Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 103

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 103
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 securities available-for-sale(3,327)784 (4,361)2,612 Reclassification adjustment for MBS sales included in net income— (2,658)(226)(2,658)Change in AOCI from AFS securities(3,327)(1,874)(4,587)(46)Balance at end of period$4,889 $17,652 $4,889 $17,652  Interest Income on Securities, at Fair Value The following table presents the components of interest income on the Company’s Securities, at fair value:  Three Months EndedJune 30,Six Months EndedJune 30,(In Thousands)2025202420252024Agency MBSCoupon interest$22,856 $8,682 $43,776 $16,412 Effective yield adjustment (1)(2)60 (36)61 (51)Interest income$22,916 $8,646 $43,837 $16,361 Other MBSCoupon interest$1,435 $2,075 $2,963 $4,160 Effective yield adjustment (1)(2)371 44 498 74 Interest income$1,806 $2,119 $3,461 $4,234 Term notes backed by MSR collateralCoupon interest$696 $1,810 $1,789 $3,761 Effective yield adjustment (2) (3)3,360 1,054 4,361 2,265 Interest income$4,056 $2,864 $6,150 $6,026 (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.  (3)The effective yield adjustment for the second quarter of 2025 includes $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full during the quarter.

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Table of ContentsMFA FINANCIAL, INC.NOTES TO