Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 114

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 114
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 estimated fair value each period as a result of the Company’s fair value option election.  The fair value option was not elected for financing agreements held at carrying value.  Consequently, total financing agreements as presented reflects a summation of balances reported at fair and carrying value. At September 30, 2025, the Company had $65.6 million of agreements with mark-to-market collateral provisions held at fair value, $39.7 million of agreements with non-mark-to-market collateral provisions held at fair value, and $5.8 billion of securitized debt held at fair value, with amortized cost bases of $65.6 million, $39.7 million, and $5.8 billion, respectively.  At December 31, 2024, the Company had $19.8 million of agreements with mark-to-market collateral provisions held at fair value, $284.8 million of agreements with non-mark-to-market collateral provisions held at fair value, and $5.2 billion of securitized debt held at fair value, with amortized cost bases of $19.8 million, $284.8 million, and $5.3 billion, respectively.  (2)Weighted average cost of funding reflects annualized quarter-to-date interest expense (inclusive of the amortization of deferred financing costs) divided by average balance for the financing agreements.  The cost of funding for the total financing agreements includes the impact of the net Swap carry (the difference between Swap interest income received and Swap interest expense paid) on the Company’s Swaps.  For the three months ended September 30, 2025, this decreased the overall funding cost by 65 basis points, and for the three months ended December 31, 2024, this decreased the overall funding cost by 107 basis points. The Company does not allocate the impact of the net Swap carry by type of financing agreement.  (3)Up to $5 million of the unpaid principal balance is subject to a 60-day call period at the counterparty’s option.

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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2025

The following table presents maturities with respect to the Company’s financing agreements with mark-to-market and non-mark-to-market collateral provisions:  As of September 30, 2025Unpaid Principal Balance