In This Article:
-
Total Economic Return: 1.9% for the first quarter, including a dividend increase to $0.36.
-
Economic Book Value: Decreased by 0.6% in the first quarter.
-
Loan and Securities Sourcing: $875 million sourced, including $383 million of non-QM loans, $268 million of agency MBS, and $223 million of business purpose loans.
-
Leverage: Overall leverage at 5.1 times; recourse leverage at 1.8 times.
-
GAAP Book Value: $13.28 per share at March 31.
-
Economic Book Value: $13.84 per share at March 31.
-
GAAP Earnings: $41.2 million or $0.32 per basic common share for the first quarter.
-
Net Interest Income: $57.5 million for the first quarter.
-
Lima One Mortgage Banking Income: $5.4 million for the quarter.
-
Dividend: Increased to $0.36 per common share for the first quarter.
-
Distributable Earnings: $30.5 million or $0.29 per basic common share for the first quarter.
-
Investment Portfolio Growth: Increased to $10.7 billion from $10.5 billion at year-end.
-
Non-QM Loans Sourced: $383 million with an average coupon of 7.8%.
-
Agency MBS Portfolio: Grew to $1.6 billion.
-
Lima One Business Purpose Loans: $213 million originated with an average coupon of 9.7%.
-
60-plus Day Delinquencies: Stable at 7.5% for the entire loan portfolio.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
MFA Financial Inc (NYSE:MFA) delivered a total economic return of 1.9% for the first quarter, including an increased dividend of $0.36.
-
The company sourced $875 million of loans and securities across target asset classes, demonstrating active portfolio management.
-
MFA's leverage remained stable with overall leverage at 5.1 times and recourse leverage at 1.8 times, only slightly higher than year-end.
-
83% of loan financing and 70% of all liabilities were non-mark-to-market, providing stability during market volatility.
-
The company continues to see strong demand in securitization markets, with deals being oversubscribed even during volatile trading sessions.
Negative Points
-
Economic book value decreased modestly by 0.6% in the first quarter.
-
Lima One's mortgage banking income declined from $8.5 million in Q4 to $5.4 million in Q1 due to lower origination volumes.
-
Distributable earnings decreased to $0.29 per basic common share from $0.39 in the previous quarter.
-
The company expects short-term increases in realized credit losses as they resolve challenged assets in the transitional loan portfolio.
-
Subsequent to quarter-end, economic book value is estimated to be down approximately 2% to 4% due to wider spreads.