NEW YORK, Nov. 5, 2020 /PRNewswire/ -- MFA Financial, Inc.
(NYSE:MFA) today provided its financial results for the third
quarter ended September 30, 2020.
Third Quarter 2020 financial results
update:
- MFA generated third quarter net income of $79.0 million, or $0.17 per common share.
- GAAP book value at September 30,
2020 was $4.61 per common
share, while Economic book value, a non-GAAP financial measure of
MFA's financial position that adjusts GAAP book value by the amount
of unrealized market value changes in residential whole loans held
at carrying value for GAAP reporting, was $4.92 per common share at quarter-end.
- Earnings and changes in book value during the quarter were
driven by continued improvements in the values of residential
mortgage assets. In particular, values of our various types of
residential whole loans increased appreciably during the period.
Income from residential whole loans at fair value included
$58.9 million of market value gains.
Changes in the fair value of loans held on our balance at carrying
value drove the increase in Economic book value, which has
increased in excess of 20% since March 31,
2020.
- We continued to make significant progress on initiatives to
lower the cost of financing our investments with more durable forms
of borrowing. We completed a $390.0
million securitization transaction of Non-QM assets in early
September, which generated $92.7
million of additional liquidity and lowered the funding
costs for the associated assets by approximately 165 basis points.
In addition, following the end of the quarter, we completed a
$570 million Non-QM securitization
transaction in late October, which generated $125.1 million of additional liquidity and
lowered the funding costs for the associated assets by
approximately 179 basis points.
- Subsequent to the end of the third quarter we repaid in full,
without penalty or yield maintenance, the remaining principal
balance of $481,250,000 under the 11%
senior secured term loan that we obtained from Apollo and Athene on
June 26, 2020.
- MFA paid its previously declared cash dividend of $0.05 per share of common stock on October 30, 2020. On September 30, 2020 the Company paid its
previously declared preferred stock dividends on its Series B and
Series C preferred stock.
- MFA's Board of Directors has authorized a share repurchase for
up to $250 million of the Company's
common stock.
- Following the completion of the second Non-QM securitization,
the repayment of the loan from Apollo and Athene and the payment of
the dividend to common stockholders on October 30, 2020, MFA's cash totaled
approximately $641.1 million.
Commenting on the third quarter 2020 results, Craig Knutson, MFA's CEO and President said,
"MFA's third quarter financial results were the beginning of what
we hope is a return to normal in this tumultuous year of
2020. Strong housing metrics combined with a continued
tightening in credit spreads contributed materially to our third
quarter earnings and also to book value, particularly our Economic
book value, which was up over 10% in the quarter. We
reinstated dividends on both our Series B and Series C Preferred
Stock, paid all accrued but previously unpaid dividends on
July 31st and resumed normal dividend
payments on September 30th. We also paid a $0.05 dividend on our common stock on
October 30th to stockholders of
record on September 30, 2020."
Mr. Knutson added, "We have made substantial progress on
multiple initiatives since June 30th
that we believe should have a significant positive impact on our
results in the fourth quarter and into 2021. Recall that we
ended the second quarter after exiting forbearance on June 26th having restructured our funding
liabilities to include $2 billion of
non-mark-to-market term financing and a $500
million senior secured term loan. While this financing
was critical in fortifying our balance sheet at the time, the cost
of this debt was predictably expensive. We have completed two
Non-QM securitizations aggregating over $960
million (the second of which closed last week), which
substantially lowers our cost of financing while preserving the
non-recourse, non-mark-to-market and term elements of these
borrowings. In addition, through the additional liquidity
generated from these transactions together with liquidity generated
by our portfolio, we have also fully paid off the $500 million senior secured term loan. This
loan had a scheduled amortization payment of $18.75 million on September 30, and we paid off the balance during
October."
Q3 2020 Portfolio Activity
MFA's residential mortgage investment portfolio decreased by
$308.0 million during the third
quarter, primarily due to portfolio run-off. Acquisition of
new investments continued to be limited, with $39.7 million of Non-QM loans purchased during
the quarter.
At September 30, 2020, the net carrying value of our
investments in residential whole loans totaled $5.6 billion. Of this amount, $4.4 billion is recorded at carrying value and
$1.2 billion is recorded at fair
value on our consolidated balance sheet. Loans held at
carrying value generated an overall yield of 4.63% during the
quarter, with purchased performing loans generating a yield of
4.58% and purchased credit deteriorated loans generating a yield of
4.89%. Yields on Loans held at carrying value declined
compared to the prior quarter, primarily due to an increase in
non-accrual loans in our Non-QM loan portfolio. Loans that
become more than 90 days delinquent during the period are placed on
non-accrual status and any previously recognized interest income is
reversed. The amount of Non-QM loans that were more than 90
days delinquent, measured as a percentage of the unpaid principal
balance, increased during the quarter and was 6.7% at September 30, 2020, compared to 0.9% at
June 30, 2020. In addition, the
amount of purchased credit deteriorated loans that were more than
90 days delinquent, measured as a percentage of the unpaid
principal balance, increased during the quarter and was 18.2% at
September 30, 2020, compared to 15.3% at June 30, 2020. Delinquency levels for our
Rehabilitation loans improved from the prior quarter, with loans
that were more than 60 days delinquent totaling $143.4 million, a decline of $38.5 million from June
30, 2020.
For the third quarter, a reversal of the provision for credit
losses of $30.5 million was recorded
on residential whole loans held at carrying value, primarily
reflecting an adjustment to management's estimates related to
future rates of unemployment and lower loan balances. The
total allowance for credit losses recorded on residential whole
loans held at carrying value at September 30, 2020 was
$106.2 million. In addition, as
of September 30, 2020, reserves for credit losses totaling
approximately $1.6 million were
recorded related to undrawn commitments on loans held at carrying
value.
Net gains for the quarter on residential whole loans measured at
fair value through earnings were $76.9
million, including unrealized gains in the fair value of the
underlying loans of $58.9 million,
and $18.0 million of coupon interest
payments and other gains realized during the quarter. The
percentage amount of fair value loans that were more than 90 days
delinquent marginally increased to 49.0% at September 30, 2020
from 48.8% at June 30, 2020.
In addition, as of the end of the quarter, we held approximately
$299 million of REO properties, which
has decreased from $349 million as of
the end of the second quarter as foreclosure activity slowed, while
asset sales continued. 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.
During the quarter, the Company disposed of approximately
$116,000 of Legacy Non-Agency MBS,
realizing net gains of $48,000.
With these sales, MFA has exited its remaining Legacy Non-Agency
MBS.
At the end of the third quarter, MFA held approximately
$53.8 million of RPL/NPL MBS.
In addition, our investments in MSR-related assets totaled
$252.2 million at September 30,
2020. Our investments in CRT securities totaled
$96.3 million at September 30,
2020.
General and Administrative and other expenses
For the three months ended September 30,
2020, MFA's costs for compensation and benefits and other
general and administrative expenses were $18.3 million, or an annualized 2.90% of average
stockholders' equity for the quarter ended September 30,
2020. Compensation related expenses for the quarter were
elevated as a result of a $3.6
million provision for severance related expenses associated
with a workforce reduction.
Stock Repurchase Program
On November 2, 2020, MFA's Board
of Directors authorized a share repurchase program under which MFA
may repurchase up to $250 million of
its common stock through the end of 2022. The Board's
authorization replaces the authorization under MFA's existing stock
repurchase program that was adopted in December 2013, which authorized the company to
repurchase up to 10 million shares of common stock and under which
approximately 6.6 million shares remained available for
repurchase.
The stock repurchase program does not require the purchase of
any minimum number of shares. The timing and extent to which
MFA repurchases its shares will depend upon, among other things,
market conditions, share price, liquidity, regulatory requirements
and other factors, and repurchases may be commenced or suspended at
any time without prior notice. Acquisitions under the share
repurchase program may be made in the open market, through
privately negotiated transactions or block trades or other means,
in accordance with applicable securities laws.
MFA expects to fund the share repurchases from current cash
balances and future investment portfolio run-off. The Company
currently has approximately 453.3 million shares of common stock
outstanding.
The following table presents MFA's asset allocation as of
September 30, 2020, and the third quarter 2020 yield on
average interest-earning assets, average cost of funds and net
interest rate spread for the various asset types.
Table 1 - Asset
Allocation
|
|
At September 30,
2020
|
|
Residential
Whole
Loans, at
Carrying
Value (1)
|
|
Residential
Whole
Loans, at
Fair Value
|
|
Residential
Mortgage
Securities
|
|
MSR-
Related
Assets
|
|
Other,
net (2)
|
|
Total
|
($ in Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value/Carrying
Value
|
|
$
|
4,388
|
|
|
$
|
1,230
|
|
|
$
|
153
|
|
|
$
|
252
|
|
|
$
|
1,395
|
|
|
$
|
7,418
|
|
Financing Agreements
with non-mark-to-market
collateral provisions
|
|
(1,471)
|
|
|
(256)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,727)
|
|
Financing Agreements
with mark-to-market
collateral provisions
|
|
(1,038)
|
|
|
(193)
|
|
|
(89)
|
|
|
(135)
|
|
|
(35)
|
|
|
(1,490)
|
|
Less Senior secured
credit agreement
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(474)
|
|
|
(474)
|
|
Less Securitized
Debt
|
|
(470)
|
|
|
(369)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(839)
|
|
Less Convertible Senior
Notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(225)
|
|
|
(225)
|
|
Less Senior
Notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97)
|
|
|
(97)
|
|
Net Equity
Allocated
|
|
$
|
1,409
|
|
|
$
|
412
|
|
|
$
|
64
|
|
|
$
|
117
|
|
|
$
|
564
|
|
|
$
|
2,566
|
|
Debt/Net Equity Ratio
(3)
|
|
2.1
|
x
|
|
2.0
|
x
|
|
1.4
|
x
|
|
1.2
|
x
|
|
|
|
1.9
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended September 30, 2020
|
|
|
|
|
|
|
|
|
Yield on Average
Interest Earning Assets (4)(5)
|
|
4.63
|
%
|
|
N/A
|
|
6.75
|
%
|
|
11.79
|
%
|
|
|
|
4.46
|
%
|
Less Average Cost
of
Funds
(6)
|
|
(3.39)
|
|
|
(3.78)
|
|
|
(3.60)
|
|
|
(3.43)
|
|
|
|
|
(4.43)
|
|
Net Interest Rate
Spread
|
|
1.24
|
%
|
|
N/A
|
|
3.15
|
%
|
|
8.36
|
%
|
|
|
|
0.03
|
%
|
|
|
(1)
|
Includes $2.4
billion of Non-QM loans, $677.2 million of Rehabilitation loans,
$474.0 million of Single-family rental loans, $147.6 million of
Seasoned performing loans and $650.3 million of Purchased Credit
Deteriorated Loans. At September 30, 2020, the total
fair value of these loans is estimated to be approximately $4.5
billion.
|
(2)
|
Includes $884.2
million of cash and cash equivalents, $5.3 million of restricted
cash, $298.9 million of real estate owned, and $108.9 million of
capital contributions made to loan origination partners, as well as
other assets and other liabilities.
|
(3)
|
Total Debt/Net
Equity ratio represents the sum of borrowings under our financing
agreements noted above as a multiple of net equity
allocated.
|
(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 September 30, 2020, the
amortized cost of our interest earning assets were as follows:
Legacy Non-Agency MBS - $2.2 million; RPL/NPL MBS - $49.2 million;
Credit Risk Transfer securities - $85.7 million; Residential Whole
Loans at carrying value - $4.5 billion; and MSR-related assets -
$202.6 million. In addition, the yield for residential whole
loans at carrying value was 4.58%, net of 5 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.
|
(5)
|
Interest payments
received on residential whole loans at fair value is reported in
Other Income as Net (loss)/gain on residential whole loans measured
at fair value through earnings in our statement of
operations. Accordingly, no yield is presented as such loans
are not included in interest earning assets for reporting
purposes.
|
(6)
|
Average cost of
funds includes interest on financing agreements, Convertible Senior
Notes, Senior Notes, securitized debt and Secured Term
notes.
|
The following table presents the activity for our residential
mortgage asset portfolio for the three months ended
September 30, 2020:
Table 2 -
Investment Portfolio Activity Q3 2020
|
|
(In Millions)
|
|
June 30,
2020
|
|
Runoff
(1)
|
|
Acquisitions
|
|
Other
(2)
|
|
September 30,
2020
|
|
Change
|
Residential whole
loans and REO
|
|
$
|
6,226
|
|
|
$
|
(455)
|
|
|
$
|
40
|
|
|
$
|
105
|
|
|
$
|
5,916
|
|
|
$
|
(310)
|
|
MSR-related
assets
|
|
254
|
|
|
(17)
|
|
|
—
|
|
|
15
|
|
|
252
|
|
|
(2)
|
|
Residential mortgage
securities
|
|
149
|
|
|
(2)
|
|
|
—
|
|
|
6
|
|
|
153
|
|
|
4
|
|
Totals
|
|
$
|
6,629
|
|
|
$
|
(474)
|
|
|
$
|
40
|
|
|
$
|
126
|
|
|
$
|
6,321
|
|
|
$
|
(308)
|
|
|
|
(1)
|
Primarily includes
principal repayments, cash collections on Purchased Credit
Deteriorated Loans and sales of REO.
|
(2)
|
Primarily includes
changes in fair value and adjustments to record lower of cost or
estimated fair value adjustments on REO.
|
The following tables present information on our investments in
residential whole loans.
Residential Whole Loans, at Carrying Value at
September 30, 2020 and December 31, 2019:
Table 3 -
Portfolio composition
|
|
(Dollars In
Thousands)
|
|
September 30,
2020
|
|
December 31,
2019
|
Purchased Performing
Loans:
|
|
|
|
|
Non-QM
loans
|
|
$
|
2,465,148
|
|
|
$
|
3,707,245
|
|
Rehabilitation
loans
|
|
699,868
|
|
|
1,026,097
|
|
Single-family rental
loans
|
|
479,070
|
|
|
460,742
|
|
Seasoned performing
loans
|
|
147,706
|
|
|
176,569
|
|
Total Purchased
Performing Loans
|
|
3,791,792
|
|
|
5,370,653
|
|
Purchased Credit
Deteriorated Loans (1)
|
|
702,013
|
|
|
698,717
|
|
Total Residential
whole loans, at carrying value
|
|
$
|
4,493,805
|
|
|
$
|
6,069,370
|
|
Allowance for credit
losses on residential whole loans held at carrying value
|
|
(106,246)
|
|
|
(3,025)
|
|
Total Residential
whole loans at carrying value, net
|
|
$
|
4,387,559
|
|
|
$
|
6,066,345
|
|
|
|
|
|
|
Number of
loans
|
|
13,754
|
|
|
17,082
|
|
|
|
(1)
|
The amortized cost
basis of Purchased Credit Deteriorated Loans was increased by $62.6
million on January 1, 2020 in connection with the adoption of ASU
2016-13.
|
Table 4 - Yields
and average balances
|
|
|
|
For the
Three-Month Period Ended
|
(Dollars in
Thousands)
|
|
September 30,
2020
|
|
June 30,
2020
|
|
September 30,
2019
|
|
|
Interest
|
|
Average
Balance
|
|
Average
Yield
|
|
Interest
|
|
Average
Balance
|
|
Average
Yield
|
|
Interest
|
|
Average
Balance
|
|
Average
Yield
|
Purchased Performing
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-QM
loans
|
|
$
|
25,884
|
|
|
$
|
2,534,967
|
|
|
4.08
|
%
|
|
$
|
37,259
|
|
|
$
|
3,061,828
|
|
|
4.87
|
%
|
|
$
|
30,258
|
|
|
$
|
2,401,791
|
|
|
5.04
|
%
|
Rehabilitation
loans
|
|
10,863
|
|
|
802,661
|
|
|
5.41
|
%
|
|
13,312
|
|
|
929,921
|
|
|
5.73
|
%
|
|
15,142
|
|
|
932,394
|
|
|
6.50
|
%
|
Single-family rental
loans
|
|
6,917
|
|
|
489,536
|
|
|
5.65
|
%
|
|
7,268
|
|
|
500,846
|
|
|
5.80
|
%
|
|
5,025
|
|
|
335,524
|
|
|
5.99
|
%
|
Seasoned performing
loans
|
|
1,945
|
|
|
153,003
|
|
|
5.08
|
%
|
|
2,253
|
|
|
160,695
|
|
|
5.61
|
%
|
|
3,166
|
|
|
195,877
|
|
|
6.47
|
%
|
Total Purchased
Performing Loans
|
|
45,609
|
|
|
3,980,167
|
|
|
4.58
|
%
|
|
60,092
|
|
|
4,653,290
|
|
|
5.17
|
%
|
|
53,591
|
|
|
3,865,586
|
|
|
5.55
|
%
|
Purchased Credit
Deteriorated Loans
|
|
8,784
|
|
|
718,957
|
|
|
4.89
|
%
|
|
9,335
|
|
|
736,225
|
|
|
5.07
|
%
|
|
10,635
|
|
|
738,719
|
|
|
5.76
|
%
|
Total Residential
whole loans, at carrying value
|
|
$
|
54,393
|
|
|
$
|
4,699,124
|
|
|
4.63
|
%
|
|
$
|
69,427
|
|
|
$
|
5,389,515
|
|
|
5.15
|
%
|
|
$
|
64,226
|
|
|
$
|
4,604,305
|
|
|
5.58
|
%
|
Table 5 - Credit
related metrics
|
|
September 30,
2020
|
|
|
|
Carrying
Value
|
|
Amortized
Cost Basis
|
|
Unpaid
Principal
Balance
("UPB")
|
|
Weighted
Average
Coupon (1)
|
|
Weighted
Average
Term to
Maturity
(Months)
|
|
Weighted
Average
LTV
Ratio (2)
|
|
Weighted
Average
Original
FICO (3)
|
|
Aging by Amortized
Cost Basis
|
|
|
|
|
|
|
|
|
|
|
|
Past Due
Days
|
(Dollars
In Thousands)
|
|
|
|
|
|
|
|
|
Current
|
|
30-59
|
|
60-89
|
|
90+
|
Purchased Performing
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-QM loans
(4)
|
|
$
|
2,438,395
|
|
|
$
|
2,465,148
|
|
|
$
|
2,397,247
|
|
|
5.87
|
%
|
|
352
|
|
64
|
%
|
|
712
|
|
$
|
2,174,935
|
|
|
$
|
74,231
|
|
|
$
|
52,069
|
|
|
$
|
163,913
|
|
Rehabilitation loans
(4)
|
|
677,235
|
|
|
699,868
|
|
|
699,868
|
|
|
7.28
|
|
|
4
|
|
63
|
|
|
718
|
|
491,343
|
|
|
65,166
|
|
|
22,995
|
|
|
120,364
|
|
Single-family rental
loans (4)
|
|
474,045
|
|
|
479,070
|
|
|
475,072
|
|
|
6.28
|
|
|
319
|
|
70
|
|
|
734
|
|
439,503
|
|
|
16,111
|
|
|
7,373
|
|
|
16,083
|
|
Seasoned performing
loans (4)
|
|
147,556
|
|
|
147,706
|
|
|
161,257
|
|
|
3.45
|
|
|
173
|
|
41
|
|
|
723
|
|
136,622
|
|
|
1,406
|
|
|
880
|
|
|
8,798
|
|
Purchased Credit
Deteriorated Loans (4)(5)
|
|
650,328
|
|
|
702,013
|
|
|
812,614
|
|
|
4.45
|
|
|
289
|
|
79
|
|
|
N/A
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
122,478
|
|
Residential whole
loans,
at carrying value,
total or weighted average
|
|
$
|
4,387,559
|
|
|
$
|
4,493,805
|
|
|
$
|
4,546,058
|
|
|
5.81
|
%
|
|
277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2019
|
|
|
|
Carrying
Value
|
|
Amortized
Cost Basis
|
|
Unpaid
Principal
Balance
("UPB")
|
|
Weighted
Average
Coupon (1)
|
|
Weighted
Average
Term to
Maturity
(Months)
|
|
Weighted
Average
LTV
Ratio (2)
|
|
Weighted
Average
Original
FICO (3)
|
|
Aging by
UPB
|
|
|
|
|
|
|
|
|
|
|
|
Past Due
Days
|
(Dollars
In Thousands)
|
|
|
|
|
|
|
|
|
Current
|
|
30-59
|
|
60-89
|
|
90+
|
Purchased
Performing Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-QM loans
(4)
|
|
$
|
3,706,857
|
|
|
$
|
3,707,245
|
|
|
$
|
3,592,701
|
|
|
5.96
|
%
|
|
368
|
|
67
|
%
|
|
716
|
|
$
|
3,492,533
|
|
|
$
|
59,963
|
|
|
$
|
19,605
|
|
|
$
|
20,600
|
|
Rehabilitation loans
(4)
|
|
1,023,766
|
|
|
1,026,097
|
|
|
1,026,097
|
|
|
7.30
|
|
|
8
|
|
64
|
|
|
717
|
|
868,281
|
|
|
67,747
|
|
|
27,437
|
|
|
62,632
|
|
Single-family rental
loans (4)
|
|
460,679
|
|
|
460,741
|
|
|
457,146
|
|
|
6.29
|
|
|
324
|
|
70
|
|
|
734
|
|
432,936
|
|
|
15,948
|
|
|
2,047
|
|
|
6,215
|
|
Seasoned performing
loans
|
|
176,569
|
|
|
176,569
|
|
|
192,151
|
|
|
4.24
|
|
|
181
|
|
46
|
|
|
723
|
|
187,683
|
|
|
2,164
|
|
|
430
|
|
|
1,874
|
|
Purchased Credit
Impaired Loans (5)
|
|
698,474
|
|
|
698,718
|
|
|
873,326
|
|
|
4.46
|
|
|
294
|
|
81
|
|
|
N/A
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
108,998
|
|
Residential whole
loans,
at carrying value,
total or weighted average
|
|
$
|
6,066,345
|
|
|
$
|
6,069,370
|
|
|
$
|
6,141,421
|
|
|
5.96
|
%
|
|
288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Weighted average
is calculated based on the interest bearing principal balance of
each loan within the related category. For loans acquired with
servicing rights released by the seller, interest rates included in
the calculation do not reflect loan servicing fees. For loans
acquired with servicing rights retained by the seller, interest
rates included in the calculation are net of servicing
fees.
|
(2)
|
LTV represents the
ratio of the total unpaid principal balance of the loan to the
estimated value of the collateral securing the related loan as of
the most recent date available, which may be the origination date.
For Rehabilitation loans, the LTV presented is the ratio of the
maximum unpaid principal balance of the loan, including unfunded
commitments, to the estimated "after repaired" value of the
collateral securing the related loan, where available. For certain
Rehabilitation loans, totaling $222.2 million and $269.2 million at
September 30, 2020 and December 31, 2019, respectively, an
after repaired valuation was not obtained and the loan was
underwritten based on an "as is" valuation. The weighted average
LTV of these loans based on the current unpaid principal balance
and the valuation obtained during underwriting, is 68% and 69% at
September 30, 2020 and December 31, 2019, respectively.
Excluded from the calculation of weighted average LTV are certain
low value loans secured by vacant lots, for which the LTV ratio is
not meaningful.
|
(3)
|
Excludes loans for
which no Fair Isaac Corporation ("FICO") score is
available.
|
(4)
|
At
September 30, 2020 and December 31, 2019 the difference
between the Carrying Value and Amortized Cost Basis represents the
related allowance for credit losses.
|
(5)
|
Purchased Credit
Deteriorated Loans tend to be characterized by varying performance
of the underlying borrowers over time, including loans where
multiple months of payments are received in a period to bring the
loan to current status, followed by months where no payments are
received. Accordingly, delinquency information is presented
for loans that are more than 90 days past due that are considered
to be seriously delinquent.
|
Table 6 -
Allowance for Credit Losses
|
|
The following table
presents a roll-forward of the allowance for credit losses on the
Company's Residential Whole Loans, at Carrying Value:
|
|
|
|
Nine Months Ended
September 30, 2020
|
(Dollars In
Thousands)
|
|
Non-QM
Loans
|
|
Rehabilitation
Loans (1)(2)
|
|
Single-family
Rental Loans
|
|
Seasoned
Performing
Loans
|
|
Purchased
Credit
Deteriorated
Loans (3)
|
|
Totals
|
Allowance for credit
losses at December 31, 2019
|
|
$
|
388
|
|
|
$
|
2,331
|
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
244
|
|
|
$
|
3,025
|
|
Transition adjustment
on adoption of ASU 2016-13 (4)
|
|
6,904
|
|
|
517
|
|
|
754
|
|
|
19
|
|
|
62,361
|
|
|
70,555
|
|
Current
provision
|
|
26,358
|
|
|
33,213
|
|
|
6,615
|
|
|
230
|
|
|
8,481
|
|
|
74,897
|
|
Write-offs
|
|
—
|
|
|
(428)
|
|
|
—
|
|
|
—
|
|
|
(219)
|
|
|
(647)
|
|
Valuation adjustment
on loans held for sale
|
|
70,181
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70,181
|
|
Allowance for credit
and valuation losses at
March 31, 2020
|
|
$
|
103,831
|
|
|
$
|
35,633
|
|
|
$
|
7,431
|
|
|
$
|
249
|
|
|
$
|
70,867
|
|
|
$
|
218,011
|
|
Current
provision/(reversal)
|
|
(2,297)
|
|
|
(5,213)
|
|
|
(500)
|
|
|
(25)
|
|
|
(2,579)
|
|
|
(10,614)
|
|
Write-offs
|
|
—
|
|
|
(420)
|
|
|
—
|
|
|
—
|
|
|
(207)
|
|
|
(627)
|
|
Valuation adjustment
on loans held for sale
|
|
(70,181)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70,181)
|
|
Allowance for credit
losses at June 30, 2020
|
|
$
|
31,353
|
|
|
$
|
30,000
|
|
|
$
|
6,931
|
|
|
$
|
224
|
|
|
$
|
68,081
|
|
|
$
|
136,589
|
|
Current
provision/(reversal)
|
|
(4,568)
|
|
|
(7,140)
|
|
|
(1,906)
|
|
|
(74)
|
|
|
(16,374)
|
|
|
(30,062)
|
|
Write-offs
|
|
(32)
|
|
|
(227)
|
|
|
—
|
|
|
—
|
|
|
(22)
|
|
|
(281)
|
|
Allowance for credit
losses at September 30, 2020
|
|
$
|
26,753
|
|
|
$
|
22,633
|
|
|
$
|
5,025
|
|
|
$
|
150
|
|
|
$
|
51,685
|
|
|
$
|
106,246
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
(Dollars In
Thousands)
|
|
Non-QM
Loans
|
|
Rehabilitation
Loans
|
|
Single-family
Rental Loans
|
|
Seasoned
Performing
Loans
|
|
Purchased
Credit
Deteriorated
Loans
|
|
Totals
|
Allowance for credit
losses at December 31, 2018
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
968
|
|
|
$
|
968
|
|
Current
provision
|
|
—
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
183
|
|
|
683
|
|
Write-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Allowance for credit
losses at March 31, 2019
|
|
$
|
—
|
|
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,151
|
|
|
$
|
1,651
|
|
Current
provision
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
385
|
|
|
385
|
|
Write-offs
|
|
—
|
|
|
(50)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50)
|
|
Allowance for credit
losses at June 30, 2019
|
|
$
|
—
|
|
|
$
|
450
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,536
|
|
|
$
|
1,986
|
|
Current
provision
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
347
|
|
|
347
|
|
Write-offs
|
|
—
|
|
|
(62)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62)
|
|
Allowance for credit
losses at September 30, 2019
|
|
$
|
—
|
|
|
$
|
388
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,883
|
|
|
$
|
2,271
|
|
|
|
(1)
|
In connection with
purchased Rehabilitation loans, the Company had unfunded
commitments of $73.2 million, with an allowance for credit losses
of $1.6 million at September 30, 2020. Such allowance is
included in "Other liabilities" in the Company's consolidated
balance sheets (see Note 9).
|
(2)
|
Includes $143.4
million of loans that were assessed for credit losses based on a
collateral dependent methodology.
|
(3)
|
Includes $72.7
million of loans that were assessed for credit losses based on a
collateral dependent methodology.
|
(4)
|
Of the $70.6
million of reserves recorded on adoption of ASU 2016-13, $8.3
million was recorded as an adjustment to stockholders' equity and
$62.4 million was recorded as a "gross up" of the amortized cost
basis of Purchased Credit Deteriorated Loans.
|
Residential Whole Loans, at fair value at
September 30, 2020 and December 31, 2019:
Table 7 - Credit
related metrics
|
|
(Dollars
in Thousands)
|
|
September 30,
2020
|
|
December 31,
2019
|
Less than 60 Days
Past Due:
|
|
|
|
|
Outstanding principal
balance
|
|
$
|
599,461
|
|
|
$
|
666,026
|
|
Aggregate fair
value
|
|
$
|
577,761
|
|
|
$
|
641,616
|
|
Weighted Average LTV
Ratio (1)
|
|
74.33
|
%
|
|
76.69
|
%
|
Number of
loans
|
|
3,038
|
|
|
3,159
|
|
|
|
|
|
|
60 Days to 89 Days
Past Due:
|
|
|
|
|
Outstanding principal
balance
|
|
$
|
55,183
|
|
|
$
|
58,160
|
|
Aggregate fair
value
|
|
$
|
49,188
|
|
|
$
|
53,485
|
|
Weighted Average LTV
Ratio (1)
|
|
83.62
|
%
|
|
79.48
|
%
|
Number of
loans
|
|
259
|
|
|
313
|
|
|
|
|
|
|
90 Days or More Past
Due:
|
|
|
|
|
Outstanding principal
balance
|
|
$
|
679,211
|
|
|
$
|
767,320
|
|
Aggregate fair
value
|
|
$
|
602,715
|
|
|
$
|
686,482
|
|
Weighted Average LTV
Ratio (1)
|
|
87.82
|
%
|
|
89.69
|
%
|
Number of
loans
|
|
2,532
|
|
|
2,983
|
|
Total Residential whole loans, at fair value
|
|
$
|
1,229,664
|
|
|
$
|
1,381,583
|
|
|
|
(1)
|
LTV represents the
ratio of the total unpaid principal balance of the loan, to the
estimated value of the collateral securing the related loan.
Excluded from the calculation of weighted average LTV are certain
low value loans secured by vacant lots, for which the LTV ratio is
not meaningful.
|
Table 8 - Net
(loss)/gain on residential whole loans measured at fair value
through earnings
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(In
Thousands)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Coupon payments,
realized gains, and other income
received (1)
|
|
$
|
17,477
|
|
|
$
|
22,202
|
|
|
$
|
54,684
|
|
|
$
|
67,966
|
|
Net unrealized
gains/(losses)
|
|
58,863
|
|
|
13,185
|
|
|
(13,683)
|
|
|
33,312
|
|
Net gain on transfers
to REO
|
|
531
|
|
|
4,788
|
|
|
3,430
|
|
|
15,637
|
|
Total
|
|
$
|
76,871
|
|
|
$
|
40,175
|
|
|
$
|
44,431
|
|
|
$
|
116,915
|
|
|
|
(1)
|
Primarily includes
gains on liquidation of non-performing loans, including the
recovery of delinquent interest payments, recurring coupon interest
payments received on mortgage loans that are contractually current,
and cash payments received from private mortgage insurance on
liquidated loans.
|
Webcast
MFA Financial, Inc. plans to host a live audio
webcast of its investor conference call on Thursday,
November 5, 2020, at 10:00 a.m.
(Eastern Time) to discuss its third quarter 2020 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," the negative of these words 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. These forward-looking
statements include information about possible or assumed future
results with respect to our business, financial condition,
liquidity, results of operations, plans and objectives.
Statements regarding the following subjects, among others, may be
forward-looking: risks related to the ongoing spread of the novel
coronavirus and the COVID-19 pandemic, including its effect on the
general economy and our business, financial position and results of
operations (including, among other potential effects, increased
delinquencies and greater than expected losses in our whole loan
portfolio); changes in interest rates and the market (i.e., fair)
value of MFA's residential whole loans, MBS and other assets;
changes in the prepayment rates on residential mortgage assets, an
increase of which could result in a reduction of the yield on
certain investments in its portfolio and could require MFA to
reinvest the proceeds received by it as a result of such
prepayments in investments with lower coupons, while a decrease in
which could result in an increase in the interest rate duration of
certain investments in MFA's portfolio making their valuation more
sensitive to changes in interest rates and could result in lower
forecasted cash flows; 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; 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 residential whole
loans and the extent of prepayments, realized losses and changes in
the composition of MFA's residential whole loan portfolios that may
occur during the applicable tax period, including gain or loss on
any MBS disposals and whole loan modifications, foreclosures and
liquidations; the timing and amount of distributions to
stockholders, which are declared and paid at the discretion of
MFA's Board 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 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 continue growing
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 MFA's investments in nonperforming 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; targeted or expected returns on MFA's investments in
recently-originated loans, the performance of which is, similar to
MFA's other mortgage loan investments, subject to, among other
things, differences in prepayment risk, credit risk and financing
cost associated with such investments; risks associated with MFA's
investments in MSR-related assets, including servicing, regulatory
and economic risks, risks associated with our investments in loan
originators, 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)
|
|
September
30,
2020
|
|
December
31,
2019
|
|
|
(Unaudited)
|
|
|
Assets:
|
|
|
|
|
Residential whole
loans:
|
|
|
|
|
Residential whole
loans, at carrying value ($3,843,153 and $4,847,782 pledged as
collateral, respectively) (1)
|
|
$
|
4,493,805
|
|
|
$
|
6,069,370
|
|
Residential whole
loans, at fair value ($705,666 and $794,684 pledged as collateral,
respectively) (1)
|
|
1,229,664
|
|
|
1,381,583
|
|
Allowance for credit
losses on residential whole loans held at carrying value
|
|
(106,246)
|
|
|
(3,025)
|
|
Total residential
whole loans, net
|
|
5,617,223
|
|
|
7,447,928
|
|
Residential mortgage
securities, at fair value ($152,765 and $3,966,591 pledged as
collateral, respectively)
|
|
152,765
|
|
|
3,983,519
|
|
Mortgage servicing
rights ("MSR") related assets ($252,183 and $1,217,002 pledged as
collateral, respectively)
|
|
252,183
|
|
|
1,217,002
|
|
Cash and cash
equivalents
|
|
884,171
|
|
|
70,629
|
|
Restricted
cash
|
|
5,303
|
|
|
64,035
|
|
Other
assets
|
|
571,614
|
|
|
784,251
|
|
Total
Assets
|
|
$
|
7,483,259
|
|
|
$
|
13,567,364
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Financing agreements
($4,080,461 and $0 held at fair value, respectively)
|
|
$
|
4,851,121
|
|
|
$
|
10,031,606
|
|
Other
liabilities
|
|
66,482
|
|
|
151,806
|
|
Total
Liabilities
|
|
$
|
4,917,603
|
|
|
$
|
10,183,412
|
|
|
|
|
|
|
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
|
|
Preferred stock, $.01
par value; 6.50% Series C fixed-to-floating rate cumulative
redeemable; 12,650 shares
authorized; 11,000 shares issued and outstanding
($275,000 aggregate liquidation preference)
|
|
110
|
|
|
—
|
|
Common stock, $.01
par value; 874,300 and 886,950 shares authorized; 453,333 and
452,369 shares issued
and
outstanding, respectively
|
|
4,533
|
|
|
4,524
|
|
Additional paid-in
capital, in excess of par
|
|
3,924,584
|
|
|
3,640,341
|
|
Accumulated
deficit
|
|
(1,408,910)
|
|
|
(631,040)
|
|
Accumulated other
comprehensive income
|
|
45,259
|
|
|
370,047
|
|
Total Stockholders'
Equity
|
|
$
|
2,565,656
|
|
|
$
|
3,383,952
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
7,483,259
|
|
|
$
|
13,567,364
|
|
|
|
(1)
|
Includes
approximately $568.6 million and $186.4 million of Residential
whole loans, at carrying value and $521.2 million and $567.4
million of Residential whole loans, at fair value transferred to
consolidated VIEs at September 30, 2020 and December 31,
2019, 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
September 30,
|
|
Nine Months
Ended
September 30,
|
(In Thousands, Except Per Share Amounts)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
Interest
Income:
|
|
|
|
|
|
|
|
|
Residential whole
loans held at carrying value
|
|
$
|
54,393
|
|
|
$
|
64,226
|
|
|
$
|
207,306
|
|
|
$
|
171,725
|
|
Residential mortgage
securities
|
|
2,329
|
|
|
60,639
|
|
|
51,678
|
|
|
211,676
|
|
MSR-related
assets
|
|
6,241
|
|
|
15,274
|
|
|
30,189
|
|
|
38,232
|
|
Other
interest-earning assets
|
|
3,017
|
|
|
1,679
|
|
|
9,089
|
|
|
4,272
|
|
Cash and cash
equivalent investments
|
|
100
|
|
|
903
|
|
|
646
|
|
|
2,703
|
|
Interest
Income
|
|
$
|
66,080
|
|
|
$
|
142,721
|
|
|
$
|
298,908
|
|
|
$
|
428,608
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
Asset-backed and
other collateralized financing arrangements
|
|
$
|
50,054
|
|
|
$
|
79,932
|
|
|
$
|
209,998
|
|
|
$
|
238,773
|
|
Other interest
expense
|
|
5,910
|
|
|
5,891
|
|
|
17,716
|
|
|
11,120
|
|
Interest
Expense
|
|
$
|
55,964
|
|
|
$
|
85,823
|
|
|
$
|
227,714
|
|
|
$
|
249,893
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
$
|
10,116
|
|
|
$
|
56,898
|
|
|
$
|
71,194
|
|
|
$
|
178,715
|
|
|
|
|
|
|
|
|
|
|
Reversal/(Provision) for credit and valuation
losses on
residential whole loans and other financial
instruments
|
|
$
|
27,244
|
|
|
$
|
(347)
|
|
|
$
|
(38,090)
|
|
|
$
|
(1,538)
|
|
Net Interest
Income after Provision for Credit and Valuation
Losses
|
|
$
|
37,360
|
|
|
$
|
56,551
|
|
|
$
|
33,104
|
|
|
$
|
177,177
|
|
|
|
|
|
|
|
|
|
|
Other Income,
net:
|
|
|
|
|
|
|
|
|
Impairment and other
losses on securities available-for-sale and
other assets
|
|
$
|
(221)
|
|
|
$
|
—
|
|
|
$
|
(424,966)
|
|
|
$
|
—
|
|
Net realized
gain/(loss) on sales of residential mortgage
securities and residential whole loans
|
|
48
|
|
|
17,708
|
|
|
(188,847)
|
|
|
50,027
|
|
Net unrealized
gain/(loss) on residential mortgage securities
measured at fair value through
earnings
|
|
91
|
|
|
(695)
|
|
|
(13,432)
|
|
|
7,977
|
|
Net gain on
residential whole loans measured at fair value
through earnings
|
|
76,871
|
|
|
40,175
|
|
|
44,431
|
|
|
116,915
|
|
Loss on terminated
swaps previously designated as hedges for
accounting purposes
|
|
(7,177)
|
|
|
—
|
|
|
(57,034)
|
|
|
—
|
|
Other, net
|
|
7,498
|
|
|
5,241
|
|
|
2,370
|
|
|
(4,459)
|
|
Other
Income/(Loss), net
|
|
$
|
77,110
|
|
|
$
|
62,429
|
|
|
$
|
(637,478)
|
|
|
$
|
170,460
|
|
|
|
|
|
|
|
|
|
|
Operating and
Other Expense:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
$
|
11,657
|
|
|
$
|
7,920
|
|
|
$
|
29,134
|
|
|
$
|
24,315
|
|
Other general and
administrative expense
|
|
6,611
|
|
|
5,022
|
|
|
18,656
|
|
|
15,601
|
|
Loan servicing,
financing and other related costs
|
|
8,992
|
|
|
10,439
|
|
|
28,609
|
|
|
30,225
|
|
Costs associated with
restructuring/forbearance agreement
|
|
—
|
|
|
—
|
|
|
44,434
|
|
|
$
|
—
|
|
Operating and Other
Expense
|
|
$
|
27,260
|
|
|
$
|
23,381
|
|
|
$
|
120,833
|
|
|
$
|
70,141
|
|
|
|
|
|
|
|
|
|
|
Net
Income/(Loss)
|
|
$
|
87,210
|
|
|
$
|
95,599
|
|
|
$
|
(725,207)
|
|
|
$
|
277,496
|
|
Less Preferred Stock
Dividend Requirement
|
|
$
|
8,219
|
|
|
$
|
3,750
|
|
|
$
|
21,578
|
|
|
11,250
|
|
Net Income/(Loss)
Available to Common Stock and
Participating Securities
|
|
$
|
78,991
|
|
|
$
|
91,849
|
|
|
$
|
(746,785)
|
|
|
$
|
266,246
|
|
|
|
|
|
|
|
|
|
|
Basic
Earnings/(Loss) per Common Share
|
|
$
|
0.17
|
|
|
$
|
0.20
|
|
|
$
|
(1.65)
|
|
|
$
|
0.59
|
|
Diluted
Earnings/(Loss) per Common Share
|
|
$
|
0.17
|
|
|
$
|
0.20
|
|
|
$
|
(1.65)
|
|
|
$
|
0.58
|
|
Reconciliation of GAAP Book Value per Common Share to
non-GAAP Economic Book Value per Common Share
"Economic book value" is a non-GAAP financial measure of our
financial position. To calculate our Economic book value, our
portfolios of Residential whole loans at carrying value are
adjusted to their fair value, rather than the carrying value that
is required to be reported under the GAAP accounting model applied
to these loans. This adjustment is also reflected in our end
of period stockholders' equity in the table below. Management
considers that Economic book value provides investors with a useful
supplemental measure to evaluate our financial position as it
reflects the impact of fair value changes for all of our
residential mortgage assets, irrespective of the accounting model
applied for GAAP reporting purposes. Economic book value does
not represent and should not be considered as a substitute for
Stockholders' Equity, as determined in accordance with GAAP, and
our calculation of this measure may not be comparable to similarly
titled measures reported by other companies.
The following table provides a reconciliation of our GAAP book
value per common share to our non-GAAP Economic book value per
common share for the quarterly periods below:
(In Millions,
Except Per Share Amounts)
|
|
September 30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December 31,
2019
|
|
September 30,
2019
|
GAAP Total
Stockholders' Equity
|
|
$
|
2,565.7
|
|
|
$
|
2,521.1
|
|
|
$
|
2,440.7
|
|
|
$
|
3,384.0
|
|
|
$
|
3,403.4
|
|
Preferred Stock,
liquidation preference
|
|
(475.0)
|
|
|
(475.0)
|
|
|
(475.0)
|
|
|
(200.0)
|
|
|
(200.0)
|
|
GAAP Stockholders'
Equity for book value per common share
|
|
2,090.7
|
|
|
2,046.1
|
|
|
1,965.7
|
|
|
3,184.0
|
|
|
3,203.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment
to Residential whole loans, at carrying
value
|
|
141.1
|
|
|
(25.3)
|
|
|
(113.5)
|
|
|
182.4
|
|
|
145.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
including fair value adjustment to
Residential whole loans, at carrying value (Economic
book value)
|
|
$
|
2,231.8
|
|
|
$
|
2,020.8
|
|
|
$
|
1,852.2
|
|
|
$
|
3,366.4
|
|
|
$
|
3,349.2
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP book value per
common share
|
|
$
|
4.61
|
|
|
$
|
4.51
|
|
|
$
|
4.34
|
|
|
$
|
7.04
|
|
|
$
|
7.09
|
|
Economic book value per
common share
|
|
$
|
4.92
|
|
|
$
|
4.46
|
|
|
$
|
4.09
|
|
|
$
|
7.44
|
|
|
$
|
7.41
|
|
Number of shares of
common stock outstanding
|
|
453.3
|
|
|
453.2
|
|
|
453.1
|
|
|
452.4
|
|
|
451.7
|
|
INVESTOR
CONTACT:
|
InvestorRelations@mfafinancial.com
|
|
212-207-6488
|
|
www.mfafinancial.com
|
|
|
MEDIA
CONTACT:
|
Abernathy
MacGregor
|
|
Tom
Johnson
|
|
212-371-5999
|
Symbol: XNYS:MFA
Category: Earnings
View original
content:http://www.prnewswire.com/news-releases/mfa-financial-inc-announces-third-quarter-2020-financial-results-301166786.html
SOURCE MFA Financial, Inc.