Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 30

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 30
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 higher net interest income of $9.7 million, lower Operating and Other Expenses of $3.7 million, an increase in Other Income/(Loss), net of $2.1 million, and a benefit from income taxes compared to a provision in the prior year period.

Net Interest Income

For the three months ended March 31, 2025, our net interest spread and margin were 1.84% and 2.63%, respectively, compared to a net interest spread and margin of 2.06% and 2.88%, respectively, for the three months ended March 31, 2024.  Our net interest income increased by $9.7 million, or 20.3%, to $57.5 million for the three months ended March 31, 2025 compared to net interest income of $47.8 million for the three months ended March 31, 2024.  For the three months ended March 31, 2025, net interest income, which does not include the benefit of swap carry, includes higher net interest income from our residential whole loan portfolio of $5.6 million compared to the three months ended March 31, 2024, primarily due to lower average balances of, and rates on, our financing agreements and an increase in yields on our residential whole loan portfolio, partially offset by an increase in average balances of, and rates, on our securitized debt and lower average balances of our residential whole loan portfolio. Net interest income for the three months ended March 31, 2025 also includes higher net interest from our securities portfolio of $4.6 million compared to the three months ended March 31, 2024, primarily due to an increase in average balance of securities and lower rates on securities repurchase agreements, partially offset by and increase in average balances of securities repurchase agreements and lower yield on securities. 

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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 three months ended March 31, 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.  The yields and costs may include premium amortization and discount accretion which are considered adjustments to interest income or expense. 

 Three Months