EXHIBIT 99.1
[REDWOOD TRUST LOGO]
REDWOOD TRUST
CONTACT:
Doug Hansen/George Bull
FOR IMMEDIATE RELEASE Redwood Trust, Inc
Thursday, May 1, 2003 (415) 389-7373
REDWOOD TRUST'S EARNINGS RISE IN FIRST QUARTER 2003
GAAP EARNINGS OF $0.88 PER SHARE, UP 10%; CORE EARNINGS OF $0.88 PER SHARE, UP
14%
MILL VALLEY, CA MAY 1, 2003 Redwood Trust, Inc. (NYSE: RWT), an investor in real
estate loans, today reported GAAP earnings of $0.88 per share for the first
quarter of 2003, an increase of 10% from the first quarter 2002 GAAP earnings
per share of $0.80.
Core earnings, which exclude realized and unrealized gains and losses in the
market value of assets, were $0.88 per share in the first quarter of 2003, a 14%
increase from first quarter 2002 core earnings of $0.77 per share and a 10%
increase from fourth quarter core earnings of $0.80 per share.
Doug Hansen, Redwood's President, said: "We are pleased to start 2003 with a
strong quarter. Our credit results were excellent during the first quarter of
2003. As a result, our real estate loan portfolios generated an increased level
of cash flow and profit."
"We started 2003 with excess capital," Mr. Hansen continued. "In the first
quarter, we invested in $1.4 billion of new real estate loan assets, and thus
made progress towards better capital utilization. Opportunities to acquire new
assets continue to be attractive."
1
First Quarter Review
During the first quarter of 2003, Redwood earned $14.9 million on a reported
GAAP basis ($0.88 per share) and $15.0 million on a core basis ($0.88 per
share).
We acquired $1.3 billion high-quality residential jumbo whole loans, $37 million
residential loan credit- enhancement securities, $2 million commercial real
estate loans, and $43 million other residential and commercial real estate loan
securities.
The combined residential portfolios, including both the loans we own and the
loans we credit-enhance through the acquisition of residential
credit-enhancement securities, grew from $65 billion to $68 billion during the
first quarter of 2003.
Serious delinquencies in our combined residential portfolios increased from
0.23% to 0.24% of current loan balances. Redwood's delinquency ratios remain
well below national averages for conventional and jumbo residential real estate
loans. The credit loss rate on loans included in our combined residential
portfolios remained under one basis point (0.01%) per year.
Our operating profitability margin - net interest income as a percentage of
equity - improved from 20.9% in the fourth quarter of 2002 to 23.3% in the first
quarter of 2003. Continued excellent credit results drove most of this margin
increase; favorable prepayment trends and improved capital utilization also
contributed to favorable results.
Tax expense accruals rose to $2 million for the first quarter of 2003. If our
taxable REIT income continues to exceed our regular common dividend
distributions, our current plan is to defer distribution of a portion of our
2003 taxable REIT income into 2004 (thus incurring excise taxes) and to retain
on a permanent basis up to 10% of our taxable REIT income (thus incurring income
taxes). We would expect that retained income may increase our earnings and
dividend-paying potential over time. In addition to retaining and deferring any
excess income that we may earn in 2003, we may distribute a portion of such
income as special dividends in 2003 and / or 2004.
2
Mr. Hansen concluded: "We continue to grow and evolve: enhancing our operating
capabilities, building closer relationships with customers, improving our
productivity, and strengthening our balance sheet. We have been able to
accumulate a large base of attractive real estate assets that we believe should
generate healthy cash flows in most economic environments. As a result, we
believe that we are in a strong position to achieve our primary operating
objective - paying a steady regular dividend to our shareholders."
For more information about Redwood Trust, Inc., please visit
www.redwoodtrust.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Certain matters discussed in this news release may constitute forward-
looking statements within the meaning of the federal securities laws that
inherently include certain risks and uncertainties. Actual results and the
timing of certain events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of factors,
including, among other things, changes in interest rates on our mortgage assets
and borrowings, changes in prepayment rates on our mortgage assets, general
economic conditions, particularly as they affect the price of mortgage assets
and the credit status of borrowers, and the level of liquidity in the capital
markets, as it affects our ability to finance our mortgage asset portfolio, and
other risk factors outlined in the Company's 2002 Annual Report on Form 10-K
(available on the Company's Web site or by request to the Contacts listed
above). Other factors not presently identified may also cause actual results to
differ. No one should assume that results or trends projected in or contemplated
by the forward-looking statements included above will prove to be accurate in
the future. We will revise our outlook from time to time and frequently will not
disclose such revisions publicly.
3
REDWOOD TRUST, INC.
(ALL DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2003 2002 2002 2002 2002
---- ---- ---- ---- ----
INCOME STATEMENT
Interest Income $ 61,125 $ 54,155 $ 42,093 $ 36,252 $ 30,716
Interest Expense (36,933) (33,323) (24,291) (18,489) (15,602)
------------ ------------ ------------ ------------ -----------
Net Interest Income 24,192 20,832 17,802 17,763 15,114
Operating Expenses (6,472) (6,009) (4,290) (4,536) (3,546)
Taxes (2,077) (959) 0 0 0
Preferred Dividends (681) (681) (681) (681) (681)
Mark-to-Market Adjustments (30) 1,383 1,475 1,256 332
------------ ------------ ------------ ------------ ------------
GAAP Earnings $ 14,932 $ 14,566 $ 14,306 $ 13,802 $ 11,219
Less: Mark-to-Market Adjustments 30 (1,383) (1,475) (1,256) (332)
------------ ------------ ------------ ------------ ------------
Core Earnings (1) $ 14,962 $ 13,183 $ 12,831 $ 12,546 $ 10,887
Average Diluted Shares 16,983,513 16,529,075 16,240,194 15,747,048 14,077,405
GAAP Earnings per Share (Diluted) $ 0.88 $ 0.88 $ 0.88 $ 0.88 $ 0.80
Core Earnings per Share (1) $ 0.88 $ 0.80 $ 0.79 $ 0.80 $ 0.77
Common Dividends per Share (Regular) $ 0.650 $ 0.630 $ 0.630 $ 0.630 $ 0.620
Common Dividends per Share (Special) $ 0.000 $ 0.125 $ 0.125 $ 0.125 $ 0.000
------------ ------------ ------------ ------------ ------------
Total Common Dividends per Share $ 0.650 $ 0.755 $ 0.755 $ 0.755 $ 0.620
Yield on Earning Assets 3.31% 3.59% 4.07% 4.71% 4.92%
Cost of Funds 2.10% 2.35% 2.57% 2.69% 2.82%
------------ ------------ ------------ ------------ ------------
Interest Rate Spread 1.21% 1.24% 1.50% 2.02% 2.10%
Net Interest Margin 1.28% 1.35% 1.68% 2.25% 2.36%
Net Interest Income / Core Equity (2) 23.3% 20.9% 18.5% 19.1% 18.1%
Return on Equity: GAAP Earnings/Reported Equity 12.9% 13.7% 14.1% 15.4% 14.2%
Core Return on Equity: Core Earnings / Core Equity 15.4% 14.2% 14.3% 14.5% 14.2%
(1) Core earnings is not a measure of earnings in accordance with generally
accepted accounting principles (GAAP). It is calculated as GAAP
earnings from ongoing operations less mark-to-market adjustments (which
include realized and unrealized gains and losses on certain assets,
hedges, and variable stock options). Management believes that core
earnings provides relevant and useful information regarding our results
of operations in addition to GAAP measures of performance. This is, in
part, because market valuation adjustments on only a portion of our
assets and stock options and none of our liabilities are recognized
through our income statement under GAAP and thus GAAP valuation
adjustments may not be fully indicative of changes in market values on
our balance sheet as a whole or a reliable guide to our current
operating performance. Furthermore, gains or losses realized upon sales
of assets vary based on portfolio management decisions; a sale of an
asset for a gain or a loss may or may not affect our on-going earnings
from operations. Because all companies and analysts do not calculate
non-GAAP measures such as core earnings in the same fashion, core
earnings as calculated by us may not be comparable to similarly titled
measures reported by other companies.
(2) Core equity is calculated as GAAP equity less unrealized gains and
losses on certain assets and hedges. Management believes measurements
based on core equity provide relevant useful information regarding our
results of operations in addition to GAAP measures of performance. This
is, in part, because market valuation adjustments reflected in our GAAP
equity represent unrealized gains and losses on a portion of our
balance sheet only and may not be reflective of the equity we are have
available to invest in our operations. Because all companies and
analysts do not calculate non-GAAP measures in the same fashion, core
equity and ratios using core equity as calculated by us may not be
comparable to similarly titled measures reported by other companies.
4
REDWOOD TRUST, INC.
(ALL DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
31-Mar 31-Dec 30-Sep 30-Jun 31-Mar
2003 2002 2002 2002 2002
---- ---- ---- ---- ----
BALANCE SHEET
Residential Real Estate Loans $ 7,321,039 $ 6,215,179 $ 4,761,893 $ 2,803,556 $ 1,794,260
Residential Loan Credit-Enhancement Securities 373,162 352,479 324,130 284,759 249,832
Commercial Real Estate Loans 31,214 29,270 50,664 49,798 49,380
Securities Portfolio 366,307 335,697 491,756 512,489 609,432
Cash and Cash Equivalents 42,882 39,169 20,606 13,155 9,960
Working Capital and Other Assets 37,459 35,978 25,253 26,025 26,974
----------- ----------- ----------- ----------- -----------
Total Assets $ 8,172,063 $ 7,007,772 $ 5,674,302 $ 3,689,782 $ 2,739,838
Short-Term Debt $ 475,717 $ 99,714 $ 834,081 $ 1,005,003 $ 1,122,513
Long-Term Debt 7,170,691 6,397,020 4,365,281 2,241,600 1,234,459
Working Capital and Other Liabilities 40,253 38,005 29,212 25,249 18,422
Preferred Equity 26,517 26,517 26,517 26,517 26,517
Common Equity 458,885 446,516 419,211 391,413 337,927
----------- ----------- ----------- ----------- -----------
Total Liabilities and Equity $ 8,172,063 $ 7,007,772 $ 5,674,302 $ 3,689,782 $ 2,739,838
Total Reported Equity $ 485,402 $ 473,033 $ 445,728 $ 417,930 $ 364,444
Less: Mark-to-Market Adjustments (68,077) (69,146) (54,148) (35,826) (11,015)
----------- ----------- ----------- ----------- -----------
Core Equity $ 417,325 $ 403,887 $ 391,580 $ 382,104 $ 353,429
Common Shares Outstanding at Period End 16,604,910 16,277,285 15,886,421 15,624,012 14,624,647
Reported Equity (Book Value) per Common Share $ 27.64 $ 27.43 $ 26.39 $ 25.05 $ 23.11
Core Equity per Common Share $ 23.54 $ 23.18 $ 22.98 $ 22.76 $ 22.35
Net Premium / (Discount) Balance $ (33,319) $ (9,662) $ (446) $ (9,147) $ (9,095)
Average Total Assets $ 7,553,726 $ 6,158,898 $ 4,234,477 $ 3,158,751 $ 2,564,847
Average Earning Assets $ 7,393,566 $ 6,042,042 $ 4,131,870 $ 3,080,165 $ 2,498,565
Average Interest Bearing Liabilities $ 7,036,183 $ 5,680,238 $ 3,781,717 $ 2,752,215 $ 2,211,927
Average Total Reported Equity (Common and Preferred) $ 489,086 $ 450,464 $ 432,310 $ 385,887 $ 341,766
5
REDWOOD TRUST, INC.
(ALL DOLLARS IN THOUSANDS)
31-Mar 31-Dec 30-Sep 30-Jun 31-Mar
2003 2002 2002 2002 2002
---- ---- ---- ---- ----
LEVERAGE RATIOS (1)
Total Report Assets $ 8,172,063 $ 7,007,772 $ 5,674,302 $ 3,689,782 $ 2,739,838
Less: Non-Recourse Assets (7,210,944) (6,435,025) (4,394,493) (2,266,849) (1,252,881)
----------- ----------- ----------- ----------- -----------
Recourse Assets $ 961,119 $ 572,747 $ 1,279,809 $ 1,422,933 $ 1,486,957
Total Reported Debt $ 7,646,408 $ 6,496,734 $ 5,199,362 $ 3,246,603 $ 2,356,972
Less: Non-Recourse Debt (7,170,691) (6,397,020) (4,365,281) (2,241,600) (1,234,459)
----------- ----------- ----------- ----------- -----------
Recourse Debt $ 475,717 $ 99,714 $ 834,081 $ 1,005,003 $ 1,122,513
Reported Debt to Reported Equity 15.8 13.7 11.7 7.8 6.5
Reported Equity / Total Reported Assets 6% 7% 8% 11% 13%
Recourse Debt to Reported Equity 1.0 0.2 1.9 2.4 3.1
Reported Equity / Recourse Assets 51% 83% 35% 29% 25%
(1) The majority of our debt is non-recourse debt. Holders of non-recourse
debt can look only to the pledged assets - and not to Redwood - for
repayment. Therefore, management believes that another useful measure
of the leverage we employ is to compute leverage ratios comparing our
equity base to our recourse debt (reported debt less non-recourse debt)
and to our recourse assets (our assets for which we are "at-risk",
i.e., excluding those assets pledged to non-recourse debt).
6
REDWOOD TRUST, INC.
(ALL DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2003 2002 2002 2002 2002
---- ---- ---- ---- ----
Residential Real Estate Loans
Start of Period Balances $ 6,215,179 $4,761,893 $2,803,556 $1,794,260 $1,474,862
Acquisitions 1,338,920 1,616,400 2,075,296 1,146,621 417,276
Sales Proceeds (73,137) 0 (2,960) (46,683) 0
Principal Paydowns (152,768) (155,915) (109,896) (89,582) (95,924)
Net Amortization Expense (6,156) (5,754) (3,502) (1,060) (1,672)
Net Charge Offs (Recoveries) 31 0 236 0 0
Credit Provisions (1,756) (1,660) (894) (472) (282)
Mark-to-Market - Balance Sheet 0 0 0 0 0
Mark-to-Market - Income Statement 726 215 57 472 0
----------- ---------- ---------- ---------- ----------
End of Period Balances $ 7,321,039 $6,215,179 $4,761,893 $2,803,556 $1,794,260
Average Amortized Cost During Period $ 6,625,540 $5,318,910 $3,262,462 $2,201,384 $1,544,924
Yield 2.55% 2.80% 3.00% 3.56% 3.66%
Principal Value of Loans $ 7,297,515 $6,190,674 $4,736,646 $2,795,628 $1,790,239
Credit Reserve (9,996) (8,271) (6,611) (5,953) (5,481)
Net Premium (Discount) to be Amortized 33,520 32,776 31,858 13,881 9,502
Market Valuation Adjustments 0 0 0 0 0
----------- ---------- ---------- ---------- ----------
Residential Real Estate Loans $ 7,321,039 $6,215,179 $4,761,893 $2,803,556 $1,794,260
Credit Reserve, Start of Period $ 8,271 $ 6,611 $ 5,953 $ 5,481 $ 5,199
Net Charge-Offs (NCO) (31) 0 (236) 0 0
Credit Provisions 1,756 1,660 894 472 282
----------- ---------- ---------- ---------- ----------
Credit Reserve, End of Period $ 9,996 $ 8,271 $ 6,611 $ 5,953 $ 5,481
Delinquencies (90 days + FC + BK + REO) $ 1,159 $ 4,127 $ 1,387 $ 3,257 $ 4,926
Delinquencies as % of Residential Loans 0.02% 0.07% 0.03% 0.12% 0.27%
NCO as % of Residential Loans (annualized) 0.01% 0.00% 0.01% 0.00% 0.00%
Reserve as % of Residential Loans 0.14% 0.13% 0.14% 0.21% 0.31%
Reserve as % of Delinquencies 862% 200% 477% 183% 111%
7
REDWOOD TRUST, INC.
(ALL DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2003 2002 2002 2002 2002
---- ---- ---- ---- ----
Residential Loan Credit-Enhancement Securities
Start of Period Balances $ 352,479 $ 324,130 $ 284,759 $ 249,832 $ 190,813
Acquisitions 37,077 13,442 28,983 25,849 59,157
Sales Proceeds 0 0 0 (898) (5,037)
Principal Paydowns (23,212) (13,573) (9,437) (15,801) (4,270)
Net Amortization Income 5,545 3,275 2,722 1,767 366
Mark-to-Market - Balance Sheet 998 25,205 17,351 21,795 8,758
Mark-to-Market - Income Statement 275 0 (248) 2,215 45
----------- ----------- ----------- ----------- -----------
End of Period Balances $ 373,162 $ 352,479 $ 324,130 $ 284,759 $ 249,832
Average Amortized Cost During Period $ 278,339 $ 271,016 $ 257,844 $ 238,282 $ 201,540
Yield 19.68% 16.65% 16.20% 15.12% 13.29%
Principal Value of Redwood's Securities $ 614,111 $ 559,186 $ 542,669 $ 492,642 $ 460,035
Redwood's Credit Reserve (234,060) (224,891) (220,735) (206,343) (194,556)
Net Premium (Discount) to be Amortized (84,648) (58,578) (49,360) (35,745) (28,058)
----------- ----------- ----------- ----------- -----------
Net Investment in Credit-Enhancement Securities $ 295,403 $ 275,717 $ 272,574 $ 250,554 $ 237,421
Market Valuation Adjustments 77,759 76,762 51,556 34,205 12,411
----------- ----------- ----------- ----------- -----------
Residential Loan Credit-Enhancement Securities $ 373,162 $ 352,479 $ 324,130 $ 284,759 $ 249,832
Securities Senior to Redwood's Interests $60,072,291 $58,036,745 $67,876,543 $65,503,415 $64,286,646
Principal Value of Redwood's Credit-Enhancement
Securities 614,111 559,186 542,669 492,642 460,035
Securities Junior to Redwood's Interests 61,814 63,179 64,147 65,102 79,924
----------- ----------- ----------- ----------- -----------
Underlying Mortgage Loan Balances $60,748,216 $58,659,110 $68,483,359 $66,061,159 $64,826,605
Redwood's Credit Reserve $ 234,060 $ 224,891 $ 220,735 $ 206,343 $ 194,556
Securities Junior to Redwood's Interests 61,814 63,179 64,147 65,102 79,924
----------- ----------- ----------- ----------- -----------
Redwood's Total Credit Protection $ 295,874 $ 288,070 $ 284,882 $ 271,445 $ 274,480
Delinquencies (90 days + FC + BK + REO) $ 161,498 $ 146,226 $ 151,507 $ 149,960 $ 129,849
Redwood's Net Charge-Offs $ (684) $ (214) $ (47) $ 74 $ 166
Losses to Securities Junior to Redwood's Interests (456) (163) (103) (189) (618)
----------- ----------- ----------- ----------- -----------
Total Underlying Loan Credit Losses $ (1,140) $ (377) $ (150) $ (115) $ (452)
Delinquencies as % of Underlying Loans 0.27% 0.25% 0.22% 0.23% 0.20%
Total Pool Credit Losses/Underlying Loans (Annualized) 0.01% 0.01% 0.01% 0.01% 0.01%
Total Credit Protection as % of Underlying Loans 0.49% 0.49% 0.42% 0.41% 0.42%
Total Credit Protection as % of Delinquencies 183% 197% 188% 181% 211%
8
REDWOOD TRUST, INC.
(ALL DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2003 2002 2002 2002 2002
---- ---- ---- ---- ----
COMBINED RESIDENTIAL LOAN PORTFOLIOS
Residential Real Estate Loans Owned $ 7,321,039 $ 6,215,179 $ 4,761,893 $ 2,803,556 $ 1,794,260
Residential Loans Credit-Enhanced 60,748,216 58,659,110 68,483,359 66,061,159 64,826,605
----------- ----------- ----------- ----------- -----------
Total Residential Loans $68,069,255 $64,874,289 $73,245,252 $68,864,715 $66,620,865
Credit Reserve on Residential Real Estate Loans Owned $ 9,996 $ 8,271 $ 6,611 $ 5,953 $ 5,481
Internal Credit Reserve on Loans Credit-Enhanced 234,060 224,891 220,735 206,343 194,556
----------- ----------- ----------- ----------- -----------
Redwood's Total Residential Credit Reserve $ 244,056 $ 233,162 $ 227,346 $ 212,296 $ 200,037
External Credit Enhancement on Loans Credit-Enhanced 61,814 63,179 64,147 65,102 79,924
----------- ----------- ----------- ----------- -----------
Redwood's Total Credit Protection $ 305,870 $ 296,341 $ 291,493 $ 277,398 $ 279,961
Total Credit Protection as % of Total Residential Loans 0.45% 0.46% 0.40% 0.40% 0.42%
Residential Real Estate Loans Owned Delinquencies $ 1,159 $ 4,127 $ 1,387 $ 3,257 $ 4,926
Residential Loans Credit-Enhanced Delinquencies 161,498 146,226 151,507 149,960 129,849
----------- ----------- ----------- ----------- -----------
Total Residential Loan Delinquencies $ 162,657 $ 150,353 $ 152,894 $ 153,217 $ 134,775
Delinquencies as % of Total Residential Loans 0.24% 0.23% 0.21% 0.22% 0.20%
Total Credit Protection as % of Delinquencies 188% 197% 191% 181% 208%
Net Charge-Offs on Residential Real Estate Loans Owned $ (31) $ 0 $ (236) $ 0 $ 0
Net Charge-Offs on Residential Loan Credit-Enhanced (684) (214) (47) 74 166
----------- ----------- ----------- ----------- -----------
Redwood's Shares of Net Credit (Losses) Recoveries $ (715) $ (214) $ (283) $ 74 $ 166
Credit Losses to External Credit Enhancement (456) (163) (103) (189) (618)
----------- ----------- ----------- ----------- -----------
Total Credit Losses $ (1,171) $ (377) $ (386) $ (115) $ (452)
Total Credit Losses as % of Total Residential Loans 0.01% 0.01% 0.01% 0.01% 0.01%
9
REDWOOD TRUST, INC.
(ALL DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2003 2002 2002 2002 2002
---- ---- ---- ---- ----
Commercial Real Estate Loans
Start of Period Balances $ 29,270 $ 50,664 $ 49,798 $ 49,380 $ 51,084
Acquisitions 2,011 0 919 470 140
Sales Proceeds 0 0 0 0 0
Principal Paydowns (68) (21,068) (54) (53) (1,873)
Net Amortization Income 0 24 0 0 28
Mark-to-Market - Balance Sheet 0 0 0 0 0
Mark-to-Market - Income Statement 1 (350) 1 1 1
--------- --------- --------- --------- ---------
End of Period Balances $ 31,214 $ 29,270 $ 50,664 $ 49,798 $ 49,380
Average Amortized Cost During Period $ 30,889 $ 47,935 $ 50,102 $ 49,369 $ 50,170
Yield 10.57% 10.15% 9.99% 10.22% 10.12%
Principal Value of Loans $ 32,223 $ 30,250 $ 51,318 $ 50,436 $ 50,057
Net Premium (Discount) to be Amortized (1,009) (980) (654) (638) (677)
Market Valuation Adjustments 0 0 0 0 0
--------- --------- --------- --------- ---------
Commercial Mortgage Loans $ 31,214 $ 29,270 $ 50,664 $ 49,798 $ 49,380
Commercial Mortgage Delinquencies $ 650 $ 650 $ 0 $ 0 $ 0
Commercial Mortgage Net Charge-Offs $ 0 $ 0 $ 0 $ 0 $ 0
Commercial Mortgage Credit Provisions $ 0 $ 0 $ 0 $ 0 $ 0
Commercial Mortgage Credit Reserves $ 0 $ 0 $ 0 $ 0 $ 0
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
2003 2002 2002 2002 2002
---- ---- ---- ---- ----
Securities Portfolio
Start of Period Balances $ 335,697 $ 491,756 $ 512,489 $ 609,432 $ 683,482
Acquisitions 42,955 196,279 6,811 23,026 76,701
Sales Proceeds 0 (315,308) 0 (56,802) (89,395)
Principal Paydowns (11,329) (31,009) (31,830) (65,618) (60,040)
Net Amortization Income (Expense) 3 (24) (1,051) (1,249) (1,701)
Mark-to-Market - Balance Sheet (944) (7,128) 970 3,017 (444)
Mark-to-Market - Income Statement (75) 1,131 4,367 683 829
--------- --------- --------- --------- ---------
End of Period Balances $ 366,307 $ 335,697 $ 491,756 $ 512,489 $ 609,432
Average Amortized Cost During Period $ 360,084 $ 320,154 $ 493,997 $ 529,843 $ 676,692
Yield 4.66% 4.93% 4.63% 4.70% 5.03%
Principal Value of Securities $ 370,187 $ 335,402 $ 477,950 $ 502,684 $ 601,926
Net Premium (Discount) to be Amortized 1,597 4,828 11,214 8,183 8,901
Market Valuation Adjustments (5,477) (4,533) 2,592 1,622 (1,395)
--------- --------- --------- --------- ---------
Securities Portfolio $ 366,307 $ 335,697 $ 491,756 $ 512,489 $ 609,432
10