NEW YORK MTG(NYMTL) - 2025 Q2 - Quarterly Report

Investment 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, reflecting a net increase of $472,953,000[271] - As of June 30, 2025, the company acquired approximately $4.1 billion of assets during the year ending December 31, 2024, and an additional $2.8 billion in the first half of 2025, resulting in a 55% increase in interest income and a 58% increase in adjusted interest income for Q2 2025 compared to Q2 2024[277] - The company’s investment securities portfolio increased to $6.88 billion as of June 30, 2025, compared to $5.28 billion as of December 31, 2024[381] 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 portfolio growth and income generation[277] - For the three months ended June 30, 2025, the net loss attributable to the company's common stockholders was $3.486 million, resulting in a loss per share of $0.04[301] - For the six months ended June 30, 2025, the net income attributable to the company's common stockholders was $26.799 million, with earnings per share of $0.30[301] - Interest income for the three months ended June 30, 2025, was $140.901 million, while interest expense was $104.454 million, leading to a net interest income of $36.447 million[301] - The company reported a net income attributable to the company of $8,546 in Q2 2025, compared to a net loss of $15,589 in Q2 2024, and for the first half of 2025, it was $50,701, up from a loss of $73,489 in the same period of 2024[313] Strategic Repositioning - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[271] - The company aims to reallocate capital away from multi-family properties to targeted assets, indicating a strategic shift in investment focus[271] - The company continues to execute its strategic repositioning, reducing exposure to multi-family investments to $17.4 million as of June 30, 2025, with plans to wind down this portfolio over time[279] - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets that expand interest income levels, such as Agency RMBS and business purpose loans[346] Leverage and Capital Management - 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 Agency RMBS[281] - The company anticipates a gradual increase in leverage as it scales its investment portfolio while remaining committed to prudent liability management[281] - The company reported a Company Recourse Leverage Ratio of 3.8x as of June 30, 2025, compared to 3.0x at the end of 2024, indicating increased leverage[308][309] 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 uncertainties[290] Interest Income and Expense - Interest income for Q2 2025 was $140,901, a 55.3% increase from $90,775 in Q2 2024, and for the first half of 2025, it was $270,636, up 55% from $174,666 in the same period of 2024[313] - Net interest income for Q2 2025 was $36,447, a 91.5% increase from $19,044 in Q2 2024, and for the first half of 2025, it was $69,545, up 88.2% from $36,907 in the same period of 2024[313] - Adjusted interest income increased by approximately $48.4 million and $93.1 million for the three- and six-month periods, respectively, driven by increased investment in Agency RMBS and residential loans[341] - Adjusted interest expense rose by approximately $35.7 million and $70.3 million for the three- and six-month periods, primarily due to increased financing through repurchase agreements and securitizations[342] Stockholder Equity and Dividends - The company reported a weighted average loan-to-value (LTV) ratio of 83.2% for its multi-family properties not in the disposal group held for sale[406] - Dividends declared for the three months ended June 30, 2025, amounted to $18,629,000, translating to a per share dividend of $0.20[331] - The company’s stockholders' equity was $1,381,203 thousand, a decrease from $1,394,720 thousand as of December 31, 2024[426] Risk Management - The company actively manages risks related to interest rates, liquidity, prepayments, credit quality, and market value to generate risk-adjusted total returns[461] - Changes in interest rates significantly affect the company's net interest income and adjusted net interest income[463]