Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 167

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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-Agency MBS.  For the three months ended September 30, 2025, we purchased $472.8 million of Agency MBS securities. The net yield on our Securities, at fair value was 5.79% for the three months ended September 30, 2025, compared to 6.60% for the three months ended June 30, 2025.

For the three months ended September 30, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.3 million. The total allowance for credit losses recorded on residential whole loans held at carrying value at September 30, 2025 was $10.1 million.  

During the third quarter of 2025, we completed two securitizations collateralized by $721.5 million UPB of Non-QM loans.  This securitization provided longer term, non-recourse, non-mark-to-market financing. During the quarter, interest rates exhibited continued volatility and the yield curve steepened, as shorter duration rates declined more than longer maturities.  The net impact of interest rate fluctuations resulted in net mark-to-market gains on the GAAP value of our investment portfolio.  We continue to closely follow the actions of the Federal Reserve regarding the path and timing of changes in interest rates and the impact such rate changes would be expected to have on levels of inflation, the overall economic environment and our business. 

Our GAAP book value per common share was $13.13 as of September 30, 2025 and was $13.12 as of June 30, 2025. Economic book value per common share, a non-GAAP financial measure, was $13.69 as of September 30, 2025, flat from $13.69 as of June 30, 2025.  GAAP book value and Economic book value during the third quarter of 2025 were relatively unchanged, as dividends declared on our common stock matched our GAAP comprehensive income. For additional information regarding the calculation of Economic book value per share, including a reconciliation to GAAP book value per share, refer to “Reconciliation of GAAP and Non-GAAP Financial Measures” below. 

For more information regarding market factors which impact our portfolio, see Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and Item 3. “Quantitative and