New York based MFA Financial, Inc. (MFA) Thursday reported a profit in the first quarter, as interest income surged reflecting hefty losses on sale of Market Backed Securities, or MBS, and termination of Swaps in the year-ago period. Earnings came in line with Street expectations.
For the first quarter, MFA Financial reported a net income of $51.63 million or $0.23 per share, compared to net loss of $87.98 million or $0.61 per share in the previous year.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share in the first quarter. Analysts' estimate typically excludes special items.
Net interest income for the quarter increased to $60.63 million from $34.62 million in the same period last year.
Eight analysts expected the company to report revenue of $56.01 million in the first quarter.
Interest expense for the quarter declined to $72.14 million from $93.47 million in the corresponding quarter last year.
Other losses for the quarter were $1.12 million, compared to $116.36 million. In the prior-year quarter, the company's losses included $24.53 million on sale of MBS and $91.48 million on termination of Swaps.
William Gorin, Chief Executive, MFA said, "The current financial environment is driven by exceptionally low short-term interest rates with a Fed Funds target rate range of 0.0% to 0.25%."
MFA is currently trading at $5.95, up $0.07 or 1.19%, on the NYSE.
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