10-Q 1 pmt-10q_20180930.htm 10-Q pmt-10q_20180930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

Form 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

Or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 001-34416

 

PennyMac Mortgage Investment Trust

(Exact name of registrant as specified in its charter)

 

 

Maryland

 

27-0186273

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

 

 

 

3043 Townsgate Road, Westlake Village, California

 

91361

(Address of principal executive offices)

 

(Zip Code)

(818) 224-7442

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.     Yes       No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes       No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

  

 

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):    Yes      No  

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

 

Class

 

Outstanding at November 6, 2018

Common Shares of Beneficial Interest, $0.01 par value

 

60,951,444

 

 


PENNYMAC MORTGAGE INVESTMENT TRUST

FORM 10-Q

September 30, 2018

TABLE OF CONTENTS

 

 

 

Page

Special Note Regarding Forward-Looking Statements

 

1

PART I. FINANCIAL INFORMATION

 

4

Item 1.

 

Financial Statements (Unaudited):

 

4

 

 

Consolidated Balance Sheets

 

4

 

 

Consolidated Statements of Operations

 

6

 

 

Consolidated Statements of Changes in Shareholders’ Equity

 

7

 

 

Consolidated Statements of Cash Flows

 

8

 

 

Notes to Consolidated Financial Statements

 

10

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

66

 

 

Our Company

 

66

 

 

Results of Operations

 

71

 

 

Net Investment Income

 

72

 

 

Expenses

 

86

 

 

Balance Sheet Analysis

 

89

 

 

Asset Acquisitions

 

89

 

 

Investment Portfolio Composition

 

90

 

 

Cash Flows

 

97

 

 

Liquidity and Capital Resources

 

98

 

 

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations

 

100

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

102

Item 4.

 

Controls and Procedures

 

104

PART II. OTHER INFORMATION

 

105

Item 1.

 

Legal Proceedings

 

105

Item 1A.

 

Risk Factors

 

105

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

105

Item 3.

 

Defaults Upon Senior Securities

 

105

Item 4.

 

Mine Safety Disclosures

 

105

Item 5.

 

Other Information

 

105

Item 6.

 

Exhibits

 

106

 

 

 


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Report”) contains certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” “continue,” “plan” or other similar words or expressions.

Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain financial and operating projections or state other forward-looking information. Examples of forward-looking statements include the following:

 

projections of our revenues, income, earnings per share, capital structure or other financial items;

 

descriptions of our plans or objectives for future operations, products or services;

 

forecasts of our future economic performance, interest rates, profit margins and our share of future markets; and

 

descriptions of assumptions underlying or relating to any of the foregoing expectations regarding the timing of generating any revenues.

Our ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements. There are a number of factors, many of which are beyond our control that could cause actual results to differ significantly from management’s expectations. Some of these factors are discussed below.

You should not place undue reliance on any forward-looking statement and should consider the following uncertainties and risks, as well as the risks and uncertainties discussed elsewhere in this Report and the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (“SEC”) on March 1, 2018.

Factors that could cause actual results to differ materially from historical results or those anticipated include, but are not limited to:

 

changes in our investment objectives or investment or operational strategies, including any new lines of business or new products and services that may subject us to additional risks;

 

the occurrence of natural disasters or other events or circumstances that could impact our operations;

 

volatility in our industry, the debt or equity markets, the general economy or the real estate finance and real estate markets specifically, whether the result of market events or otherwise;

 

events or circumstances which undermine confidence in the financial markets or otherwise have a broad impact on financial markets, such as the sudden instability or collapse of large depository institutions or other significant corporations, terrorist attacks, natural or man-made disasters, or threatened or actual armed conflicts;

 

changes in general business, economic, market, employment and political conditions, or in consumer confidence and spending habits from those expected;

 

declines in real estate or significant changes in U.S. housing prices or activity in the U.S. housing market;

 

the availability of, and level of competition for, attractive risk-adjusted investment opportunities in mortgage loans and mortgage-related assets that satisfy our investment objectives;

 

the inherent difficulty in winning bids to acquire mortgage loans, and our success in doing so;

 

the concentration of credit risks to which we are exposed;

 

the degree and nature of our competition;

 

our dependence on our manager and servicer, potential conflicts of interest with such entities and their affiliates, and the performance of such entities;

 

changes in personnel and lack of availability of qualified personnel at our manager, servicer or their affiliates;

 

the availability, terms and deployment of short-term and long-term capital;

 

the adequacy of our cash reserves and working capital;

1


 

our ability to maintain the desired relationship between our financing and the interest rates and maturities of our assets;

 

the timing and amount of cash flows, if any, from our investments;

 

unanticipated increases or volatility in financing and other costs, including a rise in interest rates;

 

the performance, financial condition and liquidity of borrowers;

 

the ability of our servicer, which also provides us with fulfillment services, to approve and monitor correspondent sellers and underwrite loans to investor standards;

 

incomplete or inaccurate information or documentation provided by customers or counterparties, or adverse changes in the financial condition of our customers and counterparties;

 

our indemnification and repurchase obligations in connection with mortgage loans we purchase and later sell or securitize;

 

the quality and enforceability of the collateral documentation evidencing our ownership and rights in the assets in which we invest;

 

increased rates of delinquency, default and/or decreased recovery rates on our investments;

 

the performance of mortgage loans underlying mortgage-backed securities (“MBS”) in which we retain credit risk;

 

our ability to foreclose on our investments in a timely manner or at all;

 

increased prepayments of the mortgages and other loans underlying our MBS or relating to our mortgage servicing rights (“MSRs”), excess servicing spread (“ESS”) and other investments;

 

the degree to which our hedging strategies may or may not protect us from interest rate volatility;

 

the effect of the accuracy of or changes in the estimates we make about uncertainties, contingencies and asset and liability valuations when measuring and reporting upon our financial condition and results of operations;

 

our failure to maintain appropriate internal controls over financial reporting;

 

technologies for loans and our ability to mitigate security risks and cyber intrusions;

 

our ability to obtain and/or maintain licenses and other approvals in those jurisdictions where required to conduct our business;

 

our ability to detect misconduct and fraud;

 

our ability to comply with various federal, state and local laws and regulations that govern our business;

 

developments in the secondary markets for our mortgage loan products;

 

legislative and regulatory changes that impact the mortgage loan industry or housing market;

 

changes in regulations or the occurrence of other events that impact the business, operations or prospects of government agencies such as the Government National Mortgage Association (“Ginnie Mae”), the Federal Housing Administration (the “FHA”) or the Veterans Administration (the “VA”), the U.S. Department of Agriculture (“USDA”), or government-sponsored entities such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”) (Fannie Mae, Freddie Mac and Ginnie Mae are each referred to as an “Agency” and, collectively, as the “Agencies”), or such changes that increase the cost of doing business with such entities;

 

the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and its implementing regulations and regulatory agencies, and any other legislative and regulatory changes that impact the business, operations or governance of mortgage lenders and/or publicly-traded companies;

 

the Bureau of Consumer Financial Protection and its issued and future rules and the enforcement thereof;

 

changes in government support of homeownership;

 

changes in government or government-sponsored home affordability programs;

 

limitations imposed on our business and our ability to satisfy complex rules for us to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes and qualify for an exclusion from the Investment Company Act of 1940 (the “Investment Company Act”) and the ability of certain of our subsidiaries to qualify as REITs or as taxable REIT subsidiaries (“TRSs”) for U.S. federal income tax purposes, as applicable, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules;

2


 

changes in governmental regulations, accounting treatment, tax rates and similar matters (including changes to laws governing the taxation of REITs, or the exclusions from registration as an investment company);

 

our ability to make distributions to our shareholders in the future;

 

our failure to deal appropriately with issues that may give rise to reputational risk; and

 

our organizational structure and certain requirements in our charter documents.

Other factors that could also cause results to differ from our expectations may not be described in this Report or any other document. Each of these factors could by itself, or together with one or more other factors, adversely affect our business, results of operations and/or financial condition.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

 

3


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED) 

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

 

(in thousands, except share information)

 

ASSETS

 

 

 

 

 

 

 

 

Cash

 

$

88,929

 

 

$

77,647

 

Short-term investments at fair value

 

 

26,736

 

 

 

18,398

 

Mortgage-backed securities at fair value pledged to creditors

 

 

2,126,507

 

 

 

989,461

 

Mortgage loans acquired for sale at fair value (includes $1,930,547 and $1,249,277

   pledged to creditors, respectively)

 

 

1,949,432

 

 

 

1,269,515

 

Mortgage loans at fair value (includes $624,267 and $1,081,893 pledged to creditors,

   respectively)

 

 

633,168

 

 

 

1,089,473

 

Excess servicing spread purchased from PennyMac Financial Services, Inc. at fair value

   pledged to secure Assets sold to PennyMac Financial Services, Inc. under agreements to repurchase

 

 

223,275

 

 

 

236,534

 

Derivative assets (includes $27,710 and $26,058 pledged to creditors, respectively)

 

 

143,577

 

 

 

113,881

 

Firm commitment to purchase credit risk transfer security at fair value

 

 

18,749

 

 

 

 

Real estate acquired in settlement of loans (includes $69,399 and $124,532

   pledged to creditors, respectively)

 

 

95,605

 

 

 

162,865

 

Real estate held for investment (includes $31,795 and $31,128 pledged to creditors, respectively)

 

 

45,971

 

 

 

44,224

 

Deposits securing credit risk transfer agreements (includes $378,090 and $400,778

   pledged to creditors, respectively)

 

 

662,624

 

 

 

588,867

 

Mortgage servicing rights (includes $1,109,741 and $91,459 at fair value;

   $1,090,406 and $831,892 pledged to creditors)

 

 

1,109,741

 

 

 

844,781

 

Servicing advances

 

 

48,056

 

 

 

77,158

 

Due from PennyMac Financial Services, Inc.

 

 

2,351

 

 

 

4,154

 

Other

 

 

92,857

 

 

 

87,975

 

Total assets

 

$

7,267,578

 

 

$

5,604,933

 

LIABILITIES

 

 

 

 

 

 

 

 

Assets sold under agreements to repurchase

 

$

4,394,500

 

 

$

3,180,886

 

Mortgage loan participation purchase and sale agreements

 

 

31,578

 

 

 

44,488

 

Exchangeable senior notes

 

 

248,053

 

 

 

247,186

 

Notes payable

 

 

445,318

 

 

 

 

Asset-backed financing of a variable interest entity at fair value

 

 

278,113

 

 

 

307,419

 

Interest-only security payable at fair value

 

 

8,821

 

 

 

7,070

 

Assets sold to PennyMac Financial Services, Inc. under agreements to repurchase

 

 

133,128

 

 

 

144,128

 

Derivative liabilities

 

 

11,880

 

 

 

1,306

 

Accounts payable and accrued liabilities

 

 

70,362

 

 

 

64,751

 

Due to PennyMac Financial Services, Inc.

 

 

27,467

 

 

 

27,119

 

Income taxes payable

 

 

52,382

 

 

 

27,317

 

Liability for losses under representations and warranties

 

 

7,413

 

 

 

8,678

 

Total liabilities

 

 

5,709,015

 

 

 

4,060,348

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies — Note 20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred shares of beneficial interest, $0.01 par value per share, authorized 100,000,000 shares,

   issued and outstanding 12,400,000 shares, liquidation preference $310,000,000

 

 

299,707

 

 

 

299,707

 

Common shares of beneficial interest—authorized, 500,000,000 common shares of $0.01

   par value; issued and outstanding, 60,951,444 and 61,334,087 common shares, respectively

 

 

610

 

 

 

613

 

Additional paid-in capital

 

 

1,284,537

 

 

 

1,290,931

 

Accumulated deficit

 

 

(26,291

)

 

 

(46,666

)

Total shareholders’ equity

 

 

1,558,563

 

 

 

1,544,585

 

Total liabilities and shareholders’ equity

 

$

7,267,578

 

 

$

5,604,933

 

The accompanying notes are an integral part of these consolidated financial statements.

4


PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Assets and liabilities of consolidated variable interest entities (“VIEs”) included in total assets and liabilities (the assets of each VIE can only be used to settle liabilities of that VIE):

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

Mortgage loans at fair value

 

$

292,174

 

 

$

321,040

 

Derivative assets

 

 

126,354

 

 

 

98,640

 

Deposits securing credit risk transfer agreements

 

 

662,624

 

 

 

588,867

 

Other—interest receivable

 

 

855

 

 

 

904

 

 

 

$

1,082,007

 

 

$

1,009,451

 

LIABILITIES

 

 

 

 

 

 

 

 

Asset-backed financing at fair value

 

$

278,113

 

 

$

307,419

 

Interest-only security payable at fair value

 

 

8,821

 

 

 

7,070

 

Accounts payable and accrued liabilities—interest payable

 

 

855

 

 

 

904

 

 

 

$

287,789

 

 

$

315,393

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

5


PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

 

 

Quarter ended September 30,

 

 

Nine months ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(in thousands, except per share amounts)

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net mortgage loan servicing fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From nonaffiliates

 

$

43,833

 

 

$

21,543

 

 

$

126,567

 

 

$

48,466

 

From PennyMac Financial Services, Inc.

 

 

561

 

 

 

333

 

 

 

1,568

 

 

 

859

 

 

 

 

44,394

 

 

 

21,876

 

 

 

128,135

 

 

 

49,325

 

Net gain on mortgage loans acquired for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From nonaffiliates

 

 

22,121

 

 

 

14,692

 

 

 

33,358

 

 

 

44,944

 

From PennyMac Financial Services, Inc.

 

 

2,689

 

 

 

3,275

 

 

 

8,221

 

 

 

9,340

 

 

 

 

24,810

 

 

 

17,967

 

 

 

41,579

 

 

 

54,284

 

Mortgage loan origination fees

 

 

12,424

 

 

 

11,744

 

 

 

28,311

 

 

 

30,501

 

Net gain (loss) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From nonaffiliates

 

 

7,977

 

 

 

17,499

 

 

 

24,233

 

 

 

69,067

 

From PennyMac Financial Services, Inc.

 

 

1,706

 

 

 

(3,665

)

 

 

10,977

 

 

 

(10,920

)

 

 

 

9,683

 

 

 

13,834

 

 

 

35,210

 

 

 

58,147

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From nonaffiliates

 

 

58,584

 

 

 

47,579

 

 

 

144,064

 

 

 

139,052

 

From PennyMac Financial Services, Inc.

 

 

3,740

 

 

 

3,998

 

 

 

11,584

 

 

 

13,011

 

 

 

 

62,324

 

 

 

51,577

 

 

 

155,648

 

 

 

152,063

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To nonaffiliates

 

 

44,797

 

 

 

38,161

 

 

 

115,804

 

 

 

109,936

 

To PennyMac Financial Services, Inc.

 

 

1,812

 

 

 

2,116

 

 

 

5,686

 

 

 

5,946

 

 

 

 

46,609

 

 

 

40,277

 

 

 

121,490

 

 

 

115,882

 

Net interest income

 

 

15,715

 

 

 

11,300

 

 

 

34,158

 

 

 

36,181

 

Results of real estate acquired in settlement of loans

 

 

(310

)

 

 

(3,143

)

 

 

(5,833

)

 

 

(10,854

)

Other

 

 

1,785

 

 

 

2,226

 

 

 

5,605

 

 

 

6,653

 

Net investment income

 

 

108,501

 

 

 

75,804

 

 

 

267,165

 

 

 

224,237

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earned by PennyMac Financial Services, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage loan fulfillment fees

 

 

26,256

 

 

 

23,507

 

 

 

52,759

 

 

 

61,184

 

Mortgage loan servicing fees

 

 

10,071

 

 

 

11,402

 

 

 

30,521

 

 

 

31,987

 

Management fees

 

 

6,482

 

 

 

6,038

 

 

 

17,906

 

 

 

16,684

 

Mortgage loan collection and liquidation

 

 

2,747

 

 

 

864

 

 

 

6,899

 

 

 

4,556

 

Professional services

 

 

2,616

 

 

 

1,331

 

 

 

5,692

 

 

 

5,531

 

Compensation

 

 

1,924

 

 

 

1,067

 

 

 

5,412

 

 

 

4,918

 

Real estate held for investment

 

 

1,713

 

 

 

1,898

 

 

 

4,452

 

 

 

4,339

 

Mortgage loan origination

 

 

2,136

 

 

 

2,230

 

 

 

3,980

 

 

 

5,735

 

Other

 

 

2,894

 

 

 

3,301

 

 

 

7,758

 

 

 

10,704

 

Total expenses

 

 

56,839

 

 

 

51,638

 

 

 

135,379

 

 

 

145,638

 

Income before provision for income taxes

 

 

51,662

 

 

 

24,166

 

 

 

131,786

 

 

 

78,599

 

Provision for income taxes

 

 

5,100

 

 

 

4,771

 

 

 

20,613

 

 

 

1,688

 

Net income

 

 

46,562

 

 

 

19,395

 

 

 

111,173

 

 

 

76,911

 

Dividends on preferred shares

 

 

6,235

 

 

 

6,125

 

 

 

18,703

 

 

 

9,032

 

Net income attributable to common shareholders

 

$

40,327

 

 

$

13,270

 

 

$

92,470

 

 

$

67,879

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.66

 

 

$

0.20

 

 

$

1.51

 

 

$

1.01

 

Diluted

 

$

0.62

 

 

$

0.20

 

 

$

1.44

 

 

$

0.98

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

60,950

 

 

 

66,636

 

 

 

60,880

 

 

 

66,702

 

Diluted

 

 

69,417

 

 

 

66,636

 

 

 

69,347

 

 

 

75,169

 

Dividends declared per common share

 

$

0.47

 

 

$

0.47

 

 

$

1.41

 

 

$

1.41

 

 

The accompanying notes are an integral part of these consolidated financial statements.

6


PENNYMAC MORTGAGE INVESTMENT TRUST AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)

 

 

 

Preferred shares

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

Number

 

 

 

 

 

 

Number

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

of

 

 

 

 

 

 

of

 

 

Par

 

 

paid-in

 

 

Accumulated

 

 

 

 

 

 

 

shares

 

 

Amount

 

 

shares

 

 

value

 

 

capital

 

 

deficit

 

 

Total

 

 

 

(in thousands, except per share amounts)

 

 

 

Balance at June 30, 2017

 

 

4,600

 

 

$

111,172

 

 

 

66,842

 

 

$

668

 

 

$

1,377,990

 

 

$

(34,998

)

 

$

1,454,832

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,395

 

 

 

19,395

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

736

 

 

 

 

 

 

737

 

Issuance of preferred shares

 

 

7,800

 

 

 

195,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

195,000

 

Issuance costs relating to preferred shares

 

 

 

 

 

(6,465

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,465

)

Dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares ($0.47 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31,179

)

 

 

(31,179

)

Preferred shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,338

)

 

 

(5,338

)

Repurchase of common shares

 

 

 

 

 

 

 

 

(966

)

 

 

(10

)

 

 

(16,407

)

 

 

 

 

 

(16,417

)

Balance at September 30, 2017

 

 

12,400

 

 

$

299,707

 

 

 

65,876

 

 

$

659

 

 

$

1,362,319

 

 

$

(52,120

)

 

$

1,610,565

 

Balance at June 30, 2018

 

 

12,400

 

 

$

299,707

 

 

 

60,951

 

 

$

610

 

 

$

1,282,971

 

 

$

(37,801

)

 

$

1,545,487

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46,562

 

 

 

46,562

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,566

 

 

 

 

 

 

1,566

 

Dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares ($0.47 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,816

)

 

 

(28,816

)

Preferred shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,236

)

 

 

(6,236

)

Balance at September 30, 2018

 

 

12,400

 

 

$

299,707

 

 

 

60,951

 

 

$

610

 

 

$

1,284,537

 

 

$

(26,291

)

 

$

1,558,563

 

 

 

 

Preferred shares

 

 

Common shares

 

 

 

 

 

 

 

 

 

 

 

Number

 

 

 

 

 

 

Number

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

of

 

 

 

 

 

 

of

 

 

Par

 

 

paid-in

 

 

Accumulated

 

 

 

 

 

 

 

shares

 

 

Amount

 

 

shares

 

 

value

 

 

capital

 

 

deficit

 

 

Total

 

 

 

(in thousands, except per share amounts)

 

 

 

Balance at December 31, 2016

 

 

 

 

$

 

 

 

66,697

 

 

$

667

 

 

$

1,377,171

 

 

$

(26,724

)

 

$

1,351,114

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

76,911

 

 

 

76,911

 

Share-based compensation

 

 

 

 

 

 

 

 

284

 

 

 

3

 

 

 

3,861

 

 

 

 

 

 

3,864

 

Issuance of preferred shares

 

 

12,400

 

 

 

310,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

310,000

 

Issuance costs relating to preferred shares

 

 

 

 

 

(10,293

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,293

)

Dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares ($1.41 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(94,477

)

 

 

(94,477

)

Preferred shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,830

)

 

 

(7,830

)

Repurchase of common shares

 

 

 

 

 

 

 

 

(1,105

)

 

 

(11

)

 

 

(18,713

)