NEW YORK--(BUSINESS WIRE)--MFA Financial, Inc. (NYSE:MFA) today provided its financial results for the first quarter ended March 31, 2024:
- MFA generated GAAP net income for the first quarter of $15.0 million, or $0.14 per basic and diluted common share.
- Distributable earnings, a non-GAAP financial measure, were $36.1 million, or $0.35 per common share. MFA paid a regular cash dividend of $0.35 per common share on April 30, 2024.
- GAAP book value at March 31, 2024 was $13.80 per common share. Economic book value, a non-GAAP financial measure, was $14.32 per common share.
- Total economic return was 0.7% for the first quarter.
- Net interest spread averaged 2.06% and net interest margin was 2.88%.
- MFA closed the quarter with unrestricted cash of $306.3 million.
Commenting on the quarter, Craig Knutson, MFA's CEO and President, stated: "Although our book value was modestly impacted by higher interest rates, we are pleased to report strong distributable earnings for the opening months of 2024. We acquired or originated $652 million of residential mortgage loans during the quarter with an average coupon of approximately 10%. This includes over $400 million of new business purpose loans originated by our wholly-owned subsidiary Lima One Capital. We completed one securitization during the quarter and again benefited from our $3.2 billion interest rate swap position, which generated a net positive carry of $29 million. As a result of our disciplined risk management strategies, our net interest spread and net interest margin each remained healthy at 2.06% and 2.88%, respectively."
Mr. Knutson continued: "During the quarter, we repurchased $40 million of our convertible senior notes due in June, reducing the outstanding balance to less than $170 million. In January, we issued $115 million of 8.875% senior unsecured notes due in February 2029. Last month, we issued an additional $75 million of 9.00% senior unsecured notes due in August 2029. We continue to maintain a substantial cash position in order to protect our balance sheet from further interest rate or credit spread volatility. We believe we are well-situated to take advantage of market opportunities that may arise."
Q1 2024 Portfolio Activity
- Loan acquisitions were $651.8 million, including $465.4 million of funded originations of business purpose loans (including draws on Transitional loans) and $186.4 million of Non-QM loan acquisitions, bringing MFA's residential whole loan balance to $9.1 billion.
- Lima One funded $301.7 million of new business purpose loans with a maximum loan amount of $429.8 million. Further, $163.7 million of draws were funded on previously originated Transitional loans. Lima One generated $7.9 million of origination, servicing, and other fee income.
- Asset dispositions included $60.6 million UPB of Non-QM loans and $110.4 million UPB of SFR loans. Inclusive of the reversal of previously recognized unrealized losses, the Company recorded a net gain of $2.0 million.
- MFA continued to reduce its REO portfolio, selling 73 properties in the first quarter for aggregate proceeds of $24.2 million and generating $2.0 million of gains.
- 60+ day delinquencies (measured as a percentage of UPB) for Purchased Performing Loans increased to 4.3% from 3.8% in the fourth quarter. Combined Purchased Credit Deteriorated and Purchased Non-Performing 60+ day delinquencies declined to 24.3% from 24.5% in the fourth quarter.
- MFA completed one loan securitization during the quarter, collateralized by $192.5 million UPB of Transitional loans, bringing its securitized debt to approximately $4.8 billion.
- MFA maintained its position in interest rate swaps at a notional amount of approximately $3.2 billion. At March 31, 2024, these swaps had a weighted average fixed pay interest rate of 1.86% and a weighted average variable receive interest rate of 5.34%.
- MFA estimates the net effective duration of its investment portfolio at March 31, 2024 rose to 0.98 from 0.91 at December 31, 2023.
- MFA's Debt/Net Equity Ratio was 4.6x and recourse leverage was 1.8x at March 31, 2024.
Webcast
MFA Financial, Inc. plans to host a live audio webcast of its investor conference call on Monday, May 6, 2024, at 11:00 a.m. (Eastern Time) to discuss its first quarter 2024 financial results. The live audio webcast will be accessible to the general public over the internet at through the "Webcasts & Presentations" link on MFA's home page. Earnings presentation materials will be posted on the MFA website prior to the conference call and an audio replay will be available on the website following the call.
About MFA Financial, Inc.
MFA Financial, Inc. (NYSE: MFA) is a leading specialty finance company that invests in residential mortgage loans, residential mortgage-backed securities and other real estate assets. Through its wholly-owned subsidiary, Lima One Capital, MFA also originates and services business purpose loans for real estate investors. MFA has distributed $4.7 billion in dividends to stockholders since its initial public offering in 1998. MFA is an internally-managed, publicly-traded real estate investment trust.
The following table presents MFA's asset allocation as of March 31, 2024, and the first quarter 2024 yield on average interest-earning assets, average cost of funds and net interest rate spread for the various asset types.
Table 1 - Asset Allocation
At March 31, 2024 | Purchased Performing Loans (1) | Purchased Credit Deteriorated Loans (2) | Purchased Non-Performing Loans | Securities, at fair value | Real Estate Owned | Other, | Total | |||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||||||
Fair Value/Carrying Value | $ | 8,025 | $ | 412 | $ | 682 | $ | 737 | $ | 106 | $ | 607 | $ | 10,569 | ||||||||||||||
Financing Agreements with Non-mark-to-market Collateral Provisions | (1,102 | ) | — | — | — | — | — | (1,102) | ||||||||||||||||||||
Financing Agreements with Mark-to-market Collateral Provisions | (1,519 | ) | (139 | ) | (222 | ) | (606 | ) | (23 | ) | — | (2,509) | ||||||||||||||||
Securitized Debt | (4,300 | ) | (228 | ) | (257 | ) | — | (9 | ) | — | (4,794) | |||||||||||||||||
Senior Notes | — | — | — | — | — | (280 | ) | (280) | ||||||||||||||||||||
Net Equity Allocated | $ | 1,104 | $ | 45 | $ | 203 | $ | 131 | $ | 74 | $ | 327 | $ | 1,884 | ||||||||||||||
Debt/Net Equity Ratio (4) | 6.3 x | 8.2 x | 2.4 x | 4.6 x | 0.4 x | 4.6 x | ||||||||||||||||||||||
For the Quarter Ended March 31, 2024 | ||||||||||||||||||||||||||||
Yield on Average Interest Earning Assets (5) | 6.50 | % | 5.95 | % | 8.91 | % | 7.24 | % | N/A | 6.58% | ||||||||||||||||||
Less Average Cost of Funds (6) | (4.56 | ) | (2.87 | ) | (3.78 | ) | (4.00 | ) | (6.40 | ) | (4.52) | |||||||||||||||||
Net Interest Rate Spread | 1.94 | % | 3.08 | % | 5.13 | % | 3.24 | % | (6.40 | )% | 2.06% | |||||||||||||||||
(1) | Includes $3.8 billion of Non-QM loans, $2.5 billion of Transitional loans, $1.6 billion of Single-family rental loans, $66.0 million of Seasoned performing loans, and $54.7 million of Agency eligible investor loans. At March 31, 2024, the total fair value of these loans is estimated to be $8.0 billion. |
(2) | At March 31, 2024, the total fair value of these loans is estimated to be $431.3 million. |
(3) | Includes $306.3 million of cash and cash equivalents, $222.9 million of restricted cash, and $19.8 million of capital contributions made to loan origination partners, as well as other assets and other liabilities. |
(4) | Total Debt/Net Equity ratio represents the sum of borrowings under our financing agreements as a multiple of net equity allocated. |
(5) | Yields reported on our interest earning assets are calculated based on the interest income recorded and the average amortized cost for the quarter of the respective asset. At March 31, 2024, the amortized cost of our Securities, at fair value, was $715.4 million. In addition, the yield for residential whole loans was 6.62%, net of one basis point of servicing fee expense incurred during the quarter. For GAAP reporting purposes, such expenses are included in Loan servicing and other related operating expenses in our statement of operations. |
(6) | Average cost of funds includes interest on financing agreements, Convertible Senior Notes, 8.875% Senior Notes, and securitized debt. Cost of funding also includes the impact of the net carry (the difference between swap interest income received and swap interest expense paid) on our interest rate swap agreements (or Swaps). While we have not elected hedge accounting treatment for Swaps and accordingly net carry is not presented in interest expense in our consolidated statement of operations, we believe it is appropriate to allocate net carry to the cost of funding to reflect the economic impact of our Swaps on the funding costs shown in the table above. For the quarter ended March 31, 2024, this decreased the overall funding cost by 131 basis points for our overall portfolio, 132 basis points for our Residential whole loans, 134 basis points for our Purchased Performing Loans, 129 basis points for our Purchased Credit Deteriorated Loans, 102 basis points for our Purchased Non-Performing Loans and 179 basis points for our Securities, at fair value. |
The following table presents the activity for our residential mortgage asset portfolio for the three months ended March 31, 2024:
Table 2 - Investment Portfolio Activity Q1 2024
(In Millions) | December 31, 2023 | Runoff (1) | Acquisitions (2) | Other (3) | March 31, 2024 | Change | |||||||||||||||
Residential whole loans and REO | $ | 9,151 | $ | (414 | ) | $ | 652 | $ | (164 | ) | $ | 9,225 | $ | 74 | |||||||
Securities, at fair value | 746 | (8 | ) | — | (1 | ) | 737 | (9) | |||||||||||||
Totals | $ | 9,897 | $ | (422 | ) | $ | 652 | $ | (165 | ) | $ | 9,962 | $ | 65 | |||||||
(1) | Primarily includes principal repayments and sales of REO. | |
(2) | Includes draws on previously originated Transitional loans. | |
(3) | Primarily includes sales, changes in fair value and changes in the allowance for credit losses. |
The following tables present information on our investments in residential whole loans:
Table 3 - Portfolio Composition/Residential Whole Loans
Held at Carrying Value | Held at Fair Value | Total | ||||||||||||||||||||
(Dollars in Thousands) | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | March 31, 2024 | December 31, 2023 | ||||||||||||||||
Purchased Performing Loans: | ||||||||||||||||||||||
Non-QM loans | $ | 816,617 | $ | 843,884 | $ | 3,021,769 | $ | 2,961,693 | $ | 3,838,386 | $ | 3,805,577 | ||||||||||
Transitional loans (1) | 29,098 | 35,467 | 2,465,674 | 2,326,029 | 2,494,772 | 2,361,496 | ||||||||||||||||
Single-family rental loans | 148,943 | 172,213 | 1,430,021 | 1,462,583 | 1,578,964 | 1,634,796 | ||||||||||||||||
Seasoned performing loans | 66,065 | 68,945 | — | — | 66,065 | 68,945 | ||||||||||||||||
Agency eligible investor loans | — | — | 54,654 | 55,779 | 54,654 | 55,779 | ||||||||||||||||
Total Purchased Performing Loans | $ | 1,060,723 | $ | 1,120,509 | $ | 6,972,118 | $ | 6,806,084 | $ | 8,032,841 | $ | 7,926,593 | ||||||||||
Purchased Credit Deteriorated Loans | $ | 423,647 | $ | 429,726 | $ | — | $ | — | $ | 423,647 | $ | 429,726 | ||||||||||
Allowance for Credit Losses | $ | (19,612 | ) | $ | (20,451 | ) | $ | — | $ | — | $ | (19,612 | ) | $ | (20,451) | |||||||
Purchased Non-Performing Loans | $ | — | $ | — | $ | 681,789 | $ | 705,424 | $ | 681,789 | $ | 705,424 | ||||||||||
Total Residential Whole Loans | $ | 1,464,758 | $ | 1,529,784 | $ | 7,653,907 | $ | 7,511,508 | $ | 9,118,665 | $ | 9,041,292 | ||||||||||
Number of loans | 6,148 | 6,326 | 19,561 | 19,075 | 25,709 | 25,401 | ||||||||||||||||
(1) | As of March 31, 2024 includes $1.3 billion of loans collateralized by one-to-four family residential properties, including $506.5 million of loans collateralized by new construction projects at origination, and $1.2 billion of loans collateralized by multi-family properties. As of December 31, 2023 includes $1.2 billion of loans collateralized by one-to-four family residential properties and $1.2 billion of loans collateralized by multi-family properties. |
Table 4 - Yields and Average Balances/Residential Whole Loans
For the Three-Month Period Ended | |||||||||||||||||||||||||||
(Dollars in Thousands) | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||||||||||||||||
Interest | Average Balance | Average Yield | Interest | Average Balance | Average Yield | Interest | Average Balance | Average Yield | |||||||||||||||||||
Purchased Performing Loans: | |||||||||||||||||||||||||||
Non-QM loans | $ | 55,861 | $ | 4,149,257 | 5.39% | $ | 51,997 | $ | 4,111,425 | 5.06% | $ | 44,089 | $ | 3,803,154 | 4.64% | ||||||||||||
Transitional loans | 53,216 | 2,448,951 | 8.69% | 48,358 | 2,249,974 | 8.60% | 28,227 | 1,473,420 | 7.66% | ||||||||||||||||||
Single-family rental loans | 27,102 | 1,746,058 | 6.21% | 25,598 | 1,702,940 | 6.01% | 21,313 | 1,518,741 | 5.61% | ||||||||||||||||||
Seasoned performing loans | 1,124 | 67,713 | 6.64% | 1,191 | 71,207 | 6.69% | 1,090 | 81,388 | 5.36% | ||||||||||||||||||
Agency eligible investor loans | 517 | 68,490 | 3.02% | 512 | 69,436 | 2.95% | 2,857 | 380,763 | 3.00% | ||||||||||||||||||
Total Purchased Performing Loans | 137,820 | 8,480,469 | 6.50% | 127,656 | 8,204,982 | 6.22% | 97,576 | 7,257,466 | 5.38% | ||||||||||||||||||
Purchased Credit Deteriorated Loans | 6,355 | 427,267 | 5.95% | 7,051 | 434,650 | 6.49% | 7,138 | 466,123 | 6.13% | ||||||||||||||||||
Purchased Non-Performing Loans | 13,490 | 605,573 | 8.91% | 15,080 | 624,910 | 9.65% | 14,796 | 699,730 | 8.46% | ||||||||||||||||||
Total Residential Whole Loans | $ | 157,665 | $ | 9,513,309 | 6.63% | $ | 149,787 | $ | 9,264,542 | 6.47% | $ | 119,510 | $ | 8,423,319 | 5.68% | ||||||||||||
Table 5 - Net Interest Spread/Residential Whole Loans
For the Three-Month Period Ended | |||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||
Purchased Performing Loans | |||||||||
Net Yield (1) | 6.50% | 6.22% | 5.38% | ||||||
Cost of Funding (2) | 4.56% | 4.43% | 3.95% | ||||||
Net Interest Spread | 1.94% | 1.79% | 1.43% | ||||||
Purchased Credit Deteriorated Loans | |||||||||
Net Yield (1) | 5.95% | 6.49% | 6.13% | ||||||
Cost of Funding (2) | 2.87% | 2.68% | 2.23% | ||||||
Net Interest Spread | 3.08% | 3.81% | 3.90% | ||||||
Purchased Non-Performing Loans | |||||||||
Net Yield (1) | 8.91% | 9.65% | 8.46% | ||||||
Cost of Funding (2) | 3.78% | 3.63% | 3.53% | ||||||
Net Interest Spread | 5.13% | 6.02% | 4.93% | ||||||
Total Residential Whole Loans | |||||||||
Net Yield (1) | 6.63% | 6.47% | 5.68% | ||||||
Cost of Funding (2) | 4.43% | 4.29% | 3.82% | ||||||
Net Interest Spread | 2.20% | 2.18% | 1.86% | ||||||
(1) | Reflects annualized interest income on Residential whole loans divided by average amortized cost of Residential whole loans. Excludes servicing costs. | |
(2) | Reflects annualized interest expense divided by average balance of agreements with mark-to-market collateral provisions (repurchase agreements), agreements with non-mark-to-market collateral provisions, and securitized debt. Cost of funding shown in the table above includes the impact of the net carry (the difference between swap interest income received and swap interest expense paid) on our Swaps. While we have not elected hedge accounting treatment for Swaps, and, accordingly, net carry is not presented in interest expense in our consolidated statement of operations, we believe it is appropriate to allocate net carry to the cost of funding to reflect the economic impact of our Swaps on the funding costs shown in the table above. For the quarter ended March 31, 2024, this decreased the overall funding cost by 132 basis points for our Residential whole loans, 134 basis points for our Purchased Performing Loans, 129 basis points for our Purchased Credit Deteriorated Loans, and 102 basis points for our Purchased Non-Performing Loans. For the quarter ended December 31, 2023, this decreased the overall funding cost by 140 basis points for our Residential whole loans, 142 basis points for our Purchased Performing Loans, 143 basis points for our Purchased Credit Deteriorated Loans, and 102 basis points for our Purchased Non-Performing Loans. For the quarter ended March 31, 2023, this decreased the overall funding cost by 127 basis points for our Residential whole loans, 129 basis points for our Purchased Performing Loans, 171 basis points for our Purchased Credit Deteriorated Loans, and 77 basis points for our Purchased Non-Performing Loans. |
Table 6 - Credit-related Metrics/Residential Whole Loans
March 31, 2024 | ||||||||||||||||||||||||||||||||||
Fair Value / Carrying Value | Unpaid Principal Balance ("UPB") | Weighted Average Coupon (2) | Weighted Average Term to Maturity (Months) | Weighted Average LTV Ratio (3) | Weighted Average Original FICO (4) | Aging by UPB | 60+ DQ % | 60+ LTV (3) | ||||||||||||||||||||||||||
Past Due Days | ||||||||||||||||||||||||||||||||||
(Dollars In Thousands) | Current | 30-59 | 60-89 | 90+ | ||||||||||||||||||||||||||||||
Purchased Performing Loans: | ||||||||||||||||||||||||||||||||||
Non-QM loans | $ | 3,836,705 | $ | 4,059,991 | 6.02% | 342 | 65% | 734 | $ | 3,814,533 | $ | 115,484 | $ | 41,428 | $ | 88,546 | 3.2% | 65.2% | ||||||||||||||||
Transitional loans (1) | 2,493,073 | 2,502,067 | 9.45 | 9 | 64 | 747 | 2,306,508 | 44,621 | 18,459 | 132,479 | 6.0 | 65.9 | ||||||||||||||||||||||
Single-family rental loans | 1,574,322 | 1,665,788 | 6.52 | 331 | 69 | 738 | 1,571,772 | 17,395 | 6,452 | 70,169 | 4.6 | 111.0 | ||||||||||||||||||||||
Seasoned performing loans | 66,045 | 72,658 | 4.77 | 140 | 28 | 725 | 70,016 | 1,271 | 43 | 1,328 | 1.9 | 24.6 | ||||||||||||||||||||||
Agency eligible investor loans | 54,654 | 66,297 | 3.44 | 329 | 66 | 757 | 65,064 | 523 | 223 | 487 | 1.1 | 71.7 | ||||||||||||||||||||||
Total Purchased Performing Loans | $ | 8,024,799 | $ | 8,366,801 | 7.11% | 238 | 4.3% | |||||||||||||||||||||||||||
Purchased Credit Deteriorated Loans | $ | 412,077 | $ | 499,761 | 4.85% | 265 | 58% | N/A | $ | 373,341 | $ | 46,972 | $ | 16,784 | $ | 62,664 | 15.9% | 64.3% | ||||||||||||||||
Purchased Non-Performing Loans | $ | 681,789 | $ | 753,035 | 5.24% | 268 | 60% | N/A | $ | 437,507 | $ | 90,223 | $ | 31,434 | $ | 193,871 | 29.9% | 69.6% | ||||||||||||||||
Residential whole loans, total or weighted average | $ | 9,118,665 | $ | 9,619,597 | 6.21% | 227 | 6.9% | |||||||||||||||||||||||||||
(1) | As of March 31, 2024 Transitional loans includes $1.2 billion of loans collateralized by multi-family properties with a weighted average term to maturity of 12 months and a weighted average LTV ratio of 63%. | |
(2) | Weighted average is calculated based on the interest bearing principal balance of each loan within the related category. For loans acquired with servicing rights released by the seller, interest rates included in the calculation do not reflect loan servicing fees. For loans acquired with servicing rights retained by the seller, interest rates included in the calculation are net of servicing fees. | |
(3) | LTV represents the ratio of the total unpaid principal balance of the loan to the estimated value of the collateral securing the related loan as of the most recent date available, which may be the origination date. For Transitional loans, the LTV presented is the ratio of the maximum unpaid principal balance of the loan, including unfunded commitments, to the estimated "after repaired" value of the collateral securing the related loan, where available. For certain Transitional loans, totaling $608.9 million at March 31, 2024, an after repaired valuation was not obtained and the loan was underwritten based on an "as is" valuation. The weighted average LTV of these loans based on the current unpaid principal balance and the valuation obtained during underwriting, is 67% at March 31, 2024. Excluded from the calculation of weighted average LTV are certain low value loans secured by vacant lots, for which the LTV ratio is not meaningful. 60+ LTV has been calculated on a consistent basis. | |
(4) | Excludes loans for which no Fair Isaac Corporation ("FICO") score is available. |
Table 7 - Shock Table
The information presented in the following "Shock Table" projects the potential impact of sudden parallel changes in interest rates on the value of our portfolio, including the impact of Swaps and securitized debt, based on the assets in our investment portfolio at March 31, 2024. Changes in portfolio value are measured as the percentage change when comparing the projected portfolio value to the base interest rate scenario at March 31, 2024.
Change in Interest Rates | Percentage Change in Portfolio Value | Percentage Change in Total Stockholders' Equity | ||||
+100 Basis Point Increase | (1.22)% | (6.96)% | ||||
+ 50 Basis Point Increase | (0.55)% | (3.15)% | ||||
Actual at March 31, 2024 | —% | —% | ||||
- 50 Basis Point Decrease | 0.43% | 2.47% | ||||
-100 Basis Point Decrease | 0.75% | 4.28% | ||||
MFA FINANCIAL, INC. CONSOLIDATED BALANCE SHEETS | ||||||||
(In Thousands, Except Per Share Amounts) | March 31, 2024 | December 31, 2023 | ||||||
(unaudited) | ||||||||
Assets: | ||||||||
Residential whole loans, net ($7,653,907 and $7,511,508 held at fair value, respectively) (1) | $ | 9,118,665 | $ | 9,041,292 | ||||
Securities, at fair value | 736,950 | 746,090 | ||||||
Cash and cash equivalents | 306,266 | 318,000 | ||||||
Restricted cash | 222,905 | 170,211 | ||||||
Other assets | 489,344 | 497,097 | ||||||
Total Assets | $ | 10,874,130 | $ | 10,772,690 | ||||
Liabilities: | ||||||||
Financing agreements ($4,641,438 and $4,633,660 held at fair value, respectively) | $ | 8,685,916 | $ | 8,536,745 | ||||
Other liabilities | 304,027 | 336,030 | ||||||
Total Liabilities | $ | 8,989,943 | $ | 8,872,775 | ||||
Stockholders' Equity: | ||||||||
Preferred stock, $0.01 par value; 7.5% Series B cumulative redeemable; 8,050 shares authorized; 8,000 shares issued and outstanding ($200,000 aggregate liquidation preference) | $ | 80 | $ | 80 | ||||
Preferred stock, $0.01 par value; 6.5% Series C fixed-to-floating rate cumulative redeemable; 12,650 shares authorized; 11,000 shares issued and outstanding ($275,000 aggregate liquidation preference) | 110 | 110 | ||||||
Common stock, $0.01 par value; 874,300 and 874,300 shares authorized; 102,082 and 101,916 shares issued and outstanding, respectively | 1,021 | 1,019 | ||||||
Additional paid-in capital, in excess of par | 3,703,242 | 3,698,767 | ||||||
Accumulated deficit | (1,839,792 | ) | (1,817,759) | |||||
Accumulated other comprehensive income | 19,526 | 17,698 | ||||||
Total Stockholders' Equity | $ | 1,884,187 | $ | 1,899,915 | ||||
Total Liabilities and Stockholders' Equity | $ | 10,874,130 | $ | 10,772,690 | ||||
(1) | Includes approximately $5.7 billion and $5.7 billion of Residential whole loans transferred to consolidated variable interest entities ("VIEs") at March 31, 2024 and December 31, 2023, respectively. Such assets can be used only to settle the obligations of each respective VIE. |
MFA FINANCIAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Three Months Ended March 31, | ||||||||
(In Thousands, Except Per Share Amounts) | 2024 | 2023 | ||||||
(Unaudited) | (Unaudited) | |||||||
Interest Income: | ||||||||
Residential whole loans | $ | 157,665 | $ | 119,510 | ||||
Securities, at fair value | 12,992 | 7,308 | ||||||
Other interest-earning assets | 1,163 | 2,351 | ||||||
Cash and cash equivalent investments | 5,011 | 3,036 | ||||||
Interest Income | $ | 176,831 | $ | 132,205 | ||||
Interest Expense: | ||||||||
Asset-backed and other collateralized financing arrangements | $ | 123,442 | $ | 88,880 | ||||
Other interest expense | 5,575 | 3,956 | ||||||
Interest Expense | $ | 129,017 | $ | 92,836 | ||||
Net Interest Income | $ | 47,814 | $ | 39,369 | ||||
Reversal/(Provision) for Credit Losses on Residential Whole Loans | $ | 460 | $ | 13 | ||||
Reversal/(Provision) for Credit Losses on Other Assets | (1,109 | ) | — | |||||
Net Interest Income after Reversal/(Provision) for Credit Losses | $ | 47,165 | $ | 39,382 | ||||
Other Income/(Loss), net: | ||||||||
Net gain/(loss) on residential whole loans measured at fair value through earnings | $ | (11,513 | ) | $ | 129,174 | |||
Impairment and other net gain/(loss) on securities and other portfolio investments | (4,776 | ) | 2,931 | |||||
Net gain/(loss) on real estate owned | 991 | 3,942 | ||||||
Net gain/(loss) on derivatives used for risk management purposes | 49,941 | (21,208) | ||||||
Net gain/(loss) on securitized debt measured at fair value through earnings | (22,462 | ) | (51,725) | |||||
Lima One - origination, servicing and other fee income | 7,928 | 8,976 | ||||||
Net realized gain/(loss) on residential whole loans held at carrying value | 418 | — | ||||||
Other, net | 1,875 | 3,014 | ||||||
Other Income/(Loss), net | $ | 22,402 | $ | 75,104 | ||||
Operating and Other Expense: | ||||||||
Compensation and benefits | $ | 25,468 | $ | 20,630 | ||||
Other general and administrative expense | 13,044 | 10,233 | ||||||
Loan servicing, financing and other related costs | 7,042 | 9,539 | ||||||
Amortization of intangible assets | 800 | 1,300 | ||||||
Operating and Other Expense | $ | 46,354 | $ | 41,702 | ||||
Net Income/(Loss) | $ | 23,213 | $ | 72,784 | ||||
Less Preferred Stock Dividend Requirement | $ | 8,219 | $ | 8,219 | ||||
Net Income/(Loss) Available to Common Stock and Participating Securities | $ | 14,994 | $ | 64,565 | ||||
Basic Earnings/(Loss) per Common Share | $ | 0.14 | $ | 0.63 | ||||
Diluted Earnings/(Loss) per Common Share | $ | 0.14 | $ | 0.62 | ||||
Contacts
INVESTOR:
InvestorRelations@mfafinancial.com
212-207-6488
MEDIA:
H/Advisors Abernathy
Tom Johnson
212-371-5999
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