Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 48

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 48
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ies and make margin calls (“reverse margin calls”) to our counterparties.  Margin calls and reverse margin calls, which requirements vary over time, may occur daily between us and any of our counterparties when the value of collateral pledged changes from the amount contractually required.  The value of securities pledged as collateral fluctuates reflecting changes in: (i) the face (or par) value of our assets; (ii) market interest rates and/or other market conditions; and (iii) the market value of our Swaps.  Margin calls and reverse margin calls are satisfied when we pledge or receive additional collateral in the form of additional assets and/or cash.

The table below summarizes our margin activity with respect to our repurchase agreement financings and derivative hedging instruments for the quarterly periods presented:

 Collateral Pledged for Margin ActivityCash and SecuritiesReceived for Reverse MarginNet Assets Received/(Pledged) for Margin ActivityFor the Quarter Ended (1)Fair Value of Securities PledgedCash PledgedAggregate AssetsPledged for Margin(In Thousands)     September 30, 2025$34,529 $18,697 $53,226 $62,671 $9,445 June 30, 202563,384 10,109 73,493 81,349 7,856 March 31, 202515,676 18,471 34,147 37,890 3,743 December 31, 202430,607 30,806 61,413 36,992 (24,421)September 30, 20247,368 7,076 14,444 15,361 917 June 30, 2024— 6,795 6,795 17,348 10,553 March 31, 202417,379 3,358 20,737 16,514 (4,223)

(1) Excludes variation margin payments on our cleared Swaps which are treated as a legal settlement of the exposure under the Swap contract.

We are subject to various financial covenants under our financing agreements, which include minimum liquidity and net worth requirements, net worth decline limitations and maximum debt-to-equity ratios. We were in compliance with all financial covenants as of September 30, 2025.

During the nine months ended September 30, 2025, we paid