October 27, 2021



Invesco Mortgage Capital Inc. Reports Second Quarter 2021 Financial Results

Overal deficit per normal portion of $0.34 contrasted with $0.09 in Q1 2021

Income accessible for dispersion per normal share* (previously center profit per normal portion) of $0.10 contrasted with $0.11 in Q1 2021

Normal stock profit of $0.09 per normal offer contrasted with $0.09 per normal offer in Q1 2021

Book esteem per normal share** of $3.21 contrasted with $3.65 at Q1 2021

Monetary return*** of (9.6%) contrasted with (3.1%) in Q1 2021

“We are satisfied to report income accessible for appropriation of $0.10 per normal offer for the second quarter of 2021. Profit accessible for circulation keeps on being upheld by solid dollar rolls, moderately lethargic prepayment speeds on our predetermined pool guarantee and expanded profits from value on new speculations. During the quarter, we gained ground in re-adjusting our capital design by reclaiming $140.0 million of our Series A Preferred Stock and raising $145.9 million of normal value. At quarter-end, practically the entirety of our $8.7 billion venture portfolio was put resources into Agency private home loan upheld protections (“Agency RMBS”), and we kept a sizeable equilibrium of unhindered money and unrestricted speculations adding up to $651.1 million.

“Organization RMBS forcefully failed to meet expectations during the subsequent quarter, as proceeded with solid interest from the Federal Reserve was more than offset by raised net inventory, diminished interest from business banks, expanded prepayment concerns and an expectation that the Federal Reserve’s course of events for lessening buys could be sped up. This underperformance brought about a 12.1% decline in book esteem per normal offer and a (9.6%) monetary return for the quarter. While more extensive spreads on our objective resources keep on supporting the profit force of the portfolio, the headwinds that home loans looked during the subsequent quarter to a great extent stay unblemished.”

* Earnings accessible for dissemination (and by estimation, profit accessible for dispersion per normal offer) is a non-Generally Accepted Accounting Principles (“GAAP”) monetary measure. Allude to the segment named “Non-GAAP Financial Measures” for significant divulgences and a compromise to the most practically identical U.S. GAAP measure.

** Book esteem per normal offer is determined as complete investors’ value less the liquidation inclination of the Company’s favored stock ($155.0 million and $287.5 million for Series B and Series C Preferred Stock as of June 30, 2021, individually, and $140.0 million, $155.0 million and $287.5 million for Series A, Series B and Series C Preferred Stock as of March 31, 2021, separately); isolated by all out normal offers remarkable.

*** Economic return for the quarter finished June 30, 2021 is characterized as the adjustment of book esteem per normal offer from March 31, 2021 to June 30, 2021 of ($0.44); in addition to profits proclaimed of $0.09 per normal offer; isolated by the March 31, 2021 book esteem for each normal portion of $3.65. Monetary return for quarter finished March 31, 2021 is characterized as the adjustment of book esteem per normal offer from December 31, 2020 to March 31, 2021 of ($0.21); in addition to profits pronounced of $0.09 per normal offer; separated by the December 31, 2020 book esteem for each normal portion of $3.86.

Key execution pointers for the quarters finished June 30, 2021 and March 31, 2021 are summed up in the table below.Net shortfall inferable from normal investors for the second quarter of 2021 was $88.3 million contrasted with total deficit owing to normal investors of $20.4 million for the principal quarter of 2021. Overal deficit inferable from normal investors during the second quarter of 2021 was essentially determined by a $186.3 million total deficit on subsidiaries and $14.6 million of favored profits, somewhat offset by a $72.6 million net addition on speculations and $43.2 million of premium pay.

Beginning with the second quarter of 2021, the Company changed the title of its non-GAAP proportion of center income (and by computation, center profit per normal offer), to profit accessible for conveyance (and by estimation, income accessible for dispersion per normal offer) to explain what the action presents. The changes made to accommodate net gain (deficit) owing to normal investors to profit accessible for circulation are indistinguishable from those changes that the Company recently made to decide center income.

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