EXHIBIT 99.1
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PRESS RELEASE
Anworth Mortgage Announces Dividend of $0.50 Per Share,
Earnings of $0.45 Per Share for First Quarter
Santa Monica, California, April 23, 2002 -- Anworth Mortgage Asset Corporation
(AMEX: ANH) declared a dividend of $0.50 per share. The dividend is payable on
May 15, 2002 to holders of record as of the close of business on May 1, 2002.
The Company also reported diluted earnings for the quarter ended March 31, 2002,
of $4,115,000 or $0.45 per share (9,105,225 average common shares outstanding).
For the three months ended March 31, 2001, earnings were $545,000.
Total assets at the end of the first quarter of 2002 were approximately $963
million. Anworth's mortgage assets fall into five categories: 48% Agency ARMS,
36% Agency hybrid ARMS, 15% Agency fixed-rate MBS, 1% Agency floating-rate CMO,
and a $0.8 million position in the stock of another mortgage REIT. As of March
31, 2002, the company had commitments to purchase mortgage-backed securities
with a face value of $128 million. 80% of these commitments were to purchase
Agency hybrid ARMS and 20% were to purchase Agency fixed-rate MBS. Additionally,
in February 2002, the company raised approximately $40 million in new equity
capital.
Commenting on the Company's income and dividend, Lloyd McAdams, Chairman and
CEO, stated, "The Company's results continue to reflect the favorable yield
curve and spread environment we have experienced over the past several quarters.
I am pleased that the Company has been able to significantly increase the size
of its balance sheet since last December while continuing to earn an attractive
return on equity. One benefit of the recent significant capital-raising activity
is that the majority of the Company's assets have been acquired at the
attractive spread levels available in recent months."
McAdams continued, "A primary focus during the quarter was to quickly and fully
deploy the new capital raised while continuing to emphasize investments in what
we feel are the most attractive Agency ARM and Agency hybrid ARM securities. To
this end, the Company made significant use of forward settling transactions
during the quarter and also had approximately $128 million in forward
transactions not settled as of March 31, 2002. The income earned during the
quarter does not fully reflect the deployment of our new equity capital which
was invested in these forward transactions. As we look forward to future
calendar quarters, we expect the earning power reflected in these purchases to
have a positive impact on our earnings during those periods.
The average term of the Company's repurchase liabilities increased to 201 days
from 179 days during the quarter, and the Company's average cost of borrowings
was approximately 2.3% at quarter end. Additionally, the 3 month constant
prepayment rate of our ARM portfolio was 33% for the quarter.
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Anworth is a mortgage real estate investment trust (REIT) which invests in
mortgage assets, including mortgage pass-through certificates, collateralized
mortgage obligations, mortgage loans and other real estate securities. The
Company generates income for distribution to shareholders based on the
difference between the yield on its mortgage assets and the cost of its
borrowings.
Forward-Looking Statements
Certain statements herein are forward-looking statements within the meaning of
applicable federal securities laws, and can be identified by the use of
forward-looking terminology such as "may," "will," "intend," "should," "expect,"
"anticipate," "estimate" or "continue" or the negatives thereof or other
comparable terminology. The Company's actual results could differ materially
from those anticipated in such forward-looking statements as a result of certain
factors, including the risks set forth in the Company's Registration Statement
on Form S-11 and other documents filed by the Company with the Securities and
Exchange Commission.
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ANWORTH MORTGAGE ASSET CORPORATION
Balance Sheets
(Amounts in thousands)
March 31, 2002 December 31, 2001
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unaudited
Assets
Mortgage backed securities $ 907,299 $ 420,214
Other marketable securities 845 1,803
Cash and cash equivalents 49,262 290
Accrued interest and dividend receivable 5,754 2,293
Prepaid expenses and other 116 10
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$ 963,276 $ 424,610
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Liabilities and Stockholders Equity
Liabilities
Reverse repurchase agreements $ 816,331 $ 325,307
Payable for purchase of mortgage-backed securities 48,743 40,819
Accrued interest payable 2,137 1,293
Dividends payable - 1,329
Accrued expenses and other 1,249 865
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868,460 369,613
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STOCKHOLDERS' EQUITY
Preferred stock, par value $.01 per share;
authorized 20,000,000 shares;
no shares issued and outstanding - -
Common stock; par value $.01 per share;
authorized 100,000,000 shares; 11,853,327 and
7,000,765 issued and 11,803,327 and
6,950,765 outstanding respectively 119 70
Additional paid in capital, net 94,427 54,324
Accumulated other comprehensive income, unrealized
gain (loss) on available for sale securities (3,352) 705
Retained earnings 3,851 127
Treasury stock at cost (50,000 shares) (229) (229)
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94,816 54,997
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$ 963,276 $ 424,610
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ANWORTH MORTGAGE ASSET CORPORATION
Statements of Operations (unaudited)
For the 3 mos ended For the 3 mos ended
March 31, 2002 March 31, 2001
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Interest and dividend income net of
amortization of premium and discount $ 7,925 $ 2,556
Interest expense (3,007) (1,921)
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Net interest income $ 4,918 $ 635
Gain on sales 223 71
Expenses:
Management fee (208) (47)
Incentive fee (728) (56)
Other expense (90) (58)
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Net Income $ 4,115 $ 545
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Basic earnings per share $ 0.45 $ 0.23
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Dividends declared per share $ - $ 0.20
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Average number of shares outstanding 9,105 2,354
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Diluted earnings per share $ 0.45 $ 0.23
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Average number of diluted shares outstanding 9,212 2,354
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