Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Arlington Asset Investment Corp. | ||
Entity Central Index Key | 0001209028 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity File Number | 001-34374 | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 54-1873198 | ||
Entity Public Float | $ 247 | ||
Entity Address, Address Line One | 6862 Elm Street | ||
Entity Address, Address Line Two | Suite 320 | ||
Entity Address, City or Town | McLean | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22101 | ||
City Area Code | 703 | ||
Local Phone Number | 373-0200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Documents incorporated by reference: Portions of the registrant’s Definitive Proxy Statement for the 2020 Annual Meeting of Shareholders (to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year end) are incorporated by reference in this Annual Report on Form 10-K in response to Part II, Item 5 and Part III, Items 10, 11, 12, 13 and 14. | ||
Class A Common | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 36,815,761 | ||
Title of 12(b) Security | Class A Common Stock | ||
Security Exchange Name | NYSE | ||
Trading Symbol | AI | ||
Common Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 | ||
7.00% Series B Cumulative Perpetual Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 7.00% Series B Cumulative Perpetual Redeemable Preferred Stock | ||
Security Exchange Name | NYSE | ||
Trading Symbol | AI PrB | ||
8.250% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 8.250% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Security Exchange Name | NYSE | ||
Trading Symbol | AI PrC | ||
6.625% Senior Notes due 2023 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 6.625% Senior Notes due 2023 | ||
Security Exchange Name | NYSE | ||
Trading Symbol | AIW | ||
6.75% Senior Notes due 2025 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 6.75% Senior Notes due 2025 | ||
Security Exchange Name | NYSE | ||
Trading Symbol | AIC |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 19,636 | $ 26,713 |
Interest receivable | 10,663 | 13,349 |
Sold securities receivable | 71,199 | |
Mortgage loans, at fair value | 45,000 | |
Derivative assets, at fair value | 1,417 | 438 |
Deposits | 37,123 | 61,052 |
Other assets | 13,079 | 15,768 |
Total assets | 4,000,114 | 4,099,450 |
Liabilities: | ||
Repurchase agreements | 3,581,237 | 3,721,629 |
Interest payable | 4,666 | 4,646 |
Accrued compensation and benefits | 3,626 | 3,732 |
Dividend payable | 8,494 | 11,736 |
Derivative liabilities, at fair value | 8 | 6,959 |
Other liabilities | 507 | 2,200 |
Long-term unsecured debt | 74,328 | 74,104 |
Total liabilities | 3,672,866 | 3,825,006 |
Commitments and contingencies (Note 12) | ||
Stockholders’ Equity: | ||
Additional paid-in capital | 2,049,292 | 1,997,876 |
Accumulated deficit | (1,759,626) | (1,731,982) |
Total stockholders’ equity | 327,248 | 274,444 |
Total liabilities and stockholders’ equity | 4,000,114 | 4,099,450 |
Agency MBS | ||
ASSETS | ||
Mortgage-backed securities, at fair value | 3,768,496 | 3,982,106 |
Liabilities: | ||
Repurchase agreements | 3,560,139 | 3,721,629 |
Non-Agency MBS | ||
ASSETS | ||
Mortgage-backed securities, at fair value | 33,501 | 24 |
Liabilities: | ||
Repurchase agreements | 21,098 | |
Series B Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | 8,270 | 8,245 |
Series C Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | 28,944 | |
Common Class A | ||
Stockholders’ Equity: | ||
Common stock | $ 368 | $ 305 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 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) | 354,039 | 350,595 |
Preferred stock, outstanding (in shares) | 354,039 | 350,595 |
Preferred stock, liquidation preference | $ 8,851 | $ 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) | 36,755,387 | 30,497,998 |
Common stock, shares outstanding (in shares) | 36,755,387 | 30,497,998 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income | |||
Mortgage loans | $ 8 | ||
Other | 1,059 | $ 675 | $ 179 |
Total interest income | 123,478 | 130,953 | 121,248 |
Interest expense | |||
Total interest expense | 97,250 | 84,825 | 51,514 |
Net interest income | 26,228 | 46,128 | 69,734 |
Investment advisory fee income | 332 | ||
Investment gain (loss), net | |||
Gain (loss) on trading investments, net | 128,029 | (114,522) | 2,424 |
(Loss) gain from derivative instruments, net | (126,190) | (9,657) | 3,224 |
Other, net | 358 | 357 | 226 |
Total investment gain (loss), net | 2,197 | (123,822) | 5,874 |
General and administrative expenses | |||
Compensation and benefits | 10,194 | 8,329 | 13,203 |
Other general and administrative expenses | 4,821 | 5,041 | 5,367 |
Total general and administrative expenses | 15,015 | 13,370 | 18,570 |
Income (loss) before income taxes | 13,742 | (91,064) | 57,038 |
Income tax provision | 733 | 39,603 | |
Net income (loss) | 13,742 | (91,797) | 17,435 |
Dividend on preferred stock | (2,600) | (590) | (251) |
Net income (loss) available (attributable) to common stock | $ 11,142 | $ (92,387) | $ 17,184 |
Basic earnings (loss) per common share | $ 0.31 | $ (3.18) | $ 0.67 |
Diluted earnings (loss) per common share | $ 0.31 | $ (3.18) | $ 0.66 |
Weighted-average common shares outstanding (in thousands) | |||
Basic | 35,709 | 29,052 | 25,649 |
Diluted | 35,833 | 29,052 | 26,011 |
Secured Debt | |||
Interest expense | |||
Short-term debt | $ 92,200 | $ 79,812 | $ 46,648 |
Unsecured Debt | |||
Interest expense | |||
Long-term debt | 5,050 | 5,013 | 4,866 |
Agency MBS | |||
Interest income | |||
Mortgage-backed securities | 122,227 | 130,258 | 120,968 |
Non-Agency MBS | |||
Interest income | |||
Mortgage-backed securities | 184 | 20 | 101 |
Investment gain (loss), net | |||
Gain (loss) on trading investments, net | $ (152) | $ (42) | $ 58 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Class A | Preferred Stock | Preferred StockSeries B Preferred Stock | Preferred StockSeries C Preferred Stock | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Accumulated Deficit |
Balances at Dec. 31, 2016 | $ 358,813 | $ 236 | $ 1,910,284 | $ (1,551,707) | |||||
Balance (in shares) at Dec. 31, 2016 | 23,607,111 | 20,256 | |||||||
Net Income (loss) | 17,435 | 17,435 | |||||||
Conversion of Class B common stock to Class A common stock (in shares) | 20,256 | (20,256) | |||||||
Issuance of stock | $ 61,213 | $ 7,108 | $ 7,108 | $ 45 | 61,168 | ||||
Issuance of stock (in shares) | 303,291 | 4,472,083 | |||||||
Issuance of Class A common stock under stock-based compensation plans (in shares) | 74,000 | ||||||||
Repurchase of Class A common stock under stock-based compensation plans | (437) | (437) | |||||||
Repurchase of Class A common stock under stock-based compensation plans (in shares) | (32,729) | ||||||||
Stock-based compensation | 3,926 | 3,926 | |||||||
Dividends declared | (61,741) | (61,741) | |||||||
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) | (91,797) | (91,797) | |||||||
Issuance of stock | 22,326 | 1,137 | $ 1,137 | $ 23 | 22,303 | ||||
Issuance of stock (in shares) | 47,304 | 2,226,557 | |||||||
Issuance of Class A common stock under stock-based compensation plans | 124 | $ 1 | 123 | ||||||
Issuance of Class A common stock under stock-based compensation plans (in shares) | 164,585 | ||||||||
Repurchase of Class A common stock under stock-based compensation plans | (327) | (327) | |||||||
Repurchase of Class A common stock under stock-based compensation plans (in shares) | (33,865) | ||||||||
Cumulative-effect of accounting change (see Note 10) | 4,059 | 4,059 | |||||||
Stock-based compensation | 836 | 836 | |||||||
Dividends declared | (48,231) | (48,231) | |||||||
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) | 13,742 | 13,742 | |||||||
Issuance of stock | $ 48,794 | $ 28,969 | $ 25 | $ 28,944 | $ 60 | 48,734 | |||
Issuance of stock (in shares) | 3,444 | 1,200,000 | 6,000,000 | ||||||
Issuance of Class A common stock under stock-based compensation plans | 109 | $ 3 | 106 | ||||||
Issuance of Class A common stock under stock-based compensation plans (in shares) | 294,014 | ||||||||
Repurchase of Class A common stock under stock-based compensation plans | (204) | (204) | |||||||
Repurchase of Class A common stock under stock-based compensation plans (in shares) | (36,625) | ||||||||
Stock-based compensation | 2,780 | 2,780 | |||||||
Dividends declared | (41,386) | (41,386) | |||||||
Balances at Dec. 31, 2019 | $ 327,248 | $ 8,270 | $ 28,944 | $ 368 | $ 2,049,292 | $ (1,759,626) | |||
Balances (In shares) at Dec. 31, 2019 | 354,039 | 1,200,000 | 36,755,387 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income (loss) | $ 13,742 | $ (91,797) | $ 17,435 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Total investment (gain) loss, net | (2,197) | 123,822 | (5,874) |
Net premium amortization on mortgage-backed securities | 26,463 | 31,796 | 33,353 |
Deferred tax provision | 733 | 38,897 | |
Other | 2,932 | 870 | 3,497 |
Changes in operating assets | |||
Interest receivable | 2,686 | (803) | (900) |
Other assets | 4,539 | (116) | 717 |
Changes in operating liabilities | |||
Interest payable and other liabilities | (1,494) | 527 | 1,296 |
Accrued compensation and benefits | (106) | (1,283) | (391) |
Net cash provided by operating activities | 46,565 | 63,749 | 88,030 |
Cash flows from investing activities | |||
Purchases of mortgage loans | (45,000) | ||
Proceeds from sales of non-agency mortgage-backed securities | 1,268 | ||
Proceeds from sales of agency mortgage-backed securities | 4,028,260 | 2,387,180 | 2,482,703 |
Receipt of principal payments on non-agency mortgage-backed securities | 2 | 8 | 17 |
Receipt of principal payments on agency mortgage-backed securities | 519,533 | 484,621 | 480,661 |
(Payments for) proceeds from derivatives and deposits, net | (112,027) | (8,712) | 24,674 |
Other | 31 | 21 | 432 |
Net cash provided by (used in) investing activities | 53,504 | (82,641) | (147,680) |
Cash flows from financing activities | |||
(Repayments of) proceeds from repurchase agreements, net | (140,392) | 54,448 | 18,079 |
Proceeds from issuance of common stock | 48,796 | 22,326 | 61,213 |
Proceeds from issuance of preferred stock | 28,970 | 1,137 | 7,108 |
Dividends paid | (44,520) | (53,920) | (59,930) |
Net cash (used in) provided by financing activities | (107,146) | 23,991 | 26,470 |
Net (decrease) increase in cash and cash equivalents | (7,077) | 5,099 | (33,180) |
Cash and cash equivalents, beginning of year | 26,713 | 21,614 | 54,794 |
Cash and cash equivalents, end of year | 19,636 | 26,713 | 21,614 |
Supplemental cash flow information | |||
Cash payments for interest | 97,006 | 84,373 | 50,306 |
Cash payments for taxes | 8 | 28 | |
Cash receipt for refund of prior alternative minimum tax payments | 4,566 | ||
Non-Agency MBS | |||
Cash flows from investing activities | |||
Purchases of mortgage-backed securities | (33,484) | ||
Agency MBS | |||
Cash flows from investing activities | |||
Purchases of mortgage-backed securities | $ (4,303,811) | $ (2,945,759) | $ (3,137,435) |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1. Organization and Nature of Operations 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 mortgage investments generally consisting of agency mortgage-backed securities (“MBS”) and mortgage credit investments. The Company’s 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”). The Company’s mortgage credit investments may include investments in mortgage loans secured by either residential or commercial real property or MBS collateralized by such mortgage loans, which the Company refers to as non-agency MBS. The principal and interest of the Company’s mortgage credit investments are not guaranteed by a GSE or a U.S. government agency. Arlington Asset is a Virginia corporation that is internally managed and does not have an external investment advisor. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 2. Basis of Presentation The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and 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 materially from these estimates. Certain prior period amounts in the consolidated financial statements and the accompanying notes 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 | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3. 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 December 31, 2019 and 2018, approximately 97% and 99%, respectively, 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. Interest Income Recognition for Investments in Non-Agency MBS The Company recognizes interest income for its investments in non-agency MBS by applying the prospective level-yield methodology required by GAAP for securitized financial assets that are either not of high credit quality at the time of acquisition or can be contractually prepaid or otherwise settled in such a way that the Company would not recover substantially all of its recorded investment. The amount of periodic interest income recognized is determined by applying the security’s effective interest rate to its amortized cost basis (or “reference amount”). At the time of acquisition, the security’s effective interest rate is calculated by solving for the single discount rate that equates the present value of the Company’s best estimate of the amount and timing of the cash flows expected to be collected from the security to its purchase price. To prepare its best estimate of cash flows expected to be collected, the Company develops a number of assumptions about the future performance of the pool of mortgage loans that serve as collateral for its investment, including assumptions about the timing and amount of prepayments and credit losses. In each subsequent quarterly reporting period, the amount and timing of cash flows expected to be collected from the security are re-estimated based upon current information and events. The following table provides a description of how periodic changes in the estimate of cash flows expected to be collected affect interest income recognition prospectively for investments in non-agency MBS: Scenario: Effect on Interest Income Recognition for Investments in Non-Agency MBS: A positive change in cash flows occurs. Actual cash flows exceed prior estimates and/or a positive change occurs in the estimate of expected remaining cash flows. A revised effective interest rate is calculated and applied prospectively such that the positive change in cash flows is recognized as incremental interest income over the remaining life of the security. The amount of periodic interest income recognized over the remaining life of the security will be reduced accordingly. Specifically, if an adverse change in cash flows occurs for a security that is impaired (that is, its fair value is less than its reference amount), the reference amount to which the security’s existing effective interest rate will be prospectively applied will be reduced to the present value of cash flows expected to be collected, discounted at the security’s existing effective interest rate. If an adverse change in cash flows occurs for a security that is not impaired, the security’s effective interest rate will be reduced accordingly and applied on a prospective basis. An adverse change in cash flows occurs. Actual cash flows fall short of prior estimates and/or an adverse change occurs in the estimate of expected remaining cash flows. 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 table presents the computations of basic and diluted earnings (loss) per share for the periods indicated: Year Ended December 31, (Shares in thousands) 2019 2018 2017 Basic weighted-average common shares outstanding 35,709 29,052 25,649 Performance share units and unvested restricted stock 124 — 362 Diluted weighted-average common shares outstanding 35,833 29,052 26,011 Net income (loss) available (attributable) to common stock $ 11,142 $ (92,387 ) $ 17,184 Basic earnings (loss) per common share $ 0.31 $ (3.18 ) $ 0.67 Diluted earnings (loss) per common share $ 0.31 $ (3.18 ) $ 0.66 The diluted loss per share for the year ended December 31, 2018 did not include the antidilutive effect of 216,238 shares of unvested shares of restricted stock and performance share units. Other Significant Accounting Policies The Company’s other significant accounting policies are described in the following notes: Investments in agency MBS, subsequent measurement Note 4 Investments in non-agency MBS, subsequent measurement Note 5 Investments in mortgage loans, subsequent measurement Note 6 Borrowings Note 7 To-be-announced agency MBS transactions, including “dollar rolls” Note 8 Derivative instruments Note 8 Balance sheet offsetting Note 9 Fair value measurements Note 10 Income taxes Note 11 Stock-based compensation Note 14 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 December 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 not 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 or loans that are measured at fair value with changes in fair value recognized in current period earnings. January 1, 2020 As of December 31, 2019, all of the Company’s investments in debt securities and loans are measured at fair value with changes in fair value recognized in current period earnings. 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 | 12 Months Ended |
Dec. 31, 2019 | |
Agency MBS | |
Investments in MBS | Note 4. Investments in Agency MBS The Company has elected to classify its investments in agency MBS as trading securities. Accordingly, the Company’s investments in agency MBS are reported in the accompanying consolidated balance sheets at fair value. As of December 31, 2019 and 2018, the fair value of the Company’s investments in agency MBS were $3,768,496 and $3,982,106, respectively. As of December 31, 2019 and 2018, all of 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 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: Year Ended December 31, 2019 2018 2017 Net gains (losses) recognized in earnings for: Agency MBS still held at period end $ 37,851 $ (59,676 ) $ (1,621 ) Agency MBS sold during the period 90,330 (54,804 ) 3,987 Total $ 128,181 $ (114,480 ) $ 2,366 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 8. Derivative Instruments” for further information about dollar rolls. |
Investments in Non-Agency MBS
Investments in Non-Agency MBS | 12 Months Ended |
Dec. 31, 2019 | |
Non-Agency MBS | |
Investments in MBS | Note 5. Investments in Non-Agency MBS The Company has elected to classify its investments in non-agency MBS as trading securities. Accordingly, the Company’s investments in non-agency MBS are reported in the accompanying consolidated balance sheets at fair value. As of December 31, 2019 and 2018, the fair value of the Company’s investments in non-agency MBS were $33,501 and $24, respectively. As of December 31, 2019, substantially all of the Company’s investments in non-agency MBS represent beneficial interests in mortgages on commercial real property (commercial MBS or “CMBS”). The majority of the Company’s investments in CMBS represent initial issuances of “mezzanine” interests in an underlying commercial mortgage loan (or an underlying pool of commercial mortgage loans). The underlying commercial mortgage loans generally have initial interest-only periods. After the initial interest-only period, the terms of the underlying mortgage loan may require the entire principal amount to be repaid in a lump sum at loan maturity (known as a “balloon” payment) or they may require principal to be repaid over an amortization period. The majority of the mortgage loans that serve as collateral for the Company’s investments in CMBS carry prepayment penalties or yield maintenance provisions that are generally designed such that, in the event of prepayment, the investor is able to attain an investment yield comparable to that which would have been attained had the borrower made all contractual interest payments through the contractual maturity date of the loan. Credit losses incurred on the underlying mortgage loans collateralizing the Company’s investments in mezzanine CMBS are allocated on a “reverse sequential” basis. Accordingly, any credit losses realized on the underlying mortgage loans are first absorbed by the beneficial interests subordinate to the Company’s CMBS, to the extent of their respective principal balance, prior to being allocated to Company’s investments. Periodic interest accrues on each security’s outstanding principal balance at its contractual coupon rate. All periodic changes in the fair value of non-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 non-agency MBS: Year Ended December 31, 2019 2018 2017 Net gains (losses) recognized in earnings for: Non-agency MBS still held at period end $ (152 ) $ (42 ) $ 58 Non-agency MBS sold during the period — — — Total $ (152 ) $ (42 ) $ 58 |
Investments in Mortgage Loans
Investments in Mortgage Loans | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments in Mortgage Loans | Note 6. Investments in Mortgage Loans On December 31, 2019, the Company acquired a $45,000 mortgage loan secured by a first lien position in healthcare facilities. The mortgage loan bears interest at a quarterly floating note rate equal to one-month LIBOR plus 4.25% with a note rate floor of 6.25%. The maturity date of the loan is December 31, 2021 with a one-year extension available at the option of the borrower. The mortgage loan has an initial interest-only period of one year followed by principal amortization based upon a 30-year amortization schedule beginning in 2021 with the remaining principal balance due at loan maturity. The Company recognizes interest income on its mortgage loan investment based upon the contractual note rate of the loan. The Company has elected to account for its mortgage loan investment at fair value on a recurring basis with periodic changes in fair value recognized as a component of “investment gain (loss), net” in the accompanying consolidated statements of comprehensive income. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 7. 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 December 31, 2019 and 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: December 31, 2019 December 31, 2018 Pledged with agency MBS: Repurchase agreements outstanding $ 3,560,139 $ 3,721,629 Agency MBS collateral, at fair value (1) 3,741,399 3,931,232 Net amount (2) 181,260 209,603 Weighted-average rate 2.10 % 2.72 % Weighted-average term to maturity 23.7 days 17.3 days Pledged with non-agency MBS: Repurchase agreements outstanding $ 21,098 $ — Non-agency MBS collateral, at fair value 30,747 — Net amount (2) 9,649 — Weighted-average rate 3.11 % — Weighted-average term to maturity 8.1 days — Total MBS: Repurchase agreements outstanding $ 3,581,237 $ 3,721,629 MBS collateral, at fair value (1) 3,772,146 3,931,232 Net amount (2) 190,909 209,603 Weighted-average rate 2.11 % 2.72 % Weighted-average term to maturity 23.6 days 17.3 days (1) As of December 31, 2019, includes $71,284 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. 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. (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 years ended December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Weighted-average outstanding balance $ 3,690,093 $ 3,817,870 Weighted-average rate 2.46 % 2.06 % Long-Term Unsecured Debt As of December 31, 2019 and 2018, the Company had $74,328 and $74,104, respectively, of outstanding long-term unsecured debentures, net of unamortized debt issuance costs of $972 and $1,196, respectively. The Company’s long-term unsecured debentures consisted of the following as of the dates indicated: December 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 % 4.74 % 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 | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 8. 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 hedging instruments 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: December 31, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Interest rate swaps $ 1,417 $ (8 ) $ — $ (5,709 ) 10-year U.S. Treasury note futures — — — (1,250 ) TBA commitments — — 438 — Total $ 1,417 $ (8 ) $ 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 December 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 $ 2,050,000 1.77% 1.92% 0.15% 1.6 $ 83 3 to less than 7 years 510,000 1.61% 1.92% 0.31% 6.0 439 7 to less than 10 years 400,000 2.24% 1.91% (0.33)% 9.5 715 10 or more years 25,000 2.96% 1.90% (1.06)% 28.2 172 Total / weighted-average $ 2,985,000 1.81% 1.92% 0.11% 3.6 $ 1,409 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 may purchase or sell exchange-traded U.S. Treasury note futures with the objective of economically hedging a portion of its interest rate risk. 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 U.S. Treasury note and the contractual sale price inherent to the futures contract, or to physically settle the contract by delivering the underlying U.S. Treasury note. Options on 10-year U.S. Treasury Note Futures The Company may purchase or sell exchange-traded options on 10-year U.S. Treasury note futures contracts with the objective of economically hedging a portion of the sensitivity of its investments in agency MBS to significant changes in interest rates. The Company may purchase put options which provide the Company with the right to sell 10-year U.S. Treasury note futures to a counterparty, and the Company may also write call options that provide a counterparty with the option to buy 10-year U.S. Treasury note futures from the Company. In order to limit its exposure on its interest rate derivative instruments from a significant decline in long-term interest rates, the Company may also purchase contracts that provide the Company with the option to buy, or call, 10-year U.S. Treasury note futures from a counterparty. The options may be exercised at any time prior to their expiry, and if exercised, may be net settled in cash or through physical receipt or delivery of the underlying futures contracts . As of December 31, 2019 and 2018, the Company had no outstanding options on 10-year U.S. Treasury note futures contracts. TBA Commitments As of December 31, 2019, the Company had no outstanding TBA commitments. The following tables present information about the Company’s TBA commitments as of the date indicated: 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 table provides information about the derivative gains and losses recognized within the periods indicated: For the Year Ended December 31, 2019 2018 Interest rate hedging instruments: Interest rate swaps: Net interest income (1) $ 15,087 $ 6,266 Unrealized losses, net (66,737 ) (30,064 ) (Losses) gains realized upon early termination, net (78,569 ) 49,192 Total interest rate swap (losses) gains, net (130,219 ) 25,394 U.S. Treasury note futures, net (16,421 ) 8,647 Options on U.S. Treasury note futures, net 76 — Total interest rate hedging instruments (losses) gains, net (146,564 ) 34,041 TBA and specified agency MBS commitments: TBA dollar roll income (2) 4,470 20,929 Other gains (losses) on agency MBS commitments, net 15,904 (64,627 ) Total gains (losses) on agency MBS commitments, net 20,374 (43,698 ) Total derivative losses, net $ (126,190 ) $ (9,657 ) (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 Year Ended December 31, 2019 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,100,000 $ 2,010,000 $ (375,000 ) $ (1,750,000 ) $ 2,985,000 2-year U.S. Treasury note futures — 139,000 (139,000 ) — — 10-year U.S. Treasury note futures 320,000 826,600 (885,000 ) (261,600 ) — Sold call options on 10-year Treasury note futures — 250,000 (250,000 ) — — Purchased call options on 10-year Treasury note futures — 500,000 (500,000 ) — — Commitments to purchase (sell) MBS, net — 5,970,000 (5,970,000 ) — — For the Year Ended December 31, 2018 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,600,000 $ 1,400,000 $ — $ (1,900,000 ) $ 3,100,000 5-year U.S. Treasury note futures 21,600 — (21,600 ) — — 10-year U.S. Treasury note futures 650,000 3,120,000 (3,200,000 ) (250,000 ) 320,000 Commitments to purchase (sell) MBS, net 1,265,000 13,320,000 (14,585,000 ) — — Cash Collateral Posted and Received for Derivative Instruments 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” in the accompanying consolidated balance sheets, for the dates indicated: December 31, 2019 December 31, 2018 Cash collateral posted for: Interest rate swaps (cash initial margin) $ 37,122 $ 54,883 U.S. Treasury note futures (cash initial margin) — 6,169 Unsettled MBS trades and TBA commitments, net 1 — Total cash collateral posted, net $ 37,123 $ 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 | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting of Financial Assets and Liabilities | Note 9. 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 December 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 $ 1,417 $ — $ 1,417 $ — $ — $ 1,417 Total derivative instruments 1,417 — 1,417 — — 1,417 Total assets $ 1,417 $ — $ 1,417 $ — $ — $ 1,417 Liabilities: Derivative instruments: Interest rate swaps $ 8 $ — $ 8 $ (8 ) $ — $ — Total derivative instruments 8 — 8 (8 ) — — Repurchase agreements 3,581,237 — 3,581,237 (3,581,237 ) — — Total liabilities $ 3,581,245 $ — $ 3,581,245 $ (3,581,245 ) $ — $ — 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 | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10. 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 investments 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. Non-agency MBS - Substantially all of the Company’s investments in non-agency MBS are CMBS that are classified within Level 2 of the fair value hierarchy. Inputs to fair value measurements of the Company’s investments in CMBS include quoted prices for similar assets in recent market transactions and estimates obtained from third-party pricing sources including pricing services and dealers. In determining fair value, third-party pricing sources use a market approach. The inputs used in the fair value measurements performed by third-party pricing sources are based upon observable transactions for CMBS with similar characteristics. The Company reviews and performs procedures the third-party fair value estimates and performs procedures to validate their reasonableness, including comparisons to recent trading activity observed for similar securities as well as a comparison to an internally derived discounted future flow measurement. Mortgage loans – The Company’s mortgage loan investment is classified within Level 3 of the fair value hierarchy. The fair value of the Company’s mortgage loan investment as of December 31, 2019 is based upon its price of acquisition, which occurred on the measurement date. Prospectively, fair value measurements for the Company’s mortgage loan investment will be based upon unobservable inputs which will require the Company to make judgments about the assumptions that a market participant would use . 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 commitment under measurement. Other Long-term unsecured debt - As of December 31, 2019 and 2018, the carrying value of the Company’s long-term unsecured debt was $74,328 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 $70,429 and $66,562 as of December 31, 2019 and 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 December 31, 2019and December 31, 2018, the Company had investments in equity securities and investment funds measured at fair value of $6,375 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 December 31, 2019, 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 95 percent, 9 percent, and 12 percent, respectively. As of 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 December 31, 2019 and 2018. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. December 31, 2019 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 3,768,496 $ — $ 3,768,496 $ — Non-agency MBS 33,501 — 33,478 23 Total MBS 3,801,997 — 3,801,974 23 Mortgage loans 45,000 — — 45,000 Derivative assets 1,417 — 1,417 — Derivative liabilities (8 ) — (8 ) — Other assets 6,375 — — 6,375 Total $ 3,854,781 $ — $ 3,803,383 $ 51,398 December 31, 2018 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 3,982,106 $ — $ 3,982,106 $ — Non-agency 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: Year Ended December 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 359 313 Purchases 45,000 — Sales — — Payments, net (123 ) (71 ) Accretion of discount 23 20 Ending balance $ 51,398 $ 6,139 Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date $ 374 $ 313 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. 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 of 1986, as amended (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 real estate investment trust (“REIT”) under the Internal Revenue Code commencing with its taxable year ended December 31, 2019. As a REIT, the Company is 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. Income taxes are provided for using the asset and liability method. Deferred tax assets and liabilities reflect the impact of temporary differences between the carrying amount of assets and liabilities pursuant to the application of GAAP and their respective tax bases and are stated at enacted tax rates expected to be in effect when the taxes are actually paid or recovered. Deferred tax assets are also recorded for net operating loss (“NOL”) carryforwards and net capital loss (“NCL”) carryforwards. A valuation allowance is provided against deferred tax assets if, based upon the Company’s evaluation, it is more-likely-than-not that some or all of the deferred tax assets will not be realized. All available evidence, both positive and negative, is incorporated into the determination of whether a valuation allowance for deferred tax assets is appropriate. Items considered in the valuation allowance determination include expectations of future earnings of the appropriate tax character, recent historical financial results, tax planning strategies, the length of statutory carryforward periods and the expected timing of the reversal of temporary differences. Under the Internal Revenue Code, a REIT is taxed as a C corporation. However, in computing its taxable income, a REIT can deduct dividends paid to arrive at its taxable income. If a REIT distributes all its taxable income within the time limits prescribed by the Internal Revenue Code, the enacted tax rate used to calculate deferred tax assets and liabilities of a REIT is zero. The income tax effects of a REIT conversion for financial reporting purposes are reflected in the period in which all significant actions necessary to qualify as a REIT are completed and the entity has committed to becoming a REIT, including (i) obtaining approval from the appropriate parties, (ii) purging through a distribution to shareholders any accumulated earnings and profits (“E&P”) from its operations as a C corporation, and (iii) having any remaining actions for the Company to achieve REIT status be perfunctory legal and administrative matters. 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 commencing with its taxable year ended December 31, 2019 with no further approvals necessary for the Company to be eligible to be taxed as a REIT. As of December 31, 2018, the Company did not have any accumulated E&P from its operations as a C corporation, and therefore the Company did not need to make any distributions to shareholders of accumulated E&P to qualify as a REIT. Along with continuing to meet ongoing REIT qualification requirements, the only remaining action for the Company to achieve REIT status is to file its federal income tax return for fiscal year 2019 as a REIT on its required filing date. In addition, the Company obtained shareholder approval at its 2019 annual shareholder meeting to amend its articles of incorporation to include customary REIT ownership limitations to facilitate compliance with REIT qualification requirements. Both of these actions are considered perfunctory legal and administrative matters. Accordingly, since all significant actions necessary to qualify as a REIT were met as of December 31, 2018, the Company’s deferred tax assets and liabilities as of that date were adjusted to reflect a tax rate of zero percent expected to be applied in the period in which the deferred tax assets and liabilities are expected to be realized resulting in the elimination of the Company’s deferred tax assets and liabilities as of December 31, 2018. As of December 31, 2019, the Company has distributed all of its estimated taxable income for 2019. Accordingly, the Company does not expect to incur an income tax liability on its 2019 taxable income. For the years ended December 31, 2018 and 2017, the Company determined that it should record a valuation allowance against deferred tax assets that are capital in nature, which consists of NCL carryforwards and temporary GAAP to tax differences that are expected to result in capital losses in future periods, resulting in an increase to the Company’s valuation allowance of $38,128 and $16,761, respectively. The provision for income taxes from operations consists of the following for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Federal $ — $ 562 $ 33,495 State — 171 6,108 Total income tax provision $ — $ 733 $ 39,603 Current $ — $ (1 ) $ 706 Deferred — 734 38,897 Total income tax provision $ — $ 733 $ 39,603 The provision for income taxes results in effective tax rates that differ from the federal statutory rates. The reconciliation of the Company and its subsidiaries’ income tax attributable to “income (loss) before income taxes” computed at federal statutory rates to the provision for income taxes for the years ended December 31, 2019, 2018, and 2017 were as follows: 2019 2018 2017 Federal income tax at statutory rate $ — $ (19,123 ) $ 19,963 State income taxes, net of federal benefit — (4,316 ) 2,224 Change in enacted tax rate — — 409 Change in expected enacted tax rate from REIT conversion — (14,744 ) — Other, net — 788 246 Valuation allowance — 38,128 16,761 Total income tax provision $ — $ 733 $ 39,603 As of December 31, 2019, the Company had estimated NOL carryforwards of $14,588 that can be used to offset future taxable ordinary income. The Company’s NOL carryforwards expire in 2028. As of December 31, 2019, the Company had estimated NCL carryforwards of $283,270 that can be used to offset future net capital gains. The scheduled expirations of the Company’s NCL carryforwards are $102,322 in 2020, $66,862 in 2021, $3,763 in 2022 and $110,323 in 2023. 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 is 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. During the year ended December 31, 2019, the Company received a cash refund of $4,566 of its AMT credit carryforward. As of December 31, 2019 and 2018, the Company had remaining AMT credit carryforwards of $4,566 and $9,132, respectively, 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 December 31, 2019 and 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. The Company is subject to examination by the IRS and state and local authorities in jurisdictions where the Company has significant business operations. The Company’s federal tax returns for 2015 and forward remain subject to examination by the IRS. On May 29, 2018, the Company received an assessment of $9,380 from Arlington County, Virginia for a business, professional and occupation license (“BPOL”) tax for 2018. The BPOL tax is a local privilege tax on a business’ gross receipts for conducting business activities subject to licensure within a county in Virginia. The Company has not been assessed or paid any such BPOL tax prior to 2018. On June 28, 2018, the Company filed an administrative appeal with Arlington County. On August 1, 2018, the Company received a denial of its administrative appeal from Arlington County and, subsequently, the Company filed an administrative appeal with the Tax Commissioner of Virginia (the “Tax Commissioner”) on September 27, 2018. On June 21, 2019, the Company received a determination from the Tax Commissioner stating that he believes the Company is engaged in a licensable privilege subject to the BPOL tax. The Tax Commissioner requested that Arlington County revise its initial BPOL tax assessment to exclude certain gross receipts from its tax calculation. On August 21, 2019, the Company received a revised 2018 BPOL tax assessment of $488, including interest charges, as well as a 2019 BPOL tax assessment of $471 from Arlington County, both of which the Company paid on September 3, 2019. On September 30, 2019, the Company relocated its corporate headquarters from Arlington County to Fairfax County, Virginia. As a result, the Company received a partial refund of its 2019 BPOL tax of $118 from Arlington County while also recognizing a partial year 2019 BPOL tax assessment of $54 to Fairfax County. For the year ended December 31, 2019, the Company recognized an expense of $892 in “other general and administrative expense” which represents the 2018 and 2019 BPOL tax (and associated interest). The Company reserves the right to appeal the Tax Commissioner’s determination through June 2020. BPOL tax for the 2017 year remains subject to examination by Arlington County, although the county has previously informally indicated that it did not intend to pursue assessments for that year at such time. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Contractual Obligations The Company has contractual obligations to make future payments in connection with long-term debt and non-cancelable lease agreements. The following table sets forth these contractual obligations by fiscal year as of December 31, 2019: 2020 2021 2022 2023 2024 Thereafter Total Long-term debt maturities $ — $ — $ — $ 25,000 $ — $ 50,300 $ 75,300 Minimum rental commitments 52 65 55 — — — 172 $ 52 $ 65 $ 55 $ 25,000 $ — $ 50,300 $ 75,472 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Note 13. Shareholders’ 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. The Class A common stock is publicly traded on the New York Stock Exchange under the ticker symbol “AI.” During the year ended December 31, 2017, holders of the Company's Class B common stock converted an aggregate of 20,256 shares of Class B common stock into 20,256 shares of Class A common stock. As of December 31, 2017, all remaining shares of Class B common stock had been exchanged for shares of the Company’s Class A common stock. Common Stock Dividends The Company’s 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 for 2019: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date December 31 $ 0.225 December 13 December 31 February 3, 2020 September 30 0.225 September 17 September 30 October 31 June 30 0.225 June 24 July 5 July 31 March 31 0.375 March 18 March 29 April 30 The Board of Directors approved and the Company declared and paid the following dividends on its common stock 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 $48,827. Common Equity Distribution Agreements On February 22, 2017, the Company entered into separate common 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 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: Year Ended Class A Common Stock Issuances 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 December 31, 2019, the Company had 11,302,160 shares of Class A common stock available for sale under the common 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 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. In May 2017, the Company completed an initial public offering in which 135,000 shares of its Series B Preferred Stock were issued to the public at a public offering price of $24.00 per share for proceeds net of underwriting discounts and commissions and expenses of $3,018. 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. As of December 31, 2019, the Company had declared and paid all required quarterly dividends on the Company’s Series B Preferred Stock. 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 $28,944. 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. Dividends are 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. As of December 31, 2019, the Company had declared and paid all required quarterly dividends on the Company’s Series C Preferred Stock. Preferred Equity Distribution Agreement On May 16, 2017, the Company entered into an 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 with JonesTrading Institutional Services LLC, B. Riley FBR, Inc., Compass Point Research and Trading, LLC and Ladenburg Thalmann & Co. Inc., 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 Series B preferred equity distribution agreement, shares of the Company’s Series B Preferred stock may be offered and sold through the 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 Series B preferred equity distribution agreements for the periods indicated: Year Ended Year Ended Series B Preferred Stock Issuances December 31, 2019 December 31, 2018 Shares issued 3,444 47,304 Weighted average public offering price $ 22.39 $ 24.75 Net proceeds (1) $ 76 $ 1,137 (1) Net of selling commissions and expenses. As of December 31, 2019, the Company had 1,645,961 shares of Series B Preferred stock available for sale under the 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. |
Long-Term Incentive Plan
Long-Term Incentive Plan | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments | Note 14. Long-Term Incentive Plan The Company provides its employees and its non-employee directors with long-term incentive compensation in the form of stock-based awards. On April 7, 2014, the Board of Directors adopted the Arlington Asset Investment Corp. 2014 Long-Term Incentive Plan (the “2014 Plan”), which was approved by the Company’s shareholders and became effective on July 15, 2014. Under the 2014 Plan, a maximum number of 2,000,000 shares of Class A common stock of the Company, subject to adjustment as set forth in the 2014 Plan, were authorized for issuance and may be issued to employees, directors, consultants and advisors of the Company and its affiliates. As of December 31, 2019, 1,274,621 shares remained available for issuance under the 2014 Plan. The 2014 Plan replaced the Arlington Asset Investment Corp. 2011 Long-Term Incentive Plan (the “2011 Plan”). No additional grants will be made under the 2011 Plan. However, previous grants under the 2011 Plan will remain in effect subject to the terms of the 2011 Plan and the applicable award agreement. Under the 2014 Plan, the Compensation Committee of the Company’s Board of Directors may grant restricted stock, restricted stock units (“RSUs”), performance stock units (“PSUs”), stock options, stock appreciation rights (“SARs”) and/or other stock-based awards. However, no participant may be granted (i) stock options or SARs during any twelve-month period covering more than 300,000 shares or (ii) restricted stock, RSUs, PSUs and/or other stock-based awards denominated in shares that are intended to qualify as performance based compensation under Section 162(m) that permit the participant to earn more than 300,000 shares for each twelve months in the vesting or period on which performance is measured (“Performance Period”). These share limits are subject to adjustment in the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split, reverse stock split, spin-off, extraordinary cash dividend or similar transaction or other change in corporate structure affecting the share. In addition, during any calendar year no participant may be granted performance awards that are denominated in cash and that are intended to qualify as performance based compensation under Section 162(m) under which more than $10,000 may be earned for each twelve months in the Performance Period. Each of the individual award limits described in this paragraph will be multiplied by two during the first calendar year in which the participant commences employment with the Company and its affiliates. The 2014 Plan will terminate on the tenth anniversary of its effective date unless sooner terminated by the Board of Directors. Stock-based compensation costs are initially measured at the estimated fair value of the awards on the grant date developed using appropriate valuation methodologies, as adjusted for estimates of future award forfeitures. Valuation methodologies used and subsequent expense recognition is dependent upon each award’s service and performance conditions. Performance Stock Unit Awards Compensation costs for PSUs subject to nonmarket-based performance conditions (i.e. performance not predicated on changes in the Company’s stock price) are measured at the closing stock price on the dates of grant, adjusted for the probability of achieving certain benchmarks included in the performance metrics. These initial cost estimates are recognized as expense over the requisite performance periods, as adjusted for changes in estimated, and ultimately actual, performance and forfeitures. Compensation costs for components of PSUs subject to market-based performance conditions (i.e. performance predicated on changes in the Company’s stock price) are measured at the dates of grant using a Monte Carlo simulation model which incorporates into the valuation the inherent uncertainty regarding the achievement of the market-based performance metrics. These initial valuation amounts are recognized as expense over the requisite performance periods, subject only to adjustments for changes in estimated, and ultimately actual, forfeitures. The Company has granted performance stock units to executive officers of the Company that are convertible into shares of Class A common stock following the applicable performance periods. The performance goals established by the Compensation Committee are based on (i) the compound annualized growth in the Company’s book value per share (i.e., book value change with such adjustments as determined and approved by the Compensation Committee plus dividends on a reinvested basis) during the applicable performance period (“Book Value PSUs’), (ii) the compound annualized total shareholder return (i.e., share price change plus dividends on a reinvested basis) during the applicable performance period (“TSR PSUs”), and (iii) annual return on equity during the applicable performance period (“ROE PSUs’). The Compensation Committee of the Board of Directors of the Company approved the following PSU grants for the periods indicated: December 31, 2019 2018 2017 Book Value PSUs granted 67,935 76,043 57,732 Book Value PSU grant date fair value per share $ 6.83 $ 10.31 $ 13.58 TSR PSUs granted 26,977 32,052 23,787 TSR PSU grant date fair value per share $ 8.60 $ 12.23 $ 16.48 ROE PSUs granted 67,935 76,043 57,732 ROE PSU grant date fair value per share $ 6.83 $ 10.31 $ 13.58 For the Company’s Book Value PSUs and ROE PSUs, the grant date fair value per share is based on the close price on the date of grant. For the Company’s TSR PSUs, the grant date fair value per share is based on a Monte Carlo simulation model. The following assumptions, determined as of the date of grant, were used in the Monte Carlo simulation model to measure the grant date fair value per share of the Company’s TSR PSUs for the periods indicated: TSR PSUs Granted in: 2019 2018 2017 Closing stock price on date of grant $ 6.83 $ 10.31 $ 13.58 Beginning average stock price on date of grant (1) $ 6.90 $ 11.16 $ 14.53 Expected volatility (2) 20.54 % 24.68 % 24.03 % Dividend yield (3) 0.00 % 0.00 % 0.00 % Risk-free rate (4) 1.73 % 2.61 % 1.52 % (1) Based upon the 30 trading days prior to and including the date of grant. (2) Based upon the most recent three-year volatility as of the date of grant. (3) Dividend equivalents are accrued during the performance period and deemed reinvested in additional stock units, which are to be paid out at the end of the performance period to the extent the underlying PSU is earned. Applying dividend yield assumption of 0.00% in the Monte Carlo simulation is mathematically equivalent to reinvesting dividends on a continuous basis and including the value of the dividends in the final payout. (4) Based upon the yield of a U.S. Treasury bond with a three-year maturity as of the date of grant. The vesting of the PSUs is subject to both continued employment under the terms of the award agreement and the achievement of the Company performance goals established by the Compensation Committee. For Book Value PSU and TSR PSU awards granted during the three years ended December 31, 2019, the Compensation Committee established a three-year performance period. The actual number of shares of Class A common stock that will be issued to each participant at the end of the applicable performance period will vary between 0% and 250% of the number of Book Value PSUs and TSR PSUs granted, depending on performance results. If the minimum threshold level of performance goals is not achieved, no Book Value PSUs or TSR PSUs are earned. To the extent the performance results are between the minimum threshold level and maximum level of performance goals, between 50% to 250% of the number of Book Value PSUs and TSR PSUs granted are earned. Upon settlement, vested Book Value PSUs and TSR PSUs are converted into shares of the Company’s Class A common stock on a one-for-one basis. For the ROE PSU awards, the Compensation Committee established a one-year performance period. Any ROE PSUs earned at the end of the one-year performance period would be converted into an equal number of shares of restricted stock that will vest on the third anniversary of the original ROE PSU grant date subject to both continued employment under the terms of the award agreement. If the threshold level of performance goals is not achieved, no ROE PSUs are earned. PSUs do not have any voting rights. No dividends are paid on outstanding PSUs during the applicable performance period. Instead, dividend equivalents are accrued on outstanding PSUs during the applicable performance period, deemed invested in shares of Class A common stock and are paid out in shares of Class A common stock at the end of the performance period to the extent that the underlying PSUs vest. For the years ended December 31, 2019, 2018, and 2017, the Company recognized $552, $(776) and $2,263, respectively, of compensation expense related to PSU awards. For the year ended December 31, 2018, the compensation expense included a reversal of $1,945 of expense recognized in prior periods due to a reduction in the number of PSUs expected to vest based on deterioration in performance metrics. As of December 31, 2019, 2018, and 2017 the Company had unrecognized compensation expense related to PSU awards of $1,808, $2,166 and $4,485, respectively. The unrecognized compensation expense as of December 31, 2019 is expected to be recognized over a weighted average period of 2.32 years. For Book Value PSUs and TSR PSUs that had performance measurement periods ending during the years ended December 31, 2019, 2018, and 2017, none of the performance measures were met and therefore no Book Value PSUs or TSR PSUs were earned or vested during those periods. For the years ended December 31, 2019 and 2018, there were 89,895 and 68,585 ROE PSUs, respectively, including dividend equivalents, that were earned and converted into an equal number of shares of restricted stock that will vest on the third anniversary of the original ROE PSU grant date. Employee Restricted Stock Awards Compensation costs for restricted stock awards subject only to service conditions are measured at the closing stock price on the dates of grant and are recognized as expense on a straight-line basis over the requisite service periods for the awards, as adjusted for changes in estimated, and ultimately actual, forfeitures. The Company grants restricted common shares to employees that vest ratably over a three-year period or cliff-vest after two to four years based on continued employment over these specified periods. A summary of these unvested restricted stock awards is presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted- average Remaining Vested Period Share Balance as of December 31, 2016 161,891 $ 18.47 1.4 Granted 74,000 12.74 — Forfeitures — — — Vestitures (73,050 ) 20.00 — Share Balance as of December 31, 2017 162,841 15.18 1.3 Granted 96,000 9.34 — Conversion of ROE PSUs 68,585 13.58 — Forfeitures — — — Vestitures (84,050 ) 16.87 — Share Balance as of December 31, 2018 243,376 11.84 1.5 Granted 129,500 5.49 — Conversion of ROE PSUs 89,895 10.31 — Forfeitures — — — Vestitures (150,809 ) 11.92 — Share Balance as of December 31, 2019 311,962 $ 8.73 1.4 For the years ended December 31, 2019, 2018, and 2017, the Company recognized $1,488, $1,132 and $1,172, respectively, of compensation expense related to restricted stock awards. As of December 31, 2019, 2018, and 2017 the Company had unrecognized compensation expense related to restricted stock awards of $1,603, $1,552 and $1,284, respectively. The unrecognized compensation expense as of December 31, 2019 is expected to be recognized over a weighted average period of 1.4 years. For the years ended December 31, 2019, 2018 and 2017, the intrinsic value of restricted stock awards that vested were $838, $818, and $970, respectively. In addition, as part of the Company’s satisfaction of incentive compensation earned for past service under the Company’s variable compensation programs, employees may receive restricted Class A common stock in lieu of cash payments. These restricted Class A common stock shares are issued to an irrevocable trust and are not returnable to the Company. No such shares were issued in 2019, 2018 and 2017. As of December 31, 2019 and 2018, the Company had 9,155 vested shares of the undistributed restricted stock issued to the trust. Employee Restricted Stock Units In connection with the announcement in June 2019 that the Company’s Executive Chairman would retire on December 31, 2019 from all positions with the Company, including its Board of Directors, the Company and its Executive Chairman entered into a consulting agreement to provide consulting services through January 1, 2022. Pursuant to the consulting agreement, the Company granted the Executive Chairman 87,847 RSUs with a grant date fair value of $6.83 per share. The grant date fair value of the award was based on the closing price of the Class A common stock on the New York Stock Exchange on the date of grant. The RSUs will vest equally on each of January 1, 2020, July 1, 2020, January 1, 2021, July 1, 2021 and January 1, 2022, subject to the individual’s continued employment through December 31, 2019 and providing consulting services through January 1, 2022. For the year ended December 31, 2019, the Company recognized $274 of compensation expense related to employee restricted stock units. As of December 31, 2019, the Company had 87,847 employee restricted stock units outstanding. Director Restricted Stock Units Compensation costs for RSU awards subject only to service conditions are measured at the closing stock price on the dates of grant and are recognized as expense on a straight-line basis over the requisite service periods for the awards, as adjusted for changes in estimated, and ultimately actual, forfeitures. Compensation costs for RSUs that do not require future service conditions are expensed immediately. The Company’s non-employee directors are compensated in both cash and RSUs. RSUs awarded under the Company’s 2014 Plan vest immediately on the award grant date and are convertible into shares of Class A common stock. For RSUs granted under the Company’s 2014 Plan and 2011 Plan, the RSUs are convertible into shares of Class A common stock at the later of the date the non-employee director ceases to be a member of the Company’s Board or the first anniversary of the grant date. For RSUs granted under prior long-term incentive plans, the RSUs are convertible into shares of Class A common stock one year after the non-employee director ceases to be a member of the Company’s Board. The RSUs do not have any voting rights but are entitled to cash dividend equivalent payments. As of December 31, 2019, the Company had 248,731 non-employee director RSUs outstanding. A summary of the non-employee director RSUs grants is presented below for the periods indicated: December 31, 2019 2018 2017 RSUs granted 57,970 42,402 33,540 Grant date fair value $ 6.90 $ 11.32 $ 14.31 The grant date fair value is based on the closing price of the Class A common stock on the New York Stock Exchange on the date of grant. For the years ended December 31, 2019, 2018 and 2017, the Company recognized $466, $480 and $491, respectively, of director fees related to these RSUs. For the year ended December 31, 2019, the intrinsic value of RSUs that were converted into shares of Class A common stock were $603. There were no RSUs that were converted into shares of Class A common stock for the years ended December 31, 2018 and 2017. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk and Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk and Credit Risk | Note 15. Financial Instruments with Off-Balance-Sheet Risk and Credit Risk As of December 31, 2019, the Company did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance, or special purpose or variable interest entities (“VIEs”), established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. The Company’s economic interests held in unconsolidated VIEs are limited in nature to those of a passive holder of MBS issued by a securitization trust. As of December 31, 2019, the Company had not consolidated for financial reporting purposes any securitization trusts as the Company does not have the power to direct the activities that most significantly impact the economic performance of such entities. Further, as of December 31, 2019, the Company had not guaranteed any obligations of unconsolidated entities or entered into any commitment or intent to provide funding to any such entities. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Note 16. Quarterly Data (Unaudited) The following tables set forth selected information for each of the fiscal quarters during the years ended December 31, 2019 and 2018. The selected quarterly data is derived from unaudited financial statements of the Company and has been prepared on the same basis as the annual, audited financial statements to include, in the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for fair statement of the results for such periods. The sum of quarterly earnings per share amounts may not equal full year earnings per share amounts due to differing average outstanding shares amounts for the respective periods. Fiscal Year 2019 Total Year Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 123,478 $ 28,255 $ 28,674 $ 32,717 $ 33,832 Interest expense 97,250 21,218 23,982 26,135 25,915 Net interest income 26,228 7,037 4,692 6,582 7,917 Investment advisory fee income 332 82 — — 250 Investment gain (loss), net 2,197 23,308 (8,231 ) (26,683 ) 13,803 General and administrative expenses 15,015 3,017 4,198 3,424 4,376 Net income (loss) 13,742 27,410 (7,737 ) (23,525 ) 17,594 Dividend on preferred stock (2,600 ) (774 ) (774 ) (774 ) (278 ) Net income (loss) available (attributable) to common stock $ 11,142 $ 26,636 $ (8,511 ) $ (24,299 ) $ 17,316 Basic earnings (loss) per common share $ 0.31 $ 0.73 $ (0.23 ) $ (0.67 ) $ 0.52 Diluted earnings (loss) per common share $ 0.31 $ 0.72 $ (0.23 ) $ (0.67 ) $ 0.52 Fiscal Year 2018 Total Year Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 130,953 $ 37,174 $ 32,864 $ 30,055 $ 30,860 Interest expense 84,825 26,550 22,526 19,193 16,556 Net interest income 46,128 10,624 10,338 10,862 14,304 Investment loss, net (123,822 ) (68,910 ) (2,257 ) (4,516 ) (48,139 ) General and administrative expenses 13,370 1,658 3,954 3,461 4,297 (Loss) income before income taxes (91,064 ) (59,944 ) 4,127 2,885 (38,132 ) Income tax provision (benefit) 733 (33,639 ) 9,628 6,493 18,251 Net loss (91,797 ) (26,305 ) (5,501 ) (3,608 ) (56,383 ) Dividend on preferred stock (590 ) (153 ) (151 ) (149 ) (137 ) Net loss attributable to common stock $ (92,387 ) $ (26,458 ) $ (5,652 ) $ (3,757 ) $ (56,520 ) Basic loss per common share $ (3.18 ) $ (0.87 ) $ (0.19 ) $ (0.13 ) $ (2.00 ) Diluted loss per common share $ (3.18 ) $ (0.87 ) $ (0.19 ) $ (0.13 ) $ (2.00 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 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 December 31, 2019 and 2018, approximately 97% and 99%, respectively, 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. |
Interest Income Recognition for Investments in Non-Agency MBS | Interest Income Recognition for Investments in Non-Agency MBS The Company recognizes interest income for its investments in non-agency MBS by applying the prospective level-yield methodology required by GAAP for securitized financial assets that are either not of high credit quality at the time of acquisition or can be contractually prepaid or otherwise settled in such a way that the Company would not recover substantially all of its recorded investment. The amount of periodic interest income recognized is determined by applying the security’s effective interest rate to its amortized cost basis (or “reference amount”). At the time of acquisition, the security’s effective interest rate is calculated by solving for the single discount rate that equates the present value of the Company’s best estimate of the amount and timing of the cash flows expected to be collected from the security to its purchase price. To prepare its best estimate of cash flows expected to be collected, the Company develops a number of assumptions about the future performance of the pool of mortgage loans that serve as collateral for its investment, including assumptions about the timing and amount of prepayments and credit losses. In each subsequent quarterly reporting period, the amount and timing of cash flows expected to be collected from the security are re-estimated based upon current information and events. The following table provides a description of how periodic changes in the estimate of cash flows expected to be collected affect interest income recognition prospectively for investments in non-agency MBS: Scenario: Effect on Interest Income Recognition for Investments in Non-Agency MBS: A positive change in cash flows occurs. Actual cash flows exceed prior estimates and/or a positive change occurs in the estimate of expected remaining cash flows. A revised effective interest rate is calculated and applied prospectively such that the positive change in cash flows is recognized as incremental interest income over the remaining life of the security. The amount of periodic interest income recognized over the remaining life of the security will be reduced accordingly. Specifically, if an adverse change in cash flows occurs for a security that is impaired (that is, its fair value is less than its reference amount), the reference amount to which the security’s existing effective interest rate will be prospectively applied will be reduced to the present value of cash flows expected to be collected, discounted at the security’s existing effective interest rate. If an adverse change in cash flows occurs for a security that is not impaired, the security’s effective interest rate will be reduced accordingly and applied on a prospective basis. An adverse change in cash flows occurs. Actual cash flows fall short of prior estimates and/or an adverse change occurs in the estimate of expected remaining cash flows. |
Earnings (Loss) Per Share | 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 table presents the computations of basic and diluted earnings (loss) per share for the periods indicated: Year Ended December 31, (Shares in thousands) 2019 2018 2017 Basic weighted-average common shares outstanding 35,709 29,052 25,649 Performance share units and unvested restricted stock 124 — 362 Diluted weighted-average common shares outstanding 35,833 29,052 26,011 Net income (loss) available (attributable) to common stock $ 11,142 $ (92,387 ) $ 17,184 Basic earnings (loss) per common share $ 0.31 $ (3.18 ) $ 0.67 Diluted earnings (loss) per common share $ 0.31 $ (3.18 ) $ 0.66 The diluted loss per share for the year ended December 31, 2018 did not include the antidilutive effect of 216,238 shares of unvested shares of restricted stock and performance share units. |
Other Significant Accounting Policies | Other Significant Accounting Policies The Company’s other significant accounting policies are described in the following notes: Investments in agency MBS, subsequent measurement Note 4 Investments in non-agency MBS, subsequent measurement Note 5 Investments in mortgage loans, subsequent measurement Note 6 Borrowings Note 7 To-be-announced agency MBS transactions, including “dollar rolls” Note 8 Derivative instruments Note 8 Balance sheet offsetting Note 9 Fair value measurements Note 10 Income taxes Note 11 Stock-based compensation Note 14 |
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 December 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 not 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 or loans that are measured at fair value with changes in fair value recognized in current period earnings. January 1, 2020 As of December 31, 2019, all of the Company’s investments in debt securities and loans are measured at fair value with changes in fair value recognized in current period earnings. 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 hedging instruments 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 has elected to classify its investments in agency MBS as trading securities. Accordingly, the Company’s investments in agency MBS are reported in the accompanying consolidated balance sheets at fair value. As of December 31, 2019 and 2018, the fair value of the Company’s investments in agency MBS were $3,768,496 and $3,982,106, respectively. |
Non-Agency MBS | |
Investment Security Purchases and Sales | The Company has elected to classify its investments in non-agency MBS as trading securities. Accordingly, the Company’s investments in non-agency MBS are reported in the accompanying consolidated balance sheets at fair value. As of December 31, 2019 and 2018, the fair value of the Company’s investments in non-agency MBS were $33,501 and $24, respectively. |
Mortgage Loans | |
Investment Security Purchases and Sales | The Company recognizes interest income on its mortgage loan investment based upon the contractual note rate of the loan. The Company has elected to account for its mortgage loan investment at fair value on a recurring basis with periodic changes in fair value recognized as a component of “investment gain (loss), net” in the accompanying consolidated statements of comprehensive income. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Computations of Basic and Diluted Earnings (Loss) Per Share | The following table presents the computations of basic and diluted earnings (loss) per share for the periods indicated: Year Ended December 31, (Shares in thousands) 2019 2018 2017 Basic weighted-average common shares outstanding 35,709 29,052 25,649 Performance share units and unvested restricted stock 124 — 362 Diluted weighted-average common shares outstanding 35,833 29,052 26,011 Net income (loss) available (attributable) to common stock $ 11,142 $ (92,387 ) $ 17,184 Basic earnings (loss) per common share $ 0.31 $ (3.18 ) $ 0.67 Diluted earnings (loss) per common share $ 0.31 $ (3.18 ) $ 0.66 |
Investments in Agency MBS (Tabl
Investments in Agency MBS (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, 2019 2018 2017 Net gains (losses) recognized in earnings for: Agency MBS still held at period end $ 37,851 $ (59,676 ) $ (1,621 ) Agency MBS sold during the period 90,330 (54,804 ) 3,987 Total $ 128,181 $ (114,480 ) $ 2,366 |
Investments in Non-Agency MBS (
Investments in Non-Agency MBS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Non-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 non-agency MBS: Year Ended December 31, 2019 2018 2017 Net gains (losses) recognized in earnings for: Non-agency MBS still held at period end $ (152 ) $ (42 ) $ 58 Non-agency MBS sold during the period — — — Total $ (152 ) $ (42 ) $ 58 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Repurchase Agreements | As of December 31, 2019 and 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: December 31, 2019 December 31, 2018 Pledged with agency MBS: Repurchase agreements outstanding $ 3,560,139 $ 3,721,629 Agency MBS collateral, at fair value (1) 3,741,399 3,931,232 Net amount (2) 181,260 209,603 Weighted-average rate 2.10 % 2.72 % Weighted-average term to maturity 23.7 days 17.3 days Pledged with non-agency MBS: Repurchase agreements outstanding $ 21,098 $ — Non-agency MBS collateral, at fair value 30,747 — Net amount (2) 9,649 — Weighted-average rate 3.11 % — Weighted-average term to maturity 8.1 days — Total MBS: Repurchase agreements outstanding $ 3,581,237 $ 3,721,629 MBS collateral, at fair value (1) 3,772,146 3,931,232 Net amount (2) 190,909 209,603 Weighted-average rate 2.11 % 2.72 % Weighted-average term to maturity 23.6 days 17.3 days (1) As of December 31, 2019, includes $71,284 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. 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. (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 years ended December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Weighted-average outstanding balance $ 3,690,093 $ 3,817,870 Weighted-average rate 2.46 % 2.06 % |
Schedule of Long-term Unsecured Debt Instruments | As of December 31, 2019 and 2018, the Company had $74,328 and $74,104, respectively, of outstanding long-term unsecured debentures, net of unamortized debt issuance costs of $972 and $1,196, respectively. The Company’s long-term unsecured debentures consisted of the following as of the dates indicated: December 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 % 4.74 % 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) | 12 Months Ended |
Dec. 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: December 31, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Interest rate swaps $ 1,417 $ (8 ) $ — $ (5,709 ) 10-year U.S. Treasury note futures — — — (1,250 ) TBA commitments — — 438 — Total $ 1,417 $ (8 ) $ 438 $ (6,959 ) |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table provides information about the derivative gains and losses recognized within the periods indicated: For the Year Ended December 31, 2019 2018 Interest rate hedging instruments: Interest rate swaps: Net interest income (1) $ 15,087 $ 6,266 Unrealized losses, net (66,737 ) (30,064 ) (Losses) gains realized upon early termination, net (78,569 ) 49,192 Total interest rate swap (losses) gains, net (130,219 ) 25,394 U.S. Treasury note futures, net (16,421 ) 8,647 Options on U.S. Treasury note futures, net 76 — Total interest rate hedging instruments (losses) gains, net (146,564 ) 34,041 TBA and specified agency MBS commitments: TBA dollar roll income (2) 4,470 20,929 Other gains (losses) on agency MBS commitments, net 15,904 (64,627 ) Total gains (losses) on agency MBS commitments, net 20,374 (43,698 ) Total derivative losses, net $ (126,190 ) $ (9,657 ) (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 Year Ended December 31, 2019 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,100,000 $ 2,010,000 $ (375,000 ) $ (1,750,000 ) $ 2,985,000 2-year U.S. Treasury note futures — 139,000 (139,000 ) — — 10-year U.S. Treasury note futures 320,000 826,600 (885,000 ) (261,600 ) — Sold call options on 10-year Treasury note futures — 250,000 (250,000 ) — — Purchased call options on 10-year Treasury note futures — 500,000 (500,000 ) — — Commitments to purchase (sell) MBS, net — 5,970,000 (5,970,000 ) — — For the Year Ended December 31, 2018 Beginning of Period Additions Scheduled Settlements Early Terminations End of Period Interest rate swaps $ 3,600,000 $ 1,400,000 $ — $ (1,900,000 ) $ 3,100,000 5-year U.S. Treasury note futures 21,600 — (21,600 ) — — 10-year U.S. Treasury note futures 650,000 3,120,000 (3,200,000 ) (250,000 ) 320,000 Commitments to purchase (sell) MBS, net 1,265,000 13,320,000 (14,585,000 ) — — |
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” in the accompanying consolidated balance sheets, for the dates indicated: December 31, 2019 December 31, 2018 Cash collateral posted for: Interest rate swaps (cash initial margin) $ 37,122 $ 54,883 U.S. Treasury note futures (cash initial margin) — 6,169 Unsettled MBS trades and TBA commitments, net 1 — Total cash collateral posted, net $ 37,123 $ 61,052 |
TBA Commitments | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Schedule of Derivative Instruments | As of December 31, 2019, the Company had no outstanding TBA commitments. The following tables present information about the Company’s TBA commitments as of the date indicated: 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 December 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 $ 2,050,000 1.77% 1.92% 0.15% 1.6 $ 83 3 to less than 7 years 510,000 1.61% 1.92% 0.31% 6.0 439 7 to less than 10 years 400,000 2.24% 1.91% (0.33)% 9.5 715 10 or more years 25,000 2.96% 1.90% (1.06)% 28.2 172 Total / weighted-average $ 2,985,000 1.81% 1.92% 0.11% 3.6 $ 1,409 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) | 12 Months Ended |
Dec. 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 December 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 $ 1,417 $ — $ 1,417 $ — $ — $ 1,417 Total derivative instruments 1,417 — 1,417 — — 1,417 Total assets $ 1,417 $ — $ 1,417 $ — $ — $ 1,417 Liabilities: Derivative instruments: Interest rate swaps $ 8 $ — $ 8 $ (8 ) $ — $ — Total derivative instruments 8 — 8 (8 ) — — Repurchase agreements 3,581,237 — 3,581,237 (3,581,237 ) — — Total liabilities $ 3,581,245 $ — $ 3,581,245 $ (3,581,245 ) $ — $ — 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) | 12 Months Ended |
Dec. 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 December 31, 2019 and 2018. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. December 31, 2019 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 3,768,496 $ — $ 3,768,496 $ — Non-agency MBS 33,501 — 33,478 23 Total MBS 3,801,997 — 3,801,974 23 Mortgage loans 45,000 — — 45,000 Derivative assets 1,417 — 1,417 — Derivative liabilities (8 ) — (8 ) — Other assets 6,375 — — 6,375 Total $ 3,854,781 $ — $ 3,803,383 $ 51,398 December 31, 2018 Total Level 1 Level 2 Level 3 MBS Trading: Agency MBS $ 3,982,106 $ — $ 3,982,106 $ — Non-agency 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: Year Ended December 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 359 313 Purchases 45,000 — Sales — — Payments, net (123 ) (71 ) Accretion of discount 23 20 Ending balance $ 51,398 $ 6,139 Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date $ 374 $ 313 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes from operations consists of the following for the years ended December 31, 2019, 2018 and 2017: 2019 2018 2017 Federal $ — $ 562 $ 33,495 State — 171 6,108 Total income tax provision $ — $ 733 $ 39,603 Current $ — $ (1 ) $ 706 Deferred — 734 38,897 Total income tax provision $ — $ 733 $ 39,603 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes results in effective tax rates that differ from the federal statutory rates. The reconciliation of the Company and its subsidiaries’ income tax attributable to “income (loss) before income taxes” computed at federal statutory rates to the provision for income taxes for the years ended December 31, 2019, 2018, and 2017 were as follows: 2019 2018 2017 Federal income tax at statutory rate $ — $ (19,123 ) $ 19,963 State income taxes, net of federal benefit — (4,316 ) 2,224 Change in enacted tax rate — — 409 Change in expected enacted tax rate from REIT conversion — (14,744 ) — Other, net — 788 246 Valuation allowance — 38,128 16,761 Total income tax provision $ — $ 733 $ 39,603 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Contractual Obligations by Fiscal Year | The following table sets forth these contractual obligations by fiscal year as of December 31, 2019: 2020 2021 2022 2023 2024 Thereafter Total Long-term debt maturities $ — $ — $ — $ 25,000 $ — $ 50,300 $ 75,300 Minimum rental commitments 52 65 55 — — — 172 $ 52 $ 65 $ 55 $ 25,000 $ — $ 50,300 $ 75,472 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 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 for 2019: Quarter Ended Dividend Amount Declaration Date Record Date Pay Date December 31 $ 0.225 December 13 December 31 February 3, 2020 September 30 0.225 September 17 September 30 October 31 June 30 0.225 June 24 July 5 July 31 March 31 0.375 March 18 March 29 April 30 The Board of Directors approved and the Company declared and paid the following dividends on its common stock 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: Year Ended Class A Common Stock Issuances 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 Series B preferred equity distribution agreements for the periods indicated: Year Ended Year Ended Series B Preferred Stock Issuances December 31, 2019 December 31, 2018 Shares issued 3,444 47,304 Weighted average public offering price $ 22.39 $ 24.75 Net proceeds (1) $ 76 $ 1,137 (1) Net of selling commissions and expenses. |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Based Compensation Performance Shares Grants Activity | The Compensation Committee of the Board of Directors of the Company approved the following PSU grants for the periods indicated: December 31, 2019 2018 2017 Book Value PSUs granted 67,935 76,043 57,732 Book Value PSU grant date fair value per share $ 6.83 $ 10.31 $ 13.58 TSR PSUs granted 26,977 32,052 23,787 TSR PSU grant date fair value per share $ 8.60 $ 12.23 $ 16.48 ROE PSUs granted 67,935 76,043 57,732 ROE PSU grant date fair value per share $ 6.83 $ 10.31 $ 13.58 |
Share Based Compensation Award Valuation Assumptions | The following assumptions, determined as of the date of grant, were used in the Monte Carlo simulation model to measure the grant date fair value per share of the Company’s TSR PSUs for the periods indicated: TSR PSUs Granted in: 2019 2018 2017 Closing stock price on date of grant $ 6.83 $ 10.31 $ 13.58 Beginning average stock price on date of grant (1) $ 6.90 $ 11.16 $ 14.53 Expected volatility (2) 20.54 % 24.68 % 24.03 % Dividend yield (3) 0.00 % 0.00 % 0.00 % Risk-free rate (4) 1.73 % 2.61 % 1.52 % (1) Based upon the 30 trading days prior to and including the date of grant. (2) Based upon the most recent three-year volatility as of the date of grant. (3) Dividend equivalents are accrued during the performance period and deemed reinvested in additional stock units, which are to be paid out at the end of the performance period to the extent the underlying PSU is earned. Applying dividend yield assumption of 0.00% in the Monte Carlo simulation is mathematically equivalent to reinvesting dividends on a continuous basis and including the value of the dividends in the final payout. (4) Based upon the yield of a U.S. Treasury bond with a three-year maturity as of the date of grant. |
Schedule of Unvested Restricted Stock Units Roll Forward | The Company grants restricted common shares to employees that vest ratably over a three-year period or cliff-vest after two to four years based on continued employment over these specified periods. A summary of these unvested restricted stock awards is presented below: Number of Shares Weighted-average Grant-date Fair Value Weighted- average Remaining Vested Period Share Balance as of December 31, 2016 161,891 $ 18.47 1.4 Granted 74,000 12.74 — Forfeitures — — — Vestitures (73,050 ) 20.00 — Share Balance as of December 31, 2017 162,841 15.18 1.3 Granted 96,000 9.34 — Conversion of ROE PSUs 68,585 13.58 — Forfeitures — — — Vestitures (84,050 ) 16.87 — Share Balance as of December 31, 2018 243,376 11.84 1.5 Granted 129,500 5.49 — Conversion of ROE PSUs 89,895 10.31 — Forfeitures — — — Vestitures (150,809 ) 11.92 — Share Balance as of December 31, 2019 311,962 $ 8.73 1.4 |
Non-employee Director | |
Share Based Compensation Restricted Stock Units Grants Activity | A summary of the non-employee director RSUs grants is presented below for the periods indicated: December 31, 2019 2018 2017 RSUs granted 57,970 42,402 33,540 Grant date fair value $ 6.90 $ 11.32 $ 14.31 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The sum of quarterly earnings per share amounts may not equal full year earnings per share amounts due to differing average outstanding shares amounts for the respective periods. Fiscal Year 2019 Total Year Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 123,478 $ 28,255 $ 28,674 $ 32,717 $ 33,832 Interest expense 97,250 21,218 23,982 26,135 25,915 Net interest income 26,228 7,037 4,692 6,582 7,917 Investment advisory fee income 332 82 — — 250 Investment gain (loss), net 2,197 23,308 (8,231 ) (26,683 ) 13,803 General and administrative expenses 15,015 3,017 4,198 3,424 4,376 Net income (loss) 13,742 27,410 (7,737 ) (23,525 ) 17,594 Dividend on preferred stock (2,600 ) (774 ) (774 ) (774 ) (278 ) Net income (loss) available (attributable) to common stock $ 11,142 $ 26,636 $ (8,511 ) $ (24,299 ) $ 17,316 Basic earnings (loss) per common share $ 0.31 $ 0.73 $ (0.23 ) $ (0.67 ) $ 0.52 Diluted earnings (loss) per common share $ 0.31 $ 0.72 $ (0.23 ) $ (0.67 ) $ 0.52 Fiscal Year 2018 Total Year Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 130,953 $ 37,174 $ 32,864 $ 30,055 $ 30,860 Interest expense 84,825 26,550 22,526 19,193 16,556 Net interest income 46,128 10,624 10,338 10,862 14,304 Investment loss, net (123,822 ) (68,910 ) (2,257 ) (4,516 ) (48,139 ) General and administrative expenses 13,370 1,658 3,954 3,461 4,297 (Loss) income before income taxes (91,064 ) (59,944 ) 4,127 2,885 (38,132 ) Income tax provision (benefit) 733 (33,639 ) 9,628 6,493 18,251 Net loss (91,797 ) (26,305 ) (5,501 ) (3,608 ) (56,383 ) Dividend on preferred stock (590 ) (153 ) (151 ) (149 ) (137 ) Net loss attributable to common stock $ (92,387 ) $ (26,458 ) $ (5,652 ) $ (3,757 ) $ (56,520 ) Basic loss per common share $ (3.18 ) $ (0.87 ) $ (0.19 ) $ (0.13 ) $ (2.00 ) Diluted loss per common share $ (3.18 ) $ (0.87 ) $ (0.19 ) $ (0.13 ) $ (2.00 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Cash Equivalents Percentage Held in Us Government Backed Securities | 99.00% | 97.00% |
Restricted Stock and Performance Shares | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 216,238 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Computations of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Basic weighted-average common shares outstanding | 35,709 | 29,052 | 25,649 | ||||||||
Performance share units and unvested restricted stock | 124 | 362 | |||||||||
Diluted weighted-average common shares outstanding | 35,833 | 29,052 | 26,011 | ||||||||
Net income (loss) available (attributable) to common stock | $ 26,636 | $ (8,511) | $ (24,299) | $ 17,316 | $ (26,458) | $ (5,652) | $ (3,757) | $ (56,520) | $ 11,142 | $ (92,387) | $ 17,184 |
Basic earnings (loss) per common share | $ 0.73 | $ (0.23) | $ (0.67) | $ 0.52 | $ (0.87) | $ (0.19) | $ (0.13) | $ (2) | $ 0.31 | $ (3.18) | $ 0.67 |
Diluted earnings (loss) per common share | $ 0.72 | $ (0.23) | $ (0.67) | $ 0.52 | $ (0.87) | $ (0.19) | $ (0.13) | $ (2) | $ 0.31 | $ (3.18) | $ 0.66 |
Investments in Agency MBS - Add
Investments in Agency MBS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Agency MBS | ||
Fair Value of MBS | $ 3,768,496 | $ 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 Agency MBS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net gains (losses) recognized in earnings for: | |||
Total | $ 128,029 | $ (114,522) | $ 2,424 |
Agency MBS | |||
Net gains (losses) recognized in earnings for: | |||
MBS still held at period end | 37,851 | (59,676) | (1,621) |
MBS sold during the period | 90,330 | (54,804) | 3,987 |
Total | $ 128,181 | $ (114,480) | $ 2,366 |
Investments in Non-Agency MBS -
Investments in Non-Agency MBS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-Agency MBS | ||
Fair Value of MBS | $ 33,501 | $ 24 |
Investments in Non-Agency MBS_2
Investments in Non-Agency MBS - Additional Information About Gains and Losses Recognized with Respect to Investments in Non-Agency MBS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net gains (losses) recognized in earnings for: | |||
Total | $ 128,029 | $ (114,522) | $ 2,424 |
Non-Agency MBS | |||
Net gains (losses) recognized in earnings for: | |||
MBS still held at period end | (152) | (42) | 58 |
Total | $ (152) | $ (42) | $ 58 |
Investments in Mortgage Loans -
Investments in Mortgage Loans - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Schedule Of Investments [Line Items] | |
Purchases of mortgage loans | $ 45,000 |
Mortgage Loan Rate | LIBOR plus 4.25 |
Mortgage loan maturity date | Dec. 31, 2021 |
Minimum | |
Schedule Of Investments [Line Items] | |
Mortgage loan floor rate | 6.25% |
Borrowings - Outstanding Repurc
Borrowings - Outstanding Repurchase Agreement Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Repurchase Agreement Counterparty [Line Items] | |||
Repurchase agreements outstanding | $ 3,581,237 | $ 3,721,629 | |
MBS collateral, at fair value | [1] | 3,772,146 | 3,931,232 |
Net amount | [2] | $ 190,909 | $ 209,603 |
Weighted-average rate | 2.11% | 2.72% | |
Weighted-average term to maturity (in days) | 23 days | 17 days | |
Pledged with agency-backed MBS | |||
Repurchase Agreement Counterparty [Line Items] | |||
Repurchase agreements outstanding | $ 3,560,139 | $ 3,721,629 | |
MBS collateral, at fair value | 3,741,399 | 3,931,232 | |
Net amount | [1] | $ 181,260 | $ 209,603 |
Weighted-average rate | 2.10% | 2.72% | |
Weighted-average term to maturity (in days) | 23 days | 17 days | |
Pledged with non-agency-backed MBS | |||
Repurchase Agreement Counterparty [Line Items] | |||
Repurchase agreements outstanding | $ 21,098 | ||
MBS collateral, at fair value | 30,747 | ||
Net amount | [2] | $ 9,649 | |
Weighted-average rate | 3.11% | ||
Weighted-average term to maturity (in days) | 8 days | ||
[1] | As of December 31, 2019, includes $71,284 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. 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. | ||
[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 | Dec. 31, 2019USD ($) |
Repurchase Agreement Counterparty [Line Items] | |
Sold securities receivable | $ 71,199 |
Pledged as Collateral for Repurchase Agreements | |
Repurchase Agreement Counterparty [Line Items] | |
Sold securities receivable | $ 71,284 |
Borrowings - Information Regard
Borrowings - Information Regarding Outstanding Repurchase Agreement Borrowings During the Period (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | ||
Weighted-average outstanding balance | $ 3,690,093 | $ 3,817,870 |
Weighted-average rate | 2.46% | 2.06% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Long-term unsecured debt | $ 74,328 | $ 74,104 |
Unamortized debt issuance costs | $ 972 | $ 1,196 |
Borrowings - Long-term Unsecure
Borrowings - Long-term Unsecured Debt Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 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 | 4.74% | 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Assets | $ 1,417 | $ 438 |
Derivative Liabilities | (8) | (6,959) |
Interest Rate Swap | ||
Derivative Assets | 1,417 | 0 |
Derivative Liabilities | (8) | (5,709) |
10-year U.S. Treasury Note Futures | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 0 | (1,250) |
TBA Commitments | ||
Derivative Assets | 438 | |
Derivative Liabilities | $ 0 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Swap Agreements (Details) - Interest Rate Swap - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Notional Amount | $ 2,985,000,000 | $ 3,100,000,000 | $ 3,600,000,000 |
Weighted-average: Fixed Pay Rate | 1.81% | 2.07% | |
Weighted-average: Variable Receive Rate | 1.92% | 2.67% | |
Weighted-average: Net Receive (Pay) Rate | 0.11% | 0.60% | |
Weighted-average: Remaining Life (in years) | 3 years 7 months 6 days | 6 years 7 months 6 days | |
Fair Value, Asset and (Liability) | $ 1,409,000 | $ (5,709,000) | |
Less Than Three Years Maturity | |||
Notional Amount | $ 2,050,000,000 | $ 1,050,000,000 | |
Weighted-average: Fixed Pay Rate | 1.77% | 1.53% | |
Weighted-average: Variable Receive Rate | 1.92% | 2.60% | |
Weighted-average: Net Receive (Pay) Rate | 0.15% | 1.07% | |
Weighted-average: Remaining Life (in years) | 1 year 7 months 6 days | 1 year 6 months | |
Fair Value, Asset and (Liability) | $ 83,000 | $ (152,000) | |
Three To Less Than Seven Years Maturity | |||
Notional Amount | $ 510,000,000 | $ 325,000,000 | |
Weighted-average: Fixed Pay Rate | 1.61% | 2.00% | |
Weighted-average: Variable Receive Rate | 1.92% | 2.73% | |
Weighted-average: Net Receive (Pay) Rate | 0.31% | 0.73% | |
Weighted-average: Remaining Life (in years) | 6 years | 4 years 4 months 24 days | |
Fair Value, Asset and (Liability) | $ 439,000 | $ (432,000) | |
Seven to Less Than Ten Years Maturity | |||
Notional Amount | $ 400,000,000 | $ 1,600,000,000 | |
Weighted-average: Fixed Pay Rate | 2.24% | 2.35% | |
Weighted-average: Variable Receive Rate | 1.91% | 2.70% | |
Weighted-average: Net Receive (Pay) Rate | (0.33%) | 0.35% | |
Weighted-average: Remaining Life (in years) | 9 years 6 months | 8 years 6 months | |
Fair Value, Asset and (Liability) | $ 715,000 | $ (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 | 1.90% | 2.66% | |
Weighted-average: Net Receive (Pay) Rate | (1.06%) | (0.36%) | |
Weighted-average: Remaining Life (in years) | 28 years 2 months 12 days | 29 years 7 months 6 days | |
Fair Value, Asset and (Liability) | $ 172,000 | $ (553,000) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | ||
Derivative [Line Items] | ||||
Derivative asset, cash collateral | [1] | $ 438,000 | $ 0 | |
10-year U.S. Treasury Note Futures | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 320,000,000 | 0 | $ 650,000,000 | |
Maturity date | 2019-03 | |||
Derivative outstanding options | $ 0 | 0 | ||
U.S. Treasury Note Futures | ||||
Derivative [Line Items] | ||||
Notional Amount | 0 | |||
TBA Commitments | ||||
Derivative [Line Items] | ||||
Notional Amount | 0 | |||
Derivatives Outstanding Amount | $ 0 | |||
Derivative asset, cash collateral | [1] | 438,000 | ||
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 ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Asset | $ 1,417,000 | $ 438,000 |
TBA Commitments | ||
Notional Amount: Net Purchase Commitment | 0 | |
Contractual Forward Price | (438,000) | |
Market Price | 0 | |
Fair Value, Asset | 438,000 | |
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 | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Interest rate derivative (losses) gains, net | $ (146,564) | $ 34,041 | ||
Total derivative losses, net | (126,190) | (9,657) | $ 3,224 | |
Interest Rate Swap (Losses) Gains, Net | ||||
Interest rate derivative (losses) gains, net | (130,219) | 25,394 | ||
Interest Rate Swaps Net Interest Income | ||||
Interest rate derivative (losses) gains, net | [1] | 15,087 | 6,266 | |
Interest Rate Swaps Unrealized Losses, Net | ||||
Interest rate derivative (losses) gains, net | (66,737) | (30,064) | ||
Interest Rate Swaps (Losses) Gains Realized Upon Early Termination, Net | ||||
Interest rate derivative (losses) gains, net | (78,569) | 49,192 | ||
Options on U.S. Treasury Note Futures, Net | ||||
Interest rate derivative (losses) gains, net | 76 | 0 | ||
TBA Dollar Roll Income | ||||
Gains (losses) on agency commitments | [2] | 4,470 | 20,929 | |
Other Gains (Losses) on Agency MBS Commitments, Net | ||||
Gains (losses) on agency commitments | 15,904 | (64,627) | ||
Gains (Losses) on Agency MBS Commitments, Net | ||||
Gains (losses) on agency commitments | 20,374 | (43,698) | ||
U.S. Treasury Note Futures, Net | ||||
Interest rate derivative (losses) gains, net | $ (16,421) | $ 8,647 | ||
[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 ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Beginning of Period | $ 3,100,000,000 | $ 3,600,000,000 |
Additions | 2,010,000,000 | 1,400,000,000 |
Scheduled Settlements | (375,000,000) | 0 |
Early Terminations | (1,750,000,000) | (1,900,000,000) |
End of Period | 2,985,000,000 | 3,100,000,000 |
5-year U.S. Treasury Note Futures | ||
Derivative [Line Items] | ||
Beginning of Period | 0 | 21,600,000 |
Additions | 0 | |
Scheduled Settlements | (21,600,000) | |
Early Terminations | 0 | |
End of Period | 0 | |
2-year U.S. Treasury Note Futures | ||
Derivative [Line Items] | ||
Beginning of Period | 0 | |
Additions | 139,000,000 | |
Scheduled Settlements | (139,000,000) | |
Early Terminations | 0 | |
End of Period | 0 | 0 |
10-year U.S. Treasury Note Futures | ||
Derivative [Line Items] | ||
Beginning of Period | 320,000,000 | 650,000,000 |
Additions | 826,600,000 | 3,120,000,000 |
Scheduled Settlements | (885,000,000) | (3,200,000,000) |
Early Terminations | (261,600,000) | (250,000,000) |
End of Period | 0 | 320,000,000 |
Sold Call Options on Ten Year U.S. Treasury Note Futures | ||
Derivative [Line Items] | ||
Beginning of Period | 0 | |
Additions | 250,000,000 | |
Scheduled Settlements | (250,000,000) | |
Early Terminations | 0 | |
End of Period | 0 | 0 |
Purchased Call Options on Ten Year U.S. Treasury Note Futures | ||
Derivative [Line Items] | ||
Beginning of Period | 0 | |
Additions | 500,000,000 | |
Scheduled Settlements | (500,000,000) | |
Early Terminations | 0 | |
End of Period | 0 | 0 |
Commitments To Purchase (sell) MBS | ||
Derivative [Line Items] | ||
Beginning of Period | 0 | 1,265,000,000 |
Additions | 5,970,000,000 | 13,320,000,000 |
Scheduled Settlements | (5,970,000,000) | (14,585,000,000) |
Early Terminations | 0 | 0 |
End of Period | $ 0 | $ 0 |
Derivative Instruments - Cash C
Derivative Instruments - Cash Collateral Posted and Received in Respect of Derivative and Other Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash collateral posted, net | $ 37,123 | $ 61,052 |
U.S. Treasury Note Futures | ||
Cash collateral posted, net | 0 | 6,169 |
Interest Rate Swap | ||
Cash collateral posted, net | 37,122 | 54,883 |
Unsettled MBS Trades and TBA Commitments, Net | ||
Cash collateral posted, net | $ 1 | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative instruments: | |||
Derivative Asset, Gross Amount Recognized | $ 1,417 | $ 438 | |
Derivative Asset, Amount Offset | 0 | 0 | |
Derivative Asset, Net Amount | 1,417 | 438 | |
Derivative Asset, Financial Instruments | [1] | 0 | 0 |
Derivative Asset, Cash Collateral | [2] | 0 | (438) |
Derivative Asset, Net amount Total | 1,417 | 0 | |
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 8 | 6,959 | |
Derivative Liabilities, Amount Offset | 0 | 0 | |
Derivative Liabilities, Net Amount | 8 | 6,959 | |
Derivative Liabilities, Financial Instruments | [1] | (8) | 0 |
Derivative Liabilities, Cash Collateral | [2] | 0 | (6,959) |
Derivative Liabilities, Net amount Total | 0 | 0 | |
Derivative Financial Instruments, Liabilities | |||
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 3,581,245 | 3,728,588 | |
Derivative Liabilities, Amount Offset | 0 | 0 | |
Derivative Liabilities, Net Amount | 3,581,245 | 3,728,588 | |
Derivative Liabilities, Financial Instruments | [1] | (3,581,245) | (3,721,629) |
Derivative Liabilities, Cash Collateral | [2] | 0 | (6,959) |
Derivative Liabilities, Net amount Total | 0 | 0 | |
Derivative Financial Instruments, Assets | |||
Derivative instruments: | |||
Derivative Asset, Gross Amount Recognized | 1,417 | 438 | |
Derivative Asset, Amount Offset | 0 | 0 | |
Derivative Asset, Net Amount | 1,417 | 438 | |
Derivative Asset, Financial Instruments | [1] | 0 | 0 |
Derivative Asset, Cash Collateral | [2] | 0 | (438) |
Derivative Asset, Net amount Total | 1,417 | 0 | |
Repurchase Agreements | |||
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 3,581,237 | 3,721,629 | |
Derivative Liabilities, Amount Offset | 0 | 0 | |
Derivative Liabilities, Net Amount | 3,581,237 | 3,721,629 | |
Derivative Liabilities, Financial Instruments | [1] | (3,581,237) | (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 | 1,417 | ||
Derivative Asset, Amount Offset | 0 | ||
Derivative Asset, Net Amount | 1,417 | 0 | |
Derivative Asset, Financial Instruments | [1] | 0 | |
Derivative Asset, Cash Collateral | [2] | 0 | |
Derivative Asset, Net amount Total | 1,417 | ||
Derivative instruments: | |||
Derivative Liabilities, Gross Amount Recognized | 8 | 5,709 | |
Derivative Liabilities, Amount Offset | 0 | 0 | |
Derivative Liabilities, Net Amount | 8 | 5,709 | |
Derivative Liabilities, Financial Instruments | [1] | (8) | 0 |
Derivative Liabilities, Cash Collateral | [2] | 0 | (5,709) |
Derivative Liabilities, Net amount Total | 0 | 0 | |
TBA Commitments | |||
Derivative instruments: | |||
Derivative Asset, Gross Amount Recognized | 438 | ||
Derivative Asset, Amount Offset | 0 | ||
Derivative Asset, Net Amount | 438 | ||
Derivative Asset, Financial Instruments | [1] | 0 | |
Derivative Asset, Cash Collateral | [2] | (438) | |
Derivative Asset, Net amount Total | 0 | ||
Derivative instruments: | |||
Derivative Liabilities, Net Amount | 0 | ||
10-year U.S. Treasury Note Futures | |||
Derivative instruments: | |||
Derivative Asset, Net Amount | 0 | 0 | |
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 | ||
[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 | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Long-term unsecured debt, carrying value | $ 74,104 | $ 74,328 |
Long-term unsecured debt, Fair Value | 66,562 | 70,429 |
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 | $ 6,115 | $ 6,375 |
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 | 95 |
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 | 9 |
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 | Dec. 31, 2019 | Dec. 31, 2018 |
MBS | ||
Mortgage loans, at fair value | $ 45,000 | |
Derivative assets, at fair value | 1,417 | $ 438 |
Derivative Liabilities | (8) | (6,959) |
Agency MBS | ||
MBS | ||
Fair Value of MBS | 3,768,496 | 3,982,106 |
Non-Agency MBS | ||
MBS | ||
Fair Value of MBS | 33,501 | 24 |
Fair Value, Measurements, Recurring | ||
MBS | ||
Fair Value of MBS | 3,801,997 | 3,982,130 |
Mortgage loans, at fair value | 45,000 | |
Derivative assets, at fair value | 1,417 | 438 |
Derivative Liabilities | (8) | (6,959) |
Other assets | 6,375 | 6,115 |
Total | 3,854,781 | 3,981,724 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
MBS | ||
Fair Value of MBS | 0 | 0 |
Mortgage loans, at fair value | 0 | |
Derivative assets, at fair value | 0 | 0 |
Derivative Liabilities | 0 | (1,250) |
Other assets | 0 | 0 |
Total | 0 | (1,250) |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
MBS | ||
Fair Value of MBS | 3,801,974 | 3,982,106 |
Mortgage loans, at fair value | 0 | |
Derivative assets, at fair value | 1,417 | 438 |
Derivative Liabilities | (8) | (5,709) |
Other assets | 0 | 0 |
Total | 3,803,383 | 3,976,835 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
MBS | ||
Fair Value of MBS | 23 | 24 |
Mortgage loans, at fair value | 45,000 | |
Derivative assets, at fair value | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Other assets | 6,375 | 6,115 |
Total | 51,398 | 6,139 |
Fair Value, Measurements, Recurring | Agency MBS | ||
MBS | ||
Trading securities | 3,768,496 | 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 | 3,768,496 | 3,982,106 |
Fair Value, Measurements, Recurring | Agency MBS | Fair Value, Inputs, Level 3 | ||
MBS | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Non-Agency MBS | ||
MBS | ||
Trading securities | 33,501 | 24 |
Fair Value, Measurements, Recurring | Non-Agency MBS | Fair Value, Inputs, Level 1 | ||
MBS | ||
Trading securities | 0 | 0 |
Fair Value, Measurements, Recurring | Non-Agency MBS | Fair Value, Inputs, Level 2 | ||
MBS | ||
Trading securities | 33,478 | 0 |
Fair Value, Measurements, Recurring | Non-Agency MBS | Fair Value, Inputs, Level 3 | ||
MBS | ||
Trading securities | $ 23 | $ 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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 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 | 359 | 313 |
Purchases | 45,000 | |
Payments, net | (123) | (71) |
Accretion of discount | 23 | 20 |
Ending balance | 51,398 | 6,139 |
Net unrealized gains (losses) included in earnings for the period for Level 3 assets still held at the reporting date | $ 374 | $ 313 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Aug. 21, 2019 | May 29, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Line Items] | |||||
Intended annual distribution of taxable income | 100.00% | ||||
Required annual distribution of taxable income | 90.00% | ||||
Increase in valuation allowance | $ 38,128 | $ 16,761 | |||
Estimated net operating loss carryforwards | $ 14,588 | ||||
Net operating loss carryforwards, expiration year | 2028 | ||||
Capital loss carryforwards expiration in year 2020 | $ 102,322 | ||||
Capital loss carryforwards expiration in year 2021 | 66,862 | ||||
Capital loss carryforwards expiration in year 2022 | 3,763 | ||||
Capital loss carryforwards expiration in year 2023 | $ 110,323 | ||||
Excess AMT credit carryforwards refundable rate | 50.00% | ||||
AMT credit carryforward cash refund | $ 4,566 | ||||
AMT credit carryforwards | $ 4,566 | $ 9,132 | |||
Income tax examination, description | BPOL tax for the 2017 year remains subject to examination by Arlington County, although the county has previously informally indicated that it did not intend to pursue assessments for that year at such time | ||||
Tax Year 2018 | Arlington County, Virginia | |||||
Income Tax Disclosure [Line Items] | |||||
Tax assessment received for business, professional and occupation license tax | $ 488 | $ 9,380 | |||
Tax Year 2019 | Fairfax County [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Tax assessment received for business, professional and occupation license tax | $ 54 | ||||
Tax Year 2019 | Arlington County, Virginia | |||||
Income Tax Disclosure [Line Items] | |||||
Revised tax assessment received for business, professional and occupation license tax | $ 471 | ||||
Partial refund received for business, professional and occupation license tax | 118 | ||||
Tax Year 2018 and 2019 | Arlington County, Virginia | Other General and Administrative Expense | |||||
Income Tax Disclosure [Line Items] | |||||
BPOL tax expense | $ 892 | ||||
Tax Year 2017 | Arlington County, Virginia | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax remain subject to examination year | 2017 | ||||
Capital Loss Carryforward | |||||
Income Tax Disclosure [Line Items] | |||||
Tax Credit Carryforward, Amount | $ 283,270 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Federal | $ 562 | $ 33,495 | ||||
State | 171 | 6,108 | ||||
Total income tax provision | $ (33,639) | $ 9,628 | $ 6,493 | $ 18,251 | 733 | 39,603 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||||
Current | (1) | 706 | ||||
Deferred | 734 | 38,897 | ||||
Total income tax provision | $ (33,639) | $ 9,628 | $ 6,493 | $ 18,251 | $ 733 | $ 39,603 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ||||||
Federal income tax at statutory rate | $ (19,123) | $ 19,963 | ||||
State income taxes, net of federal benefit | (4,316) | 2,224 | ||||
Change in enacted tax rate | 409 | |||||
Change in expected enacted tax rate from REIT conversion | (14,744) | |||||
Other, net | 788 | 246 | ||||
Valuation allowance | 38,128 | 16,761 | ||||
Total income tax provision | $ (33,639) | $ 9,628 | $ 6,493 | $ 18,251 | $ 733 | $ 39,603 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Contractual Obligations by Fiscal Year (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Long-term debt maturities | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 25,000 |
2024 | 0 |
Thereafter | 50,300 |
Total | 75,300 |
Minimum rental commitments | |
2020 | 52 |
2021 | 65 |
2022 | 55 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total | 172 |
Contractual Obligations | |
2020 | 52 |
2021 | 65 |
2022 | 55 |
2023 | 25,000 |
2024 | 0 |
Thereafter | 50,300 |
Total | $ 75,472 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | Mar. 12, 2019USD ($)$ / sharesshares | Feb. 22, 2019USD ($)$ / sharesshares | Jun. 01, 2009 | May 31, 2017USD ($)$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017shares | Mar. 21, 2019shares | Aug. 10, 2018shares | May 16, 2017shares | Feb. 22, 2017shares |
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 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||
Common Stock Voting Rights Per Share Owned | 1 | ||||||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 1,951,305 | ||||||||||
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 | 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 | Common Stock | |||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||
Conversion of Class B common stock to Class A common stock (in shares) | 20,256 | ||||||||||
Issuance of stock (in shares) | 6,000,000 | 6,000,000 | 2,226,557 | 4,472,083 | |||||||
Public Offering Price Per Share | $ / shares | $ 8.16 | ||||||||||
Net proceeds underwriting discounts and commissions and expenses | $ | $ 48,827 | ||||||||||
Repurchase of Class A common stock (in shares) | 0 | 0 | |||||||||
Common Class A | Common Stock | Amended New 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 | New 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 New 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 Class B | Common Stock | |||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||
Conversion of Class B common stock to Class A common stock (in shares) | (20,256) | ||||||||||
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 | $ | $ 28,944 | ||||||||||
Preferred stock, shares authorized (in shares) | 2,500,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 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 are 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 | ||||||||||
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 | |||||||||
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 | ||||||||||
Undesignated Preferred Stock | |||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||
Preferred stock, shares authorized (in shares) | 20,400,000 | ||||||||||
Series B Preferred Stock | |||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||
Public Offering Price Per Share | $ / shares | $ 24 | ||||||||||
Net proceeds underwriting discounts and commissions and expenses | $ | $ 3,018 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 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 | Initial Public Offering | |||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||
Issuance of stock (in shares) | 135,000 | ||||||||||
Series B Preferred Stock | Preferred Stock | |||||||||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||||||||
Issuance of stock (in shares) | 3,444 | 47,304 | 303,291 | ||||||||
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) | 3,444 | 47,304 | |||||||||
Number of Shares Offer and Sell | 1,645,961 | ||||||||||
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 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends Declared and Paid (Details) - $ / shares | 3 Months Ended | |||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | ||||||||
Dividend Amount (in dollars per share) | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.550 |
Declaration Date | Dec. 13, 2019 | Sep. 17, 2019 | Jun. 24, 2019 | Mar. 18, 2019 | Dec. 13, 2018 | Sep. 13, 2018 | Jun. 14, 2018 | Mar. 15, 2018 |
Record Date | Dec. 31, 2019 | Sep. 30, 2019 | Jul. 5, 2019 | Mar. 29, 2019 | Dec. 31, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 29, 2018 |
Pay Date | Feb. 3, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 |
Shareholders' Equity - Issuance
Shareholders' Equity - Issuances of Stock under Equity Distribution Agreements (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 22, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Class A | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Shares issued | 6,000,000 | 6,000,000 | 2,226,557 | 4,472,083 | |
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 | 3,444 | 47,304 | 303,291 | ||
Series B Preferred Stock | Preferred Stock | Series B Preferred Equity Distribution Agreement | |||||
Class Of Stock [Line Items] | |||||
Shares issued | 3,444 | 47,304 | |||
Weighted average public offering price | $ 22.39 | $ 24.75 | |||
Net proceeds | [1] | $ 76 | $ 1,137 | ||
[1] | Net of selling commissions and expenses. |
Long-Term Incentive Plan - Addi
Long-Term Incentive Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 07, 2014 | |
Performance Stock Units | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense (Income) | $ 552 | $ (776) | $ 2,263 | ||
Allocated Share Based Compensation Expense Including Reversal | 1,945 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 1,808 | $ 2,166 | $ 4,485 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 3 months 25 days | ||||
Performance Stock Units | Minimum | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Threshold percentage of performance goals | 50.00% | ||||
Performance Stock Units | Maximum | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Threshold percentage of performance goals | 250.00% | ||||
ROE PSUs | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options conversion in period | 89,895 | 68,585 | |||
Shares granted (in shares) | 67,935 | 76,043 | 57,732 | ||
Grant date fair value per share | $ 6.83 | $ 10.31 | $ 13.58 | ||
Restricted Stock Units (RSUs) | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 1,603 | $ 1,552 | $ 1,284 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 4 months 24 days | ||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options conversion in period | 89,895 | 68,585 | |||
Allocated Share-based Compensation Expense | $ 1,488 | $ 1,132 | 1,172 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 838 | $ 818 | $ 970 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 311,962 | 243,376 | 162,841 | 161,891 | |
Shares granted (in shares) | 129,500 | 96,000 | 74,000 | ||
Grant date fair value per share | $ 5.49 | $ 9.34 | $ 12.74 | ||
Undistributed Restricted Stock Issued To Trust | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 9,155 | 9,155 | |||
Restricted Stock Units (RSUs) | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 466 | $ 480 | $ 491 | ||
Restricted Stock Units (RSUs) | Executive Chairman | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Shares granted (in shares) | 87,847 | ||||
Grant date fair value per share | $ 6.83 | ||||
Restricted Stock Units (RSUs) | Employee | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 274 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 87,847 | ||||
Restricted Stock Units (RSUs) | Non-employee Director | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Shares granted (in shares) | 57,970 | 42,402 | 33,540 | ||
Grant date fair value per share | $ 6.90 | $ 11.32 | $ 14.31 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 248,731 | ||||
Common Class A | Performance Stock Units | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Common Class A | Performance Stock Units | Minimum | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Vesting percentage | 0.00% | ||||
Common Class A | Performance Stock Units | Maximum | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Vesting percentage | 250.00% | ||||
Common Class A | Restricted Stock Units (RSUs) | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Intrinsic value | $ 603 | ||||
RSU's converted into shares | 0 | 0 | |||
Long Term Incentive Plan 2014 | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 300,000 | ||||
Long Term Incentive Plan 2014 | Stock Options and SARs | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 300,000 | ||||
ShareBased Compensation Arrangement By Share Based Payment Award Maximum Value Of Awards To Single Participant Not Settled In Shares | $ 10,000 | ||||
Long Term Incentive Plan 2014 | Common Class A | |||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,274,621 |
Long-Term Incentive Plan - Shar
Long-Term Incentive Plan - Share Based Compensation Performance Shares Grants Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Book Value PSUs | |||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||
Shares granted (in shares) | 67,935 | 76,043 | 57,732 |
Grant date fair value per share | $ 6.83 | $ 10.31 | $ 13.58 |
TSR PSUs | |||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||
Shares granted (in shares) | 26,977 | 32,052 | 23,787 |
Grant date fair value per share | $ 8.60 | $ 12.23 | $ 16.48 |
ROE PSUs | |||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||
Shares granted (in shares) | 67,935 | 76,043 | 57,732 |
Grant date fair value per share | $ 6.83 | $ 10.31 | $ 13.58 |
Long-Term Incentive Plan - Sh_2
Long-Term Incentive Plan - Share Based Compensation Award Valuation Assumptions (Details) - TSR PSUs - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | ||||
Closing stock price on date of grant | $ 6.83 | $ 10.31 | $ 13.58 | |
Beginning average stock price on date of grant | [1] | $ 6.90 | $ 11.16 | $ 14.53 |
Expected volatility | [2] | 20.54% | 24.68% | 24.03% |
Dividend yield | [3] | 0.00% | 0.00% | 0.00% |
Risk-free rate | [4] | 1.73% | 2.61% | 1.52% |
[1] | Based upon the 30 trading days prior to and including the date of grant. | |||
[2] | Based upon the most recent three-year volatility as of the date of grant. | |||
[3] | Dividend equivalents are accrued during the performance period and deemed reinvested in additional stock units, which are to be paid out at the end of the performance period to the extent the underlying PSU is earned. Applying dividend yield assumption of 0.00% in the Monte Carlo simulation is mathematically equivalent to reinvesting dividends on a continuous basis and including the value of the dividends in the final payout. | |||
[4] | Based upon the yield of a U.S. Treasury bond with a three-year maturity as of the date of grant. |
Long-Term Incentive Plan - Sh_3
Long-Term Incentive Plan - Share Based Compensation Award Valuation Assumptions (Parenthetical) (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | ||||
Trading period | 30 days | |||
TSR PSUs | ||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | [1] | 0.00% | 0.00% | 0.00% |
US Treasury Securities | TSR PSUs | ||||
Share based Compensation Arrangement by Share based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | |||
[1] | Dividend equivalents are accrued during the performance period and deemed reinvested in additional stock units, which are to be paid out at the end of the performance period to the extent the underlying PSU is earned. Applying dividend yield assumption of 0.00% in the Monte Carlo simulation is mathematically equivalent to reinvesting dividends on a continuous basis and including the value of the dividends in the final payout. |
Long-Term Incentive Plan - Sche
Long-Term Incentive Plan - Schedule of Unvested Restricted Stock Units Roll Forward (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | ||||
Share Balance (in shares) | 243,376 | 162,841 | 161,891 | |
Shares granted (in shares) | 129,500 | 96,000 | 74,000 | |
Shares Conversion of ROE PSUs (in shares) | 89,895 | 68,585 | ||
Forfeitures (in shares) | 0 | 0 | 0 | |
Vestitures (in shares) | (150,809) | (84,050) | (73,050) | |
Share Balance (in shares) | 311,962 | 243,376 | 162,841 | 161,891 |
Weighted-average Grant-date Fair Value | ||||
Balance (in dollars per share) | $ 8.73 | $ 11.84 | $ 15.18 | $ 18.47 |
Granted (in dollars per share) | 5.49 | 9.34 | 12.74 | |
Conversion of ROE PSUs (in dollars per share) | 10.31 | 13.58 | ||
Forfeitures (in dollars per share) | 0 | 0 | 0 | |
Vestitures (in dollars per share) | $ 11.92 | $ 16.87 | $ 20 | |
Weighted-average remaining vested period (in years) | 1 year 4 months 24 days | 1 year 6 months | 1 year 3 months 18 days | 1 year 4 months 24 days |
Long-Term Incentive Plan - Sh_4
Long-Term Incentive Plan - Share Based Compensation Restricted Stock Units Grants Activity (Details) - Restricted Stock Units (RSUs) - Non-employee Director - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share based Compensation Arrangement by Share based Payment Award [Line Items] | |||
RSUs granted | 57,970 | 42,402 | 33,540 |
Grant date fair value per share | $ 6.90 | $ 11.32 | $ 14.31 |
Quarterly Data (Unaudited) - Sc
Quarterly Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 28,255 | $ 28,674 | $ 32,717 | $ 33,832 | $ 37,174 | $ 32,864 | $ 30,055 | $ 30,860 | $ 123,478 | $ 130,953 | $ 121,248 |
Interest expense | 21,218 | 23,982 | 26,135 | 25,915 | 26,550 | 22,526 | 19,193 | 16,556 | 97,250 | 84,825 | 51,514 |
Net interest income | 7,037 | 4,692 | 6,582 | 7,917 | 10,624 | 10,338 | 10,862 | 14,304 | 26,228 | 46,128 | 69,734 |
Investment advisory fee income | 82 | 250 | 332 | ||||||||
Investment gain (loss), net | 23,308 | (8,231) | (26,683) | 13,803 | (68,910) | (2,257) | (4,516) | (48,139) | 2,197 | (123,822) | 5,874 |
General and administrative expenses | 3,017 | 4,198 | 3,424 | 4,376 | 1,658 | 3,954 | 3,461 | 4,297 | 15,015 | 13,370 | 18,570 |
Income (loss) before income taxes | (59,944) | 4,127 | 2,885 | (38,132) | 13,742 | (91,064) | 57,038 | ||||
Income tax provision (benefit) | (33,639) | 9,628 | 6,493 | 18,251 | 733 | 39,603 | |||||
Net income (loss) | 27,410 | (7,737) | (23,525) | 17,594 | (26,305) | (5,501) | (3,608) | (56,383) | 13,742 | (91,797) | 17,435 |
Dividend on preferred stock | (774) | (774) | (774) | (278) | (153) | (151) | (149) | (137) | (2,600) | (590) | (251) |
Net income (loss) available (attributable) to common stock | $ 26,636 | $ (8,511) | $ (24,299) | $ 17,316 | $ (26,458) | $ (5,652) | $ (3,757) | $ (56,520) | $ 11,142 | $ (92,387) | $ 17,184 |
Basic earnings (loss) per common share | $ 0.73 | $ (0.23) | $ (0.67) | $ 0.52 | $ (0.87) | $ (0.19) | $ (0.13) | $ (2) | $ 0.31 | $ (3.18) | $ 0.67 |
Diluted earnings (loss) per common share | $ 0.72 | $ (0.23) | $ (0.67) | $ 0.52 | $ (0.87) | $ (0.19) | $ (0.13) | $ (2) | $ 0.31 | $ (3.18) | $ 0.66 |