Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.21.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2021
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Redeemable Preferred Stock
The following is a summary of the Company’s series of cumulative redeemable preferred stock issued and outstanding as of June 30, 2021. In the event of a voluntary or involuntary liquidation, dissolution or winding up of the Company, each series of preferred stock will rank on parity with one another and rank senior to the Company's common stock with respect to the payment of the dividends and the distribution of assets.
(dollars in thousands)
Class of Stock Issuance Date Shares Issued and Outstanding Carrying Value Contractual Rate
Redemption Eligible Date (1)
Fixed to Floating Rate Conversion Date (2)
Floating Annual Rate (3)
Series A March 14, 2017 5,750,000  $ 138,872  8.125  % April 27, 2027 April 27, 2027 3M LIBOR + 5.660%
Series B July 19, 2017 11,500,000  278,094  7.625  % July 27, 2027 July 27, 2027 3M LIBOR + 5.352%
Series C November 27, 2017 11,800,000  285,584  7.250  % January 27, 2025 January 27, 2025 3M LIBOR + 5.011%
Total 29,050,000  $ 702,550 
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(1)Subject to the Company’s right under limited circumstances to redeem the preferred stock earlier than the redemption eligible date disclosed in order to preserve its qualification as a REIT or following a change in control of the Company.
(2)The dividend rate on the fixed-to-floating rate redeemable preferred stock will remain at an annual fixed rate of the $25.00 per share liquidation preference from the issuance date up to but not including the transition date disclosed within. Effective as of the fixed-to-floating rate conversion date and onward, dividends will accumulate on a floating rate basis according to the terms disclosed within (3) below.
(3)On and after the fixed-to-floating rate conversion date, the dividend will accumulate and be payable quarterly at a percentage of the $25.00 per share liquidation preference equal to an annual floating rate of three-month LIBOR plus the spread indicated within each preferred class.

For each series of preferred stock, the Company may redeem the stock on or after the redemption date in whole or in part, at any time or from time to time. The Company may also purchase shares of preferred stock from time to time in the open market by tender or in privately negotiated transactions. Each series of preferred stock has a par value of $0.01 per share and a liquidation and redemption price of $25.00, plus any accumulated and unpaid dividends thereon up to, but excluding, the redemption date. Through June 30, 2021, the Company had declared and paid all required quarterly dividends on the Company’s preferred stock.
On February 4, 2021, the Company announced the redemption of all outstanding shares of the Company’s 7.75% Series D Cumulative Redeemable Preferred Stock and 7.5% Series E Cumulative Redeemable Preferred Stock. The redemption date for each series was March 15, 2021 and holders of record as of such date received the redemption payment of $25.00, plus any accumulated and unpaid dividends thereon up to, but excluding, the redemption date.
Distributions to Preferred Stockholders
The following table presents cash dividends declared by the Company on its preferred stock from December 31, 2019 through June 30, 2021:
Declaration Date Record Date Payment Date Cash Dividend Per Preferred Share
Series A Preferred Stock:
June 17, 2021 July 12, 2021 July 27, 2021 $ 0.507810 
March 18, 2021 April 12, 2021 April 27, 2021 $ 0.507810 
December 17, 2020 January 12, 2021 January 27, 2021 $ 0.507810 
September 21, 2020 October 12, 2020 October 27, 2020 $ 0.507810 
June 18, 2020 July 10, 2020 July 27, 2020 $ 0.507810 
April 6, 2020 April 16, 2020 April 29, 2020 $ 0.507810 
Series B Preferred Stock:
June 17, 2021 July 12, 2021 July 27, 2021 $ 0.476560 
March 18, 2021 April 12, 2021 April 27, 2021 $ 0.476560 
December 17, 2020 January 12, 2021 January 27, 2021 $ 0.476560 
September 21, 2020 October 12, 2020 October 27, 2020 $ 0.476560 
June 18, 2020 July 10, 2020 July 27, 2020 $ 0.476560 
April 6, 2020 April 16, 2020 April 29, 2020 $ 0.476560 
Series C Preferred Stock:
June 17, 2021 July 12, 2021 July 27, 2021 $ 0.453130 
March 18, 2021 April 12, 2021 April 27, 2021 $ 0.453130 
December 17, 2020 January 12, 2021 January 27, 2021 $ 0.453130 
September 21, 2020 October 12, 2020 October 27, 2020 $ 0.453130 
June 18, 2020 July 10, 2020 July 27, 2020 $ 0.453130 
April 6, 2020 April 16, 2020 April 29, 2020 $ 0.453130 
Series D Preferred Stock:
February 4, 2021(1)
March 15, 2021 March 15, 2021 $ 0.322920 
December 17, 2020 January 1, 2021 January 15, 2021 $ 0.484375 
September 21, 2020 October 1, 2020 October 15, 2020 $ 0.484375 
June 18, 2020 July 1, 2020 July 15, 2020 $ 0.484375 
April 6, 2020 April 16, 2020 April 29, 2020 $ 0.484375 
Series E Preferred Stock:
February 4, 2021(1)
March 15, 2021 March 15, 2021 $ 0.312500 
December 17, 2020 January 1, 2021 January 15, 2021 $ 0.468750 
September 21, 2020 October 1, 2020 October 15, 2020 $ 0.468750 
June 18, 2020 July 1, 2020 July 15, 2020 $ 0.468750 
April 6, 2020 April 16, 2020 April 29, 2020 $ 0.468750 
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(1)On February 4, 2021, the Company announced the redemption of all outstanding shares of the Company’s Series D Preferred Stock and Series E Preferred Stock. The redemption date for each series was March 15, 2021 and holders of record as of such date received the redemption payment of $25.00, plus any accumulated and unpaid dividends thereon up to, but excluding, the redemption date. The cash dividend payment amount identified in this row represents the per share accrued and unpaid dividends paid on the redemption date.
On March 24, 2020, as a result of the volatile market conditions related to the COVID-19 pandemic, the Company announced that it had suspended its first quarter 2020 preferred stock dividends in order to preserve liquidity and long-term stockholder value. Subsequently, on April 6, 2020, the Company’s board of directors declared its first quarter 2020 preferred stock dividends, as detailed above. Pursuant to their terms, all unpaid dividends on the Company’s preferred stock accrue without interest.
Common Stock
As of June 30, 2021, the Company had 273,718,311 shares of common stock outstanding. The following table presents a reconciliation of the common shares outstanding for the three and six months ended June 30, 2021 and 2020:
Number of common shares
Common shares outstanding, December 31, 2019 272,935,731 
Issuance of common stock 36,761 
Issuance of restricted stock (1)
832,867 
Repurchase of common stock (105,300)
Common shares outstanding, June 30, 2020 273,700,059 
Common shares outstanding, December 31, 2020 273,703,882 
Issuance of common stock 27,018 
Issuance of restricted stock (1)(2)
(12,589)
Repurchase of common stock — 
Common shares outstanding, June 30, 2021 273,718,311 
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(1)Represents shares of restricted stock granted under the Company’s Equity Incentive Plans, net of forfeitures.
(2)During the six months ended June 30, 2021, the Company also granted RSUs and PSUs to the Company’s independent directors and certain eligible employees pursuant to the terms of the Company’s Equity Incentive Plans. The RSUs and PSUs are subject to vesting requirements and the common shares to be issued, subject to each grantee’s compliance with the terms and conditions of the applicable RSU or PSU award agreement, will not be considered outstanding until the applicable vesting date.

Distributions to Common Stockholders
The following table presents cash dividends declared by the Company on its common stock from December 31, 2019 through June 30, 2021:
Declaration Date Record Date Payment Date Cash Dividend Per Common Share
June 17, 2021 June 29, 2021 July 29, 2021 $ 0.170000 
March 18, 2021 March 29, 2021 April 29, 2021 $ 0.170000 
December 17, 2020 December 30, 2020 January 29, 2021 $ 0.170000 
September 21, 2020 October 1, 2020 October 29, 2020 $ 0.140000 
June 18, 2020 June 30, 2020 July 29, 2020 $ 0.140000 
April 6, 2020 April 16, 2020 April 29, 2020 $ 0.050000 

On March 24, 2020, as a result of the volatile market conditions related to the COVID-19 pandemic, the Company announced that it had suspended its first quarter 2020 common stock dividend in order to preserve liquidity and long-term stockholder value. Subsequently, on April 6, 2020, the Company’s board of directors declared an interim common stock dividend of $0.05 per share, as detailed above.
Dividend Reinvestment and Direct Stock Purchase Plan
The Company sponsors a dividend reinvestment and direct stock purchase plan through which stockholders may purchase additional shares of the Company’s common stock by reinvesting some or all of the cash dividends received on shares of the Company’s common stock. Stockholders may also make optional cash purchases of shares of the Company’s common stock subject to certain limitations detailed in the plan prospectus. The plan allows for the issuance of up to an aggregate of 3,750,000 shares of the Company’s common stock. As of June 30, 2021, 358,231 shares have been issued under the plan for total proceeds of approximately $5.5 million, of which 12,363 and 27,018 shares were issued for total proceeds of $0.1 million and $0.2 million during the three and six months ended June 30, 2021, respectively. During the three and six months ended June 30, 2020, 20,263 and 36,761 shares were issued for total proceeds of $0.1 million and $0.2 million, respectively.
Share Repurchase Program
The Company’s share repurchase program allows for the repurchase of up to an aggregate of 37,500,000 shares of the Company’s common stock. Shares may be repurchased from time to time through privately negotiated transactions or open market transactions, pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, or by any combination of such methods. The manner, price, number and timing of share repurchases are subject to a variety of factors, including market conditions and applicable SEC rules. The share repurchase program does not require the purchase of any minimum number of shares, and, subject to SEC rules, purchases may be commenced or suspended at any time without prior notice. The share repurchase program does not have an expiration date. As of June 30, 2021, a total of 12,174,300 shares had been repurchased by the Company under the program for an aggregate cost of $201.5 million; of these, 105,300 shares were repurchased at a total cost of $1.1 million during the six months ended June 30, 2020. No shares were repurchased during the three months ended June 30, 2020 or the three and six months ended June 30, 2021.
At-the-Market Offerings
The Company is party to an equity distribution agreement under which the Company is authorized to sell up to an aggregate of 35,000,000 shares of its common stock from time to time in any method permitted by law deemed to be an “at the market” offering as defined in Rule 415 under the Securities Act of 1933, as amended, or the Securities Act. As of June 30, 2021, 7,490,235 shares of common stock had been sold under the equity distribution agreements for total accumulated net proceeds of approximately $128.6 million. No shares were sold during the three and six months ended June 30, 2021 or 2020.

Accumulated Other Comprehensive Income
Accumulated other comprehensive income at June 30, 2021 and December 31, 2020 was as follows:
(in thousands) June 30,
2021		 December 31,
2020
Available-for-sale securities:
Unrealized gains $ 326,237  $ 661,734 
Unrealized losses (18,988) (20,133)
Accumulated other comprehensive income $ 307,249  $ 641,601 

Reclassifications out of Accumulated Other Comprehensive Income
The Company reclassifies unrealized gains and losses on AFS securities in accumulated other comprehensive income to net (loss) income upon the recognition of any realized gains and losses on sales, net of income tax effects, if any, as individual securities are sold. For the three and six months ended June 30, 2021 the Company reclassified $5.1 million and $73.7 million, respectively, in unrealized gains on sold AFS securities from accumulated other comprehensive income to (loss) gain on investment securities on the condensed consolidated statements of comprehensive (loss) income. For the three and six months ended June 30, 2020 the Company reclassified $38.3 million and $471.3 million, respectively, in unrealized gains on sold AFS securities from accumulated other comprehensive income to (loss) gain on investment securities on the condensed consolidated statements of comprehensive (loss) income.