Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 175

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 175
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 in changes in the amount of non-accrual loans, and prepayment speeds on our investments.  Interest rates and CPRs (which measure the amount of unscheduled principal prepayment on a bond or loan as a percentage of its unpaid balance) vary according to the type of investment, conditions in the financial markets and other factors, none of which can be predicted with any certainty.

The changes in average interest-earning assets and average interest-bearing liabilities and their related yields and costs are discussed in greater detail below under “Interest Income” and “Interest Expense.”

For the third quarter of 2025, our net interest spread and margin (including the impact of net Swap carry) were 1.86% and 2.57%, respectively, compared to a net interest spread and margin (including the impact of net Swap carry) of 1.98% and 2.73%, respectively, for the second quarter of 2025. Our net interest income decreased by $4.5 million and was $56.8 million for the third quarter of 2025, compared to $61.3 million for the second quarter of 2025. For the third quarter of 2025, net interest income, which does not include the benefit of net Swap carry, includes lower net interest income from our securities portfolio of $3.0 million, compared to the second quarter of 2025, primarily due to a decrease in interest income from lower yield on our securities portfolio and higher average balances of our securities repurchase agreements, partially offset by an increase in income from higher average balances of our securities portfolio. Net interest income for the third quarter of 2025 also includes lower net interest income from our residential whole loan portfolio of $1.3 million, compared to the second quarter of 2025, primarily due to an increase in interest expense from higher average balances of, and rates on, our securitized debt as well as a decrease in interest income from lower yield on our residential whole loan portfolio, partially offset by a decrease in interest expense from lower average balances of our residential whole loan financing agreements. 

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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 September 30, 2025 and June 30, 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