Company: MFAN
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001055160-25-000004
Chunk: 93

Company: MFA FINANCIAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 5
Chunk 93
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 Other realized / unrealized treatment differences(45,234)(34,923)Total deferred tax assets62,680 72,360 Less: valuation allowance(62,680)(72,360)Net deferred tax assets$— $— Realization of the Company’s DTAs at December 31, 2024 is dependent on several factors, including generating sufficient taxable income to utilize net operating loss (“NOL”) carryforwards and generating sufficient capital gains in future periods prior to the expiration of capital loss carryforwards.  The Company determines the extent to which realization of the deferred assets is not expected to be more likely than not and establishes a valuation allowance accordingly.No net deferred tax benefit was recorded by the Company for the years ended December 31, 2024 and 2023, related to the net taxable losses in TRS entities, since a valuation allowance for the full amount of the associated deferred tax asset at the ends of those periods was recognized as its recovery was not considered more likely than not.  The related NOL carryforwards can be carried forward indefinitely, until fully utilized.  The Company’s estimate of net DTAs could change in future periods to the extent that actual or revised estimates of future taxable income change from current expectations.

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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSDecember 31, 2024

At December 31, 2024, the Company’s federal NOL carryforward from prior years was $360.4 million, which may be carried forward indefinitely.  If certain substantial changes in the Company’s ownership occur, there could be an annual limitation on the amount of the carryforwards that can be utilized.  The following table summarizes the Company’s income tax provision/(benefit) primarily recorded at the Company’s domestic TRS entities for the years ended December 31, 2024, 2023, and 2022:For the Year Ended(In Thousands)December 31, 2024December 31, 2023December 31, 2022Current provision/(benefit)Federal$417 $(21)$(1,309)State26 — 263 Total current provision/(benefit)443 (21)(1,046)Deferred provision/(benefit)Federal— 251 166 State— 48 29 Total deferred provision/(benefit)— 299 195 Total provision/(benefit)$443