x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Maryland
(State
or other jurisdiction of
incorporation
or organization)
350
Park Avenue, 21st Floor, New York, New York
(Address
of principal executive offices)
|
13-3974868
(I.R.S.
Employer
Identification
No.)
10022
(Zip
Code)
|
Large accelerated filer o | Accelerated filer x |
Non-accelerated filer o | Smaller reporting company o |
TABLE OF
CONTENTS
|
||
PART
I
Financial
Information
|
||
Page
|
||
Item 1. | Financial Statements | |
Consolidated Balance Sheets as of June 30, 2008 (Unaudited) and December 31, 2007 |
1
|
|
Consolidated Statements of Income (Unaudited) for the Three and Six Months Ended June 30, 2008 and June 30, 2007 |
2
|
|
|
||
Consolidated
Statement of Changes in Stockholders’ Equity (Unaudited) for
the Six Months Ended June 30, 2008
|
3
|
|
Consolidated
Statements of Cash Flows (Unaudited) for the Six
Months Ended June 30, 2008 and June 30, 2007
|
4
|
|
Consolidated
Statements of Comprehensive Income (Unaudited) for
the Three and Six Months Ended June 30, 2008 and June 30,
2007
|
5
|
|
Notes to the Consolidated Financial Statements (Unaudited) |
6
|
|
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
27
|
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
36
|
Item 4. | Controls and Procedures |
40
|
PART
II
Other
Information
|
||
Item 1. | Legal Proceedings |
41
|
Item 1A. | Risk Factors |
41
|
|
||
Item 4. | Submission of Matters to a Vote of Security Holders |
41
|
Item 6. | Exhibits |
41
|
Signatures |
44
|
June
30,
|
December
31,
|
|||||||
(In
Thousands, Except Per Share Amounts)
|
2008
|
2007
|
||||||
(Unaudited)
|
||||||||
Assets:
|
||||||||
Investment
securities at fair value (including pledged mortgage-backed securities
(“MBS”) of $10,029,077 and $8,046,947 at June 30, 2008 and December
31, 2007, respectively) (Notes 3, 7 and 9)
|
$ | 10,492,955 | $ | 8,302,797 | ||||
Cash
and cash equivalents
|
231,857 | 234,410 | ||||||
Restricted
cash (Note 2(d))
|
387 | 4,517 | ||||||
Interest
receivable (Note 4)
|
50,787 | 43,610 | ||||||
Interest
rate swap agreements (“Swaps”), at fair value
(Notes
2(m), 5 and 9)
|
12,891 | 103 | ||||||
Real
estate, net (Note 6)
|
11,477 | 11,611 | ||||||
Goodwill
(Note 2(f))
|
7,189 | 7,189 | ||||||
Prepaid
and other assets
|
1,926 | 1,622 | ||||||
Total
Assets
|
$ | 10,809,469 | $ | 8,605,859 | ||||
Liabilities:
|
||||||||
Repurchase
agreements (Note 7)
|
$ | 9,310,176 | $ | 7,526,014 | ||||
Accrued
interest payable
|
20,169 | 20,212 | ||||||
Mortgage
payable on real estate (Note 6)
|
9,385 | 9,462 | ||||||
Swaps,
at fair value (Notes 2(m), 5 and 9)
|
53,656 | 99,836 | ||||||
Excess
margin cash collateral (Note 7)
|
11,500 | - | ||||||
Dividends
and dividend equivalents payable (Note 10(b))
|
- | 18,005 | ||||||
Accrued
expenses and other liabilities
|
5,716 | 5,067 | ||||||
Total
Liabilities
|
9,410,602 | 7,678,596 | ||||||
Commitments
and contingencies (Note 8)
|
||||||||
Stockholders’
Equity:
|
||||||||
Preferred
stock, $.01 par value; series A 8.50% cumulative redeemable; 5,000
shares authorized; 3,840 shares issued and outstanding
at June 30, 2008 and December 31, 2007 ($96,000 aggregate
liquidation preference) (Note 10)
|
38 | 38 | ||||||
Common
stock, $.01 par value; 370,000 shares authorized; 197,783
and 122,887 issued and outstanding at June 30, 2008 and
December 31, 2007, respectively (Note 10)
|
1,978 | 1,229 | ||||||
Additional
paid-in capital, in excess of par
|
1,643,614 | 1,085,760 | ||||||
Accumulated
deficit
|
(171,698 | ) | (89,263 | ) | ||||
Accumulated
other comprehensive loss (Note 12)
|
(75,065 | ) | (70,501 | ) | ||||
Total
Stockholders’ Equity
|
1,398,867 | 927,263 | ||||||
Total
Liabilities and Stockholders’ Equity
|
$ | 10,809,469 | $ | 8,605,859 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
(In
Thousands, Except Per Share Amounts)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
(Unaudited)
|
||||||||||||||||
Interest
Income:
|
||||||||||||||||
Investment
securities (Note 3)
|
$ | 118,542 | $ | 90,392 | $ | 243,607 | $ | 174,739 | ||||||||
Cash
and cash equivalent investments
|
2,151 | 634 | 5,182 | 1,082 | ||||||||||||
Interest
Income
|
120,693 | 91,026 | 248,789 | 175,821 | ||||||||||||
Interest
Expense (Note 7)
|
76,661 | 78,348 | 170,133 | 150,608 | ||||||||||||
Net Interest
Income
|
44,032 | 12,678 | 78,656 | 25,213 | ||||||||||||
Other
Income/(Loss):
|
||||||||||||||||
Net
loss on sale of MBS (Note 3)
|
- | (116 | ) | (24,530 | ) | (113 | ) | |||||||||
Other-than-temporary
impairment on investment securities
(Note 3)
|
(4,017 | ) | - | (4,868 | ) | - | ||||||||||
Revenue
from operations of real estate (Note 6)
|
398 | 413 | 812 | 826 | ||||||||||||
Gain/(loss)
on early termination of Swaps, net (Note 5(a))
|
- | 176 | (91,481 | ) | 176 | |||||||||||
Miscellaneous
other income, net
|
87 | 109 | 179 | 224 | ||||||||||||
Other
(Loss)/Income
|
(3,532 | ) | 582 | (119,888 | ) | 1,113 | ||||||||||
Operating
and Other Expense:
|
||||||||||||||||
Compensation
and benefits (Note 13)
|
2,687 | 1,409 | 5,331 | 3,021 | ||||||||||||
Real
estate operating expense and mortgage interest (Note 6)
|
424 | 429 | 873 | 849 | ||||||||||||
New
business initiative (Note 14)
|
998 | - | 998 | - | ||||||||||||
Other
general and administrative expense
|
1,353 | 1,244 | 2,471 | 2,428 | ||||||||||||
Operating and Other
Expense
|
5,462 | 3,082 | 9,673 | 6,298 | ||||||||||||
Net
Income/(Loss) Before Preferred Stock Dividends
|
35,038 | 10,178 | (50,905 | ) | 20,028 | |||||||||||
Less: Preferred
Stock Dividends
|
2,040 | 2,040 | 4,080 | 4,080 | ||||||||||||
Net Income/(Loss) to Common
Stockholders
|
$ | 32,998 | $ | 8,138 | $ | (54,985 | ) | $ | 15,948 | |||||||
Income/(Loss)
Per Share of Common Stock – Basic and Diluted
(Note 11)
|
$ | 0.20 | $ | 0.10 | $ | (0.35 | ) | $ | 0.20 | |||||||
Dividends
Declared Per Share of Common Stock (Note 10(b))
|
$ | 0.18 | $ | 0.08 | $ | 0.18 | $ | 0.08 | ||||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
165,896 | 81,874 | 155,303 | 81,321 | ||||||||||||
Diluted
|
165,925 | 81,908 | 155,303 | 81,356 |
Six
Months
Ended
|
||||
(In
Thousands, Except Per Share Amounts)
|
June
30, 2008
|
|||
(Unaudited)
|
||||
Preferred
Stock, Series A 8.50% Cumulative Redeemable – Liquidation Preference
$25.00 per share:
|
||||
Balance
at June 30, 2008 and December 31, 2007 (3,840 shares)
|
$ | 38 | ||
Common
Stock, Par Value $0.01:
|
||||
Balance
at December 31, 2007 (122,887 shares)
|
1,229 | |||
Issuance
of common stock (74,896 shares)
|
749 | |||
Balance
at June 30, 2008 (197,783 shares)
|
1,978 | |||
Additional Paid-in Capital, in
Excess of Par:
|
||||
Balance
at December 31, 2007
|
1,085,760 | |||
Issuance
of common stock, net of expenses
|
557,261 | |||
Share-based
compensation expense
|
639 | |||
Shares
withheld upon exercise of common stock options (22 shares)
|
(46 | ) | ||
Balance
at June 30, 2008
|
1,643,614 | |||
Accumulated
Deficit:
|
||||
Balance
at December 31, 2007
|
(89,263 | ) | ||
Net
(loss)
|
(50,905 | ) | ||
Dividends
declared on common stock
|
(27,301 | ) | ||
Dividends
declared on preferred stock
|
(4,080 | ) | ||
Dividends
declared on dividend equivalent rights (“DERs”)
|
(149 | ) | ||
Balance
at June 30, 2008
|
(171,698 | ) | ||
Accumulated
Other Comprehensive Loss:
|
||||
Balance
at December 31, 2007
|
(70,501 | ) | ||
Unrealized
losses on investment securities, net
|
(63,532 | ) | ||
Unrealized
gains on Swaps
|
58,968 | |||
Balance
at June 30, 2008
|
(75,065 | ) | ||
Total
Stockholders’ Equity at June 30, 2008
|
$ | 1,398,867 |
Six
Months Ended
|
||||||||
June
30,
|
||||||||
(In
Thousands)
|
2008
|
2007
|
||||||
(Unaudited)
|
||||||||
Cash
Flows From Operating Activities:
|
||||||||
Net
(loss)/income
|
$ | (50,905 | ) | $ | 20,028 | |||
Adjustments
to reconcile net (loss)/income to net cash provided by operating
activities:
|
||||||||
Losses
on sale of MBS
|
25,101 | 116 | ||||||
Gains
on sales of MBS
|
(571 | ) | (3 | ) | ||||
Losses/(gain)
on early termination of Swaps
|
91,481 | (176 | ) | |||||
Amortization
of purchase premiums on MBS, net of accretion of discounts
|
10,910 | 16,504 | ||||||
Amortization
of premium cost for interest rate cap agreements (“Caps”)
|
- | 278 | ||||||
Increase
in interest receivable
|
(7,177 | ) | (3,170 | ) | ||||
Depreciation
and amortization on real estate
|
236 | 205 | ||||||
Increase
in other assets and other
|
(406 | ) | (313 | ) | ||||
Increase/(decrease)
in accrued expenses and other liabilities
|
649 | (676 | ) | |||||
(Decrease)/increase
in accrued interest payable
|
(43 | ) | 3,147 | |||||
Other-than-temporary
impairment charge
|
4,868 | - | ||||||
Equity-based
compensation expense
|
639 | 226 | ||||||
Negative
amortization and principal accretion on investment
securities
|
(339 | ) | (176 | ) | ||||
Net
cash provided by operating activities
|
74,443 | 35,990 | ||||||
Cash
Flows From Investing Activities:
|
||||||||
Principal
payments on MBS and other investment securities
|
809,416 | 976,331 | ||||||
Proceeds
from sale of MBS
|
1,851,019 | 55,296 | ||||||
Purchases
of MBS and other investment securities
|
(4,954,094 | ) | (1,718,186 | ) | ||||
Net
cash used by investing activities
|
(2,293,659 | ) | (686,559 | ) | ||||
Cash
Flows From Financing Activities:
|
||||||||
Decrease
in restricted cash
|
4,130 | - | ||||||
Principal
payments on repurchase agreements
|
(27,731,494 | ) | (18,275,825 | ) | ||||
Proceeds
from borrowings under repurchase agreements
|
29,515,656 | 18,932,599 | ||||||
Increase
in excess margin cash collateral
|
11,500 | - | ||||||
(Payments)/proceeds
from termination of Swaps
|
(91,481 | ) | 176 | |||||
Proceeds
from issuances of common stock
|
557,964 | 16,361 | ||||||
Dividends
paid on preferred stock
|
(4,080 | ) | (4,080 | ) | ||||
Dividends
paid on common stock and DERs
|
(45,455 | ) | (11,459 | ) | ||||
Principal
payments on mortgage
|
(77 | ) | (74 | ) | ||||
Net
cash provided by financing activities
|
2,216,663 | 657,698 | ||||||
Net
(decrease)/increase in cash and cash equivalents
|
(2,553 | ) | 7,129 | |||||
Cash
and cash equivalents at beginning of period
|
234,410 | 47,200 | ||||||
Cash
and cash equivalents at end of period
|
$ | 231,857 | $ | 54,329 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
(In
Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
(Unaudited)
|
||||||||||||||||
Net
income/(loss) before preferred stock dividends
|
$ | 35,038 | $ | 10,178 | $ | (50,905 | ) | $ | 20,028 | |||||||
Other
Comprehensive Income/(Loss):
|
||||||||||||||||
Unrealized
loss on investment securities, net
|
(66,545 | ) | (27,152 | ) | (56,797 | ) | (14,652 | ) | ||||||||
Reclassification
adjustment for MBS sales
|
- | - | (8,241 | ) | - | |||||||||||
Reclassification
adjustment for net losses included in net income/(loss)
for other-than-temporary impairments
|
2,117 | - | 1,506 | - | ||||||||||||
Unrealized
loss on Caps arising during period, net
|
- | (32 | ) | - | (83 | ) | ||||||||||
Unrealized
gain on Swaps arising during period, net
|
100,819 | 19,205 | 10,806 | 14,505 | ||||||||||||
Reclassification
adjustment for net losses included in net income/(loss)
from Swaps
|
- | - | 48,162 | - | ||||||||||||
Comprehensive
income/(loss) before preferred stock dividends
|
$ | 71,429 | $ | 2,199 | $ | (55,469 | ) | $ | 19,798 | |||||||
Dividends
on preferred stock
|
(2,040 | ) | (2,040 | ) | (4,080 | ) | (4,080 | ) | ||||||||
Comprehensive
Income/(Loss) to Common Stockholders
|
$ | 69,389 | $ | 159 | $ | (59,549 | ) | $ | 15,718 | |||||||
1.
|
Organization
|
|
2.
|
Summary of Significant
Accounting Policies
|
June
30, 2008
|
||||||||||||||||||||||||||||||||
(In
Thousands)
|
Principal/
Current Face
|
Purchase
Premiums
|
Purchase
Discounts
|
Amortized
Cost (1)
|
Carrying
Value/
Fair
Value
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Net
Unrealized Gain/(Loss)
|
||||||||||||||||||||||||
Agency
MBS:
|
||||||||||||||||||||||||||||||||
Fannie
Mae
|
$ | 9,262,787 | $ | 119,576 | $ | (1,447 | ) | $ | 9,380,916 | $ | 9,385,378 | $ | 53,176 | $ | (48,714 | ) | $ | 4,462 | ||||||||||||||
Ginnie
Mae
|
34,514 | 611 | - | 35,125 | 34,866 | 33 | (292 | ) | (259 | ) | ||||||||||||||||||||||
Freddie
Mac
|
751,870 | 11,367 | - | 769,105 | 767,754 | 2,141 | (3,492 | ) | (1,351 | ) | ||||||||||||||||||||||
Non-Agency
MBS: (2)
|
||||||||||||||||||||||||||||||||
Rated
AAA
|
338,373 | 2,102 | (696 | ) | 339,779 | 303,135 | - | (36,644 | ) | (36,644 | ) | |||||||||||||||||||||
Rated
AA+
|
919 | - | (3 | ) | 916 | 768 | - | (148 | ) | (148 | ) | |||||||||||||||||||||
Rated
A+
|
644 | - | (2 | ) | 642 | 508 | - | (134 | ) | (134 | ) | |||||||||||||||||||||
Rated
BBB+
|
368 | - | (5 | ) | 363 | 242 | - | (121 | ) | (121 | ) | |||||||||||||||||||||
Rated
BB and below
|
598 | - | (189 | ) | 409 | 304 | 25 | (130 | ) | (105 | ) | |||||||||||||||||||||
Total
|
$ | 10,390,073 | $ | 133,656 | $ | (2,342 | ) | $ | 10,527,255 | $ | 10,492,955 | $ | 55,375 | $ | (89,675 | ) | $ | (34,300 | ) | |||||||||||||
December
31, 2007
|
||||||||||||||||||||||||||||||||
(In
Thousands)
|
Principal/
Current Face
|
Purchase
Premiums
|
Purchase
Discounts
|
Amortized
Cost (1)
|
Carrying
Value/
Fair
Value
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Net
Unrealized Gain/(Loss)
|
||||||||||||||||||||||||
Agency
MBS:
|
||||||||||||||||||||||||||||||||
Fannie
Mae
|
$ | 7,157,079 | $ | 91,610 | $ | (706 | ) | $ | 7,247,983 | $ | 7,287,111 | $ | 47,486 | $ | (8,358 | ) | $ | 39,128 | ||||||||||||||
Ginnie
Mae
|
172,340 | 3,173 | - | 175,513 | 174,089 | 78 | (1,502 | ) | (1,424 | ) | ||||||||||||||||||||||
Freddie
Mac
|
393,441 | 6,221 | - | 409,337 | 408,792 | 781 | (1,326 | ) | (545 | ) | ||||||||||||||||||||||
Non-Agency
MBS:
(2)
|
||||||||||||||||||||||||||||||||
Rated
AAA
|
430,025 | 2,341 | (987 | ) | 431,379 | 424,954 | 97 | (6,522 | ) | (6,425 | ) | |||||||||||||||||||||
Rated
AA+
|
1,413 | - | - | 1,413 | 1,392 | - | (21 | ) | (21 | ) | ||||||||||||||||||||||
Rated
A+
|
989 | - | (3 | ) | 986 | 967 | - | (19 | ) | (19 | ) | |||||||||||||||||||||
Rated
BBB+
|
565 | - | (6 | ) | 559 | 543 | - | (16 | ) | (16 | ) | |||||||||||||||||||||
Rated
BB and below
|
1,648 | - | (136 | ) | 1,512 | 1,646 | 134 | - | 134 | |||||||||||||||||||||||
Unrated
|
3,095 | - | (127 | ) | 2,968 | 1,689 | 35 | (1,314 | ) | (1,279 | ) | |||||||||||||||||||||
Total
MBS
|
$ | 8,160,595 | $ | 103,345 | $ | (1,965 | ) | $ | 8,271,650 | $ | 8,301,183 | $ | 48,611 | $ | (19,078 | ) | $ | 29,533 | ||||||||||||||
Income
notes (3)
|
- | 1,915 | 1,614 | - | (301 | ) | (301 | ) | ||||||||||||||||||||||||
Total
|
$ | 8,160,595 | $ | 103,345 | $ | (1,965 | ) | $ | 8,273,565 | $ | 8,302,797 | $ | 48,611 | $ | (19,379 | ) | $ | 29,232 |
(1) Includes
principal payments receivable, which is not included in the
Principal/Current Face.
|
||||||||||||||||||||||||||||||||
(2) Based
upon ratings by Standard & Poor's Corporation.
|
||||||||||||||||||||||||||||||||
(3) Other
investments are comprised of income notes, which are unrated securities
collateralized by capital securities of a diversified pool of issuers,
consisting primarily of depository institutions and insurance
companies. During the quarter ended June 30, 2008, the Company
wrote-off its remaining investment in income notes, taking a $1.0 million
impairment charge against such investment.
|
Unrealized
Loss Position For:
|
||||||||||||||||||||||||||||||||
Less
than 12 Months
|
12
Months or more
|
Total
|
||||||||||||||||||||||||||||||
(In
Thousands)
|
Fair
Value
|
Unrealized
losses
|
Number
of Securities
|
Fair
Value
|
Unrealized
losses
|
Number
of Securities
|
Fair
Value
|
Unrealized
losses
|
||||||||||||||||||||||||
Agency
MBS:
|
||||||||||||||||||||||||||||||||
Fannie
Mae
|
$ | 3,847,802 | $ | 39,745 | 219 | $ | 583,678 | $ | 8,969 | 110 | $ | 4,431,480 | $ | 48,714 | ||||||||||||||||||
Ginnie
Mae
|
16,127 | 100 | 8 | 9,990 | 192 | 6 | 26,117 | 292 | ||||||||||||||||||||||||
Freddie
Mac
|
368,578 | 2,460 | 34 | 44,914 | 1,032 | 29 | 413,492 | 3,492 | ||||||||||||||||||||||||
Non-Agency
MBS:
|
||||||||||||||||||||||||||||||||
Rated
AAA
|
181,548 | 16,993 | 3 | 121,587 | 19,651 | 13 | 303,135 | 36,644 | ||||||||||||||||||||||||
Rated
AA+
|
768 | 148 | 1 | - | - | - | 768 | 148 | ||||||||||||||||||||||||
Rated
A+
|
508 | 134 | 1 | - | - | - | 508 | 134 | ||||||||||||||||||||||||
Rated
BBB+
|
242 | 121 | 1 | - | - | - | 242 | 121 | ||||||||||||||||||||||||
Rated
BB and below
|
279 | 130 | 2 | - | - | - | 279 | 130 | ||||||||||||||||||||||||
Total
temporarily impaired
securities
|
$ | 4,415,852 | $ | 59,831 | 269 | $ | 760,169 | $ | 29,844 | 158 | $ | 5,176,021 | $ | 89,675 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(In
Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Accumulated
other comprehensive income/(loss) from
investment securities:
|
||||||||||||||||
Unrealized
gain/(loss) on investment securities at beginning
of period
|
$ | 30,128 | $ | (18,495 | ) | $ | 29,232 | $ | (30,995 | ) | ||||||
Unrealized
loss on investment securities, net
|
(66,545 | ) | (27,152 | ) | (56,797 | ) | (14,652 | ) | ||||||||
Reclassification
adjustment for MBS sales included
in net income/(loss)
|
- | - | (8,241 | ) | - | |||||||||||
Reclassification
adjustment for other-than-temporary
impairment included in net income/(loss)
|
2,117 | - | 1,506 | - | ||||||||||||
Balance
at the end of period
|
$ | (34,300 | ) | $ | (45,647 | ) | $ | (34,300 | ) | $ | (45,647 | ) |
Three
Months Ended
June 30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(In
Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Coupon
interest on MBS
|
$ | 124,185 | $ | 98,501 | $ | 254,467 | $ | 191,186 | ||||||||
Premium
amortization
|
(5,705 | ) | (8,215 | ) | (11,063 | ) | (16,560 | ) | ||||||||
Discount
accretion
|
62 | 55 | 153 | 56 | ||||||||||||
Interest
income on MBS, net
|
$ | 118,542 | $ | 90,341 | $ | 243,557 | $ | 174,682 |
June
30, 2008
|
||||||||||||
Months
to Coupon Reset or Contractual Payment
|
Fair
Value
|
%
of Total
|
WAC (1)
|
|||||||||
(Dollars
in Thousands)
|
||||||||||||
Within
one month
|
$ | 478,746 | 4.6 | % | 5.77 | % | ||||||
One
to three months
|
108,553 | 1.0 | 6.33 | |||||||||
Three
to 12 Months
|
359,616 | 3.4 | 5.52 | |||||||||
One
to two years
|
408,886 | 3.9 | 4.92 | |||||||||
Two
to three years
|
1,275,897 | 12.2 | 5.82 | |||||||||
Three
to five years
|
2,374,292 | 22.6 | 5.66 | |||||||||
Five
to 10 years
|
5,486,965 | 52.3 | 5.62 | |||||||||
Total
|
$ | 10,492,955 | 100.0 | % | 5.64 | % |
MBS
Pledged Under Repurchase Agreements
|
MBS
Pledged Against Swaps
|
|||||||||||||||||||||||||||
(In
Thousands)
|
Fair
Value/ Carrying Value
|
Amortized
Cost
|
Accrued
Interest on Pledged MBS
|
Fair
Value/ Carrying Value
|
Amortized
Cost
|
Accrued
Interest on Pledged MBS
|
Total
Fair Value of MBS Pledged and Accrued Interest
|
|||||||||||||||||||||
MBS
Pledged:
|
||||||||||||||||||||||||||||
Fannie
Mae
|
$ | 8,981,863 | $ | 8,973,186 | $ | 41,543 | $ | 21,822 | $ | 22,109 | $ | 103 | $ | 9,045,331 | ||||||||||||||
Freddie
Mac
|
689,664 | 690,374 | 5,089 | 12,613 | 12,834 | 139 | 707,505 | |||||||||||||||||||||
Ginnie
Mae
|
26,882 | 27,105 | 135 | 6,199 | 6,222 | 32 | 33,248 | |||||||||||||||||||||
Rated
AAA
|
290,034 | 324,199 | 1,523 | - | - | - | 291,557 | |||||||||||||||||||||
$ | 9,988,443 | $ | 10,014,864 | $ | 48,290 | $ | 40,634 | $ | 41,165 | $ | 274 | $ | 10,077,641 |
(In
Thousands)
|
June 30,
2008
|
December 31,
2007
|
||||||
Interest
Receivable on:
|
||||||||
Fannie
Mae MBS
|
$ | 43,347 | $ | 36,376 | ||||
Ginnie
Mae MBS
|
177 | 870 | ||||||
Freddie
Mac MBS
|
5,617 | 4,177 | ||||||
MBS
rated AAA
|
1,594 | 2,070 | ||||||
MBS
rated AA
|
5 | 7 | ||||||
MBS
rated A & A-
|
3 | 5 | ||||||
MBS
rated BBB and BBB-
|
2 | 3 | ||||||
MBS
rated BB and below
|
3 | 7 | ||||||
MBS
interest receivable
|
$ | 50,748 | $ | 43,515 | ||||
Income
notes
|
- | 3 | ||||||
Cash
investments
|
39 | 92 | ||||||
Total
interest receivable
|
$ | 50,787 | $ | 43,610 |
Derivates
Designated as Hedging Instruments Under Statement 133
|
Balance
Sheet Location
|
June 30,
2008 |
December 31,
2007 |
||||||
(In
Thousands)
|
|||||||||
Swap
assets
|
Assets-Swaps,
at fair value
|
$ | 12,891 | $ | 103 | ||||
Swap
liabilities
|
Liabilities-Swaps,
at fair value
|
(53,656 | ) | (99,836 | ) | ||||
$ | (40,765 | ) | $ | (99,733 | ) |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(In
Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Accumulated
other comprehensive
(loss)/income
from Hedging Instruments:
|
||||||||||||||||
Balance
at beginning of period
|
$ | (141,584 | ) | $ | (4,149 | ) | $ | (99,733 | ) | $ | 602 | |||||
Unrealized
gains on Hedging Instruments
|
100,819 | 19,173 | 10,806 | 14,422 | ||||||||||||
Reclassification
adjustment for net losses included
in net income/(loss) from Hedging
Instruments
|
- | - | 48,162 | - | ||||||||||||
Balance
at the end of period
|
$ | (40,765 | ) | $ | 15,024 | $ | (40,765 | ) | $ | 15,024 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(Dollars
In Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Weighted
average Swap rate paid
|
4.18 | % | 4.98 | % | 4.40 | % | 4.98 | % | ||||||||
Weighted
average Swap rate received
|
2.80 | % | 5.32 | % | 3.37 | % | 5.33 | % | ||||||||
Net
addition to/(reduction of) interest expense
from Swaps
|
$
|
14,563 |
$
|
(2,159 | ) |
$
|
23,894 |
$
|
(3,821 | ) |
June
30, 2008
|
December
31, 2007
|
|||||||||||||||
Maturity
(1)
|
Notional
Amount
|
Weighted
Average Fixed Pay Interest Rate
|
Notional
Amount
|
Weighted
Average Fixed Pay Interest Rate
|
||||||||||||
(Dollars
In Thousands)
|
||||||||||||||||
Within
30 days
|
$
|
77,960 | 3.93 | % |
$
|
69,561 | 4.95 | % | ||||||||
Over
30 days to 3 months
|
158,145 | 4.08 | 179,207 | 4.79 | ||||||||||||
Over
3 months to 6 months
|
238,025 | 4.07 | 233,753 | 4.83 | ||||||||||||
Over
6 months to 12 months
|
453,258 | 4.05 | 453,949 | 4.83 | ||||||||||||
Over
12 months to 24 months
|
898,867 | 4.14 | 1,107,689 | 4.90 | ||||||||||||
Over
24 months to 36 months
|
829,113 | 4.19 | 941,382 | 4.84 | ||||||||||||
Over
36 months to 48 months
|
565,728 | 4.26 | 552,772 | 4.80 | ||||||||||||
Over
48 months to 60 months
|
627,182 | 4.35 | 826,489 | 4.72 | ||||||||||||
Over
60 months
|
311,276 | 4.18 | 262,758 | 4.95 | ||||||||||||
Total
|
$
|
4,159,554 | 4.18 | % |
$
|
4,627,560 | 4.83 | % | ||||||||
(1)
Reflects contractual amortization of notional amounts.
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(In
Thousands)
|
2008 (1)
|
2007
|
2008 (1)
|
2007
|
||||||||||||
Premium
amortization on Caps
|
$
|
- |
$
|
97 |
$
|
- |
$
|
278 | ||||||||
Payments
earned on Caps
|
- | (131 | ) | - | (327 | ) | ||||||||||
Net
decrease to interest expense
related
to Caps
|
$
|
- |
$
|
(34 | ) |
$
|
- |
$
|
(49 | ) | ||||||
(1) The Company had no Caps at
or during the three and six months ended June 30,
2008.
|
6.
|
Real
Estate
|
(In
Thousands)
|
June 30,
2008
|
December 31,
2007
|
||||||
Real
Estate Assets and Liabilities:
|
||||||||
Land
and buildings, net of accumulated depreciation
|
$ | 11,477 | $ | 11,611 | ||||
Cash
|
29 | 26 | ||||||
Prepaid
and other assets
|
172 | 260 | ||||||
Mortgage
payable (1)
|
(9,385 | ) | (9,462 | ) | ||||
Accrued
interest and other payables
|
(174 | ) | (256 | ) | ||||
Real
estate assets, net
|
$ | 2,119 | $ | 2,179 |
(In
Thousands)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenue
from operations of real estate
|
$ | 398 | $ | 413 | $ | 812 | $ | 826 | ||||||||
Mortgage
interest expense
|
(165 | ) | (164 | ) | (328 | ) | (331 | ) | ||||||||
Other
real estate operations expense
|
(259 | ) | (265 | ) | (545 | ) | (518 | ) | ||||||||
Loss
from real estate operations, including depreciation
expense, net
|
$ | (26 | ) | $ | (16 | ) | $ | (61 | ) | $ | (23 | ) |
7.
|
Repurchase
Agreements
|
June
30, 2008
|
||||||||
Weighted
Average
|
||||||||
Maturity (1)
|
Balance
|
Interest
Rate
|
||||||
(Dollars
In Thousands)
|
||||||||
Within
30 days
|
$ | 4,468,460 | 2.45 | % | ||||
Over
30 days to 3 months
|
3,259,788 | 2.37 | ||||||
Over
3 months to 6 months
|
190,910 | 3.56 | ||||||
Over
6 months to 12 months
|
171,000 | 4.88 | ||||||
Over
12 months to 24 months
|
891,348 | 5.12 | ||||||
Over
24 months to 36 months
|
185,770 | 4.06 | ||||||
Over
36 months
|
142,900 | 4.05 | ||||||
$ | 9,310,176 | 2.80 | % |
Fair
Value at June 30, 2008
|
||||||||||||||||
(In
Thousands)
|
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
MBS
|
$ | - | $ | 10,492,955 | $ | - | $ | 10,492,955 | ||||||||
Swaps
|
- | 12,891 | - | 12,891 | ||||||||||||
Total
assets carried at fair value
|
$ | - | $ | 10,505,846 | $ | - | $ | 10,505,846 | ||||||||
Liabilities:
|
||||||||||||||||
Swaps
|
$ | - | $ | 53,656 | $ | - | $ | 53,656 | ||||||||
Total
liabilities carried at fair value
|
$ | - | $ | 53,656 | $ | - | $ | 53,656 |
Year
|
Declaration
Date
|
Record
Date
|
Payment
Date
|
Cash
Dividend
Per
Share
|
|||
2008
|
May
22, 2008
|
June
2, 2008
|
June
30, 2008
|
$ | 0.53125 | ||
February
21, 2008
|
March
3, 2008
|
March
31, 2008
|
0.53125 | ||||
2007
|
November
21, 2007
|
December
3, 2007
|
December
31, 2007
|
$ | 0.53125 | ||
August
24, 2007
|
September
4, 2007
|
September
28, 2007
|
0.53125 | ||||
May
21, 2007
|
June
1, 2007
|
June
29, 2007
|
0.53125 | ||||
February
16, 2007
|
March
1, 2007
|
March
30, 2007
|
0.53125 |
Year
|
Declaration
Date
|
Record
Date
|
Payment
Date
|
Cash
Dividend
Per
Share
|
|||
2008
|
April
1, 2008
|
April
14, 2008
|
April
30, 2008
|
$ | 0.180 | ||
2007
|
December
13, 2007
|
December
31, 2007
|
January
31, 2008
|
$ | 0.145 | ||
October
1, 2007
|
October
12, 2007
|
October
31, 2007
|
0.100 | ||||
July
2, 2007
|
July
13, 2007
|
July
31, 2007
|
0.090 | ||||
April
3, 2007
|
April
13, 2007
|
April
30, 2007
|
0.080 |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(In
Thousands, Except Per Share Amounts)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Numerator:
|
||||||||||||||||
Net
income/(loss)
|
$ | 35,038 | $ | 10,178 | $ | (50,905 | ) | $ | 20,028 | |||||||
Dividends
declared on preferred stock
|
(2,040 | ) | (2,040 | ) | (4,080 | ) | (4,080 | ) | ||||||||
Net
income/(loss) to common stockholders for basic and diluted earnings
per share
|
$ | 32,998 | $ | 8,138 | $ | (54,985 | ) | $ | 15,948 | |||||||
Denominator:
|
||||||||||||||||
Weighted
average common shares for basic earnings per share
|
165,896 | 81,874 | 155,303 | 81,321 | ||||||||||||
Weighted
average dilutive employee stock options (1)
|
29 | 34 | - | 35 | ||||||||||||
Denominator for diluted
earnings per share (1)
|
165,925 | 81,908 | 155,303 | 81,356 | ||||||||||||
Basic
and diluted net earnings/(loss) per share
|
$ | 0.20 | $ | 0.10 | $ | (0.35 | ) | $ | 0.20 | |||||||
(1) The
impact of dilutive stock options is not included in the computation of
earnings per share for the six months ended June 30,
2008, as their inclusion would be anti-dilutive.
|
(In
Thousands)
|
June
30,
2008
|
December 31,
2007 |
||||||
Available-for-sale
Investment Securities:
|
||||||||
Unrealized
gains
|
$ | 55,375 | $ | 48,611 | ||||
Unrealized
losses
|
(89,675 | ) | (19,379 | ) | ||||
(34,300 | ) | 29,232 | ||||||
Hedging
Instruments:
|
||||||||
Unrealized
gains on Swaps
|
12,891 | 103 | ||||||
Unrealized
losses on Swaps
|
(53,656 | ) | (99,836 | ) | ||||
(40,765 | ) | (99,733 | ) | |||||
Accumulated
other comprehensive loss
|
$ | (75,065 | ) | $ | (70,501 | ) |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(In
Thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Options
|
$ | - | $ | - | $ | - | $ | 5 | ||||||||
Restricted
shares of common stock
|
75 | 63 | 194 | 228 | ||||||||||||
RSUs
|
222 | - | 445 | - | ||||||||||||
Total
|
$ | 297 | $ | 63 | $ | 639 | $ | 233 |
June
30, 2008
|
December
31, 2007
|
|||||||||||||||
(In
Thousands)
|
Cumulative
Income
Deferred
|
Liability
Under
Deferred
Plans
|
Cumulative
Income Deferred
|
Liability
Under
Deferred
Plans
|
||||||||||||
Directors’
deferred
|
$ | 551 | $ | 547 | $ | 551 | $ | 745 | ||||||||
Officers’
deferred
|
282 | 256 | 282 | 348 | ||||||||||||
$ | 833 | $ | 803 | $ | 833 | $ | 1,093 |
At
the Period Ended
|
Leverage
Multiple
|
|||
June
30, 2008
|
6.7 | x | ||
March
31, 2008
|
7.0 | x | ||
December
31, 2007
|
8.1 | x | ||
September
30, 2007
|
8.3 | x | ||
June
30, 2007
|
9.1 | x |
Quarter
Ended
|
Gross
Yield/Stated Coupon
|
Net
Premium Amortization
|
Cost
of Delay for Principal Receivable
|
Net
Yield
|
||||||||||||
June
30, 2008
|
5.77 | % | (0.26 | )% | (0.15 | )% | 5.36 | % | ||||||||
March
31, 2008
|
6.01 | (0.24 | ) | (0.15 | ) | 5.62 | ||||||||||
December
31, 2007
|
6.12 | (0.25 | ) | (0.14 | ) | 5.73 | ||||||||||
September
30, 2007
|
6.12 | (0.38 | ) | (0.16 | ) | 5.58 | ||||||||||
June
30, 2007
|
6.09 | (0.50 | ) | (0.19 | ) | 5.40 |
Quarter
Ended
|
CPR
|
|||
June
30, 2008
|
15.8 | % | ||
March
31, 2008
|
14.3 | |||
December
31, 2007
|
13.4 | |||
September
30, 2007
|
18.1 | |||
June
30, 2007
|
22.5 |
Quarter
Ended
|
30-Day
LIBOR
|
6-Month
LIBOR
|
12-Month
LIBOR
|
1-Year
CMT
|
2-Year
Treasury
|
10-Year
Treasury
|
||||||||||||||||||
June
30, 2008
|
2.46 | % | 3.11 | % | 3.31 | % | 2.36 | % | 2.62 | % | 3.98 | % | ||||||||||||
March
31, 2008
|
2.70 | 2.61 | 2.49 | 1.55 | 1.63 | 3.43 | ||||||||||||||||||
December
31, 2007
|
4.60 | 4.60 | 4.22 | 3.34 | 3.05 | 4.03 | ||||||||||||||||||
September
30, 2007
|
5.12 | 5.13 | 4.90 | 4.05 | 3.96 | 4.58 | ||||||||||||||||||
June
30, 2007
|
5.32 | 5.39 | 5.43 | 4.91 | 4.88 | 5.03 | ||||||||||||||||||
March
31, 2007
|
5.32 | 5.33 | 5.22 | 4.90 | 4.58 | 4.65 |
Quarter
Ended
|
Net
Interest Spread
|
Net
Interest
Margin (1)
|
||||||
June
30, 2008
|
1.38 | % | 1.89 | % | ||||
March
31, 2008
|
0.90 | 1.47 | ||||||
December
31, 2007
|
0.65 | 1.22 | ||||||
September
30, 2007
|
0.36 | 0.90 | ||||||
June
30, 2007
|
0.20 | 0.74 | ||||||
(1) Net
interest income divided by interest-earning assets.
|
Quarter
Ended
|
Average
Amortized Cost of
MBS (1)
|
Interest
Income on Investment Securities
|
Average
Cash, Cash Equivalents and Restricted Cash
|
Total
Interest Income
|
Yield
on Average Interest-Earning Assets
|
Average
Balance of Repurchase Agreements
|
Interest
Expense
|
Average
Cost of Funds
|
Net
Interest Income
|
|||||||||||||||||||||||||||
(Dollars
in Thousands)
|
||||||||||||||||||||||||||||||||||||
June
30, 2008
|
$ | 8,844,406 | $ | 118,542 | $ | 375,326 | $ | 120,693 | 5.23 | % | $ | 8,001,835 | $ | 76,661 | 3.85 | % | $ | 44,032 | ||||||||||||||||||
March
31, 2008
|
8,902,340 | 125,065 | 347,970 | 128,096 | 5.54 | 8,100,961 | 93,472 | 4.64 | 34,624 | |||||||||||||||||||||||||||
December
31, 2007
|
7,681,065 | 109,999 | 196,344 | 112,284 | 5.70 | 6,975,521 | 88,881 | 5.05 | 23,403 | |||||||||||||||||||||||||||
September
30, 2007
|
6,852,994 | 95,590 | 90,006 | 96,716 | 5.57 | 6,225,695 | 81,816 | 5.21 | 14,900 | |||||||||||||||||||||||||||
June
30, 2007
|
6,696,979 | 90,392 | 51,160 | 91,026 | 5.39 | 6,051,209 | 78,348 | 5.19 | 12,678 | |||||||||||||||||||||||||||
(1)
Unrealized gains and losses are not reflected in the average amortized
cost of MBS.
|
CPR
|
Estimated
Months to Asset Reset or Expected Prepayment
|
Estimated Months to Liabilities
Reset (1)
|
Repricing
Gap in Months
|
|||||||||||
0 | % (2) | 61 | 17 | 44 | ||||||||||
15 | % | 38 | 17 | 21 | ||||||||||
20 | % | 33 | 17 | 16 | ||||||||||
25 | % | 29 | 17 | 12 | ||||||||||
(1) Reflects
the effect of our Swaps.
|
||||||||||||||
(2) Reflects
contractual maturities, which does not consider any
prepayments.
|
At
June 30, 2008
|
||||||||||||||||||||||||
(In
Thousands)
|
Less
than Three Months
|
Three
Months to One Year
|
One
Year to Two Years
|
Two
Years to Three Years
|
Beyond
Three Years
|
Total
|
||||||||||||||||||
Interest-Earning
Assets:
|
||||||||||||||||||||||||
Investment
securities
|
$ | 1,124,764 | $ | 1,731,359 | $ | 1,789,053 | $ | 1,822,815 | $ | 4,024,964 | $ | 10,492,955 | ||||||||||||
Cash
and restricted cash
|
232,244 | - | - | - | - | 232,244 | ||||||||||||||||||
Total
interest-earning assets
|
$ | 1,357,008 | $ | 1,731,359 | $ | 1,789,053 | $ | 1,822,815 | $ | 4,024,964 | $ | 10,725,199 | ||||||||||||
Interest-Bearing
Liabilities:
|
||||||||||||||||||||||||
Repurchase
agreements
|
$ | 7,728,248 | $ | 361,910 | $ | 891,348 | $ | 185,770 | $ | 142,900 | $ | 9,310,176 | ||||||||||||
Mortgage
payable on real estate
|
- | - | - | - | 9,385 | 9,385 | ||||||||||||||||||
Total
interest-bearing liabilities
|
$ | 7,728,248 | $ | 361,910 | $ | 891,348 | $ | 185,770 | $ | 152,285 | $ | 9,319,561 | ||||||||||||
Gap
before Hedging Instruments
|
$ | (6,371,240 | ) | $ | 1,369,449 | $ | 897,705 | $ | 1,637,045 | $ | 3,872,679 | $ | 1,405,638 | |||||||||||
Swaps,
notional amount
|
$ | 4,159,554 | $ | - | $ | - | $ | - | $ | - | $ | 4,159,554 | ||||||||||||
Cumulative
Difference Between
Interest-Earnings
Assets and
Interest-Bearing
Liabilities after
Hedging
Instruments
|
$ | (2,211,686 | ) | $ | (842,237 | ) | $ | 55,468 | $ | 1,692,513 | $ | 5,565,192 |
(Dollars
in Thousands)
|
Securities
with Average Loan FICO
of
715 or Higher (1)
|
Securities
with Average Loan FICO Below 715 (1)
|
||||||||||||||||||
Year
of Securitization
|
2007
|
2006
|
2005
and Prior
|
2005
and Prior
|
Total
|
|||||||||||||||
Number
of Securities
|
2 | 1 | 8 | 5 | 16 | |||||||||||||||
MBS
Current Face
|
$
|
157,754 |
$
|
41,484 |
$
|
66,484 |
$
|
72,651 |
$
|
338,373 | ||||||||||
MBS
Amortized Cost
|
$
|
157,265 |
$
|
41,276 |
$
|
67,052 |
$
|
74,186 |
$
|
339,779 | ||||||||||
MBS
Fair Value
|
$
|
143,524 |
$
|
38,023 |
$
|
61,993 |
$
|
59,595 |
$
|
303,135 | ||||||||||
Weighted
Average Price
|
91.0 | % | 91.7 | % | 93.2 | % | 82.0 | % | 89.6 | % | ||||||||||
Weighted
Average Coupon (2)
|
5.98 | % | 5.58 | % | 4.93 | % | 5.64 | % | 5.65 | % | ||||||||||
Weighted
Average Loan Age
(Months)
(2)
(3)
|
14 | 30 | 48 | 55 | 31 | |||||||||||||||
Weighted
Average Loan to
Value
at Origination (2)
(4)
|
73 | % | 65 | % | 70 | % | 79 | % | 73 | % | ||||||||||
Weighted
Average FICO at
Origination
(2)
(4)
|
742 | 743 | 732 | 691 | 729 | |||||||||||||||
3
Month CPR (3)
|
8.2 | % | 5.2 | % | 28.1 | % | 18.5 | % | 13.9 | % | ||||||||||
60+
days delinquent (4)
|
2.7 | % | 2.6 | % | 5.3 | % | 17.4 | % | 6.3 | % | ||||||||||
Credit
Enhancement
(4)
(5)
|
6.5 | % | 4.9 | % | 10.4 | % | 33.6 | % | 12.9 | % | ||||||||||
(1)
|
FICO, named after
Fair Isaac Corp., is a credit score used by major credit bureaus to
indicate a borrower’s credit worthiness.
FICO
scores are reported borrower FICO scores at origination for each
loan.
|
(2) |
Weighted
average is based on MBS current face at June 30, 2008.
|
(3) |
Information
provided is based on loans from individual group owned by
us.
|
(4) |
Information
provided is based on loans from all groups that provide credit support for
our MBS.
|
(5) |
Credit
enhancement for a particular security consists of all securities and/or
other credit support that absorb initial credit losses generated by a pool
of securitized loans before such losses affect the particular senior
security. All of our AAA-rated non-Agency MBS are the most senior
securities in their respective deal structures and therefore carry less
credit risk than the junior securities that provide their credit
enhancement.
|
Change
in
Interest
Rates
|
Percentage
Change
in
Net Interest Income
|
Percentage
Change
in
Portfolio Value
|
||
+ 1.00%
|
(14.01%)
|
(2.17%)
|
||
+ 0.50%
|
(6.34%)
|
(0.94%)
|
||
- 0.50%
|
5.85%
|
0.64%
|
||
- 1.00%
|
10.28%
|
0.97%
|
Name of Class I
Nominees
|
For
|
Withheld
|
||||
Stephen
R. Blank
|
142,795,648
|
1,814,839
|
||||
Edison
C. Buchanan
|
142,819,978
|
1,790,509
|
Date: July
29, 2008
|
MFA
Mortgage Investments, Inc.
|
||
|
By:
|
/s/ Stewart Zimmerman | |
Stewart
Zimmerman
|
|||
Chief
Executive Officer
|
|||
By:
|
/s/
William S. Gorin
|
||
William
S. Gorin
|
|||
President
Chief Financial Officer |
|||
(Principal
Financial Officer)
|
|||
By:
|
/s/
Teresa D. Covello
|
||
Teresa D. Covello | |||
Senior
Vice President
Chief
Accounting Officer and Treasurer
|
|||
(Principal
Accounting Officer)
|