Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 190

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 190
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 and other related operating expenses and amortization of Lima One intangible assets.

Compensation and benefits expenses are composed of salaries, annual bonus, stock-based awards, long-term incentives, Lima One sales commissions, related payroll taxes, medical insurance, 401(k) matching and other benefits expenses.  Compensation and benefits expense decreased by $4.7 million to $42.6 million for the six months ended June 30, 2025, compared to $47.2 million for the six months ended June 30, 2024, primarily driven by a reduction in Lima One sales commissions and salary expenses, lower accrual for cash bonus expense, and lower expense recognition from stock-based awards, partially offset by higher expense recognition from the accrual of severance costs.

Other general and administrative expenses are comprised of leasing and other office expenses, professional fees, insurance costs, board of directors fees, and miscellaneous expenses.  Other general and administrative expenses decreased by $1.9 million to $20.9 million for the six months ended June 30, 2025, compared to $22.8 million for the six months ended June 30, 2024, primarily as a result of lower costs associated with IT infrastructure, industry conferences and related travel expenses, lower professional fees, 

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and the waiver of certain expenses in the first quarter of 2025, partially offset by higher rental expenses for the new Lima One headquarters. 

Loan servicing and other related operating expenses are composed of non-recoverable advances, upfront costs on securitization and other fees related to our residential whole loan activities. The current period expenses are relatively consistent with the prior year period.

Selected Financial Ratios

The following table presents information regarding certain of our financial ratios at or for the dates presented:

At or for the Six Months EndedReturn on Average Total Assets (1)Return on Average Total Stockholders’ Equity (2)Dividend Payout Ratio (3)Total Average Stockholders’ Equity to Total Average Assets (4)Leverage Multiple (5)Recourse Leverage Multiple (6)June 30, 20251.30 %8.07 %1.3316.06 %5.2 1.8June 30, 20241.19 %6.85 %1.4917.36 %4.7 1.7

(1)Reflects annualized net income divided by average total assets.

(2)Reflects