Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 9

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 in Other assets on our consolidated balance sheets.  

At June 30, 2025, we held $1.8 billion of Securities, at fair value, including $1.7 billion of Agency MBS, $61.2 million of CRT securities and $22.5 million of Non-Agency MBS.  For the three months ended June 30, 2025, we purchased $131.1 million of 

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Agency MBS securities and $55.0 million of MSR-related assets were repaid in full. The net yield on our Securities, at fair value was 6.60% for the three months ended June 30, 2025, compared to 6.07% for the three months ended March 31, 2025.

For the three months ended June 30, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.8 million. The total allowance for credit losses recorded on residential whole loans held at carrying value at June 30, 2025 was $9.9 million.  

During the second quarter of 2025, we completed one securitization collateralized by $318.4 million UPB of Non-QM loans.  This securitization provided longer term, non-recourse, non-mark-to-market financing. During the quarter, interest rates exhibited significant volatility, and the yield curve steepened, as shorter duration rates ended the quarter lower while rates for longer maturities ended higher.  The net impact of interest rate fluctuations resulted in net mark-to-market gains on the GAAP value of our investment portfolio.  We continue to closely follow the actions of the Federal Reserve regarding the path and timing of changes in interest rates and the impact such rate changes would be expected to have on levels of inflation, the overall economic environment and our business. 

Our GAAP book value per common share was $13.12 as of June 30, 2025 and was $13.28 as of March 31, 2025. Economic book value per common share, a non-GAAP financial measure, was $13.69 as of June 30, 2025, a decrease from $13.84 as of March 31, 2025. The decreases in GAAP book value and Economic book value during the second quarter of 2025 primarily reflect dividends declared on our common stock in excess of GAAP comprehensive income. For additional information regarding the calculation of