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Sep 30, 2023
MFA Financial Q3 2023 Earnings Report
Announced third quarter 2023 financial results, demonstrating resilience amidst challenging market conditions with distributable earnings exceeding dividends and strategic asset acquisitions.
Key Takeaways
MFA Financial, Inc. reported its financial results for the third quarter ended September 30, 2023. Despite a challenging environment for fixed-income investors, the company generated distributable earnings in excess of its dividend, acquired or originated over $800 million of loans, and purchased $152 million of Agency MBS. Lima One originated a record $671 million of new loans during the quarter. The net interest spread increased to 2.17%, and the net interest margin rose to 3.02%.
Generated distributable earnings exceeding dividend payout.
Lima One originated a record $671 million in new loans.
Acquired or originated over $800 million in loans with an average coupon of approximately 10%.
Net interest spread increased to 2.17% and net interest margin to 3.02%.
Forward Guidance
This earnings report contains forward-looking statements that are subject to risks and uncertainties, including economic factors, interest rate changes, and the performance of the housing and financial markets. Actual results could differ materially from those projected due to these factors.
Challenges Ahead
- 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
- 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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