Iowa | 001-31911 | 42-1447959 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
6000 Westown Parkway, West Des Moines, Iowa | 50266 |
(Address of Principal Executive Offices) | (Zip Code) |
AMERICAN EQUITY | |||
INVESTMENT LIFE HOLDING COMPANY | |||
By: | /s/ John M. Matovina | ||
John M. Matovina | |||
Chief Executive Officer and President | |||
For more information, contact: | ||
Steven D. Schwartz, Vice President-Investor Relations | ||
(515) 273-3763, sschwartz@american-equity.com | ||
FOR IMMEDIATE RELEASE | ||
August 6, 2018 |
• | Second quarter 2018 net income of $93.9 million or $1.03 per diluted common share |
• | Second quarter 2018 non-GAAP operating income1 of $86.6 million or $0.95 per diluted common share |
• | Second quarter 2018 annuity sales of $1.2 billion |
• | Policyholder funds under management of $49.9 billion |
• | Second quarter 2018 investment spread of 2.64% |
• | Estimated risk-based capital ratio of 384% compared to 378% at December 31, 2017 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Premiums and other considerations | $ | 5,757 | $ | 7,720 | $ | 14,810 | $ | 17,122 | |||||||
Annuity product charges | 55,006 | 48,603 | 105,729 | 92,175 | |||||||||||
Net investment income | 533,282 | 493,489 | 1,044,066 | 979,086 | |||||||||||
Change in fair value of derivatives | 132,205 | 266,820 | (318,878 | ) | 653,353 | ||||||||||
Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses | (38,381 | ) | 3,873 | (38,079 | ) | 6,211 | |||||||||
OTTI losses on investments: | |||||||||||||||
Total OTTI losses | (745 | ) | — | (1,652 | ) | — | |||||||||
Portion of OTTI losses recognized in (from) other comprehensive income | (1,651 | ) | (949 | ) | (1,651 | ) | (1,090 | ) | |||||||
Net OTTI losses recognized in operations | (2,396 | ) | (949 | ) | (3,303 | ) | (1,090 | ) | |||||||
Loss on extinguishment of debt | — | (428 | ) | — | (428 | ) | |||||||||
Total revenues | 685,473 | 819,128 | 804,345 | 1,746,429 | |||||||||||
Benefits and expenses: | |||||||||||||||
Insurance policy benefits and change in future policy benefits | 9,276 | 9,986 | 21,370 | 21,861 | |||||||||||
Interest sensitive and index product benefits | 427,951 | 472,596 | 942,046 | 891,735 | |||||||||||
Amortization of deferred sales inducements | 78,112 | 33,695 | 178,535 | 96,020 | |||||||||||
Change in fair value of embedded derivatives | (101,949 | ) | 174,973 | (969,181 | ) | 399,143 | |||||||||
Interest expense on notes and loan payable | 6,374 | 8,678 | 12,746 | 16,400 | |||||||||||
Interest expense on subordinated debentures | 3,878 | 3,422 | 7,508 | 6,758 | |||||||||||
Amortization of deferred policy acquisition costs | 115,049 | 49,547 | 255,688 | 139,225 | |||||||||||
Other operating costs and expenses | 32,540 | 25,964 | 63,780 | 53,543 | |||||||||||
Total benefits and expenses | 571,231 | 778,861 | 512,492 | 1,624,685 | |||||||||||
Income before income taxes | 114,242 | 40,267 | 291,853 | 121,744 | |||||||||||
Income tax expense | 20,339 | 13,321 | 56,988 | 40,859 | |||||||||||
Net income | $ | 93,903 | $ | 26,946 | $ | 234,865 | $ | 80,885 | |||||||
Earnings per common share | $ | 1.04 | $ | 0.30 | $ | 2.60 | $ | 0.91 | |||||||
Earnings per common share - assuming dilution | $ | 1.03 | $ | 0.30 | $ | 2.58 | $ | 0.90 | |||||||
Weighted average common shares outstanding (in thousands): | |||||||||||||||
Earnings per common share | 90,327 | 88,897 | 90,173 | 88,773 | |||||||||||
Earnings per common share - assuming dilution | 91,271 | 90,112 | 91,206 | 90,045 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 93,903 | $ | 26,946 | $ | 234,865 | $ | 80,885 | |||||||
Adjustments to arrive at non-GAAP operating income: (a) | |||||||||||||||
Net realized investment (gains) losses, including OTTI | 25,624 | (1,559 | ) | 25,647 | (3,501 | ) | |||||||||
Change in fair value of derivatives and embedded derivatives - fixed index annuities | (30,094 | ) | 57,571 | (108,912 | ) | 68,548 | |||||||||
Change in fair value of derivatives - debt | (739 | ) | 465 | (2,571 | ) | 218 | |||||||||
Income taxes | (2,046 | ) | (19,741 | ) | 15,313 | (22,846 | ) | ||||||||
Non-GAAP operating income | $ | 86,648 | $ | 63,682 | $ | 164,342 | $ | 123,304 | |||||||
Per common share - assuming dilution: | |||||||||||||||
Net income | $ | 1.03 | $ | 0.30 | $ | 2.58 | $ | 0.90 | |||||||
Adjustments to arrive at non-GAAP operating income: | |||||||||||||||
Net realized investment (gains) losses, including OTTI | 0.28 | (0.02 | ) | 0.28 | (0.04 | ) | |||||||||
Change in fair value of derivatives and embedded derivatives - fixed index annuities | (0.33 | ) | 0.64 | (1.19 | ) | 0.76 | |||||||||
Change in fair value of derivatives - debt | (0.01 | ) | 0.01 | (0.03 | ) | — | |||||||||
Income taxes | (0.02 | ) | (0.22 | ) | 0.16 | (0.25 | ) | ||||||||
Non-GAAP operating income | $ | 0.95 | $ | 0.71 | $ | 1.80 | $ | 1.37 |
(a) | Adjustments to net income to arrive at non-GAAP operating income are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) where applicable. |
Twelve Months Ended | |||
June 30, 2018 | |||
Average Stockholders' Equity | |||
Average equity including average AOCI | $ | 2,539,117 | |
Average AOCI | (395,264 | ) | |
Average equity excluding average AOCI | $ | 2,143,853 | |
Net income | $ | 328,625 | |
Non-GAAP operating income | 326,088 | ||
Return on Average Equity Excluding Average AOCI | |||
Net income | 15.33 | % | |
Non-GAAP operating income | 15.21 | % |
A. | Financial Highlights | |
Non-GAAP Financial Measures | ||
B. | Product Summary | |
C. | Investment Summary | |
D. | ||
E. |
June 30, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Investments: | |||||||
Fixed maturity securities: | |||||||
Available for sale, at fair value | $ | 44,799,370 | $ | 45,372,989 | |||
Held for investment, at amortized cost | 77,155 | 77,041 | |||||
Mortgage loans on real estate | 2,794,382 | 2,665,531 | |||||
Derivative instruments | 847,243 | 1,568,380 | |||||
Other investments | 508,932 | 616,764 | |||||
Total investments | 49,027,082 | 50,300,705 | |||||
Cash and cash equivalents | 1,259,722 | 1,434,045 | |||||
Coinsurance deposits | 4,936,037 | 4,858,289 | |||||
Accrued investment income | 447,550 | 429,008 | |||||
Deferred policy acquisition costs | 3,210,749 | 2,714,523 | |||||
Deferred sales inducements | 2,324,912 | 2,001,892 | |||||
Deferred income taxes | 221,632 | 38,147 | |||||
Income taxes recoverable | 31,313 | — | |||||
Other assets | 168,506 | 254,127 | |||||
Total assets | $ | 61,627,503 | $ | 62,030,736 | |||
Liabilities and Stockholders' Equity | |||||||
Liabilities: | |||||||
Policy benefit reserves | $ | 56,859,540 | $ | 56,142,673 | |||
Other policy funds and contract claims | 276,768 | 282,884 | |||||
Notes payable | 494,339 | 494,093 | |||||
Subordinated debentures | 242,770 | 242,565 | |||||
Income taxes payable | — | 34,285 | |||||
Other liabilities | 1,327,261 | 1,984,079 | |||||
Total liabilities | 59,200,678 | 59,180,579 | |||||
Stockholders' equity: | |||||||
Common stock | 90,233 | 89,331 | |||||
Additional paid-in capital | 804,094 | 791,446 | |||||
Accumulated other comprehensive income | 180,406 | 724,599 | |||||
Retained earnings | 1,352,092 | 1,244,781 | |||||
Total stockholders' equity | 2,426,825 | 2,850,157 | |||||
Total liabilities and stockholders' equity | $ | 61,627,503 | $ | 62,030,736 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Premiums and other considerations | $ | 5,757 | $ | 7,720 | $ | 14,810 | $ | 17,122 | |||||||
Annuity product charges | 55,006 | 48,603 | 105,729 | 92,175 | |||||||||||
Net investment income | 533,282 | 493,489 | 1,044,066 | 979,086 | |||||||||||
Change in fair value of derivatives | 132,205 | 266,820 | (318,878 | ) | 653,353 | ||||||||||
Net realized gains (losses) on investments, excluding other than temporary impairment ("OTTI") losses | (38,381 | ) | 3,873 | (38,079 | ) | 6,211 | |||||||||
OTTI losses on investments: | |||||||||||||||
Total OTTI losses | (745 | ) | — | (1,652 | ) | — | |||||||||
Portion of OTTI losses recognized in (from) other comprehensive income | (1,651 | ) | (949 | ) | (1,651 | ) | (1,090 | ) | |||||||
Net OTTI losses recognized in operations | (2,396 | ) | (949 | ) | (3,303 | ) | (1,090 | ) | |||||||
Loss on extinguishment of debt | — | (428 | ) | — | (428 | ) | |||||||||
Total revenues | 685,473 | 819,128 | 804,345 | 1,746,429 | |||||||||||
Benefits and expenses: | |||||||||||||||
Insurance policy benefits and change in future policy benefits | 9,276 | 9,986 | 21,370 | 21,861 | |||||||||||
Interest sensitive and index product benefits | 427,951 | 472,596 | 942,046 | 891,735 | |||||||||||
Amortization of deferred sales inducements | 78,112 | 33,695 | 178,535 | 96,020 | |||||||||||
Change in fair value of embedded derivatives | (101,949 | ) | 174,973 | (969,181 | ) | 399,143 | |||||||||
Interest expense on notes and loan payable | 6,374 | 8,678 | 12,746 | 16,400 | |||||||||||
Interest expense on subordinated debentures | 3,878 | 3,422 | 7,508 | 6,758 | |||||||||||
Amortization of deferred policy acquisition costs | 115,049 | 49,547 | 255,688 | 139,225 | |||||||||||
Other operating costs and expenses | 32,540 | 25,964 | 63,780 | 53,543 | |||||||||||
Total benefits and expenses | 571,231 | 778,861 | 512,492 | 1,624,685 | |||||||||||
Income before income taxes | 114,242 | 40,267 | 291,853 | 121,744 | |||||||||||
Income tax expense | 20,339 | 13,321 | 56,988 | 40,859 | |||||||||||
Net income | $ | 93,903 | $ | 26,946 | $ | 234,865 | $ | 80,885 | |||||||
Earnings per common share | $ | 1.04 | $ | 0.30 | $ | 2.60 | $ | 0.91 | |||||||
Earnings per common share - assuming dilution | $ | 1.03 | $ | 0.30 | $ | 2.58 | $ | 0.90 | |||||||
Weighted average common shares outstanding (in thousands): | |||||||||||||||
Earnings per common share | 90,327 | 88,897 | 90,173 | 88,773 | |||||||||||
Earnings per common share - assuming dilution | 91,271 | 90,112 | 91,206 | 90,045 |
Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | |||||||||||||||
Revenues: | |||||||||||||||||||
Traditional life insurance premiums | $ | 910 | $ | 972 | $ | 2,989 | $ | 2,832 | $ | 2,590 | |||||||||
Life contingent immediate annuity considerations | 4,847 | 8,081 | 5,548 | 5,737 | 5,130 | ||||||||||||||
Surrender charges | 16,520 | 16,282 | 13,573 | 13,521 | 13,896 | ||||||||||||||
Lifetime income benefit rider fees | 38,486 | 34,441 | 42,815 | 38,410 | 34,707 | ||||||||||||||
Net investment income | 533,282 | 510,784 | 512,709 | 500,202 | 493,489 | ||||||||||||||
Change in fair value of derivatives | 132,205 | (451,083 | ) | 661,993 | 362,525 | 266,820 | |||||||||||||
Net realized gains (losses) on investments, excluding OTTI | (38,381 | ) | 302 | 2,719 | 1,579 | 3,873 | |||||||||||||
Net OTTI losses recognized in operations | (2,396 | ) | (907 | ) | (3,076 | ) | (464 | ) | (949 | ) | |||||||||
Loss on extinguishment of debt (b) | — | — | — | (18,389 | ) | (428 | ) | ||||||||||||
Total revenues | 685,473 | 118,872 | 1,239,270 | 905,953 | 819,128 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Traditional life insurance policy benefits and change in future policy benefits | 981 | 821 | 1,528 | 1,898 | 2,020 | ||||||||||||||
Life contingent immediate annuity benefits and change in future policy benefits | 8,295 | 11,273 | 9,007 | 8,925 | 7,966 | ||||||||||||||
Interest sensitive and index product benefits (c) | 427,951 | 514,095 | 630,905 | 501,028 | 472,596 | ||||||||||||||
Amortization of deferred sales inducements (d) | 78,112 | 100,423 | 65,885 | 14,707 | 33,695 | ||||||||||||||
Change in fair value of embedded derivatives | (101,949 | ) | (867,232 | ) | 290,890 | 229,702 | 174,973 | ||||||||||||
Interest expense on notes and loan payable | 6,374 | 6,372 | 6,371 | 7,597 | 8,678 | ||||||||||||||
Interest expense on subordinated debentures | 3,878 | 3,630 | 3,864 | 3,502 | 3,422 | ||||||||||||||
Amortization of deferred policy acquisition costs (d) | 115,049 | 140,639 | 93,716 | 23,023 | 49,547 | ||||||||||||||
Other operating costs and expenses | 32,540 | 31,240 | 29,366 | 28,782 | 25,964 | ||||||||||||||
Total benefits and expenses | 571,231 | (58,739 | ) | 1,131,532 | 819,164 | 778,861 | |||||||||||||
Income before income taxes | 114,242 | 177,611 | 107,738 | 86,789 | 40,267 | ||||||||||||||
Income tax expense (a) | 20,339 | 36,649 | 70,935 | 29,832 | 13,321 | ||||||||||||||
Net income (a)(b)(c)(d) | $ | 93,903 | $ | 140,962 | $ | 36,803 | $ | 56,957 | $ | 26,946 | |||||||||
Earnings per common share | $ | 1.04 | $ | 1.57 | $ | 0.41 | $ | 0.64 | $ | 0.30 | |||||||||
Earnings per common share - assuming dilution (a)(b)(c)(d) | $ | 1.03 | $ | 1.55 | $ | 0.41 | $ | 0.63 | $ | 0.30 | |||||||||
Weighted average common shares outstanding (thousands): | |||||||||||||||||||
Earnings per common share | 90,327 | 90,017 | 89,308 | 89,069 | 88,897 | ||||||||||||||
Earnings per common share - assuming dilution | 91,271 | 91,139 | 90,727 | 90,421 | 90,112 |
(a) | Q4 2017 includes income tax expense related to the revaluation of our deferred tax assets and liabilities using the newly enacted federal tax rate resulting from the Tax Cuts and Jobs Act of 2017. The change in the federal income tax rate decreased net income and earnings per common share - assuming dilution by $35.9 million and $0.40 per share, respectively. |
(b) | Q3 2017 includes a loss on the extinguishment of our 6.625% Notes due in 2021. The loss decreased net income and earnings per common share - assuming dilution by $10.8 million and $0.12 per share, respectively. |
(c) | Q3 2017 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index product benefits by $21.6 million and decreased net income and earnings per common share - assuming dilution by $13.9 million and $0.15 per share, respectively. |
(d) | Q3 2017 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $34.3 million and $48.2 million, respectively, and increased net income and earnings per common share - assuming dilution by $53.1 million and $0.59 per share, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 93,903 | $ | 26,946 | $ | 234,865 | $ | 80,885 | |||||||
Adjustments to arrive at non-GAAP operating income: (a) | |||||||||||||||
Net realized investment (gains) losses, including OTTI | 25,624 | (1,559 | ) | 25,647 | (3,501 | ) | |||||||||
Change in fair value of derivatives and embedded derivatives - fixed index annuities | (30,094 | ) | 57,571 | (108,912 | ) | 68,548 | |||||||||
Change in fair value of derivatives - debt | (739 | ) | 465 | (2,571 | ) | 218 | |||||||||
Income taxes | (2,046 | ) | (19,741 | ) | 15,313 | (22,846 | ) | ||||||||
Non-GAAP operating income | $ | 86,648 | $ | 63,682 | $ | 164,342 | $ | 123,304 | |||||||
Per common share - assuming dilution: | |||||||||||||||
Net income | $ | 1.03 | $ | 0.30 | $ | 2.58 | $ | 0.90 | |||||||
Adjustments to arrive at non-GAAP operating income: | |||||||||||||||
Net realized investment (gains) losses, including OTTI | 0.28 | (0.02 | ) | 0.28 | (0.04 | ) | |||||||||
Change in fair value of derivatives and embedded derivatives - fixed index annuities | (0.33 | ) | 0.64 | (1.19 | ) | 0.76 | |||||||||
Change in fair value of derivatives - debt | (0.01 | ) | 0.01 | (0.03 | ) | — | |||||||||
Income taxes | (0.02 | ) | (0.22 | ) | 0.16 | (0.25 | ) | ||||||||
Non-GAAP operating income | $ | 0.95 | $ | 0.71 | $ | 1.80 | $ | 1.37 |
(a) | Adjustments to net income to arrive at non-GAAP operating income are presented net of related adjustments to amortization of deferred sales inducements (DSI) and deferred policy acquisition costs (DAC) where applicable. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net realized investment gains and losses, including OTTI: | |||||||||||||||
Net realized (gains) losses on investments, including OTTI | $ | 40,777 | $ | (2,924 | ) | $ | 41,382 | $ | (5,121 | ) | |||||
Amortization of DAC and DSI | (15,153 | ) | 1,365 | (15,735 | ) | 1,620 | |||||||||
Income taxes | (8,716 | ) | 554 | (8,721 | ) | 1,246 | |||||||||
$ | 16,908 | $ | (1,005 | ) | $ | 16,926 | $ | (2,255 | ) | ||||||
Change in fair value of derivatives and embedded derivatives: | |||||||||||||||
Index annuities | $ | (72,469 | ) | $ | 140,283 | $ | (230,280 | ) | $ | 162,726 | |||||
Interest rate caps and swap | (739 | ) | 465 | (2,571 | ) | 218 | |||||||||
Amortization of DAC and DSI | 42,375 | (82,712 | ) | 121,368 | (94,178 | ) | |||||||||
Income taxes | 6,670 | (20,295 | ) | 24,034 | (24,092 | ) | |||||||||
$ | (24,163 | ) | $ | 37,741 | $ | (87,449 | ) | $ | 44,674 |
Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | |||||||||||||||
Net income (b) | $ | 93,903 | $ | 140,962 | $ | 36,803 | $ | 56,957 | $ | 26,946 | |||||||||
Adjustments to arrive at non-GAAP operating income: (a) | |||||||||||||||||||
Net realized investment (gains) losses, including OTTI | 25,624 | 23 | (676 | ) | (916 | ) | (1,559 | ) | |||||||||||
Change in fair value of derivatives and embedded derivatives - fixed index annuities | (30,094 | ) | (78,818 | ) | 5,463 | 47,835 | 57,571 | ||||||||||||
Change in fair value of derivatives - debt | (739 | ) | (1,832 | ) | (1,085 | ) | (357 | ) | 465 | ||||||||||
Income taxes (b) | (2,046 | ) | 17,359 | 34,003 | (16,281 | ) | (19,741 | ) | |||||||||||
Non-GAAP operating income (c)(d)(e) | $ | 86,648 | $ | 77,694 | $ | 74,508 | $ | 87,238 | $ | 63,682 | |||||||||
Per common share - assuming dilution: | |||||||||||||||||||
Net income (b) | $ | 1.03 | $ | 1.55 | $ | 0.41 | $ | 0.63 | $ | 0.30 | |||||||||
Adjustments to arrive at non-GAAP operating income: (a) | |||||||||||||||||||
Net realized investment (gains) losses, including OTTI | 0.28 | — | (0.01 | ) | (0.01 | ) | (0.02 | ) | |||||||||||
Change in fair value of derivatives and embedded derivatives - fixed index annuities | (0.33 | ) | (0.87 | ) | 0.06 | 0.52 | 0.64 | ||||||||||||
Change in fair value of derivatives - debt | (0.01 | ) | (0.02 | ) | (0.01 | ) | — | 0.01 | |||||||||||
Income taxes (b) | (0.02 | ) | 0.19 | 0.37 | (0.18 | ) | (0.22 | ) | |||||||||||
Non-GAAP operating income (c)(d)(e) | $ | 0.95 | $ | 0.85 | $ | 0.82 | $ | 0.96 | $ | 0.71 |
(a) | Adjustments to net income to arrive at non-GAAP operating income are presented net of related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs where applicable. |
(b) | Q4 2017 includes income tax expense related to the revaluation of our deferred tax assets and liabilities using the newly enacted federal tax rate resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform"). The change in the federal income tax rate decreased net income and earnings per common share - assuming dilution by $35.9 million and $0.40 per share, respectively. The impact of Tax Reform has been excluded from non-GAAP operating income. |
(c) | Q3 2017 includes a loss on the extinguishment of our 6.625% Notes due in 2021. The loss decreased non-GAAP operating income and non-GAAP operating income per common share - assuming dilution by $10.8 million and $0.12 per share, respectively |
(d) | Q3 2017 includes a benefit from unlocking which reduced amortization of deferred sales inducements and deferred policy acquisition costs by $31.3 million and $43.7 million, respectively, and increased non-GAAP operating income and non-GAAP operating income per common share- assuming dilution by $48.3 million and $0.53 per share, respectively. |
(e) | Q3 2017 includes expense from the revision of assumptions used in determining reserves held for lifetime income benefit riders. The impact increased interest sensitive and index product benefits by $21.6 million and decreased non-GAAP operating income and non-GAAP operating income per common share - assuming dilution by $13.9 million and $0.15 per share, respectively. |
Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | |||||||||||||||
Net realized (gains) losses on investments | $ | 38,381 | $ | (302 | ) | $ | (2,719 | ) | $ | (1,579 | ) | $ | (3,873 | ) | |||||
Net OTTI losses recognized in operations | 2,396 | 907 | 3,076 | 464 | 949 | ||||||||||||||
Change in fair value of derivatives | 28,741 | 707,589 | (283,801 | ) | (130,150 | ) | (34,225 | ) | |||||||||||
Increase (decrease) in total revenues | 69,518 | 708,194 | (283,444 | ) | (131,265 | ) | (37,149 | ) | |||||||||||
Amortization of deferred sales inducements | (9,888 | ) | (33,212 | ) | 1,499 | 22,442 | 34,550 | ||||||||||||
Change in fair value of embedded derivatives | 101,949 | 867,232 | (290,890 | ) | (229,702 | ) | (174,973 | ) | |||||||||||
Amortization of deferred policy acquisition costs | (17,334 | ) | (45,199 | ) | 2,245 | 29,433 | 46,797 | ||||||||||||
Increase (decrease) in total benefits and expenses | 74,727 | 788,821 | (287,146 | ) | (177,827 | ) | (93,626 | ) | |||||||||||
Increase (decrease) in income before income taxes | (5,209 | ) | (80,627 | ) | 3,702 | 46,562 | 56,477 | ||||||||||||
Increase (decrease) in income tax expense | 2,046 | (17,359 | ) | (34,003 | ) | 16,281 | 19,741 | ||||||||||||
Increase (decrease) in net income | $ | (7,255 | ) | $ | (63,268 | ) | $ | 37,705 | $ | 30,281 | $ | 36,736 |
Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | |||||||||||||||
Capitalization: | |||||||||||||||||||
Notes and loan payable | $ | 500,000 | $ | 500,000 | $ | 500,000 | $ | 500,000 | $ | 900,000 | |||||||||
Subordinated debentures payable to subsidiary trusts | 247,032 | 246,969 | 246,908 | 246,847 | 246,787 | ||||||||||||||
Total debt | 747,032 | 746,969 | 746,908 | 746,847 | 1,146,787 | ||||||||||||||
Total stockholders’ equity | 2,426,825 | 2,546,990 | 2,850,157 | 2,762,667 | 2,651,408 | ||||||||||||||
Total capitalization | 3,173,857 | 3,293,959 | 3,597,065 | 3,509,514 | 3,798,195 | ||||||||||||||
Accumulated other comprehensive income (AOCI) | (180,406 | ) | (399,982 | ) | (724,599 | ) | (659,491 | ) | (610,122 | ) | |||||||||
Total capitalization excluding AOCI (a) | $ | 2,993,451 | $ | 2,893,977 | $ | 2,872,466 | $ | 2,850,023 | $ | 3,188,073 | |||||||||
Total stockholders’ equity | $ | 2,426,825 | $ | 2,546,990 | $ | 2,850,157 | $ | 2,762,667 | $ | 2,651,408 | |||||||||
Accumulated other comprehensive income | (180,406 | ) | (399,982 | ) | (724,599 | ) | (659,491 | ) | (610,122 | ) | |||||||||
Total stockholders’ equity excluding AOCI (a) | $ | 2,246,419 | $ | 2,147,008 | $ | 2,125,558 | $ | 2,103,176 | $ | 2,041,286 | |||||||||
Common shares outstanding | 90,233,346 | 89,983,823 | 89,331,087 | 88,948,986 | 88,756,072 | ||||||||||||||
Book Value per Share: (b) | |||||||||||||||||||
Book value per share including AOCI | $ | 26.89 | $ | 28.30 | $ | 31.91 | $ | 31.06 | $ | 29.87 | |||||||||
Book value per share excluding AOCI (a) | $ | 24.90 | $ | 23.86 | $ | 23.79 | $ | 23.64 | $ | 23.00 | |||||||||
Debt-to-Capital Ratios: (c) | |||||||||||||||||||
Senior debt / Total capitalization | 16.7 | % | 17.3 | % | 17.4 | % | 17.5 | % | 28.2 | % | |||||||||
Adjusted debt / Total capitalization | 16.7 | % | 17.3 | % | 17.4 | % | 17.5 | % | 28.2 | % |
(a) | Total capitalization, total stockholders’ equity and book value per share excluding AOCI, non-GAAP financial measures, are based on stockholders’ equity excluding the effect of AOCI. Since AOCI fluctuates from quarter to quarter due to unrealized changes in the fair value of available for sale investments, we believe these non-GAAP financial measures provide useful supplemental information. |
(b) | Book value per share including and excluding AOCI is calculated as total stockholders’ equity and total stockholders’ equity excluding AOCI divided by the total number of shares of common stock outstanding. |
(c) | Debt-to-capital ratios are computed using total capitalization excluding AOCI. Adjusted debt includes notes and loan payable and the portion of the total subordinated debentures payable to subsidiary trusts outstanding (qualifying trust preferred securities) that exceeds 15% of total capitalization excluding AOCI. |
Six Months Ended June 30, | ||||||||||||
2018 | 2017 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | ||||||
4.42% | 4.46% | Average yield on invested assets | 4.47% | 4.36% | 4.47% | 4.43% | 4.45% | |||||
1.82% | 1.75% | Aggregate cost of money | 1.83% | 1.82% | 1.72% | 1.73% | 1.73% | |||||
2.60% | 2.71% | Aggregate investment spread | 2.64% | 2.54% | 2.75% | 2.70% | 2.72% | |||||
Impact of: | ||||||||||||
0.06% | 0.07% | Investment yield - additional prepayment income | 0.07% | 0.03% | 0.11% | 0.05% | 0.07% | |||||
0.04% | 0.06% | Cost of money effect of over hedging | 0.06% | 0.02% | 0.08% | 0.06% | 0.06% | |||||
$47,346,876 | $43,966,404 | Weighted average investments | $47,795,388 | $46,898,365 | $46,031,966 | $45,228,136 | $44,379,879 |
Six Months Ended June 30, | ||||||||||||||||||||||||||
2018 | 2017 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | ||||||||||||||||||||
Included in interest sensitive and index product benefits: | ||||||||||||||||||||||||||
$ | 758,545 | $ | 693,503 | Index credits | $ | 334,605 | $ | 423,940 | $ | 526,200 | $ | 375,019 | $ | 371,623 | ||||||||||||
107,989 | 128,108 | Interest credited | 52,922 | 55,067 | 59,065 | 62,725 | 62,930 | |||||||||||||||||||
Included in change in fair value of derivatives: | ||||||||||||||||||||||||||
(767,173 | ) | (705,069 | ) | Proceeds received at option expiration | (341,616 | ) | (425,557 | ) | (535,328 | ) | (382,949 | ) | (378,517 | ) | ||||||||||||
349,197 | 287,045 | Pro rata amortization of option cost | 180,465 | 168,732 | 156,782 | 150,163 | 145,502 | |||||||||||||||||||
$ | 448,558 | $ | 403,587 | Cost of money for deferred annuities | $ | 226,376 | $ | 222,182 | $ | 206,719 | $ | 204,958 | $ | 201,538 | ||||||||||||
$ | 49,158,118 | $ | 46,046,068 | Weighted average liability balance outstanding | $ | 49,541,746 | $ | 48,774,490 | $ | 48,014,427 | $ | 47,281,417 | $ | 46,478,748 |
Six Months Ended June 30, | ||||||||||||||||||||||||||
2018 | 2017 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | ||||||||||||||||||||
$ | 48,400,755 | $ | 45,204,015 | Account balances at beginning of period | $ | 49,148,224 | $ | 48,400,755 | $ | 47,628,099 | $ | 46,934,736 | $ | 46,022,759 | ||||||||||||
1,997,591 | 2,063,147 | Net deposits | 1,066,857 | 930,734 | 874,952 | 826,885 | 1,060,638 | |||||||||||||||||||
93,137 | 128,092 | Premium bonuses | 49,467 | 43,670 | 41,098 | 46,982 | 62,848 | |||||||||||||||||||
866,534 | 821,611 | Fixed interest credited and index credits | 387,527 | 479,007 | 585,265 | 437,744 | 434,553 | |||||||||||||||||||
(32,802 | ) | (27,530 | ) | Surrender charges | (16,520 | ) | (16,282 | ) | (13,573 | ) | (13,521 | ) | (13,896 | ) | ||||||||||||
(72,927 | ) | (64,645 | ) | Lifetime income benefit rider fees | (38,486 | ) | (34,441 | ) | (42,815 | ) | (38,410 | ) | (34,707 | ) | ||||||||||||
(1,317,022 | ) | (1,189,954 | ) | Surrenders, withdrawals, deaths, etc. | (661,803 | ) | (655,219 | ) | (672,271 | ) | (566,317 | ) | (597,459 | ) | ||||||||||||
$ | 49,935,266 | $ | 46,934,736 | Account balances at end of period | $ | 49,935,266 | $ | 49,148,224 | $ | 48,400,755 | $ | 47,628,099 | $ | 46,934,736 |
Six Months Ended June 30, | ||||||||||||||||||||||||||
2018 | 2017 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | ||||||||||||||||||||
American Equity: | ||||||||||||||||||||||||||
$ | 1,786,025 | $ | 1,894,727 | Fixed index annuities | $ | 952,675 | $ | 833,350 | $ | 757,160 | $ | 738,257 | $ | 953,560 | ||||||||||||
32,293 | 35,713 | Annual reset fixed rate annuities | 15,803 | 16,490 | 18,974 | 20,142 | 20,870 | |||||||||||||||||||
2,889 | 13,934 | Multi-year fixed rate annuities | 888 | 2,001 | 3,773 | 5,717 | 7,541 | |||||||||||||||||||
15,943 | 10,532 | Single premium immediate annuities | 5,313 | 10,630 | 7,909 | 6,505 | 4,981 | |||||||||||||||||||
1,837,150 | 1,954,906 | 974,679 | 862,471 | 787,816 | 770,621 | 986,952 | ||||||||||||||||||||
Eagle Life: | ||||||||||||||||||||||||||
333,683 | 255,304 | Fixed index annuities | 173,119 | 160,564 | 187,888 | 133,503 | 167,632 | |||||||||||||||||||
61,443 | 43,502 | Multi-year fixed rate annuities | 53,419 | 8,024 | 32,953 | 10,717 | 19,994 | |||||||||||||||||||
395,126 | 298,806 | 226,538 | 168,588 | 220,841 | 144,220 | 187,626 | ||||||||||||||||||||
Consolidated: | ||||||||||||||||||||||||||
2,119,708 | 2,150,031 | Fixed index annuities | 1,125,794 | 993,914 | 945,048 | 871,760 | 1,121,192 | |||||||||||||||||||
32,293 | 35,713 | Annual reset fixed rate annuities | 15,803 | 16,490 | 18,974 | 20,142 | 20,870 | |||||||||||||||||||
64,332 | 57,436 | Multi-year fixed rate annuities | 54,307 | 10,025 | 36,726 | 16,434 | 27,535 | |||||||||||||||||||
15,943 | 10,532 | Single premium immediate annuities | 5,313 | 10,630 | 7,909 | 6,505 | 4,981 | |||||||||||||||||||
2,232,276 | 2,253,712 | Total before coinsurance ceded | 1,201,217 | 1,031,059 | 1,008,657 | 914,841 | 1,174,578 | |||||||||||||||||||
218,742 | 180,033 | Coinsurance ceded | 129,047 | 89,695 | 125,796 | 81,451 | 108,959 | |||||||||||||||||||
$ | 2,013,534 | $ | 2,073,679 | Net after coinsurance ceded | $ | 1,072,170 | $ | 941,364 | $ | 882,861 | $ | 833,390 | $ | 1,065,619 |
Surrender Charge | Net Account Value | ||||||||||||
Product Type | Avg. Years At Issue | Avg. Years Remaining | Avg. % Remaining | Dollars in Thousands | % | ||||||||
Fixed Index Annuities | 13.5 | 8.0 | 12.8% | $ | 47,827,476 | 95.8 | % | ||||||
Annual Reset Fixed Rate Annuities | 10.2 | 4.1 | 7.2% | 1,472,527 | 2.9 | % | |||||||
Multi-Year Fixed Rate Annuities | 6.6 | 2.3 | 5.2% | 635,263 | 1.3 | % | |||||||
Total | 13.3 | 7.8 | 12.6% | $ | 49,935,266 | 100.0 | % |
Surrender Charge Percentages: | Fixed Annuities Account Value | Fixed Index Annuities Account Value | |||||
No surrender charge | $ | 808,497 | $ | 2,405,062 | |||
0.0% < 2.0% | 34,008 | 198,042 | |||||
2.0% < 3.0% | 14,914 | 218,401 | |||||
3.0% < 4.0% | 16,409 | 162,738 | |||||
4.0% < 5.0% | 24,540 | 599,429 | |||||
5.0% < 6.0% | 60,753 | 599,683 | |||||
6.0% < 7.0% | 67,808 | 993,646 | |||||
7.0% < 8.0% | 284,808 | 2,343,301 | |||||
8.0% < 9.0% | 122,119 | 2,567,581 | |||||
9.0% < 10.0% | 44,726 | 3,010,889 | |||||
10.0% or greater | 629,208 | 34,728,704 | |||||
$ | 2,107,790 | $ | 47,827,476 |
Surrender Charge Expiration By Year: | Fixed and Fixed Index Annuities Account Value | Weighted Average Surrender Charge | ||||
Out of Surrender Charge | $ | 3,213,559 | 0.00 | % | ||
2018 | 307,010 | 2.54 | % | |||
2019 | 488,883 | 3.14 | % | |||
2020 | 832,848 | 5.12 | % | |||
2021 | 1,332,350 | 6.80 | % | |||
2022 | 1,935,532 | 8.09 | % | |||
2023 | 4,738,529 | 9.64 | % | |||
2024 | 5,289,941 | 11.23 | % | |||
2025 | 6,064,544 | 11.66 | % | |||
2026 | 5,179,982 | 12.91 | % | |||
2027 | 4,379,924 | 14.38 | % | |||
2028 | 3,437,030 | 15.42 | % | |||
2029 | 2,968,770 | 17.78 | % | |||
2030 | 2,734,084 | 18.33 | % | |||
2031 | 3,313,992 | 18.76 | % | |||
2032 | 2,134,055 | 19.20 | % | |||
2033 | 1,159,929 | 19.68 | % | |||
2034 | 424,304 | 19.96 | % | |||
$ | 49,935,266 | 12.56 | % |
Credited Rate vs. Ultimate Minimum Guaranteed Rate Differential: | Fixed Annuities Account Value | Fixed Index Annuities Account Value | |||||
No differential | $ | 1,004,828 | $ | 1,456,231 | |||
› 0.0% - 0.25% | 60,553 | 237,653 | |||||
› 0.25% - 0.5% | 247,799 | 3,898 | |||||
› 0.5% - 1.0% | 63,786 | 17,739 | |||||
› 1.0% - 1.5% | 11,561 | — | |||||
1.00% ultimate guarantee - 2.45% wtd avg interest rate (a) | 472,626 | 478,583 | |||||
1.50% ultimate guarantee - 1.26% wtd avg interest rate (a) | 156,852 | 3,985,058 | |||||
2.00% ultimate guarantee - 1.86% wtd avg interest rate (a) | 89,785 | — | |||||
2.25% ultimate guarantee - 1.95% wtd avg interest rate (a) | — | 971,391 | |||||
3.00% ultimate guarantee - 2.15% wtd avg interest rate (a) | — | 1,844,556 | |||||
Allocated to index strategies (see tables that follow) | — | 38,832,367 | |||||
$ | 2,107,790 | $ | 47,827,476 |
(a) | The minimum guaranteed interest rate for the fixed rate or the fixed rate strategy is 1.00%. The ultimate guaranteed rate is applied on less than 100% of the premium. |
Annual Monthly Average and Point-to-Point with Caps | |||||||||||||||||||
Minimum Guaranteed Cap | |||||||||||||||||||
1% | 3% | 4% | 7% | 8% + | |||||||||||||||
Current Cap | |||||||||||||||||||
At minimum | $ | 1,586 | $ | 94,625 | $ | 2,641,996 | $ | 82,546 | $ | 195,356 | |||||||||
1.75% - 3% | 6,633,725 | — | — | — | — | ||||||||||||||
3% - 4% | 967,261 | 13,280 | — | — | — | ||||||||||||||
4% - 5% | 471,132 | 192,957 | 4,146,611 | — | — | ||||||||||||||
5% - 6% | 458,843 | 152,026 | 38,901 | — | — | ||||||||||||||
6% - 7% | — | — | 120 | — | — | ||||||||||||||
>= 7% | 1,473 | 7,241 | 809 | 8,016 | 1,199 |
Annual Monthly Average and Point-to-Point with Participation Rates | |||||||||||||||
Minimum Guaranteed Participation Rate | |||||||||||||||
10% | 20% - 25% | 35% | 50% + | ||||||||||||
Current Participation Rate | |||||||||||||||
At minimum | $ | 625 | $ | 413,962 | $ | 123,084 | $ | 140,912 | |||||||
< 20% | 577,852 | — | — | — | |||||||||||
20% - 40% | 921,582 | 182,635 | — | — | |||||||||||
40% - 60% | 1,392,577 | 109,868 | 70,923 | — | |||||||||||
>= 60% | 33,814 | — | — | — |
S&P 500 Monthly Point-to-Point - Minimum Guaranteed Monthly Cap = 1.0% | |||
Current Cap | |||
At minimum | $ | 699,526 | |
1.10% - 1.30% | 5,650,939 | ||
1.40% - 1.60% | 4,605,206 | ||
1.70% - 2.00% | 3,145,118 | ||
>= 2.10% | 1,980 |
Volatility Control Index | |||
Current Asset Fee | |||
At Maximum | $ | — | |
0.75% - 1.75% | 315,281 | ||
2.25% - 2.75% | 923,450 | ||
3.00% - 4.00% | 2,796,088 |
June 30, 2018 | December 31, 2017 | ||||||||||||
Carrying Amount | Percent | Carrying Amount | Percent | ||||||||||
Fixed maturity securities: | |||||||||||||
United States Government full faith and credit | $ | 11,355 | — | % | $ | 11,876 | — | % | |||||
United States Government sponsored agencies | 1,249,440 | 2.6 | % | 1,305,017 | 2.6 | % | |||||||
United States municipalities, states and territories | 4,174,182 | 8.5 | % | 4,166,812 | 8.3 | % | |||||||
Foreign government obligations | 228,613 | 0.5 | % | 239,360 | 0.5 | % | |||||||
Corporate securities | 28,349,687 | 57.8 | % | 29,956,012 | 59.6 | % | |||||||
Residential mortgage backed securities | 1,207,606 | 2.5 | % | 1,105,567 | 2.2 | % | |||||||
Commercial mortgage backed securities | 5,331,174 | 10.9 | % | 5,544,850 | 11.0 | % | |||||||
Other asset backed securities | 4,324,468 | 8.8 | % | 3,120,536 | 6.2 | % | |||||||
Total fixed maturity securities | 44,876,525 | 91.6 | % | 45,450,030 | 90.4 | % | |||||||
Mortgage loans on real estate | 2,794,382 | 5.7 | % | 2,665,531 | 5.3 | % | |||||||
Derivative instruments | 847,243 | 1.7 | % | 1,568,380 | 3.1 | % | |||||||
Other investments | 508,932 | 1.0 | % | 616,764 | 1.2 | % | |||||||
$ | 49,027,082 | 100.0 | % | $ | 50,300,705 | 100.0 | % |
NAIC Designation | Carrying Amount | Percent | Rating Agency Rating | Carrying Amount | Percent | |||||||||||
1 | $ | 27,202,339 | 60.6 | % | Aaa/Aa/A | $ | 26,966,881 | 60.1 | % | |||||||
2 | 16,224,126 | 36.2 | % | Baa | 16,301,175 | 36.3 | % | |||||||||
3 | 1,273,509 | 2.8 | % | Ba | 1,173,399 | 2.6 | % | |||||||||
4 | 150,805 | 0.3 | % | B | 162,138 | 0.4 | % | |||||||||
5 | 17,592 | 0.1 | % | Caa | 146,213 | 0.3 | % | |||||||||
6 | 8,154 | — | % | Ca and lower | 126,719 | 0.3 | % | |||||||||
$ | 44,876,525 | 100.0 | % | $ | 44,876,525 | 100.0 | % |
General Description | Amortized Cost | Unrealized Gains (Losses) | Fair Value | Months Below Amortized Cost | ||||||||||
Below investment grade | ||||||||||||||
Corporate securities: | ||||||||||||||
Consumer discretionary | $ | 25,967 | $ | (5,105 | ) | $ | 20,862 | 7 - 41 | ||||||
Energy | 29,052 | (4,990 | ) | 24,062 | 5 - 46 | |||||||||
Industrials | 2,671 | (596 | ) | 2,075 | 44 | |||||||||
Materials | 3,990 | 1,146 | 5,136 | — | ||||||||||
Other asset backed securities: | ||||||||||||||
Financials | 3,928 | (919 | ) | 3,009 | 61 - 87 | |||||||||
$ | 65,608 | $ | (10,464 | ) | $ | 55,144 |
June 30, 2018 | December 31, 2017 | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Available for sale: | |||||||||||||||
United States Government full faith and credit and sponsored agencies | $ | 1,320,027 | $ | 1,260,795 | $ | 1,320,151 | $ | 1,316,893 | |||||||
United States municipalities, states and territories | 3,914,553 | 4,174,182 | 3,804,360 | 4,166,812 | |||||||||||
Foreign government obligations | 227,542 | 228,613 | 228,214 | 239,360 | |||||||||||
Corporate securities: | |||||||||||||||
Capital goods | 2,377,478 | 2,402,061 | 2,405,102 | 2,570,734 | |||||||||||
Consumer discretionary | 5,635,781 | 5,642,889 | 5,889,227 | 6,232,728 | |||||||||||
Energy | 2,559,474 | 2,553,291 | 2,554,199 | 2,666,172 | |||||||||||
Financials | 5,918,945 | 5,979,708 | 6,004,618 | 6,369,575 | |||||||||||
Industrials | 305,064 | 302,263 | 283,915 | 291,174 | |||||||||||
Information technology | 1,769,810 | 1,786,444 | 1,829,396 | 1,932,131 | |||||||||||
Materials | 1,787,875 | 1,800,788 | 1,801,312 | 1,901,090 | |||||||||||
Other | 988,872 | 1,001,599 | 989,641 | 1,052,676 | |||||||||||
Telecommunications | 1,543,581 | 1,543,530 | 1,461,536 | 1,539,840 | |||||||||||
Transportation | 1,337,305 | 1,337,221 | 1,152,637 | 1,218,964 | |||||||||||
Utilities | 3,791,330 | 3,922,738 | 3,756,070 | 4,103,887 | |||||||||||
Residential mortgage backed securities: | |||||||||||||||
Government agency | 618,692 | 638,028 | 628,320 | 668,641 | |||||||||||
Prime | 409,940 | 425,196 | 269,407 | 282,360 | |||||||||||
Alt-A | 119,106 | 144,382 | 130,757 | 154,566 | |||||||||||
Commercial mortgage backed securities: | |||||||||||||||
Government agency | 490,512 | 478,395 | 554,514 | 564,400 | |||||||||||
Non-agency | 4,935,971 | 4,852,779 | 4,977,408 | 4,980,450 | |||||||||||
Other asset backed securities: | |||||||||||||||
Auto | 235,548 | 236,353 | 298,142 | 299,688 | |||||||||||
Financials | 10,493 | 11,265 | 11,371 | 12,382 | |||||||||||
Industrials | 224,150 | 226,199 | 243,859 | 251,321 | |||||||||||
Collateralized loan obligations | 3,211,840 | 3,204,996 | 1,965,349 | 1,973,877 | |||||||||||
Military housing | 435,711 | 461,732 | 433,840 | 461,452 | |||||||||||
Other | 184,141 | 183,923 | 123,414 | 121,816 | |||||||||||
$ | 44,353,741 | $ | 44,799,370 | $ | 43,116,759 | $ | 45,372,989 | ||||||||
Held for investment: | |||||||||||||||
Corporate security - financials | $ | 77,155 | $ | 68,108 | $ | 77,041 | $ | 76,460 |
June 30, 2018 | December 31, 2017 | |||||||||||||
Principal | Percent | Principal | Percent | |||||||||||
Geographic distribution | ||||||||||||||
East | $ | 593,073 | 21.2 | % | $ | 548,067 | 20.5 | % | ||||||
Middle Atlantic | 165,172 | 5.9 | % | 163,485 | 6.1 | % | ||||||||
Mountain | 329,565 | 11.8 | % | 308,486 | 11.5 | % | ||||||||
New England | 12,026 | 0.4 | % | 12,265 | 0.5 | % | ||||||||
Pacific | 489,126 | 17.5 | % | 466,030 | 17.4 | % | ||||||||
South Atlantic | 645,864 | 23.0 | % | 609,736 | 22.8 | % | ||||||||
West North Central | 315,264 | 11.2 | % | 324,808 | 12.2 | % | ||||||||
West South Central | 251,790 | 9.0 | % | 241,438 | 9.0 | % | ||||||||
$ | 2,801,880 | 100.0 | % | $ | 2,674,315 | 100.0 | % | |||||||
Property type distribution | ||||||||||||||
Office | $ | 275,078 | 9.8 | % | $ | 283,926 | 10.6 | % | ||||||
Medical office | 32,461 | 1.2 | % | 34,338 | 1.3 | % | ||||||||
Retail | 1,047,901 | 37.4 | % | 1,040,028 | 38.9 | % | ||||||||
Industrial/Warehouse | 720,769 | 25.7 | % | 677,770 | 25.3 | % | ||||||||
Apartment | 544,328 | 19.4 | % | 462,897 | 17.3 | % | ||||||||
Mixed use/other | 181,343 | 6.5 | % | 175,356 | 6.6 | % | ||||||||
$ | 2,801,880 | 100.0 | % | $ | 2,674,315 | 100.0 | % | |||||||
June 30, 2018 | December 31, 2017 | |||||||||||||
Credit exposure - by payment activity | ||||||||||||||
Performing | $ | 2,800,526 | $ | 2,670,657 | ||||||||||
In workout | 1,354 | 1,436 | ||||||||||||
Delinquent | — | — | ||||||||||||
Collateral dependent | — | 2,222 | ||||||||||||
2,801,880 | 2,674,315 | |||||||||||||
Specific loan loss allowance | (696 | ) | (1,418 | ) | ||||||||||
General loan loss allowance | (5,630 | ) | (6,100 | ) | ||||||||||
Deferred prepayment fees | (1,172 | ) | (1,266 | ) | ||||||||||
$ | 2,794,382 | $ | 2,665,531 |
High | Low | Close | Dividend Declared | ||||
2018 | |||||||
First Quarter | $35.79 | $28.90 | $29.36 | $0.00 | |||
Second Quarter | $37.16 | $27.06 | $36.00 | $0.00 | |||
2017 | |||||||
First Quarter | $28.00 | $21.66 | $23.63 | $0.00 | |||
Second Quarter | $26.65 | $22.23 | $26.28 | $0.00 | |||
Third Quarter | $29.43 | $25.43 | $29.08 | $0.00 | |||
Fourth Quarter | $32.54 | $28.06 | $30.73 | $0.26 | |||
2016 | |||||||
First Quarter | $23.65 | $12.65 | $16.80 | $0.00 | |||
Second Quarter | $16.96 | $12.77 | $14.25 | $0.00 | |||
Third Quarter | $18.32 | $13.07 | $17.73 | $0.00 | |||
Fourth Quarter | $23.41 | $15.39 | $22.54 | $0.24 |