NEW YORK MTG(NYMTL) - 2025 Q1 - Quarterly Report

Financial Performance - Net income attributable to common stockholders was $0.33 per share for the first quarter of 2025[247]. - Earnings available for distribution was$0.20 per share for the first quarter of 2025, indicating continued momentum in portfolio growth and income generation[247]. - Net income attributable to the Company's common stockholders for Q1 2025 was $30,285,000, with a basic earnings per share of$0.33[269]. - Net income attributable to the company for the three months ended March 31, 2025, was $42.155 million, a significant improvement from a net loss of$57.901 million in 2024[282]. - Basic earnings per common share improved to $0.33 in 2025 from a loss of$0.75 in 2024, an increase of $1.08[282]. - GAAP net income attributable to common stockholders for Q1 2025 was$30,285, compared to a loss of $68,340 in Q1 2024[322]. - Earnings available for distribution (EAD) attributable to common stockholders increased to$18,194 in Q1 2025 from $2,117 in Q1 2024[322]. Investment Portfolio - The total investment portfolio reached$8.26 billion as of March 31, 2025, after accounting for acquisitions and repayments[242]. - The company’s residential loans at fair value increased to $2.95 billion as of March 31, 2025, from$2.88 billion at the end of 2024[242]. - Agency RMBS holdings grew to $4.56 billion as of March 31, 2025, up from$3.14 billion at the end of 2024[242]. - The company purchased approximately $1.5 billion of Agency RMBS with an average coupon of 5.35$8,270,581,000[276]. - The investment securities portfolio's fair value increased to $4.794 billion as of March 31, 2025, from$3.977 billion on December 31, 2024, marking an increase of approximately 20.5%[350]. - The total fair value of residential loan securitizations increased to $1.554 billion as of March 31, 2025, compared to$1.253 billion on December 31, 2024, representing a growth of approximately 24%[348]. Debt and Financing - The company issued $82.5 million of 9.125$79.3 million in net proceeds primarily used to purchase Agency RMBS[250]. - The company had $100.0 million in 5.75$184.8 million of additional advances on existing business purpose loans as of March 31, 2025[424]. - The common stock repurchase program had $189.7 million remaining available as of March 31, 2025, and it also expires on March 31, 2026[419]. - The company reported redeemable non-controlling interests of approximately$13.4 million as of March 31, 2025, related to its joint venture equity investments[373]. Economic Environment - The U.S. GDP contracted by 0.3% in the first quarter of 2025, marking the first quarter of contraction since Q1 2022, compared to a 2.4% growth in Q4 2024[255]. - The unemployment rate in the U.S. was 4.2% at the end of March 2025, slightly up from 4.1% at the end of December 2024, with 7.1 million unemployed persons[256]. - Effective rents for professionally managed apartments grew 1.1% for the twelve months ended March 2025, but there were significant regional disparities[260]. - Investment grade credit spreads widened by 15 basis points and high-yield spreads by 63 basis points during the first quarter of 2025[261]. Asset Management and Strategy - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[243]. - The company expects to continue opportunistically disposing of assets from its multi-family portfolio while focusing on investments in the residential housing sector[251]. - The company has maintained its qualification as a REIT, which allows it to avoid federal income tax on distributed taxable income[245]. - The company actively manages its portfolio and continuously adjusts the size and composition of its asset and derivative hedge portfolios[433]. Interest Income and Expenses - Interest income increased by 55% and adjusted interest income increased by more than 57% for the first quarter of 2025 compared to the same period in 2024[247]. - Interest income for the same period was $129,734,000, while interest expense was$96,636,000, resulting in a net interest income of $33,098,000[269]. - The yield on average interest-earning assets was reported at 6.47$96.636 million in 2025 from $66.029 million in 2024, an increase of 46.5$86,560, up from $51,896 in Q1 2024, marking an increase of approximately$34.7 million[310][314]. Real Estate and Loans - The company’s weighted average loan-to-value (LTV) ratio for business purpose rental loans was 73% as of March 31, 2025[337]. - The delinquency status shows that 91.3% of loans were current as of March 31, 2025, a slight increase from 91.2% at the end of 2024[342]. - The weighted average credit score at purchase for the underlying loans was 765 as of March 31, 2025, compared to 767 at the end of 2024[342]. - The company had a net investment in Consolidated SLST of $149.4 million as of March 31, 2025, slightly down from$149.8 million at the end of 2024[347]. Cash Flow - The Company generated net cash flows from operating activities totaling $25.8 million during the three months ended March 31, 2025[401]. - Net cash flows used in investing activities were$794.2 million, primarily due to purchases of investment securities and residential loans[402]. - Net cash flows provided by financing activities were $713.8 million, mainly from proceeds received from repurchase agreements and the issuance of CDOs and senior unsecured notes[405]. Risk Management - Changes in interest rates could significantly impact adjusted net interest income, with a +200 basis points change resulting in a decrease of$90,470 thousand[433]. - The company utilizes interest rate caps and swaps to manage interest rate risk in its portfolio[431]. - The company may be required to enter into interest rate cap contracts for variable-rate mortgages payable in its Consolidated Real Estate VIEs[416].