ARMOUR Residential REIT, Inc. (NYSE:ARR) Q4 2022 Earnings Conference Call February 16, 2023 8:00 AM ET
Company Participants
James Robert Mountain - Chief Financial Officer
Scott Ulm - Co-Chief Executive Officer, Head of Risk Management and Co-Vice Chairman
Jeffrey Zimmer - Co-Chief Executive Officer, President and Co-Vice Chairman
Mark Richard Gruber - Chief Investment Officer
Conference Call Participants
Doug Harter - Credit Suisse
Trevor Cranston - JMP Securities
Matthew Howlett - B. Riley
Christopher Nolan - Ladenburg Thalmann
Operator
Good morning, and welcome to ARMOUR Residential REIT’s Fourth Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded.
I’d now like to turn the conference over to ARMOUR’s Chief Financial Officer, Jim Mountain. Please go ahead.
James Robert Mountain
Thank you, Anthony, and thank you all for joining our call to discuss ARMOUR’s fourth quarter 2022 results. This morning, I’m joined by ARMOUR’s Co-CEOs, Scott Ulm and Jeff Zimmer; and Mark Gruber, our CIO. By now, everyone has access to ARMOUR’s earnings release, which can be found on ARMOUR’s website www.armourreit.com.
This conference call includes forward-looking statements, which are intended to be subject to the Safe Harbor protections provided by the Private Securities Litigation Reform Act of 1995. The Risk Factors section of ARMOUR’s public reports filed with the Securities and Exchange Commission described certain factors beyond ARMOUR’s control that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Those periodic filings can be found on the SEC’s website at www.sec.gov. All of today’s forward-looking statements are subject to change without notice. We disclaim any obligation to update them unless required by law.
Also, today’s discussion refers to certain non GAAP measures. These measures are reconciled with comparable GAAP measures in our earnings release. An online replay of this conference call will be available on ARMOUR’s website shortly and will continue there for one year.
ARMOUR’s Q4 comprehensive income available to common stockholders was $39.5 million. That includes $39.4 million of GAAP net income. Net interest income was $11.6 million and net interest margin for the quarter improved 38 basis points to 2.59%. Distributable earnings available to common stockholders was $38.8 million, or $0.27 per common share. This non-GAAP measure is defined as net interest income plus TBA Drop Income adjusted for the net coupon effect of our interest rate swaps minus net operating expenses.