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Jun 30, 2020
MFA Financial Q2 2020 Earnings Report
Announced second quarter 2020 financial results and declared $0.05 common dividend.
Key Takeaways
MFA Financial's second quarter results were significantly impacted by unusual events and transactions, including gains and losses from asset sales, expenses related to capital raising and forbearance, losses from interest rate swap terminations, and a partial reversal of allowance for credit loss. The company spent the quarter in forbearance, which allowed for more orderly asset liquidation. GAAP book value increased due to earnings, and economic book value also rose due to asset price appreciation on residential whole loans.
Residential mortgage investment portfolio decreased by $3.4 billion due to asset sales and portfolio run-off.
Assets with an amortized cost basis totaling $3.2 billion were sold for $3.3 billion, resulting in net realized gains of $49.5 million.
Net gains for the quarter on residential whole loans measured at fair value through earnings were $20.3 million.
Company sold $535.7 million of Agency MBS, realizing a gain of $3.6 million and exited its remaining Agency MBS and the substantial majority of its Legacy Non-Agency MBS.
Forward Guidance
MFA Financial does not anticipate incurring any significant additional expenses related to exiting forbearance or refinancing activity going forward.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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