Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 7

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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 existing Transitional loans by Lima One, and approximately $131 million of Agency MBS. During the quarter, we executed one securitization and issued $291 million of securitized debt. 

During the quarter, we generated GAAP earnings per share (or EPS) of $0.22 per basic common share and Distributable earnings, a non-GAAP financial measure that excludes the impact of fair value changes and certain other items, of $0.24 per basic common share. At June 30, 2025, our GAAP book value was $13.12 and our Economic book value, a non-GAAP financial measure of our financial position that adjusts GAAP book value by the amount of unrealized mark-to-market gains or losses on our residential whole loans and securitized debt held at carrying value, was $13.69 per common share, each representing decreases of 1% as compared to March 31, 2025. 

For the quarter, our Lima One subsidiary originated Business purpose loans with a maximum unpaid principal balance of $217 million, an increase from the $213 million originated in the first quarter of 2025. We continued to make progress augmenting Lima One’s sales force and enhancing Lima One’s technology platform. During the quarter, Lima One sold recently originated Single-family rental loans with an unpaid principal balance of $37.4 million to third parties and realized gains of $1.1 million. 

For additional information regarding the calculation of Distributable earnings and Economic book value per share, including a reconciliation to GAAP Net Income and GAAP book value per share, respectively, refer to “Reconciliation of GAAP and Non-GAAP Financial Measures” below.

Second quarter 2025 portfolio activity and impact on financial results

At June 30, 2025, our residential mortgage asset portfolio, which includes residential whole loans and REO, and Securities, at fair value, was approximately $10.8 billion, compared to $10.7 billion at March 31, 2025.  

The following table presents the activity for our residential mortgage asset portfolio for the three months ended June 30, 2025:

(In Millions)March 31, 2025Runoff (1)Acquisitions & Originations (2)Other (3)June 30, 2025ChangeResidential whole loans and REO$8,915 $(678)$745 $(27)$8,955 $40 Securities, at fair value1