Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 24

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 24
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 of our securities repurchase agreements and securitized debt, as well as an increase in the rate on our securitized debt, partially offset by lower average balance of, and rates on, residential whole loan financing agreements.

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

For the third quarter of 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.3 million compared to a provision for credit losses of $0.8 million for the second quarter of 2025. 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 third quarter of 2025 or the second quarter of 2025.

Other Income/(Loss), net

For the third quarter of 2025, Other Income/(Loss), net was $31.0 million, compared to Other Income/(Loss), net of $12.3 million for the second quarter of 2025.  The components of Other Income/(Loss), net for the third quarter of 2025 and second quarter of 2025 are summarized in the table below:

Three Months Ended(In Thousands)September 30, 2025June 30, 2025Net gain/(loss) on residential whole loans measured at fair value through earnings41,293 $33,611 Impairment and other net gain/(loss) on securities and other portfolio investments18,004 6,645 Net gain/(loss) on real estate owned300 (2,911)Net gain/(loss) on derivatives used for risk management purposes200 (18,251)Net gain/(loss) on securitized debt measured at fair value through earnings(24,646)(7,105)Lima One mortgage banking income5,594 6,087 Net realized gain/(loss) on residential whole loans held at carrying value— (343)Other, net(9,786)(5,483)Other Income/(Loss), net$30,959 $12,250 

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