Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 19

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 19
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  Interest rates and CPRs (which measure the amount of unscheduled principal prepayment on a bond or loan as a percentage of its unpaid balance) vary according to the type of investment, conditions in the financial markets and other factors, none of which can be predicted with any certainty.

The changes in average interest-earning assets and average interest-bearing liabilities and their related yields and costs are discussed in greater detail below under “Interest Income” and “Interest Expense.”

For the second quarter of 2025, our net interest spread and margin (including the impact of net Swap carry) were 1.98% and 2.73%, respectively, compared to a net interest spread and margin (including the impact of net Swap carry) of 1.84% and 2.63%, respectively, for the first quarter of 2025. Our net interest income increased by $3.7 million and was $61.3 million for the second quarter of 2025, compared to $57.5 million for the first quarter of 2025. For the second quarter of 2025, net interest income, which does not include the benefit of net Swap carry, includes higher net interest income from our Securities, at fair value portfolio of $2.4 million, compared to the first quarter of 2025, primarily due to an increase in interest income from a higher yield on, and average balances of, our securities portfolio, partially offset by an increase in expense from higher average balances of our securities repurchase agreements. Net interest income for the second quarter of 2025 also includes higher net interest income from our residential whole loan portfolio of $0.9 million, compared to the first quarter of 2025, primarily due to an increase in interest income from a higher yield on, and average balances of, our residential whole loan portfolio, partially offset by an increase in interest expense from higher average balances of our residential whole loan financing agreements and our securitized debt. In addition, the second quarter of 2025 had higher interest income of approximately $0.5 million from cash and cash equivalents and other interest earnings assets, as compared to the first quarter of 2025.

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Analysis of Net Interest Income

The following table sets forth certain information about the average balances of our assets and liabilities and their related yields and costs for the three months ended June 30, 2025 and March 31, 2025.  Average yields are derived by dividing annualized interest income by the average amortized cost of