Investor Presentaiton
Non-GAAP Reconciliations (cont'd)
Unaudited (dollars in thousands, except per share amounts)
To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the Company provides non-GAAP financial measures. These
measures should not be considered a substitute for, or superior to, financial measures computed in accordance with GAAP. These non-GAAP measures provide additional detail
to enhance investor understanding of the Company's period-over-period operating performance and business trends, as well as for assessing the Company's performance
versus that of industry peers. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP results are provided below and on the next page.
6/30/2022
3/31/2022
For the quarters ended
12/31/2021
9/30/2021
6/30/2021
GAAP Net Income to Earnings Available for Distribution Reconciliation
GAAP net income (loss)
Net income (loss) attributable to non-controlling interests
$863,317
(3,379)
$2,023,894
Net income (loss) attributable to Annaly
866,696
1,639
2,022,255
$418,460
2,979
415,481
$521,534
2,290
519,244
($294,848)
794
(295,642)
Adjustments to excluded reported realized and unrealized (gains) losses:
Net (gains) losses on investments and other
615,216
159,804
Net (gains) losses on derivatives (1)
(1,014,651)
(1,704,569)
40,473
(194,256)
(102,819)
(20,207)
(139,361)
498,875
Loan loss provision (reversal) (2)
(29,380)
812
1,931
(6,771)
1,078
Business divestiture-related (gains) losses
23,955
354
16,514
14,009
(1,527)
Other adjustments:
Depreciation expense related to commercial real estate and amortization of intangibles (3)
1,302
1,130
1,144
1,122
5,635
Non-EAD (income) loss allocated to equity method investments (4)
(3,270)
(9,920)
(2,345)
(2,046)
3,141
Transaction expenses and non-recurring items (5)
1,751
3,350
1,533
2,201
1,150
Income tax effect on non-EAD income (loss) items
28,841
27,091
8,380
(6,536)
7,147
TBA dollar roll income and CMBX coupon income (6)
161,673
129,492
119,657
115,586
111,592
MSR amortization (7)
(33,810)
(19,652)
(25,864)
(17,884)
(13,491)
Plus:
Premium amortization adjustment (PAA) cost (benefit)
(127,521)
(179,516)
57,395
60,726
153,607
Earnings Available for Distribution*
490,802
430,631
440,043
437,471
451,358
Dividends on preferred stock
26,883
26,883
Earnings available for distribution attributable to common shareholders*
GAAP net income (loss) per average common share (8)
$463,919
$403,748
26,883
$413,160
26,883
26,883
$410,588
$424,475
$0.55
$1.37
$0.27
$0.34
($0.23)
Earnings available for distribution per average common share
(8)*
$0.30
$0.28
$0.28
$0.28
$0.30
Annualized GAAP return (loss) on average equity
30.60%
65.62%
12.44%
Annualized EAD return on average equity (excluding PAA)*
17.49%
14.01%
13.10%
15.25%
12.81%
(8.51%)
13.05%
* Represents a non-GAAP financial measure.
Detailed endnotes and a glossary of defined terms are included at the end of this presentation.
ANNALY
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