NEW YORK MORTGAG(US:NYMTZ)2024-08-02 21:00Investment Portfolio - For the three months ended June 30, 2024, the total investment portfolio amounted to $5,911,537, with acquisitions of $934,241 and repayments of $323,456[249]. - The residential loans at fair value increased from $738,126 as of March 31, 2024, to $1,004,944 as of June 30, 2024[252]. - Agency RMBS investments rose to $2,613,842, reflecting an acquisition of $467,496 during the quarter[249]. - Non-Agency RMBS investments totaled $58,237, with acquisitions of $34,500[249]. - The company reported a total of $155,965 in Consolidated SLST investment securities as of June 30, 2024, up from $151,239[252]. - Preferred equity investments and mezzanine loans increased to $235,912, with a return of $6,064 during the quarter[249]. - The total investment portfolio increased to approximately $4.6 billion as of June 30, 2022, up from $3.6 billion as of December 31, 2021, reflecting a growth of about 28%[255]. - The total investment portfolio carrying value was $5,916,484,000 as of June 30, 2024[281]. - The total investment securities portfolio increased to $4.457 billion as of June 30, 2024, compared to $2.895 billion as of December 31, 2023[354]. Financial Performance - For the three months ended June 30, 2024, the net loss attributable to the company's common stockholders was $26,028,000, resulting in a loss per share of $0.29[275]. - The company reported interest income of $90,775,000 and interest expense of $71,731,000 for the same period, leading to a net interest income of $19,044,000[275]. - Adjusted interest income increased by more than 50% compared to the same period last year, driven by higher business purpose loan acquisition volumes[255]. - The Company’s Recourse Leverage Ratio increased to 2.1x as of June 30, 2024, up from 1.6x as of December 31, 2023, primarily due to financing of Agency RMBS[258]. - The company reported a net cash increase of $37.5 million during the six months ended June 30, 2024[396]. - The company reported a decrease in salaries, benefits, and directors' compensation by $1,489 thousand (15.2%) for the three months ended June 30, 2024, compared to the same period in 2023[303]. - The company recognized $17.5 million in net realized losses during the six months ended June 30, 2024, primarily from foreclosed properties and residential loan sales[291]. - The company recognized impairment losses of $40.3 million on real estate for the six months ended June 30, 2024, due to lower valuations and wider cap rates[298]. - The company reported a total unrealized loss of $55.9 million for the six months ended June 30, 2024, compared to a gain of $5.6 million in the same period of 2023[293]. Debt and Financing - As of June 30, 2024, 58% of the Company’s debt is subject to mark-to-market margin calls, with 48% collateralized by Agency RMBS[258]. - The company had $2.4 billion outstanding under repurchase agreements as of June 30, 2024, with a weighted average interest rate of 5.54%[356][357]. - The quarterly average balance of repurchase agreements increased to $2.20 billion by June 30, 2024, compared to $1.85 billion at the end of December 2023[358]. - The company had commitments to fund up to $190.6 million of additional advances on existing business purpose loans as of June 30, 2024[420]. - The company had $100.0 million aggregate principal amount of 5.75% Senior Notes outstanding, maturing on April 30, 2026[405]. - The company had $60.0 million aggregate principal amount of 9.125% Senior Notes outstanding, maturing on July 1, 2029[406]. Market Conditions - The U.S. GDP grew by 2.8% in the second quarter of 2024, marking eight consecutive quarters of growth[262]. - The unemployment rate was 4.1% at the end of June 2024, slightly up from 3.8% at the end of March 2024[263]. - Home prices increased by 7.2% for the 20-City Composite over April 2023, with the median existing-home sales price reaching $419,300 in May 2024, up 5.8% year-over-year[266]. - Starts on multi-family homes averaged a seasonally adjusted annual rate of 329,667 for the three months ended June 30, 2024, down from 459,417 for the year ended December 31, 2023[267]. Risk Management - The company employs a model-based risk analysis system to project performances of interest rate-sensitive assets and liabilities, with results potentially differing from actual outcomes due to various assumptions[428]. - Liquidity risk arises from financing long-maturity assets with shorter-term financings, necessitating daily management and forecasting of liquidity needs[432]. - The company emphasizes securing longer-term financing arrangements to mitigate exposure to fluctuations in collateral repricing and liquidity reductions[434]. - The company stress-tests its portfolio for prepayment speeds and interest rate risk to adjust hedge balances accordingly[438]. - The company faces margin call risk on repurchase agreements, which could adversely affect liquidity if asset values decrease[433]. Shareholder Returns - The company intends to make distributions to stockholders to comply with REIT requirements and minimize corporate income tax[418]. - The company repurchased 587,347 shares of common stock for approximately $3.5 million at an average repurchase price of $5.95 per share[277]. - The company’s basic loss per common share improved to $(0.29) for the three months ended June 30, 2024, compared to $(0.41) in the same period of 2023, reflecting a positive change of 29.3%[287].