Shares fell 3.8% as investors reacted negatively to margin pressure from mark-to-market losses driven by higher rates and wider spreads, coupled with net interest income reversals from loans moving to nonaccrual status and cautious outlook signals embedded in continued portfolio volatility.
- MFA reported a GAAP loss of about $1 million ($0.11 per share), hurt by $28.8 million in mark-to-market losses due to rising rates and spread widening.
- Net interest income rose to $59.2 million from $55.5 million sequentially but was partly offset by $3.5 million interest income reversals on nonaccrual loans.
- Economic book value per share declined approximately 3.8% quarter-over-quarter to $13.22.
- The company continues to execute cost reduction initiatives, expecting $4 million annual run-rate savings from the HQ relocation and nearly $20 million in total overhead savings versus 2024.
- Portfolio growth remained steady with $12.5 billion invested, including significant additions to agency MBS and non-QM loans despite market volatility and mortgage spread widening.
Community Discussion