Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 176

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 176
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1 million compared to a reversal of provision for credit losses of $0.5 million for the three months ended March 31, 2024. The provision for the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value.

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Provision for Credit Losses on Other Assets

For the three months ended March 31, 2025, we had no provision for credit losses on Other Assets. For the three months ended March 31, 2024, we recorded a provision for credit losses on Other Assets of $1.1 million, related to an uncollectible receivable from an unrelated third party servicer.

Other Income/(Loss), net

For the three months ended March 31, 2025, Other Income/(Loss), net was $24.5 million, compared to an Other Income/(Loss), net of $22.4 million for the three months ended March 31, 2024.  The components of Other Income/(Loss), net for the three months ended March 31, 2025 and 2024 are summarized in the table below:

Three Months Ended March 31,(In Thousands)20252024Net gain/(loss) on residential whole loans measured at fair value through earnings$54,380 $(11,513)Impairment and other net gain/(loss) on securities and other portfolio investments21,179 (4,776)Net gain/(loss) on real estate owned(1,508)991 Net gain/(loss) on derivatives used for risk management purposes(31,055)49,941 Net gain/(loss) on securitized debt measured at fair value through earnings(21,931)(22,462)Lima One mortgage banking income5,437 7,928 Net realized gain/(loss) on residential whole loans held at carrying value(539)418 Other, net(1,451)1,875 Other Income/(Loss), net$24,512 $22,402 

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.  Compensation and benefits expense decreased by $2.2