Invesco Mortgage Capital Inc. Reports Second Quarter 2013 Financial Results

 Invesco Mortgage Capital Inc. Reports Second Quarter 2013 Financial Results

Net income of $140.3 million or $1.03 per common share

Core earnings of $79.8 million or $0.59 per common share *

Book Value of $17.88 per common share

PR Newswire

ATLANTA, July 31, 2013

ATLANTA, July 31, 2013 /PRNewswire/ --Invesco Mortgage Capital Inc. (NYSE:
IVR) (the "Company") today announced results for the quarter ended June 30,
2013.

(Logo: http://photos.prnewswire.com/prnh/20110131/MM39469LOGO-b )

"For the second quarter, we earned $1.03 per share on a GAAP basis and core
earnings of $0.59 per share, which allowed us to maintain our $0.65 dividend,"
said Richard King, President and CEO. "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,
reduce exposure to Agency RMBS and add credit assets."



($ in millions, except per share amounts)
                                            Q2 '13      Q1 '13
                                            (unaudited) (unaudited)
Average earning assets (at amortized costs) $21,614.6   $19,985.0
Average borrowed funds                      19,139.2    17,238.0
Average equity                              $2,774.4    $2,708.5
Interest income                             $175.7      $160.5
Interest expense                            79.5        67.6
Net interest income                         96.2        92.9
Other income                                61.3        6.7
Operating expenses                          13.9        11.9
Net income                                  143.1       87.7
Preferred dividend                          2.7         2.7
Net income after preferred dividend         $140.3      $85.0
Average portfolio yield                     3.25%       3.21%
Average cost of funds                       1.66%       1.57%
Debt to equity ratio                        7.6         6.4
Return on average equity                    20.23%      12.55%
Book value per common share (diluted)       $17.88      $20.42
Earnings per common share (basic)           $1.03       $0.65
Core earnings per common share *            $0.59       $0.62
Dividend per common share              $0.65       $0.65
Dividend per preferred share                $0.4844     $0.4844

* Core earnings is a non-GAAP financial measure. See the section on non-GAAP
financial information for important disclosures and a reconciliation to the
most comparable U.S. GAAP measure to core earnings.

Financial Summary

As of June 30, 2013, the Company's portfolio of mortgage-backed securities
("MBS") was $19.8 billion, a decrease of $1.4 billion from March 31, 2013.
The Company's portfolio of consolidated residential loans was $1.6 billion as
of June 30, 2013, an increase of $1.2 billion from March 31, 2013. For the
quarter ended June 30, 2013, average earning assets were $21.6 billion,
representing an increase of $1.6 billion from March 31, 2013. The portfolio
generated interest income of $175.7 million during the three months ended June
30, 2013, which reflects an increase of $15.2 million from the three months
ended March 31, 2013.

For the quarter ended June 30, 2013, the Company had average borrowings of
approximately $19.1 billion and interest expense, including cost of hedging,
of $79.5 million, compared to $17.2 billion and $67.6 million, respectively,
for the first quarter of 2013. Our average cost of funds was 1.66% and 1.57%
for the second quarter and first quarter, respectively.

Operating expenses for the second quarter of 2013 totalled $13.9 million,
compared to $11.9 million for the first quarter. The ratio of operating
expenses to average equity for the second quarter was 2.0%, which was an
increase of 24 basis points from the first quarter.

The Company declared a common stock dividend of $0.65 per share for the second
quarter of 2013. The dividend was paid on July 26, 2013.

The Company declared a preferred stock dividend of $0.4844 per share for the
second quarter of 2013. The dividend was paid on July 25, 2013.

About Invesco Mortgage Capital Inc.

Invesco Mortgage Capital Inc. is a real estate investment trust that focuses
on financing and managing residential and commercial mortgage-backed
securities and mortgage loans. Invesco Mortgage Capital Inc. is externally
managed and advised by Invesco Advisers, Inc., a subsidiary of Invesco Ltd.
(NYSE: IVZ), a leading independent global investment management company.

Earnings Call

Members of the investment community and the general public are invited to
listen to the Company's earnings conference call on Thursday, August 1, 2013,
at 8:30 a.m. ET, by calling one of the following numbers:

US/Canada Toll Free: 888-942-8507
International:       1-415-228-4839
Passcode:            Invesco

An audio replay will be available until 5:00 pm ET on August 15, 2013 by
calling:

1-800-456-0470 (North America) or 402-220-2193 (International).

The presentation slides that will be reviewed during the call will be
available on the Company's website at www.invescomortgagecapital.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release, and comments made in the associated conference call, may
include statements and information that constitute "forward-looking
statements" within the meaning of the U.S. securities laws as defined in the
Private Securities Litigation Reform Act of 1995, and such statements are
intended to be covered by the safe harbor provided by the same.
Forward-looking statements include statements with respect to our beliefs,
plans, objectives, goals, targets, expectations, anticipations, assumptions,
estimates, intentions and future performance. In addition, words such as
"will," "anticipates," "expects" and "plans," as well as any other statement
that necessarily depends on future events, are intended to identify
forward-looking statements.

Forward-looking statements are not guarantees and they involve risks,
uncertainties and assumptions. There can be no assurance that actual results
will not differ materially from our expectations. We caution investors not to
rely unduly on any forward-looking statements and urge investors to carefully
consider the risks identified under the captions "Risk Factors,"
"Forward-Looking Statements" and "Management's

Discussion and Analysis of Financial Condition and Results of Operations" in
our annual report on Form 10-K and quarterly reports on Form 10-Q, which are
available on the Securities and Exchange Commission's website at www.sec.gov.

All written or oral forward-looking statements that we make, or that are
attributable to us, are expressly qualified by this cautionary notice. We
expressly disclaim any obligation to update the information in any public
disclosure if any forward-looking statement later turns out to be inaccurate.





INVESCO MORTGAGE CAPITAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                        Three Months Ended  Six Months Ended
                                        June 30,            June 30,
$ in thousands, except per share data   2013      2012      2013      2012
 Interest income
 Mortgage-backed securities              168,736   139,004   329,080   280,964
 Residential loans                       6,889     -         7,026     -
 Commercial loans                        60        -         60        -
        Total interest income            175,685   139,004   336,166   280,964
 Interest expense
 Repurchase agreements                   68,463    56,700    134,792   111,985
 Exchangeable senior note                5,622     -         6,782     -
 Asset-backed securities issued          5,377     -         5,456     -
        Total interest expense           79,462    56,700    147,030   111,985
 Net interest income                     96,223    82,304    189,136   168,979
 Provision for loan losses               663       -         663       -
 Net interest income after provision     95,560    82,304    188,473   168,979
 for loan losses
 Other income
 Gain on sale of investments, net        5,692     6,098     12,404    12,143
 Equity in earnings and fair value
 change in unconsolidated
 ventures                           2,157     1,961     3,747     2,970
 Realized and unrealized gain (loss) on
 interest rate swaps and                 53,314    (1,533)   51,311    (2,043)

 swaptions
 Realized and unrealized credit default  180       690       531       1,347
 swap income
 Total other income                      61,343    7,216     67,993    14,417
 Expenses
 Management fee – related party          10,807    8,681     21,161    17,320
 General and administrative              3,043     1,045     4,587     2,174
 Total expenses                          13,850    9,726     25,748    19,494
 Net income                              143,053   79,794    230,718   163,902
 Net income attributable to              1,493     973       2,455     1,999
 non-controlling interest
 Net income attributable to Invesco      141,560   78,821    228,263   161,903
 Mortgage Capital Inc.
 Dividends to preferred shareholders     2,713     -         5,425     -
 Net income attributable to common       138,847   78,821    222,838   161,903
 shareholders
 Earnings per share:
 Net income attributable to common
 shareholders
                     (basic)             1.03      0.68      1.69      1.40
                     (diluted)           0.95      0.68      1.61      1.40
 Dividends declared per common share     0.65      0.65      1.30      1.30





INVESCO MORTGAGE CAPITAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
$ in thousands, except per share      As of
amounts
                                      June 30,              December 31,
ASSETS                                2013                  2012
                                      (Unaudited)
Mortgage-backed securities, at fair       19,806,158             18,470,563
value
Residential loans,
held-for-investment, net of loan loss     1,553,006              -
reserve
Commercial loans,
held-for-investment, net of loan loss     8,954                  -
reserve
Cash and cash equivalents                 169,777                286,474
Investment related receivable             902,228                41,429
Investments in unconsolidated             36,415                 35,301
ventures, at fair value
Accrued interest receivable               77,968                 62,977
Derivative assets, at fair value          257,110                6,469
Deferred securitization and financing     14,812                 -
costs
Other investments                         10,000                 10,000
Other assets                              2,149                  1,547
   Total assets (1)                       22,838,577             18,914,760
LIABILITIES AND EQUITY
Liabilities:
Repurchase agreements                     17,878,893             15,720,460
Asset-backed securities issued            1,432,008              -
Exchangeable senior notes                 400,000                -
Derivative liability, at fair value       304,289                436,440
Dividends and distributions payable       91,528                 79,165
Investment related payable                19,340                 63,715
Accrued interest payable                  23,594                 15,275
Collateral held payable                   91,368                 -
Accounts payable and accrued expenses     2,160                  877
Due to affiliate                          11,902                 9,308
   Total liabilities (1)                  20,255,082             16,325,240
Equity:
Preferred Stock: par value $0.01 per
share, 50,000,000 shares
   authorized; 7.75% series A
   cumulative redeemable, $25
   liquidation
   preference, 5,600,000 shares
   issued and outstanding at June 30,
   2013
   and December 31, 2012,                 135,356                135,362
   respectively
Common Stock: par value $0.01 per
share, 450,000,000 shares
   authorized; 135,215,860 and
   116,195,500 shares issued and
   outstanding at June 30, 2013 and       1,352                  1,162
   December 31, 2012, respectively
Additional paid in capital                2,712,605              2,316,290
Accumulated other comprehensive           (359,519)              86,436
income
Retained earnings                         66,387                 18,848
   Total shareholders' equity             2,556,181              2,558,098
Non-controlling interest                  27,314                 31,422
   Total equity                           2,583,495              2,589,520
   Total liabilities and equity           22,838,577             18,914,760
   (1) Our consolidated balance sheets include assets of consolidated variable
   interest entities ("VIEs") that can only be used to settle obligations
   andliabilities of the

   VIEs for which creditors do not have recourse to the primary beneficiary
   (IAS Asset I LLC, an indirect subsidiary of Invesco Mortgage Capital,
   Inc.). At June 30,

   2013 and December 31, 2012, total assets of the consolidated VIEs were
   $1,561,001 and $0 respectively, and total liabilities of the consolidated
   VIEs were

   $1,435,948 and $0 respectively.

Non-GAAP Financial Information

In addition to the results presented in accordance with GAAP, this release
contains the non-GAAP financial measure of "core earnings". The Company's
management uses core earnings in its internal analysis of results and believes
this information is useful to investors for the reasons explained below.

We calculate core earnings as GAAP net income attributable to common
shareholders excluding gain/loss on sale of investments and realized and
unrealized gain/loss on interest rate swaps and swaptions. The Company
records changes in the valuation of its investment portfolio and certain
interest rate swaps in other comprehensive income. In addition, the Company
uses swaptions that do not qualify under GAAP for inclusion in other
comprehensive income and, as such, the changes in valuation are recorded in
the period in which they occur. For internal portfolio analysis, the
Company's management deducts these gains and losses from GAAP net income to
provide a consistent view of investment portfolio performance across reporting
periods.

The Company believes the presentation of core earnings allows investors to
evaluate and compare the performance of the Company to that of its peers
because core earnings measures investment portfolio performance over multiple
reporting periods by removing realized and unrealized gains and losses. As
such, the Company believes that the disclosure of core earnings is useful to
its investors.

However, the Company cautions that core earnings should not be considered as
an alternative to net income (determined in accordance with GAAP), or an
indication of our cash flow from operating activities (determined in
accordance with GAAP), a measure of our liquidity, or an indication of amounts
available to fund our cash needs, including our ability to make cash
distributions. In addition, our methodology for calculating core earnings may
differ from those employed by other companies for a similarly described
measure and, therefore, may not be comparable.



Reconciliation of Net Income Attributable to Common Shareholders to Core
Earnings
                                     Three Months ended  Six Months ended
                                     June 30,             June 30,
$ in thousands, except per share     2013       2012      2013       2012
data
 Net income attributable to common    138,847    78,821    222,838    161,903
 shareholders
 Adjustments
  (Gain) loss on sale of          (5,692)    (6,098)   (12,404)   (12,143)
 investments, net
 Realized (gain) loss on         (27,159)   -         (27,159)   -
 interest rate swaps and swaptions
  Unrealized (gain) loss on       (26,155)   1,533     (24,152)   2,043
 interest rate swaps and swaptions
 Total adjustments                    (59,006)   (4,565)   (63,715)   (10,100)
 Core earnings                        79,841     74,256    159,123    151,803
 Earnings per common share (basic)    1.03       0.68      1.69       1.40
 Core earnings per share              0.59       0.64      1.21       1.32
 attributable to common shareholders

Mortgage-Backed Securities

The following table summarizes certain characteristics of the Company's MBS
portfolio as of June 30, 2013:

                                                                                          Period-
                                                                                          ^
                                                                             Net ^       end ^       Quarterly
                                                                                                      ^
                            Unamortized              Unrealized              Weighted    Weighted    Weighted
                                                                                          ^
                Principal   Premium      Amortized   Gain/       Fair        Average ^    Average     Average ^
                                                                                          ^
$ in thousands  Balance     (Discount)   Cost        (Loss),     Value       Coupon       Yield       Yield
^                                                    net                     ^(1)         ^(2)        ^(3)
Agency RMBS: ^
 15 year        1,838,463   95,923       1,934,386   22,062      1,956,448   4.03 ^  %  2.23 ^ %  2.17 ^  %
 fixed-rate ^
 30 year        10,181,259  674,996      10,856,255  (294,830)   10,561,425  3.92 ^  %  2.76 ^ %  2.77 ^  %
 fixed-rate ^
 ARM ^          66,156      1,995        68,151      618         68,769      3.33 ^  %  2.38 ^ %  2.39 ^  %
 Hybrid ARM ^   425,550     9,778        435,328     4,842       440,170     3.15 ^  %  2.40 ^ %  2.41 ^  %
    Total
    Agency
    pass-       12,511,428  782,692      13,294,120  (267,308)   13,026,812  3.91 ^  %  2.67 ^ %  2.67 ^  %

    through ^
 Agency-CMO^(4) 1,549,436   (1,042,298)  507,138     4,338       511,476     2.83 ^  %  2.91 ^ %  1.84 ^  %
 Non-Agency     4,376,621   (629,749)    3,746,872   3,556       3,750,428   3.85 ^  %  3.71 ^ %  4.54 ^  %
 RMBS^(5)
 CMBS^(6)       4,536,954   (2,021,524)  2,515,430   2,012       2,517,442   3.44 ^  %  4.64 ^ %  4.72 ^  %
Total ^         22,974,439  (2,910,879)  20,063,560  (257,402)   19,806,158  3.73 ^  %  3.12 ^ %  3.25 ^  %

(1) Net weighted average coupon ("WAC") as of June 30, 2013 is presented
net of servicing and other fees. ^
(2) Average yield based on amortized costs as of June 30, 2013 and
incorporates future prepayment and loss assumptions. ^
(3) Average yield based on average amortized costs for the three months
ended June 30, 2013 and incorporates future
prepayment and loss assumptions. ^
(4) Included in the Agency-CMO are interest-only securities which represent
17.6% of the balance based on fair value. ^
(5) The non-Agency RMBS held by the Company is 62.1% variable rate, 34.2%
fixed rate, and 3.7% floating rate based on
fair value.
(6) Included in the CMBS are interest-only securities and commercial real
estate mezzanine loan pass-through certificates
which represent 8% and 2% of the balance based on fair value, respectively.



Constant Prepayment Rates (CPR)

The CPR of our portfolio impacts the amount of premium and discount on the
purchase of securities that is recognized into income. Our Agency and
non-Agency RMBS had a weighted average CPR of 12.6 and 12.5 for the three
months ended June 30, 2013 and March 31, 2013, respectively. The table below
shows the three month CPR for our RMBS compared to bonds with similar
characteristics ("Cohorts").

                       June 30, 2013     March 31, 2013
                       Company  Cohorts  Company  Cohorts
15 year Agency RMBS    19.5     27.8     18.5     27.5
30 year Agency RMBS    9.5      15.8     9.5      19.5
Agency Hybrid ARM RMBS 22.8     NA       25.6     NA
Non-Agency RMBS        15.5     NA       15.5     NA
Overall                12.6     NA       12.5     NA



Borrowings

The following table summarizes the Company's borrowings by type of investment
as of June 30, 2013 and December 31, 2012:

 $ in           June 30, 2013                       December 31, 2012
 thousands
                                        Weighted                            Weighted
                            Weighted    Average                 Weighted    Average
                            Average     Remaining               Average     Remaining
               Amount       Interest    Maturity    Amount      Interest    Maturity
               Outstanding  Rate        (days)      Outstanding Rate        (days)
 Agency RMBS    12,901,076  0.38     %  18          11,713,565  0.48     %  16
 Non-Agency     2,954,836   1.53     %  44          2,450,960   1.75     %  23
 RMBS
 CMBS           2,022,981   1.43     %  21          1,555,935   1.51     %  18
 Exchangeable   400,000     5.00     %  1,719       -           -        %  -
 Senior Notes
 Total          18,278,893  0.79     %  59          15,720,460  0.78     %  17



Interest Rate Hedges

The following table summarizes our hedging activity as of June 30, 2013:

                                                                 Fixed
$ in thousands                                                   Interest
                                                                 Rate
Counterparty                  Notional        Maturity Date      in
                                                                 Contract
SunTrust Bank                 100,000         7/15/2014          2.79%
Deutsche Bank AG              200,000         1/15/2015          1.08%
Deutsche Bank AG              250,000         2/15/2015          1.14%
Credit Suisse                 100,000         2/24/2015          3.26%
International
Credit Suisse                 100,000         3/24/2015          2.76%
International
Wells Fargo Bank,             100,000         7/15/2015          2.85%
N.A.
Wells Fargo Bank,             50,000          7/15/2015          2.44%
N.A.
Morgan Stanley
Capital Services,             300,000         1/24/2016          2.12%
LLC
The Bank of New York          300,000         1/24/2016          2.13%
Mellon
Morgan Stanley
Capital Services,             300,000         4/5/2016           2.48%
LLC
Citibank, N.A.                300,000         4/15/2016          1.67%
Credit Suisse                 500,000         4/15/2016          2.27%
International
The Bank of New York          500,000         4/15/2016          2.24%
Mellon
JPMorgan Chase Bank,          500,000         5/15/2016          2.31%
N.A.
Goldman Sachs Bank            500,000         5/24/2016          2.34%
USA
Goldman Sachs Bank            250,000         6/15/2016          2.67%
USA
Wells Fargo Bank,             250,000         6/15/2016          2.67%
N.A.
JPMorgan Chase Bank,          500,000         6/24/2016          2.51%
N.A.
Citibank, N.A.                500,000         10/15/2016         1.93%
Deutsche Bank AG              150,000         2/5/2018           2.90%
ING Capital Markets           350,000         2/24/2018          0.95%
LLC
Morgan Stanley
Capital Services,             100,000         4/5/2018           3.10%
LLC
ING Capital Markets           300,000         5/5/2018           0.79%
LLC
JPMorgan Chase Bank,          200,000         5/15/2018          2.93%
N.A.
UBS AG                        500,000         5/24/2018          1.10%
ING Capital Markets           400,000         6/5/2018           0.87%
LLC
The Royal Bank of    (1)      500,000         9/5/2018           1.04%
Scotland Plc
CME Clearing House   (8)(9)   300,000         2/5/2021           2.69%
CME Clearing House   (8)(9)   300,000         2/5/2021           2.50%
Wells Fargo Bank,             200,000         3/15/2021          3.14%
N.A.
Citibank, N.A.                200,000         5/25/2021          2.83%
HSBC Bank USA,       (7)      550,000         2/24/2022          2.45%
National Association
The Royal Bank of    (6)      400,000         3/15/2023          2.39%
Scotland Plc
UBS AG               (6)      400,000         3/15/2023          2.51%
HSBC Bank USA,                250,000         6/5/2023           1.91%
National Association
HSBC Bank USA,       (2)      250,000         7/5/2023           1.97%
National Association
The Royal Bank of    (3)      500,000         8/15/2023          1.98%
Scotland Plc
UBS AG               (5)      250,000         11/15/2023         2.23%
HSBC Bank USA,       (4)      500,000         12/15/2023         2.20%
National Association
Total                         12,200,000                         2.09%


(1) Forward start
date of September
2013
(2) Forward start
date of July 2013
(3) Forward start
date of August 2013
(4) Forward start
date of December
2013
(5) Forward start
date of November
2013
(6) Forward start
date of March 2015
(7) Forward start
date of February
2015
(8) Forward start
date of February
2016
(9) Beginning June 10, 2013, regulations promulgated under The Dodd-Frank Wall
Street Reform and Consumer Protection Act mandate that the
Company clear new interest rate swap transactions through a central
counterparty. Transactions that are centrally cleared result in the Company
facing a clearing house, rather than a swap dealer, as counterparty. Central
clearing requires the Company to post collateral in the form of initial
and variation margin to the clearinghouse which reduces default risk.





Average Balances

The following table shows the average balances for the three months and six
months ended June 30, 2013 and 2012:

                     Three Months ended              Six Months ended
                     June 30,                        June 30,
 $ in thousands      2013            2012            2013          2012
 Average Balances*:
 Agency RMBS:
    15 year
    fixed-rate, at     1,949,617       2,366,226       1,997,076    2,413,817
    amortized cost
    30 year
    fixed-rate, at     11,524,578      7,781,391       11,512,548   7,392,538
    amortized cost
    ARM, at            69,149          170,816         83,227       174,048
    amortized cost
    Hybrid ARM, at     447,599         1,256,542       487,269      1,362,295
    amortized cost
    MBS-CMO, at        505,811         451,226         504,182      423,664
    amortized cost
 Non-Agency RMBS, at   3,815,772       2,305,605       3,530,088    2,342,487
 amortized cost
 CMBS, at amortized    2,491,250       1,263,334       2,275,552    1,238,748
 cost
 Residential Loans,    807,876         -               415,132      -
 at amortized cost
 Commercial Loans,     2,919           -               2,919        -
 at amortized cost
 Average MBS and
 Residential Loans     21,614,571      15,595,140      20,807,993   15,347,597
 portfolio
 Average Portfolio
 Yields (1):
 Agency RMBS:
    15 year            2.17%           2.67%           2.18%        2.69%
    fixed-rate
    30 year            2.77%           3.24%           2.81%        3.38%
    fixed-rate
    ARM                2.39%           2.71%           2.24%        2.59%
    Hybrid ARM         2.41%           2.80%           2.37%        2.69%
    MBS - CMO          1.84%           2.52%           1.65%        2.21%
 Non-Agency RMBS       4.54%           5.25%           4.58%        5.51%
 CMBS                  4.72%           5.42%           4.73%        5.50%
 Residential Loans     3.41%           n/a             3.38%        n/a
 Commercial loans      11.21%          n/a             11.21%       n/a
 Average MBS           3.25%           3.57%           3.23%        3.66%
 portfolio
 Average
 Borrowings*:
    Agency RMBS        13,185,918      10,862,133      13,063,927   10,590,714
    Non-Agency RMBS    2,815,765       1,667,755       2,669,977    1,727,824
    CMBS               1,989,660       919,852         1,832,302    894,978
    Exchangeable       400,000         -               242,222      -
    senior notes
    Asset-backed
    securities         747,883         -               382,257      -
    issued
 Total borrowed        19,139,226      13,449,740      18,190,685   13,213,516
 funds
 Maximum borrowings
 during the period     19,710,901      13,799,710      19,710,901   13,799,710
 (2)
 Average Cost of
 Funds (3):
    Agency RMBS        0.40%           0.36%           0.41%        0.34%
    Non-Agency RMBS    1.54%           1.77%           1.63%        1.79%
    CMBS               1.44%           1.54%           1.46%        1.56%
    Exchangeable       5.62%           n/a             5.60%        n/a
    senior notes
    Asset-backed
    securities         2.88%           n/a             2.85%        n/a
    issued
    Unhedged cost of   0.88%           0.62%           0.81%        0.62%
    funds
    Hedged cost of     1.66%           1.69%           1.62%        1.69%
    funds
 Average Equity (4):   2,774,374       2,171,664       2,743,484    2,127,086
 Average debt/equity
 ratio (average        6.90x           6.19x           6.63x        6.21x
 during period)
 Debt/equity ratio     7.63x           6.30x           7.63x        6.30x
 (as of period end)
 * Average amounts for each period are based on weighted month-end balances;
 all percentages are annualized. For the three and six months

 ended June 30, 2013, the average balances are presented on an amortized cost
 basis. The three and six months ended June 30, 2012 has been

 reclassified for comparative purposes.
 (1) Average portfolio yield for the period was calculated by dividing
 interest income, including amortization of premiums and discounts, by

 our average of the amortized cost of the investments. All yields are
 annualized.
 (2) Amount represents the maximum borrowings at month-end during each of the
 respective periods.
 (3) Average cost of funds is calculated by dividing annualized interest
 expense by our average borrowings.
 (4) Average equity is calculated based on a weighted balance basis.





SOURCE Invesco Mortgage Capital Inc.

Website: http://www.invescomortgagecapital.com
Contact: Bill Hensel, 404-479-2886
 
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