Anworth Mortgage Asset Corp. said it moved from a loss to profit in its fourth quarter, prompting investors to bump up shares on an otherwise sour day on Wall Street Friday.
The Santa Monica mortgage real estate investment trust reported late Thursday net income of $20.1 million (22 cents per share), compared with a net loss of $7.3 million (-15 cents) a year ago. Net interest income grew 172 percent to $29 million.
The quarter's results includes a roughly $3.5 million non-cash impairment charge on part of its mortgage-backed securities portfolio, which was hurt by the collapse of the regional housing market. However, the company has been moving its portfolio out of traditional mortgage-backed securities.
Anworth earlier this month said it was selling 8 million shares of its common stock in a public offering. The $46 million in net proceeds are to be used to buy agency mortgage-backed securities, which are guaranteed by government-chartered companies Fannie Mae and Freddie Mac or federal agency Ginnie Mae.
Anworth shares closed up 37 cent, or 6 percent, to $4.97 Friday on the New York Stock Exchange.
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