Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 36

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 36
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824 (7,618)Net gain/(loss) on real estate owned(4,419)2,871 Net gain/(loss) on derivatives used for risk management purposes(49,306)66,028 Net gain/(loss) on securitized debt measured at fair value through earnings(29,036)(33,104)Lima One mortgage banking income11,524 15,547 Net realized gain/(loss) on residential whole loans held at carrying value(882)418 Other, net(6,934)3,192 Other Income/(Loss), net$36,762 $52,251 

Operating and Other Expense

Operating and other expenses are composed of compensation and benefits, other general and administrative, loan servicing and other related operating expenses and amortization of Lima One intangible assets.

Compensation and benefits expenses are composed of salaries, annual bonus, stock-based awards, long-term incentives, Lima One sales commissions, related payroll taxes, medical insurance, 401(k) matching and other benefits expenses.  Compensation and benefits expense decreased by $4.7 million to $42.6 million for the six months ended June 30, 2025, compared to $47.2 million for the six months ended June 30, 2024, primarily driven by a reduction in Lima One sales commissions and salary expenses, lower accrual for cash bonus expense, and lower expense recognition from stock-based awards, partially offset by higher expense recognition from the accrual of severance costs.

Other general and administrative expenses are comprised of leasing and other office expenses, professional fees, insurance costs, board of directors fees, and miscellaneous expenses.  Other general and administrative expenses decreased by $1.9 million to $20.9 million for the six months ended June 30, 2025, compared to $22.8 million for the six months ended June 30, 2024, primarily as a result of lower costs associated with IT infrastructure, industry conferences and related travel expenses, lower professional fees, 

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and the waiver of certain expenses in the first quarter of 2025, partially offset by higher rental expenses for the new Lima One headquarters. 

Loan servicing and other related operating expenses are composed of non-recoverable advances, upfront costs on securitization and other fees related to our residential whole loan activities. The current period expenses are relatively consistent with the prior year period.

Selected Financial Ratios

The following table presents information regarding certain of our financial ratios at or