Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 181

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 181
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 Swap carry by asset class to reflect the economic impact of our Swaps on the net interest spread shown in the table above. 

Interest Income

Interest income on our residential whole loans for the third quarter of 2025 decreased by $1.3 million, or 0.8%, to $153.3 million, compared to $154.6 million for the second quarter of 2025. This decrease primarily reflects a decrease in the yield to 6.81% for the third quarter of 2025 from 6.85% for the second quarter of 2025.

Interest income on our Securities, at fair value portfolio for the third quarter of 2025 decreased by $1.1 million, or 4%, to $27.7 million, compared to $28.8 million for the second quarter of 2025. This decrease reflects a decrease in the yield to 5.79% for the third quarter of 2025 from 6.60% for the second quarter of 2025, with the second quarter of 2025 including $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full, partially offset by a $169.8 million increase in the average balance of this portfolio to $1.9 billion for the third quarter of 2025 from the second quarter of 2025.

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Interest Expense

Our interest expense for the third quarter of 2025 increased by $1.9 million, or 1.5%, to $129.0 million, from $127.1 million for the second quarter of 2025. This increase primarily reflects an increase in the average balance of our securities repurchase agreements and securitized debt, as well as an increase in the rate on our securitized debt, partially offset by lower average balance of, and rates on, residential whole loan financing agreements.

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

For the third quarter of 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.3 million compared to a provision for credit losses of $0.8 million for the second quarter of 2025. The provision recorded in the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value.

Provision for Credit Losses on Other Assets

We had no provision for credit losses on Other Assets for the third quarter of 2025