Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 173

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 173
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2.63%, respectively, for the first quarter of 2025. Our net interest income increased by $3.7 million and was $61.3 million for the second quarter of 2025, compared to $57.5 million for the first quarter of 2025. For the second quarter of 2025, net interest income, which does not include the benefit of net Swap carry, includes higher net interest income from our Securities, at fair value portfolio of $2.4 million, compared to the first quarter of 2025, primarily due to an increase in interest income from a higher yield on, and average balances of, our securities portfolio, partially offset by an increase in expense from higher average balances of our securities repurchase agreements. Net interest income for the second quarter of 2025 also includes higher net interest income from our residential whole loan portfolio of $0.9 million, compared to the first quarter of 2025, primarily due to an increase in interest income from a higher yield on, and average balances of, our residential whole loan portfolio, partially offset by an increase in interest expense from higher average balances of our residential whole loan financing agreements and our securitized debt. In addition, the second quarter of 2025 had higher interest income of approximately $0.5 million from cash and cash equivalents and other interest earnings assets, as compared to the first quarter of 2025.

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Analysis of Net Interest Income

The following table sets forth certain information about the average balances of our assets and liabilities and their related yields and costs for the three months ended June 30, 2025 and March 31, 2025.  Average yields are derived by dividing annualized interest income by the average amortized cost of the related assets, and average costs are derived by dividing annualized interest expense by the average balance of the related liabilities, for the periods shown.  The yields and costs may include premium amortization and discount accretion which are considered adjustments to interest income or expense.

 Three Months Ended June 30, 2025Three Months Ended March 31, 2025 Average Balance InterestAverage Yield/CostAverage Balance InterestAverage Yield/Cost(Dollars in Thousands)  Assets:Interest-earning assets (1):Residential whole loans$9,030,301 $154,568 6.85 %$8,945,010 $151,310 6.77 %Securities, at fair value