Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 7

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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 One, and approximately $472.8 million of Agency MBS. Given the increased clarity on the projected path of interest rates, lower market volatility, and the increased liquidity of our portfolio, we expect to increase the pace of asset acquisitions in the near term. During the quarter, we executed two securitizations and issued $672.8 million of securitized debt. During the quarter, we made further progress reducing portfolio delinquencies, resolving $222.8 million of previously delinquent loans and reduced overall 60+ day delinquency from 7.5% at the start of the year to 6.8% at September 30, 2025. 

During the quarter, we generated GAAP earnings per share (or EPS) of $0.36 per basic common share and Distributable earnings, a non-GAAP financial measure that excludes the impact of fair value changes and certain other items, of $0.20 per basic common share. At September 30, 2025, our GAAP book value was $13.13 and our Economic book value, a non-GAAP financial measure of our financial position that adjusts GAAP book value by the amount of unrealized mark-to-market gains or losses on our residential whole loans and securitized debt held at carrying value, was $13.69 per common share, each relatively unchanged when compared to June 30, 2025. 

For the quarter, our Lima One subsidiary originated Business purpose loans with a maximum unpaid principal balance of $260 million, an increase from the $217 million originated in the second quarter of 2025. We continued to make progress augmenting Lima One’s sales force and made key hires to Lima One’s leadership team in strategic growth areas. During the quarter, Lima One sold recently originated Single-family rental loans with an unpaid principal balance of $65.1 million to third parties and realized gains of $1.6 million. 

For additional information regarding the calculation of Distributable earnings and Economic book value per share, including a reconciliation to GAAP Net Income and GAAP book value per share, respectively, refer to “Reconciliation of GAAP and Non-GAAP Financial Measures” below.

Third quarter 2025 portfolio activity and impact on financial results

At September 30, 2025, our residential mortgage asset portfolio, which includes residential whole loans and REO, and Securities, at fair value, was approximately $11.2 billion, compared to $10.8 billion at June