Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 124

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 124
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 provision/(benefit)Federal$(2)$1,190 $(489)$1,882 State(99)328 (246)515 Total current provision/(benefit)(101)1,518 (735)2,397 Deferred provision/(benefit)Federal— — — 399 State— — — 117 Total deferred provision/(benefit)— — — 516 Total provision/(benefit)$(101)$1,518 $(735)$2,913 

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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2025

The following is a reconciliation of the statutory federal tax rate to the Company’s effective tax rate at September 30, 2025 and 2024:  Nine Months EndedSeptember 30,20252024Federal statutory rate21.0 %21.0 %Non-taxable REIT income (dividends paid deduction)(16.5)%(14.7)%Other differences in taxable income/(loss) from GAAP(13.7)%1.3 %State and local taxes(0.2)%(0.1)%Change in valuation allowance on DTAs8.7 %(5.5)%Effective tax rate(0.7)%2.0 %

9.    Commitments and Contingencies

 (a) Lease Commitments  The Company’s primary lease commitment relates to its corporate headquarters. For the three months ended September 30, 2025 and 2024, the Company recorded an expense in connection with this lease of approximately $1.4 million and $1.3 million, respectively, and $4.0 million and $4.1 million for the nine months ended September 30, 2025 and 2024, respectively. The original term specified in this lease is approximately fifteen years with a termination date of December 2036 and an option to renew for an additional five years.  Additionally, in December 2024, Lima One executed a new office lease for its headquarters in Greenville, South Carolina. Lima One moved into the new office space on July 15, 2025.  For the three and nine months ended September 30, 2025, the Company recorded an expense in connection with this lease of approximately $0.6 million and $1.5 million, respectively. The