NEW YORK MTG(NYMTL) - 2023 Q3 - Quarterly Report

Investment Portfolio - As of September 30, 2023, the total investment portfolio amounted to $4,700,071,000, reflecting an increase of$1,146,642,000 in acquisitions during the quarter[226] - The company purchased $946,226,000 in Agency RMBS during the three months ended September 30, 2023, while experiencing repayments of$24,698,000[226] - The company reported a total of $1,602,215,000 in investment securities available for sale as of September 30, 2023, after accounting for various changes and sales[226] - As of September 30, 2023, the total investment portfolio carrying value was$4,703,506,000, with residential loans accounting for $2,993,895,000[260] - The investment securities portfolio increased to$3.424 billion as of September 30, 2023, from $1.032 billion at the end of 2022, primarily due to purchases of Agency RMBS[346][347] Financial Performance - For the three months ended September 30, 2023, the net loss attributable to the company's common stockholders was$94,819,000, resulting in a loss per share of $1.04[253] - The company reported interest income of$65,195,000 and interest expense of $48,406,000 for the same period, leading to a net interest income of$16,789,000[253] - The economic return on adjusted book value for the nine months ended September 30, 2023, was -12.33%[253] - The net loss attributable to the Company for the three months ended September 30, 2023, was $84,509, a decrease of$30,768 compared to a net loss of $115,277 in 2022[263] - The net loss attributable to the company's common stockholders for the three months ended September 30, 2023, was$94.819 million, an improvement of $30.951 million compared to a loss of$125.770 million in 2022[282] Market Conditions - The U.S. GDP grew at a 4.9% annualized rate in Q3 2023, marking five consecutive quarters of growth, compared to 2.1% in Q2 2023[239] - The U.S. unemployment rate was 3.8% at the end of September 2023, slightly up from 3.6% at the end of June 2023[240] - The average 30-year fixed-rate mortgage rose to 7.63% as of October 19, 2023, up 0.94% year-over-year, which may exert downward pressure on home prices[243] - Multi-family home starts averaged a seasonally adjusted annual rate of 388,000 for Q3 2023, down from 530,500 for the year ended December 31, 2022[244] Risk Management - The company’s interest rate risk management includes the use of interest rate swaps, caps, and other derivatives to hedge against market value risks associated with its investment portfolio[376] - The company faces liquidity risk from financing long-maturity assets with shorter-term financings, necessitating daily management and forecasting of liquidity needs[398] - Credit risk is heightened due to potential economic recession, which may lead to increased delinquencies and defaults on credit-sensitive assets[408] - The company is exposed to margin call risk on repurchase agreements, which could adversely affect liquidity if asset values decrease[399] Asset Management - The company plans to continue opportunistically disposing of assets, including joint venture equity investments, to pursue investments in residential housing with less price sensitivity to credit deterioration[235] - The company has determined that certain joint venture equity investments met the criteria to be classified as held for sale, resulting in a reallocation of capital away from multi-family properties[336] - The Company’s net equity in consolidated multi-family properties and disposal group held for sale totaled $276.4 million as of September 30, 2023, down from$388.8 million as of December 31, 2022[336] Shareholder Returns - The company declared dividends totaling $27,582 for the three months ended September 30, 2023, equating to$0.30 per share[285] - The company has a preferred stock repurchase program approved for $100.0 million, with$97.6 million remaining available for repurchase as of September 30, 2023[381] - The company intends to make distributions to stockholders to comply with REIT status requirements, which may require selling assets or borrowing funds on a short-term basis[385] Leverage and Capital Structure - As of September 30, 2023, the Recourse Leverage Ratio and Portfolio Recourse Leverage Ratio increased to 1.3x and 1.2x, respectively, from 0.7x and 0.6x as of June 30, 2023[234] - The company’s recourse leverage ratio was approximately 1.3 to 1 as of September 30, 2023, indicating the total outstanding recourse financing relative to total stockholders' equity[375] - The Company had ten Company-sponsored securitizations with CDOs outstanding as of September 30, 2023, with a carrying value of $1.3 billion[373] Economic Indicators - The Federal Reserve raised the target range for the federal funds rate by a total of 5.25$16.9 million during the nine months ended September 30, 2023[365] - Net cash flows used in investing activities were $822.5 million, primarily due to purchases of investment securities and residential loans[366] - As of September 30, 2023, the Company had$221.2 million of available cash and cash equivalents[361]