MFA Financial, Inc. Announces Third Quarter 2024 Financial Results
MFA Financial reported Q3 2024 financial results with GAAP net income of $40.0 million, or $0.38 per basic share. The company generated distributable earnings of $38.6 million ($0.37 per share) and paid a $0.35 dividend. GAAP book value was $13.77 per share, while economic book value reached $14.46. During Q3, MFA purchased $565.2 million of residential mortgage loans with 9.4% average coupon and added $294 million of Agency MBS. The company completed two loan securitizations and maintained a net interest spread of 2.18%. Total economic return was 3.3% for the quarter, with unrestricted cash of $305.6 million.
MFA Financial ha riportato i risultati finanziari del terzo trimestre 2024, con un reddito netto GAAP di 40,0 milioni di dollari, ovvero 0,38 dollari per azione base. L'azienda ha generato entrate distribuibili di 38,6 milioni di dollari (0,37 dollari per azione) e ha pagato un dividendo di 0,35 dollari. Il valore contabile GAAP era di 13,77 dollari per azione, mentre il valore contabile economico ha raggiunto i 14,46 dollari. Durante il terzo trimestre, MFA ha acquistato prestiti ipotecari residenziali per un totale di 565,2 milioni di dollari, con una cedola media del 9,4%, e ha aggiunto 294 milioni di dollari di Agency MBS. L'azienda ha completato due cartolarizzazioni di prestiti e mantenuto uno spread di interesse netto del 2,18%. Il rendimento economico totale è stato del 3,3% per il trimestre, con un cash flow illimitato di 305,6 milioni di dollari.
MFA Financial informó los resultados financieros del tercer trimestre de 2024, con un ingreso neto GAAP de 40.0 millones de dólares, o 0.38 dólares por acción básica. La empresa generó ganancias distribuibles de 38.6 millones de dólares (0.37 dólares por acción) y pagó un dividendo de 0.35 dólares. El valor contable GAAP fue de 13.77 dólares por acción, mientras que el valor contable económico alcanzó los 14.46 dólares. Durante el tercer trimestre, MFA compró préstamos hipotecarios residenciales por un total de 565.2 millones de dólares, con un cupón promedio del 9.4%, y añadió 294 millones de dólares en Agency MBS. La empresa completó dos titulizaciones de préstamos y mantuvo un margen de interés neto del 2.18%. El rendimiento económico total fue del 3.3% para el trimestre, con un efectivo sin restricciones de 305.6 millones de dólares.
MFA Financial는 2024년 3분기 재무 결과를 보고했으며, GAAP 순이익이 4천만 달러로, 기본 주당 0.38달러를 기록했습니다. 회사는 배당 가능 이익이 3,860만 달러 (주당 0.37달러)였으며, 0.35달러의 배당금을 지급했습니다. GAAP 장부 가치는 주당 13.77달러였고, 경제적 장부 가치는 14.46달러에 도달했습니다. 3분기 동안 MFA는 평균 9.4%의 쿠폰을 가진 주거 모기지 대출 5억 6천 520만 달러를 구매하고, 2억 9천 400만 달러의 Agency MBS를 추가했습니다. 회사는 두 건의 대출 유동화를 완료하고 2.18%의 순이자 스프레드를 유지했습니다. 총 경제적 수익은 분기 동안 3.3%였고, 비제한 현금은 3억 5천 560만 달러였습니다.
MFA Financial a publié les résultats financiers du troisième trimestre 2024, avec un revenu net GAAP de 40,0 millions de dollars, soit 0,38 dollar par action de base. L'entreprise a généré des bénéfices distribuables de 38,6 millions de dollars (0,37 dollar par action) et a versé un dividende de 0,35 dollar. La valeur comptable GAAP était de 13,77 dollars par action, tandis que la valeur comptable économique a atteint 14,46 dollars. Au cours du troisième trimestre, MFA a acquis des prêts hypothécaires résidentiels pour un montant total de 565,2 millions de dollars, avec un coupon moyen de 9,4 %, et a ajouté 294 millions de dollars de titres MBS d'agence. L'entreprise a complété deux titrisations de prêts et a maintenu une marge d'intérêt nette de 2,18 %. Le rendement économique total était de 3,3 % pour le trimestre, avec des liquidités non restreintes de 305,6 millions de dollars.
MFA Financial berichtete über die finanziellen Ergebnisse des dritten Quartals 2024, mit einem GAAP-Nettoeinkommen von 40,0 Millionen US-Dollar, oder 0,38 US-Dollar pro Basisaktie. Das Unternehmen erwirtschaftete distributierbare Erträge von 38,6 Millionen US-Dollar (0,37 US-Dollar pro Aktie) und zahlte eine Dividende von 0,35 US-Dollar. Der GAAP-Buchwert betrug 13,77 US-Dollar pro Aktie, während der wirtschaftliche Buchwert 14,46 US-Dollar erreichte. Im dritten Quartal erwarb MFA Wohnhypothekendarlehen im Wert von 565,2 Millionen US-Dollar mit einem durchschnittlichen Kupon von 9,4 % und fügte 294 Millionen US-Dollar an Agency MBS hinzu. Das Unternehmen schloss zwei Darlehensverbriefungen ab und hielt eine Nettozinsmarge von 2,18 %. Die gesamte wirtschaftliche Rendite betrug 3,3 % für das Quartal, mit ungebundenem Bargeld von 305,6 Millionen US-Dollar.
- GAAP net income of $40.0 million in Q3 2024
- Distributable earnings of $38.6 million
- Economic book value increased 1% to $14.46 per share
- Significant loan acquisitions totaling $565.2 million with 9.4% average coupon
- Strong liquidity position with $305.6 million in unrestricted cash
- 60+ day loan delinquencies increased to 6.7% from 6.5% in Q2
- Net interest spread declined to 2.18% from previous levels
Insights
This earnings report shows solid performance for MFA Financial in Q3 2024. Key highlights include:
$40.0 million GAAP net income ($0.38 per basic share)- Distributable earnings of
$38.6 million ($0.37 per share) - Economic book value increased to
$14.46 per share - Strong acquisition activity with
$565.2 million in residential mortgage loans and$293.9 million in Agency MBS
The company's strategic positioning appears sound with a well-diversified portfolio and manageable leverage at 4.8x. The Fed's pivot to rate cuts should benefit MFA's business model by improving funding costs and portfolio spreads. However, rising delinquencies (6.7% vs 6.5% last quarter) warrant monitoring.
The portfolio metrics reveal strategic adaptability in a shifting market environment. Notable aspects include:
- High-yielding loan acquisitions with
9.4% average coupon - Healthy net interest spread of
2.18% - Strong liquidity position with
$305.6 million in unrestricted cash - Successful execution of four securitizations, optimizing funding structure
The company's increased interest rate swap position to
-
MFA generated GAAP net income for the third quarter of
$40.0 million $0.38 $0.37 -
Distributable earnings, a non-GAAP financial measure, were
$38.6 million $0.37 $0.35 -
GAAP book value at September 30, 2024 was
$13.77 $14.46 -
Total economic return was
3.3% for the third quarter. -
Net interest spread averaged
2.18% and net interest margin was3.00% . -
MFA closed the quarter with unrestricted cash of
$305.6 million
“We are pleased to report strong results for the third quarter,” stated Craig Knutson, MFA’s Chief Executive Officer. “We generated Distributable earnings of
“With a 50 basis point rate cut at its September meeting, the Federal Reserve began an easing cycle that should benefit mortgage REITs and other levered fixed income investors,” Mr. Knutson added. “This is a welcome development after a challenging period of restrictive monetary policy and an inverted yield curve. Although it remains to be seen how long this cycle lasts and how far the Fed ultimately cuts rates, a return to a more neutral policy rate and the normalization of the yield curve should both serve as tailwinds for our business.”
“Finally, we were delighted to announce in late August that Bryan Wulfsohn will serve as President of MFA and that Lori Samuels has been named Chief Loan Operations Officer. Bryan and Lori are exceptionally talented leaders who have each been at MFA for nearly 15 years. We are proud to elevate them into new roles,” concluded Mr. Knutson.
Q3 2024 Portfolio Activity
-
Loan acquisitions were
$565.2 million $329.0 million $236.2 million $9.0 billion -
Lima One funded
$196.0 million $312.3 million $132.9 million $8.9 million -
MFA added
$293.9 million $993.5 million -
Asset dispositions included
$241.5 million $16.0 million $18.3 million -
60+ day delinquencies (measured as a percentage of UPB) for MFA’s residential loan portfolio increased to
6.7% from6.5% in the second quarter. -
MFA completed two loan securitizations during the quarter, collateralized by
$643.4 million $5.3 billion -
MFA increased its position in interest rate swaps to a notional amount of approximately
$3.5 billion 1.91% and a weighted average variable receive interest rate of4.96% . - MFA estimates the net effective duration of its investment portfolio at September 30, 2024 rose to 1.16 from 1.12 at June 30, 2024.
- MFA’s Debt/Net Equity Ratio was 4.8x and recourse leverage was 1.8x at September 30, 2024.
Webcast
MFA Financial, Inc. plans to host a live audio webcast of its investor conference call on Wednesday, November 6, 2024, at 11:00 a.m. (Eastern Time) to discuss its third quarter 2024 financial results. The live audio webcast will be accessible to the general public over the internet at http://www.mfafinancial.com 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
The following table presents MFA’s asset allocation as of September 30, 2024, and the third 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 September 30, 2024 |
|
Business purpose
|
|
Non-QM
|
|
Legacy
|
|
Securities, at
|
|
Other,
|
|
Total |
||||||||||||
(Dollars in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset Amount |
|
$ |
3,682 |
|
|
$ |
4,171 |
|
|
$ |
1,118 |
|
|
$ |
1,140 |
|
|
$ |
756 |
|
|
$ |
10,867 |
|
Receivable/(Payable) for Unsettled Transactions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(65 |
) |
|
|
— |
|
|
|
(65 |
) |
Financing Agreements with Non-mark-to-market Collateral Provisions |
|
|
(678 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(678 |
) |
Financing Agreements with Mark-to-market Collateral Provisions |
|
|
(802 |
) |
|
|
(653 |
) |
|
|
(309 |
) |
|
|
(918 |
) |
|
|
(90 |
) |
|
|
(2,772 |
) |
Securitized Debt |
|
|
(1,617 |
) |
|
|
(3,030 |
) |
|
|
(641 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(5,289 |
) |
Senior Notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(183 |
) |
|
|
(183 |
) |
Net Equity Allocated |
|
$ |
585 |
|
|
$ |
488 |
|
|
$ |
168 |
|
|
$ |
157 |
|
|
$ |
482 |
|
|
$ |
1,880 |
|
Debt/Net Equity Ratio (3) |
|
5.3 x |
|
7.5 x |
|
5.7 x |
|
6.3 x |
|
|
|
4.8 x |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the Quarter Ended September 30, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yield on Average Interest Earning Assets (4) |
|
|
7.91 |
% |
|
|
5.47 |
% |
|
|
7.75 |
% |
|
|
6.48 |
% |
|
|
|
|
6.71 |
% |
||
Less Average Cost of Funds (5) |
|
|
(5.65 |
) |
|
|
(3.47 |
) |
|
|
(4.08 |
) |
|
|
(3.94 |
) |
|
|
|
|
(4.53 |
) |
||
Net Interest Rate Spread |
|
|
2.26 |
% |
|
|
2.00 |
% |
|
|
3.67 |
% |
|
|
2.54 |
% |
|
|
|
|
2.18 |
% |
||
| (1) |
Includes |
|
| (2) |
Includes |
|
| (3) | Total Debt/Net Equity ratio represents the sum of borrowings under our financing agreements as a multiple of net equity allocated. |
|
| (4) |
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 September 30, 2024, the amortized cost of our Securities, at fair value, was |
|
| (5) |
Average cost of funds includes interest on financing agreements, Convertible Senior Notes, |
|
The following table presents the activity for our residential mortgage asset portfolio for the three months ended September 30, 2024:
Table 2 - Investment Portfolio Activity Q3 2024
(In Millions) |
|
June 30, 2024 |
|
Runoff (1) |
|
Acquisitions (2) |
|
Other (3) |
|
September 30, 2024 |
|
Change |
|||||||||
Residential whole loans and REO |
|
$ |
9,294 |
|
$ |
(611 |
) |
|
$ |
565 |
|
$ |
(94 |
) |
|
$ |
9,154 |
|
$ |
(140 |
) |
Securities, at fair value |
|
|
863 |
|
|
(18 |
) |
|
|
294 |
|
|
1 |
|
|
|
1,140 |
|
|
277 |
|
Totals |
|
$ |
10,157 |
|
$ |
(629 |
) |
|
$ |
859 |
|
$ |
(93 |
) |
|
$ |
10,294 |
|
$ |
137 |
|
| (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) |
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
||||||||||
Business purpose loans: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Single-family transitional loans (1) |
|
$ |
25,382 |
|
|
$ |
35,467 |
|
|
$ |
1,127,519 |
|
$ |
1,157,732 |
|
$ |
1,152,901 |
|
|
$ |
1,193,199 |
|
Multifamily transitional loans |
|
|
— |
|
|
|
— |
|
|
|
1,058,079 |
|
|
1,168,297 |
|
|
1,058,079 |
|
|
|
1,168,297 |
|
Single-family rental loans |
|
|
119,153 |
|
|
|
172,213 |
|
|
|
1,353,909 |
|
|
1,462,583 |
|
|
1,473,062 |
|
|
|
1,634,796 |
|
Total Business purpose loans |
|
$ |
144,535 |
|
|
$ |
207,680 |
|
|
$ |
3,539,507 |
|
$ |
3,788,612 |
|
$ |
3,684,042 |
|
|
$ |
3,996,292 |
|
Non-QM loans |
|
|
751,550 |
|
|
|
843,884 |
|
|
|
3,421,247 |
|
|
2,961,693 |
|
|
4,172,797 |
|
|
|
3,805,577 |
|
Legacy RPL/NPL loans |
|
|
467,202 |
|
|
|
498,671 |
|
|
|
658,078 |
|
|
705,424 |
|
|
1,125,280 |
|
|
|
1,204,095 |
|
Other loans |
|
|
— |
|
|
|
— |
|
|
|
55,909 |
|
|
55,779 |
|
|
55,909 |
|
|
|
55,779 |
|
Allowance for Credit Losses |
|
|
(10,657 |
) |
|
|
(20,451 |
) |
|
|
— |
|
|
— |
|
|
(10,657 |
) |
|
|
(20,451 |
) |
Total Residential whole loans |
|
$ |
1,352,630 |
|
|
$ |
1,529,784 |
|
|
$ |
7,674,741 |
|
$ |
7,511,508 |
|
$ |
9,027,371 |
|
|
$ |
9,041,292 |
|
Number of loans |
|
|
5,757 |
|
|
|
6,326 |
|
|
|
18,837 |
|
|
19,075 |
|
|
24,594 |
|
|
|
25,401 |
|
| (1) |
Includes |
|
Table 4 - Yields and Average Balances/Residential Whole Loans
|
|
For the Three-Month Period Ended |
|||||||||||||||||||||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|||||||||||||||||||||
(Dollars in Thousands) |
|
Interest |
|
Average
|
|
Average
|
|
Interest |
|
Average
|
|
Average
|
|
Interest |
|
Average
|
|
Average
|
|||||||||
Business purpose loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Single-family transitional loans |
|
$ |
28,486 |
|
$ |
1,196,227 |
|
9.53 |
% |
|
$ |
30,242 |
|
$ |
1,241,300 |
|
9.75 |
% |
|
$ |
22,259 |
|
$ |
1,003,031 |
|
8.88 |
% |
Multifamily transitional loans |
|
|
23,479 |
|
|
1,145,051 |
|
8.20 |
% |
|
|
25,291 |
|
|
1,213,450 |
|
8.34 |
% |
|
|
17,964 |
|
|
924,502 |
|
7.77 |
% |
Single-family rental loans |
|
|
26,333 |
|
|
1,616,723 |
|
6.52 |
% |
|
|
27,564 |
|
|
1,703,334 |
|
6.47 |
% |
|
|
24,087 |
|
|
1,639,626 |
|
5.88 |
% |
Total business purpose loans |
|
$ |
78,298 |
|
$ |
3,958,001 |
|
7.91 |
% |
|
$ |
83,097 |
|
$ |
4,158,084 |
|
7.99 |
% |
|
$ |
64,310 |
|
$ |
3,567,159 |
|
7.21 |
% |
Non-QM loans |
|
|
58,467 |
|
|
4,279,297 |
|
5.47 |
% |
|
|
58,749 |
|
|
4,280,761 |
|
5.49 |
% |
|
|
51,724 |
|
|
4,053,924 |
|
5.10 |
% |
Legacy RPL/NPL loans |
|
|
20,139 |
|
|
1,040,010 |
|
7.75 |
% |
|
|
23,346 |
|
|
1,070,629 |
|
8.72 |
% |
|
|
24,018 |
|
|
1,167,872 |
|
8.23 |
% |
Other loans |
|
|
502 |
|
|
67,070 |
|
2.99 |
% |
|
|
525 |
|
|
67,771 |
|
3.10 |
% |
|
|
486 |
|
|
71,306 |
|
2.73 |
% |
Total Residential whole loans |
|
$ |
157,406 |
|
$ |
9,344,378 |
|
6.74 |
% |
|
$ |
165,717 |
|
$ |
9,577,245 |
|
6.92 |
% |
|
$ |
140,538 |
|
$ |
8,860,261 |
|
6.34 |
% |
Table 5 - Net Interest Spread/Residential Whole Loans
|
|
For the Three-Month Period Ended |
|||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|||
Business purpose loans |
|
|
|
|
|
|
|||
Net Yield (1) |
|
7.91 |
% |
|
7.99 |
% |
|
7.21 |
% |
Cost of Funding (2) |
|
5.65 |
% |
|
5.80 |
% |
|
5.34 |
% |
Net Interest Spread |
|
2.26 |
% |
|
2.19 |
% |
|
1.87 |
% |
|
|
|
|
|
|
|
|||
Non-QM loans |
|
|
|
|
|
|
|||
Net Yield (1) |
|
5.47 |
% |
|
5.49 |
% |
|
5.10 |
% |
Cost of Funding (2) |
|
3.47 |
% |
|
3.55 |
% |
|
3.22 |
% |
Net Interest Spread |
|
2.00 |
% |
|
1.94 |
% |
|
1.88 |
% |
|
|
|
|
|
|
|
|||
Legacy RPL/NPL loans |
|
|
|
|
|
|
|||
Net Yield (1) |
|
7.75 |
% |
|
8.72 |
% |
|
8.23 |
% |
Cost of Funding (2) |
|
4.08 |
% |
|
3.70 |
% |
|
3.21 |
% |
Net Interest Spread |
|
3.67 |
% |
|
5.02 |
% |
|
5.02 |
% |
|
|
|
|
|
|
|
|||
Total Residential whole loans |
|
|
|
|
|
|
|||
Net Yield (1) |
|
6.74 |
% |
|
6.92 |
% |
|
6.34 |
% |
Cost of Funding (2) |
|
4.45 |
% |
|
4.54 |
% |
|
4.10 |
% |
Net Interest Spread |
|
2.29 |
% |
|
2.38 |
% |
|
2.24 |
% |
| (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 September 30, 2024, this decreased the overall funding cost by 131 basis points for our Residential whole loans, 101 basis points for our Business purpose loans, 175 basis points for our Non-QM loans, and 56 basis points for our Legacy RPL/NPL loans. For the quarter ended June 30, 2024, this decreased the overall funding cost by 128 basis points for our Residential whole loans, 92 basis points for our Business purpose loans, 163 basis points for our Non-QM loans, and 107 basis points for our Legacy RPL/NPL loans. For the quarter ended September 30, 2023, this decreased the overall funding cost by 143 basis points for our Residential whole loans, 240 basis points for our Business purpose loans, 176 basis points for our Non-QM loans, and 254 basis points for our Legacy RPL/NPL loans. |
|
Table 6 - Credit-related Metrics/Residential Whole Loans
September 30, 2024 |
|||||||||||||||||||||||||||||||||||||
|
|
Asset
|
|
Fair
|
|
Unpaid
|
|
Weighted
|
|
Weighted
|
|
Weighted
|
|
Weighted
|
|
Aging by UPB |
|
60+
|
|
60+
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Past Due Days |
|
|
||||||||||||||||||||||||
(Dollars In Thousands) |
|
|
|
|
|
|
|
|
Current |
|
30-59 |
|
60-89 |
|
90+ |
|
|
||||||||||||||||||||
Business purpose loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family transitional (4) |
$ |
1,151,733 |
|
$ |
1,152,489 |
|
$ |
1,158,413 |
|
10.46 |
% |
|
6 |
|
67 |
% |
|
748 |
|
$ |
1,021,676 |
|
$ |
41,089 |
|
$ |
6,034 |
|
$ |
89,614 |
|
8.3 |
% |
|
84 |
% |
|
Multifamily transitional (4) |
|
1,058,079 |
|
|
1,058,079 |
|
|
1,102,732 |
|
9.06 |
% |
|
9 |
|
67 |
% |
|
748 |
|
|
994,102 |
|
|
47,898 |
|
|
10,800 |
|
|
49,932 |
|
5.5 |
% |
|
79 |
% |
|
Single-family rental |
|
|
1,472,687 |
|
|
1,474,723 |
|
|
1,505,242 |
|
6.43 |
% |
|
325 |
|
68 |
% |
|
738 |
|
|
1,436,384 |
|
|
16,896 |
|
|
5,180 |
|
|
46,782 |
|
3.5 |
% |
|
103 |
% |
Total Business purpose loans |
|
$ |
3,682,499 |
|
$ |
3,685,291 |
|
$ |
3,766,387 |
|
8.44 |
% |
|
|
|
68 |
% |
|
|
|
$ |
3,452,162 |
|
$ |
105,883 |
|
$ |
22,014 |
|
$ |
186,328 |
|
5.5 |
% |
|
|
|
Non-QM loans |
|
|
4,171,055 |
|
|
4,145,143 |
|
|
4,264,091 |
|
6.26 |
% |
|
339 |
|
64 |
% |
|
735 |
|
|
4,013,257 |
|
|
100,943 |
|
|
37,025 |
|
|
112,866 |
|
3.5 |
% |
|
65 |
% |
Legacy RPL/NPL loans |
|
|
1,117,908 |
|
|
1,147,684 |
|
|
1,250,859 |
|
5.15 |
% |
|
255 |
|
55 |
% |
|
647 |
|
|
854,721 |
|
|
128,022 |
|
|
48,794 |
|
|
219,322 |
|
21.4 |
% |
|
63 |
% |
Other loans |
|
|
55,909 |
|
|
55,909 |
|
|
64,875 |
|
3.44 |
% |
|
323 |
|
65 |
% |
|
757 |
|
|
64,875 |
|
|
— |
|
|
— |
|
|
— |
|
— |
% |
|
— |
% |
Residential whole loans, total or weighted average |
$ |
9,027,371 |
|
$ |
9,034,027 |
|
$ |
9,346,212 |
|
6.99 |
% |
|
|
|
64 |
% |
|
|
|
$ |
8,385,015 |
|
$ |
334,848 |
|
$ |
107,833 |
|
$ |
518,516 |
|
6.7 |
% |
|
|
||
| (1) | 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. |
|
| (2) | 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. 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. |
|
| (3) | Excludes loans for which no Fair Isaac Corporation (“FICO”) score is available. |
|
| (4) |
For Single-family and Multifamily 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. At September 30, 2024, for certain Single-family and Multifamily Transitional loans totaling |
|
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 September 30, 2024. Changes in portfolio value are measured as the percentage change when comparing the projected portfolio value to the base interest rate scenario at September 30, 2024.
Change in Interest Rates |
|
Percentage Change
|
|
Percentage Change
|
||
+100 Basis Point Increase |
|
(1.44 |
)% |
|
(8.50 |
)% |
+ 50 Basis Point Increase |
|
(0.65 |
)% |
|
(3.85 |
)% |
Actual at September 30, 2024 |
|
— |
% |
|
— |
% |
- 50 Basis Point Decrease |
|
0.51 |
% |
|
3.04 |
% |
-100 Basis Point Decrease |
|
0.89 |
% |
|
5.28 |
% |
MFA FINANCIAL, INC.
|
||||||||
(In Thousands, Except Per Share Amounts) |
|
September 30,
|
|
December 31,
|
||||
|
|
(unaudited) |
|
|
||||
Assets: |
|
|
|
|
||||
Residential whole loans, net ( |
|
$ |
9,027,371 |
|
|
$ |
9,041,292 |
|
Securities, at fair value |
|
|
1,140,036 |
|
|
|
746,090 |
|
Cash and cash equivalents |
|
|
305,560 |
|
|
|
318,000 |
|
Restricted cash |
|
|
197,348 |
|
|
|
170,211 |
|
Other assets |
|
|
489,531 |
|
|
|
497,097 |
|
Total Assets |
|
$ |
11,159,846 |
|
|
$ |
10,772,690 |
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
||||
Financing agreements ( |
|
$ |
8,922,502 |
|
|
$ |
8,536,745 |
|
Other liabilities |
|
|
356,876 |
|
|
|
336,030 |
|
Total Liabilities |
|
$ |
9,279,378 |
|
|
$ |
8,872,775 |
|
|
|
|
|
|
||||
Stockholders’ Equity: |
|
|
|
|
||||
Preferred stock, |
|
$ |
80 |
|
|
$ |
80 |
|
Preferred stock, |
|
|
110 |
|
|
|
110 |
|
Common stock, |
|
|
1,021 |
|
|
|
1,019 |
|
Additional paid-in capital, in excess of par |
|
|
3,709,534 |
|
|
|
3,698,767 |
|
Accumulated deficit |
|
|
(1,840,399 |
) |
|
|
(1,817,759 |
) |
Accumulated other comprehensive income |
|
|
10,122 |
|
|
|
17,698 |
|
Total Stockholders’ Equity |
|
$ |
1,880,468 |
|
|
$ |
1,899,915 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
11,159,846 |
|
|
$ |
10,772,690 |
|
| (1) |
Includes approximately |
|
MFA FINANCIAL, INC.
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(In Thousands, Except Per Share Amounts) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||||||
Interest Income: |
|
|
|
|
|
|
|
|
||||||||
Residential whole loans |
|
$ |
157,406 |
|
|
$ |
140,538 |
|
|
$ |
480,788 |
|
|
$ |
388,096 |
|
Securities, at fair value |
|
|
14,742 |
|
|
|
11,945 |
|
|
|
41,363 |
|
|
|
29,201 |
|
Other interest-earning assets |
|
|
4,001 |
|
|
|
2,587 |
|
|
|
6,341 |
|
|
|
7,560 |
|
Cash and cash equivalent investments |
|
|
5,825 |
|
|
|
4,095 |
|
|
|
17,144 |
|
|
|
10,863 |
|
Interest Income |
|
$ |
181,974 |
|
|
$ |
159,165 |
|
|
$ |
545,636 |
|
|
$ |
435,720 |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Expense: |
|
|
|
|
|
|
|
|
||||||||
Asset-backed and other collateralized financing arrangements |
|
$ |
126,833 |
|
|
$ |
109,088 |
|
|
$ |
377,030 |
|
|
$ |
293,852 |
|
Other interest expense |
|
|
4,516 |
|
|
|
3,936 |
|
|
|
16,678 |
|
|
|
11,853 |
|
Interest Expense |
|
$ |
131,349 |
|
|
$ |
113,024 |
|
|
$ |
393,708 |
|
|
$ |
305,705 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net Interest Income |
|
$ |
50,625 |
|
|
$ |
46,141 |
|
|
$ |
151,928 |
|
|
$ |
130,015 |
|
|
|
|
|
|
|
|
|
|
||||||||
Reversal/(Provision) for Credit Losses on Residential Whole Loans |
|
$ |
1,942 |
|
|
$ |
1,258 |
|
|
$ |
3,481 |
|
|
$ |
977 |
|
Reversal/(Provision) for Credit Losses on Other Assets |
|
|
— |
|
|
|
— |
|
|
|
(1,135 |
) |
|
|
— |
|
Net Interest Income after Reversal/(Provision) for Credit Losses |
|
$ |
52,567 |
|
|
$ |
47,399 |
|
|
$ |
154,274 |
|
|
$ |
130,992 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other Income/(Loss), net: |
|
|
|
|
|
|
|
|
||||||||
Net gain/(loss) on residential whole loans measured at fair value through earnings |
|
$ |
143,416 |
|
|
$ |
(132,894 |
) |
|
$ |
148,333 |
|
|
$ |
(134,423 |
) |
Impairment and other net gain/(loss) on securities and other portfolio investments |
|
|
22,928 |
|
|
|
(14,161 |
) |
|
|
15,310 |
|
|
|
(15,799 |
) |
Net gain/(loss) on real estate owned |
|
|
241 |
|
|
|
2,409 |
|
|
|
3,112 |
|
|
|
8,504 |
|
Net gain/(loss) on derivatives used for risk management purposes |
|
|
(56,818 |
) |
|
|
34,860 |
|
|
|
9,210 |
|
|
|
74,103 |
|
Net gain/(loss) on securitized debt measured at fair value through earnings |
|
|
(75,273 |
) |
|
|
36,431 |
|
|
|
(108,377 |
) |
|
|
12,100 |
|
Lima One mortgage banking income |
|
|
8,921 |
|
|
|
12,109 |
|
|
|
24,468 |
|
|
|
32,562 |
|
Net realized gain/(loss) on residential whole loans held at carrying value |
|
|
— |
|
|
|
— |
|
|
|
418 |
|
|
|
— |
|
Other, net |
|
|
(3,131 |
) |
|
|
1,418 |
|
|
|
61 |
|
|
|
9,924 |
|
Other Income/(Loss), net |
|
$ |
40,284 |
|
|
$ |
(59,828 |
) |
|
$ |
92,535 |
|
|
$ |
(13,029 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Operating and Other Expense: |
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
$ |
22,417 |
|
|
$ |
24,051 |
|
|
$ |
69,632 |
|
|
$ |
66,452 |
|
Other general and administrative expense |
|
|
11,430 |
|
|
|
10,075 |
|
|
|
34,260 |
|
|
|
31,272 |
|
Loan servicing, financing and other related costs |
|
|
8,503 |
|
|
|
8,989 |
|
|
|
24,262 |
|
|
|
26,126 |
|
Amortization of intangible assets |
|
|
800 |
|
|
|
800 |
|
|
|
2,400 |
|
|
|
3,400 |
|
Operating and Other Expense |
|
$ |
43,150 |
|
|
$ |
43,915 |
|
|
$ |
130,554 |
|
|
$ |
127,250 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income/(loss) before income taxes |
|
$ |
49,701 |
|
|
$ |
(56,344 |
) |
|
$ |
116,255 |
|
|
$ |
(9,287 |
) |
Provision for/(benefit from) income taxes |
|
$ |
1,518 |
|
|
$ |
94 |
|
|
$ |
2,913 |
|
|
$ |
295 |
|
Net Income/(Loss) |
|
$ |
48,183 |
|
|
$ |
(56,438 |
) |
|
$ |
113,342 |
|
|
$ |
(9,582 |
) |
Less Preferred Stock Dividend Requirement |
|
$ |
8,219 |
|
|
$ |
8,219 |
|
|
$ |
24,656 |
|
|
$ |
24,656 |
|
Net Income/(Loss) Available to Common Stock and Participating Securities |
|
$ |
39,964 |
|
|
$ |
(64,657 |
) |
|
$ |
88,686 |
|
|
$ |
(34,238 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic Earnings/(Loss) per Common Share |
|
$ |
0.38 |
|
|
$ |
(0.64 |
) |
|
$ |
0.85 |
|
|
$ |
(0.34 |
) |
Diluted Earnings/(Loss) per Common Share |
|
$ |
0.37 |
|
|
$ |
(0.64 |
) |
|
$ |
0.83 |
|
|
$ |
(0.34 |
) |
Segment Reporting
At September 30, 2024, the Company’s reportable segments include (i) mortgage-related assets and (ii) Lima One. The Corporate column in the table below primarily consists of corporate cash and related interest income, investments in loan originators and related economics, general and administrative expenses not directly attributable to Lima One, interest expense on unsecured convertible senior notes, securitization issuance costs, and preferred stock dividends.
The following tables summarize segment financial information, which in total reconciles to the same data for the Company as a whole:
(In Thousands) |
|
Mortgage-
|
|
Lima One |
|
Corporate |
|
Total |
||||||||
Three months ended September 30, 2024 |
|
|
|
|
|
|
|
|
||||||||
Interest Income |
|
$ |
101,374 |
|
|
$ |
77,234 |
|
|
$ |
3,366 |
|
|
$ |
181,974 |
|
Interest Expense |
|
|
72,373 |
|
|
|
54,460 |
|
|
|
4,516 |
|
|
|
131,349 |
|
Net Interest Income/(Expense) |
|
$ |
29,001 |
|
|
$ |
22,774 |
|
|
$ |
(1,150 |
) |
|
$ |
50,625 |
|
Reversal/(Provision) for Credit Losses on Residential Whole Loans |
|
|
1,942 |
|
|
|
— |
|
|
|
— |
|
|
|
1,942 |
|
Reversal/(Provision) for Credit Losses on Other Assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses |
|
$ |
30,943 |
|
|
$ |
22,774 |
|
|
$ |
(1,150 |
) |
|
$ |
52,567 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net gain/(loss) on residential whole loans measured at fair value through earnings |
|
$ |
117,957 |
|
|
$ |
25,459 |
|
|
$ |
— |
|
|
$ |
143,416 |
|
Impairment and other net gain/(loss) on securities and other portfolio investments |
|
|
24,431 |
|
|
|
— |
|
|
|
(1,503 |
) |
|
|
22,928 |
|
Net gain on real estate owned |
|
|
656 |
|
|
|
(415 |
) |
|
|
— |
|
|
|
241 |
|
Net gain/(loss) on derivatives used for risk management purposes |
|
|
(42,823 |
) |
|
|
(13,995 |
) |
|
|
— |
|
|
|
(56,818 |
) |
Net gain/(loss) on securitized debt measured at fair value through earnings |
|
|
(53,766 |
) |
|
|
(21,507 |
) |
|
|
— |
|
|
|
(75,273 |
) |
Lima One mortgage banking income |
|
|
— |
|
|
|
8,921 |
|
|
|
— |
|
|
|
8,921 |
|
Net realized gain/(loss) on residential whole loans held at carrying value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other, net |
|
|
163 |
|
|
|
(3,757 |
) |
|
|
463 |
|
|
|
(3,131 |
) |
Other Income/(Loss), net |
|
$ |
46,618 |
|
|
$ |
(5,294 |
) |
|
$ |
(1,040 |
) |
|
$ |
40,284 |
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
$ |
— |
|
|
$ |
10,757 |
|
|
$ |
11,660 |
|
|
$ |
22,417 |
|
Other general and administrative expense |
|
|
70 |
|
|
|
5,068 |
|
|
|
6,292 |
|
|
|
11,430 |
|
Loan servicing, financing and other related costs |
|
|
4,297 |
|
|
|
595 |
|
|
|
3,611 |
|
|
|
8,503 |
|
Amortization of intangible assets |
|
|
— |
|
|
|
800 |
|
|
|
— |
|
|
|
800 |
|
Income/(loss) before income taxes |
|
$ |
73,194 |
|
|
$ |
260 |
|
|
$ |
(23,753 |
) |
|
$ |
49,701 |
|
Provision for/(benefit from) income taxes |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,518 |
|
|
$ |
1,518 |
|
Net Income/(Loss) |
|
$ |
73,194 |
|
|
$ |
260 |
|
|
$ |
(25,271 |
) |
|
$ |
48,183 |
|
|
|
|
|
|
|
|
|
|
||||||||
Less Preferred Stock Dividend Requirement |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,219 |
|
|
$ |
8,219 |
|
Net Income/(Loss) Available to Common Stock and Participating Securities |
|
$ |
73,194 |
|
|
$ |
260 |
|
|
$ |
(33,490 |
) |
|
$ |
39,964 |
|
(Dollars in Thousands) |
|
Mortgage-
|
|
Lima One |
|
Corporate |
|
Total |
||||
September 30, 2024 |
|
|
|
|
|
|
|
|
||||
Total Assets |
|
$ |
6,968,000 |
|
$ |
3,831,181 |
|
$ |
360,665 |
|
$ |
11,159,846 |
|
|
|
|
|
|
|
|
|
||||
December 31, 2023 |
|
|
|
|
|
|
|
|
||||
Total Assets |
|
$ |
6,370,237 |
|
$ |
4,000,932 |
|
$ |
401,521 |
|
$ |
10,772,690 |
Reconciliation of GAAP Net Income to non-GAAP Distributable Earnings
“Distributable earnings” is a non-GAAP financial measure of our operating performance, within the meaning of Regulation G and Item 10(e) of Regulation S-K, as promulgated by the Securities and Exchange Commission. Distributable earnings is determined by adjusting GAAP net income/(loss) by removing certain unrealized gains and losses, primarily on residential mortgage investments, associated debt, and hedges that are, in each case, accounted for at fair value through earnings, certain realized gains and losses, as well as certain non-cash expenses and securitization-related transaction costs. Realized gains and losses arising from loans sold to third-parties by Lima One shortly after the origination of such loans are included in Distributable earnings. The transaction costs are primarily comprised of costs only incurred at the time of execution of our securitizations and include costs such as underwriting fees, legal fees, diligence fees, bank fees and other similar transaction related expenses. These costs are all incurred prior to or at the execution of our securitizations and do not recur. Recurring expenses, such as servicing fees, custodial fees, trustee fees and other similar ongoing fees are not excluded from distributable earnings. During the third quarter of 2024, the Company changed the determination of Distributable earnings to exclude depreciation, for consistency with the reporting of similar non-cash expenses; this change has been reflected in all periods presented. Management believes that the adjustments made to GAAP earnings result in the removal of (i) income or expenses that are not reflective of the longer term performance of our investment portfolio, (ii) certain non-cash expenses, and (iii) expense items required to be recognized solely due to the election of the fair value option on certain related residential mortgage assets and associated liabilities. Distributable earnings is one of the factors that our Board of Directors considers when evaluating distributions to our shareholders. Accordingly, we believe that the adjustments to compute Distributable earnings specified below provide investors and analysts with additional information to evaluate our financial results.
Distributable earnings should be used in conjunction with results presented in accordance with GAAP. Distributable earnings does not represent and should not be considered as a substitute for net income or cash flows from operating activities, each as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies.
The following table provides a reconciliation of our GAAP net income/(loss) used in the calculation of basic EPS to our non-GAAP Distributable earnings for the quarterly periods below:
|
|
Quarter Ended |
||||||||||||||||||
(In Thousands, Except Per Share Amounts) |
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
GAAP Net income/(loss) used in the calculation of basic EPS |
|
$ |
39,870 |
|
|
$ |
33,614 |
|
|
$ |
14,827 |
|
|
$ |
81,527 |
|
|
$ |
(64,657 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized and realized gains and losses on: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential whole loans held at fair value |
|
|
(143,416 |
) |
|
|
(16,430 |
) |
|
|
11,513 |
|
|
|
(224,272 |
) |
|
|
132,894 |
|
Securities held at fair value |
|
|
(17,107 |
) |
|
|
4,026 |
|
|
|
4,776 |
|
|
|
(21,371 |
) |
|
|
13,439 |
|
Residential whole loans and securities at carrying value |
|
|
(7,324 |
) |
|
|
(2,668 |
) |
|
|
(418 |
) |
|
|
332 |
|
|
|
— |
|
Interest rate swaps |
|
|
84,629 |
|
|
|
10,237 |
|
|
|
(23,182 |
) |
|
|
97,400 |
|
|
|
(9,433 |
) |
Securitized debt held at fair value |
|
|
71,475 |
|
|
|
7,597 |
|
|
|
20,169 |
|
|
|
108,693 |
|
|
|
(40,229 |
) |
Investments in loan origination partners |
|
|
1,503 |
|
|
|
1,484 |
|
|
|
— |
|
|
|
254 |
|
|
|
722 |
|
Expense items: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangible assets |
|
|
800 |
|
|
|
800 |
|
|
|
800 |
|
|
|
800 |
|
|
|
800 |
|
Equity based compensation |
|
|
2,104 |
|
|
|
3,899 |
|
|
|
6,243 |
|
|
|
3,635 |
|
|
|
4,447 |
|
Securitization-related transaction costs |
|
|
3,485 |
|
|
|
3,009 |
|
|
|
1,340 |
|
|
|
2,702 |
|
|
|
3,217 |
|
Depreciation |
|
|
2,604 |
|
|
|
822 |
|
|
|
889 |
|
|
|
869 |
|
|
|
841 |
|
Total adjustments |
|
|
(1,247 |
) |
|
|
12,776 |
|
|
|
22,130 |
|
|
|
(30,958 |
) |
|
|
106,698 |
|
Distributable earnings |
|
$ |
38,623 |
|
|
$ |
46,390 |
|
|
$ |
36,957 |
|
|
$ |
50,569 |
|
|
$ |
42,041 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP earnings/(loss) per basic common share |
|
$ |
0.38 |
|
|
$ |
0.32 |
|
|
$ |
0.14 |
|
|
$ |
0.80 |
|
|
$ |
(0.64 |
) |
Distributable earnings per basic common share |
|
$ |
0.37 |
|
|
$ |
0.45 |
|
|
$ |
0.36 |
|
|
$ |
0.49 |
|
|
$ |
0.41 |
|
Weighted average common shares for basic earnings per share |
|
|
103,647 |
|
|
|
103,446 |
|
|
|
103,175 |
|
|
|
102,266 |
|
|
|
102,255 |
|
Reconciliation of GAAP Book Value per Common Share to non-GAAP Economic Book Value per Common Share
“Economic book value” is a non-GAAP financial measure of our financial position. To calculate our Economic book value, our portfolios of Residential whole loans and securitized debt held at carrying value are adjusted to their fair value, rather than the carrying value that is required to be reported under the GAAP accounting model applied to these financial instruments. These adjustments are also reflected in the table below in our end of period stockholders’ equity. Management considers that Economic book value provides investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value changes for all of our investment activities, irrespective of the accounting model applied for GAAP reporting purposes. Economic book value does not represent and should not be considered as a substitute for Stockholders’ Equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies.
The following table provides a reconciliation of our GAAP book value per common share to our non-GAAP Economic book value per common share as of the quarterly periods below:
|
|
Quarter Ended: |
||||||||||||||||||
(In Millions, Except Per Share Amounts) |
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
||||||||||
GAAP Total Stockholders’ Equity |
|
$ |
1,880.5 |
|
|
$ |
1,883.2 |
|
|
$ |
1,884.2 |
|
|
$ |
1,899.9 |
|
|
$ |
1,848.5 |
|
Preferred Stock, liquidation preference |
|
|
(475.0 |
) |
|
|
(475.0 |
) |
|
|
(475.0 |
) |
|
|
(475.0 |
) |
|
|
(475.0 |
) |
GAAP Stockholders’ Equity for book value per common share |
|
|
1,405.5 |
|
|
|
1,408.2 |
|
|
|
1,409.2 |
|
|
|
1,424.9 |
|
|
|
1,373.5 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustment to Residential whole loans, at carrying value |
|
|
6.7 |
|
|
|
(26.8 |
) |
|
|
(35.4 |
) |
|
|
(35.6 |
) |
|
|
(85.3 |
) |
Fair value adjustment to Securitized debt, at carrying value |
|
|
64.3 |
|
|
|
82.3 |
|
|
|
88.4 |
|
|
|
95.6 |
|
|
|
122.5 |
|
Stockholders’ Equity including fair value adjustments to Residential whole loans and Securitized debt held at carrying value (Economic book value) |
|
$ |
1,476.5 |
|
|
$ |
1,463.7 |
|
|
$ |
1,462.2 |
|
|
$ |
1,484.9 |
|
|
$ |
1,410.7 |
|
GAAP book value per common share |
|
$ |
13.77 |
|
|
$ |
13.80 |
|
|
$ |
13.80 |
|
|
$ |
13.98 |
|
|
$ |
13.48 |
|
Economic book value per common share |
|
$ |
14.46 |
|
|
$ |
14.34 |
|
|
$ |
14.32 |
|
|
$ |
14.57 |
|
|
$ |
13.84 |
|
Number of shares of common stock outstanding |
|
|
102.1 |
|
|
|
102.1 |
|
|
|
102.1 |
|
|
|
101.9 |
|
|
|
101.9 |
|
Cautionary Note Regarding Forward-Looking Statements
When used in this press release or other written or oral communications, statements that are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “could,” “would,” “may,” the negative of these words or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. These forward-looking statements include information about possible or assumed future results with respect to MFA’s business, financial condition, liquidity, results of operations, plans and objectives. Among the important factors that could cause our actual results to differ materially from those projected in any forward-looking statements that we make are: general economic developments and trends and the performance of the housing, real estate, mortgage finance, broader financial markets; inflation, increases in interest rates and changes in the market (i.e., fair) value of MFA’s residential whole loans, MBS, securitized debt and other assets, as well as changes in the value of MFA’s liabilities accounted for at fair value through earnings; the effectiveness of hedging transactions; changes in the prepayment rates on residential mortgage assets, an increase of which could result in a reduction of the yield on certain investments in its portfolio and could require MFA to reinvest the proceeds received by it as a result of such prepayments in investments with lower coupons, while a decrease in which could result in an increase in the interest rate duration of certain investments in MFA’s portfolio making their valuation more sensitive to changes in interest rates and could result in lower forecasted cash flows; credit risks underlying MFA’s assets, including changes in the default rates and management’s assumptions regarding default rates and loss severities on the mortgage loans in MFA’s residential whole loan portfolio; MFA’s ability to borrow to finance its assets and the terms, including the cost, maturity and other terms, of any such borrowings; implementation of or changes in government regulations or programs affecting MFA’s business; MFA’s estimates regarding taxable income, the actual amount of which is dependent on a number of factors, including, but not limited to, changes in the amount of interest income and financing costs, the method elected by MFA to accrete the market discount on residential whole loans and the extent of prepayments, realized losses and changes in the composition of MFA’s residential whole loan portfolios that may occur during the applicable tax period, including gain or loss on any MBS disposals or whole loan modifications, foreclosures and liquidations; the timing and amount of distributions to stockholders, which are declared and paid at the discretion of MFA’s Board of Directors and will depend on, among other things, MFA’s taxable income, its financial results and overall financial condition and liquidity, maintenance of its REIT qualification and such other factors as MFA’s Board of Directors deems relevant; MFA’s ability to maintain its qualification as a REIT for federal income tax purposes; MFA’s ability to maintain its exemption from registration under the Investment Company Act of 1940, as amended (or the “Investment Company Act”), including statements regarding the concept release issued by the Securities and Exchange Commission (“SEC”) relating to interpretive issues under the Investment Company Act with respect to the status under the Investment Company Act of certain companies that are engaged in the business of acquiring mortgages and mortgage-related interests; MFA’s ability to continue growing its residential whole loan portfolio, which is dependent on, among other things, the supply of loans offered for sale in the market; targeted or expected returns on our investments in recently-originated mortgage loans, the performance of which is, similar to our other mortgage loan investments, subject to, among other things, differences in prepayment risk, credit risk and financing costs associated with such investments; risks associated with the ongoing operation of Lima One Holdings, LLC (including, without limitation, industry competition, unanticipated expenditures relating to or liabilities arising from its operation (including, among other things, a failure to realize management’s assumptions regarding expected growth in business purpose loan (BPL) origination volumes and credit risks underlying BPLs, including changes in the default rates and management’s assumptions regarding default rates and loss severities on the BPLs originated by Lima One)); expected returns on MFA’s investments in nonperforming residential whole loans (“NPLs”), which are affected by, among other things, the length of time required to foreclose upon, sell, liquidate or otherwise reach a resolution of the property underlying the NPL, home price values, amounts advanced to carry the asset (e.g., taxes, insurance, maintenance expenses, etc. on the underlying property) and the amount ultimately realized upon resolution of the asset; risks associated with our investments in MSR-related assets, including servicing, regulatory and economic risks; risks associated with our investments in loan originators; risks associated with investing in real estate assets generally, including changes in business conditions and the general economy; and other risks, uncertainties and factors, including those described in the annual, quarterly and current reports that we file with the SEC. These forward-looking statements are based on beliefs, assumptions and expectations of MFA’s future performance, taking into account information currently available. Readers and listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect MFA. Except as required by law, MFA is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106449100/en/
INVESTOR CONTACT:
InvestorRelations@mfafinancial.com
212-207-6488
www.mfafinancial.com
MEDIA CONTACT:
H/Advisors Abernathy
Tom Johnson
212-371-5999
Source: MFA Financial, Inc.
FAQ
What was MFA Financial's net income for Q3 2024?
What dividend did MFA Financial pay in Q3 2024?
What was MFA Financial's economic book value per share in Q3 2024?
How much in residential mortgage loans did MFA Financial purchase in Q3 2024?
