Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 99

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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quent commercial mortgage loans.  Each of these entities was determined to be a VIE but the Company was not determined to be the primary beneficiary; as a result, the investments in the entities are considered equity method investments.  Each entity accounts for its respective commercial REO property (the “Commercial REO”) similarly to the manner in which the Company accounts for its residential REO.  The entities generally do not own any other significant assets or carry any significant liabilities, except that two entities contain properties encumbered by third-party financing.  The properties foreclosed in 2024 are considered held-for-investment.

(b) Goodwill and Intangible Assets On July 1, 2021, the Company completed the acquisition of Lima One.  In connection with the acquisition of Lima One, the Company identified and recorded goodwill of $61.1 million and finite-lived intangible assets totaling $28.0 million.The amortization period for each of the finite lived intangible assets and the activity for the three months ended March 31, 2025 is summarized in the table below:(Dollars in Thousands)Carrying Value at December 31, 2024Amortization  Three months ended March 31, 2025Carrying Value at March 31, 2025Amortization Period (Years) (1)Trademarks / Trade Names$2,600 $(100)$2,500 10Customer Relationships1,000 (500)500 4Internally Developed Software1,200 (200)1,000 5Total Identified Intangibles$4,800 $(800)$4,000 (1) Amortization is calculated on a straight-line basis over the amortization period, except for Customer Relationships, where amortization is calculated based on expected levels of customer attrition. 

(c) Capital Contributions Made to Loan Origination Partners The Company has made investments in several loan originators as part of its strategy to be a reliable source of capital to select partners from whom the Company sources residential mortgage loans through both flow arrangements and bulk purchases.  At March 31, 2025, the carrying value of these investments (including adjustments for impairments or mark-to-market changes) was $17.5 million, including $2.4 million of common equity (including partnership interests) and $15.1 million of preferred equity.During the three months ended March 31, 2025 and 2024, there were no impairment charges recorded by the Company