Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 126

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 126
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-term commitments to originate mortgage loans; such commitments were not significant at September 30, 2025.(d) GuaranteeIn connection with one of its investments in a loan origination partner, as of September 30, 2025, the Company has guaranteed up to $51 million of such investee’s warehouse financing. As of September 30, 2025, the Company has not recorded a loss in connection with this guarantee.(e) LitigationThe Company reserves for contingent liabilities when it is determined that a liability is probable and reasonably estimable. Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, the Company will not incur material costs.

The Company is not presently named as defendant in any material litigation arising outside the ordinary course of business. However, the Company is from time to time involved in litigation arising in the course of its business activities. During the three months ended September 30, 2025, the Company recorded an aggregate litigation reserve totaling $1.2 million within Other Income/(Loss), net and estimates additional reasonably possible losses of up to $6.6 million. 

10.    Stockholders’ Equity 

 (a) Preferred Stock  7.50% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”)On April 15, 2013, the Company completed the issuance of 8.0 million shares of its Series B Preferred Stock with a par value of $0.01 per share, and a liquidation preference of $25.00 per share plus accrued and unpaid dividends, in an underwritten public offering. On August 15, 2025, the Company filed an articles supplementary to the amended and restated articles of incorporation, which increased the number of authorized shares of Series B Preferred Stock to 12.1 million from 8.1 million. Also on August 15, 2025, the Company entered into a distribution agreement pursuant to the terms of which the Company may, from time to time, offer and sell shares of its preferred stock having an aggregate gross sales price of up to $100.0 million. During the three months ended September 30, 2025, approximately 72,000 shares of Series B Preferred Stock were issued for gross proceeds of approximately $1.5 million.The Company’s Series B Preferred Stock is entitled to receive a dividend at a rate of 7.50% per