Mfa Financial Stock Earnings Reports

Q1 2026 highlights: MFA delivered a quarterly total economic return of -1.2% and a GAAP loss of roughly $1.0 million ($0.11/share), driven by mark-to-market losses from higher rates and wider spreads late in March. GAAP book value was $12.70 and economic book value $13.22 (both down ~3.8% vs. 2025 year-end); post-quarter economic book value was roughly flat to quarter end. MFA grew its investment portfolio to $12.5 billion (adding ~ $700M agencies including TBAs, $471M non‑QM loans, and $219M Lima One business purpose loans). Non‑QM is the largest asset class (non‑QM book ~$5.5B) with solid credit (default rate ~4%). Agency exposure exceeds $3.5B. MFA executed two non‑QM securitizations in March (including a relever that unlocked ~$40M of cash and financing capacity). Lima One showed momentum: $219M originations in Q1, higher mortgage banking income ($7.7M), and pipeline at its highest level since 2024. Management introduced a supplemental distributable earnings (DE) metric that excludes realized credit losses on fair‑value residential whole loans to provide clearer view of earnings power; DE for Q1 was $31.1M ($0.30/share). Management expects DE to reconverge with the $0.36 quarterly dividend by year‑end, including redeployment of paydowns from troubled assets. Legacy multifamily transitional assets remain in runoff (capital tied up ~ $101M at quarter end); management expects realized credit losses on that legacy book to accelerate in Q2 (mid‑ to high‑teens percentage on resolutions) before normalizing in H2 2026 into H1 2027. Delinquencies rose to 7.8% in Q1 (driven by legacy multifamily) and were reported at 7.3% after quarter end. Cost initiatives are progressing: estimated run‑rate overhead savings near $20M/year vs. 2024, and HQ relocation is expected to yield ~ $4M/year run‑rate savings (with some near‑term noncash charges). Overall, management emphasizes portfolio diversification, active capital management (preferred issuance + common repurchases), asset‑management capability to resolve NPLs, and focus on redeploying capital into higher‑return assets as legacy runoff completes.