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New York Mortgage Trust (NASDAQ:NYMT) turned in on Wednesday Q4 earnings that improved markedly both sequentially and from a year ago, against a backdrop of lower volatility thanks to the Federal Reserve's pivot to a more dovish stance.
Q4 GAAP EPS of $0.35, breezing past the $0.07 average analyst estimate, jumped from -$1.04 in Q3 and -$0.52 in the year-ago quarter.
Total net interest income of $16.8M remained roughly unchanged from Q3 and slid from $22.3M a year before.
"In hindsight, the past decision to reduce portfolio risk and increase liquidity turned out to be premature and consequently lowered Company earnings throughout 2023," CEO Jason Serrano said in a statement.
"However, we believe this approach will yield improved results not only this year, but has the potential to enhance results in the years ahead as trillions of dollars of maturing commercial real estate debt is sorted out," he added.
Q4 adjusted net interest income of $23.5M vs. $20.7M in the prior quarter and $22.3M in Q4 2022.
Book value per common share was $11.31 at Dec. 31, 2023, compared with $11.26 at Sept. 30, 2023.
Economic return on book value came in at 2.22% vs. -7.07% in Q3. Economic return on adjusted book value of -0.54% vs. -7.61% in Q3.
Total investment portfolio carrying value was $5.15B at the end of Q4 vs. $4.70B at the end of Q3.
During the quarter, New York Mortgage Trust (NYMT) purchased about $416.4M of agency residential mortgage-backed securities and ~$237.7M in residential loans. The REIT sold investment securities for about $39.3M in proceeds.
Conference call on Feb. 22 at 9:00 a.m. ET.
Earlier, New York Mortgage Trust GAAP EPS of $0.35, revenue of $100.35M.