Company: MFAN
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001055160-25-000004
Chunk: 330

Company: MFA FINANCIAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 4
Chunk 330
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/NPL loans. For the quarter ended September 30, 2023, this decreased the overall funding cost by 143 basis points for our Residential whole loans, 113 basis points for our Business purpose loans, 176 basis points for our Non-QM loans, and 111 basis points for our Legacy RPL/NPL loans. For the quarter ended June 30, 2023, this increased the overall funding cost by 144 basis points for our Residential whole loans, 110 basis points for our Business purpose loans, 175 basis points for our Non-QM loans, and 126 basis points for our Legacy RPL/NPL loans. For the quarter ended March 31, 2023, this increased the overall funding cost by 127 basis points for our Residential whole loans, 100 basis points for our Business purpose loans, 161 basis points for our Non-QM loans, and 107 basis points for our Legacy RPL/NPL loans.

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The following table presents the components of the net interest spread earned on our Securities for the quarterly periods presented:

Securities, at fair valueQuarter EndedNet Yield (1)Cost of Funding (2)Net Interest Rate SpreadDecember 31, 20246.05 %3.34 %2.71 %September 30, 20246.48 3.94 2.54 June 30, 20247.03 3.84 3.19 March 31, 20247.24 4.00 3.24 December 31, 20237.20 3.75 3.45 September 30, 20237.38 3.92 3.46 June 30, 20237.67 4.29 3.38 March 31, 20238.76 4.52 4.24 

(1)Reflects annualized interest income divided by average amortized cost. 

(2)Reflects annualized interest expense divided by average balance of repurchase agreements. Cost of funding shown in the table above includes the impact of the net carry (the difference between swap interest income received and swap interest expense paid) on our Swaps that is allocated to the financing of our Securities, at fair value.  For the quarter ended December 31, 2024, this decreased the overall funding cost by 168 basis points. For the quarter ended September 30, 2024,