Core Viewpoint - Franklin BSP Realty Trust (FBRT) reported results that were largely as expected, with a notable decline in adjusted core earnings/EAD, which may improve over time due to the acquisition of NewPoint [1][4][15] Financial Performance - FBRT experienced a minor quarterly book value (BV) decrease of 1.1%, which was in line with expectations, while adjusted core earnings/EAD showed a significant underperformance with a decline of 20.35% compared to projections [9][11] - The company recorded a net decrease in CECL reserves of $4 million, attributed to a smaller investment portfolio size and a minor net realized loss/write-off [2][3] - The investment portfolio size decreased by 6.5%, which was greater than the projected 2% decline, and the effective coupon rate was slightly lower at 7.85% compared to the expected 7.90% [3][4] Acquisition Impact - The acquisition of NewPoint Holdings, which closed on July 1, 2025, is expected to positively impact FBRT's adjusted core earnings/EAD, although management acknowledges the challenge of returning to previous dividend levels [5][15] - The financial impacts of the NewPoint acquisition will begin to reflect in Q3 2025, with management expressing confidence in the acquisition's benefits [15][16] Market Position and Valuation - FBRT is currently viewed as modestly undervalued, with a recommendation range downgrade of 2.5% due to poor adjusted core earnings performance, but the risk/performance rating remains unchanged at 4.5 [10][12][16] - The current dividend yield stands at 12.56%, with a payout ratio of 97%, indicating a high return relative to the stock price of $11.31 [12] Credit Risk and Loan Performance - Credit risk remains a concern, with an uptick in non-accrual loans anticipated in 2025-2026, as FBRT added three new loans to its watch list during Q2 2025 [7][14] - The company had significant loan prepayments and amortizations, totaling $353 million in Q1 2025 and $317 million in Q2 2025, which were higher than projected [3][4]

Core Viewpoint - Two Harbors Investment (TWO) experienced a significant decline in book value (BV) during Q2 2025, attributed to legal losses and hedging decisions, leading to a recommendation of "hold" on shares [1][8][10]. Performance Summary - The actual quarterly BV decrease for TWO was 17.2%, which was worse than the projected 14.8% decline, indicating a severe underperformance [2][8]. - A unique legal dispute with the previous external manager negatively impacted TWO's BV during the quarter [2][10]. - Hedging decisions made by TWO had a negative effect on BV but positively influenced core earnings/EAD [3][7]. Portfolio Management - TWO maintained the size of its on-balance sheet fixed-rate agency MBS/investment portfolio, contrary to expectations of asset shedding due to legal issues [4][10]. - The company made bulk purchases of $6.4 billion in MSRs, resulting in a $2.0 billion increase in UPB, which was contrary to the anticipated decrease [5][10]. - The derivatives sub-portfolio underperformed expectations, primarily due to the lack of asset sales and an increase in the hedging coverage ratio from 77% to 85% [6][14]. Earnings Performance - Core earnings/EAD for TWO modestly outperformed expectations, driven by lower net interest expenses and higher net servicing income [7][8]. - The reported core earnings were $29.594 million, exceeding the projected $24 million, marking a 23.48% beat [18]. Valuation and Recommendations - TWO's current valuation is deemed appropriate, with a hold recommendation due to the ongoing legal matters and the need for spread stabilization [22][23]. - The company’s dividend yield stands at 15.45%, with a payout ratio of 107% [20].

Core Viewpoint - PennyMac Mortgage Trust (PMT) experienced an underperforming quarter, with results slightly below expectations, primarily due to higher borrowing costs impacting profits. The company remains slightly undervalued, and the dividend remains unchanged [1][11]. Performance Summary - PMT recorded a minor book value (BV) decrease compared to projections, which anticipated a relatively unchanged BV. The accuracy of BV projections is challenging due to the complexity of PMT's business model and sector volatility [2][10]. - Correspondent loan acquisitions increased significantly in Q2 2025, with a volume of $29.8 billion, representing a 30% increase from Q1 2025, surpassing the expected 25% increase. However, this growth came with a decline in gross origination spread margins [3][10]. - The company's Credit Risk Transfer (CRT) sub-portfolio showed stable net valuation fluctuations, with delinquencies remaining under 1.5%, indicating subdued credit risk [4][10]. - The Mortgage Servicing Rights (MSR) sub-portfolio slightly underperformed expectations due to higher prepayment speeds, with actual amortization of $98 million compared to the projected $90 million [5][10]. - PMT's agency mortgage-backed securities (MBS) and residential whole loans sub-portfolios slightly underperformed expectations, primarily due to a reduction in the fixed-rate agency MBS sub-portfolio size by $115 million [6][10]. - The hedging and derivative instruments sub-portfolio also slightly underperformed expectations, with no notable surprises in underlying changes during Q2 2025 [7][10]. - The income tax provision recorded a larger-than-anticipated variance due to a non-recurring tax expense of $14 million, which was difficult to project [8][10]. Financial Metrics - PMT reported a minor increase in interest income but also a modest increase in interest expense, leading to a slight worsening in net interest spreads, which underperformed expectations by $0.03 per common share [9][10]. - The actual BV at the end of Q2 2025 was $15.00, reflecting a 2.6% miss compared to projections [14][10]. - PMT's forward guidance indicates adjusted diluted earnings of $0.38 per common share, a $0.03 increase from Q1 2025, suggesting potential for improved returns in the future [18][10]. Valuation and Recommendations - PMT is currently deemed slightly undervalued, with a dividend range for Q3 2025 expected to remain unchanged at $0.35 - $0.40 per common share [19][10]. - The risk/performance rating for PMT remains at 3.5, indicating a stable outlook in the current environment [12][16].

VERO BEACH, Fla., July 31, 2025 (GLOBE NEWSWIRE) -- Bimini Capital Management, Inc. (OTCQB: BMNM), ("Bimini Capital," "Bimini," or the "Company"), today announced results of operations for the three- month period ended June 30, 2025. Second Quarter 2025 Highlights Management Commentary Commenting on the second quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, "When we announced our first quarter results, the second quarter of 2025 was off to a very rough start. Markets were in t ...

Core Viewpoint - Dynex Capital (DX) reported a Q2 2025 performance that was largely in line with expectations, with a minor book value (BV) outperformance of 1.6% and core earnings meeting projections. Strong capital raises and timely mortgage-backed securities (MBS) purchases helped mitigate early-quarter volatility [1][2][9]. Financial Performance - The quarterly BV for DX showed a modest decrease, consistent with expectations, amidst a volatile environment for agency mREIT stocks. The BV fluctuations were influenced by market conditions, including a spike in mortgage interest rates and U.S. Treasury yields in early April 2025 [2][3]. - DX's management aggressively raised capital during Q2 2025, increasing on-balance sheet MBS by 25% and off-balance sheet MBS by 33%, exceeding initial projections of 15% and 20% respectively [4][10]. - Core earnings/EAD for DX improved, driven by net interest income that matched expectations, although NDR income slightly underperformed. Operational expenses were largely in line with projections [6][9]. Market Conditions - The early part of Q2 2025 saw market volatility due to proposed tariff policies, which led to increased mortgage interest rates and margin calls for some agency mREIT peers. However, DX was insulated from significant margin calls due to its cash reserves and equity issuance [3][4]. - As market conditions stabilized in May 2025, driven by trade negotiations and reduced economic risks, both stock market and MBS pricing rebounded, contributing to DX's performance [3][4]. Risk and Valuation - DX's risk/performance rating remains at 3, reflecting the need to navigate various risks including spread/basis, leverage, and interest rate fluctuations. The company is projected to experience 1-2 basis point cuts in the Federal Funds Rate in the latter half of 2025 [8][16]. - The current valuation of DX is deemed appropriate, with a HOLD recommendation in place. The company is expected to maintain its dividend payout, although future sustainability will be closely monitored [22][21].