NEW YORK, Aug. 2, 2018 /PRNewswire/ -- MFA Financial, Inc.
(NYSE: MFA) today announced its financial results for the second
quarter ended June 30, 2018.
Second Quarter 2018 and other
highlights:
- MFA generated second quarter GAAP net income of $66.6 million, or $0.17 per common share. As of June 30,
2018, book value per common share was $7.54.
- Asset acquisitions exceeded run-off during the quarter.
MFA purchased or committed to purchase in excess of $1.1 billion of residential mortgage assets in
the second quarter, including $898
million of residential whole loans.
- Recent growth in MFA's residential whole loan portfolio has
been largely through purchases of newly originated performing whole
loans, including Non-QM loans, rehabilitation or "fix and flip"
loans and single family rental loans.
- Net Income was $0.03 per common
share lower than the first quarter of 2018, primarily due to:
-
- Lower income from residential whole loans held at fair value.
While this portfolio continues to perform well and again delivered
mark to market gains, they were less than in the prior
quarter;
- Net interest income was lower as early quarter asset sales and
run-off was not fully re-invested until later in the quarter, with
closing of certain purchases of higher yielding loans held at
carrying value, as well as a RPL/NPL MBS acquisition pending
settlement at quarter-end; and
- Operating and other expenses this quarter were impacted by the
timing of recognition of expenses associated with certain
share-based compensation awards.
- On July 31, 2018, MFA paid its
second quarter 2018 dividend of $0.20
per share of common stock to shareholders of record as of
June 29, 2018.
Craig Knutson, MFA's CEO and
President, said, "In the second quarter, we continued to execute
our strategy of targeted investment within the residential mortgage
universe with a focus primarily on residential whole loans.
We again grew our portfolio this quarter, as acquisitions exceeded
run-off and sales. To date in 2018, and particularly in the second
quarter, much of the growth in the residential whole loan portfolio
has been through purchases of newly originated performing whole
loans, including Non-QM loans, fix and flip loans and single family
rental loans. We are pleased to have gained traction on these
new acquisition efforts, which involve relationships cultivated
over the past year or more. Through our willingness and
ability to explore and enter into various arrangements, including
flow agreements, strategic alliances and also minority equity
investments, we have been able to partner with originators to
source attractive new investments, while enabling them to grow with
support from MFA as a reliable provider of capital.
"MFA remains well-positioned to generate attractive returns
despite higher funding cost due to Fed Funds increases and
continued elevated asset prices. Through our asset selection
and hedging strategy, the estimated net effective duration, a gauge
of our portfolio's sensitivity to interest rates, remains
relatively low and measured 1.19 at quarter-end. MFA's book
value per common share decreased slightly to $7.54 from $7.62 as
of March 31, 2018, due primarily to
dividend distributions exceeding GAAP earnings by $0.03. Leverage, which reflects the ratio of our
financing obligations to equity, was 2.3:1 at quarter-end."
Mr. Knutson added, "MFA's portfolio asset selection process
continues to emphasize residential mortgage credit exposure while
seeking to minimize sensitivity to interest rates. As housing
prices maintain their upward trend and borrowers repair their
credit and balance sheets, the performance of our credit sensitive
residential whole loan portfolio benefits from this fundamental
strength. MFA's proactive asset management team has been able
to shorten liquidation timelines and increase property sale
proceeds, leading to improved outcomes and better returns.
Additionally, MFA's Legacy Non-Agency MBS portfolio continues to
outperform our credit assumptions. In the second quarter of
2018, we reduced our credit reserve on this portfolio by
$8.0 million and these assets
generated a yield of 9.89% for the quarter."
During the second quarter MFA purchased or committed to purchase
more than $1.1 billion of residential
mortgage assets, including $898
million of residential whole loans. This acquisition
activity exceeded portfolio run-off and sales by almost
$150 million.
At June 30, 2018, our investments in residential whole
loans totaled $3.4 billion. Of
this amount, $1.9 billion is recorded
at carrying value and generated a yield of 5.84% (5.60% net of
servicing costs) during the quarter, and $1.5 billion is recorded at fair value on our
consolidated balance sheet. On this portion of the portfolio,
we recorded gains for the quarter of approximately $32.4 million, primarily reflecting coupon
interest payments and other cash received during the quarter and
changes in the fair value of the underlying loans.
MFA's Legacy Non-Agency MBS had a face amount of $2.5 billion with an amortized cost of
$1.8 billion and a net purchase
discount of $754.0 million at
June 30, 2018. This discount consists of a $553.6 million credit reserve and
other-than-temporary impairments and a $200.4 million net accretable discount. We
believe this credit reserve appropriately factors in remaining
uncertainties regarding underlying mortgage performance and the
potential impact on future cash flows. Our Legacy Non-Agency
MBS have underlying mortgage loans that are on average
approximately twelve years seasoned and approximately 11.6% are
currently 60 or more days delinquent.
As of June 30, 2018, the Agency MBS portfolio totaled
$2.4 billion, had an amortized cost
basis of 103.9% of par and generated a 2.03% yield in the second
quarter. During the quarter we sold $75.3 million of lower yielding 15-Year Fixed
Rate Agency MBS, realizing $3.8
million in losses. The Legacy Non-Agency MBS portfolio
had an amortized cost of 70.0% of par as of June 30, 2018, and
generated a loss-adjusted yield of 9.89% in the second
quarter. At the end of the second quarter, MFA held
approximately $907.9 million of
RPL/NPL MBS. These securities had an amortized cost of 99.80%
of par and generated a 4.52% yield for the quarter. Our
investments in CRT securities totaled $572.0
million at June 30, 2018, and generated a yield of
6.34% in the second quarter. Pricing this quarter of CRT
securities was again relatively stable. During the quarter we
opportunistically sold $104.0 million
of CRT securities, realizing gains of $11.2
million.
For the three months ended June 30,
2018, MFA's costs for compensation and benefits and other
general and administrative expenses were $12.6 million, or an annualized 1.57% of
stockholders' equity as of June 30, 2018.
The following table presents the weighted average prepayment
speed on MFA's MBS portfolio.
Table
1
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
2018 Average CPR
|
|
First Quarter
2018 Average CPR
|
Agency MBS
|
|
16.2%
|
|
12.7%
|
Legacy Non-Agency
MBS
|
|
15.8%
|
|
14.9%
|
RPL/NPL MBS
(1)
|
|
20.4%
|
|
14.0%
|
|
|
|
|
|
|
|
(1)
|
All principal
payments are considered to be prepayments for conditional
prepayment rate ("CPR") purposes. RPL/NPL MBS are securitized
financial instruments that are primarily backed by securitized
re-performing and non-performing loans. The majority of these
securities are structured such that the coupon increases up to 300
basis points at 36 months from issuance or sooner.
|
As of June 30, 2018, under its swap agreements, MFA had a
weighted average fixed-pay rate of interest of 2.07% and a floating
receive rate of 2.08% on notional balances totaling $2.6 billion, with an average maturity of 22
months.
The following table presents MFA's asset allocation as of
June 30, 2018, and the second quarter 2018 yield on average
interest-earning assets, average cost of funds and net interest
rate spread for the various asset types.
Table
2
|
|
ASSET
ALLOCATION
|
|
At June 30,
2018
|
Agency
MBS
|
Legacy
Non-Agency
MBS
|
RPL/NPL
MBS
|
Credit Risk
Transfer
Securities
|
MSR
Related
Assets
|
Residential
Whole Loans, at
Carrying Value
(1)
|
Residential
Whole Loans, at
Fair Value
|
Other,
net
(2)
|
Total
|
($ in Millions)
|
|
|
|
|
|
|
|
|
|
Fair Value/Carrying
Value
|
$
|
2,363
|
|
$
|
2,335
|
|
$
|
908
|
|
$
|
572
|
|
$
|
381
|
|
$
|
1,906
|
|
$
|
1,503
|
|
$
|
315
|
|
$
|
10,283
|
|
Less Payable
for
Unsettled
Purchases
|
—
|
|
—
|
|
(61)
|
|
—
|
|
—
|
|
(473)
|
|
(34)
|
|
—
|
|
(568)
|
|
Less
Repurchase
Agreements
|
(2,112)
|
|
(1,585)
|
|
(499)
|
|
(410)
|
|
(297)
|
|
(318)
|
|
(671)
|
|
—
|
|
(5,892)
|
|
Less Securitized
Debt
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(167)
|
|
(352)
|
|
—
|
|
(519)
|
|
Less Senior
Notes
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(97)
|
|
(97)
|
|
Net Equity
Allocated
|
$
|
251
|
|
$
|
750
|
|
$
|
348
|
|
$
|
162
|
|
$
|
84
|
|
$
|
948
|
|
$
|
446
|
|
$
|
218
|
|
$
|
3,207
|
|
Debt/Net Equity Ratio
(3)
|
8.4x
|
|
2.1x
|
|
1.6x
|
|
2.5x
|
|
3.5x
|
|
1.0x
|
|
2.4x
|
|
|
2.3x
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended June 30, 2018
|
|
|
|
|
|
|
|
Yield on Average
Interest
Earning Assets (4)
|
2.03%
|
|
9.89%
|
|
4.52%
|
|
6.34%
|
|
6.88%
|
|
5.84%
|
|
N/A
|
|
—%
|
|
5.35%
|
|
Less Average Cost
of
Funds
(5)
|
(2.04)
|
|
(3.30)
|
|
(3.19)
|
|
(2.97)
|
|
(3.16)
|
|
(3.86)
|
|
(3.91)
|
|
—
|
|
(3.05)
|
|
Net Interest Rate
Spread
|
(0.01)%
|
|
6.59%
|
|
1.33%
|
|
3.37%
|
|
3.72%
|
|
1.98%
|
|
N/A
|
|
—%
|
|
2.30%
|
|
|
|
|
(1)
|
Includes $804.8
million of purchased credit impaired loans, $626.9 million of
Non-QM loans, $162.7 million of Rehabilitation loans, $55.6 million
of Single-family rental loans and $256.2 million of seasoned
performing loans. At June 30, 2018, the total fair value
of these loans is estimated to be approximately $2.0
billion.
|
(2)
|
Includes cash and
cash equivalents and restricted cash, other assets and other
liabilities.
|
(3)
|
Represents the sum
of borrowings under repurchase agreements, securitized debt and
payable for unsettled purchases as a multiple of net equity
allocated. The numerator of our Total Debt/Net Equity Ratio
also includes the obligation to return securities obtained as
collateral of $253.7 million and Senior Notes.
|
(4)
|
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 June 30, 2018, the amortized
cost of our interest earning assets were as follows: Agency MBS -
$2.4 billion; Legacy Non-Agency MBS - $1.8 billion; RPL/NPL MBS -
$907.5 million; Credit Risk Transfer securities - $528.7 million;
and Residential Whole Loans at carrying value - $1.9 billion. In
addition, the yield for residential whole loans at carrying value
was 5.60% net of 24 basis points of servicing fee expense incurred
during the quarter. For GAAP reporting purposes, such
expenses are included in Loan servicing and other related operating
expenses in our statement of operations. Interest payments
received on residential whole loans at fair value is reported in
Other Income as Net gain on residential whole loans held at fair
value in our statement of operations. Accordingly, no yield
is presented as such loans are not included in interest earning
assets for reporting purposes.
|
(5)
|
Average cost of
funds includes interest on repurchase agreements, the cost of
swaps, Senior Notes and securitized debt. Agency MBS cost of
funds includes 28 basis points and Legacy Non-Agency MBS cost of
funds includes 31 basis points associated with swaps to hedge
interest rate sensitivity on these assets.
|
At June 30, 2018, MFA's $4.7
billion of Agency and Legacy Non-Agency MBS were backed by
hybrid, adjustable and fixed-rate mortgages. Additional
information about these MBS, including average months to reset and
three-month average CPR, is presented below:
Table
3
|
|
|
|
Agency
MBS
|
|
Legacy Non-Agency
MBS (1)
|
|
Total
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time to
Reset
|
|
Fair Value
(2)
|
Average
Months
to Reset
(3)
|
3 Month
Average CPR
(4)
|
|
Fair Value
|
Average
Months
to Reset
(3)
|
3 Month
Average CPR
(4)
|
|
Fair Value
(2)
|
Average
Months
to Reset
(3)
|
3 Month
Average CPR
(4)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
< 2 years
(5)
|
|
$
|
1,276
|
|
6
|
21.2%
|
|
$
|
1,539
|
|
5
|
16.2%
|
|
$
|
2,815
|
|
5
|
18.4%
|
2-5 years
|
|
147
|
|
45
|
13.2
|
|
—
|
|
—
|
—
|
|
147
|
|
45
|
13.2
|
> 5
years
|
|
10
|
|
84
|
11.5
|
|
—
|
|
—
|
—
|
|
10
|
|
84
|
11.5
|
ARM-MBS
Total
|
|
$
|
1,433
|
|
11
|
20.3%
|
|
$
|
1,539
|
|
5
|
16.2%
|
|
$
|
2,972
|
|
8
|
18.1%
|
15-year fixed
(6)
|
|
$
|
929
|
|
|
10.4%
|
|
$
|
2
|
|
|
4.0%
|
|
$
|
931
|
|
|
10.3%
|
30-year fixed
(6)
|
|
—
|
|
|
—
|
|
758
|
|
|
15.2
|
|
758
|
|
|
15.2
|
40-year fixed
(6)
|
|
—
|
|
|
—
|
|
36
|
|
|
14.2
|
|
36
|
|
|
14.2
|
Fixed-Rate
Total
|
|
$
|
929
|
|
|
10.4%
|
|
$
|
796
|
|
|
15.1%
|
|
$
|
1,725
|
|
|
12.6%
|
MBS Total
|
|
$
|
2,362
|
|
|
16.2%
|
|
$
|
2,335
|
|
|
15.8%
|
|
$
|
4,697
|
|
|
16.0%
|
|
|
|
(1)
|
Excludes $907.9
million of RPL/NPL MBS.
|
(2)
|
Does not include
principal payments receivable of $1.2 million.
|
(3)
|
Months to Reset is
the number of months remaining before the coupon interest rate
resets. At reset, the MBS coupon will adjust based upon the
underlying benchmark interest rate index, margin and periodic or
lifetime caps. Months to Reset does not reflect scheduled
amortization or prepayments.
|
(4)
|
3 month average
CPR weighted by positions as of beginning of each month in the
quarter.
|
(5)
|
Includes floating
rate MBS that may be collateralized by fixed-rate
mortgages.
|
(6)
|
Information
presented based on data available at time of loan
origination.
|
Webcast
MFA Financial, Inc. plans to host a live audio
webcast of its investor conference call on Thursday, August 2,
2018, at 10:00 a.m. (Eastern Time) to
discuss its second quarter 2018 financial results. The live audio
webcast will be accessible to the general public over the internet
at http://www.mfafinancial.com through the "Webcasts &
Presentations" link on MFA's home page. To listen to the
conference call over the internet, please go to the MFA website at
least 15 minutes before the call to register and to download and
install any needed audio software. Earnings presentation
materials will be posted on the MFA website prior to the conference
call and an audio replay will be available on the website following
the call.
Cautionary Language Regarding Forward-Looking
Statements
When used in this press release or other written
or oral communications, statements which are not historical in
nature, including those containing words such as "will," "believe,"
"expect," "anticipate," "estimate," "plan," "continue," "intend,"
"should," "could," "would," "may" 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. Statements regarding the following subjects, among
others, may be forward-looking: changes in interest rates and the
market (i.e., fair) value of MFA's MBS, residential whole loans,
CRT securities and other assets; changes in the prepayment rates on
the mortgage loans securing MFA's MBS, an increase of which could
result in a reduction of the yield on MBS in our portfolio and an
increase of which could require us to reinvest the proceeds
received by us as a result of such prepayments in MBS with lower
coupons; credit risks underlying MFA's assets, including changes in
the default rates and management's assumptions regarding default
rates on the mortgage loans securing MFA's Non-Agency MBS and
relating to 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 Non-Agency MBS and residential whole loans and the
extent of prepayments, realized losses and changes in the
composition of MFA's Agency MBS, Non-Agency MBS and residential
whole loan portfolios that may occur during the applicable tax
period, including gain or loss on any MBS disposals and whole loan
modification, foreclosure and liquidation; 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 Securities
and Exchange Commission ("SEC") relating to interpretive issues
under the Investment Company Act with respect to the status under
the Investment Company Act of certain companies that are engaged in
the business of acquiring mortgages and mortgage-related interests;
MFA's ability to successfully implement its strategy to grow its
residential whole loan portfolio, which is dependent on, among
other things, the supply of loans offered for sale in the market;
expected returns on our investments in non-performing residential
whole loans ("NPLs"), which are affected by, among other things,
the length of time required to foreclose upon, sell, liquidate or
otherwise reach a resolution of the property underlying the NPL,
home price values, amounts advanced to carry the asset (e.g.,
taxes, insurance, maintenance expenses, etc. on the underlying
property) and the amount ultimately realized upon resolution of the
asset; risks associated with our investments in MSR related assets,
including servicing, regulatory and economic risks, and risks
associated with investing in real estate assets, including changes
in business conditions and the general economy. These and other
risks, uncertainties and factors, including those described in the
annual, quarterly and current reports that MFA files with the SEC,
could cause MFA's actual results to differ materially from those
projected in any forward-looking statements it makes. All
forward-looking statements are based on beliefs, assumptions and
expectations of MFA's future performance, taking into account all
information currently available. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. New risks and
uncertainties arise over time and it is not possible to predict
those events or how they may affect MFA. Except as required by law,
MFA is not obligated to, and does not intend to, update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
MFA FINANCIAL,
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
(In
Thousands, Except Per Share Amounts)
|
|
June 30,
2018
|
|
December 31,
2017
|
|
|
(Unaudited)
|
|
|
Assets:
|
|
|
|
|
Mortgage-backed
securities ("MBS") and credit risk transfer ("CRT")
securities:
|
|
|
|
|
Agency MBS, at fair
value ($2,286,409 and $2,727,510 pledged as collateral,
respectively)
|
|
$
|
2,362,897
|
|
$
|
2,824,681
|
Non-Agency MBS, at
fair value ($2,447,432 and $2,379,523 pledged as collateral,
respectively)
|
|
3,242,967
|
|
3,533,966
|
CRT securities, at
fair value ($516,486 and $595,900 pledged as collateral,
respectively)
|
|
571,955
|
|
664,403
|
Mortgage servicing
rights ("MSR") related assets ($381,390 and $482,158 pledged as
collateral,
|
|
|
|
|
respectively)
|
|
381,390
|
|
492,080
|
Residential whole
loans, at carrying value ($396,856 and $448,689 pledged as
collateral, respectively) (1)
|
|
1,906,242
|
|
908,516
|
Residential whole
loans, at fair value ($952,335 and $996,226 pledged as collateral,
respectively) (1)
|
|
1,502,986
|
|
1,325,115
|
Cash and cash
equivalents
|
|
54,880
|
|
449,757
|
Restricted
cash
|
|
3,298
|
|
13,307
|
Other
assets
|
|
618,148
|
|
742,909
|
Total
Assets
|
|
$
|
10,644,763
|
|
$
|
10,954,734
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Repurchase
agreements
|
|
$
|
5,892,228
|
|
$
|
6,614,701
|
Payable for unsettled
MBS and residential whole loans purchases
|
|
567,915
|
|
—
|
Other
liabilities
|
|
978,007
|
|
1,078,397
|
Total
Liabilities
|
|
$
|
7,438,150
|
|
$
|
7,693,098
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
Preferred stock, $.01
par value; 7.50% Series B cumulative redeemable; 8,050 shares
authorized;
|
|
|
|
|
|
|
8,000 shares
issued and outstanding ($200,000 aggregate liquidation
preference)
|
|
$
|
80
|
|
$
|
80
|
Common stock, $.01
par value; 886,950 shares authorized; 398,533 and 397,831 shares
issued
|
|
|
|
|
and
outstanding, respectively
|
|
3,985
|
|
3,978
|
Additional paid-in
capital, in excess of par
|
|
3,230,055
|
|
3,227,304
|
Accumulated
deficit
|
|
(592,218)
|
|
(578,950)
|
Accumulated other
comprehensive income
|
|
564,711
|
|
609,224
|
Total Stockholders'
Equity
|
|
$
|
3,206,613
|
|
$
|
3,261,636
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
10,644,763
|
|
$
|
10,954,734
|
|
|
|
(1)
|
Includes
approximately $199.8 million and $183.2 million of Residential
whole loans, at carrying value and $476.2 million and $289.3
million of Residential whole loans, at fair value transferred to
consolidated VIEs at June 30, 2018 and December 31, 2017,
respectively. Such assets can be used only to settle the
obligations of each respective VIE.
|
MFA FINANCIAL,
INC
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(In Thousands, Except Per Share Amounts)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
Interest
Income:
|
|
|
|
|
|
|
|
|
Agency MBS
|
|
$
|
13,170
|
|
$
|
16,587
|
|
$
|
28,463
|
|
$
|
34,481
|
Non-Agency
MBS
|
|
55,043
|
|
70,269
|
|
111,145
|
|
149,477
|
CRT
securities
|
|
8,695
|
|
7,846
|
|
18,191
|
|
14,222
|
MSR related
assets
|
|
6,219
|
|
5,905
|
|
13,842
|
|
10,639
|
Residential whole
loans held at carrying value
|
|
17,935
|
|
8,503
|
|
32,264
|
|
17,193
|
Cash and cash
equivalent investments
|
|
685
|
|
1,047
|
|
1,594
|
|
1,402
|
Interest
Income
|
|
$
|
101,747
|
|
$
|
110,157
|
|
$
|
205,499
|
|
$
|
227,414
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
Repurchase agreements
and other advances
|
|
$
|
46,234
|
|
$
|
46,802
|
|
$
|
91,951
|
|
$
|
95,141
|
Other interest
expense
|
|
5,576
|
|
2,220
|
|
10,413
|
|
4,230
|
Interest
Expense
|
|
$
|
51,810
|
|
$
|
49,022
|
|
$
|
102,364
|
|
$
|
99,371
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
$
|
49,937
|
|
$
|
61,135
|
|
$
|
103,135
|
|
$
|
128,043
|
|
|
|
|
|
|
|
|
|
Other-Than-Temporary Impairments:
|
|
|
|
|
|
|
|
|
Total
other-than-temporary impairment losses
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(63)
|
Portion of loss
reclassed from other comprehensive income
|
|
—
|
|
(618)
|
|
—
|
|
(969)
|
Net Impairment
Losses Recognized in Earnings
|
|
$
|
—
|
|
$
|
(618)
|
|
$
|
—
|
|
$
|
(1,032)
|
|
|
|
|
|
|
|
|
|
Other Income,
net:
|
|
|
|
|
|
|
|
|
Net gain on
residential whole loans held at fair value
|
|
$
|
32,443
|
|
$
|
16,208
|
|
$
|
70,941
|
|
$
|
29,981
|
Net gain on sales of
investment securities
|
|
7,429
|
|
5,889
|
|
16,246
|
|
15,597
|
Other, net
|
|
1,134
|
|
14,847
|
|
1,479
|
|
19,359
|
Other Income,
net
|
|
$
|
41,006
|
|
$
|
36,944
|
|
$
|
88,666
|
|
$
|
64,937
|
|
|
|
|
|
|
|
|
|
Operating and
Other Expense:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
$
|
7,038
|
|
$
|
7,573
|
|
$
|
13,786
|
|
$
|
15,366
|
Other general and
administrative expense
|
|
5,582
|
|
5,754
|
|
9,414
|
|
9,979
|
Loan servicing and
other related operating expenses
|
|
7,928
|
|
4,199
|
|
14,811
|
|
8,608
|
Operating and
Other Expense
|
|
$
|
20,548
|
|
$
|
17,526
|
|
$
|
38,011
|
|
$
|
33,953
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
70,395
|
|
$
|
79,935
|
|
$
|
153,790
|
|
$
|
157,995
|
Less Preferred Stock
Dividends
|
|
3,750
|
|
3,750
|
|
7,500
|
|
7,500
|
Net Income
Available to Common Stock and Participating
Securities
|
|
$
|
66,645
|
|
$
|
76,185
|
|
$
|
146,290
|
|
$
|
150,495
|
|
|
|
|
|
|
|
|
|
Earnings per
Common Share - Basic and Diluted
|
|
$
|
0.17
|
|
$
|
0.20
|
|
$
|
0.36
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
Dividends Declared
per Share of Common Stock
|
|
$
|
0.20
|
|
$
|
0.20
|
|
$
|
0.40
|
|
$
|
0.40
|
INVESTOR
CONTACT:
|
InvestorRelations@mfafinancial.com
|
|
212-207-6488
|
|
www.mfafinancial.com
|
|
|
MEDIA
CONTACT:
|
Abernathy
MacGregor
|
|
Tom
Johnson
|
|
212-371-5999
|
View original
content:http://www.prnewswire.com/news-releases/mfa-financial-inc-announces-second-quarter-2018-financial-results-300690407.html
SOURCE MFA Financial, Inc.