Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 172

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 172
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Diluted Earnings/(Loss) per Common Share$0.21 $0.31 $(0.10)

67  

General

For the second quarter of 2025, we had net income available to our common stock and participating securities of $22.6 million, or $0.22 per basic common share and $0.21 per diluted common share, compared to net income available to common stock and participating securities of $33.0 million, or $0.32 per basic common share and $0.31 per diluted common share, for the first quarter of 2025. The decrease in net income available to common stock and participating securities in the current period primarily reflects a decrease in Other income/(loss), net to $12.3 million for the current quarter compared to an Other income/(loss), net of $24.5 million in the immediately prior quarter, as well as a $2.3 million increase in preferred stock dividends paid as a result of the higher floating rate payable on our Series C preferred stock, partially offset by lower Compensation and benefits expenses and higher net interest income.

Net Interest Income

Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities.  Net interest income depends primarily upon the volume of interest-earning assets and interest-bearing liabilities and the corresponding interest rates earned or paid.  Our net interest income varies primarily as a result of changes in interest rates, the slope of the yield curve (i.e., the differential between long-term and short-term interest rates), borrowing costs (i.e., our interest expense), the level of loan delinquencies, which may result in changes in the amount of non-accrual loans, and prepayment speeds on our investments.  Interest rates and CPRs (which measure the amount of unscheduled principal prepayment on a bond or loan as a percentage of its unpaid balance) vary according to the type of investment, conditions in the financial markets and other factors, none of which can be predicted with any certainty.

The changes in average interest-earning assets and average interest-bearing liabilities and their related yields and costs are discussed in greater detail below under “Interest Income” and “Interest Expense.”

For the second quarter of 2025, our net interest spread and margin (including the impact of net Swap carry) were 1.98% and 2.73%, respectively, compared to a net interest spread and margin (including the impact of net Swap carry) of 1.84% and