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MFA Financial (NYSE:MFA) stock climbed 2.9% in Thursday morning trading after its Q2 earnings beat Wall Street expectations and its economic return improved, helped by a continuing increase in net interest income and net interest margin.
Q2 distributable EPS of $0.44, topping the $0.38 consensus, rose from $0.35 in Q1 and $0.40 in the year-ago quarter.
Economic book value of $14.34 per common share increased from $14.32 at March 31 and fell from $15.12 at June 30, 2023.
Economic return of 2.6% vs. 0.7% in Q1.
Q2 net interest income of $53.5M improved from $47.8M in Q1 and $44.5M in last year’s Q2.
Net interest spread averaged 2.16% widened from 2.06% in Q1, while net interest margin of 3.01% rose from 2.88% in the prior quarter.
“We continued to execute our strategy of acquiring residential mortgage assets at attractive levels,” said President and CEO Craig Knutson. “During the quarter, we purchased or originated $688M residential mortgage loans with an average coupon of 9.6%. We also added $176M of agency MBS.”
Asset dispositions during the quarter included $12.4B unpaid principal balance of single-family rental loans and $26.9M of mortgage servicing rights-related securities. The company also continued to reduce its REO portfolio, selling 63 properties in Q2 for proceeds of $25.6M.
60+ day delinquencies for MFA’s (MFA) residential loan portfolio decreased to 6.5% from 6.9% in Q1.
Total assets at June 30, 2024, rose to $11.1B from $10.9B at March 31 and $10.8B at Dec. 31, 2023.
Earlier, MFA Financial Non-GAAP EPS of $0.44 beats by $0.06, net interest income of $53.49M beats by $0.33M
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