ZAIS Financial Corp. Reports Second Quarter 2015 Results

Aug 05, 2015, 08:00 ET from ZAIS Financial Corp.

RED BANK, N.J., Aug. 5, 2015 /PRNewswire/ -- ZAIS Financial Corp. (NYSE: ZFC) ("ZAIS Financial" or the "Company") today reported financial results for the three months ended June 30, 2015.

SECOND QUARTER 2015 HIGHLIGHTS

  • GAAP net income of $6.7 million, or $0.65 per diluted weighted average share outstanding (including operating results for GMFS, the Company's origination platform), compared with $25.9 million or $2.47 per diluted weighted average share outstanding for the same period in 2014
  • Core Earnings (a non-GAAP financial measure as defined below) of $3.4 million, or $0.38 per diluted weighted average share outstanding, compared with $3.2 million or $0.36 per diluted weighted average for the same period in 2014
  • Second quarter cash dividend of $0.40 per share of the Company's common stock and operating partnership unit ("OP unit") declared on June 18, 2015 and paid on July 15, 2015
  • Book value per share of common stock and OP unit of $21.74 as of June 30, 2015, compared with $21.38 as of March 31, 2015
  • GMFS operating results for the three months ending June 30, 2015
    • Income before income taxes of $7.9 million which includes a $4.4 million increase in the fair value of the mortgage servicing rights ("MSR") portfolio
    • $502.4 million of loans originated during the second quarter
    • MSR portfolio with an unpaid principal balance of approximately $3.6 billion and a fair value of $42.7 million as of June 30, 2015
  • 2.76x leverage ratio as of June 30, 2015, compared with 3.02x leverage ratio as of March 31, 2015

"We are pleased to report solid second quarter financial results, underscored by core earnings generation of $0.38 per diluted share as well as a 1.7 percent increase in book value," commented Michael F. Szymanski, Chief Executive Officer.  "Our second quarter results were driven by a strong operating performance in our mortgage banking segment and market value gains in our MSR portfolio, demonstrating the revenue diversity of our mortgage operating company model."

SECOND QUARTER 2015 RESULTS

ZAIS Financial reported GAAP net income for the three months ended June 30, 2015 of $6.7 million or $0.65 per diluted weighted average share outstanding, compared with $25.9 million or $2.47 per diluted weighted average share outstanding for the same period in 2014.  These results include GMFS operations which contributed $7.9 million of income before income taxes and partially offset the quarter over quarter decline due to a decrease in unrealized gains from mortgages held for investment. For the three months ended June 30, 2015, the Company reported Core Earnings of $3.4 million, or $0.38 per diluted weighted average share outstanding, compared with $3.2 million or $0.36 per diluted weighted average share outstanding during the same period in 2014.  The increase in Core Earnings was primarily due to the addition of net income from GMFS operations, partially offset by a decline in net interest income due to the sale of assets to fund the GMFS purchase, and a decrease in the net interest spread.  Core Earnings is a non-GAAP financial measure that the Company defines as net interest income, plus non-interest income from its mortgage banking platform (excluding the change in fair value of MSRs resulting from changes in valuation inputs or assumptions used in the valuation model) less total operating expenses (excluding depreciation and amortization, changes in contingent consideration, amortization of deferred premiums, production and profitability earn-outs and certain non-recurring adjustments) plus/(less) the income tax benefit/(expense) related to the Company's taxable REIT subsidiaries (the "TRS entities").  The Company's mortgage banking platform is primarily comprised of income related to originating, selling, and servicing mortgage loans.

The Company had 7,970,886 shares of common stock outstanding as of June 30, 2015 and June 30, 2014, respectively.

At June 30, 2015, the Company's book value was $21.74 per share of common stock and OP unit, compared with $21.38 as of March 31, 2015.  The June 30, 2015 and March 31, 2015 book values include $3.6 million, or $0.40 per share of common stock and OP unit, in dividends and distributions payable related to the second quarter 2015 and the first quarter 2015, respectively.

The Company earned interest income of $9.6 million for the three months ended June 30, 2015, compared with $10.8 million for the three months ended June 30, 2014. The decrease was primarily due to (i) a decrease in interest income from the residential mortgage-backed securities ("RMBS") portfolio of $1.6 million primarily due to the reallocation of capital to whole loans and the sales of RMBS in the fourth quarter of 2014 to fund the acquisition of GMFS and (ii) a decrease in interest income from mortgage loans held for investment of $0.4 million due to scheduled principal paydowns, offset by an increase in interest income from mortgage loans held for sale of $0.8 million due to the acquisition of GMFS on October 31, 2014.

The Company incurred interest expense of $4.7 million for the three months ended June 30, 2015, compared with $4.4 million for the three months ended June 30, 2014.  The increase in interest expense was primarily due to an increase of borrowings on the warehouse lines of credit and repurchase facilities used to finance the Company's mortgage loans held for sale and investment, respectively, partially offset by a decrease in interest expense for borrowings on RMBS primarily due to the sale of RMBS in the fourth quarter of 2014 to fund the acquisition of GMFS.

At June 30, 2015, the weighted average net interest spread between the yield on the Company's assets and the cost of funds, including the impact of interest rate hedging, was 4.05% for mortgage loans held for investment and 4.81% for non-Agency RMBS and other investment securities, compared with 4.06% and  5.11%, respectively, at June 30, 2014.

The Company earned $17.4 million of non-interest income for the three months ended June 30, 2015, due to the inclusion of GMFS operating activities.  Non-interest income primarily consisted of $12.1 million of income from mortgage banking activities, net; $1.7 million of loan servicing fee income, net of direct costs; and a $3.6 million increase in fair value of MSRs.  The $12.1 million of income from mortgage banking activities, net was primarily comprised of $11.8 million of gain on sale of mortgage loans held for sale, net of direct costs.

The Company incurred expenses of $13.7 million for the three months ended June 30, 2015, compared with $3.2 million for the three months ended June 30, 2014.  The increase was mainly due to the addition of $8.1 million of salaries, commissions and benefits, $1.8 million primarily relating to rent expense and marketing and advertising, and $0.3 million related to the increase in contingent consideration, each relating to GMFS.

INVESTMENT PORTFOLIO SUMMARY

As of June 30, 2015, ZAIS Financial held residential mortgage loans for investment with an aggregate unpaid principal balance of $449.4 million and a fair value of $406.1 million, a diversified portfolio of non-Agency RMBS with a fair value of $131.4 million consisting primarily of senior tranches that were originally highly rated but subsequently downgraded and other investment securities with a fair value of $12.4 million.

During the three months ended June 30, 2015, the Company purchased/originated residential mortgage loans with an unpaid principal balance of $1.4 million which are held for investment at fair value.  During the same three month period, the Company purchased and sold non-Agency RMBS with an unpaid principal balance of $2.1 million and $11.6 million, respectively, and other investment securities with an unpaid principal balance of $12.7 million and $2.3 million, respectively. 

LEVERAGE, DEBT AND HEDGING ACTIVITIES

As of June 30, 2015, ZAIS Financial had a leverage ratio of 2.76x.  The aggregate borrowings outstanding as of June 30, 2015 were $534.8 million under the loan repurchase facilities with Citibank, N.A. and Credit Suisse First Boston Mortgage Capital LLC, four master securities repurchase agreements, warehouse lines of credit and the unsecured Exchangeable Senior Notes due 2016 (the "Notes") issued by the Company's operating partnership subsidiary.  The loan repurchase facilities which are secured by portions of the Company's distressed, re-performing and newly originated mortgage loans, the warehouse lines of credit which are secured by portions of the Company's mortgage loans held for sale and the master securities repurchase agreements which are secured by non-Agency RMBS and other investment securities, bear interest at rates that have historically moved in close relationship to LIBOR.  The Notes, which mature on November 15, 2016, are the Company's senior unsecured obligations and bear interest at a rate of 8% per year, payable semiannually in arrears on May 15th and November 15th of each year.

As of June 30, 2015, the Company had outstanding interest rate swap agreements designed to mitigate the effects of increases in interest rates on a portion of its repurchase agreements. These interest rate swap agreements provide for the Company to pay fixed interest rates and receive floating interest rates indexed to LIBOR, effectively fixing the floating interest rates on $17.2 million of borrowings under its repurchase agreements as of June 30, 2015.  The Company had outstanding MBS forward sales contracts used to mitigate the interest rate price risk associated with its outstanding interest rate lock commitments ("IRLC") and mortgage loans held for sale. The Company expects these derivatives will experience changes in fair value opposite to changes in fair value of the IRLCs and mortgage loans held for sale, thereby reducing earnings volatility. The notional amount of the Company's MBS forward sales contracts as of June 30, 2015 was $191.0 million.

COMMON STOCK DIVIDEND

On June 19, 2015, ZAIS Financial announced that its Board of Directors declared a cash dividend of $0.40 per share of the Company's common stock and OP unit for the three months ended June 30, 2015. The dividend was paid on July 15, 2015 to stockholders and OP unit holders of record as of the close of business on June 30, 2015. 

The Company's current policy is to pay quarterly distributions which will allow it to continue to qualify as a REIT.  Taxable and GAAP earnings will typically differ due to differences in premium amortization and discount accretion, certain non-taxable unrealized and realized gains and losses, and non-deductible general and administrative expenses.

INVESTOR CONFERENCE CALL

Management will host a conference call today, August 5, 2015, at 10:00 a.m. Eastern time to review the Company's financial results.  The number to call for this interactive teleconference is (719) 457-2689. 

A replay of the conference call will be available through Tuesday, August 11, 2015, by dialing (719) 457-0820 and entering the confirmation number, 9100966. 

The live broadcast of ZAIS Financial's quarterly conference call will also be available online at the Company's website, www.zaisfinancial.com on Wednesday, August 5, 2015, beginning at 10:00 a.m. Eastern time.  The online replay will follow shortly after the call and will be available for approximately one year.

SECOND QUARTER INVESTOR PRESENTATION

The Company's Second Quarter Investor Presentation – June 30, 2015, is available on the Company's website at www.zaisfinancial.com.  To access the presentation, select the Q2 2015 Earnings Presentation link on the "Investor Relations" page on the Company's website.

USE OF NON-GAAP FINANCIAL INFORMATION

In addition to the results presented in accordance with generally accepted accounting principles ("GAAP"), this press release includes Core Earnings which is a non-GAAP financial measure. The Company defines Core Earnings as net interest income, plus non-interest income from its mortgage banking platform (excluding the change in fair value of MSRs resulting from changes in valuation inputs or assumptions used in the valuation model), less total operating expenses (excluding depreciation and amortization, changes in contingent consideration, amortization of deferred premiums, production and profitability earn-outs and certain non-recurring adjustments), plus/(less) the income tax benefit/(expense) related to the Company's TRS entities. The Company's mortgage banking platform is primarily comprised of income related to originating, selling, and servicing mortgage loans.

The Company believes that providing investors with this non-GAAP financial information, in addition to the related GAAP measures, gives investors greater transparency into the information used by management in its financial and operational decision-making. However, because Core Earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of Core Earnings may not be comparable to other similarly-titled measures of other companies.

The following table reconciles net income computed in accordance with GAAP to Core Earnings:

 

 

ZAIS FINANCIAL CORP. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO CORE EARNINGS

Three Months Ended June 30,

Six Months Ended June 30,

2015

2014

2015

2014

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net income – U.S. GAAP

$   6,709,516

$ 25,872,135

$   7,126,762

$ 28,354,994

Recurring adjustments for non-core earnings:

   Change in unrealized gain or loss on

mortgage loans held for investment

(1,246,996)

(21,960,921)

(47,241)

(22,650,525)

   Change in unrealized gain or loss on real

estate securities

1,965,302

(1,548,195)

2,143,073

(4,284,253)

   Change in unrealized gain or loss on other

investment securities

(8,207)

(905,862)

(144,527)

(1,276,626)

   Change in unrealized gain or loss on real

estate owned

93,212

-

(8,568)

-

   Realized gain on mortgage loans held for

investment

(472,740)

(176,667)

(616,851)

(407,404)

   Realized gain on real estate securities

(75,659)

-

(75,659)

(73,619)

   Realized loss on other investment securities

39,360

-

39,360

-

   Realized loss on real estate owned

24,589

-

3,912

-

   (Gain) / loss on derivative instruments

related to investment portfolio

(1,401,457)

1,902,949

(494,367)

5,011,630

   Change in fair value of MSRs resulting

from changes in valuation inputs or 

assumptions used in a valuation model, net of tax

(2,640,956)

-

(1,014,669)

-

   Change in contingent consideration, net of tax

195,484

-

509,539

-

   Amortization of deferred premiums,

production and profitability earnouts, net of tax

96,971

-

258,592

-

    Depreciation and amortization, net of tax

138,323

-

274,777

-

Core Earnings -  non-U.S. GAAP

$     3,416,742

$    3,183,439

$   7,954,133

$    4,674,197

Core Earnings - per weighted average share  outstanding -  non-U.S. GAAP

$               0.38

$              0.36

$             0.89

$              0.53

Weighted average shares and OP Units

outstanding

8,897,800

8,897,800

8,897,800

8,897,800

 

 

ZAIS FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, 2015

December 31, 2014

(unaudited)

(Expressed in United States Dollars)

Assets

Cash

$           28,635,539

$           33,791,013

Restricted cash

2,281,129

7,143,078

Mortgage loans held for investment, at fair value – $405,438,355 and $415,814,067 pledged as collateral, respectively

406,139,379

415,959,838

Mortgage loans held for sale, at fair value – $103,080,539 and $97,690,960 pledged as collateral

104,785,025

97,690,960

Mortgage loans held for investment, at cost

925,109

1,338,935

Real estate securities, at fair value – $117,472,624 and $135,779,193 pledged as collateral, respectively

131,389,756

148,585,733

Other investment securities, at fair value – $0 and $2,040,532 pledged as collateral, respectively

12,368,030

2,040,532

Loans eligible for repurchase from Ginnie Mae

23,435,492

21,710,284

Mortgage servicing rights, at fair value

42,692,180

33,378,978

Derivative assets, at fair value

2,505,107

2,485,100

Other assets

8,030,469

6,092,863

Goodwill

14,183,537

16,512,680

Intangible Assets

5,274,440

5,668,611

    Total assets

$        782,645,192

$        792,398,605

Liabilities

Warehouse lines of credit

$          96,092,944

$          89,417,564

Loan repurchase facilities

296,150,716

300,092,293

Securities repurchase agreements

86,192,540

103,014,105

Exchangeable Senior Notes

55,978,929

55,474,741

Contingent consideration

12,279,645

11,430,413

Derivative liabilities, at fair value

1,172,251

2,585,184

Dividends and distributions payable

3,559,120

3,559,120

Accounts payable and other liabilities

14,341,221

11,731,089

Liability for loans eligible for repurchase from Ginnie Mae

23,435,492

21,710,284

    Total liabilities

589,202,858

599,014,793

Commitments and Contingencies

Equity

12.5% Series A cumulative non-voting preferred stock, $0.0001 par value;

     50,000,000 shares authorized; zero shares issued and outstanding

Common stock, $0.0001 par value; 500,000,000 shares authorized; 7,970,886 shares issued and outstanding

798

798

Additional paid-in capital

164,207,617

164,207,617

Retained earnings

9,080,830

9,029,947

    Total stockholders' equity, ZAIS Financial Corp

173,289,245

173,238,362

     Non-controlling interests

20,153,089

20,145,450

    Total equity

193,442,334

193,383,812

    Total liabilities and equity

$        782,645,192

$        792,398,605

 

 

ZAIS Financial Corp. and Subsidiaries

Consolidated Statements of Operations (unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2015

2014

2015

2014

(Expressed in United States Dollars)

Interest income

Mortgage loans held for investment

$ 6,423,504

$ 6,819,954

$ 13,049,493

$ 12,469,507

Mortgage loans held for sale

793,224

1,401,456

Real estate securities

2,280,782

3,832,576

4,701,415

7,573,191

Other investment securities

63,838

178,690

96,381

281,555

Total interest income

9,561,348

10,831,220

19,248,745

20,324,253

Interest expense

Warehouse lines of credit

518,932

1,072,291

Loan repurchase facilities

2,371,281

2,260,080

4,724,217

4,090,987

Securities repurchase agreements

394,542

737,290

797,051

1,397,692

Exchangeable Senior Notes

1,442,994

1,419,015

2,879,667

2,831,658

Total interest expense

4,727,749

4,416,385

9,473,226

8,320,337

Net interest income

4,833,599

6,414,835

9,775,519

12,003,916

Non-interest income

Mortgage banking activities, net

12,102,993

23,255,382

Loan servicing fee income, net of direct costs

1,667,635

3,304,734

Change in fair value of mortgage servicing rights

3,647,722

222,808

Other income

12,201

24,057

Total non-interest income

17,430,551

26,806,981

Other gains/(losses)

Change in unrealized gain or loss on mortgage loans held for investment,

1,246,996

21,960,921

47,241

22,650,525

Change in unrealized gain or loss on real estate securities

(1,965,302)

1,548,195

(2,143,073)

4,284,253

Change in unrealized gain or loss on other investment securities

8,207

905,862

144,527

1,276,626

Change in unrealized gain or loss on real estate owned

(93,212)

8,568

Realized gain on mortgage loans held for investment

472,740

176,667

616,851

407,404

Realized gain on real estate securities

75,659

75,659

73,619

Realized loss on other investment securities

(39,360)

(39,360)

Realized loss on real estate owned

(24,589)

(3,912)

Gain/(loss) on derivative instruments related to investment portfolio

1,401,457

(1,902,949)

494,367

(5,011,630)

Total other gains/(losses)

1,082,596

22,688,696

(799,132)

23,680,797

Expenses

Advisory fee – related party

717,488

710,563

1,428,288

1,413,318

Salaries, commissions and benefits

8,090,407

15,489,665

Operating expenses

3,953,156

1,462,651

6,872,804

3,694,517

Other expenses

976,263

1,058,182

2,111,462

2,221,884

Total expenses

13,737,314

3,231,396

25,902,219

7,329,719

Net income before income tax expense

9,609,432

25,872,135

9,881,149

28,354,994

Income tax expense

2,899,916

2,754,387

Net income

6,709,516

25,872,135

7,126,762

28,354,994

Net income allocated to non-controlling interests

655,705

2,698,204

699,171

2,956,858

Net income attributable to ZAIS Financial Corp. common stockholders

$ 6,053,811

$ 23,173,931

$ 6,427,591

$ 25,398,136

Net income per share applicable to common stockholders:

Basic

$ 0.76

$ 2.91

$ 0.81

$ 3.19

Diluted

$ 0.65

$ 2.47

$ 0.79

$ 2.79

Weighted average number of shares of common stock:

Basic

7,970,886

7,970,886

7,970,886

7,970,886

Diluted

10,677,360

10,677,360

10,677,360

10,677,360

 

The following table sets forth certain information regarding the Company's mortgage loans held for investment at June 30, 2015 which showed evidence of credit deterioration at the time of purchase:

Unpaid Principal

 Balance

Premium

Amortized

Cost

Gross Unrealized(1)

Weighted Average

(Discount)

Gains

Losses

Fair Value

Coupon

Yield(2)

Mortgage Loans Held for Investment

Performing

Fixed

$ 252,675,537

$  (48,603,149)

$ 204,072,388

$   27,672,349

$    (1,431,211)

$ 230,313,526

4.62%

7.46%

ARM

158,268,741

(19,295,683)

138,973,058

9,375,159

(1,536,969)

146,811,248

3.55

7.14

Total performing

410,944,278

(67,898,832)

343,045,446

37,047,508

(2,968,180)

377,124,774

4.21

7.33

Non-performing(3)

34,890,025

(5,551,256)

29,338,769

697,611

(4,601,741)

25,434,639

5.05

7.23

Total Mortgage Loans

  Held for Investment

$ 445,834,303

$  (73,450,088)

$ 372,384,215

$   37,745,119

$    (7,569,921)

$ 402,559,413

4.27%

7.32%

___________________­

(1) The Company has elected the fair value option pursuant to ASC 825 for these mortgage loans held for investment. The Company recorded a gain of $1.3 million and $22.0 million for the three months ended June 30, 2015 and June 30, 2014, respectively, and a gain of $0.2 million and $22.7 million for the six months ended June 30, 2015 and June 30, 2014, respectively, as change in unrealized gain or loss on mortgage loans held for investment in the consolidated statements of operations.

(2) Unleveraged yield.

(3) Loans that are delinquent for 60 days or more are considered non-performing.

The following table sets forth certain information regarding the Company's mortgage loans held for investment at June 30, 2015 which were newly originated at the time of purchase and sourced through its loan purchase program:

Unpaid Principal

Balance

Amortized

Cost

Gross Unrealized(1)

Weighted Average

Premium

Gains

Losses

Fair Value

Coupon

Yield(2)

Performing

Fixed

$ 3,586,618

$       62,888

$ 3,649,506

$               —

$      (69,540)

$ 3,579,966

4.88%

4.73%

Total Mortgage Loans

  Held for Investment

$ 3,586,618

$       62,888

$ 3,649,506

$               —

$      (69,540)

$ 3,579,966

4.88%

4.73%

__________________­

(1) The Company has elected the fair value option pursuant to ASC 825 for these mortgage loans held for investment. The Company recorded a loss of $0.1 million for the three and six months ended June 30, 2015 as change in unrealized gain or loss on mortgage loans held for investment in the consolidated statements of operations. The Company did not hold any mortgage loans held for investment which were newly originated at the time of purchase during the three and six months ended June 30, 2014.

(2) Unleveraged yield.

The following table sets forth certain information regarding the Company's RMBS and other investment securities at June 30, 2015:

Gross Unrealized(1)

Weighted Average

Principal or

Notional

Premium

(Discount)

Amortized Cost

Gains

Losses

Fair Value

Coupon

Yield(2)

Real estate securities

Non-Agency RMBS Alternative – A(3)

$   93,275,721

$   (46,808,702)

$    46,467,019

$      1,590,422

$        (933,163)

$    47,124,278

2.44%

7.11%

Pay option adjustable rate

55,314,958

(10,158,317)

45,156,641

39,361

(1,987,380)

43,208,622

0.96

5.82

Prime

40,959,740

(5,322,009)

35,637,731

965,373

(269,201)

36,333,903

3.62

6.43

    Subprime

7,910,015

(3,307,238)

4,602,777

122,137

(1,961)

4,722,953

0.96

7.35

Total RMBS

$  197,460,434

$   (65,596,266)

$  131,864,168

$      2,717,293

$     (3,191,705)

$  131,389,756

2.21%

6.49%

Other Investment Securities

$    12,732,000

$        (282,273)

$    12,449,727

$           33,955

$        (115,652)

$    12,368,030

4.29%

6.88%

(1) The Company has elected the fair value option pursuant to ASC 825 for its real estate securities and Other Investment Securities. The Company recorded a loss of $2.0 million and a gain of $1.5 million for the three months ended June 30, 2015 and June 30, 2014, respectively, and a loss of $2.1 and a gain of $4.3 million for the six months ended June 30, 2015 and June 30, 2014, respectively, as change in unrealized gain or loss on real estate securities in the consolidated statements of operations. The Company also recorded a gain of $8,207 and $0.9 million for the three months ended June 30, 2015 and June 2014, respectively, and a gain of $0.1 million and $1.3 million for the six months ended June 30, 2015 and June 30, 2014, respectively, as change in unrealized gain or loss on other investment securities in the consolidated statements of operations.

(2) Unleveraged yield.

(3) Alternative – A RMBS includes an interest-only strip with a notional balance of $39.3 million.

The following table sets forth activity regarding the Company's MSR portfolio at June 30, 2015:

Three Months

Ended

June 30, 2015

Six Months

Ended

 June 30, 2015

Additions due to loans sold, servicing retained

$           5,680,494

$           9,090,394

Fair value adjustment:(1)

Changes in valuation inputs or assumptions used in valuation model(2)

4,401,593

1,691,115

Other changes(3)

(753,871)

(1,468,307)

Total changes in MSR

$          9,328,216

$          9,313,202

(1) Included in change in fair value of MSRs in the Company's consolidated statements of operations.

(2) Primarily reflects changes in prepayment assumptions due to changes in interest rates.

(3) Represents decrease in value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid off or paid down during the period.

The Company's MSR portfolio at June 30, 2015 is summarized as follows:

June 30, 2015

Unpaid Principal Balance

Fair Value

Fannie Mae

$                 1,792,474,984

$                        20,204,653

Ginnie Mae

1,287,026,311

16,240,299

Freddie Mac                              

528,502,222

6,247,228

Total

$                   3,608,003,517

$                        42,692,180

The following table presents information about the Company's interest rate swap agreements as of June 30, 2015:

Maturity

Notional Amount

Weighted Average Pay Rate

Weighted Average Receive Rate

Weighted Average Years to Maturity

2023

$        17,200,000

2.72%

0.28%

8.1

Total/Weighted average

$        17,200,000

2.72%

0.28%

8.1

 

ABOUT ZAIS FINANCIAL CORP.

ZAIS Financial Corp. is a real estate investment trust ("REIT") which originates, acquires, finances, services and manages a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets. The Company is externally managed and advised by ZAIS REIT Management, LLC, a subsidiary of ZAIS Group, LLC. Additional information can be found on the Company's website at www.zaisfinancial.com.

This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, changes in future loan production; the Company's ability to retain key managers of GMFS; availability of suitable investment opportunities; changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability and terms of financing; general economic conditions; market conditions; conditions in the market for mortgage-related investments; legislative and regulatory changes that could adversely affect the business of the Company; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC"),  and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

 

SOURCE ZAIS Financial Corp.



RELATED LINKS

http://www.zaisfinancial.com