Slide 1: Forward-looking statements
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Slide 2: Executive summary
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Slide 3: Executive summary (cont'd)
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Slide 4: Investment strategy
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Slide 5: Market conditions and investment activity
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Slide 6: Q2 2018 net income per common share of $0.17
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Slide 7: Second quarter 2018 investment flows
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Slide 8: MFA's yields and spreads remain attractive
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Slide 9: Second quarter 2018 yields and spreads by asset type
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Slide 10: MFA's interest rate sensitivity remains low
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Slide 11: MFA's strategy continues to deliver book value stability
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Slide 12: n :::J U Units (millions) r-+ #. ,...., fR fl!. ;::::; #. N N
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Slide 13: Residential whole loan portfolio update
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Slide 14: RPL portfolio delinquency characteristics as of 6/30/2018
RPL portfolio delinquency characteristics as of 6/30/2018 • 89% of our RPL portfolio is less than 60 days delinquent. • On average over the last 12 months, 29% of the 60+ days delinquent loans are making payments. • Prepay speeds have outperformed expectations maintaining a range between 6% and 12%.
Slide 15: Performance of non-performing loans purchased before 6/30/17
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Slide 16: NPL asset management performance
NPL asset management performance(1) • Through diligent asset management we continue to improve outcomes for our NPL portfolio by returning loans to performing or paid-in-full status, and through other forms of resolution. % Performing or Paid-in-Full by Year of Acquisition 2014 2015 2016 30% 25% 20%
Slide 17: Non-QM investments
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Slide 18: Business purpose loans - Rehabilitation and SFR Loans
Business purpose loans - Rehabilitation and Single Family Rental (SFR) Loans MFA has started acquiring Rehabilitation and SFR loans from a select group of origination partners. As of the end of Q2 we held $163 million of Rehabilitation loans (with an additional $30 million of undrawn commitments) an
Slide 19: Summary
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Slide 20: Summary
Summary * We remain active in the market and again grew the portfolio as we purchased or committed to purchase more than $1 billion of investments in the second quarter. * We continue to expand our investment opportunity set within the residential mortgage space, utilizing the same disciplined appro
Slide 21: Modest book value decline as dividend distributions exceeded EPS
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Slide 22: Book value per common share reconciliation
[Sook value per common share at the beginning of the period Net income available to common shareholders Common dividends declared Net change attributable to Agency MBS Discount Accretion: Primarily income in excess of coupon on Non-Agency MBS purchased fat a discount. Results in increased amortized