MFA Financial stock rises after Q1 earnings top consensus on interest income growth

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MFA Financial (NYSE:MFA) shares are edging higher by 1.8% out of the gates Wednesday as its Q1 net interest income climbed over the year-ago quarter.

Net interest income was $63.1M at March 31, up from $51M at March 31, 2021. Residential whole loans of $99.47M at the end of March gained from $64.54M in Q1 of last year.

Q1 operating expenses of $42M nearly doubled from $22.53M in Q1 2021.

Overall, in the wake of the worst bond rout in decades, the mortgage REIT saw a net loss of $82.91M in Q1, down from a gain of $85.5M in Q1 a year ago.

To address the bond market swoon, MFA Financial (MFA) took “steps to further hedge our exposure to interest rate risk, as well as bolster our cash position,” said CEO and President Craig Knutson. “Specifically, we added $1.5 billion in interest rate swaps and completed additional securitizations,” he added.

Its investment portfolio stood at $8.66B at March 31 compared with $8.33B in Q1 2021.

Q1 book value of $17.84 per share vs. $18.54 in Q1 2021.

Earlier, MFA Financial adjusted EPS of $0.62 beat the consensus of $0.39.