Arlington Asset Investment Corp.

CIK:0001209028|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest income
MSR financing receivables	$ 5,247	$ 3,608	$ 14,641	$ 10,973
Credit securities and loans	2,849	2,736	8,413	4,580
Other	62	110	350	548
Total interest and other income	13,575	12,388	40,291	28,557
Rent revenues from single-family properties	0	2,103	0	5,304
Interest expense
Repurchase agreements	7,183	2,863	19,912	3,902
Total interest expense	8,759	5,972	25,271	13,673
Net operating income	4,816	6,647	15,020	14,870
Investment and derivative (loss) gain, net	(7,997)	1,235	(5,431)	778
General and administrative expenses
Compensation and benefits	2,091	2,256	6,383	6,645
Other general and administrative expenses	1,142	1,121	5,474	3,803
Total general and administrative expenses	3,233	3,377	11,857	10,448
(Loss) income before income taxes	(6,414)	4,505	(2,268)	5,200
Income tax provision	199	1,074	1,695	4,163
Net (loss) income	(6,613)	3,431	(3,963)	1,037
Dividend on preferred stock	(660)	(675)	(1,980)	(2,124)
Net (loss) income (attributable) available to common stock	$ (7,273)	$ 2,756	$ (5,943)	$ (1,087)
Basic (loss) earnings per common share	$ (0.26)	$ 0.1	$ (0.21)	$ (0.04)
Diluted (loss) earnings per common share	$ (0.26)	$ 0.1	$ (0.21)	$ (0.04)
Weighted-average common shares outstanding (in thousands)
Basic	28,081	28,338	28,055	28,973
Diluted	28,081	28,913	28,055	28,973
Single Family properties
Interest expense
Single-family property operating expenses	$ 0	$ 1,872	$ 0	$ 5,318
Variable Interest Entity, Primary Beneficiary
Interest income
Loans	0	2,303	1,454	5,268
Secured Debt \| Single Family properties
Interest expense
Long-term debt	0	741	0	1,867
Secured Debt \| Variable Interest Entity, Primary Beneficiary
Interest expense
Secured debt of consolidated VIEs	0	912	681	3,678
Unsecured Debt
Interest expense
Long-term debt	1,576	1,456	4,678	4,226
Agency MBS
Interest income
Mortgage-backed credit securities	$ 5,417	$ 3,631	$ 15,433	$ 7,188

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net (loss) income	$ (3,963)	$ 1,037
Adjustments to reconcile net (loss) income to net cash used in operating activities
Investment and derivative loss (gain), net	5,431	(778)
Net (discount) premium (accretion) amortization	(14,721)	(7,607)
Other	2,279	4,959
Changes in operating assets
Interest receivable	(560)	(299)
Other assets	(48)	(1,575)
Changes in operating liabilities
Interest payable and other liabilities	(63)	2,641
Accrued compensation and benefits	(1,594)	(739)
Net cash (used in) provided by operating activities	(13,239)	(2,361)
Cash flows from investing activities:
Purchases of credit securities	0	(128,779)
Purchases of MSR financing receivables	(16,201)	(61,693)
Purchases of single-family residential real estate	0	(134,391)
Proceeds from sales of agency mortgage-backed securities	26,016	654,294
Proceeds from sales of credit securities	22,578	10,395
(Payments) proceeds from sales of single-family residential real estate	(120)	128,784
Receipt of principal payments on agency mortgage-backed securities	23,049	27,807
Receipt of principal payments on credit securities	3,048	6,223
Receipt of principal payments on loans	8,556	321
Receipt of principal payments on mortgage loans of consolidated VIE	5,710	34,267
Receipt of distributions on MSR financing receivables	23,384	68,601
Restricted cash balance of VIE upon consolidation	0	9,637
Restricted cash balance of VIE upon deconsolidation	(2,719)	0
Proceeds from (payments for) derivatives and deposits, net	14,597	8,559
Other	335	6,233
Net cash (used in) provided by investing activities	(42,422)	48,147
Cash flows from financing activities:
Proceeds from (repayments of) repurchase agreements, net	39,197	(16,714)
Repayments of secured debt of consolidated VIE	(3,526)	(38,496)
Repurchase of common stock	0	(8,232)
Repayments of long-term debt secured by single-family properties	0	(81,790)
Repurchase of preferred stock	0	(3,389)
Proceeds from issuance of preferred stock	0	149
Proceeds from long-term debt secured by single-family properties	0	99,371
Dividends paid	(1,319)	(2,124)
Net cash provided by (used in) financing activities	34,352	(51,225)
Net decrease in cash, cash equivalents and restricted cash	(21,309)	(5,439)
Cash, cash equivalents and restricted cash, beginning of period	30,212	21,786
Cash, cash equivalents and restricted cash, end of period	8,903	16,347
Supplemental cash flow information:
Cash payments for interest	24,614	12,134
Cash payments for income taxes	69	1,641
Non Cash Investing And Financing activity
Assets of VIE upon consolidation	0	287,282
Assets of VIE upon deconsolidation	(189,360)	0
Liabilities of VIE upon consolidation	0	266,697
Liabilities of VIE upon deconsolidation	(166,783)	0
Agency MBS
Cash flows from investing activities:
Purchases of agency mortgage-backed securities	$ (150,655)	$ (582,111)

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Sep. 30, 2023

Dec. 31, 2022

ASSETS

Cash and cash equivalents (includes $49 and $296, respectively, from consolidated VIEs)

$ 8,900

$ 28,021

MSR financing receivables, at fair value

191,800

180,365

Credit securities, at fair value

101,546

104,437

Mortgage loans, at fair value

25,216

29,264

Deposits

1,624

1,823

Other assets (includes $1,528 and $2,067, respectively, from consolidated VIEs)

17,081

18,720

Total assets

867,258

1,002,318

Liabilities:

Repurchase agreements

554,707

515,510

Long-term unsecured debt

86,713

86,405

Other liabilities (includes $-0- and $262, respectively, from consolidated VIEs)

12,396

13,718

Total liabilities

653,907

784,978

Commitments and contingencies

Stockholders’ Equity:

Additional paid-in capital

2,026,250

2,024,298

Accumulated deficit

(1,846,004)

(1,840,061)

Total stockholders’ equity

213,351

217,340

Total liabilities and stockholders’ equity

867,258

1,002,318

Variable Interest Entity, Primary Beneficiary

ASSETS

Cash and cash equivalents (includes $49 and $296, respectively, from consolidated VIEs)

296

Restricted cash of consolidated VIEs

^[1]

2,191

^[2]

Mortgage loans, at fair value

237

193,957

Other assets (includes $1,528 and $2,067, respectively, from consolidated VIEs)

1,528

2,067

Liabilities:

Secured debt of consolidated VIEs, at fair value

169,345

Other liabilities (includes $-0- and $262, respectively, from consolidated VIEs)

262

Agency MBS

ASSETS

Agency mortgage-backed securities, at fair value

520,851

443,540

Series B Preferred Stock

Stockholders’ Equity:

Preferred stock

9,001

Series C Preferred Stock

Stockholders’ Equity:

Preferred stock

23,820

Common Class A

Stockholders’ Equity:

Common stock

$ 284

$ 282

[1]	Restricted cash represents cash collected by the trust that must be used solely to satisfy the liabilities of the VIE in the month following collection.
[2]	Restricted cash represents cash collected by the trust that must be used solely to satisfy the liabilities of the VIE in the month following collection.