Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 34

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 34
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.5 million for the nine months ended September 30, 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. The reversal of provision for the prior period primarily reflects the run-off of loans held at carrying value and minor changes to modeling assumptions.

Provision for Credit Losses on Other Assets

For the nine months ended September 30, 2025, we had no provision for credit losses on Other Assets. For the nine months ended September 30, 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.

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Other Income/(Loss), net

For the nine months ended September 30, 2025, Other Income/(Loss), net was $67.7 million, compared to an Other Income/(Loss), net of $92.5 million for the nine months ended September 30, 2024.  The components of Other Income/(Loss), net for the nine months ended September 30, 2025 and 2024 are summarized in the table below:

Nine Months Ended September 30,(In Thousands)20252024Net gain/(loss) on residential whole loans measured at fair value through earnings$129,284 $148,333 Impairment and other net gain/(loss) on securities and other portfolio investments45,828 15,310 Net gain/(loss) on real estate owned(4,119)3,112 Net gain/(loss) on derivatives used for risk management purposes(49,106)9,210 Net gain/(loss) on securitized debt measured at fair value through earnings(53,682)(108,377)Lima One mortgage banking income17,118 24,468 Net realized gain/(loss) on residential whole loans held at carrying value(882)418 Other, net(16,720)61 Other Income/(Loss), net$67,721 $92,535 

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.