Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 175

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 175
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 ended March 31, 2025 increased by $11.7 million to $24.7 million from $13.0 million for the three months ended March 31, 2024. This increase primarily reflects an increase in the average amortized cost of the portfolio of $908.6 million from purchases of Agency MBS, partially offset by a decrease in the net yield on our Securities, at fair value portfolio to 6.07% for the three months ended March 31, 2025, compared to 7.24% for the three months ended March 31, 2024.

Interest income on our residential whole loans for the three months ended March 31, 2025 decreased by $6.4 million, or 4.0%, to $151.3 million, compared to $157.7 million for the three months ended March 31, 2024.  This decrease primarily reflects a $0.6 billion decrease in the average balance of this portfolio to $8.9 billion for the three months ended March 31, 2025 from $9.5 billion for the three months ended March 31, 2024, partially offset by an increase in the yield to 6.77% for the three months ended March 31, 2025 from 6.63% for the three months ended March 31, 2024.

Interest Expense

Our interest expense for the three months ended March 31, 2025 decreased by $6.0 million, or 4.7%, to $123.0 million, from $129.0 million for the three months ended March 31, 2024.  This decrease primarily reflects a decrease in the average balance of, and rates, on our financing agreements on residential whole loans, lower financing rates on our securities repurchase agreements, and $3.2 million of lower interest expense related to our convertible senior notes which matured and were paid in full in June 2024, partially offset by higher average balance of, and rates, on our securitized debt, higher average balance of our securities repurchase agreements, and $1.8 million of interest expense related to our 9.00% Senior Notes that were issued in April 2024.

Provision for Credit Losses on Residential Whole Loans Held at Carrying Value

For the three months ended March 31, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.