Mfa Financial, Inc. · NYSE:MFA
Mfa Financial — Investor Presentation (November 2010)
15 slides from Mfa Financial's investor presentation, Nov 16, 2010
Slide 1: November 2010
November 2010
Slide 2: Forward Looking Statements
Forward Looking Statements tten or oral statements which are not historical in nat including those contining wots such s “believe,” “expect.” “anticipate,” vestinate,” plan” “oat,” intend “should,” “may” 5° for 27A of the Securities Act of 1933, as amended, and Section 21E ofthe Securities Exchange
Slide 3: MFA is positioned with the requisite expertise to benefit from investment in Agency and Non-Agency Residential MBS
MFA is positioned with the requisite expertise to benefit from investment in Agency and Non-Agency Residential MBS
Slide 4: Experienced Management Team Focused on Residential MBS Opportunities
ced Management Team Focused on Residential MBS Opportunities > Non-Agency MBS remain available at deep discounts to par value. > Agency MBS continue to benefit from a steep yield curve. > Our goal remains to generate double-digit ROEs with appropriate levels of leverage.
Slide 5: Solid Long Term Results
Solid Long Term Results Total Retw 500 9 300 200 10 ° eee ce Dee3? Deed Dee0h Dee? Deed} Debs Deed DeelG Deed? Decth DeedB Sane ar] berg sesment of dividends through November $, 2010
Slide 6: Growth in Book Value Per Share
Growth in Book Value Per Share 48% Growth in Book Value per Common Share over the last 21 Months $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 st.00 $0.00 December 31, 2008 December 31, 2009 September 30, 2010
Slide 7: Asset Allocation Strategy
et Allocation Strategy ‘Non-Agency AtSeptember 30, 2010 Agency MBS __ MBS (1) ash Other, net Tort Tiviation — Amortized cost S590 $2 So © S$ 8459 Asset fair value Ss 61 S$) (2a mS 884 Less repurchase agreement borowings 5.230) 17%) : (6.18) = Equity allocated om sim Ss S266 ‘Swaps at fir valve - - N
Slide 8: MFA Investment Strategy
MFA Investment Strategy Higher Yielding Non-Agency MBS generated approximately 60% of MFA’s Third Quarter Core Net Interest Income HINon-Agency MBS: $41,438 MllAgency MBS: $28,192 E\Cash: $121 Dollars in Thousands jes $0.5 ‘Non-Agency MBS and $1.7, repurchase agreement borrowings underlying MBS Forw
Slide 9: MFA Strategy - Agency MBS
MFA Strategy - Agency MBS Strategically Positioning Agency MB: Portfolio The Agency MBS Portfolio (w e to potential interest eases in prepayments and m in excess of $10 es) has been reduced fi Ilion to $6.2 Billion MFA Agency Portfolio September 2010
Slide 10: MFA Strategy — Agency MBS
MFA Strategy — Agency MBS > The majority of our assets will continue to be whole-pool Agency MBS due to the attractiveness of the asset class. > The yield curve remains steep and incremental spreads on Agency MBS remain attractive. » Tighter underwriting standards moderate voluntary prepayment rates
Slide 11: MFA continues to identify high-yielding Non-Agency MBS at discounted prices
MFA continues to identify high-yielding Non-Agency MBS at discounted prices MFA Non-Agency Portfolio* 2,351 $2,000 + ns of Dollars S204 December 2008 September 2010 “Includes $546 million fair value of Non-Agency MBS wideriving MBS Forwards at Seprember 30, 2010.
Slide 12: MFA Strategy - Non-Agency MBS
MFA Strategy - Non-Agency MBS* MEA >MFA owns $2.4 billion market value of Non- Agency MBS. These Non-Agency MBS have an average amortized cost of 68% of par. >In the Third Quarter of 2010, these assets generated a loss adjusted yield of 9.3% on an unlevered basis. >These high yielding assets are les
Slide 13: MFA Strategy — Non-Agency MBS
MFA Strategy — Non-Agency MBS Deeply discounted purchase price, substantial credit reserve and Non-Agency Portfolio Current Face $3,150,662 As of September 30, 2010* Dollars in Thousands 13 MBS.
Slide 14: MFA is positioned with the requisite expertise
MFA is positioned with the requisite expertise to benefit from investment in Agency and Non-Agency Residential MBS
Slide 15: MFA Financial, Inc.
PINANCIAL, INC.
MFA Financial — Investor Presentation (November 2010) on 6ix