NYSE$MFA

MFA Financial Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced fourth quarter 2022 financial results, demonstrating resilience amidst volatile market conditions and strategic focus on maintaining liquidity and fortifying the balance sheet.

MFA Financial, Inc. reported its Q4 2022 financial results, highlighting the company's ability to protect book value and preserve capital despite a volatile period for fixed income and mortgages. The company focused on maintaining substantial liquidity, increasing non-mark-to-market financing, and decreasing sensitivity to interest rate increases. Lima One subsidiary's record originations and the company's strategic portfolio adjustments contributed to the overall performance.

  • Book value remained relatively flat during the quarter, outperforming most peers in terms of book value performance and economic returns for the year.
  • Cost of funds increased slightly to 3.7%, despite significant Fed rate hikes, due to effective fixing of asset-based financing costs.
  • Unrestricted cash ended the year at $334 million, representing approximately 17% of equity, with $1.9 billion of unused financing capacity.
  • Lima One originated a record $2.3 billion in loans for 2022, contributing approximately 65% of asset acquisitions, with a current origination pipeline having a weighted average coupon of over 10%.

Headline financials

Total Revenue

$55.7M

Previous: $70.1M-20.7%
EPS (adj)

$0.48

Previous: $0.32+50.0%
Capital Expenditures

-$1.23M

Previous: -$38.7M+96.8%
Free Cash Flow

$5.74M

Previous: $49.9M-88.5%
Net Income

$9.2M

Previous: $0.00
Operating Income

$15.4M

No prior period
Cash & Equivalents

$334M

Previous: $305M+9.6%
Total Assets

$7.5B

Previous: $9.14B-17.9%

Revenue & EPS history

MFA Financial · Revenue · Quarterly

$55.7M

Q4 2022-20.7%vs Q4 2021
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Revenue by segment

MFA Financial · $125M total across 1 segment · Q4 2022

  • Residential whole loans
    $125M

Forward guidance

Cautionary Note Regarding Forward-Looking Statements When used in this press release or other written or oral communications, statements that 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-0.2%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.5%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+7.6%

Q2 2024

Best reaction

-10.1%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.8%-2.5%-8.8%
Q4 2025+2.4%-0.2%-4.4%
Q3 2025+1.3%-0.2%+6.2%
Q1 2025-5.3%-4.4%-4.3%
Q4 2024+0.2%+0.3%+5.5%
Q3 2024-6.2%-6.1%-10.8%
Q2 2024+7.6%+7.5%+13.2%
Q1 2024-2.7%-1.0%-1.7%
Q4 2023+2.8%+0.1%+6.4%
Q3 2023-0.3%-0.6%+11.9%
Q2 2023-4.0%-3.0%-2.7%
Q1 2023+1.1%+1.1%+9.3%
Q4 2022+1.7%+0.6%-14.3%
Q3 2022+4.7%+5.0%+14.6%
Q2 2022-4.9%-5.1%-15.8%
Q1 2022-1.2%-8.8%-7.2%
Q4 2021-4.4%-4.9%-4.7%
Q3 2021+2.0%+1.8%-0.7%
Q2 2021+2.4%+2.6%+5.1%
Q1 2021-1.6%-2.9%+0.5%
Q4 2020+0.0%-3.8%-1.9%
Q3 2020+5.0%+7.8%+33.7%
Q2 2020+2.5%+8.4%-1.8%
Q1 2020-10.1%-11.5%-9.4%
Q4 2019+0.0%-4.1%-54.4%
Q3 2019+1.9%+2.3%+1.5%
Q2 2019+4.8%+3.8%+2.3%
Q1 2019-2.1%-0.7%-3.9%
Q4 2018+0.3%+0.1%-1.2%
Q3 2018+3.8%+4.2%+4.7%
Q2 2018-4.6%-7.0%-4.7%
Q1 2018-0.9%-0.1%+1.8%
Q4 2017+4.2%+2.2%+7.3%
Q3 2017-4.1%-6.8%-3.5%
Q2 2017+1.8%+2.1%+2.7%
Q1 2017-4.0%-3.5%+1.0%
Q4 2016-0.7%-0.2%+0.6%
Q3 2016+2.6%+3.5%+6.4%
Q2 2016+3.2%+3.7%+4.0%
Q1 2016+2.5%
Q4 2015-0.8%
Q3 2015-1.4%
Q2 2015-0.7%
Q1 2015-1.7%
Q4 2014+1.7%
Q3 2014-2.0%
Q2 2014-0.5%
Q1 2014+0.1%
Q4 2013+1.9%
Q3 2013-0.9%
Q2 2013-0.9%
Q1 2013+0.4%
Q4 2012+1.2%
Q3 2012-3.6%
Q2 2012-3.9%
Q1 2012+2.9%
Q4 2011-0.9%
Q3 2011+2.5%
Q2 2011+0.3%
Q1 2010+1.6%
Q1 2011+0.2%
Q4 2008-1.4%
Q4 2009-1.4%
Q4 2010-1.4%
Q3 2010+1.6%
Q3 2009+1.6%
Q2 2009-1.1%
Q2 2010-1.1%

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