MFA Financial, Inc. Announces Fourth Quarter and Full Year 2023 Financial Results
Fourth Quarter 2023 Financial Results:
-
MFA generated GAAP net income for the fourth quarter of
$81.5 million , or$0.80 per basic and$0.76 per diluted common share. Distributable earnings, a non-GAAP financial measure, were$49.7 million , or$0.49 per common share. -
GAAP book value at
December 31, 2023 was$13.98 per common share. Economic book value, a non-GAAP financial measure, was$14.57 per common share. - Total economic return was 7.8% for the fourth quarter.
-
MFA closed the year with unrestricted cash of
$318.0 million . -
MFA paid a regular cash dividend of
$0.35 per common share onJanuary 31, 2024 .
Full Year 2023 Highlights:
- MFA delivered a total stockholder return of 30.7% for 2023.
-
GAAP net income was
$47.3 million , or$0.46 per basic and diluted common share, up from$(264.5 million) , or$(2.57) per common share, in 2022. -
Distributable earnings were
$1.59 per common share in 2023, down from$1.85 per common share in 2022. -
MFA paid quarterly dividends of
$0.35 per common share throughout 2023, totaling$1.40 per common share. - Total economic return was 2.7% for 2023.
- Asset yield averaged 6.16% in 2023, up from 5.20% in 2022.
- Net interest spread averaged 2.05% in 2023, up from 1.74% in 2022.
-
Loan acquisitions were
$3.0 billion , including$2.1 billion of funded originations of business purpose loans (including draws on Transitional loans) and$0.9 billion of Non-QM loan acquisitions. -
MFA added
$456.7 million of Agency MBS throughout 2023. -
MFA completed eight securitizations in 2023 collateralized by
$2.2 billion unpaid principal balance (UPB) of loans, including$1.4 billion UPB of Non-QM loans,$418.6 million UPB of SFR loans and$376.1 million UPB of Transitional loans. -
Interest income totaled
$605.6 million , up from$482.4 million in 2022. -
Lima One generated$43.4 million of origination, servicing and other fee income.
“In another historically volatile year, MFA stockholders earned a total return of 30.7% in 2023,” said
Commenting on the quarter,
“Our net interest spread and net interest margin both remained healthy at 2.13% and 2.96%, respectively. While delinquencies in our Purchased Performing Loan portfolios rose modestly, they remain low and we believe are mitigated by proactive asset management. We completed two securitizations during the fourth quarter totaling over
“We repurchased
Q4 2023 Portfolio Activity
-
Loan acquisitions were
$860.4 million , including$572.9 million of funded originations of business purpose loans (including draws on Transitional loans) and$287.5 million of Non-QM loan acquisitions, bringing MFA’s residential whole loan balance to$9.0 billion . -
Lima One funded$417.0 million of new business purpose loans with a maximum loan amount of$594.0 million . Further,$155.9 million of draws were funded on previously originated Transitional loans.Lima One generated$10.8 million of origination, servicing, and other fee income. -
MFA added
$22.3 million of Agency MBS during the quarter, bringing its total Securities portfolio to$746.1 million . -
Asset dispositions included
$78.5 million of Non-QM loans and$18.2 million of MSR-related securities. -
MFA continued to reduce its REO portfolio, selling 71 properties in the fourth quarter for aggregate proceeds of
$22.6 million and generating$2.2 million of gains. - 60+ day delinquencies (measured as a percentage of UPB) for Purchased Performing Loans increased to 3.8% from 3.1% in the third quarter. Combined Purchased Credit Deteriorated and Purchased Non-Performing 60+ day delinquencies declined to 24.5% from 25.9% in the third quarter.
-
MFA completed two loan securitizations during the quarter, collateralized by
$520.1 million UPB of loans, including$294.6 million of Non-QM loans and$225.5 million 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
$3.3 billion . AtDecember 31, 2023 , these swaps had a weighted average fixed pay interest rate of 1.85% and a weighted average variable receive interest rate of 5.38%. -
MFA estimates the net effective duration of its investment portfolio at
December 31, 2023 declined to 0.91 from 1.05 atSeptember 30, 2023 . -
MFA’s Debt/Net Equity Ratio was 4.5x and recourse leverage was 1.7x at
December 31, 2023 .
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The following table presents MFA’s asset allocation as of
Table 1 - Asset Allocation |
||||||||||||||||||||||||||||
At |
|
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 |
|
$ |
7,918 |
|
|
$ |
418 |
|
|
$ |
705 |
|
|
$ |
746 |
|
|
$ |
110 |
|
|
$ |
644 |
|
|
$ |
10,541 |
|
Receivable/(Payable) for Unsettled Transactions |
|
|
(104 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(104 |
) |
Financing Agreements with Non-mark-to-market Collateral Provisions |
|
|
(1,217 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,217 |
) |
Financing Agreements with Mark-to-market Collateral Provisions |
|
|
(1,348 |
) |
|
|
(144 |
) |
|
|
(220 |
) |
|
|
(623 |
) |
|
|
(25 |
) |
|
|
— |
|
|
|
(2,360 |
) |
Securitized Debt |
|
|
(4,234 |
) |
|
|
(234 |
) |
|
|
(272 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
|
(4,751 |
) |
Convertible Senior Notes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(209 |
) |
|
|
(209 |
) |
Net Equity Allocated |
|
$ |
1,015 |
|
|
$ |
40 |
|
|
$ |
213 |
|
|
$ |
123 |
|
|
$ |
74 |
|
|
$ |
435 |
|
|
$ |
1,900 |
|
Debt/Net Equity Ratio (4) |
|
6.7 x |
|
9.5 x |
|
2.3 x |
|
5.1 x |
|
0.5 x |
|
|
|
4.5 x |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
For the Quarter Ended |
|
|
|
|
|
|
|
|
||||||||||||||||||||
Yield on Average Interest Earning Assets (5) |
|
|
6.22 |
% |
|
|
6.49 |
% |
|
|
9.65 |
% |
|
|
7.20 |
% |
|
|
N/A |
|
|
|
|
|
6.46 |
% |
||
Less Average Cost of Funds (6) |
|
|
(4.43 |
) |
|
|
(2.68 |
) |
|
|
(3.63 |
) |
|
|
(3.75 |
) |
|
|
(6.03 |
) |
|
|
|
|
(4.33 |
) |
||
Net Interest Rate Spread |
|
|
1.79 |
% |
|
|
3.81 |
% |
|
|
6.02 |
% |
|
|
3.45 |
% |
|
|
(6.03 |
)% |
|
|
|
|
2.13 |
% |
(1) |
Includes |
(2) |
At |
(3) |
Includes |
(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 |
(6) |
Average cost of funds includes interest on financing agreements, Convertible 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 |
The following table presents the activity for our residential mortgage asset portfolio for the three months ended
Table 2 - Investment Portfolio Activity Q4 2023 |
|||||||||||||||||||
(In Millions) |
|
|
|
Runoff (1) |
|
Acquisitions (2) |
|
Other (3) |
|
|
|
Change |
|||||||
Residential whole loans and REO |
|
$ |
8,537 |
|
$ |
(400) |
|
$ |
860 |
|
$ |
154 |
|
$ |
9,151 |
|
$ |
614 |
|
Securities, at fair value |
|
|
724 |
|
|
(8) |
|
|
22 |
|
|
8 |
|
|
746 |
|
|
22 |
|
Totals |
|
$ |
9,261 |
|
$ |
(408) |
|
$ |
882 |
|
$ |
162 |
|
$ |
9,897 |
|
$ |
636 |
(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 |
||||||||||||||||||||||
|
|
Held at Carrying Value |
|
Held at Fair Value |
|
Total |
||||||||||||||||
(Dollars in Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased Performing Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-QM loans |
|
$ |
843,884 |
|
|
$ |
987,282 |
|
|
$ |
2,961,693 |
|
$ |
2,372,548 |
|
$ |
3,805,577 |
|
|
$ |
3,359,830 |
|
Transitional loans (1) |
|
|
35,467 |
|
|
|
75,188 |
|
|
|
2,326,029 |
|
|
1,342,032 |
|
|
2,361,496 |
|
|
|
1,417,220 |
|
Single-family rental loans |
|
|
172,213 |
|
|
|
210,833 |
|
|
|
1,462,583 |
|
|
1,165,741 |
|
|
1,634,796 |
|
|
|
1,376,574 |
|
Seasoned performing loans |
|
|
68,945 |
|
|
|
82,932 |
|
|
|
— |
|
|
— |
|
|
68,945 |
|
|
|
82,932 |
|
Agency eligible investor loans |
|
|
— |
|
|
|
— |
|
|
|
55,779 |
|
|
51,094 |
|
|
55,779 |
|
|
|
51,094 |
|
Total Purchased Performing Loans |
|
$ |
1,120,509 |
|
|
$ |
1,356,235 |
|
|
$ |
6,806,084 |
|
$ |
4,931,415 |
|
$ |
7,926,593 |
|
|
$ |
6,287,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased Credit Deteriorated Loans |
|
$ |
429,726 |
|
|
$ |
470,294 |
|
|
$ |
— |
|
$ |
— |
|
$ |
429,726 |
|
|
$ |
470,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Credit Losses |
|
$ |
(20,451 |
) |
|
$ |
(35,314 |
) |
|
$ |
— |
|
$ |
— |
|
$ |
(20,451 |
) |
|
$ |
(35,314 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased Non-Performing Loans |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
705,424 |
|
$ |
796,109 |
|
$ |
705,424 |
|
|
$ |
796,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Residential Whole Loans |
|
$ |
1,529,784 |
|
|
$ |
1,791,215 |
|
|
$ |
7,511,508 |
|
$ |
5,727,524 |
|
$ |
9,041,292 |
|
|
$ |
7,518,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of loans |
|
|
6,326 |
|
|
|
7,126 |
|
|
|
19,075 |
|
|
16,717 |
|
|
25,401 |
|
|
|
23,843 |
|
(1) |
As of |
Table 4 - Yields and average balances |
|||||||||||||||||||||||||||
|
|
For the Three-Month Period Ended |
|||||||||||||||||||||||||
(Dollars in Thousands) |
|
|
|
|
|
|
|||||||||||||||||||||
|
|
Interest |
|
Average Balance |
|
Average Yield |
|
Interest |
|
Average Balance |
|
Average Yield |
|
Interest |
|
Average Balance |
|
Average Yield |
|||||||||
Purchased Performing Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-QM loans |
|
$ |
51,997 |
|
$ |
4,111,425 |
|
5.06 |
% |
|
$ |
51,724 |
|
$ |
4,053,924 |
|
5.10 |
% |
|
$ |
41,621 |
|
$ |
3,767,900 |
|
4.42 |
% |
Transitional loans |
|
|
48,358 |
|
|
2,249,974 |
|
8.60 |
% |
|
|
40,223 |
|
|
1,927,533 |
|
8.35 |
% |
|
|
26,134 |
|
|
1,335,471 |
|
7.83 |
% |
Single-family rental loans |
|
|
25,598 |
|
|
1,702,940 |
|
6.01 |
% |
|
|
24,087 |
|
|
1,639,626 |
|
5.88 |
% |
|
|
20,237 |
|
|
1,483,529 |
|
5.46 |
% |
Seasoned performing loans |
|
|
1,191 |
|
|
71,207 |
|
6.69 |
% |
|
|
1,095 |
|
|
74,345 |
|
5.89 |
% |
|
|
1,283 |
|
|
84,876 |
|
6.05 |
% |
Agency eligible investor loans |
|
|
512 |
|
|
69,436 |
|
2.95 |
% |
|
|
486 |
|
|
71,306 |
|
2.73 |
% |
|
|
7,631 |
|
|
1,021,007 |
|
2.99 |
% |
Total Purchased Performing Loans |
|
|
127,656 |
|
|
8,204,982 |
|
6.22 |
% |
|
|
117,615 |
|
|
7,766,734 |
|
6.06 |
% |
|
|
96,906 |
|
|
7,692,783 |
|
5.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased Credit Deteriorated Loans |
|
|
7,051 |
|
|
434,650 |
|
6.49 |
% |
|
|
7,371 |
|
|
444,568 |
|
6.63 |
% |
|
|
7,830 |
|
|
474,971 |
|
6.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchased Non-Performing Loans |
|
|
15,080 |
|
|
624,910 |
|
9.65 |
% |
|
|
15,552 |
|
|
648,959 |
|
9.59 |
% |
|
|
20,252 |
|
|
726,303 |
|
11.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Residential Whole Loans |
|
$ |
149,787 |
|
$ |
9,264,542 |
|
6.47 |
% |
|
$ |
140,538 |
|
$ |
8,860,261 |
|
6.34 |
% |
|
$ |
124,988 |
|
$ |
8,894,057 |
|
5.62 |
% |
Table 5 - Net Interest Spread |
||||||
|
|
For the Three-Month Period Ended |
||||
|
|
|
|
|
|
|
Purchased Performing Loans |
|
|
|
|
|
|
Net Yield (1) |
|
6.22 % |
|
6.06 % |
|
5.04 % |
Cost of Funding (2) |
|
4.43 % |
|
4.23 % |
|
3.70 % |
Net Interest Spread |
|
1.79 % |
|
1.83 % |
|
1.34 % |
|
|
|
|
|
|
|
Purchased Credit Deteriorated Loans |
|
|
|
|
|
|
Net Yield (1) |
|
6.49 % |
|
6.63 % |
|
6.59 % |
Cost of Funding (2) |
|
2.68 % |
|
2.43 % |
|
2.13 % |
Net Interest Spread |
|
3.81 % |
|
4.20 % |
|
4.46 % |
|
|
|
|
|
|
|
Purchased Non-Performing Loans |
|
|
|
|
|
|
Net Yield (1) |
|
9.65 % |
|
9.59 % |
|
11.15 % |
Cost of Funding (2) |
|
3.63 % |
|
3.65 % |
|
3.01 % |
Net Interest Spread |
|
6.02 % |
|
5.94 % |
|
8.14 % |
|
|
|
|
|
|
|
Total Residential Whole Loans |
|
|
|
|
|
|
Net Yield (1) |
|
6.47 % |
|
6.34 % |
|
5.62 % |
Cost of Funding (2) |
|
4.29 % |
|
4.10 % |
|
3.56 % |
Net Interest Spread |
|
2.18 % |
|
2.24 % |
|
2.06 % |
(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 |
Table 6 - Credit related metrics/Residential Whole Loans
|
|
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+
|
|
60+ LTV (3) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Past Due Days |
|
|
||||||||||||||||||||||
(Dollars In Thousands) |
|
|
|
|
|
|
|
Current |
|
|
30-59 |
|
|
60-89 |
|
90+ |
|
|
||||||||||||||||
Purchased Performing Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-QM loans (5) |
|
$ |
3,700,052 |
|
$ |
3,934,798 |
|
5.78 |
% |
|
344 |
|
65 |
% |
|
735 |
|
$ |
3,732,327 |
|
$ |
98,017 |
|
$ |
29,587 |
|
$ |
74,867 |
|
2.7 |
% |
|
63.9 |
% |
Transitional loans (1) |
|
|
2,358,909 |
|
|
2,368,121 |
|
9.22 |
|
|
10 |
|
64 |
|
|
747 |
|
|
2,187,161 |
|
|
61,024 |
|
|
26,618 |
|
|
93,318 |
|
5.1 |
|
|
65.1 |
|
Single-family rental loans |
|
|
1,630,442 |
|
|
1,729,923 |
|
6.30 |
|
|
320 |
|
70 |
|
|
738 |
|
|
1,636,810 |
|
|
12,543 |
|
|
12,314 |
|
|
68,256 |
|
4.7 |
|
|
109.1 |
|
Seasoned performing loans |
|
|
68,924 |
|
|
75,715 |
|
4.58 |
|
|
143 |
|
28 |
|
|
725 |
|
|
72,126 |
|
|
1,045 |
|
|
235 |
|
|
2,309 |
|
3.4 |
|
|
33.6 |
|
Agency eligible investor loans |
|
|
55,779 |
|
|
66,830 |
|
3.44 |
|
|
332 |
|
66 |
|
|
758 |
|
|
65,094 |
|
|
1,508 |
|
|
— |
|
|
228 |
|
0.3 |
|
|
73.4 |
|
Total Purchased Performing Loans |
|
$ |
7,814,106 |
|
$ |
8,175,387 |
|
6.86 |
% |
|
240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3.8 |
% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased Credit Deteriorated Loans |
|
$ |
418,109 |
|
$ |
506,828 |
|
4.83 |
% |
|
267 |
|
59 |
% |
|
N/A |
|
$ |
379,970 |
|
$ |
44,731 |
|
$ |
12,814 |
|
$ |
69,313 |
|
16.2 |
% |
|
64.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased Non-Performing Loans |
|
$ |
705,424 |
|
$ |
772,737 |
|
5.21 |
% |
|
270 |
|
62 |
% |
|
N/A |
|
$ |
444,491 |
|
$ |
96,464 |
|
$ |
31,560 |
|
$ |
200,222 |
|
30.0 |
% |
|
70.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential whole loans, total or weighted average |
|
$ |
8,937,639 |
|
$ |
9,454,952 |
|
6.04 |
% |
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
6.6 |
% |
|
|
(1) |
As of |
(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 |
(4) |
Excludes loans for which no Fair Isaac Corporation (“FICO”) score is available. |
(5) |
Excluded from the table above are approximately |
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
Change in Interest Rates |
|
Percentage Change in Portfolio Value |
|
Percentage Change in Total Stockholders’ Equity |
|
|
|
|
|
+100 Basis Point Increase |
|
(1.17) % |
|
(6.53) % |
+ 50 Basis Point Increase |
|
(0.52) % |
|
(2.92) % |
Actual at |
|
— % |
|
— % |
- 50 Basis Point Decrease |
|
0.40 % |
|
2.23 % |
-100 Basis Point Decrease |
|
0.68 % |
|
3.76 % |
CONSOLIDATED BALANCE SHEETS |
||||||||
(In Thousands, Except Per Share Amounts) |
|
|
|
|
||||
|
|
(unaudited) |
|
|
||||
Assets: |
|
|
|
|
||||
Residential whole loans, net ( |
|
$ |
9,041,292 |
|
|
$ |
7,518,739 |
|
Securities, at fair value |
|
|
746,090 |
|
|
|
333,364 |
|
Cash and cash equivalents |
|
|
318,000 |
|
|
|
334,183 |
|
Restricted cash |
|
|
170,211 |
|
|
|
159,898 |
|
Other assets |
|
|
497,097 |
|
|
|
766,221 |
|
Total Assets |
|
$ |
10,772,690 |
|
|
$ |
9,112,405 |
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
||||
Financing agreements ( |
|
$ |
8,536,745 |
|
|
$ |
6,812,086 |
|
Other liabilities |
|
|
336,030 |
|
|
|
311,470 |
|
Total Liabilities |
|
$ |
8,872,775 |
|
|
$ |
7,123,556 |
|
|
|
|
|
|
||||
Stockholders’ Equity: |
|
|
|
|
||||
Preferred stock, |
|
$ |
80 |
|
|
$ |
80 |
|
Preferred stock, |
|
|
110 |
|
|
|
110 |
|
Common stock, and outstanding, respectively |
|
|
1,019 |
|
|
|
1,018 |
|
Additional paid-in capital, in excess of par |
|
|
3,698,767 |
|
|
|
3,684,291 |
|
Accumulated deficit |
|
|
(1,817,759 |
) |
|
|
(1,717,991 |
) |
Accumulated other comprehensive income |
|
|
17,698 |
|
|
|
21,341 |
|
Total Stockholders’ Equity |
|
$ |
1,899,915 |
|
|
$ |
1,988,849 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
10,772,690 |
|
|
$ |
9,112,405 |
|
(1) |
Includes approximately |
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
(In Thousands, Except Per Share Amounts) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
||||||||
Interest Income: |
|
|
|
|
|
|
|
|
||||||||
Residential whole loans |
|
$ |
149,787 |
|
|
$ |
124,988 |
|
|
$ |
537,883 |
|
|
$ |
441,223 |
|
Securities, at fair value |
|
|
13,175 |
|
|
|
12,740 |
|
|
|
42,376 |
|
|
|
28,921 |
|
Other interest-earning assets |
|
|
1,467 |
|
|
|
2,366 |
|
|
|
9,027 |
|
|
|
7,437 |
|
Cash and cash equivalent investments |
|
|
5,448 |
|
|
|
2,783 |
|
|
|
16,311 |
|
|
|
4,838 |
|
Interest Income |
|
$ |
169,877 |
|
|
$ |
142,877 |
|
|
$ |
605,597 |
|
|
$ |
482,419 |
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Expense: |
|
|
|
|
|
|
|
|
||||||||
Asset-backed and other collateralized financing arrangements |
|
$ |
119,665 |
|
|
$ |
83,277 |
|
|
$ |
413,517 |
|
|
$ |
243,083 |
|
Other interest expense |
|
|
3,748 |
|
|
|
3,949 |
|
|
|
15,601 |
|
|
|
15,760 |
|
Interest Expense |
|
$ |
123,413 |
|
|
$ |
87,226 |
|
|
$ |
429,118 |
|
|
$ |
258,843 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net Interest Income |
|
$ |
46,464 |
|
|
$ |
55,651 |
|
|
$ |
176,479 |
|
|
$ |
223,576 |
|
|
|
|
|
|
|
|
|
|
||||||||
Reversal of Provision for Credit Losses on Residential Whole Loans |
|
$ |
7,876 |
|
|
$ |
1,540 |
|
|
$ |
8,853 |
|
|
$ |
2,646 |
|
Provision for Credit Losses on Other Assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(28,579 |
) |
Net Interest Income after Provision for Credit Losses |
|
$ |
54,340 |
|
|
$ |
57,191 |
|
|
$ |
185,332 |
|
|
$ |
197,643 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other Income/(Loss), net: |
|
|
|
|
|
|
|
|
||||||||
Net gain/(loss) on residential whole loans measured at fair value through earnings |
|
$ |
224,273 |
|
|
$ |
(68,828 |
) |
|
$ |
89,850 |
|
|
$ |
(866,762 |
) |
Impairment and other net gain/(loss) on securities and other portfolio investments |
|
|
22,024 |
|
|
|
(8,909 |
) |
|
|
6,225 |
|
|
|
(25,067 |
) |
Net gain on real estate owned |
|
|
888 |
|
|
|
5,602 |
|
|
|
9,392 |
|
|
|
25,379 |
|
Net gain/(loss) on derivatives used for risk management purposes |
|
|
(70,342 |
) |
|
|
1,458 |
|
|
|
3,761 |
|
|
|
255,179 |
|
Net gain/(loss) on securitized debt measured at fair value through earnings |
|
|
(111,689 |
) |
|
|
43,091 |
|
|
|
(99,589 |
) |
|
|
290,639 |
|
Lima One - origination, servicing and other fee income |
|
|
10,822 |
|
|
|
9,206 |
|
|
|
43,384 |
|
|
|
46,745 |
|
Net realized loss on residential whole loans held at carrying value |
|
|
(1,240 |
) |
|
|
— |
|
|
|
(1,240 |
) |
|
|
— |
|
Other, net |
|
|
1,407 |
|
|
|
1,866 |
|
|
|
11,331 |
|
|
|
8,623 |
|
Other Income/(Loss), net |
|
$ |
76,143 |
|
|
$ |
(16,514 |
) |
|
$ |
63,114 |
|
|
$ |
(265,264 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Operating and Other Expense: |
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
$ |
19,347 |
|
|
$ |
17,049 |
|
|
$ |
85,799 |
|
|
$ |
76,728 |
|
Other general and administrative expense |
|
|
12,580 |
|
|
|
7,717 |
|
|
|
44,147 |
|
|
|
35,138 |
|
Loan servicing, financing and other related costs |
|
|
8,010 |
|
|
|
7,901 |
|
|
|
34,136 |
|
|
|
42,894 |
|
Amortization of intangible assets |
|
|
800 |
|
|
|
1,300 |
|
|
|
4,200 |
|
|
|
9,200 |
|
Operating and Other Expense |
|
$ |
40,737 |
|
|
$ |
33,967 |
|
|
$ |
168,282 |
|
|
$ |
163,960 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net Income/(Loss) |
|
$ |
89,746 |
|
|
$ |
6,710 |
|
|
$ |
80,164 |
|
|
$ |
(231,581 |
) |
Less Preferred Stock Dividend Requirement |
|
$ |
8,219 |
|
|
$ |
8,219 |
|
|
$ |
32,875 |
|
|
$ |
32,875 |
|
Net Income/(Loss) Available to |
|
$ |
81,527 |
|
|
$ |
(1,509 |
) |
|
$ |
47,289 |
|
|
$ |
(264,456 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic Earnings/(Loss) per Common Share |
|
$ |
0.80 |
|
|
$ |
(0.02 |
) |
|
$ |
0.46 |
|
|
$ |
(2.57 |
) |
Diluted Earnings/(Loss) per Common Share |
|
$ |
0.76 |
|
|
$ |
(0.02 |
) |
|
$ |
0.46 |
|
|
$ |
(2.57 |
) |
Segment Reporting
At
The following tables summarize segment financial information, which in total reconciles to the same data for the Company as a whole:
(Dollars in Thousands) |
|
Mortgage-Related Assets |
|
Lima One |
|
Corporate |
|
Total |
||||||||
Three months ended |
|
|
|
|
|
|
|
|
||||||||
Interest Income |
|
$ |
94,495 |
|
|
$ |
71,896 |
|
|
$ |
3,486 |
|
|
$ |
169,877 |
|
Interest Expense |
|
|
68,655 |
|
|
|
51,009 |
|
|
|
3,749 |
|
|
|
123,413 |
|
Net Interest Income/(Expense) |
|
$ |
25,840 |
|
|
$ |
20,887 |
|
|
$ |
(263 |
) |
|
$ |
46,464 |
|
Reversal of Provision for Credit Losses on Residential Whole Loans |
|
|
7,876 |
|
|
|
— |
|
|
|
— |
|
|
|
7,876 |
|
Net Interest Income/(Expense) after Provision for Credit Losses |
|
$ |
33,716 |
|
|
$ |
20,887 |
|
|
$ |
(263 |
) |
|
$ |
54,340 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net gain on residential whole loans measured at fair value through earnings |
|
$ |
170,936 |
|
|
$ |
53,337 |
|
|
$ |
— |
|
|
$ |
224,273 |
|
Impairment and other net gain/(loss) on securities and other portfolio investments |
|
|
22,279 |
|
|
|
— |
|
|
|
(255 |
) |
|
|
22,024 |
|
Net gain on real estate owned |
|
|
795 |
|
|
|
93 |
|
|
|
— |
|
|
|
888 |
|
Net loss on derivatives used for risk management purposes |
|
|
(53,291 |
) |
|
|
(17,051 |
) |
|
|
— |
|
|
|
(70,342 |
) |
Net loss on securitized debt measured at fair value through earnings |
|
|
(76,381 |
) |
|
|
(35,308 |
) |
|
|
— |
|
|
|
(111,689 |
) |
Lima One - origination, servicing and other fee income |
|
|
— |
|
|
|
10,822 |
|
|
|
— |
|
|
|
10,822 |
|
Net realized loss on residential whole loans held at carrying value |
|
|
(1,240 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,240 |
) |
Other, net |
|
|
1,424 |
|
|
|
153 |
|
|
|
(170 |
) |
|
|
1,407 |
|
Total Other Income/(Loss), net |
|
$ |
64,522 |
|
|
$ |
12,046 |
|
|
$ |
(425 |
) |
|
$ |
76,143 |
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
$ |
— |
|
|
$ |
11,875 |
|
|
$ |
7,472 |
|
|
$ |
19,347 |
|
General and administrative expenses |
|
|
214 |
|
|
|
5,680 |
|
|
|
6,686 |
|
|
|
12,580 |
|
Loan servicing, financing, and other related costs |
|
|
4,953 |
|
|
|
467 |
|
|
|
2,590 |
|
|
|
8,010 |
|
Amortization of intangible assets |
|
|
— |
|
|
|
800 |
|
|
|
— |
|
|
|
800 |
|
Net Income/(Loss) |
|
$ |
93,071 |
|
|
$ |
14,111 |
|
|
$ |
(17,436 |
) |
|
$ |
89,746 |
|
|
|
|
|
|
|
|
|
|
||||||||
Less Preferred Stock Dividend Requirement |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,219 |
|
|
$ |
8,219 |
|
Net Income/(Loss) Available to |
|
$ |
93,071 |
|
|
$ |
14,111 |
|
|
$ |
(25,655 |
) |
|
$ |
81,527 |
|
(Dollars in Thousands) |
|
Mortgage-Related Assets |
|
Lima One |
|
Corporate |
|
Total |
||||
|
|
|
|
|
|
|
|
|
||||
Total Assets |
|
$ |
6,370,237 |
|
$ |
4,000,932 |
|
$ |
401,521 |
|
$ |
10,772,690 |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Total Assets |
|
$ |
6,065,557 |
|
$ |
2,618,695 |
|
$ |
428,153 |
|
$ |
9,112,405 |
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
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) |
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP Net income/(loss) used in the calculation of basic EPS |
|
$ |
81,527 |
|
|
$ |
(64,657 |
) |
|
$ |
(34,146 |
) |
|
$ |
64,565 |
|
|
$ |
(1,647 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized and realized gains and losses on: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential whole loans held at fair value |
|
|
(224,272 |
) |
|
|
132,894 |
|
|
|
130,703 |
|
|
|
(129,174 |
) |
|
|
68,828 |
|
Securities held at fair value |
|
|
(21,371 |
) |
|
|
13,439 |
|
|
|
3,698 |
|
|
|
(2,931 |
) |
|
|
383 |
|
Residential whole loans and securities at carrying value |
|
|
332 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest rate swaps |
|
|
97,400 |
|
|
|
(9,433 |
) |
|
|
(37,018 |
) |
|
|
40,747 |
|
|
|
12,725 |
|
Securitized debt held at fair value |
|
|
108,693 |
|
|
|
(40,229 |
) |
|
|
(30,908 |
) |
|
|
48,846 |
|
|
|
(44,988 |
) |
Investments in loan origination partners |
|
|
254 |
|
|
|
722 |
|
|
|
872 |
|
|
|
— |
|
|
|
8,526 |
|
Expense items: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortization of intangible assets |
|
|
800 |
|
|
|
800 |
|
|
|
1,300 |
|
|
|
1,300 |
|
|
|
1,300 |
|
Equity based compensation |
|
|
3,635 |
|
|
|
4,447 |
|
|
|
3,932 |
|
|
|
3,020 |
|
|
|
2,480 |
|
Securitization-related transaction costs |
|
|
2,702 |
|
|
|
3,217 |
|
|
|
2,071 |
|
|
|
4,602 |
|
|
|
1,744 |
|
Total adjustments |
|
|
(31,827 |
) |
|
|
105,857 |
|
|
|
74,650 |
|
|
|
(33,590 |
) |
|
|
50,998 |
|
Distributable earnings |
|
$ |
49,700 |
|
|
$ |
41,200 |
|
|
$ |
40,504 |
|
|
$ |
30,975 |
|
|
$ |
49,351 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP earnings/(loss) per basic common share |
|
$ |
0.80 |
|
|
$ |
(0.64 |
) |
|
$ |
(0.34 |
) |
|
$ |
0.63 |
|
|
$ |
(0.02 |
) |
Distributable earnings per basic common share |
|
$ |
0.49 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.30 |
|
|
$ |
0.48 |
|
Weighted average common shares for basic earnings per share |
|
|
102,266 |
|
|
|
102,255 |
|
|
|
102,186 |
|
|
|
102,155 |
|
|
|
101,800 |
|
The following table presents our non-GAAP Distributable earnings by segment for the quarterly periods below:
(Dollars in Thousands) |
|
Mortgage-Related Assets |
|
Lima One |
|
Corporate |
|
Total |
||||||||
Three months ended |
|
|
|
|
|
|
|
|
||||||||
GAAP Net income/(loss) used in the calculation of basic EPS |
|
$ |
93,071 |
|
|
$ |
14,111 |
|
|
$ |
(25,655 |
) |
|
$ |
81,527 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Unrealized and realized gains and losses on: |
|
|
|
|
|
|
|
|
||||||||
Residential whole loans held at fair value |
|
|
(170,935 |
) |
|
|
(53,337 |
) |
|
|
— |
|
|
|
(224,272 |
) |
Securities held at fair value |
|
|
(21,371 |
) |
|
|
— |
|
|
|
— |
|
|
|
(21,371 |
) |
Residential whole loans and securities at carrying value |
|
|
332 |
|
|
|
— |
|
|
|
— |
|
|
|
332 |
|
Interest rate swaps |
|
|
72,741 |
|
|
|
24,659 |
|
|
|
— |
|
|
|
97,400 |
|
Securitized debt held at fair value |
|
|
73,779 |
|
|
|
34,914 |
|
|
|
— |
|
|
|
108,693 |
|
Investments in loan origination partners |
|
|
— |
|
|
|
— |
|
|
|
254 |
|
|
|
254 |
|
Expense items: |
|
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
— |
|
|
|
800 |
|
|
|
— |
|
|
|
800 |
|
Equity based compensation |
|
|
— |
|
|
|
132 |
|
|
|
3,503 |
|
|
|
3,635 |
|
Securitization-related transaction costs |
|
|
145 |
|
|
|
— |
|
|
|
2,557 |
|
|
|
2,702 |
|
Total adjustments |
|
$ |
(45,309 |
) |
|
$ |
7,168 |
|
|
$ |
6,314 |
|
|
$ |
(31,827 |
) |
Distributable earnings |
|
$ |
47,762 |
|
|
$ |
21,279 |
|
|
$ |
(19,341 |
) |
|
$ |
49,700 |
|
(Dollars in Thousands) |
|
Mortgage-Related Assets |
|
Lima One |
|
Corporate |
|
Total |
||||||||
Three months ended |
|
|
|
|
|
|
|
|
||||||||
GAAP Net income/(loss) used in the calculation of basic EPS |
|
$ |
(33,411 |
) |
|
$ |
(993 |
) |
|
$ |
(30,253 |
) |
|
$ |
(64,657 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Unrealized and realized gains and losses on: |
|
|
|
|
|
|
|
|
||||||||
Residential whole loans held at fair value |
|
|
99,500 |
|
|
|
33,394 |
|
|
|
— |
|
|
|
132,894 |
|
Securities held at fair value |
|
|
13,439 |
|
|
|
— |
|
|
|
— |
|
|
|
13,439 |
|
Interest rate swaps |
|
|
(7,098 |
) |
|
|
(2,335 |
) |
|
|
— |
|
|
|
(9,433 |
) |
Securitized debt held at fair value |
|
|
(28,572 |
) |
|
|
(11,657 |
) |
|
|
— |
|
|
|
(40,229 |
) |
Investments in loan origination partners |
|
|
— |
|
|
|
— |
|
|
|
722 |
|
|
|
722 |
|
Expense items: |
|
|
|
|
|
|
|
|
||||||||
Amortization of intangible assets |
|
|
— |
|
|
|
800 |
|
|
|
— |
|
|
|
800 |
|
Equity based compensation |
|
|
— |
|
|
|
131 |
|
|
|
4,316 |
|
|
|
4,447 |
|
Securitization-related transaction costs |
|
|
— |
|
|
|
— |
|
|
|
3,217 |
|
|
|
3,217 |
|
Total adjustments |
|
$ |
77,269 |
|
|
$ |
20,333 |
|
|
$ |
8,255 |
|
|
$ |
105,857 |
|
Distributable earnings |
|
$ |
43,858 |
|
|
$ |
19,340 |
|
|
$ |
(21,998 |
) |
|
$ |
41,200 |
|
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) |
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP Total Stockholders’ Equity |
|
$ |
1,899.9 |
|
|
$ |
1,848.5 |
|
|
$ |
1,944.8 |
|
|
$ |
2,018.6 |
|
|
$ |
1,988.8 |
|
Preferred Stock, liquidation preference |
|
|
(475.0 |
) |
|
|
(475.0 |
) |
|
|
(475.0 |
) |
|
|
(475.0 |
) |
|
|
(475.0 |
) |
GAAP Stockholders’ Equity for book value per common share |
|
|
1,424.9 |
|
|
|
1,373.5 |
|
|
|
1,469.8 |
|
|
|
1,543.6 |
|
|
|
1,513.8 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustment to Residential whole loans, at carrying value |
|
|
(35.6 |
) |
|
|
(85.3 |
) |
|
|
(58.3 |
) |
|
|
(33.9 |
) |
|
|
(70.2 |
) |
Fair value adjustment to Securitized debt, at carrying value |
|
|
95.6 |
|
|
|
122.5 |
|
|
|
129.8 |
|
|
|
122.4 |
|
|
|
139.7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ Equity including fair value adjustments to Residential whole loans and Securitized debt held at carrying value (Economic book value) |
|
$ |
1,484.9 |
|
|
$ |
1,410.7 |
|
|
$ |
1,541.3 |
|
|
$ |
1,632.1 |
|
|
$ |
1,583.3 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP book value per common share |
|
$ |
13.98 |
|
|
$ |
13.48 |
|
|
$ |
14.42 |
|
|
$ |
15.15 |
|
|
$ |
14.87 |
|
Economic book value per common share |
|
$ |
14.57 |
|
|
$ |
13.84 |
|
|
$ |
15.12 |
|
|
$ |
16.02 |
|
|
$ |
15.55 |
|
Number of shares of common stock outstanding |
|
|
101.9 |
|
|
|
101.9 |
|
|
|
101.9 |
|
|
|
101.9 |
|
|
|
101.8 |
|
|
|
|
|
|
|
|
|
|
|
|
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 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
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220265937/en/
INVESTORS:
InvestorRelations@mfafinancial.com
212-207-6488
www.mfafinancial.com
MEDIA:
H/Advisors Abernathy
212-371-5999
Source: