Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 160

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 160
---
 basis, excluding investments for which the fair value option has been elected or for which specialized loan accounting is otherwise applied, we assess our ability and intent to continue to hold each asset and, as part of this process, we monitor our investments in securities that are designated as AFS for impairment.  A change in our ability and/or intent to continue to hold any of these securities that are in an unrealized loss position, or a deterioration in the underlying characteristics of these securities, could result in our recognizing future impairment charges or a loss upon the sale of any such security.  

Our residential mortgage investments have longer-term contractual maturities than our non-securitization related financing liabilities, and the interest rates we pay on our non-securitization related financings will typically change at a faster pace than the interest rates we earn on our investments.  In order to reduce this interest rate risk exposure, we may enter into derivative instruments, which currently include Swaps.  

60  

Recent Market Conditions and Our Strategy

During the second quarter of 2025, fixed-income markets saw significant volatility driven by a combination of substantial changes to U.S. trade policy, rising geopolitical risks, a downgrade of U.S. sovereign debt, increasing expectations of deficit spending and inflation, and several other significant macroeconomic developments. Despite these challenges, fixed-income markets delivered positive returns by quarter-end with the Bloomberg US Aggregate Index returning 1.21% for the second quarter, and the 10-year Treasury rate effectively unchanged from the beginning of the quarter. During the quarter, we were able to add $876 million of our target assets at attractive yields. These additions included approximately $503 million of Non-QM loans, approximately $242 million of funded originations of Business purpose loans and draws on existing Transitional loans by Lima One, and approximately $131 million of Agency MBS. During the quarter, we executed one securitization and issued $291 million of securitized debt. 

During the quarter, we generated GAAP earnings per share (or EPS) of $0.22 per basic common share and Distributable earnings, a non-GAAP financial measure that excludes the impact of fair value changes and certain other items, of $0.24 per basic common share. At June 30, 2025, our GAAP book value was $13.12 and our Economic book value, a non-GAAP financial measure of our financial position that adjusts GAAP book value by the amount of unrealized mark-to-market gains or losses on our residential whole