Apollo Residential Mortgage Inc
Apollo Residential Mortgage — Q3 2013 Earnings Presentation
20 slides from Apollo Residential Mortgage's earnings presentation, Nov 7, 2013
Slide 1: Supplemental Financial Information Presentation Q3 2013
* Exhibit 99.2 * * * * * * * * * * Supplemental Financial Information Presentation Q3 2013 November 7, 2013 Information is as of September 30, 2013 except as otherwise noted. It should not be assumed that investments made in the future will be profitable or will equal the performance of investments
Slide 2: 2013 Third Quarter Earnings Call
Apollo Residential Mortgage, Inc. APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) 2013 Third Quarter Earnings Call November 7, 2013 Michael A. Commaroto Chief Executive Officer Stuart Rothstein Chief Financial Officer Keith Rosenbloom Agency Portfolio Manager Paul Mangione Non-Agency Portfolio Manager Te
Slide 3: Forward Looking Statements
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Forward Looking Statements We make forward-looking statements in this presentation and other filings we make with the Securities and Exchange Commission (“SEC”) within the meaning of Section 27A of the Securities Act of 1933,as amended, and Section 21E of t
Slide 4: Discussion Topics
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Discussion Topics 1. AMTG Q3 Results 2. Supplemental Financials 4
Slide 5: Third Quarter 2013 Summary
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Third Quarter 2013 Summary Reported operating earnings of $11.4 million, or $0.36 per common share for the third quarter of 2013(1) RMBS portfolio at September 30, 2013 consisted of Agency RMBS with an estimated fair value of $2.3 billion and non-Agency RMB
Slide 6: Financial Summary
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Financial Summary Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, ($ amounts in thousands except share and per share data) 2013 June 30, 2013 2012 2013 2012 Interest Income $34,416 $41,329 $26,438 $113,992 $60,79
Slide 7: Financial Summary
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Financial Summary (1) Operating Earnings and Operating Earnings per common share are non-GAAP financial measures. Operating Earnings and Operating Earnings per common share presented exclude, as applicable: (i) realized and unrealized gains and losses recog
Slide 8: Book Value Roll-Forward
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Book Value Roll-Forward Book Value - June 30, 2013 (Unaudited) $ 18.63 Common stock dividend declared (0.40) Operating Earnings net of preferred dividend 0.36 Non-Operating Items Impacting Net Income: Unrealized gain on Agency RMBS, net 0.84 Unrealized gain
Slide 9: Portfolio Summary and Net Interest Spread
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Portfolio Summary and Net Interest Spread Weighted Securitized Average Mortgage Including Agency Non-Agency Loans Cash Asset Yield 2.9% 6.9% 8.2% 4.3% Interest Expense 0.4% 2.0% 3.3% 1.0% Cost of Swaps 1.1% 0.1% 0.0% 0.8% Net Interest Spread 1.4% 4.8% 4.9%
Slide 10: Agency Portfolio
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Agency Portfolio Loan Balance 15 8.0% Year Pass-Throughs 3% 7.0% 7.1% HARP / MHA / 7.0% High LTV 30 Year 6.7% Pass-Throughs 6.0% 6.0% 31% Loan Balance 30 5.8% Year Pass-Throughs 5.0% 51% 5.2% 4.0% 3.7% 3.0% New Production 30 2.0% Year Pass-Throughs 3% 1.0%
Slide 11: Agency Securities as of September 30, 2013
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Agency Securities as of September 30, 2013 Unamortized Net Weighted Weighted Premium Estimated Fair Average Average (1) (2) ($ in thousands) Principal Balance (Discount) Amortized Cost Value Coupon Yield Agency RMBS: 30-Year Mortgages ARM $ 12,337 $ 827 $ 1
Slide 12: Non-Agency RMBS Portfolio
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Non-Agency RMBS Portfolio Pay-option 1999-2002 ARM 2007 4% 10% 2003 10% 7% Alt-A 7% 2006 19% 2004 32% Subprime 83% 2005 28% Non-Agency RMBS portfolio continues to focus on The non-Agency RMBS portfolio continues to focus seasoned, sub-prime assets with sign
Slide 13: Non-Agency RMBS as of September 30, 2013
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Non-Agency RMBS as of September 30, 2013 September 30, 2013 Portfolio Characteristics Estimated Fair Value ($ in thousands) $1,117,820 Amortized Cost to Par Value 77.8% Net Weighted Average Coupon 1.2% Collateral Attributes Weighted Average Loan Age (months
Slide 14: Financing and Derivative Instruments Overview
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Financing and Derivative Instruments Overview Weighted Estimated Weighted Average Average Remaining Fair ($ in thousands) Notional Amount Value ($ in thousands) Balance Borrowing Rate Maturity Repurchase agreement borrowings: Swaps - assets $ 1,187,000 $ 38
Slide 15: Discussion Topics
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Discussion Topics 1. AMTG Q3 Results 2. Supplemental Financials 15
Slide 16: Income Statement
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Income Statement Three months ended Nine months ended (in thousands—except per share data) September 30, September 30, 2013 2012 2013 2012 Interest Income: (Unaudited) (Unaudited) RMBS $ 32,013 $ 26,438 $ 107,959 $ 60,791 Securitized mortgage loans 2,324 -
Slide 17: Balance Sheet
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Balance Sheet (in thousands—except share and per share data) September 30, 2013 December 31, 2012 Assets: (Unaudited) Cash $ 142,242 $ 149,576 Restricted cash 60,996 93,641 RMBS, at fair value (of which $3,185,374 and $3,940,913 were pledged as collateral,
Slide 18: Operating Earnings Reconciliation
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Operating Earnings(1) Reconciliation (1) Operating Earnings and Operating Earnings per common share are non-GAAP financial measures. Operating Earnings and Operating Earnings per common share presented exclude, as applicable: (i) realized and unrealized gai
Slide 19: Operating Earnings Reconciliation (cont.) and Effective Cost of Funds
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Operating Earnings(1) Reconciliation (cont.) and Effective Cost of Funds Nine Months Ended Nine Months Ended Earnings per Earnings per (2) (2) (in thousands—except share and per share data) September 30, 2013 Share September 30, 2012 Share Operating Earning
Slide 20: Contact Information
APOLLO RESIDENTIAL MORTGAGE, INC. (“AMTG”) Contact Information Hilary Ginsberg Investor Relations Manager 212-822-0767 20
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