Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 114

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 114
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 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.At March 31, 2025, the Company’s federal NOL carryforward from prior years was $354.0 million, which may be carried forward indefinitely.  If certain substantial changes in the Company’s ownership occur, there could be an annual limitation on the amount of the carryforwards that can be utilized.  The following table summarizes the Company’s income tax provision/(benefit) primarily recorded at the Company’s domestic TRS entities for the three months ended March 31, 2025 and 2024:Three Months EndedMarch 31,(In Thousands)20252024Current provision/(benefit)Federal$(724)$422 State(148)111 Total current provision/(benefit)(872)533 Deferred provision/(benefit)Federal— 399 State— 117 Total deferred provision/(benefit)— 516 Total provision/(benefit)$(872)$1,049 The following is a reconciliation of the statutory federal tax rate to the Company’s effective tax rate at March 31, 2025 and 2024:  Three Months EndedMarch 31,20252024Federal statutory rate21.0 %21.0 %Non-taxable REIT income (dividends paid deduction)(19.7)%(24.5)%Other differences in taxable income/(loss) from GAAP(11.4)%21.0 %State and local taxes(0.3)%(0.2)%Change in valuation allowance on DTAs8.2 %(13.9)%Effective tax rate(2.2)%3.4 %

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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2025

9.    Commitments and Contingencies

 (a) Lease Commitments  The Company’s primary lease commitment relates to its corporate headquarters.  For the three months ended March 31, 2025 and 2024, the Company recorded an expense in connection with this lease of approximately $1.3 million and $1.3 million, respectively. The original term specified in this lease is approximately fifteen years with a termination date of December 2036 and an option to renew for an additional five years.  The Company recognized total lease