Invesco Mortgage Profit Surges On Hedging Gains

(RTTNews) - Invesco Mortgage Capital Inc. (IVR) Wednesday reported second-quarter net income to common stock of $139 million or $0.95 per share, a sharp increase from $79 million or $0.68 per share last year.

Results for the recent quarter included gains of $53 million related to interest rate swaps and swaptions.

Excluding items, core earnings for the quarter were $80 million or $0.59 per share, compared with $74 million or $0.64 per share a year ago.

Analysts polled by Thomson Reuters estimated earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income for the quarter was higher at $96 million, compared with $82 million in the prior year. Analysts estimated $95.65 million.

Loan-loss provision for the quarter totaled $663 thousand.

"We believe our diversified portfolio and hedging strategy helped reduce the impact that rising interest rates had on our book value. We continue to position our portfolio for a rising rate environment and took additional steps last quarter to increase our hedging...," said CEO Richard King.