Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 188

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 188
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 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 six months ended June 30, 2025 increased by $26.8 million to $53.4 million from $26.6 million for the six months ended June 30, 2024. This increase includes $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full during the quarter, and overall primarily reflects an increase in the average amortized cost of the portfolio of $939.1 million from purchases of Agency MBS, partially offset by a decrease in the net yield on our Securities, at fair value portfolio to 6.34% for the six months ended June 30, 2025, compared to 7.13% for the six months ended June 30, 2024.

Interest income on our residential whole loans for the six months ended June 30, 2025 decreased by $17.5 million, or 5.4%, to $305.9 million, compared to $323.4 million for the six months ended June 30, 2024.  This decrease primarily reflects a $0.6 billion decrease in the average balance of this portfolio to $9.0 billion for the six months ended June 30, 2025 from $9.5 billion for the six months ended June 30, 2024.

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Interest Expense

Our interest expense for the six months ended June 30, 2025 decreased by $12.3 million, or 4.7%, to $250.0 million, from $262.4 million for the six months ended June 30, 2024.  This decrease primarily reflects a decrease in the average balances of, and rates, on our financing agreements on residential whole loans, $5.5 million of lower interest expense related to our 6.25% convertible senior notes which matured and were paid in full in June 2024, and lower financing rates on our securities repurchase agreements, partially offset by higher average balances of, and rates on, our securitized debt, higher average balances of our securities repurchase agreements and $2.5 million of higher interest expense related to our 9.00% and 8.875% senior notes issued in April and January 2024, respectively.

Provision for Credit