Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 178

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 178
---
)%(5.65)%(5.74)%(5.79)%Impact of net Swap carry (3)1.05 %1.08 %1.68 %1.71 %1.90 %1.79 %Net Interest Spread3.10 %2.57 %2.71 %2.54 %3.19 %3.24 %

(1)Reflects annualized interest income on Residential whole loans divided by average amortized cost of Residential whole loans.  Excludes servicing costs. 

(2)Reflects annualized interest expense divided by average balance of agreements with mark-to-market collateral provisions (repurchase agreements), agreements with non-mark-to-market collateral provisions, and securitized debt.  

(3)Reflects the difference between Swap interest income received and Swap interest expense paid on our Swaps. While we have not elected hedge accounting treatment for Swaps and, accordingly, net Swap carry is not presented in interest expense in our consolidated statement of operations, we believe it is appropriate to allocate net Swap carry by asset class to reflect the economic impact of our Swaps on the net interest spread shown in the table above. 

Interest Income

Interest income on our Securities, at fair value portfolio for the second quarter of 2025 increased by $4.1 million, or 17%, to $28.8 million, compared to $24.7 million for the first quarter of 2025. This increase includes $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full during the quarter, and overall reflects an increase in the yield to 6.60% for the second quarter of 2025 from 6.07% for the first quarter of 2025, and a $118.9 million increase in the average balance of this portfolio to $1.7 billion for the second quarter of 2025 from the first quarter of 2025.

Interest income on our residential whole loans for the second quarter of 2025 increased by $3.3 million, or 2.2%, to $154.6 million, compared to $151.3 million for the first quarter of 2025. This increase primarily reflects an increase in the yield to 6.85% for the second quarter of 2025 from 6.77% for the first quarter of 2025, and a $85.3 million increase in the average balance of this portfolio to