Invesco Mortgage Capital Inc. Reports Third Quarter 2013 Financial Results

  Invesco Mortgage Capital Inc. Reports Third Quarter 2013 Financial Results

Net loss of $8.7 million or $(0.06) per common share

Core earnings of $67.5 million or $0.50 per common share *

Book Value of $17.64 per common share

PR Newswire

ATLANTA, Oct. 28, 2013

ATLANTA, Oct. 28, 2013 /PRNewswire/ --Invesco Mortgage Capital Inc. (NYSE:
IVR) (the "Company") today announced results for the quarter ended September
30, 2013.

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

"During the third quarter, we continued to strengthen our portfolio by
reducing interest rate risk and reliance on short term borrowings," said
Richard King, President and CEO. "Core earnings were $0.50 per share in Q3
which matched our dividend. We offset realized gains from the second quarter
to reposition our portfolio to benefit from an improving credit environment in
residential and commercial real estate."



($ in millions, except per share amounts)
                                            Q3 '13      Q2 '13
                                            (unaudited) (unaudited)
Average earning assets (at amortized costs) $20,452.7   $21,614.6
Average borrowed funds                      18,150.6    19,139.2
Average equity                              $2,426.3    $2,774.4
Interest income                             $171.3      $175.7
Interest expense                            89.6        79.5
Net interest income                         81.7        96.2
Other income (loss)                         (74.5)      61.3
Operating expenses                          13.2        13.9
Net income (loss)                           (6.0)       143.1
Preferred dividend                          2.7         2.7
Net income (loss) after preferred dividend  $(8.7)      $140.3
Average portfolio yield                     3.35%       3.25%
Average cost of funds                       1.97%       1.66%
Debt to equity ratio                        6.9         7.6
Return on average equity                    (1.44)%     20.23%
Book value per common share (diluted)       $17.64      $17.88
Earnings (loss) per common share (basic)    $(0.06)     $1.03
Core earnings per common share *            $0.50       $0.59
Dividend per common share              $0.50       $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

During the third quarter, the Company continued to reduce exposure to interest
rate risk and sold agency mortgage-backed securities ("MBS") that resulted in
a loss on sale of $69.3 million or $0.51 per share compared to a net gain of
$5.7 million or $0.04 per share in the second quarter. In addition, the
Company sold interest rate swaptions realizing a gain of $39.1 million or
$0.29 per share in the third quarter compared to $27.2 million or $0.20 per
share in the second quarter. The Company had unrealized losses on its hedging
portfolio that flow through earnings of $46.0 million or $0.34 per share for
the quarter ended September 30, 2013 compared to an unrealized gain of $26.2
million or $0.19 per share for the quarter ended June 30, 2013.

As of September 30, 2013, the Company's MBS portfolio was $18.8 billion, a
decrease of $1.0 billion from June 30, 2013. For the quarter ended September
30, 2013, average earning assets were $20.5 billion, representing a decrease
of $1.1 billion from June 30, 2013. The portfolio generated interest income
of $171.3 million during the three months ended September 30, 2013, which
reflects a decrease of $4.4 million from the three months ended June 30,
2013.

For the quarter ended September 30, 2013, the Company had average borrowings
of approximately $18.2 billion and interest expense, including cost of
hedging, of $89.6 million, compared to $19.1 billion and $79.5 million,
respectively, for the second quarter of 2013. Our average cost of funds was
1.97% and 1.66% for the third quarter and second quarter, respectively.

Operating expenses for the third quarter of 2013 totalled $13.2 million,
compared to $13.9 million for the second quarter. The ratio of operating
expenses to average equity for the third quarter was 2.18%, which was an
increase of 18 basis points from the second quarter.

The Company declared a common stock dividend of $0.50 per share for the third
quarter of 2013. The dividend was paid on October 28, 2013.

The Company declared a preferred stock dividend of $0.4844 per share for the
third quarter of 2013. The dividend was paid on October 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 firm.

Earnings Call

Members of the investment community and the general public are invited to
listen to the Company's earnings conference call on Tuesday, October 29, 2013,
at 8:30 a.m. ET, by calling one of the following numbers:

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

An audio replay will be available until 5:00 pm ET on November 12, 2013 by
calling:

866-475-8038 (North America) or 203-369-1511 (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   Nine Months Ended
                                      September 30,        September 30,
$ in thousands, except per share data 2013       2012      2013       2012
  Interest income
  Mortgage-backed securities           157,539    140,477   486,619    421,442
  Residential loans                    13,417     -         20,443     -
  Commercial loans                     372        -         432        -
        Total interest income          171,328    140,477   507,494    421,442
  Interest expense
  Repurchase agreements                73,695     60,327    208,487    172,312
  Exchangeable senior note             5,621      -         12,403     -
  Asset-backed securities issued       10,266     -         15,722     -
        Total interest expense         89,582     60,327    236,612    172,312
  Net interest income                  81,746     80,150    270,882    249,130
  Provision for loan losses            87         -         751        -
  Net interest income after provision  81,659     80,150    270,131    249,130
  for loan losses
  Other income (loss)
  Gain (loss) on sale of investments,  (69,323)   12,836    (56,919)   24,978
  net
  Equity in earnings and fair value
  change in unconsolidated
        ventures                       1,422      3,262     5,169      6,231
  Realized and unrealized gain (loss)
  on interest rate derivative          (6,887)    (808)     44,424     (2,851)
  instruments
  Realized and unrealized credit       297        1,348     828        2,694
  default swap income
  Total other income (loss)            (74,491)   16,638    (6,498)    31,052
  Expenses
  Management fee – related party       10,945     9,053     32,106     26,372
  General and administrative           2,259      959       6,845      3,132
  Total expenses                       13,204     10,012    38,951     29,504
  Net income (loss)                    (6,036)    86,776    224,682    250,678
  Net income (loss) attributable to    (63)       1,026     2,392      3,025
  non-controlling interest
  Net income (loss) attributable to    (5,973)    85,750    222,290    247,653
  Invesco Mortgage Capital Inc.
  Dividends to preferred shareholders  2,713      2,682     8,138      2,682
  Net income (loss) attributable to    (8,686)    83,068    214,152    244,971
  common shareholders
  Earnings (loss) per share:
  Net income (loss) attributable to
  common shareholders
                     Basic             (0.06)     0.72      1.61       2.12
                     Diluted           (0.06)     0.72      1.56       2.12
  Dividends declared per common share  0.50       0.65      1.80       1.95





INVESCO MORTGAGE CAPITAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
$ in thousands, except per share amounts           As of
                                                   September 30,  December 31,
ASSETS                                             2013           2012
                                                   (Unaudited)
Mortgage-backed securities, at fair value            18,811,679     18,470,563
Residential loans, held-for-investment, net of       1,532,389      -
loan loss reserve
Commercial loans, held-for-investment, net of loan   17,388         -
loss reserve
Cash and cash equivalents                            199,095        286,474
Due from counterparties                              8,119          -
Investment related receivable                        8,912          41,429
Investments in unconsolidated ventures, at fair      42,276         35,301
value
Accrued interest receivable                          71,198         62,977
Derivative assets, at fair value                     188,509        6,469
Deferred securitization and financing costs          14,033         -
Other investments                                    10,000         10,000
Other assets                                         1,883          1,547
   Total assets (1)                                  20,905,481     18,914,760
LIABILITIES AND EQUITY
Liabilities:
Repurchase agreements                                15,897,612     15,720,460
Asset-backed securities issued                       1,411,897      -
Exchangeable senior notes                            400,000        -
Derivative liability, at fair value                  316,670        436,440
Dividends and distributions payable                  71,037         79,165
Investment related payable                           201,203        63,715
Accrued interest payable                             19,554         15,275
Collateral held payable                              21,045         -
Accounts payable and accrued expenses                3,885          877
Due to affiliate                                     11,457         9,308
   Total liabilities (1)                             18,354,360     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 September 30, 2013
   and December 31, 2012, respectively               135,356        135,362
Common Stock: par value $0.01 per share,
450,000,000 shares
   authorized; 135,224,162 and 116,195,500 shares
   issued and
   outstanding at September 30, 2013 and December    1,352          1,162
   31, 2012, respectively
Additional paid in capital                           2,712,790      2,316,290
Accumulated other comprehensive income (loss)        (315,469)      86,436
Retained earnings (distributions in excess of        (9,912)        18,848
earnings)
   Total shareholders' equity                        2,524,117      2,558,098
Non-controlling interest                             27,004         31,422
   Total equity                                      2,551,121      2,589,520
   Total liabilities and equity                      20,905,481     18,914,760

 (1) Our consolidated balance sheets include assets of consolidated variable
 interest entities ("VIEs") that can only be used to settle obligations and
 liabilities 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
 September
 30, 2013 and December 31, 2012, total assets of the consolidated VIEs were
 $1,540,150 and $0, respectively, and total liabilities of the consolidated
 VIEs were
 $1,415,784 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 derivative instruments. 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 and futures 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   Nine Months ended
                                    September 30,         September 30,
$ in thousands, except per share    2013       2012       2013       2012
data
 Net income (loss) attributable to   (8,686)    83,068     214,152    244,971
 common shareholders
 Adjustments
  (Gain) loss on sale of         69,323     (12,836)   56,919     (24,978)
 investments, net
 Realized gain on
 interest rate derivative            (39,075)   -          (66,234)   -
 instruments
  Unrealized loss on interest   45,962     808        21,810     2,851
 rate derivative instruments (1)
 Total adjustments                   76,210     (12,028)   12,495     (22,127)
 Core earnings                       67,524     71,040     226,647    222,844
 Basic earnings per common share     (0.06)     0.72       1.61       2.12
 Core earnings per share
 attributable to common              0.50       0.62       1.70       1.93
 shareholders



    Unrealized (gain) loss on interest rate derivative instruments for the
    three and nine months ended September 30, 2013 include adjustments for
(1) unrealized losses
    of $3.4 million attributed to short U.S. Treasury futures contracts the
    Company began purchasing during the three months ended September 30,
    2013.

Mortgage-Backed Securities

The following table summarizes certain characteristics of the Company's MBS
portfolio as of September 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        1,722,520   89,091       1,811,611   28,193      1,839,804   4.02 ^  %  2.24 ^ %  2.35 ^  %
 fixed-rate ^
 30 year        8,689,193   579,210      9,268,403   (246,644)   9,021,759   3.95 ^  %  2.64 ^ %  2.84 ^  %
 fixed-rate ^
 ARM ^          197,033     (468)        196,565     1,335       197,900     2.73 ^  %  2.55 ^ %  2.41 ^  %
 Hybrid ARM ^   977,583     (3,512)      974,071     3,236       977,307     2.56 ^  %  2.39 ^ %  2.19 ^  %
    Total
    Agency      11,586,329  664,321      12,250,650  (213,880)   12,036,770  3.82 ^  %  2.56 ^ %  2.73 ^  %
    pass-
    through ^
 Agency-CMO^(4) 1,491,381   (1,004,321)  487,060     (4,416)     482,644     2.80 ^  %  3.16 ^ %  2.31 ^  %
 Non-Agency     4,344,281   (646,859)    3,697,422   11,589      3,709,011   3.67 ^  %  3.76 ^ %  4.63 ^  %
 RMBS^(5)
 CMBS^(6)       4,585,928   (2,027,009)  2,558,919   24,335      2,583,254   3.50 ^  %  4.68 ^ %  4.60 ^  %
Total ^         22,007,919  (3,013,868)  18,994,051  (182,372)   18,811,679  3.66 ^  %  3.10 ^ %  3.34 ^  %
(1) Net weighted average coupon ("WAC") as of September 30, 2013 is presented net of servicing and
other fees. ^
(2) Average yield based on amortized costs as of September 30, 2013 and incorporates future
prepayment and loss assumptions. ^
(3) Average yield based on average amortized costs for the three months ended September 30, 2013
and incorporates future prepayment and loss assumptions. ^
(4) Included in the Agency-CMO are interest-only securities which represent 16.4% of the balance
based on fair value. ^
(5) The non-Agency RMBS held by the Company is 61.0% variable rate, 34.3% fixed rate, and 4.7%
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 8.0% and 1.8% 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 13.1 and 12.6 for the three
months ended September 30, 2013 and June 30, 2013, respectively. The table
below shows the three month CPR for our RMBS compared to bonds with similar
characteristics ("Cohorts").

                       September 30, 2013  June 30, 2013
                       Company    Cohorts  Company  Cohorts
15 year Agency RMBS    15.9       23.9     19.5     27.8
30 year Agency RMBS    10.1       14.2     9.5      15.8
Agency Hybrid ARM RMBS 18.1       NA       22.8     NA
Non-Agency RMBS        17.3       NA       15.5     NA
Weighted average       13.1       NA       12.6     NA

Borrowings

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

 $ in           September 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    10,958,730  0.37     %  18          11,713,565  0.48     %  16
 Non-Agency     2,995,413   1.55     %  33          2,450,960   1.75     %  23
 RMBS
 CMBS           1,943,469   1.42     %  21          1,555,935   1.51     %  18
 Exchangeable   400,000     5.00     %  1,627       -           -        %  -
 Senior Notes
 Total          16,297,612  0.83     %  60          15,720,460  0.78     %  17

*Excludes consolidated asset-backed securities issued

Interest Rate Hedges

The following table summarizes our interest rate derivatives outstanding,
which were designated as cash flow hedges of interest rate risk, as of
September 30, 2013:

$ in thousands                                                Fixed 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, N.A.            100,000     7/15/2015       2.85%
Wells Fargo Bank, N.A.            50,000      7/15/2015       2.44%
Morgan Stanley Capital            300,000     1/24/2016       2.12%
Services, LLC
The Bank of New York              300,000     1/24/2016       2.13%
Mellon
Morgan Stanley Capital            300,000     4/5/2016        2.48%
Services, 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, N.A.         500,000     5/16/2016       2.31%
Goldman Sachs Bank USA            500,000     5/24/2016       2.34%
Goldman Sachs Bank USA            250,000     6/15/2016       2.67%
Wells Fargo Bank, N.A.            250,000     6/15/2016       2.67%
JPMorgan Chase Bank, N.A.         500,000     6/24/2016       2.51%
Citibank, N.A.                    500,000     10/15/2016      1.93%
Deutsche Bank AG                  150,000     2/5/2018        2.90%
ING Capital Markets LLC           350,000     2/24/2018       0.95%
Morgan Stanley Capital            100,000     4/5/2018        3.10%
Services, LLC
ING Capital Markets LLC           300,000     5/5/2018        0.79%
JPMorgan Chase Bank, N.A.         200,000     5/15/2018       2.93%
UBS AG                            500,000     5/24/2018       1.10%
ING Capital Markets LLC           400,000     6/5/2018        0.87%
The Royal Bank of Scotland        500,000     9/5/2018        1.04%
Plc
CME Clearing House         (5)(6) 300,000     2/5/2021        2.50%
CME Clearing House         (5)(6) 300,000     2/5/2021        2.69%
Wells Fargo Bank, N.A.            200,000     3/15/2021       3.14%
Citibank, N.A.                    200,000     5/25/2021       2.83%
HSBC Bank USA, National    (3)    550,000     2/24/2022       2.45%
Association
The Royal Bank of Scotland (4)    400,000     3/15/2023       2.39%
Plc
UBS AG                     (4)    400,000     3/15/2023       2.51%
HSBC Bank USA, National           250,000     6/5/2023        1.91%
Association
HSBC Bank USA, National           250,000     7/5/2023        1.97%
Association
The Royal Bank of Scotland        500,000     8/15/2023       1.98%
Plc
CME Clearing House         (6)    600,000     8/24/2023       2.88%
UBS AG                     (1)    250,000     11/15/2023      2.23%
HSBC Bank USA, National    (2)    500,000     12/15/2023      2.20%
Association
Total                             12,800,000                  2.12%



(1) Forward start date of November 2013
(2) Forward start date of December 2013
(3) Forward start date of February 2015
(4) Forward start date of March 2015
(5) Forward start date of February 2016
(6) 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 nine
months ended September 30, 2013 and 2012:

                      Three Months ended              Nine Months ended
                      September 30,                   September 30,
 $ in thousands       2013            2012            2013         2012
 Average Balances*:
 Agency RMBS:
     15 year
     fixed-rate, at     1,849,443       2,262,090      1,947,324    2,365,084
     amortized cost
     30 year
     fixed-rate, at     9,679,520       9,244,544      10,894,824   7,969,201
     amortized cost
     ARM, at            102,828         136,990        89,832       161,715
     amortized cost
     Hybrid ARM, at     578,696         796,446        518,079      1,175,280
     amortized cost
     MBS-CMO, at        494,089         502,646        500,781      450,419
     amortized cost
 Non-Agency RMBS, at    3,662,796       2,496,031      3,574,810    2,391,076
 amortized cost
 CMBS, at amortized     2,533,174       1,516,371      2,362,370    1,329,005
 cost
 Residential Loans,     1,538,830       -              793,814      -
 at amortized cost
 Commercial Loans, at   13,312          -              8,971        -
 amortized cost
 Average MBS and
 Residential Loans      20,452,688      16,955,118     20,690,805   15,841,780
 portfolio
 Average Portfolio
 Yields (1):
 Agency RMBS:
     15 year            2.35%           2.40%          2.23%        2.60%
     fixed-rate
     30 year            2.84%           2.92%          2.82%        3.22%
     fixed-rate
     ARM                2.41%           2.75%          2.31%        2.63%
     Hybrid ARM         2.19%           2.61%          2.30%        2.67%
     MBS - CMO          2.31%           2.22%          1.87%        2.21%
 Non-Agency RMBS        4.63%           4.91%          4.60%        5.30%
 CMBS                   4.60%           5.24%          4.68%        5.41%
 Residential Loans      3.46%           n/a            3.31%        n/a
 Commercial loans       10.76%          n/a            10.97%       n/a
 Average MBS            3.35%           3.31%          3.27%        3.55%
 portfolio
 Average Borrowings*:
     Agency RMBS        11,378,486      11,452,398     12,502,114   10,884,302
     Non-Agency RMBS    2,990,502       1,842,351      2,776,819    1,767,130
     CMBS               1,963,525       1,145,575      1,876,043    980,341
     Exchangeable       400,000         -              294,815      -
     senior notes
     Asset-backed
     securities         1,418,084       -              727,533      -
     issued
 Total borrowed funds   18,150,597      14,440,324     18,177,324   13,631,773
 Maximum borrowings
 during the period      18,460,059      14,890,062     19,710,901   14,890,062
 (2)
 Average Cost of
 Funds (3):
     Agency RMBS        0.39%           0.41%          0.40%        0.37%
     Non-Agency RMBS    1.58%           1.77%          1.61%        1.78%
     CMBS               1.47%           1.59%          1.46%        1.57%
     Exchangeable       5.62%           n/a            5.61%        n/a
     senior notes
     Asset-backed
     securities         2.90%           n/a            2.88%        n/a
     issued
     Unhedged cost of   1.01%           0.68%          0.88%        0.64%
     funds
     Hedged cost of     1.97%           1.67%          1.74%        1.69%
     funds
 Average Equity (4):    2,426,259       2,329,921      2,636,580    2,198,633
 Average debt/equity
 ratio (average         7.48x           6.20x          6.89x        6.20x
 during period)
 Debt/equity ratio      6.94x           5.75x          6.95x        5.75x
 (as of period end)
 * Average amounts for each period are based on weighted month-end balances;
 all percentages are annualized. For the three and nine months ended
 September 30, 2013, the average balances are presented on an amortized cost
 basis.
 (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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