Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 255

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 255
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 Interest income$1,655 $2,115 Term notes backed by MSR collateralCoupon interest$1,093 $1,951 Effective yield adjustment (2)1,002 1,211 Interest income$2,095 $3,162 (1)Includes amortization of premium paid net of accretion of purchase discount.  Interest income is recorded at an effective yield, which reflects net premium amortization/accretion based on actual prepayment activity. 

(2)The effective yield adjustment is the difference between the net income calculated using the net yield less the current coupon yield.  The net yield may be based on management’s estimates of the amount and timing of future cash flows or in the instrument’s contractual cash flows, depending on the relevant accounting standards.  

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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2025

5.    Other Assets 

The following table presents the components of the Company’s Other assets at March 31, 2025 and December 31, 2024:(In Thousands)March 31, 2025December 31, 2024REO$130,634 $130,854 Commercial REO21,158 18,373 Goodwill61,076 61,076 Intangibles, net (1)4,000 4,800 Capital contributions made to loan origination partners17,546 16,793 Commercial loans7,435 7,435 Interest receivable104,521 104,395 Other loan related receivables22,447 21,643 Lease right-of-use asset (2)35,709 35,461 Other67,043 58,725 Total Other Assets$471,569 $459,555 (1) Net of aggregate accumulated amortization of $24.0 million and $23.2 million as of March 31, 2025 and December 31, 2024, respectively.  (2) An estimated incremental borrowing rate of 7.5% was used in connection with the Company’s primary operating lease (see Notes 2 and 9).

(a) Real Estate Owned and Commercial REO The following table summarizes the aggregate carrying value of REO properties by loan source prior to foreclosure proceeding or from completion of a deed-in-lieu of foreclosure or similar legal agreement