MFA Financial reported a challenging first quarter due to significant fixed income market volatility, particularly impacting mortgage investments. The company proactively managed risk by increasing interest rate hedges and bolstering its cash position. Despite market value decreases in the loan portfolio, strategic measures mitigated the impact, resulting in a moderate book value decline. The company also saw record loan originations at Lima One and reductions in the REO portfolio.
Net interest income for the first quarter was $63.1 million.
GAAP loss of ($0.86) per common share due to market value decreases in the loan portfolio.
Distributable Earnings were $66 million or $0.62 per common share.
Residential mortgage investment portfolio increased by approximately $330 million during the first quarter.
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