value hierarchy. Inputs to fair value measurements of the Company’s investments in agency MBS include price estimates obtained from third-party pricing services. In determining fair value, third-party pricing services use a market approach. The inputs used in the fair value measurements performed by the third-party pricing services are based upon readily observable transactions for securities with similar characteristics (such as issuer/guarantor, coupon rate, stated maturity, and collateral pool characteristics) occurring on the measurement date. The Company makes inquiries of the third-party pricing sources to understand the significant inputs and assumptions used to determine prices. The Company reviews the various third-party fair value estimates and performs procedures to validate their reasonableness, including comparison to recent trading activity for similar securities and an overall review for consistency with market conditions observed as of the measurement date. Derivative instruments Exchange-traded derivative instruments - Exchange-traded derivative instruments, which include U.S. Treasury note futures, Eurodollar futures, interest rate swap futures, and options on futures, are classified within Level 1 of the fair value hierarchy as they are measured using quoted prices for identical instruments in liquid markets. Interest rate swaps - Interest rate swaps are classified within Level 2 of the fair value hierarchy. The fair values of the Company’s centrally cleared interest rate swaps are measured using the daily valuations reported by the clearinghouse through which the instrument was cleared. In performing its end-of-day valuations, the clearinghouse constructs forward interest rate curves (for example, three-month LIBOR forward rates) from its specific observations of that day’s trading activity. The clearinghouse uses the applicable forward interest rate curve to develop a market-based forecast of future remaining contractually required cash flows for each interest rate swap. Each market-based cash flow forecast is then discounted using the overnight index swap rate curve (sourced from the Federal Reserve Bank of New York) to determine a net present value amount which represents the instrument’s fair value. Forward-settling purchases and sales of TBA securities – Forward-settling purchases and sales of TBA securities are classified within Level 2 of the fair value hierarchy. The fair value of each forward-settling TBA contract is measured using price estimates obtained from a third-party pricing service, which are based upon readily observable transaction prices occurring on the measurement date for forward-settling contracts to buy or sell TBA securities with the same guarantor, contractual maturity, and coupon rate for delivery on the same forward settlement date as the contract under measurement. Other Long-term unsecured debt - As of March 31, 2019 and December 31, 2018, the carrying value of the Company’s long-term unsecured debt was $74,160 and $74,104, respectively, net of unamortized debt issuance costs, and consists of Senior Notes and trust preferred debt issued by the Company. The Company’s estimate of the fair value of long-term unsecured debt is $69,370 and $66,562 as of March 31, 2019 and December 31, 2018, respectively. The Company’s Senior Notes, which are publicly traded on the New York Stock Exchange, are classified within Level 1 of the fair value hierarchy. Trust preferred debt is classified within Level 2 of the fair value hierarchy as the fair value is estimated based on the quoted prices of the Company’s publicly traded Senior Notes. Investments in equity securities of non-public companies and investment funds – As of March 31, 2019 and December 31, 2018, the Company had investment in equity securities and investment funds measured at fair value of $5,876 and $6,115, respectively, which is included in the line item “other assets” in the accompanying consolidated balance sheets. ASU No. 2016-01, , effective January 1, 2018, requires entities to measure investments in equity securities at fair value, unless fair value measurement is impractical, with changes in fair value recognized in current period earnings. Upon the adoption of ASU No. 2016-01, the Company recognized a cumulative-effect increase of $4,059 (net of taxes) in stockholders’ equity representing, as of January 1, 2018, the excess of fair value over historical cost of its investments in equity securities that were previously carried at their historical cost (net of impairments). Investments in equity securities and investment funds are classified within Level 3 of the fair value hierarchy. The fair values of the Company’s investments in equity securities and investment funds are not readily determinable. Accordingly, for its investments in equity securities, the Company estimates fair value by estimating the enterprise value of the investee which it then allocates to the investee’s securities in the order of their preference relative to one another. To estimate the enterprise value of the investee, the Company uses traditional valuation methodologies based on income and market approaches, including the consideration of recent investments in, or tender offers for, the equity securities of the investee, a discounted cash flow analysis and a comparable guideline public company valuation. The primary unobservable inputs used in estimating the fair value of an equity security of a non-public company include (i) a stock price to net asset multiple for similar public companies that is applied to the entity’s net assets, (ii) a discount factor for lack of marketability and control, and (iii) a cost of equity discount rate, used to discount to present value the equity cash flows available for distribution and the terminal value of the entity. As of March 31, 2019 and December 31, 2018, the stock price to net asset multiple for similar public companies, the discount factor for lack of marketability and control, and the cost of equity discount rate used as inputs were 91 percent, 8 percent, and 12 percent, respectively. For its investments in investment funds, the Company estimates fair value based upon the investee’s net asset value per share. Financial assets and liabilities for which carrying value approximates fair value - Cash and cash equivalents, deposits, receivables, repurchase agreements, payables, and other assets and liabilities are generally reflected in the consolidated balance sheets at their cost, which, due to the short-term nature of these instruments and their limited inherent credit risk, approximates fair value. Fair Value Hierarchy Financial Instruments Measured at Fair Value on a Recurring Basis The following tables set forth financial instruments measured at fair value by level within the fair value hierarchy as of March 31, 2019 and December 31, 2018. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. March 31, 2019 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 4,192,327 $ — $ 4,192,327 $ — Private-label MBS 28 — — 28 Total MBS 4,192,355 — 4,192,327 28 Derivative assets 15,248 605 14,643 — Derivative liabilities (2,346 ) — (2,346 ) — Other assets 5,876 — — 5,876 Total $ 4,211,133 $ 605 $ 4,204,624 $ 5,904 December 31, 2018 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 3,982,106 $ — $ 3,982,106 $ — Private-label MBS 24 — — 24 Total MBS 3,982,130 — 3,982,106 24 Derivative assets 438 — 438 — Derivative liabilities (6,959 ) (1,250 ) (5,709 ) — Other assets 6,115 — — 6,115 Total $ 3,981,724 $ (1,250 ) $ 3,976,835 $ 6,139 Level 3 Financial Assets and Liabilities The table below sets forth an attribution of the change in the fair value of the Company’s Level 3 investments that are measured at fair value on a recurring basis for the periods indicated: Three Months Ended March 31, 2019 2018 Beginning balance $ 6,139 $ 515 Investments in equity securities measured at fair value beginning January 1, 2018 — 5,362 Included in investment gain (loss), net (156 ) 52 Purchases — — Sales — — Payments, net (80 ) (7 ) Accretion of discount 1 4 Ending balance $ 5,904 $ 5,926 Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date $ (156 ) $ 52 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes For its tax years ended December 31, 2018 and earlier, Arlington Asset was subject to taxation as a corporation under Subchapter C of the Internal Revenue Code. On December 27, 2018, the Company’s Board of Directors approved a plan for Arlington Asset to elect to be taxed and to operate in a manner that will allow it to qualify as a REIT under the Internal Revenue Code commencing with its taxable year ending December 31, 2019. As a REIT, the Company will be required to distribute annually 90% of its REIT taxable income. So long as the Company continues to qualify as a REIT, it will generally not be subject to U.S. Federal or state corporate income taxes on its taxable income to the extent that it distributes all of its annual taxable income to its shareholders on a timely basis. At present, it is the Company’s intention to distribute 100% of its taxable income, although the Company will not be required to do so. The Company intends to make distributions of its taxable income within the time limits prescribed by the Internal Revenue Code, which may extend into the subsequent taxable year. As of March 31, 2019, the Company had estimated net operating loss (“NOL”) carryforwards of $14,543 that can be used to offset future taxable ordinary income. The Company’s NOL carryforwards begin to expire in 2028. As of March 31, 2019, the Company had estimated net capital loss (“NCL”) carryforwards of $433,286 that can be used to offset future net capital gains. The scheduled expirations of the Company’s NCL carryforwards are $136,840 in 2019, $102,927 in 2020, $70,319 in 2021, $3,763 in 2022, $110,317 in 2023 and $9,120 in 2024. If the Company were to use its NOL carryforwards to offset taxable ordinary income and/or use its NCL carryforwards to offset net capital gains, the Company’s required income distribution as a REIT would be reduced accordingly. Through December 31, 2017, the Company was subject to federal alternative minimum tax (“AMT”) on its taxable income and gains that are not offset by its NOL and NCL carryforwards with any AMT credit carryforwards available to offset future regular tax liabilities. As part of the Tax Cuts and Jobs Act, the corporate AMT was repealed for tax years beginning after December 31, 2017 with any AMT credit carryforward after that date continuing to be available to offset a taxpayer’s future regular tax liability. In addition, for tax years beginning in 2018, 2019 and 2020, to the extent that AMT credit carryforwards exceed the regular tax liability, 50% of the excess AMT credit carryforwards would be refundable in that year with any remaining AMT credit carryforwards fully refundable in 2021. As a result, the realizability of the Company’s AMT credit carryforward is certain and will be realized as either a cash refund or as an offset to future regular tax liabilities or a combination of both. As of March 31, 2019 and December 31, 2018, the Company had an AMT credit carryforward of $9,132 included as a receivable in “other assets” on the accompanying consolidated balance sheets. The Company recognizes uncertain tax positions in the financial statements only when it is more-likely-than-not that the position will be sustained upon examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more-likely-than-not be realized upon settlement. A liability is established for differences between positions taken in a tax return and the financial statements. As of March 31, 2019 and December 31, 2018, the Company assessed the need for recording a provision for any uncertain tax position and has made the determination that such provision is not necessary. On May 30, 2018, the Company received an assessment of $9,380 from Arlington County, Virginia for a business, professional and occupation license (“BPOL”) tax for calendar year 2017. The BPOL tax is a local privilege tax on a business’ gross receipts for conducting business activities subject to licensure within Arlington County. The Company has not been assessed or paid any such BPOL tax prior to calendar year 2017. The Company does not believe it is subject to the BPOL tax. During the second quarter of 2018, the Company filed an administrative appeal with Arlington County. During the third quarter of 2018, Arlington County denied the Company’s administrative appeal and, subsequently, the Company filed an administrative appeal with the Tax Commissioner of Virginia. The Company intends to fully contest the assessment. As of March 31, 2019, the Company does not believe that it is probable that is has incurred a BPOL tax liability. As such, the Company has not recognized a BPOL tax liability or an associated expense in its consolidated financial statements for the current or prior periods. If the Company were to become subject to the BPOL tax, the Company would be required to pay the full $9,380 assessment for calendar year 2017 and would also be subject to a BPOL tax for subsequent periods. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 9. Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net income or loss applicable to common stock by the weighted-average number of common shares outstanding for the respective period. Diluted earnings per share includes the impact of dilutive securities such as unvested shares of restricted stock and performance share units. The following tables present the computations of basic and diluted earnings (loss) per share for the periods indicated: Three Months Ended March 31, (Shares in thousands) 2019 2018 Basic weighted-average common shares outstanding 33,053 28,197 Performance share units and unvested restricted stock 86 — Diluted weighted-average common shares outstanding 33,139 28,197 Net income (loss) available (attributable) to common stock $ 17,316 $ (56,520 ) Basic earnings (loss) per common share $ 0.52 $ (2.00 ) Diluted earnings (loss) per common share $ 0.52 $ (2.00 ) The diluted loss per share for the three months ended March 31, 2018 did not include the antidilutive effect of 233 shares of unvested shares of restricted stock and performance share units. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 10. Stockholders’ Equity Common Stock The Company has authorized common share capital of 450,000,000 shares of Class A common stock, par value $0.01 per share, and 100,000,000 shares of Class B common stock, par value $0.01 per share. Holders of the Class A and Class B common stock are entitled to one vote and three votes per share, respectively, on all matters voted upon by the shareholders. Shares of Class B common stock are convertible into shares of Class A common stock on a one-for-one basis at the option of the Company in certain circumstances including either (i) upon sale or other transfer, or (ii) at the time the holder of such shares of Class B common stock ceases to be employed by the Company. As of March 31, 2019 and December 31, 2018, there were no outstanding shares of Class B common stock. The Class A common stock is publicly traded on the New York Stock Exchange under the ticker symbol “AI.” Common Stock Dividends The Board of Directors evaluates common stock dividends on a quarterly basis and, in its sole discretion, approves the payment of dividends. The Company’s common stock dividend payments, if any, may vary significantly from quarter to quarter. The Board of Directors has approved and the Company declared and paid the following dividends on its common stock to date in 2019: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date March 31 $ 0.375 March 18 March 29 April 30 The Board of Directors approved and the Company declared and paid the following dividends for 2018: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date December 31 $ 0.375 December 13 December 31 January 31, 2019 September 30 0.375 September 13 September 28 October 31 June 30 0.375 June 14 June 29 July 31 March 31 0.550 March 15 March 29 April 30 Common Equity Offerings On February 22, 2019, the Company completed a public offering in which 6,000,000 shares of its Class A common stock were sold at a price of $8.16 per share for proceeds net of offering expenses of $48,810. Common Equity Distribution Agreements On February 22, 2017, the Company entered into separate common equity distribution agreements (the “Equity Distribution Agreements”) with equity sales agents JMP Securities LLC, FBR Capital Markets & Co., JonesTrading Institutional Services LLC and Ladenburg Thalmann & Co. Inc. pursuant to which the Company may offer and sell, from time to time, up to 6,000,000 shares of the Company’s Class A common stock. On August 10, 2018, the Company entered into separate amendments to the Equity Distribution Agreements (the “Amended Equity Distribution Agreements”) with equity sales agents JMP Securities LLC, B. Riley FBR, Inc. (formerly, FBR Capital Markets & Co.), JonesTrading Institutional Services LLC and Ladenburg Thalmann & Co. Inc. pursuant to which the Company may offer and sell, from time to time, up to 12,597,423 shares of the Company’s Class A common stock. Pursuant to the common equity distribution agreements, shares of the Company’s common stock may be offered and sold through the equity sales agents in transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, including sales made directly on the NYSE or sales made to or through a market maker other than on an exchange or, subject to the terms of a written notice from the Company, in privately negotiated transactions. The following table provides information about the issuances of common stock under the common equity distribution agreements for the periods indicated: Class A Common Stock Issuances Year Ended December 31, 2018 Shares issued 2,226,557 Weighted average public offering price $ 10.19 Net proceeds (1) $ 22,326 (1) Net of selling commissions and expenses. As of March 31, 2019, the Company had 11,302,160 shares of Class A common stock available for sale under the Amended Equity Distribution Agreements. Common Share Repurchase Program The Company’s Board of Directors authorized a share repurchase program pursuant to which the Company may repurchase up to 2,000,000 shares of Class A common stock (the “Repurchase Program”). Repurchases under the Repurchase Program may be made from time to time on the open market and in private transactions at management’s discretion in accordance with applicable federal securities laws. The timing of repurchases and the exact number of shares of Class A common stock to be repurchased will depend upon market conditions and other factors. The Repurchase Program is funded using the Company’s cash on hand and cash generated from operations. The Repurchase Program has no expiration date and may be suspended or terminated at any time without prior notice. There were no shares repurchased by the Company under the Repurchase Program during the three months ended March 31, 2019 and the year ended December 31, 2018. As of March 31, 2019, there remain available for repurchase 1,951,305 shares of Class A common stock under the Repurchase Program. Preferred Stock The Company has authorized preferred share capital of (i) 100,000 shares designated as Series A Preferred Stock that is unissued; (ii) 2,000,000 shares designated as 7.00% Series B Cumulative Perpetual Redeemable Preferred Stock (the “Series B Preferred Stock”), par value of $0.01 per share; (iii) 2,500,000 shares designated as 8.250% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock”), par value of $0.01 per share; and (iv) 20,400,000 shares of undesignated preferred stock. The Company’s Board of Directors has the authority, without further action by the shareholders, to issue additional preferred stock in one or more series and to fix the terms and rights of the preferred stock. The Company’s preferred stock ranks senior to its common stock with respect to the payment of dividends and the distribution of assets upon a voluntary or involuntary liquidation, dissolution, or winding up of the Company. The Company’s preferred stock ranks on parity with each other. The Series B Preferred Stock and Series C Preferred Stock are publicly traded on the New York Stock Exchange under the ticker symbols “AI PrB” and “AI PrC,” respectively. The Series B Preferred Stock has no stated maturity, is not subject to any sinking fund and will remain outstanding indefinitely unless repurchased or redeemed by the Company. Holders of Series B Preferred Stock have no voting rights, except under limited conditions, and are entitled to receive a cumulative cash dividend at a rate of 7.00% per annum of their $25.00 per share liquidation preference (equivalent to $1.75 per annum per share). Shares of Series B Preferred Stock are redeemable at $25.00 per share, plus accumulated and unpaid dividends (whether or not authorized or declared), exclusively at the Company’s option commencing on May 12, 2022 or earlier upon the occurrence of a change in control. Dividends are payable quarterly in arrears on the 30th day of March, June, September and December of each year, when and as declared. We have declared and paid all required quarterly dividends on the Company’s Series B Preferred Stock to date in 2019. On March 12, 2019, the Company completed an initial public offering in which 1,200,000 shares of its Series C Preferred Stock were issued to the public at a public offering price of $25.00 per share for proceeds net of underwriting discounts and commissions and expenses of $28,880. The Series C Preferred Stock has no stated maturity, is not subject to any sinking fund and will remain outstanding indefinitely unless repurchased or redeemed by the Company. Holders of Series C Preferred Stock have no voting rights, except under limited conditions, and are entitled to receive a cumulative cash dividend (i) from and including the original issue date to, but excluding, March 30, 2024 at a fixed rate equal to 8.250% per annum of the $25.00 per share liquidation preference (equivalent to $2.0625 per annum per share) and (ii) from and including March 30, 2024, at a floating rate equal to three-month LIBOR plus a spread of 5.664% per annum of the $25.00 per share liquidation preference. Shares of Series C Preferred Stock are redeemable at $25.00 per share, plus accumulated and unpaid dividends (whether or not authorized or declared), exclusively at the Company’s option commencing on March 30, 2024 or earlier upon the occurrence of a change in control or under circumstances where it is necessary to preserve the Company’s qualification as a REIT. Under certain circumstances upon a change of control, the Series C Preferred Stock is convertible into shares of the Company’s common stock. Dividends will be payable quarterly in arrears on the 30th day of March, June, September and December of each year, when and as declared, beginning on June 30, 2019. The first dividend of $0.61875 per share scheduled to be payable on June 30, 2019 will be considered a long first dividend period from the original date of issuance. Preferred Equity Distribution Agreements On May 16, 2017, the Company entered into an equity distribution agreement (the “Series B Preferred Equity Distribution Agreement”) with JonesTrading Institutional Services LLC, pursuant to which the Company may offer and sell, from time to time, up to 1,865,000 shares of the Company’s Series B Preferred Stock. On March 21, 2019, the Company entered into an amended and restated equity distribution agreement (“Amended Series B Preferred Equity Distribution Agreement”) with JonesTrading Institutional Services LLC, B. Riley FBR, Inc., Compass Point Research and Trading, LLC and Ladenburg Thalmann & Co. Inc. (collectively, the “Series B Preferred Equity Agents”), pursuant to which the Company may offer and sell, from time to time, up to 1,647,370 shares of the Company’s Series B Preferred Stock. Pursuant to the Amended Series B Preferred Equity Distribution Agreement, shares of the Company’s Series B Preferred stock may be offered and sold through the Series B Preferred Equity Sales Agents in transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, including sales made directly on the NYSE or sales made to or through a market maker other than on an exchange or, subject to the terms of a written notice from the Company, in privately negotiated transactions. The following table provides information about the issuances of preferred stock under the preferred equity distribution agreements for the periods indicated: Series B Preferred Stock Issuances Three Months Ended March 31, 2019 Year Ended December 31, 2018 Shares issued 2,035 47,304 Weighted average public offering price $ 22.56 $ 24.75 Net proceeds (1) $ 45 $ 1,137 (1) Net of selling commissions and expenses. As of March 31, 2019, the Company had 1,647,370 shares of Series B Preferred stock available for sale under the Amended Series B Preferred Equity Distribution Agreement. Shareholder Rights Agreement On June 1, 2009, the Board of Directors approved a shareholder rights agreement (“Rights Plan”) and the Company’s shareholders approved the Rights Plan at its annual meeting of shareholders on June 2, 2010. On April 9, 2018, the Board of Directors approved a first amendment to the Rights Plan (“First Amendment”) to extend the term for an additional three years and the Company’s shareholders approved the First Amendment at its annual meeting of shareholders on June 14, 2018. Under the terms of the Rights Plan, in general, if a person or group acquires or commences a tender or exchange offer for beneficial ownership of 4.9% or more of the outstanding shares of our Class A common stock upon a determination by our Board of Directors (an “Acquiring Person”), all of our other Class A and Class B common shareholders will have the right to purchase securities from us at a discount to such securities’ fair market value, thus causing substantial dilution to the Acquiring Person. The Board of Directors adopted the Rights Plan in an effort to protect against a possible limitation on the Company’s ability to use its NOL carryforwards, NCL carryforwards, and built-in losses under Sections 382 and 383 of the Code. The Company’s ability to use its NOLs, NCLs and built-in losses would be limited if it experienced an “ownership change” under Section 382 of the Code. In general, an “ownership change” would occur if there is a cumulative change in the ownership of the Company’s common stock of more than 50% by one or more “5% shareholders” during a three-year period. The Rights Plan was adopted to dissuade any person or group from acquiring 4.9% or more of the Company’s outstanding Class A common stock, each, an Acquiring Person, without the approval of the Board of Directors and triggering an “ownership change” as defined by Section 382. The Rights Plan, as amended, and any outstanding rights will expire at the earliest of (i) June 4, 2022, (ii) the time at which the rights are redeemed or exchanged pursuant to the Rights Plan, (iii) the repeal of Section 382 and 383 of the Code or any successor statute if the Board of Directors determines that the Rights Plan is no longer necessary for the preservation of the applicable tax benefits, or (iv) the beginning of a taxable year to which the Board of Directors determines that no applicable tax benefits may be carried forward. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Cash Equivalents | Cash Equivalents Cash equivalents include demand deposits with banks, money market accounts and highly liquid investments with original maturities of three months or less. As of March 31, 2019 and December 31, 2018, approximately 99% of the Company’s cash equivalents were invested in money market funds that invest primarily in U.S. Treasuries and other securities backed by the U.S. government. |
Investment Security Purchases and Sales | Investment Security Purchases and Sales Purchases and sales of investment securities are recorded on the settlement date of the transfer unless the trade qualifies as a “regular-way” trade and the associated commitment qualifies for an exemption from the accounting guidance applicable to derivative instruments. A regular-way trade is an investment security purchase or sale transaction that is expected to settle within the period of time following the trade date that is prevalent or traditional for that specific type of security. Any amounts payable or receivable for unsettled security trades are recorded as “sold securities receivable” or “purchased securities payable” in the consolidated balance sheets. |
Interest Income Recognition for Investments in Agency MBS | Interest Income Recognition for Investments in Agency MBS The Company recognizes interest income for its investments in agency MBS by applying the “interest method” permitted by GAAP, whereby purchase premiums and discounts are amortized and accreted, respectively, as an adjustment to contractual interest income accrued at each security’s stated coupon rate. The interest method is applied at the individual security level based upon each security’s effective interest rate. The Company calculates each security’s effective interest rate at the time of purchase by solving for the discount rate that equates the present value of that security's remaining contractual cash flows (assuming no principal prepayments) to its purchase price. Because each security’s effective interest rate does not reflect an estimate of future prepayments, the Company refers to this manner of applying the interest method as the “contractual effective interest method.” When applying the contractual effective interest method to its investments in agency MBS, as principal prepayments occur, a proportional amount of the unamortized premium or discount is recognized in interest income such that the contractual effective interest rate on the remaining security balance is unaffected. |
Other Significant Accounting Policies | Other Significant Accounting Policies Certain of the Company’s other significant accounting policies are summarized in the following notes: Investments in agency MBS, subsequent measurement Note 3 Borrowings Note 4 To-be-announced agency MBS transactions, including “dollar rolls” Note 5 Derivative instruments Note 5 Balance sheet offsetting Note 6 Fair value measurements Note 7 Refer to the Company’s 2018 Annual Report on Form 10-K for a complete inventory and summary of the Company’s significant accounting policies. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting pronouncements and their actual or expected effect on the Company’s consolidated financial statements: Standard Description Date of Adoption Effect on the Consolidated Financial Statements Recently Adopted Accounting Guidance Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) This amendment replaces the existing lease accounting model with a revised model. The primary change effectuated by the revised lease accounting model is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. January 1, 2019 The primary impact of the adoption of ASU No. 2016-02 was the recognition of lease liabilities and associated right-of-use assets, as a component of “Other liabilities” and “Other assets,” respectively, on the Company’s consolidated balance sheets as of March 31, 2019. The adoption of ASU No. 2016-02 did not have an effect on the timing or amount of periodic lease expense recognized in net income. The adoption of ASU No. 2016-02 did not have a material effect on the Company’s consolidated financial statements. ASU No. 2017-08, Premium Amortization of Purchased Callable Debt Securities (Subtopic 310-20) This amendment requires purchase premiums for investments in debt securities that are noncontingently callable by the issuer (at a fixed price and preset date) to be amortized to the earliest call date. Previously, purchase premiums for such investments were permitted to be amortized to the instrument’s maturity date. January 1, 2019 Investments in prepayable financial assets, such as residential MBS, for which the embedded call options are not held by the issuer are not within the scope of ASU No. 2017-08. Accordingly, the adoption of ASU No. 2017-08 did not have an effect on the Company’s consolidated financial statements. ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) This update made several targeted amendments to existing GAAP with the objectives of facilitating (i) financial reporting that more closely reflects entities’ risk management strategies and (ii) greater ease of understanding and interpreting the effects of hedge accounting on an entities’ reported results. January 1, 2019 Hedge accounting pursuant to GAAP is an elective, rather than a required, accounting model. The Company does not elect to apply hedge accounting. The adoption of ASU No. 2017-12 did have an effect on the Company’s consolidated financial statements. Recently Issued Accounting Guidance Not Yet Adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 606) The amendments in this update require financial assets measured at amortized cost as well as available-for-sale debt securities to be measured for impairment on the basis of the net amount expected to be collected. Credit losses are to be recognized through an allowance for credit losses, which differs from the direct write-down of the amortized cost basis currently required for other-than-temporary impairments of investments in debt securities. This update also makes substantial changes to the manner in which interest income is to be recognized for financial assets acquired with a more-than-insignificant amount of credit deterioration since origination. This update will not affect the accounting for investments in debt securities that are classified as trading securities. January 1, 2020 As of March 31, 2019, all of the Company’s investments in debt securities are classified as trading securities. Accordingly, the Company does not expect ASU No. 2016-13 to have a material impact on its consolidated financial statements. |
Repurchase Agreements | The Company finances the purchase of MBS through repurchase agreements, which are accounted for as collateralized borrowing arrangements. In a repurchase transaction, the Company sells MBS to a counterparty under a master repurchase agreement in exchange for cash and concurrently agrees to repurchase the same security at a future date in an amount equal to the cash initially exchanged plus an agreed-upon amount of interest. MBS sold under agreements to repurchase remain on the Company’s consolidated balance sheets because the Company maintains effective control over such securities throughout the duration of the arrangement. Throughout the contractual term of a repurchase agreement, the Company recognizes a “repurchase agreement” liability on its consolidated balance sheets to reflect the obligation to repay to the counterparty the proceeds received upon the initial transfer of the MBS. The difference between the proceeds received by the Company upon the initial transfer of the MBS and the contractually agreed-upon repurchase price is recognized as interest expense ratably over the term of the repurchase arrangement. |
Derivative Instruments | In the normal course of its operations, the Company is a party to financial instruments that are accounted for as derivative instruments. Derivative instruments are recorded at fair value as either “derivative assets” or “derivative liabilities” in the consolidated balance sheets, with all periodic changes in fair value reflected as a component of “investment gain (loss), net” in the consolidated statements of comprehensive income. Cash receipts or payments related to derivative instruments are classified as investing activities within the consolidated statements of cash flows. In addition to interest rate derivatives that are used for interest rate risk management, the Company is a party to derivative instruments that economically serve as investments, such as forward commitments to purchase fixed-rate “pass-through” agency MBS on a non-specified pool basis, which are known as to-be-announced (“TBA”) securities. A TBA security is a forward commitment for the purchase or sale of a fixed-rate agency MBS at a predetermined price, face amount, issuer, coupon, and stated maturity for settlement on an agreed upon future date. The specific agency MBS that will be delivered to satisfy the TBA trade is not known at the inception of the trade. The specific agency MBS to be delivered is determined 48 hours prior to the settlement date. The Company accounts for TBA securities as derivative instruments because the Company cannot assert that it is probable at inception and throughout the term of an individual TBA commitment that its settlement will result in physical delivery of the underlying agency MBS, or the individual TBA commitment will not settle in the shortest time period possible. |
Derivatives, Offsetting of Financial Assets and Liabilities | The agreements that govern certain of the Company’s derivative instruments and collateralized short-term financing arrangements provide for a right of setoff in the event of default or bankruptcy with respect to either party to such transactions. The Company presents derivative assets and liabilities as well as collateralized short-term financing arrangements on a gross basis. Receivables recognized for the right to reclaim cash initial margin posted in respect of interest rate derivative instruments are included in the line item “deposits” in the accompanying consolidated balance sheets. The daily exchange of variation margin associated with a centrally cleared or exchange-traded derivative instrument is legally characterized as the daily settlement of the derivative instrument itself, as opposed to a pledge of collateral. Accordingly, the Company accounts for the daily receipt or payment of variation margin associated with its interest rate swaps and futures as a direct reduction to the carrying value of the interest rate swap derivative asset or liability, respectively. The carrying amount of interest rate swaps and futures reflected in the Company’s consolidated balance sheets is equal to the unsettled fair value of such instruments; because variation margin is exchanged on a one-day lag, the unsettled fair value of such instruments generally represents the change in fair value that occurred on the last day of the reporting period. |
Fair Value of Financial Instruments | The accounting principles related to fair value measurements define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial Accounting Standards Board Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company at the measurement date; Level 2 Inputs - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and Level 3 Inputs - Unobservable inputs for the asset or liability, including significant judgments made by the Company about the assumptions that a market participant would use. The Company measures the fair value of the following assets and liabilities: |
Agency MBS | |
Investment Security Purchases and Sales | The Company’s investments in agency MBS are reported in the accompanying consolidated balance sheets at fair value. As of March 31, 2019 and December 31, 2018, the Company had $4,192,327 and $3,982,106, respectively, of fair value in agency MBS classified as trading securities. |
Investments in Agency MBS (Tabl
Investments in Agency MBS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Agency MBS | |
Additional Information Realized Gain Loss on Investments | The following table provides additional information about the gains and losses recognized as a component of “investment gain (loss), net” in the Company’s consolidated statements of comprehensive income for the periods indicated with respect to investments in agency MBS classified as trading securities: Three Months Ended March 31, 2019 2018 Net gains (losses) recognized in earnings for: Agency MBS still held at period end $ 62,109 $ (61,825 ) Agency MBS sold during the period 7,056 (26,520 ) Total $ 69,165 $ (88,345 ) |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Repurchase Agreements | As of March 31, 2019 and December 31, 2018, the Company had no amount at risk with a single repurchase agreement counterparty or lender greater than 10% of equity. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings as of the dates indicated: March 31, 2019 December 31, 2018 Pledged with agency MBS: Repurchase agreements outstanding $ 3,964,127 $ 3,721,629 Agency MBS collateral, at fair value (1) 4,197,580 3,931,232 Net amount (2) 233,453 209,603 Weighted-average rate 2.73 % 2.72 % Weighted-average term to maturity 20.9 days 17.3 days (1) As of March 31, 2019, includes $323,156 at sale price of unsettled agency MBS sale commitments which is included in the line item “sold securities receivable” in the accompanying consolidated balance sheets. ( 2 ) Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance. The following table provides information regarding the Company’s outstanding repurchase agreement borrowings during the three months ended March 31, 2019 and 2018: March 31, 2019 March 31, 2018 Weighted-average outstanding balance during the three months ended $ 3,680,429 $ 3,730,619 Weighted-average rate during the three months ended 2.68 % 1.64 % |
Schedule of Long-term Unsecured Debt Instruments | As of March 31, 2019 and December 31, 2018, the Company had $74,160 and $74,104, respectively, of outstanding long-term unsecured debentures, net of unamortized debt issuance costs of $1,140 and $1,196, respectively. The Company’s long-term debentures consisted of the following as of the dates indicated: March 31, 2019 December 31, 2018 Senior Notes Due 2025 Senior Notes Due 2023 Trust Preferred Debt Senior Notes Due 2025 Senior Notes Due 2023 Trust Preferred Debt Outstanding Principal $ 35,300 $ 25,000 $ 15,000 $ 35,300 $ 25,000 $ 15,000 Annual Interest Rate 6.75 % 6.625 % LIBOR+ 2.25 - 3.00 % 6.75 % 6.625 % LIBOR+ 2.25 - 3.00 % Interest Payment Frequency Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Weighted-Average Interest Rate 6.75 % 6.625 % 5.54 % 6.75 % 6.625 % 5.19 % Maturity March 15, 2025 May 1, 2023 2033 - 2035 March 15, 2025 May 1, 2023 2033 - 2035 Early Redemption Date March 15, 2018 May 1, 2016 2008 - 2010 March 15, 2018 May 1, 2016 2008 - 2010 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Schedule of Derivative Instruments | The following table presents the fair value of the Company’s derivative instruments as of the dates indicated: March 31, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Interest rate swaps $ 5,143 $ — $ — $ (5,709 ) 10-year U.S. Treasury note futures 605 — — (1,250 ) TBA commitments 9,500 (2,346 ) 438 — Total $ 15,248 $ (2,346 ) $ 438 $ (6,959 ) |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables provide information about the derivative gains and losses recognized within the periods indicated: Three Months Ended March 31, 2019 2018 Interest rate derivatives: Interest rate swaps: Net interest income (expense) (1) $ 4,747 $ (816 ) Unrealized (losses) gains, net (63,491 ) 50,857 Gains realized upon early termination, net 1,178 10,169 Total interest rate swap (losses) gains, net (57,566 ) 60,210 U.S. Treasury note futures, net (6,704 ) 12,320 Total interest rate derivative (losses) gains, net (64,270 ) 72,530 TBA and specified agency MBS commitments: TBA dollar roll income (2) 1,420 6,643 Other gains (losses) on agency MBS commitments, net 7,645 (39,019 ) Total gains (losses) on agency MBS commitments, net 9,065 (32,376 ) Total derivative (losses) gains, net $ (55,205 ) $ 40,154 (1) Represents the periodic net interest settlement incurred during the period (often referred to as “net interest carry”). Also includes “price alignment interest” income earned or expense incurred on cumulative variation margin paid or received, respectively, associated with centrally cleared interest rate swap agreements. (2) Represents the price discount of forward-settling TBA purchases relative to a contemporaneously executed “spot” TBA sale, which economically equates to net interest income that is earned ratably over the period beginning on the settlement date of the sale and ending on the settlement date of the forward-settling purchase. |
Derivative Instrument Volume of Activity | The following tables summarize the volume of activity, in terms of notional amount, related to derivative instruments for the periods indicated: For the Three Months Ended March 31, 2019 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,100,000 $ 400,000 $ — $ (650,000 ) $ 2,850,000 10-year U.S. Treasury note futures 320,000 440,000 (390,000 ) (155,000 ) 215,000 Commitments to purchase (sell) MBS, net — 2,150,000 (1,250,000 ) — 900,000 For the Three Months Ended March 31, 2018 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,600,000 $ 250,000 $ — $ (325,000 ) $ 3,525,000 5-year U.S. Treasury note futures 21,600 — (21,600 ) — — 10-year U.S. Treasury note futures 650,000 950,000 (750,000 ) — 850,000 Commitments to purchase (sell) MBS, net 1,265,000 4,255,000 (4,105,000 ) — 1,415,000 |
Derivative Instruments and Other Financial Instrument Cash Collateral | The following table presents information about the cash collateral posted and received by the Company in respect of its derivative and other financial instruments, which is included in the line item “deposits, net” in the accompanying consolidated balance sheets, for the dates indicated: March 31, 2019 December 31, 2018 Cash collateral posted for: Interest rate swaps (cash initial margin) $ 50,741 $ 54,883 U.S. Treasury note futures (cash initial margin) 2,473 6,169 Unsettled MBS trades and TBA commitments, net 232 — Total cash collateral posted, net $ 53,446 $ 61,052 |
TBA Commitments | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Schedule of Derivative Instruments | The following tables present information about the Company’s TBA commitments as of the dates indicated: March 31, 2019 Notional Amount: Net Purchase (Sale) Commitment Contractual Forward Price Market Price Fair Value Dollar roll positions: 3.5% 30-year MBS purchase commitments $ 25,000 $ 25,094 $ 25,348 $ 254 3.5% 30-year MBS sale commitments (25,000 ) (25,332 ) (25,348 ) (16 ) 4.0% 30-year MBS purchase commitments 1,450,000 1,482,877 1,491,844 8,967 4.0% 30-year MBS sale commitments (550,000 ) (563,996 ) (566,047 ) (2,051 ) Total TBA commitments, net $ 900,000 $ 918,643 $ 925,797 $ 7,154 December 31, 2018 Notional Amount: Net Purchase (Sale) Commitment Contractual Forward Price Market Price Fair Value Dollar roll positions: 5.0% 30-year MBS purchase commitments $ 100,000 $ 103,750 $ 104,047 $ 297 5.0% 30-year MBS sale commitments (100,000 ) (104,188 ) (104,047 ) 141 Total TBA commitments, net $ — $ (438 ) $ — $ 438 |
Interest Rate Swap | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Schedule of Derivative Instruments | The following table presents information about the Company’s interest rate swap agreements that were in effect as of March 31, 2019: Weighted-average: Notional Amount Fixed Pay Rate Variable Receive Rate Net Receive (Pay) Rate Remaining Life (Years) Fair Value Years to maturity: Less than 3 years $ 1,175,000 1.59 % 2.70 % 1.11 % 1.4 $ 714 3 to less than 7 years 100,000 1.77 % 2.63 % 0.86 % 3.4 181 7 to less than 10 years 1,550,000 2.51 % 2.64 % 0.13 % 8.7 4,142 10 or more years 25,000 2.96 % 2.63 % (0.33 )% 29.0 106 Total / weighted-average $ 2,850,000 2.11 % 2.66 % 0.55 % 5.7 $ 5,143 The following table presents information about the Company’s interest rate swap agreements that were in effect as of December 31, 2018: Weighted-average: Notional Amount Fixed Pay Rate Variable Receive Rate Net Receive (Pay) Rate Remaining Life (Years) Fair Value Years to maturity: Less than 3 years $ 1,050,000 1.53 % 2.60 % 1.07 % 1.5 $ (152 ) 3 to less than 7 years 325,000 2.00 % 2.73 % 0.73 % 4.4 (432 ) 7 to less than 10 years 1,600,000 2.35 % 2.70 % 0.35 % 8.5 (4,572 ) 10 or more years 125,000 3.02 % 2.66 % (0.36 )% 29.6 (553 ) Total / weighted-average $ 3,100,000 2.07 % 2.67 % 0.60 % 6.6 $ (5,709 ) |
Offsetting of Financial Asset_2
Offsetting of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting of Financial Assets and Liabilities | The following tables present information, as of the dates indicated, about the Company’s derivative instruments, short-term borrowing arrangements, and associated collateral, including those subject to master netting (or similar) arrangements: As of March 31, 2019 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral (2) Assets: Derivative instruments: Interest rate swaps $ 5,143 $ — $ 5,143 $ — $ — $ 5,143 10-year U.S. Treasury note futures 605 — 605 — — 605 TBA commitments 9,500 — 9,500 (2,315 ) — 7,185 Total derivative instruments 15,248 — 15,248 (2,315 ) — 12,933 Total assets $ 15,248 $ — $ 15,248 $ (2,315 ) $ — $ 12,933 Liabilities: Derivative instruments: TBA commitments $ 2,346 $ — $ 2,346 $ (2,315 ) $ — $ 31 Total derivative instruments 2,346 — 2,346 (2,315 ) — 31 Repurchase agreements 3,964,127 — 3,964,127 (3,964,127 ) — — Total liabilities $ 3,966,473 $ — $ 3,966,473 $ (3,966,442 ) $ — $ 31 As of December 31, 2018 Gross Amount Recognized Amount Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets Gross Amount Not Offset in the Consolidated Balance Sheets Net Amount Financial Instruments (1) Cash Collateral (2) Assets: Derivative instruments: TBA commitments $ 438 $ — $ 438 $ — $ (438 ) $ — Total derivative instruments 438 — 438 — (438 ) — Total assets $ 438 $ — $ 438 $ — $ (438 ) $ — Liabilities: Derivative instruments: Interest rate swaps $ 5,709 $ — $ 5,709 $ — $ (5,709 ) $ — 10-year U.S. Treasury note futures 1,250 — 1,250 — (1,250 ) — Total derivative instruments 6,959 — 6,959 — (6,959 ) — Repurchase agreements 3,721,629 — 3,721,629 (3,721,629 ) — — Total liabilities $ 3,728,588 $ — $ 3,728,588 $ (3,721,629 ) $ (6,959 ) $ — (1) Does not include the fair value amount of financial instrument collateral pledged in respect of repurchase agreements that exceeds the associated liability presented in the consolidated balance sheets. (2) Does not include the amount of cash collateral pledged in respect of derivative instruments that exceeds the associated derivative liability presented in the consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on a Recurring Basis | The following tables set forth financial instruments measured at fair value by level within the fair value hierarchy as of March 31, 2019 and December 31, 2018. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. March 31, 2019 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 4,192,327 $ — $ 4,192,327 $ — Private-label MBS 28 — — 28 Total MBS 4,192,355 — 4,192,327 28 Derivative assets 15,248 605 14,643 — Derivative liabilities (2,346 ) — (2,346 ) — Other assets 5,876 — — 5,876 Total $ 4,211,133 $ 605 $ 4,204,624 $ 5,904 December 31, 2018 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 3,982,106 $ — $ 3,982,106 $ — Private-label MBS 24 — — 24 Total MBS 3,982,130 — 3,982,106 24 Derivative assets 438 — 438 — Derivative liabilities (6,959 ) (1,250 ) (5,709 ) — Other assets 6,115 — — 6,115 Total $ 3,981,724 $ (1,250 ) $ 3,976,835 $ 6,139 |
Change in Fair Value of Level 3 Investments that are Measured at Fair Value on Recurring Basis | The table below sets forth an attribution of the change in the fair value of the Company’s Level 3 investments that are measured at fair value on a recurring basis for the periods indicated: Three Months Ended March 31, 2019 2018 Beginning balance $ 6,139 $ 515 Investments in equity securities measured at fair value beginning January 1, 2018 — 5,362 Included in investment gain (loss), net (156 ) 52 Purchases — — Sales — — Payments, net (80 ) (7 ) Accretion of discount 1 4 Ending balance $ 5,904 $ 5,926 Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date $ (156 ) $ 52 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Earnings (Loss) Per Share | The following tables present the computations of basic and diluted earnings (loss) per share for the periods indicated: Three Months Ended March 31, (Shares in thousands) 2019 2018 Basic weighted-average common shares outstanding 33,053 28,197 Performance share units and unvested restricted stock 86 — Diluted weighted-average common shares outstanding 33,139 28,197 Net income (loss) available (attributable) to common stock $ 17,316 $ (56,520 ) Basic earnings (loss) per common share $ 0.52 $ (2.00 ) Diluted earnings (loss) per common share $ 0.52 $ (2.00 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Dividends Payable | The Board of Directors has approved and the Company declared and paid the following dividends on its common stock to date in 2019: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date March 31 $ 0.375 March 18 March 29 April 30 The Board of Directors approved and the Company declared and paid the following dividends for 2018: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date December 31 $ 0.375 December 13 December 31 January 31, 2019 September 30 0.375 September 13 September 28 October 31 June 30 0.375 June 14 June 29 July 31 March 31 0.550 March 15 March 29 April 30 |
Common Equity Distribution Agreements | |
Issuances of Stock under Equity Distribution Agreements | The following table provides information about the issuances of common stock under the common equity distribution agreements for the periods indicated: Class A Common Stock Issuances Year Ended December 31, 2018 Shares issued 2,226,557 Weighted average public offering price $ 10.19 Net proceeds (1) $ 22,326 (1) Net of selling commissions and expenses. |
Series B Preferred Equity Distribution Agreement | |
Issuances of Stock under Equity Distribution Agreements | The following table provides information about the issuances of preferred stock under the preferred equity distribution agreements for the periods indicated: Series B Preferred Stock Issuances Three Months Ended March 31, 2019 Year Ended December 31, 2018 Shares issued 2,035 47,304 Weighted average public offering price $ 22.56 $ 24.75 Net proceeds (1) $ 45 $ 1,137 (1) Net of selling commissions and expenses. |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Required annual distribution of taxable income | 90.00% |
Intended annual distribution of taxable income | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Mar. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Cash Equivalents Percentage Held in Us Government Backed Securities | 99.00% | 99.00% |
Investments in Agency MBS - Add
Investments in Agency MBS - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Agency MBS | ||
Fair Value of MBS | $ 4,192,327 | $ 3,982,106 |
Investments in Agency MBS - A_2
Investments in Agency MBS - Additional Information About Gains and Losses Recognized with Respect to Investments in MBS classified as trading securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net gains (losses) recognized in earnings for: | ||
Total | $ 69,168 | $ (88,343) |
Agency MBS | ||
Net gains (losses) recognized in earnings for: | ||
MBS still held at period end | 62,109 | (61,825) |
MBS sold during the period | 7,056 | (26,520) |
Total | $ 69,165 | $ (88,345) |
Borrowings - Outstanding Repurc
Borrowings - Outstanding Repurchase Agreement Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Repurchase Agreement Counterparty [Line Items] | |||
Repurchase agreements outstanding | $ 3,964,127 | $ 3,721,629 | |
Pledged with agency-backed MBS | |||
Repurchase Agreement Counterparty [Line Items] | |||
Repurchase agreements outstanding | 3,964,127 | 3,721,629 | |
MBS collateral, at fair value | [1] | 4,197,580 | 3,931,232 |
Net amount | [2] | $ 233,453 | $ 209,603 |
Weighted-average rate | 2.73% | 2.72% | |
Weighted-average term to maturity (in days) | 20 days | 17 days | |
[1] | As of March 31, 2019, includes $323,156 at sale price of unsettled agency MBS sale commitments which is included in the line item “sold securities receivable” in the accompanying consolidated balance sheets. | ||
[2] | Net amount represents the value of collateral in excess of corresponding repurchase obligation. The amount of collateral at-risk is limited to the outstanding repurchase obligation and not the entire collateral balance. |
Borrowings - Outstanding Repu_2
Borrowings - Outstanding Repurchase Agreement Borrowings (Parenthetical) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Repurchase Agreement Counterparty [Line Items] | |
Sold securities receivable | $ 341,798 |
Pledged as Collateral for Repurchase Agreements | |
Repurchase Agreement Counterparty [Line Items] | |
Sold securities receivable | $ 323,156 |
Borrowings - Information Regard
Borrowings - Information Regarding Outstanding Repurchase Agreement Borrowings During the Period (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Disclosure [Abstract] | ||
Weighted-average outstanding balance | $ 3,680,429 | $ 3,730,619 |
Weighted-average rate | 2.68% | 1.64% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Long-term unsecured debt | $ 74,160 | $ 74,104 |
Net of unamortized debt issuance costs | $ 1,140 | $ 1,196 |
Borrowings - Long-term Unsecure
Borrowings - Long-term Unsecured Debt Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 35,300 | $ 35,300 |
Annual Interest Rate | 6.75% | 6.75% |
Interest Payment Frequency | Quarterly | Quarterly |
Weighted-Average Interest Rate | 6.75% | 6.75% |
Maturity | Mar. 15, 2025 | Mar. 15, 2025 |
Early Redemption Date | Mar. 15, 2018 | Mar. 15, 2018 |
Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 25,000 | $ 25,000 |
Annual Interest Rate | 6.625% | 6.625% |
Interest Payment Frequency | Quarterly | Quarterly |
Weighted-Average Interest Rate | 6.625% | 6.625% |
Maturity | May 1, 2023 | May 1, 2023 |
Early Redemption Date | May 1, 2016 | May 1, 2016 |
Trust Preferred Debt | ||
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 15,000 | $ 15,000 |
Interest Payment Frequency | Quarterly | Quarterly |
Weighted-Average Interest Rate | 5.54% | 5.19% |
Annual Interest Rate | LIBOR+ 2.25 - 3.00 % | LIBOR+ 2.25 - 3.00 % |
Trust Preferred Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Maturity | 2033 | 2033 |
Early Redemption Date | 2008 | 2008 |
Trust Preferred Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Maturity | 2035 | 2035 |
Early Redemption Date | 2010 | 2010 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Assets | $ 15,248 | $ 438 |
Derivative Liabilities | (2,346) | (6,959) |
Interest Rate Swap | ||
Derivative Assets | 5,143 | 0 |
Derivative Liabilities | 0 | (5,709) |
10-year U.S. Treasury Note Futures | ||
Derivative Assets | 605 | 0 |
Derivative Liabilities | 0 | (1,250) |
TBA Commitments | ||
Derivative Assets | 9,500 | 438 |
Derivative Liabilities | $ (2,346) | $ 0 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Swap Agreements (Details) - Interest Rate Swap - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Notional Amount | $ 2,850,000,000 | $ 3,100,000,000 | $ 3,525,000,000 | $ 3,600,000,000 |
Weighted-average: Fixed Pay Rate | 2.11% | 2.07% | ||
Weighted-average: Variable Receive Rate | 2.66% | 2.67% | ||
Weighted-average: Net Receive (Pay) Rate | 0.55% | 0.60% | ||
Weighted-average: Remaining Life (in years) | 5 years 8 months 12 days | 6 years 7 months 6 days | ||
Fair Value, Asset and (Liability) | $ 5,143,000 | $ (5,709,000) | ||
Less Than Three Years Maturity | ||||
Notional Amount | $ 1,175,000,000 | $ 1,050,000,000 | ||
Weighted-average: Fixed Pay Rate | 1.59% | 1.53% | ||
Weighted-average: Variable Receive Rate | 2.70% | 2.60% | ||
Weighted-average: Net Receive (Pay) Rate | 1.11% | 1.07% | ||
Weighted-average: Remaining Life (in years) | 1 year 4 months 24 days | 1 year 6 months | ||
Fair Value, Asset and (Liability) | $ 714,000 | $ (152,000) | ||
Three To Less Than Seven Years Maturity | ||||
Notional Amount | $ 100,000,000 | $ 325,000,000 | ||
Weighted-average: Fixed Pay Rate | 1.77% | 2.00% | ||
Weighted-average: Variable Receive Rate | 2.63% | 2.73% | ||
Weighted-average: Net Receive (Pay) Rate | 0.86% | 0.73% | ||
Weighted-average: Remaining Life (in years) | 3 years 4 months 24 days | 4 years 4 months 24 days | ||
Fair Value, Asset and (Liability) | $ 181,000 | $ (432,000) | ||
Seven to Less Than Ten Years Maturity | ||||
Notional Amount | $ 1,550,000,000 | $ 1,600,000,000 | ||
Weighted-average: Fixed Pay Rate | 2.51% | 2.35% | ||
Weighted-average: Variable Receive Rate | 2.64% | 2.70% | ||
Weighted-average: Net Receive (Pay) Rate | 0.13% | 0.35% | ||
Weighted-average: Remaining Life (in years) | 8 years 8 months 12 days | 8 years 6 months | ||
Fair Value, Asset and (Liability) | $ 4,142,000 | $ (4,572,000) | ||
Ten or More Years Maturity | ||||
Notional Amount | $ 25,000,000 | $ 125,000,000 | ||
Weighted-average: Fixed Pay Rate | 2.96% | 3.02% | ||
Weighted-average: Variable Receive Rate | 2.63% | 2.66% | ||
Weighted-average: Net Receive (Pay) Rate | (0.33%) | (0.36%) | ||
Weighted-average: Remaining Life (in years) | 29 years | 29 years 7 months 6 days | ||
Fair Value, Asset and (Liability) | $ 106,000 | $ (553,000) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | ||
Derivative [Line Items] | |||||
Derivative asset, cash collateral | [1] | $ 0 | $ 438,000 | ||
10-year U.S. Treasury Note Futures | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 215,000,000 | $ 320,000,000 | $ 850,000,000 | $ 650,000,000 | |
Maturity date | 2019-06 | 2019-03 | |||
Derivative asset, cash collateral | [1] | $ 0 | |||
Forward-Settling TBA Commitments | |||||
Derivative [Line Items] | |||||
Derivative asset, cash collateral | $ 438,000 | ||||
[1] | Does not include the amount of cash collateral pledged in respect of derivative instruments that exceeds the associated derivative liability presented in the consolidated balance sheets. |
Derivative Instruments - TBA Co
Derivative Instruments - TBA Commitments (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Asset | $ 15,248,000 | $ 438,000 |
Fair Value, Liability | (2,346,000) | (6,959,000) |
TBA Commitments | ||
Notional Amount: Net Purchase Commitment | 900,000,000 | 0 |
Contractual Forward Price | 918,643,000 | (438,000) |
Market Price | 925,797,000 | 0 |
Fair Value, Asset | 9,500,000 | 438,000 |
Fair Value, Liability | (2,346,000) | 0 |
Fair Value | 7,154,000 | |
TBA Commitments | Dollar Roll Positions Three Point Five Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Purchase | ||
Notional Amount: Net Purchase Commitment | 25,000,000 | |
Contractual Forward Price | 25,094,000 | |
Market Price | 25,348,000 | |
Fair Value, Asset | 254,000 | |
TBA Commitments | Dollar Roll Positions Three Point Five Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Sales | ||
Notional Amount: Net Purchase Commitment | 25,000,000 | |
Contractual Forward Price | (25,332,000) | |
Market Price | (25,348,000) | |
Fair Value, Liability | (16,000) | |
TBA Commitments | Dollar Roll Positions Four Point Zero Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Purchase | ||
Notional Amount: Net Purchase Commitment | 1,450,000,000 | |
Contractual Forward Price | 1,482,877,000 | |
Market Price | 1,491,844,000 | |
Fair Value, Asset | 8,967,000 | |
TBA Commitments | Dollar Roll Positions Four Point Zero Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Sale | ||
Notional Amount: Net Purchase Commitment | 550,000,000 | |
Contractual Forward Price | (563,996,000) | |
Market Price | (566,047,000) | |
Fair Value, Liability | $ (2,051,000) | |
TBA Commitments | Dollar Roll Positions Five Point Zero Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Purchase | ||
Notional Amount: Net Purchase Commitment | 100,000,000 | |
Contractual Forward Price | 103,750,000 | |
Market Price | 104,047,000 | |
Fair Value, Asset | 297,000 | |
TBA Commitments | Dollar Roll Positions Five Point Zero Percent Thirty Year Mortgage Backed Securities Purchase (Sale) Commitments, Sales | ||
Notional Amount: Net Purchase Commitment | 100,000,000 | |
Contractual Forward Price | (104,188,000) | |
Market Price | (104,047,000) | |
Fair Value, Asset | $ 141,000 |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Gains and Losses Recognized Within the Periods (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Interest rate derivative (losses) gains, net | $ (64,270) | $ 72,530 | |
Total derivative (losses) gains, net | (55,205) | 40,154 | |
Interest Rate Swap (Losses) Gains, Net | |||
Interest rate derivative (losses) gains, net | (57,566) | 60,210 | |
Interest Rate Swaps Net Interest Income (Expense) | |||
Interest rate derivative (losses) gains, net | [1] | 4,747 | (816) |
Interest Rate Swaps Unrealized (Losses) Gains, Net | |||
Interest rate derivative (losses) gains, net | (63,491) | 50,857 | |
Interest Rate Swaps Gains Realized Upon Early Termination, Net | |||
Interest rate derivative (losses) gains, net | 1,178 | 10,169 | |
TBA Dollar Roll Income | |||
Gains (losses) on agency commitments | [2] | 1,420 | 6,643 |
Other Gains (Losses) on Agency MBS Commitments, Net | |||
Gains (losses) on agency commitments | 7,645 | (39,019) | |
Gains (Losses) on Agency MBS Commitments, Net | |||
Gains (losses) on agency commitments | 9,065 | (32,376) | |
U.S. Treasury Note Futures, Net | |||
Interest rate derivative (losses) gains, net | $ (6,704) | $ 12,320 | |
[1] | Represents the periodic net interest settlement incurred during the period (often referred to as “net interest carry”). Also includes “price alignment interest” income earned or expense incurred on cumulative variation margin paid or received, respectively, associated with centrally cleared interest rate swap agreements. | ||
[2] | Represents the price discount of forward-settling TBA purchases relative to a contemporaneously executed “spot” TBA sale, which economically equates to net interest income that is earned ratably over the period beginning on the settlement date of the sale and ending on the settlement date of the forward-settling purchase. |
Derivative Instruments - Volume
Derivative Instruments - Volume of Activity, in terms of Notional Amount, Related to Derivative Instruments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Beginning of Period | $ 3,100,000,000 | $ 3,600,000,000 |
Additions | 400,000,000 | 250,000,000 |
Scheduled Settlements | 0 | 0 |
Early Terminations | (650,000,000) | (325,000,000) |
End of Period | 2,850,000,000 | 3,525,000,000 |
5-year U.S. Treasury Note Futures | ||
Derivative [Line Items] | ||
Beginning of Period | 21,600,000 | |
Additions | 0 | |
Scheduled Settlements | (21,600,000) | |
Early Terminations | 0 | |
End of Period | 0 | |
10-year U.S. Treasury Note Futures | ||
Derivative [Line Items] | ||
Beginning of Period | 320,000,000 | 650,000,000 |
Additions | 440,000,000 | 950,000,000 |
Scheduled Settlements | (390,000,000) | (750,000,000) |
Early Terminations | (155,000,000) | 0 |
End of Period | 215,000,000 | 850,000,000 |
Commitments To Purchase (sell) MBS | ||
Derivative [Line Items] | ||
Beginning of Period | 0 | 1,265,000,000 |
Additions | 2,150,000,000 | 4,255,000,000 |
Scheduled Settlements | (1,250,000,000) | (4,105,000,000) |
Early Terminations | 0 | 0 |
End of Period | $ 900,000,000 | $ 1,415,000,000 |
Derivative Instruments - Cash C
Derivative Instruments - Cash Collateral Posted and Received in Respect of Derivative and Other Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash collateral posted, net | $ 53,446 | $ 61,052 |
U.S. Treasury Note Futures | ||
Cash collateral posted, net | 2,473 | 6,169 |
Interest Rate Swap | ||
Cash collateral posted, net | 50,741 | 54,883 |
Unsettled MBS Trades and TBA Commitments, Net | ||
Cash collateral posted, net | $ 232 | $ 0 |
Offsetting of Financial Asset_3
Offsetting of Financial Assets and Liabilities - Derivative Instruments and Short-term Borrowing Arrangements, including those Subject to Master Netting or Similar Arrangements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative instruments: | |||
Derivative Asset, Gross Amount Recognized | $ 15,248 | $ 438 | |
Derivative Asset, Amount Offset | 0 | 0 | |
Derivative Asset, Net Amount | 15,248 | 438 | |
Derivative Asset, Financial Instruments | [1] | (2,315) | 0 |
Derivative Asset, Cash Collateral | [2] | 0 | (438) |
Derivative Asset, Net amount Total | 12,933 | 0 | |
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 2,346 | 6,959 | |
Derivative Liabilities, Amount Offset | 0 | 0 | |
Derivative Liabilities, Net Amount | 2,346 | 6,959 | |
Derivative Liabilities, Financial Instruments | [1] | (2,315) | 0 |
Derivative Liabilities, Cash Collateral | [2] | 0 | (6,959) |
Derivative Liabilities, Net amount Total | 31 | 0 | |
Derivative Financial Instruments, Liabilities | |||
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 3,966,473 | 3,728,588 | |
Derivative Liabilities, Amount Offset | 0 | 0 | |
Derivative Liabilities, Net Amount | 3,966,473 | 3,728,588 | |
Derivative Liabilities, Financial Instruments | [1] | (3,966,442) | (3,721,629) |
Derivative Liabilities, Cash Collateral | [2] | 0 | (6,959) |
Derivative Liabilities, Net amount Total | 31 | 0 | |
Derivative Financial Instruments, Assets | |||
Derivative instruments: | |||
Derivative Asset, Gross Amount Recognized | 15,248 | 438 | |
Derivative Asset, Amount Offset | 0 | 0 | |
Derivative Asset, Net Amount | 15,248 | 438 | |
Derivative Asset, Financial Instruments | [1] | (2,315) | 0 |
Derivative Asset, Cash Collateral | [2] | 0 | (438) |
Derivative Asset, Net amount Total | 12,933 | 0 | |
Repurchase Agreements | |||
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 3,964,127 | 3,721,629 | |
Derivative Liabilities, Amount Offset | 0 | 0 | |
Derivative Liabilities, Net Amount | 3,964,127 | 3,721,629 | |
Derivative Liabilities, Financial Instruments | [1] | (3,964,127) | (3,721,629) |
Derivative Liabilities, Cash Collateral | [2] | 0 | 0 |
Derivative Liabilities, Net amount Total | 0 | 0 | |
Interest Rate Swap | |||
Derivative instruments: | |||
Derivative Asset, Gross Amount Recognized | 5,143 | ||
Derivative Asset, Amount Offset | 0 | ||
Derivative Asset, Net Amount | 5,143 | 0 | |
Derivative Asset, Financial Instruments | [1] | 0 | |
Derivative Asset, Cash Collateral | [2] | 0 | |
Derivative Asset, Net amount Total | 5,143 | ||
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 5,709 | ||
Derivative Liabilities, Amount Offset | 0 | ||
Derivative Liabilities, Net Amount | 0 | 5,709 | |
Derivative Liabilities, Financial Instruments | [1] | 0 | |
Derivative Liabilities, Cash Collateral | [2] | (5,709) | |
Derivative Liabilities, Net amount Total | 0 | ||
10-year U.S. Treasury Note Futures | |||
Derivative instruments: | |||
Derivative Asset, Gross Amount Recognized | 605 | ||
Derivative Asset, Amount Offset | 0 | ||
Derivative Asset, Net Amount | 605 | 0 | |
Derivative Asset, Financial Instruments | [1] | 0 | |
Derivative Asset, Cash Collateral | [2] | 0 | |
Derivative Asset, Net amount Total | 605 | ||
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 1,250 | ||
Derivative Liabilities, Amount Offset | 0 | ||
Derivative Liabilities, Net Amount | 0 | 1,250 | |
Derivative Liabilities, Financial Instruments | [1] | 0 | |
Derivative Liabilities, Cash Collateral | [2] | (1,250) | |
Derivative Liabilities, Net amount Total | 0 | ||
TBA Commitments | |||
Derivative instruments: | |||
Derivative Asset, Gross Amount Recognized | 9,500 | 438 | |
Derivative Asset, Amount Offset | 0 | 0 | |
Derivative Asset, Net Amount | 9,500 | 438 | |
Derivative Asset, Financial Instruments | [1] | (2,315) | 0 |
Derivative Asset, Cash Collateral | [2] | 0 | (438) |
Derivative Asset, Net amount Total | 7,185 | 0 | |
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 2,346 | ||
Derivative Liabilities, Amount Offset | 0 | ||
Derivative Liabilities, Net Amount | 2,346 | $ 0 | |
Derivative Liabilities, Financial Instruments | [1] | (2,315) | |
Derivative Liabilities, Cash Collateral | [2] | 0 | |
Derivative Liabilities, Net amount Total | $ 31 | ||
[1] | Does not include the fair value amount of financial instrument collateral pledged in respect of repurchase agreements that exceeds the associated liability presented in the consolidated balance sheets. | ||
[2] | Does not include the amount of cash collateral pledged in respect of derivative instruments that exceeds the associated derivative liability presented in the consolidated balance sheets. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Long-term unsecured debt, carrying value | $ 74,160 | $ 74,104 | |
Long-term unsecured debt, Fair Value | 69,370 | 66,562 | |
Cumulative effect increase (net of taxes) in stockholders' equity | $ 4,059 | ||
Private Equity Funds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Investment in equity securities and investment funds measured at fair value | $ 5,876 | $ 6,115 | |
Private Equity Funds | Stock Price to Net Asset Multiple | Fair Value, Inputs, Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Fair value discount rate | 91 | 91 | |
Private Equity Funds | Discount Factor for Lack of Marketability and Control | Fair Value, Inputs, Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Fair value discount rate | 8 | 8 | |
Private Equity Funds | Cost of Equity Discount Rate | Fair Value, Inputs, Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Fair value discount rate | 12 | 12 | |
Private Equity Funds | ASU No. 2016-01 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Cumulative effect increase (net of taxes) in stockholders' equity | $ 4,059 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
MBS | ||
Derivative assets, at fair value | $ 15,248 | $ 438 |
Derivative Liabilities | (2,346) | (6,959) |
Agency MBS | ||
MBS | ||
Fair Value of MBS | 4,192,327 | 3,982,106 |
Private-Label MBS | ||
MBS | ||
Fair Value of MBS | 28 | 24 |
Fair Value, Measurements, Recurring | ||
MBS | ||
Fair Value of MBS | 4,192,355 | 3,982,130 |
Derivative assets, at fair value | 15,248 | 438 |
Derivative Liabilities | (2,346) | (6,959) |
Other assets | 5,876 | 6,115 |
Total | 4,211,133 | 3,981,724 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
MBS | ||
Fair Value of MBS | 0 | 0 |
Derivative assets, at fair value | 605 | 0 |
Derivative Liabilities | 0 | (1,250) |
Other assets | 0 | 0 |
Total | 605 | (1,250) |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
MBS | ||
Fair Value of MBS | 4,192,327 | 3,982,106 |
Derivative assets, at fair value | 14,643 | 438 |
Derivative Liabilities | (2,346) | (5,709) |
Other assets | 0 | 0 |
Total | 4,204,624 | 3,976,835 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
MBS | ||
Fair Value of MBS | 28 | 24 |
Derivative assets, at fair value | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Other assets | 5,876 | 6,115 |
Total | 5,904 | 6,139 |
Fair Value, Measurements, Recurring | Agency MBS | ||
MBS | ||
Trading securities | 4,192,327 | 3,982,106 |
Fair Value, Measurements, Recurring | Agency MBS | Fair Value, Inputs, Level 1 | ||
MBS | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Agency MBS | Fair Value, Inputs, Level 2 | ||
MBS | ||
Trading securities | 4,192,327 | 3,982,106 |
Fair Value, Measurements, Recurring | Agency MBS | Fair Value, Inputs, Level 3 | ||
MBS | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Private-Label MBS | ||
MBS | ||
Trading securities | 28 | 24 |
Fair Value, Measurements, Recurring | Private-Label MBS | Fair Value, Inputs, Level 1 | ||
MBS | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Private-Label MBS | Fair Value, Inputs, Level 2 | ||
MBS | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Private-Label MBS | Fair Value, Inputs, Level 3 | ||
MBS | ||
Trading securities | $ 28 | $ 24 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value of Level 3 Investments that are Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 6,139 | $ 515 |
Investments in equity securities measured at fair value beginning January 1, 2018 | 5,362 | |
Included in investment gain (loss), net | (156) | 52 |
Payments, net | (80) | (7) |
Accretion of discount | 1 | 4 |
Ending balance | 5,904 | 5,926 |
Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date | $ (156) | $ 52 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | May 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Line Items] | |||
Intended annual distribution of taxable income | 100.00% | ||
Required annual distribution of taxable income | 90.00% | ||
Estimated net operating loss carryforwards | $ 14,543 | ||
Net operating loss carryforwards, expiration year | 2028 | ||
Capital loss carryforwards expiration remainder of fiscal year | $ 136,840 | ||
Capital loss carryforwards expiration in year 2020 | 102,927 | ||
Capital loss carryforwards expiration in year 2021 | 70,319 | ||
Capital loss carryforwards expiration in year 2022 | 3,763 | ||
Capital loss carryforwards expiration in year 2023 | 110,317 | ||
Capital loss carryforwards expiration in year 2024 | $ 9,120 | ||
Excess AMT credit carryforwards refundable rate | 50.00% | ||
AMT credit carryforward | $ 9,132 | $ 9,132 | |
Tax Year 2017 | Arlington County, Virginia | |||
Income Tax Disclosure [Line Items] | |||
Tax assessment received for business, professional and occupation license tax | $ 9,380 | ||
Capital Loss Carryforward | |||
Income Tax Disclosure [Line Items] | |||
Tax Credit Carryforward, Amount | $ 433,286 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computations of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average common shares outstanding | 33,053 | 28,197 |
Performance share units and unvested restricted stock | 86 | |
Diluted weighted-average common shares outstanding | 33,139 | 28,197 |
Net income (loss) available (attributable) to common stock | $ 17,316 | $ (56,520) |
Basic earnings (loss) per common share | $ 0.52 | $ (2) |
Diluted earnings (loss) per common share | $ 0.52 | $ (2) |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
Restricted Stock and Performance Shares | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 233 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | Mar. 12, 2019USD ($)$ / sharesshares | Feb. 22, 2019USD ($)$ / sharesshares | Jun. 01, 2009 | Mar. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018shares | Dec. 31, 2018$ / sharesshares | Mar. 21, 2019shares | Aug. 10, 2018shares | May 16, 2017shares | Feb. 22, 2017shares |
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Dividend payable date | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | ||||||||
Shareholder Rights Plan | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Rights plan, amended term of agreement | 3 years | ||||||||||||
Common Class A | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 | 450,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Common Stock Voting Rights Per Share Owned | 1 | ||||||||||||
Common stock, shares outstanding (in shares) | 36,572,617 | 30,497,998 | 30,497,998 | ||||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1,951,305 | ||||||||||||
Common Class A | Maximum | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,000,000 | ||||||||||||
Common Class A | Minimum | Shareholder Rights Plan | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Percentage of beneficial ownership of common stock | 4.90% | ||||||||||||
Common Class A | Common Stock | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Issuance of stock (in shares) | 6,000,000 | 6,000,000 | |||||||||||
Public Offering Price Per Share | $ / shares | $ 8.16 | ||||||||||||
Net proceeds underwriting discounts and commissions and expenses | $ | $ 48,810 | ||||||||||||
Repurchase of Class A common stock (in shares) | 0 | 0 | |||||||||||
Common Class A | Common Stock | Amended Equity Distribution Agreements | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Number of Shares Offer and Sell | 11,302,160 | ||||||||||||
Common Class A | Common Stock | Maximum | Equity Distribution Agreements | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Number of Shares Offer and Sell | 6,000,000 | ||||||||||||
Common Class A | Common Stock | Maximum | Amended Equity Distribution Agreements | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Number of Shares Offer and Sell | 12,597,423 | ||||||||||||
Common Class B | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Common stock, shares authorized (in shares) | 100,000,000 | ||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||
Common Stock Voting Rights Per Share Owned | 3 | ||||||||||||
Common stock, shares outstanding (in shares) | 0 | 0 | 0 | ||||||||||
7.00 % Series B Cumulative Perpetual Redeemable Preferred Stock | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Preferred stock, shares authorized (in shares) | 2,000,000 | ||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||
Series C Preferred Stock | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Public Offering Price Per Share | $ / shares | $ 25 | ||||||||||||
Net proceeds underwriting discounts and commissions and expenses | $ | $ 28,880 | ||||||||||||
Preferred stock, shares authorized (in shares) | 2,500,000 | ||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Preferred stock, dividend rate percentage | 8.25% | ||||||||||||
Preferred stock voting rights per share owned | 0 | ||||||||||||
Preferred stock, liquidation preference per share | $ / shares | $ 25 | ||||||||||||
Preferred stock, redeemable price per share | $ / shares | $ 25 | ||||||||||||
Preferred stock, dividend payment terms | Dividends will be payable quarterly in arrears on the 30th day of March, June, September and December of each year, when and as declared, beginning on June 30, 2019. | ||||||||||||
Preferred stock, annual dividend rate per share | $ / shares | $ 2.0625 | ||||||||||||
Preferred stock, rate conversion date | Mar. 30, 2024 | ||||||||||||
Preferred stock, first long dividend rate per share | $ / shares | $ 0.61875 | ||||||||||||
Dividend payable date | Jun. 30, 2019 | ||||||||||||
Series C Preferred Stock | LIBOR | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Preferred stock, variable dividend spread rate | 5.664% | ||||||||||||
Series C Preferred Stock | Preferred Stock | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Issuance of stock (in shares) | 1,200,000 | 1,200,000 | |||||||||||
Undesignated Preferred Stock | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Preferred stock, shares authorized (in shares) | 20,400,000 | ||||||||||||
Series A Preferred Stock | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Preferred stock, shares authorized (in shares) | 100,000 | ||||||||||||
Preferred stock shares unissued | 100,000 | ||||||||||||
Series B Preferred Stock | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Preferred stock, dividend rate percentage | 7.00% | ||||||||||||
Preferred stock voting rights per share owned | 0 | ||||||||||||
Preferred stock, liquidation preference per share | $ / shares | $ 25 | ||||||||||||
Preferred stock, redeemable price per share | $ / shares | $ 25 | ||||||||||||
Preferred stock, redemption date | May 12, 2022 | ||||||||||||
Preferred stock, dividend payment terms | Dividends are payable quarterly in arrears on the 30th day of March, June, September and December of each year, when and as declared. | ||||||||||||
Preferred stock, annual dividend rate per share | $ / shares | $ 1.75 | ||||||||||||
Series B Preferred Stock | Preferred Stock | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Issuance of stock (in shares) | 2,035 | 19,431 | |||||||||||
Series B Preferred Stock | Preferred Stock | Series B Preferred Equity Distribution Agreement | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Issuance of stock (in shares) | 2,035 | 47,304 | |||||||||||
Number of Shares Offer and Sell | 1,647,370 | ||||||||||||
Series B Preferred Stock | Preferred Stock | Maximum | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Number of Shares Offer and Sell | 1,865,000 | ||||||||||||
Series B Preferred Stock | Preferred Stock | Maximum | Series B Preferred Equity Distribution Agreement | |||||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||||
Number of Shares Offer and Sell | 1,647,370 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared and Paid (Details) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | |||||
Dividend Amount (in dollars per share) | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.55 |
Declaration Date | Mar. 18, 2019 | Dec. 13, 2018 | Sep. 13, 2018 | Jun. 14, 2018 | Mar. 15, 2018 |
Record Date | Mar. 29, 2019 | Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 29, 2018 |
Pay Date | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 |
Stockholders' Equity - Issuance
Stockholders' Equity - Issuances of Stock under Equity Distribution Agreements (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 22, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Common Class A | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Shares issued | 6,000,000 | 6,000,000 | |||
Common Class A | Common Stock | Common Equity Distribution Agreements | |||||
Class Of Stock [Line Items] | |||||
Shares issued | 2,226,557 | ||||
Weighted average public offering price | $ 10.19 | ||||
Net proceeds | [1] | $ 22,326 | |||
Series B Preferred Stock | Preferred Stock | |||||
Class Of Stock [Line Items] | |||||
Shares issued | 2,035 | 19,431 | |||
Series B Preferred Stock | Preferred Stock | Series B Preferred Equity Distribution Agreement | |||||
Class Of Stock [Line Items] | |||||
Shares issued | 2,035 | 47,304 | |||
Weighted average public offering price | $ 22.56 | $ 24.75 | |||
Net proceeds | [1] | $ 45 | $ 1,137 | ||
[1] | Net of selling commissions and expenses. |