NEW YORK MORTGAG(US:NYMTZ)2025-08-01 20:53Investment Portfolio - As of June 30, 2025, the total investment portfolio amounted to $8,603,269,000, reflecting an increase of $338,604,000 from the previous quarter[271]. - The company acquired $914,732,000 in new investments during the quarter, while repayments totaled $558,534,000[271]. - The total investment securities available for sale and TBAs reached $5,119,765,000, an increase from $4,646,812,000, marking a growth of approximately 10.1%[271]. - As of June 30, 2025, the total investment portfolio carrying value was $8,609,825, an increase from $7,392,338 as of December 31, 2024, representing a growth of approximately 16.5%[308][309]. - The company acquired approximately $503.7 million of Agency investments with an average coupon of 5.29% during the second quarter[305]. - The company reported a fair value change of $12,977,000 in its total investment portfolio during the quarter[271]. Residential Loans - Residential loans decreased to $2,826,644,000, down from $2,954,018,000, representing a reduction of approximately 4.3%[271]. - The company’s residential loans totaled $4,026,027 thousand as of June 30, 2025, compared to $3,841,738 thousand as of December 31, 2024, indicating an increase of 4.8%[365]. - The total unpaid principal balance of acquired residential loans was $2,918,904,000, with a fair value of $2,826,644,000[367]. - The company purchased approximately $78.0 million of residential loans from Constructive during the three months ended June 30, 2025, and $228.7 million during the six months ended June 30, 2025[370]. - The company completed a securitization of residential loans, resulting in approximately $345.9 million in net proceeds after deducting expenses[305]. Financial Performance - The company generated net income attributable to common stockholders of $0.30 per share and earnings available for distribution of $0.42 per share for the first half of 2025, indicating continued momentum in portfolio growth and income generation[277]. - In Q2 2025, the company reported a net loss attributable to common stockholders of $3.486 million, while for the first half of 2025, net income was $26.799 million[301]. - Interest income for the three months ended June 30, 2025, was $140,901, up 55.3% from $90,775 in the same period of 2024[313]. - Net interest income for the six months ended June 30, 2025, was $69,545, an increase of 88.5% compared to $36,907 for the same period in 2024[313]. - The Company reported a net income attributable to the Company of $8,546 for the three months ended June 30, 2025, compared to a net loss of $(15,589) in the same period of 2024, indicating a turnaround of $24,135[313]. Leverage and Debt - As of June 30, 2025, the company's Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 3.8x and 3.6x, respectively, from 3.0x and 2.9x as of December 31, 2024, primarily due to financing of highly liquid Agency RMBS[281]. - The company completed the issuance of $82.5 million of 9.125% Senior Notes due 2030 in January 2025, and $90.0 million of 9.875% Senior Notes due 2030 in July 2025, with net proceeds predominantly used to acquire Agency RMBS and targeted assets[282]. - The company anticipates a gradual increase in leverage as it scales its investment portfolio while remaining committed to prudent liability management[281]. - The company had $4.6 billion outstanding under repurchase agreements as of June 30, 2025, with a weighted average interest rate of 4.49%[385][386]. Economic Environment - The U.S. economy grew at an annualized rate of 3.0% in Q2 2025, compared to a 0.5% decrease in Q1 2025, while inflation remains persistently above the Federal Reserve's target of 2%[287]. - The U.S. unemployment rate was 4.1% at the end of June 2025, down from 4.2% at the end of March 2025, with average hourly earnings rising 3.7% year-over-year[288]. - The probability of a recession in the next twelve months was reported at 33% in July 2025, down from 45% in April 2025, reflecting improved GDP forecasts despite ongoing trade uncertainty[290]. Strategic Repositioning - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[271]. - The company continues to execute its strategic repositioning, including the wind-down of multi-family joint venture equity investments, reducing exposure to $17.4 million as of June 30, 2025[279]. - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to expand interest income levels[346]. Stockholder Returns - The company intends to make distributions to stockholders to comply with REIT status requirements and minimize corporate income tax[456]. - The company repurchased 231,200 shares of its common stock for a total cost of approximately $1.5 million, representing an average repurchase price of $6.50 per common share during the three and six months ended June 30, 2025[453]. - The common stock repurchase program was upsized to $246.0 million in March 2023, with an expiration date of March 31, 2026[453]. Other Financial Metrics - The yield on average interest-earning assets remained stable at 6.48% for both the three and six months ended June 30, 2025[301]. - The average coupon rate for the loans as of June 30, 2025, was 6.98% for business purpose rental loans and 10.48% for business purpose bridge loans[367]. - The average financing cost decreased to 4.98% in Q2 2025 from 5.13% in Q2 2024, primarily due to improved financing terms[337][338].