Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 94

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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 $19,612 Current provision/(reversal)(326)978 (317)(1,414)(1,079)Write-offs— (5,011)(81)(170)(5,262)Allowance for credit losses at June 30, 2024$1,355 $609 $1,301 $10,006 $13,271 Current provision/(reversal)387 205 48 (2,582)(1,942)Write-offs— (439)(181)(52)(672)Allowance for credit losses at September 30, 2024$1,742 $375 $1,168 $7,372 $10,657 (1)Includes $3.8 million and $18.9 million of loans that were assessed for credit losses based on a collateral dependent methodology as of September 30, 2025 and 2024, respectively.(2)Includes $32.1 million and $39.3 million of loans that were assessed for credit losses based on a collateral dependent methodology as of September 30, 2025 and 2024, respectively.Estimates of credit losses under credit losses on financial instruments (“CECL”) are highly sensitive to changes in assumptions and current economic conditions have increased the difficulty of accurately forecasting future conditions.The carrying value of Residential whole loans on nonaccrual status as of September 30, 2025 and December 31, 2024 was $568.0 million and $638.3 million, respectively. During the three and nine months ended September 30, 2025, the Company recognized $2.6 million and $9.8 million, respectively, of interest income on loans on nonaccrual status, including $1.7 million and $5.5 million, respectively, on its portfolio of loans which were non-performing at acquisition. At September 30, 2025 and December 31, 2024, there were approximately $28.7 million and $38.7 million, respectively, of loans held at carrying value on nonaccrual status that did not have an associated allowance for credit losses because they were determined to be collateral dependent and the estimated fair value of the related collateral exceeded the carrying value of each loan, respectively.  During the three months ended September 30, 2025, the Company granted two loan modifications in its carrying value loan portfolio, both with term extensions.