Shares of Deerfield Capital (DFR) Slide on Impairment Charge News

After the close yesterday, Deerfield Capital (NYSE: DFR) announced in an 8-K filing that it has identified impairment charges related to certain available-for-sale residential mortgage-backed securities (RMBS). Deerfield said that this impairment charge will be realized in its fourth quarter financial results and is expected to total approximately $75.5 million on about $3.4 billion of residential mortgage-backed securities.

According to the filing, Deerfield saw unrealized losses related to the RMBS of $59 million, resulting in an incremental reduction in book value of $16.5 million, or $0.25 per share during Q4.

Shares of Deerfield are getting hammered today on the news. Deerfield stock gapped lower to open this mornings trading session, and is now trading at $6.18, down $1.23, or about 16.6%. Notably, Deerfield is trading only $0.30 above its 52-week low of $5.45.

Deerfield Capital Corp., formerly known as Deerfield Triarc Capital Corp., through its wholly owned subsidiaries, operates as a specialty finance company.

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