Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 35

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 35
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  Compensation and benefits expense decreased by $8.9 million to $60.8 million for the nine months ended September 30, 2025, compared to $69.6 million for the nine months ended September 30, 2024, primarily driven by lower expense recognition from cash bonus and stock-based awards, a reduction in Lima One sales commissions and salary expenses, and lower accrual of severance costs.

Other general and administrative expenses are comprised of leasing and other office expenses, professional fees, insurance costs, board of directors fees, and miscellaneous expenses.  Other general and administrative expenses decreased by $2.6 million to $31.7 million for the nine months ended September 30, 2025, compared to $34.3 million for the nine months ended September 30, 2024, primarily as a result of lower expense recognized on the disposal of fixed assets at Lima One, as well as lower costs associated with IT infrastructure, industry conferences and related travel expenses, and lower professional fees, partially offset by higher rental expense for the new Lima One headquarters.

Loan servicing and other related operating expenses are composed of non-recoverable advances, upfront costs on securitization and other fees related to our residential whole loan activities. These expenses increased compared to the prior year period by approximately $1.8 million, or 7.38%, primarily due to higher expenses recognized related to property preservation, taxes, insurance, and certain other non-recoverable carrying costs on our residential whole loan and REO portfolios.

Selected Financial Ratios

The following table presents information regarding certain of our financial ratios at or for the dates presented:

At or for the Nine Months EndedReturn on Average Total Assets (1)Return on Average Total Stockholders’ Equity (2)Dividend Payout Ratio (3)Total Average Stockholders’ Equity to Total Average Assets (4)Leverage Multiple (5)Recourse Leverage Multiple (6)September 30, 20251.41 %8.86 %1.2115.89 %5.5 1.9September 30, 20241.37 %7.93 %1.2417.32 %4.8 1.8

(1)Reflects annualized net income divided by average total assets.

(2)Reflects annualized net income divided by average total stockholders’ equity.

(3)Reflects dividends declared per share of common stock divided by earnings per