Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 121

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 121
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 at June 30, 2025 and December 31, 2024 are presented in the following table:(In Thousands)June 30, 2025December 31, 2024Deferred tax assets (DTAs):Net operating loss and tax credit carryforwards$100,910 $89,910 Unrealized mark-to-market, impairments and loss provisions22,700 18,004 Other realized / unrealized treatment differences(50,548)(45,234)Total deferred tax assets73,062 62,680 Less: valuation allowance(73,062)(62,680)Net deferred tax assets$— $— Realization of the Company’s DTAs at June 30, 2025 is dependent on several factors, including generating sufficient taxable income to utilize net operating loss (“NOL”) carryforwards and generating sufficient capital gains in future periods prior to the expiration of capital loss carryforwards.  The Company determines the extent to which realization of the deferred assets is not expected to be more likely than not and establishes a valuation allowance accordingly.No net deferred tax benefit was recorded by the Company for the three and six months ended June 30, 2025 and 2024, related to the net taxable losses in TRS entities, since a valuation allowance for the full amount of the associated deferred tax asset at the ends of those periods was recognized as its recovery was not considered more likely than not.  The related NOL carryforwards can be carried forward indefinitely, until fully utilized.  The Company’s estimate of net DTAs could change in future periods to the extent that actual or revised estimates of future taxable income change from current expectations.At June 30, 2025, the Company’s federal NOL carryforward from prior years was $354.0 million, which may be carried forward indefinitely.  If certain substantial changes in the Company’s ownership occur, there could be an annual limitation on the amount of the carryforwards that can be utilized.  The following table summarizes the Company’s income tax provision/(benefit) primarily recorded at the Company’s domestic TRS entities for the three and six months ended June 30, 2025 and 2024:Three Months EndedJune 30,Six Months EndedJune 30,(In Thousands)2025202420252024Current provision/(benefit)Federal$238 $270 $(486)$692 State— 76 (148)187 Total current provision/(benefit)238