NEW YORK MORTGAG(US:NYMTZ)2024-11-01 20:21Investment Portfolio - As of September 30, 2024, the total investment portfolio amounted to $6,862.8 million, reflecting an increase of $1,361.9 million from the previous quarter[246]. - The investment portfolio increased by approximately $3.1 billion from December 31, 2022, to September 30, 2024, with adjusted interest income rising over 70% compared to the same period last year[251]. - The total investment securities available for sale reached $3,385.3 million, with a net increase of $736.0 million during the quarter[246]. - The company continues to expand its investment securities and residential loan portfolios despite prepayments and sales of joint venture equity ownership interests[246]. - The company is focused on acquiring, investing in, financing, and managing primarily mortgage-related single-family and multi-family residential assets[249]. Residential Loans - The residential loans portfolio increased to $2,768.6 million, with acquisitions of $624.2 million and repayments of $267.8 million during the quarter[246]. - As of September 30, 2024, the total residential loans amounted to $3,777,144 thousand, an increase of 22.5% from $3,084,303 thousand on December 31, 2023[334]. - The company acquired $30.2 million and $137.6 million of residential loans during the three and nine months ended September 30, 2024, respectively, compared to $15.3 million and $55.2 million during the same periods in 2023[339]. - The total number of acquired residential loans increased to 10,973 as of September 30, 2024, up from 10,321 as of December 31, 2023, reflecting a growth of 6.3%[336]. - The weighted average FICO score at purchase improved to 769 as of September 30, 2024, compared to 701 on December 31, 2023[342]. Financial Performance - For the three months ended September 30, 2024, the net income attributable to the Company's common stockholders was $32,410,000, compared to a net loss of $61,957,000 for the nine months ended September 30, 2024[271]. - The company reported a net income attributable to common stockholders of $32,410 for the three months ended September 30, 2024, compared to a net loss of $94,819 in the same period of 2023, a change of $127,229[281]. - The economic return on book value for the third quarter of 2024 was 3.51%, while the economic return on adjusted book value was 0.45%[271]. - The company reported a net cash increase of $1.4 million for the nine months ended September 30, 2024[396]. - The company’s accumulated deficit increased to $1,371.1 million as of September 30, 2024, compared to $1,253.8 million at the end of 2023[390]. Interest Rates and Financing - The Federal Reserve cut the target range for the federal funds rate by 50 basis points in September 2024, marking the first cut since March 2020[261]. - The yield on average interest-earning assets for the third quarter of 2024 was 6.69%, an increase from 6.52% for the nine months ended September 30, 2024[271]. - The average financing cost for Q3 2024 was 5.37%, compared to 5.13% in Q3 2023, showing a slight increase in financing expenses[310][311]. - Interest rate changes could significantly impact the company's annualized adjusted net interest income, with a +200 basis points change resulting in a decrease of $72,912 thousand and a -200 basis points change resulting in an increase of $72,808 thousand[428]. - The company utilizes interest rate caps, swaps, and other financial instruments to manage interest rate risk and optimize earnings potential[426]. Asset Management - The company expects to continue opportunistically disposing of assets to pursue investments in the residential housing sector[255]. - The company remains focused on acquiring assets with less price sensitivity to credit deterioration, such as Agency RMBS[251]. - The company actively manages its portfolio and continuously adjusts the size and composition of its asset and derivative hedge portfolios to mitigate interest rate risk[428]. - The company has commitments to purchase redeemable non-controlling interests from third-party investors in a joint venture, subject to certain conditions[420]. - The company reported a net investment in Consolidated SLST and other residential loan securitizations of $158.8 million and $296.2 million, respectively, as of September 30, 2024[347]. Equity and Dividends - The company intends to make distributions to stockholders to maintain REIT status and minimize corporate income tax[417]. - Dividends per common share for the third quarter of 2024 were $0.20, with a total of $0.60 for the nine months ended September 30, 2024[271]. - The GAAP book value per common share increased to $9.83 as of September 30, 2024, from $9.69 at the beginning of the period[304]. - The adjusted book value per common share as of September 30, 2024, was $10.87, down from $12.66 as of December 31, 2023, reflecting a decrease of 14.1%[328]. - The company repurchased 587,347 shares of its common stock for a total cost of approximately $3.5 million during the nine months ended September 30, 2024[414]. Market Conditions - The U.S. GDP grew by 2.8% in the third quarter of 2024, marking ten consecutive quarters of growth[259]. - Home prices increased by 5.9% for the 20-City Composite over July 2024, while existing home sales in August 2024 were down 4.2% year-over-year[263]. - Multi-family home starts averaged a seasonally adjusted annual rate of 341,667 for the three months ended September 30, 2024, down from 459,417 for the year ended December 31, 2023[264]. - The average occupancy rate across 15 multi-family properties was 92.6%, with an average rent per unit of $1,428 and a loan-to-value (LTV) ratio of 80.7%[376]. - The company faces liquidity risk primarily from financing long-maturity assets with shorter-term financings, necessitating daily management and forecasting of liquidity needs[431].