THORNBURG MORTGAGE REPORTS 86% EPS GROWTH FOR THE THIRD QUARTER 1999 AND DECLARES $0.23 DIVIDEND
SANTA FE, N.M.--(BUSINESS WIRE)--Oct. 14, 1999--
Strategy is Working; Results Continue to Improve
-- Q3 EPS of $0.26 up 86% from year-ago EPS of $0.14
-- Q3 net interest income is $9.3 million
-- Growth in portfolio yield to 6%
-- Correspondent lending program growing
Thornburg Mortgage, Inc. (NYSE: TMA) today reported 86% earnings
per share growth over the prior year's third quarter. The company
reported net income of $7.2 million, or $0.26 per common share, for
the third quarter ended September 30, 1999, compared to net income of
$4.7 million, or $0.14 per common share, for the year-ago quarter, and
$7.0 million, or $0.25 per common share, for the second quarter of
1999. The company had 21,490,000 average common shares outstanding
during the quarter ended September 30, 1999, and 21,858,000 average
common shares outstanding during the quarter ended September 30, 1998.
Taxable income for the quarter was $7.8 million or $0.29 per common
share, and $0.72 per common share year to date.
The company also announced that its board of directors declared a
third quarter dividend of $0.23 per common share, payable on November
17, 1999 to shareholders of record on October 31, 1999. This marks the
company's 25th consecutive quarterly dividend.
Larry A. Goldstone, president and chief operating officer of
Thornburg Mortgage said, "Our improving performance underscores the
soundness of our disciplined strategy and focused efforts to position
the company to capitalize on all interest rate environments. The
increase in our portfolio's interest income reflects the benefits of
rising short-term interest rates and declining adjustable-rate
mortgage (ARM) prepayments."
Noting that the company's assets totaled $4.5 billion at
September 30, Mr. Goldstone continued, "We are seeing increased
opportunities to acquire adjustable-rate mortgage assets as borrowers
seek alternatives to increasingly expensive fixed-rate mortgages."
Thornburg's commitment to high credit quality assets resulted in
a quarter-end total of 96% of the company's portfolio rated AA or
better.
Commenting on the company's efforts to develop correspondent
lending relationships, Goldstone said, "Our correspondent lending
program continued to grow at a steady pace in the third quarter. We
increased our network to 20 approved correspondent lenders and intend
to continue to build our network as this business expands."
Thornburg's portfolio yield grew to an average of 5.97% for the
third quarter, compared to 5.73% in the second quarter. This yield
improvement was due to the company's specific focus on adjustable-rate
mortgages whose yields rise as interest rates rise, and the resulting
decline in the portfolio prepayment rate to 22% Constant Prepayment
Rate (CPR) from 26% CPR in the previous quarter. The company's
portfolio margin remained at 0.82% in the third quarter. The company's
book value in the third quarter was $12.17 per common share.
Net interest income improved to $9.3 million in the third
quarter, up from $9.1 million in the previous quarter. The company's
cost of funds increased to an average of 5.61% from 5.35%, reflecting
the recent increases in short-term interest rates.
Separately, the Board of Directors approved a resolution changing
the name of the company to Thornburg Mortgage, Inc. The new name
recognizes the company's shift to broaden its business strategy to
include not just mortgage acquisition, but correspondent lending and
future mortgage origination through telebanking and Internet lending.
This new name will be adopted as a trade name pending shareholder
approval of the formal name change at the company's annual shareholder
meeting scheduled for April 27, 2000. |
