NEW YORK, Feb. 21, 2019 /PRNewswire/ -- MFA Financial,
Inc. (NYSE: MFA) today announced its financial results for the
fourth quarter ended December 31, 2018.
Fourth Quarter 2018 and other highlights:
- MFA generated fourth quarter GAAP net income of $57.1 million, or $0.13 per common share. As of December 31, 2018, book value per common share
was $7.15.
- Net Income was $0.06 per common
share lower than the third quarter of 2018, primarily due to
unrealized losses on CRT securities and 30-Year Agency MBS and
related swap hedges, as market volatility and risk-off sentiment
widened credit spreads and mortgage basis. Use of fair value
accounting requires quarterly valuation changes on these
investments to be included in earnings.
- Continued success in growing the investment portfolio, for the
fifth consecutive quarter. MFA added approximately $1.6 billion of residential mortgage assets in
the fourth quarter, including $1.0
billion of residential whole loans, increasing the
investment portfolio by $565
million.
- Recent growth in MFA's residential whole loan portfolio and net
interest income has been largely through acquisition of purchased
performing loans, including Non-QM loans, rehabilitation or "fix
and flip" loans and single family rental loans.
- On January 31, 2019, MFA paid its
fourth quarter 2018 dividend of $0.20
per share of common stock to shareholders of record as of
December 28, 2018.
Craig Knutson, MFA's CEO and
President, said, "The fourth quarter of 2018, particularly November
and December, was a very volatile period for financial assets, as
concerns about global growth slowdown increased volatility and led
to risk-off investment flows, widening credit spreads. 2019
has thus far been a much more constructive trading environment, and
since year-end we have seen a partial recovery in the prices of our
assets, particularly those accounted for at fair value. MFA's
investment team was very active in the fourth quarter, acquiring
nearly $1.6 billion of new assets and
growing our investment portfolio by $565
million. Our residential whole loan and REO portfolio
increased by $788 million, largely
due to acquisitions of purchased performing loans. RPL/NPL
MBS increased by $215 million, and
MSR-related investments increased by $47
million. As was the case for the third quarter of 2018, the
majority of the growth in our residential whole loan portfolio has
been through purchases of Non-QM loans, fix and flip loans and
single family rental loans. We continue to gain 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
after substantial growth of over $2
billion in our investment portfolio in 2018. With a
marked change in expectations around Fed monetary policy for 2019
and beyond, we believe that the investment horizon looks very
favorable for levered entities. We expect that we will
modestly increase leverage to support further asset growth in 2019,
both through repo borrowing and securitization."
Mr. Knutson added, "Through our asset selection and hedging
strategy, our estimated net effective duration, a gauge of our
portfolio's sensitivity to interest rates, remained relatively low
and measured 0.96 at quarter-end. MFA's book value per common
share decreased to $7.15 from
$7.46 as of September 30, 2018, due primarily to a net
reduction in unrealized gains on Legacy Non-Agency MBS and dividend
distributions exceeding our GAAP net income. Leverage, which
reflects the ratio of our financing obligations to equity, was
2.6:1 at quarter-end."
At December 31, 2018, our investments in residential whole
loans totaled $4.7 billion. Of
this amount, $3.0 billion is recorded
at carrying value and generated a yield of 5.77% during the
quarter, and $1.7 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 $31.7 million,
primarily reflecting coupon interest payments and other cash
received during the quarter together with changes in the fair value
of the underlying loans. In addition, as of the end of the
quarter we held approximately $249
million of REO properties. 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.
MFA's Legacy Non-Agency MBS had a face amount of $2.2 billion with an amortized cost of
$1.5 billion and a net purchase
discount of $670.5 million at
December 31, 2018. This discount consists of a
$516.1 million credit reserve and
other-than-temporary impairments and a $154.3 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 generated a yield of 10.65% for the quarter. The
portfolio continues to outperform our credit assumptions and has
underlying mortgage loans that are on average approximately
thirteen years seasoned and 11.1% are currently 60 or more days
delinquent.
As of December 31, 2018, the Agency MBS portfolio totaled
$2.7 billion, had an amortized cost
basis of 103.9% of par and generated a yield of 2.72% for the
fourth quarter. At the end of the fourth quarter, MFA held
approximately $1.4 billion of RPL/NPL
MBS. These securities had an amortized cost basis of 99.95%
of par and generated a yield of 4.82% for the quarter. Our
investments in CRT securities totaled $492.8
million at December 31, 2018, and generated a yield of
5.88% for the fourth quarter. During the quarter we
opportunistically sold residential mortgage securities for
$197.1 million, realizing net gains
of $28.6 million ($7.8 million of which had previously been
recorded as unrealized gains on CRT securities for which we had
elected fair value accounting).
For the three months ended December 31,
2018, MFA's costs for compensation and benefits and other
general and administrative expenses were $11.9 million, or an annualized 1.39% of
stockholders' equity as of December 31, 2018.
The following table presents the weighted average prepayment
speed on MFA's MBS portfolio.
Table
1
|
|
|
|
Fourth Quarter
2018 Average CPR
|
|
Third Quarter
2018 Average CPR
|
|
Agency MBS
|
|
12.5%
|
|
16.8%
|
|
Legacy Non-Agency
MBS
|
|
14.7%
|
|
16.8%
|
|
RPL/NPL MBS
(1)
|
|
12.9%
|
|
19.6%
|
|
|
(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 from 300 -
400 basis points at 36 - 48 months from issuance or
sooner.
|
As of December 31, 2018, under its swap agreements, MFA had
a weighted average fixed-pay rate of interest of 2.42% and a
floating receive rate of 2.56% on notional balances totaling
$3.2 billion, with an average
maturity of 32 months.
The following table presents MFA's asset allocation as of
December 31, 2018, and the fourth quarter 2018 yield on
average interest-earning assets, average cost of funds and net
interest rate spread for the various asset types.
Table
2
|
|
|
|
ASSET
ALLOCATION
|
|
|
|
At December 31,
2018
|
Agency
MBS
|
Legacy
Non-
Agency
MBS
|
RPL/NPL
MBS
|
Credit
Risk
Transfer
Securities
|
Residential
Whole
Loans, at
Carrying
Value
(1)
|
Residential
Whole
Loans,
at
Fair
Value
|
MSR -
Related
Assets
|
Other,
net
(2)
|
Total
|
|
($ in Millions)
|
|
|
|
|
|
|
|
|
|
|
Fair Value/Carrying
Value
|
$
|
2,698
|
|
$
|
1,941
|
|
$
|
1,377
|
|
$
|
493
|
|
$
|
3,017
|
|
$
|
1,666
|
|
$
|
612
|
|
$
|
484
|
|
$
|
12,288
|
|
Less Payable for
Unsettled
Purchases
|
—
|
|
—
|
|
—
|
|
—
|
|
(16)
|
|
(195)
|
|
—
|
|
—
|
|
(211)
|
|
Less Repurchase
Agreements
|
(2,384)
|
|
(1,448)
|
|
(1,085)
|
|
(392)
|
|
(1,475)
|
|
(546)
|
|
(474)
|
|
(76)
|
|
(7,880)
|
|
Less Securitized
Debt
|
—
|
|
—
|
|
—
|
|
—
|
|
(163)
|
|
(521)
|
|
—
|
|
—
|
|
(684)
|
|
Less Senior
Notes
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(97)
|
|
(97)
|
|
Net Equity
Allocated
|
$
|
314
|
|
$
|
493
|
|
$
|
292
|
|
$
|
101
|
|
$
|
1,363
|
|
$
|
404
|
|
$
|
138
|
|
$
|
311
|
|
$
|
3,416
|
|
Debt/Net Equity Ratio
(3)
|
7.6x
|
|
2.9x
|
|
3.7x
|
|
3.9x
|
|
1.2x
|
|
3.1x
|
|
3.4x
|
|
|
2.6x
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended December 31, 2018
|
|
|
|
|
|
|
|
|
Yield on Average
Interest
Earning Assets (4)
|
2.72%
|
|
10.65%
|
|
4.82%
|
|
5.88%
|
|
5.77%
|
|
N/A
|
|
5.40%
|
|
|
5.45%
|
|
Less Average Cost
of
Funds
(5)
|
(2.36)
|
|
(3.30)
|
|
(3.27)
|
|
(3.19)
|
|
(4.11)
|
|
(4.33)
|
|
(3.41)
|
|
|
(3.28)
|
|
Net Interest Rate
Spread
|
0.36%
|
|
7.35%
|
|
1.55%
|
|
2.69%
|
|
1.66%
|
|
N/A
|
|
1.99%
|
|
|
2.17%
|
|
|
|
(1)
|
Includes $798.0
million of purchased credit impaired loans, $1.4 billion of Non-QM
loans, $494.6 million of Rehabilitation loans, $145.3 million of
Single-family rental loans and $224.1 million of seasoned
performing loans. At December 31, 2018, the total fair value
of these loans is estimated to be approximately $3.1
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 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 December 31, 2018, the amortized
cost of our interest earning assets were as follows: Agency MBS -
$2.7 billion; Legacy Non-Agency MBS - $1.5 billion; RPL/NPL MBS -
$1.4 billion; Credit Risk Transfer securities - $486.2 million; and
Residential Whole Loans at carrying value - $3.0 billion. In
addition, the yield for residential whole loans at carrying value
was 5.67%, net of 10 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 measured at
fair value though earnings 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 is reduced by 5 basis points and Legacy
Non-Agency MBS cost of funds is reduced by 4 basis points
associated with swaps to hedge interest rate sensitivity on these
assets. Residential Whole Loans at Carrying Value cost of
funds includes 4 basis points associated with swaps to hedge
interest rate sensitivity on these assets.
|
|
|
|
|
|
|
|
|
At December 31, 2018, MFA's $4.6
billion of Agency and Legacy Non-Agency MBS were backed by
hybrid, adjustable and fixed-rate mortgages. Additional
information about these MBS, including average months to reset and
three-month average CPR, is presented below:
Table
3
|
|
|
|
Agency
MBS
|
|
Legacy Non-Agency
MBS (1)
|
|
Total
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time to
Reset
|
|
Fair Value
(2)
|
Average
Months
to Reset
(3)
|
3 Month
Average CPR
(4)
|
|
Fair Value
|
Average
Months
to Reset
(3)
|
3 Month
Average CPR
(4)
|
|
Fair Value
(2)
|
Average
Months
to Reset
(3)
|
3 Month
Average CPR
(4)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
< 2 years
(5)
|
|
$
|
1,042
|
|
5
|
21.2%
|
|
$
|
1,230
|
|
5
|
15.5%
|
|
$
|
2,272
|
|
5
|
17.9%
|
2-5 years
|
|
128
|
|
40
|
11.1
|
|
—
|
|
—
|
—
|
|
128
|
|
40
|
11.1
|
> 5
years
|
|
9
|
|
78
|
0.1
|
|
—
|
|
—
|
—
|
|
9
|
|
78
|
0.1
|
ARM-MBS
Total
|
|
$
|
1,179
|
|
10
|
19.9%
|
|
$
|
1,230
|
|
5
|
15.5%
|
|
$
|
2,409
|
|
7
|
17.5%
|
15-year fixed
(6)
|
|
$
|
782
|
|
|
8.5%
|
|
$
|
2
|
|
|
24.0%
|
|
$
|
784
|
|
|
8.5%
|
30-year fixed
(6)
|
|
736
|
|
|
4.7
|
|
659
|
|
|
13.1
|
|
1,395
|
|
|
9.1
|
40-year fixed
(6)
|
|
—
|
|
|
—
|
|
47
|
|
|
15.6
|
|
47
|
|
|
15.6
|
Fixed-Rate
Total
|
|
$
|
1,518
|
|
|
6.8%
|
|
$
|
708
|
|
|
13.3%
|
|
$
|
2,226
|
|
|
9.0%
|
MBS Total
|
|
$
|
2,697
|
|
|
12.5%
|
|
$
|
1,938
|
|
|
14.7%
|
|
$
|
4,635
|
|
|
13.5%
|
|
|
(1)
|
Excludes $1.4
billion of RPL/NPL MBS.
|
(2)
|
Does not include
principal payments receivable of $1.0 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,
February 21, 2019, at 10:00 a.m.
(Eastern Time) to discuss its fourth 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
residential mortgage assets, an increase of which could result in a
reduction of the yield on certain investments in our portfolio and
could require us to reinvest the proceeds received by us 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 our portfolio making their
valuation more sensitive to changes in interest rates and could
result in lower forecasted cash flows or, in certain circumstances,
other-than-temporary impairment on certain Legacy Non-Agency MBS
purchased at a discount; 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
modifications, foreclosures and liquidations; 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 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 our
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, prepayment risk,
credit risk and financing cost associated with such investments;
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)
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
(Unaudited)
|
|
|
Assets:
|
|
|
|
|
Residential mortgage
securities:
|
|
|
|
|
Agency MBS, at fair
value ($2,575,331 and $2,727,510 pledged as collateral,
respectively)
|
|
$
|
2,698,213
|
|
|
$
|
2,824,681
|
|
Non-Agency MBS, at
fair value ($3,248,900 and $2,379,523 pledged as collateral,
respectively)
|
|
3,318,299
|
|
|
3,533,966
|
|
Credit Risk Transfer
("CRT") securities, at fair value ($480,315 and $595,900 pledged as
collateral, respectively)
|
|
492,821
|
|
|
664,403
|
|
Residential whole
loans, at carrying value ($1,645,372 and $448,689 pledged as
collateral, respectively) (1)
|
|
3,016,715
|
|
|
908,516
|
|
Residential whole
loans, at fair value ($738,638 and $996,226 pledged as collateral,
respectively) (1)
|
|
1,665,978
|
|
|
1,325,115
|
|
Mortgage servicing
rights ("MSR") related assets ($611,807 and $482,158 pledged as
collateral, respectively)
|
|
611,807
|
|
|
492,080
|
|
Cash and cash
equivalents
|
|
51,965
|
|
|
449,757
|
|
Restricted
cash
|
|
36,744
|
|
|
13,986
|
|
Other
assets
|
|
527,785
|
|
|
742,230
|
|
Total
Assets
|
|
$
|
12,420,327
|
|
|
$
|
10,954,734
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Repurchase
agreements
|
|
$
|
7,879,087
|
|
|
$
|
6,614,701
|
|
Other
liabilities
|
|
1,125,139
|
|
|
1,078,397
|
|
Total
Liabilities
|
|
$
|
9,004,226
|
|
|
$
|
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; 449,787 and 397,831 shares
issued
and outstanding, respectively
|
|
4,498
|
|
|
3,978
|
|
Additional paid-in
capital, in excess of par
|
|
3,623,275
|
|
|
3,227,304
|
|
Accumulated
deficit
|
|
(632,040)
|
|
|
(578,950)
|
|
Accumulated other
comprehensive income
|
|
420,288
|
|
|
609,224
|
|
Total Stockholders'
Equity
|
|
$
|
3,416,101
|
|
|
$
|
3,261,636
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
12,420,327
|
|
|
$
|
10,954,734
|
|
|
|
(1)
|
Includes
approximately $209.4 million and $183.2 million of Residential
whole loans, at carrying value and $694.7 million and $289.3
million of Residential whole
loans, at fair value transferred to consolidated VIEs at
December 31, 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
December 31,
|
|
For the Year
Ended
December 31,
|
(In Thousands, Except Per Share Amounts)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Interest
Income:
|
|
|
|
|
|
|
|
|
Agency MBS
|
|
$
|
19,508
|
|
|
$
|
15,341
|
|
|
$
|
62,303
|
|
|
$
|
65,355
|
|
Non-Agency
MBS
|
|
56,984
|
|
|
58,384
|
|
|
226,796
|
|
|
271,112
|
|
CRT
securities
|
|
7,437
|
|
|
8,816
|
|
|
33,376
|
|
|
31,715
|
|
Residential whole
loans held at carrying value
|
|
39,133
|
|
|
9,968
|
|
|
100,921
|
|
|
36,187
|
|
MSR-related
assets
|
|
8,171
|
|
|
6,997
|
|
|
28,420
|
|
|
24,830
|
|
Cash and cash
equivalent investments
|
|
588
|
|
|
1,395
|
|
|
2,936
|
|
|
4,249
|
|
Other
interest-earning assets
|
|
923
|
|
|
—
|
|
|
923
|
|
|
—
|
|
Interest
Income
|
|
$
|
132,744
|
|
|
$
|
100,901
|
|
|
$
|
455,675
|
|
|
$
|
433,448
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
Repurchase
agreements
|
|
$
|
62,506
|
|
|
$
|
44,903
|
|
|
$
|
205,338
|
|
|
$
|
186,347
|
|
Other interest
expense
|
|
8,438
|
|
|
3,592
|
|
|
26,848
|
|
|
10,794
|
|
Interest
Expense
|
|
$
|
70,944
|
|
|
$
|
48,495
|
|
|
$
|
232,186
|
|
|
$
|
197,141
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
|
$
|
61,800
|
|
|
$
|
52,406
|
|
|
$
|
223,489
|
|
|
$
|
236,307
|
|
|
|
|
|
|
|
|
|
|
Other Income,
net:
|
|
|
|
|
|
|
|
|
Net gain on
residential whole loans measured at fair value through
earnings
|
|
$
|
31,736
|
|
|
$
|
41,385
|
|
|
$
|
137,619
|
|
|
$
|
90,045
|
|
Net realized gain on
sales of residential mortgage securities
|
|
28,646
|
|
|
9,047
|
|
|
61,307
|
|
|
39,577
|
|
Net unrealized
(loss)/gain on residential mortgage securities measured
at fair value through
earnings
|
|
(25,039)
|
|
|
13,536
|
|
|
(36,815)
|
|
|
27,709
|
|
Net loss on Swaps not
designated as hedges for accounting purposes
|
|
(13,965)
|
|
|
—
|
|
|
(9,610)
|
|
|
—
|
|
Other, net
|
|
(428)
|
|
|
1,017
|
|
|
5,474
|
|
|
656
|
|
Other Income,
net
|
|
$
|
20,950
|
|
|
$
|
64,985
|
|
|
$
|
157,975
|
|
|
$
|
157,987
|
|
|
|
|
|
|
|
|
|
|
Operating and
Other Expense:
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
$
|
7,769
|
|
|
$
|
5,415
|
|
|
$
|
28,423
|
|
|
$
|
31,673
|
|
Other general and
administrative expense
|
|
4,084
|
|
|
3,900
|
|
|
17,653
|
|
|
17,960
|
|
Loan servicing and
other related operating expenses
|
|
10,018
|
|
|
7,483
|
|
|
33,587
|
|
|
22,268
|
|
Operating and
Other Expense
|
|
$
|
21,871
|
|
|
$
|
16,798
|
|
|
$
|
79,663
|
|
|
$
|
71,901
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
60,879
|
|
|
$
|
100,593
|
|
|
$
|
301,801
|
|
|
$
|
322,393
|
|
Less Preferred Stock
Dividends
|
|
3,750
|
|
|
3,750
|
|
|
15,000
|
|
|
15,000
|
|
Net Income
Available to Common Stock and Participating
Securities
|
|
$
|
57,129
|
|
|
$
|
96,843
|
|
|
$
|
286,801
|
|
|
$
|
307,393
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Common Share - Basic and Diluted
|
|
$
|
0.13
|
|
|
$
|
0.24
|
|
|
$
|
0.68
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared
per Share of Common Stock
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
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-fourth-quarter-2018-financial-results-300799281.html
SOURCE MFA Financial, Inc.