Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss applicable to common stockholders of $9.3 million, or $0.29 per diluted share, compared to a comprehensive loss of $2.6 million, or $0.08 per diluted share [6][15]. - The book value per common share decreased to $3.58 from $3.82 at the end of Q4 2024, reflecting a decline of approximately 6.3% [7][17]. - The NAV was down approximately $7.5 million, or 3.2%, relative to December 31, 2024 [7]. Business Line Data and Key Metrics Changes - The MSR portfolio had an unpaid principal balance (UPB) of $17 billion and a market value of approximately $227 million, representing about 44% of equity capital [11]. - The RMBS portfolio accounted for approximately 39% of equity capital, with a weighted average three-month CPR of 5.8%, slightly up from 5.7% in the previous quarter [12][13]. - Prepayment speeds for the MSR portfolio averaged approximately 4.1%, down modestly from the previous quarter, while RMBS prepayment speeds remained low [12]. Market Data and Key Metrics Changes - Interest rates ended the quarter at 4.25%, approximately 30 basis points lower quarter over quarter, but volatility increased due to tariff announcements [5][6]. - The company noted that mortgage performance was mixed, with higher coupon mortgages outperforming lower coupon mortgages [10]. Company Strategy and Development Direction - The company plans to deploy capital into Agency RMBS and select MSRs, focusing on strong risk-adjusted return profiles while maintaining liquidity and prudent leverage [9]. - Management emphasized the importance of closely managing operating expenses to improve the expense ratio and capital structure over time [8]. Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about ongoing macroeconomic uncertainty and the potential for elevated rates until clear macro policy is established [10][11]. - The company is cautious regarding GSE reform, indicating that current market assumptions about government guarantees may not be well-defined [27][29]. Other Important Information - The company declared a dividend of $0.15 per common share for Q1 2025, paid on April 30, 2025 [18]. - Operating expenses for the quarter were reported at $3.8 million, benefiting from the elimination of management fees [17]. Q&A Session Summary Question: What would it take for the company to allocate more to the RMBS portfolio? - Management indicated that all reinvestment income has been directed towards MBS, and significant changes would require selling a portion of the MSR portfolio [23]. Question: Is there any movement in GSE reform affecting market pricing? - Management stated it is too early to tell, noting that while there have been movements at the GSEs, specific plans regarding government guarantees remain undefined [27][29]. Question: Can you provide a book value update for Q2? - The company reported a NAV down about 3.7% in April, leading to an estimated 7% book value per share before any dividends [36]. Question: How much of the EAD in Q1 was due to the roll-off of internalization expenses? - Approximately $0.02 of EAD in Q1 was attributed to savings from internalization and G&A [52]. Question: What are the general thoughts on MSR pricing and supply post-Rocket Cooper deal? - Management noted that volumes have been lower than the previous year, and no substantial changes in pricing dynamics have been observed [51].

Financial Performance - The company reported a GAAP net loss of $0.29 per share[7] - Earnings Available for Distribution (EAD) was $0.17 per share[7] - The book value per common share decreased by 6.3% to $3.58, net of the quarterly dividend[8] - A dividend of $0.15 per share was declared and paid[8] - The company experienced a 2.4% total quarterly economic loss[8] Portfolio Metrics - The company's leverage ratio for the aggregate portfolio was 5.2x[8] - The net interest spread for RMBS was 3.6%[8] - The weighted average Constant Prepayment Rate (CPR) for RMBS was 5.8%[7] - The net CPR for Mortgage Servicing Rights (MSRs) was 4.1%[7] Asset Composition - As of March 31, 2025, 76% of the asset investment composition (excluding cash) was in 30 Year RMBS and 24% was in MSRs[15]

Core Viewpoint - Bimini Capital Management, Inc. reported strong first-quarter results for 2025, benefiting from favorable market conditions for Agency RMBS, although the outlook for the second quarter appears more uncertain due to potential economic impacts from new tariffs [2][4]. Financial Performance - Bimini's advisory service revenues increased by approximately 22% year-over-year and 6% quarter-over-quarter, totaling around $3.6 million [5]. - Orchid Island Capital reported a net income of $17.1 million for the first quarter of 2025, achieving a return on book value of 2.60% [5]. - Royal Palm Capital's interest revenue rose by 25% compared to the first quarter of 2024 and by 4% from the fourth quarter of 2024, with net interest income increasing approximately 64% year-over-year [6]. Capital and Portfolio Management - The company's stockholders' equity increased from $668.5 million at the end of 2024 to $855.9 million by March 31, 2025 [5]. - As of March 31, 2025, the total market value of the MBS portfolio was approximately $120.97 million, with a weighted average coupon of 5.27% [19]. - The effective duration of the MBS portfolio was 3.257, indicating sensitivity to interest rate changes [19]. Market Conditions and Outlook - The first quarter of 2025 experienced low volatility and stable interest rates, creating an ideal environment for leveraged investment strategies [2]. - However, the second quarter has shown signs of uncertainty, particularly regarding the economic effects of new tariffs, which could influence interest rates and the company's investment portfolio [4]. Financing and Liquidity - As of March 31, 2025, Bimini had outstanding repurchase obligations of approximately $115.5 million, with a net weighted average borrowing rate of 4.47% [20]. - The company's liquidity stood at approximately $4.5 million, consisting of unpledged MBS and cash equivalents [20]. Earnings and Key Metrics - For the first quarter of 2025, Bimini reported a net income of $0.6 million, or $0.06 per common share, with a book value per share of $0.74 [9][11]. - The average yield on MBS was 5.73%, while the average cost of funds was 4.49%, resulting in an average interest rate spread of 1.24% [27].

Financial Data and Key Metrics Changes - The recurring earnings in Q1 2025 increased to a level consistent with the company's dividend of $0.20 per share, reflecting a strategic portfolio restructuring initiated two years ago [6][7] - Earnings Available for Distribution (EAD) per share rose to $0.20 in Q1 2025 from $0.16 in Q4 2024, while quarterly EPS contribution from adjusted net interest income increased to $0.40 per share, up from $0.36 in the prior quarter [12][16] - GAAP book value and adjusted book value per share increased to $9.37 and $10.43 respectively, representing a 1% increase compared to the end of 2024 [16] Business Line Data and Key Metrics Changes - Agency RMBS investments now account for over 50% of company assets, with approximately $1.5 billion purchased in Q1 2025, nearly four times more than the previous quarter [10][17] - In the residential credit sector, $397 million of whole loans were purchased, with a focus on bridge loans and rental loans [18][19] - The portfolio recourse leverage ratio decreased to 0.5 times from 1.1 times, reflecting successful securitizations in the residential loan sector [9][16] Market Data and Key Metrics Changes - The market experienced spread widening in Agency RMBS and residential credit, with current coupon agency spreads widening from 135 basis points to 143 basis points in Q1 2025 [22][23] - As of April 2025, adjusted book value is estimated to be down approximately 1.5% [38] Company Strategy and Development Direction - The company aims to maintain a strong focus on Agency RMBS while also exploring opportunities in residential credit, particularly BPL rental loans [20][40] - The strategic shift towards more liquid agency RMBS is intended to enhance flexibility in capital allocation depending on market conditions [21][22] - The company plans to leverage its platform for service fee income in the near term, while continuing to optimize expected returns from its agency portfolio [8][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the geopolitical situation may lead to further market volatility, but they are prepared to deploy liquidity at attractive levels [20][21] - The company does not foresee immediate impacts from GSE reform on its activities, indicating a cautious approach to potential changes in the mortgage market [32][33] - Management expressed confidence in the ability to generate recurring income to support the current dividend, despite a challenging economic outlook [27] Other Important Information - The company recognized net unrealized gains of $118.2 million during the quarter, primarily from higher valuations in the agency RMBS portfolio [14] - General and administrative expenses increased slightly due to non-recurring employee severance costs related to restructuring initiatives [15] Q&A Session Summary Question: Impact of GSE reform on business and mortgage market - Management indicated that GSE reform could lead to higher mortgage rates and liquidity issues, but does not expect significant influence on activities in the near to medium term [32][33] Question: Update on book value performance in Q2 - As of April month-end, adjusted book value is estimated to be down approximately 1.5% [38] Question: Capital allocation strategy amidst market volatility - Management confirmed a continued focus on Agency RMBS and BPL, with a preference for BPL rental over BPL bridge loans [40][41] Question: Timing surrounding mezzanine and multifamily investments - The 10% payoff rate mentioned was year-to-date as of early April, with expectations for continued resolutions in the multifamily mezzanine portfolio [43] Question: Future capital allocation preferences - Management expressed a preference for Agency RMBS in the near term, while remaining flexible to shift focus based on market conditions [45]

Financial Data and Key Metrics Changes - The company reported earnings available for distribution per share of $0.72, consistent with the prior quarter, driven by lower average repo rates of 4.56% compared to 4.93% in the previous quarter [18] - The book value per share was $19.02, reflecting a modest decline of less than 1% quarter over quarter [18] - The economic return for Q1 was 3%, with individual business segments contributing positively despite a challenging macro environment [18] Business Line Data and Key Metrics Changes - The Agency portfolio saw a notional growth of $3.5 billion, driven by purchases of intermediate coupon TBAs [9] - The Residential Credit portfolio ended the quarter at $6.6 billion in market value, with a decrease of $340 million quarter over quarter due to opportunistic sales and increased securitizations [11] - The Mortgage Servicing Rights (MSR) portfolio remained relatively unchanged at $3.3 billion in market value, with $28 billion in principal balance settled during Q1 [14] Market Data and Key Metrics Changes - Economic leverage increased modestly to 5.7 turns, remaining at the low end of the historical range [6] - The housing market is showing signs of increased regional disparity, with some areas experiencing a modest reversal in home price appreciation trends [12] - Inventory levels have increased, with a year-over-year rise of 18%, impacting the spring selling season [58] Company Strategy and Development Direction - The company aims to maintain a conservative leverage approach amidst market volatility, balancing the opportunity to increase leverage with the risks associated with high volatility [38] - The focus remains on agency investments as spreads have cheapened, while also continuing to grow the OBX platform for loan acquisition and securitization [76] - The company is strategically aligned with industry-leading sub-servicing partners to enhance efficiency and technological investment in the mortgage industry [15] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of U.S. trade policy on consumer and business confidence, which may affect economic growth [7] - Despite the uncertain outlook, the company believes its diversified and actively managed portfolio positions it well to perform across various economic scenarios [17] - The management remains optimistic about the housing market's long-term stability due to low delinquencies and tight underwriting standards, despite short-term pullbacks in certain regions [62] Other Important Information - The company increased its common stock dividend to $0.70 per share, underscoring earnings momentum [6] - The total assets available for financing increased to approximately $7.5 billion, reflecting enhanced liquidity [22] Q&A Session Summary Question: Update on book value quarter to date - The book value was off roughly 3.5% as of Tuesday evening, improving from a 4.5% decline post-Easter [26] Question: Outlook for spreads and regulatory impacts - Swap spreads have tightened due to volatility, and regulatory reforms are anticipated to positively impact market conditions in the future [27][33] Question: Thoughts on leverage given current market conditions - The company is maintaining a conservative leverage approach due to high volatility, despite wider spreads suggesting a potential increase in risk [37][39] Question: Supply-demand dynamics in the agency portfolio - There was strong demand from fixed income funds and banks, but foreign demand, particularly from Asian accounts, remains limited [87][88] Question: Impact of housing price moderation on the market - Housing prices have increased significantly since 2019, but recent inventory increases may lead to short-term pullbacks in certain regions [58][62]

Financial Data and Key Metrics Changes - The recurring earnings in Q1 2025 increased to a level consistent with the company's dividend of $0.20 per share, reflecting a strategic portfolio restructuring initiated two years ago [6][7] - Earnings Available for Distribution (EAD) per share rose to $0.20 in Q1 2025 from $0.16 in Q4 2024, while quarterly EPS contribution from adjusted net interest income increased to $0.40 per share, up from $0.36 in the prior quarter [12][13] - GAAP book value and adjusted book value per share increased to $9.37 and $10.43 respectively, representing a 1% increase compared to the end of 2024 [17] Business Line Data and Key Metrics Changes - Agency RMBS investments now account for over 50% of company assets, with approximately $1.5 billion of Agency RMBS purchased in Q1 2025, nearly four times more than the previous quarter [11][18] - In the residential credit sector, $397 million of whole loans were purchased, with a focus on bridge loans and rental loans [19][20] - The portfolio recourse leverage ratio decreased to 0.5 times from 1.1 times, reflecting successful securitizations in the residential loan sector [10][17] Market Data and Key Metrics Changes - The market experienced spread widening in Agency RMBS and residential credit, with current coupon agency spreads widening from 135 basis points to 143 basis points [22] - As of April 2025, adjusted book value is estimated to be down approximately 1.5% [38] Company Strategy and Development Direction - The company aims to maintain a strong focus on Agency RMBS while also exploring opportunities in residential credit, particularly BPL rental loans [21][41] - The strategic shift towards more liquid agency RMBS is intended to enhance flexibility in capital allocation depending on market conditions [21][22] - The company has reduced its JV equity exposure to less than 1% of the overall portfolio, indicating a shift in investment strategy [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for additional revenue generation through service fee income and highlighted the importance of operational efficiencies in supporting dividend coverage [8][12] - The company anticipates continued market volatility but is prepared to deploy liquidity into attractive investment opportunities as they arise [21][22] - Management does not foresee significant impacts from potential GSE reforms in the near to medium term [33][34] Other Important Information - The company recognized net unrealized gains of $118.2 million during the quarter, primarily from higher valuations in the agency RMBS portfolio [14] - General and administrative expenses increased slightly due to non-recurring employee severance costs related to restructuring initiatives [16] Q&A Session Summary Question: Impact of FHFA and GSEs changes on business - Management discussed potential GSE reforms, indicating that it could lead to higher mortgage rates and liquidity issues, but does not expect significant changes in the near term [33][34] Question: Update on book value performance in Q2 - As of April 2025, adjusted book value is estimated to be down approximately 1.5% [38] Question: Capital allocation strategy amidst market volatility - Management confirmed a continued focus on Agency RMBS and BPL, with a preference for BPL rental over BPL bridge loans [40][41] Question: Timing surrounding mezzanine and multifamily investments - The 10% payoff rate mentioned was year-to-date as of early April, with expectations for continued resolutions in the multifamily mezzanine portfolio [44] Question: Future capital allocation preferences - Management expressed a preference for Agency RMBS in the near term but acknowledged the potential for shifts depending on market conditions [46]

New York Mortgage Trust, Inc. 2025 First Quarter Financial Summary These and other risks, uncertainties and factors, including the risk factors and other information described in our most recent Annual Report on Form 10-K, as updated and supplemented from time to time, and our subsequent Quarterly Reports on Form 10-Q and other information that we file from time to time with the U.S. Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), could ...

Core Insights - New York Mortgage Trust, Inc. reported a net income of $30.285 million for the first quarter of 2025, translating to a basic earnings per share of $0.33, a significant recovery from a net loss of $68.34 million in the same period of the previous year [2][37][41] - The company achieved an economic return on book value of 3.13% and an economic return on adjusted book value of 2.71% for the quarter [2][4] - The company completed the issuance of $82.5 million in senior notes, raising approximately $79.3 million in net proceeds, which will support its investment activities [6] Financial Performance - Interest income for the quarter was reported at $129.734 million, up from $83.892 million year-over-year, while interest expense increased to $96.636 million from $66.029 million [37][41] - The net interest income for the quarter was $33.098 million, compared to $17.863 million in the same quarter of the previous year [37][41] - The yield on average interest-earning assets was 6.47%, with a net interest spread of 1.32% [2][23] Investment Activities - The company purchased approximately $1.5 billion in Agency RMBS with an average coupon of 5.35% and $396.8 million in residential loans with an average gross coupon of 9.33% [7] - Two securitizations of residential loans were completed, resulting in net proceeds of approximately $326.3 million [8] - The company repurchased 231,200 shares of its common stock for a total cost of approximately $1.5 million, averaging $6.50 per share [9] Capital Allocation - As of March 31, 2025, the total investment portfolio carrying value was $8.270581 billion, with significant allocations in residential loans and investment securities [11] - The company reported total assets of $10.004055 billion, an increase from $9.217282 billion at the end of the previous year [35] Management Commentary - The CEO highlighted that the increased investment activity in the first quarter was a response to more attractive market conditions, leading to a substantial boost in earnings [10] - The management believes that the strengthened balance sheet will provide flexibility to capitalize on market dislocations and further grow earnings throughout the year [11]

Core Insights - AGNC (NASDAQ: AGNC) operates a leveraged model that invests in mortgage-backed securities, enhancing returns by utilizing funding from lower interest rate entities [1] - The company employs hedging strategies, including interest rate swaps and US-based securities, to protect its investments from significant volatility [1] Company Overview - AGNC focuses on mortgage-backed securities, which are financial instruments backed by mortgage loans [1] - The company’s investment strategy is designed to capitalize on lower interest rates to maximize returns [1] Investment Strategy - The use of leverage in AGNC's model allows for increased potential returns, but also introduces additional risk [1] - Hedging techniques are critical for mitigating risks associated with interest rate fluctuations and market volatility [1]

Financial Data and Key Metrics Changes - The company generated a total economic return of 4.4% for Q1 2025, with both RMBS and MSR contributing positively to the results [4] - Book value increased to $14.66 per share at March 31, compared to $14.47 at December 31, including a $0.45 common stock dividend [10] - Comprehensive income for the first quarter was $64.9 million, or $0.62 per weighted average common share [11] - Economic debt to equity decreased to 6.2 times [15] Business Line Data and Key Metrics Changes - Net interest and servicing income increased by $5.2 million due to portfolio shifts into higher coupon agency RMBS and lower borrowing rates [11] - The company decreased its mortgage exposure by 30% and reduced leverage during the first quarter [15] - The MSR portfolio's prepayment speed was 4.2 CPR for Q1, down 0.7% quarter over quarter [24] Market Data and Key Metrics Changes - Interest rates across the US treasury yield curve ended the first quarter lower than at the end of 2024, with two-year and ten-year notes both decreasing by 36 basis points [5] - Prepayment rates for the thirty-year agency RMBS universe decreased by 1.4 percentage points quarter over quarter to 5.6% CPR [20] Company Strategy and Development Direction - The company aims to scale its direct-to-consumer originations platform, increase offerings of second liens, and explore opportunities in the Ginnie Mae market [6][7] - The focus is on growing the presence in third-party subservicing and generating cost efficiencies through technology and AI applications [7] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about economic uncertainty driven by proposals on tariffs and trade policy, which could impact the dollar's status as the world's reserve currency [6] - The company is managing its portfolio for long-term stability while keeping leverage and risk at muted levels until there is more clarity on the economic path forward [29] Other Important Information - The company has maintained high liquidity levels, with $950 million in unused MSR asset financing capacity and $47 million in unused capacity for service and advances [13] - The MSR market remains well supported, with transfer volume normalizing to pre-COVID levels [22] Q&A Session Summary Question: Update on book value through April and portfolio adjustments - Management indicated a 3.5% decline in book value through early April and noted further risk reduction in the portfolio due to increased volatility [33][34] Question: Impact of Rocket and Mr. Cooper merger on the servicing market - Management believes the merger's impact on demand for MSR will be muted, with combined demand likely equal to the sum of individual demands [41][42] Question: Comfort level with the dividend - Management expressed confidence in supporting the dividend given the current portfolio composition and wider spreads [50] Question: Sensitivity of book value to spread changes - Management explained that the sensitivity to spread changes is lower due to the allocation of capital between MSR and securities [52][56] Question: Liquidity levels and recapture efforts - Management confirmed high liquidity levels and noted that organic recapture from the direct-to-consumer channel remains low but is expected to improve as the platform scales [81][84] Question: Interest in the Ginnie Mae market - Management is exploring the Ginnie Mae market for potential opportunities and to enhance their service offerings [86]