MFA Financial, Inc. reported its Q4 2022 financial results, highlighting the company's ability to protect book value and preserve capital despite a volatile period for fixed income and mortgages. The company focused on maintaining substantial liquidity, increasing non-mark-to-market financing, and decreasing sensitivity to interest rate increases. Lima One subsidiary's record originations and the company's strategic portfolio adjustments contributed to the overall performance.
Book value remained relatively flat during the quarter, outperforming most peers in terms of book value performance and economic returns for the year.
Cost of funds increased slightly to 3.7%, despite significant Fed rate hikes, due to effective fixing of asset-based financing costs.
Unrestricted cash ended the year at $334 million, representing approximately 17% of equity, with $1.9 billion of unused financing capacity.
Lima One originated a record $2.3 billion in loans for 2022, contributing approximately 65% of asset acquisitions, with a current origination pipeline having a weighted average coupon of over 10%.
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