Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 186

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 186
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 result of the higher floating rate payable on our Series C preferred stock.

Net Interest Income

For the nine months ended September 30, 2025, our net interest spread and margin were 1.89% and 2.64%, respectively, compared to a net interest spread and margin of 2.14% and 2.96%, respectively, for the nine months ended September 30, 2024.  Our net interest income increased by $23.7 million, or 15.6%, to $175.6 million for the nine months ended September 30, 2025 compared to net interest income of $151.9 million for the nine months ended September 30, 2024.  For the nine months ended September 30, 2025, net interest income, which does not include the benefit of net Swap carry, includes higher net interest from our securities portfolio of $16.2 million compared to the nine months ended September 30, 2024, primarily due to an increase in interest income from higher average balances of our securities portfolio, partially offset by an increase in interest expense from higher average balances of securities repurchase agreements. Net interest income for the nine months ended September 30, 2025 also includes higher net interest income from our residential whole loan portfolio of $13.1 million compared to the nine months ended September 30, 2024, primarily due to a decrease in interest expense as a result of lower average balances of, and rates on, our residential whole loan financing agreements, partially offset by an increase in interest expense from average balances of, and rates on, our securitized debt and a decrease in interest income from lower average balances of our residential whole loan portfolio. In addition, the nine months ended September 30, 2025 had $9.2 million lower interest income from other interest earnings assets and cash and cash equivalents when compared to the nine months ended September 30, 2024, as well as $3.0 million lower interest expense from our senior notes.

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Analysis of Net Interest Income

The following table sets forth certain information about the average balances of our assets and liabilities and their related yields and costs for the nine months ended September 30, 2025 and 2024.  Average yields are derived by dividing annualized interest income by the average amortized cost of the related assets, and average costs are derived by dividing annualized interest expense by the daily average balance of the related liabilities, for the periods shown