ARLINGTON, Va., May 2, 2018 /PRNewswire/ -- Arlington Asset Investment Corp. (NYSE: AI) (the "Company" or "Arlington") today reported net loss attributable to common shareholders of $56.5 million, or $2.00 per diluted common share, loss before income taxes attributable to common shareholders of $38.3 million, or $1.36 per diluted common share, and non-GAAP core operating income of $16.1 million, or $0.57 per diluted common share, for the quarter ended March 31, 2018.  A reconciliation of non-GAAP core operating income to GAAP net income (loss) before income taxes appears at the end of this press release.

First Quarter 2018 Financial Highlights

  • $2.00 per diluted common share of GAAP net loss, including a $0.64 per diluted common share income tax provision
  • $1.36 per diluted common share of GAAP pre-tax loss
  • $0.57 per diluted common share of non-GAAP core operating income
  • $11.03 per common share of book value
  • $11.65 per common share of tangible book value
  • $0.55 per common share dividend

"Arlington delivered solid net interest income and non-GAAP core operating income results during the quarter.  Our spread earnings benefited from higher asset yields on our agency mortgage-backed securities ("MBS") as prepayment speeds declined during the quarter while the increase in repo funding costs from Federal Reserve rate hikes was mitigated by our substantial interest rate hedge position," said J. Rock Tonkel, Jr., the Company's President and Chief Executive Officer.  "Following a year of low volatility and a strong economic return for our Company in 2017, the first quarter of 2018 saw a sharp reversal of that trend as interest rates rose significantly and risk markets weakened amid heightened volatility.  Increased volatility coupled with reduced Federal Reserve support for agency MBS resulted in a widening of spreads between agency MBS yields and benchmark interest rates.  The higher interest rates and wider agency spreads resulted in underperformance in the pricing of our agency MBS relative to our interest rate hedges causing a decline in the Company's book value.  While spread widening generally results in declines in book values, the future earnings power of a hedged agency MBS portfolio improves as reinvestments of the portfolio occur at higher returns.  Spread earnings going forward should also benefit from favorable funding spreads as our interest rate swaps reset at higher receive rates relative to repo cost.  Finally, Arlington continues to benefit from the flexibility provided by its C corporation structure that also offers shareholders tax-advantaged returns."

Other First Quarter Highlights

As of March 31, 2018, the Company's agency MBS investment portfolio totaled $5,369 million in fair value, consisting of $3,907 million of specified agency MBS and $1,462 million of net long to-be-announced ("TBA") agency MBS.  As of March 31, 2018, the Company's $5,369 million agency MBS investment portfolio was comprised of the following:

  • $206 million of 3.5% coupon 15-year agency MBS
  • $63 million of 4.0% coupon 20-year agency MBS
  • $321 million of 3.5% coupon 30-year agency MBS
  • $3,678 million of 4.0% coupon 30-year agency MBS
  • $1,101 million of 4.5% coupon 30-year agency MBS

As of March 31, 2018, the Company's $3,907 million specified agency MBS portfolio had a weighted average amortized cost basis of $105.27 and a weighted average market price of $103.34.  The Company's fixed-rate agency MBS are comprised of securities backed by specified pools of mortgage loans selected for their lower propensity for prepayment.  Weighted average pay-up premiums on the Company's agency MBS portfolio, which represent the estimated price premium of agency MBS backed by specified pools over a generic TBA agency MBS, were approximately half of a percentage point as of March 31, 2018, relatively unchanged from December 31, 2017.

As of March 31, 2018, the Company's net long TBA agency MBS investment portfolio had a purchase price of $1,458 million and market value of $1,462 million, resulting in a net GAAP carrying fair value of $4 million.  Under GAAP, the gross fair value of the agency MBS underlying the Company's TBA commitments is not recognized on the balance sheet as the Company accounts for its TBA commitments as derivative instruments. 

As of March 31, 2018, the Company had $3,583 million of repurchase agreements outstanding with a weighted average rate of 1.89% and remaining weighted average maturity of 15 days secured by an aggregate of $3,775 million of agency MBS at fair value. 

Interest income less interest expense on short-term secured financing on the Company's agency MBS portfolio was $15.5 million for the first quarter of 2018 compared to $16.8 million for the fourth quarter of 2017, including the amortization of the Company's net premium on its agency MBS of $7.9 million for the first quarter of 2018 compared to $8.6 million for the fourth quarter of 2017.  The Company's weighted average yield on its agency MBS was 2.98% for the first quarter of 2018 compared to 2.86% for the fourth quarter of 2017, and the actual weighted-average constant prepayment rate ("CPR") for the Company's agency MBS was 8.64% for the first quarter of 2018 compared to 9.55% for the fourth quarter of 2017.  The Company's weighted average cost of repurchase agreement funding was 1.64% during the first quarter of 2018 compared to 1.37% during the fourth quarter of 2017.

The Company enters into various hedging transactions to mitigate the interest rate sensitivity of its cost of borrowing and the value of its agency MBS portfolio including interest rate swap agreements, U.S. Treasury note futures, put and call options on 10-year U.S. Treasury note futures, and options on agency MBS. 

Under the terms of the Company's interest rate swap agreements, the Company pays semiannual interest payments based on a fixed rate and receives quarterly variable interest payments based upon the prevailing three-month London Interbank Offered Rate ("LIBOR") on the date of reset. As of March 31, 2018, the Company had $3,525 million in notional amount of interest rate swap agreements with a weighted average pay fixed rate of 1.75% and a remaining weighted average maturity of 5.5 years.  The Company's weighted average net pay rate of its interest rate swap agreements was 0.04% during the first quarter of 2018 compared to 0.28% during the fourth quarter of 2017.  

In addition to interest rate swap agreements, the Company held $850 million in equivalent notional amount of short positions in 10-year U.S. Treasury note futures as of March 31, 2018 that were purchased during the first quarter of 2018 when the 10-year U.S. Treasury rate was 2.91%. 

The Company reported TBA dollar roll income of $6.6 million for the first quarter of 2018 compared to $7.2 million for the fourth quarter of 2017.  The implied weighted-average net interest spread of the Company's TBA dollar rolls was 1.84% for the first quarter of 2018 compared to 1.98% for the fourth quarter of 2017.  TBA dollar roll income is considered the economic equivalent of investing in agency MBS financed with a repurchase agreement and is calculated as the price discount of a forward-settling purchase of a TBA agency MBS relative to the "spot" sale of the same security.   Under GAAP, the Company accounts for its TBA commitments as derivative instruments and recognizes income from TBA dollar rolls as a component of net investment gains and losses in the Company's financial statements. 

Excluding TBA dollar roll income, we had net investment losses on our investment portfolio of $127.3 million. On our related interest rate hedging instruments, we had net investment gains of $73.3 million, excluding interest rate swap net interest expense. This results in a net investment loss on our hedged investment portfolio of $54.0 million, or $1.91 per diluted common share for the first quarter of 2018.

Income Taxes

The Company is subject to taxation as a corporation under Subchapter C of the Internal Revenue Code of 1986, as amended.  As of March 31, 2018, the Company estimated its net operating loss ("NOL") carryforward at $51.5 million that begins to expire in 2027, its net capital loss ("NCL") carryforward at $380.7 million that begins to expire in 2019, and its alternative minimum tax ("AMT") credit carryforward at $9.1 million that does not expire.  The Company's estimated loss and tax credit carryforwards as of March 31, 2018 are subject to potential adjustments up to the time of filing the Company's income tax returns. 

For GAAP purposes, the Company had a net deferred tax liability of $17.5 million, or $0.62 per common share, and an AMT credit carryforward within other assets on its consolidated balance sheet of $9.1 million, or $0.32 per common share, as of March 31, 2018.  The Company continues to record a full valuation allowance against its deferred tax assets that are capital in tax character and no valuation allowance against its deferred tax assets that are ordinary in tax character. The Company enters into various hedging transactions to mitigate the interest rate sensitivity of its cost of borrowing and the value of its agency MBS portfolio.  For income tax purposes, gains and losses from its agency MBS are capital in tax character while gains and losses from its interest rate swap hedges are ordinary in tax character.  During the first quarter of 2018, the Company had net investment losses on its agency MBS for which no deferred income tax benefit was recorded since the Company records a full valuation allowance against its deferred tax assets that are capital in nature.  However, during the first quarter of 2018, the Company had net investments gains on its interest rate swap hedges for which a deferred income tax provision was recorded resulting in the Company now having a net deferred tax liability on its balance sheet as of March 31, 2018.  For accounting purposes, the Company's interest rate swaps are a hedge against future higher funding costs on the Company's repurchase agreement financing.  However, those future higher expected funding costs are not currently reflected as a deferred tax asset whereas the future benefits of the hedge against the higher expected funding costs are currently reflected as a deferred tax liability.  As a result, the deferred tax liability related to the net gain on the Company's interest rate hedges should be offset in the future by tax deductions related to future higher funding costs on the Company's repurchase agreement financing as they materialize.

Distributions to Shareholders

The Company's Board of Directors approved a distribution to common shareholders of $0.55 per share for the first quarter of 2018.  The distribution was paid on April 30, 2018 to shareholders of record as of March 29, 2018.  The Company's Board of Directors also approved a distribution to its Series B preferred shareholders of $0.4375 per share for the first quarter of 2018.  The distribution was paid on April 2, 2018 to shareholders of record as of February 26, 2018.

The tax characterization of the Company's distributions to shareholders is determined and reported to shareholders on Form 1099-DIV after the end of the calendar year. As a C corporation, distributions to common and preferred individual shareholders of current or accumulated earnings and profits are qualified dividends eligible for the 23.8% maximum federal income tax rate whereas similar distributions to individual shareholders by a REIT of current or accumulated earnings and profits are nonqualified dividends subject to the higher 33.4% maximum effective federal tax rate (net of the 20% dividend deduction benefit), each inclusive of the 3.8% Medicare tax rate, on ordinary income.  Any distributions in excess of current or accumulated earnings and profits would be reported as returns of capital instead of qualified dividends.  Distributions that are classified as returns of capital are nontaxable to the extent they do not exceed a shareholder's adjusted tax basis in the Company's stock, or as a capital gain to the extent that the amount of the distribution exceeds a shareholder's adjusted tax basis in the Company's stock.

Conference Call

The Company will hold a conference call for investors at 9:00 A.M. Eastern Time on Thursday, May 3, 2018 to discuss the Company's first quarter 2018 results.

Investors may listen to the earnings call via the internet at: http://www.arlingtonasset.com/index.php?s=19.  Replays of the earnings call will be available for 60 days via webcast at the Internet address provided above, beginning two hours after the call ends.

Additional Information

The Company will make available additional quarterly information for the benefit of its shareholders through a supplemental presentation that will be available at the Company's website, www.arlingtonasset.com.  The presentation will be available on the Webcasts and Presentations section located under the Updates & Events tab of the Company's website.

About the Company

Arlington Asset Investment Corp. (NYSE: AI) is a principal investment firm that currently invests primarily in mortgage-related and other assets.  The Company is headquartered in the Washington, D.C. metropolitan area.  For more information, please visit www.arlingtonasset.com.

Statements concerning interest rates, portfolio allocation, financing costs, portfolio hedging, prepayments, dividends, book value, utilization of loss carryforwards and any other guidance on present or future periods constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances.  These factors include, but are not limited to, changes in interest rates, increased costs of borrowing, decreased interest spreads, changes in political and monetary policies, changes in default rates, changes in prepayment rates and other assumptions underlying our estimates related to our projections of future core earnings, changes in the Company's returns, changes in the use of the Company's tax benefits, changes in the agency MBS asset yield, changes in the Company's monetization of net operating loss carryforwards, changes in the Company's ability to generate cash earnings and dividends, preservation and utilization of the Company's net operating loss and net capital loss carryforwards, impacts of changes to and changes by Fannie Mae and Freddie Mac, actions taken by the U.S. Federal Reserve, the Federal Housing Finance Agency and the U.S. Treasury, availability of opportunities that meet or exceed the Company's risk adjusted return expectations, ability and willingness to make future dividends, ability to generate sufficient cash through retained earnings to satisfy capital needs, and general economic, political, regulatory and market conditions.  These and other material risks are described in the Company's most recent Annual Report on Form 10-K and any other documents filed by the Company with the SEC from time to time, which are available from the Company and from the SEC, and you should read and understand these risks when evaluating any forward-looking statement. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company.  Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Financial data to follow

 

ARLINGTON ASSET INVESTMENT CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)










March 31, 2018



December 31, 2017


ASSETS









Cash and cash equivalents


$

15,219



$

21,614


Interest receivable



12,662




12,546


Sold securities receivable



447,102





Mortgage-backed securities, at fair value









Agency



3,907,018




4,054,424


Private-label



75




76


Derivative assets, at fair value



5,024




763


Deferred tax assets, net






800


Deposits, net



57,624




59,103


Other assets



15,795




11,203


Total assets


$

4,460,519



$

4,160,529


LIABILITIES AND EQUITY









Liabilities:









Repurchase agreements


$

3,583,358



$

3,667,181


Interest payable



3,484




4,418


Accrued compensation and benefits



1,622




5,015


Dividend payable



17,836




17,550


Derivative liabilities, at fair value



2,039




4,833


Purchased securities payable



440,563





Deferred tax liabilities, net



17,518





Other liabilities



1,158




1,335


Long-term unsecured debt



73,936




73,880


Total liabilities



4,141,514




3,774,212


Equity:









Preferred stock (liquidation preference of $8,068 and $7,582, respectively)



7,567




7,108


Common stock



281




281


Additional paid-in capital



1,975,369




1,974,941


Accumulated deficit



(1,664,212)




(1,596,013)


Total equity



319,005




386,317


Total liabilities and equity


$

4,460,519



$

4,160,529


Book value per common share (1)


$

11.03



$

13.43


Tangible book value per common share (2)


$

11.65



$

13.40


Common shares outstanding (in thousands) (3)



28,197




28,197











(1) Book value per common share is calculated as total equity less the preferred stock liquidation preference divided by common shares outstanding.











(2) Tangible book value per common share is calculated as total equity less the preferred stock liquidation preference less (plus) net deferred tax assets (liabilities) divided by common shares outstanding.











(3) Represents common shares outstanding plus vested restricted stock units convertible into common stock less unvested restricted common stock.













 

 

ARLINGTON ASSET INVESTMENT CORP.
C
ONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)



Three Months Ended



March 31,

2018



December 31,

2017



September 30,

2017



June 30,

2017


Interest income
















Agency mortgage-backed securities

$

30,725



$

30,514



$

28,771



$

31,397


Private-label mortgage-backed securities


4




19




2




43


Other


131




76




62




21


Total interest income


30,860




30,609




28,835




31,461


Interest expense
















Short-term secured debt


15,325




13,727




12,748




11,314


Long-term unsecured debt


1,231




1,225




1,220




1,214


Total interest expense


16,556




14,952




13,968




12,528


Net interest income


14,304




15,657




14,867




18,933


Investment (loss) gain, net
















(Loss) gain on trading investments, net


(88,343)




(23,208)




13,996




15,855


Gain (loss) from derivative instruments, net


40,154




33,169




(572)




(31,678)


Other, net


50




277




(56)




(147)


Total investment (loss) gain, net


(48,139)




10,238




13,368




(15,970)


General and administrative expenses
















Compensation and benefits


3,040




3,505




3,449




2,804


Other general and administrative expenses


1,257




1,442




1,095




1,350


Total general and administrative expenses


4,297




4,947




4,544




4,154


(Loss) income before income taxes


(38,132)




20,948




23,691




(1,191)


Income tax provision


18,251




13,707




823




16,737


Net (loss) income


(56,383)




7,241




22,868




(17,928)


Dividend on preferred stock


(137)




(133)




(83)




(35)


Net (loss) income (attributable) available to

   common stock

$

(56,520)



$

7,108



$

22,785



$

(17,963)


Basic (loss) earnings per common share

$

(2.00)



$

0.25



$

0.86



$

(0.74)


Diluted (loss) earnings per common share

$

(2.00)



$

0.25



$

0.85



$

(0.74)


Weighted average common shares outstanding (in

   thousands)
















Basic


28,197




28,192




26,377




24,319


Diluted


28,197




28,580




26,856




24,319



Non-GAAP Core Operating Income

In addition to the Company's results of operations determined in accordance with generally accepted accounting principles as consistently applied in the United States ("GAAP"), the Company also reports "non-GAAP core operating income."  The Company defines core operating income as "economic net interest income" less "core general and administrative expenses."

Economic Net Interest Income

Economic net interest income, a non-GAAP financial measure, represents the interest income earned net of interest expense incurred from all of our interest bearing financial instruments as well as agency MBS which underlie, and are implicitly financed through, our TBA dollar roll transactions.  Economic net interest income is comprised of the following:

  • net interest income determined in accordance with GAAP;
      
  • TBA agency MBS dollar roll income, which is calculated as the price discount of a forward-settling purchase of a TBA agency MBS relative to the "spot" sale of the same security, earned ratably over the period beginning on the settlement date of the sale and ending on the settlement date of the forward-settling purchase; and
       
  • net interest income or expense incurred from interest rate swap agreements.

In the Company's consolidated statements of comprehensive income prepared in accordance with GAAP, TBA agency MBS dollar roll income and the net interest income or expense incurred from interest rate swap agreements are reported as a component of the overall periodic change in the fair value of derivative instruments within the line item "gain (loss) from derivative instruments, net" of the "investment gain (loss), net" section. We believe that economic net interest income assists investors in understanding and evaluating the financial performance of the Company's long-term-focused, net interest spread-based investment strategy, prior to the deduction of core general and administrative expenses. 

Core General and Administrative Expenses

Core general and administrative expenses are non-interest expenses reported within the line item "total general and administrative expenses" of the consolidated statements of comprehensive income less stock-based compensation expense. 

Non-GAAP Core Operating Income Results

The following table presents the Company's computation of core operating income for the last four fiscal quarters (unaudited, amounts in thousands, except per share amounts):

 


Three Months Ended



March 31,

2018



December 31,

2017



September 30,

2017



June 30,

2017


GAAP net interest income

$

14,304



$

15,657



$

14,867



$

18,933


TBA dollar roll income


6,643




7,171




6,424




4,298


Interest rate swap net interest expense


(816)




(2,434)




(4,198)




(5,293)


Economic net interest income


20,131




20,394




17,093




17,938


Core general and administrative expenses


(3,846)




(3,768)




(3,171)




(3,681)


Preferred stock dividend


(137)




(133)




(83)




(35)


Non-GAAP core operating income

$

16,148



$

16,493



$

13,839



$

14,222


















Non-GAAP core operating income per

   diluted common share

$

0.57



$

0.58



$

0.52



$

0.58


Weighted average diluted common

   shares outstanding


28,430




28,580




26,856




24,552


 

The following table provides a reconciliation of GAAP pre-tax net income (loss) to non-GAAP core operating income for the last four fiscal quarters (unaudited, amounts in thousands):

 


Three Months Ended



March 31,

2018



December 31,

2017



September 30,

2017



June 30,

2017


GAAP (loss) income before income taxes

$

(38,132)



$

20,948



$

23,691



$

(1,191)


Less:
















Total investment loss (gain), net


48,139




(10,238)




(13,368)




15,970


Stock-based compensation expense


451




1,179




1,373




473


Preferred stock dividend


(137)




(133)




(83)




(35)


Add back:
















TBA dollar roll income


6,643




7,171




6,424




4,298


Interest rate swap net interest expense


(816)




(2,434)




(4,198)




(5,293)


Non-GAAP core operating income

$

16,148



$

16,493



$

13,839



$

14,222


 

Non-GAAP core operating income is used by management to evaluate the financial performance of the Company's long-term investment strategy and core business activities over periods of time as well as assist with the determination of the appropriate level of periodic dividends to common stockholders.  The Company believes that non-GAAP core operating income assists investors in understanding and evaluating the financial performance of the Company's long-term investment strategy and core business activities over periods of time as well as its earnings capacity.  A limitation of utilizing this non-GAAP financial measure is that the effect of accounting for "non-core" events or transactions in accordance with GAAP does, in fact, reflect the financial results of our business and these effects should not be ignored when evaluating and analyzing our financial results.  For example, the economic cost or benefit of hedging instruments other than interest rate swap agreements, such as U.S. Treasury note futures or options on U.S. Treasury note futures, do not affect the computation of non-GAAP core operating income.  In addition, the Company's calculation of non-GAAP core operating income may not be comparable to other similarly titled measures of other companies.  Therefore, the Company believes that net income and comprehensive income determined in accordance with GAAP should be considered in conjunction with non-GAAP core operating income.

The following tables present information on the Company's investment and hedge portfolio as of March 31, 2018 (unaudited, dollars in thousands):

Agency MBS:







Fair Value


Specified agency MBS


$

3,907,018


Net long agency TBA position



1,461,972


Total


$

5,368,990


 

Specified Agency MBS:




























Unpaid
Principal
Balance



Net Unamortized Purchase Premiums



Amortized
Cost Basis



Net Unrealized Gain (Loss)



Fair Value



Market Price



Coupon



Weighted

Average

Expected

Remaining

Life


15-year fixed rate:

































3.5%


$

102,045



$

1,853



$

103,898



$

398



$

104,296




102.21




3.50

%



4.9


20-year fixed rate:

































4.0%



60,500




2,090




62,590




269




62,859




103.90




4.00

%



6.9


30-year fixed rate:

































3.5%



318,826




11,253




330,079




(9,275)




320,804




100.62




3.50

%



8.6


4.0%



2,801,423




149,839




2,951,262




(57,710)




2,893,552




103.29




4.00

%



7.6


4.5%



497,998




34,168




532,166




(6,679)




525,487




105.52




4.50

%



6.9


5.5%



19







19




1




20




109.59




5.50

%



5.9


         Total/weighted-

             average 30-year

             fixed rate



3,618,266




195,260




3,813,526




(73,663)




3,739,863




103.36




4.03

%



7.6


Total/weighted-average


$

3,780,811



$

199,203



$

3,980,014



$

(72,996)



$

3,907,018




103.34




4.01

%



7.5


 

Net Long Agency TBA Positions:

























Notional Amount:
















Net Long (Short)
Position



Implied Cost

Basis



Implied

Fair Value



Net Carrying

Amount


3.5% 15-year MBS purchase commitments


$

100,000



$

101,683



$

101,953



$

270


4.0% 30-year MBS purchase commitments



1,180,000




1,206,313




1,210,370




4,057


4.5% 30-year MBS purchase commitments



550,000




574,912




575,594




682


4.0% 30-year MBS sell commitments



(415,000)




(425,033)




(425,945)




(912)


Total TBA commitments, net


$

1,415,000



$

1,457,875



$

1,461,972



$

4,097


 

Interest Rate Swap Agreements:























Weighted-average:








Notional Amount



Fixed Pay Rate



Variable Receive Rate



Net Receive Rate



Remaining Life (Years)



Fair Value


Years to maturity:

























Less than 3 years


$

1,175,000




1.25

%



1.96

%



0.71

%



1.6



$

7


3 to less than 7 years



600,000




1.89

%



1.96

%



0.07

%



3.5




(31)


7 or more years



1,750,000




2.04

%



2.09

%



0.05

%



8.9




(620)


Total / weighted-average


$

3,525,000




1.75

%



2.03

%



0.28

%



5.5



$

(644)


 

U.S. Treasury Note Futures:













Maturity Date


Notional Amount



Net Fair Value


10-year U.S. Treasury note futures


June 2018



850,000




(468)













The following table presents information about the components of the Company's net deferred tax assets (liabilities) as of March 31, 2018 and December 31, 2017 (unaudited, dollars in thousands):

 



As of March 31, 2018



As of December 31, 2017




Gross Amount



Tax Effected



Gross Amount



Tax Effected


Ordinary deferred tax (liabilities) assets:

















NOL carryforward


$

51,489



$

13,253



$

60,681



$

15,619


Deferred net loss on designated hedges



6,595




1,698




17,020




4,381


Net unrealized gain on designated hedges



(133,291)




(34,309)




(82,434)




(21,218)


Stock-based compensation



8,218




2,115




7,768




1,999


Other, net



(275)




(275)




72




19


Total ordinary deferred tax (liabilities) assets, net



(67,264)




(17,518)




3,107




800



















Capital deferred tax assets:

















NCL carryforward



380,660




97,982




314,276




80,895


Net unrealized loss on investments



129,171




33,249




91,030




23,431


Valuation allowance



(509,831)




(131,231)




(405,306)




(104,326)


Total capital deferred tax assets, net













Total deferred tax (liabilities) assets, net


$

(67,264)



$

(17,518)



$

3,107



$

800


 

Cision View original content:http://www.prnewswire.com/news-releases/arlington-asset-investment-corp-reports-first-quarter-2018-financial-results-300641508.html

SOURCE Arlington Asset Investment Corp.