Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 23

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 23
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2.34 %3.10 %2.57 %2.71 %2.54 %3.19 %3.24 %

(1)Reflects annualized interest income on Residential whole loans divided by average amortized cost of Residential whole loans.  Excludes servicing costs. 

(2)Reflects annualized interest expense divided by average balance of agreements with mark-to-market collateral provisions (repurchase agreements), agreements with non-mark-to-market collateral provisions, and securitized debt.  

(3)Reflects the difference between Swap interest income received and Swap interest expense paid on our Swaps. While we have not elected hedge accounting treatment for Swaps and, accordingly, net Swap carry is not presented in interest expense in our consolidated statement of operations, we believe it is appropriate to allocate net Swap carry by asset class to reflect the economic impact of our Swaps on the net interest spread shown in the table above. 

Interest Income

Interest income on our residential whole loans for the third quarter of 2025 decreased by $1.3 million, or 0.8%, to $153.3 million, compared to $154.6 million for the second quarter of 2025. This decrease primarily reflects a decrease in the yield to 6.81% for the third quarter of 2025 from 6.85% for the second quarter of 2025.

Interest income on our Securities, at fair value portfolio for the third quarter of 2025 decreased by $1.1 million, or 4%, to $27.7 million, compared to $28.8 million for the second quarter of 2025. This decrease reflects a decrease in the yield to 5.79% for the third quarter of 2025 from 6.60% for the second quarter of 2025, with the second quarter of 2025 including $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full, partially offset by a $169.8 million increase in the average balance of this portfolio to $1.9 billion for the third quarter of 2025 from the second quarter of 2025.

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Interest Expense

Our interest expense for the third quarter of 2025 increased by $1.9 million, or 1.5%, to $129.0 million, from $127.1 million for the second quarter of 2025. This increase primarily reflects an increase in the average balance