Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 26

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 26
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 our securities repurchase agreements and higher average balance of, and rates on, our securitized debt. 

Provision for Credit Losses on Residential Whole Loans Held at Carrying Value

For the first quarter of 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.1 million compared to a provision for credit losses of $0.4 million for the fourth quarter of 2024. The provision recorded in the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value.

Provision for Credit Losses on Other Assets

We had no provision for credit losses on Other Assets for the first quarter of 2025 or the fourth quarter of 2024.

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Other Income/(Loss), net

For the first quarter of 2025, Other Income/(Loss), net was $24.5 million, compared to Other Income/(Loss), net of $(7.1) million for the fourth quarter of 2024.  The components of Other Income/(Loss), net for the first quarter of 2025 and fourth quarter of 2024 are summarized in the table below:

Three Months Ended(In Thousands)March 31, 2025December 31, 2024Net gain/(loss) on residential whole loans measured at fair value through earnings54,380 $(102,339)Impairment and other net gain/(loss) on securities and other portfolio investments21,179 (26,179)Net gain/(loss) on real estate owned(1,508)24 Net gain/(loss) on derivatives used for risk management purposes(31,055)69,293 Net gain/(loss) on securitized debt measured at fair value through earnings(21,931)43,564 Lima One mortgage banking income5,437 8,477 Net realized gain/(loss) on residential whole loans held at carrying value(539)— Other, net(1,451)52 Other Income/(Loss), net$24,512 $(7,108)

Operating and Other Expense

Operating and other expenses are composed of compensation and benefits, other general and administrative, loan servicing and other related operating expenses and amortization of Lima One intangible assets.

Compensation and benefits expenses are composed of salaries, annual bonus, stock-based awards, long-term incentives, Lima One sales commissions, related payroll taxes, medical insurance, 401(k) matching and other benefits expenses