Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 161

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 161
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) of 1.99% and 2.76%, respectively, for the fourth quarter of 2024. Our net interest income increased by $6.7 million and was $57.5 million for the first quarter of 2025, compared to $50.8 million for the fourth quarter of 2024. For the first quarter of 2025, net interest income, which does not include the benefit of swap carry, includes higher net interest income from our residential whole loan portfolio of $4.4 million, compared to the fourth quarter of 2024, primarily due to lower average balances of, and rates on, our financing agreements and an increase in yields on our residential whole loan portfolio, partially offset by lower average balance of our residential whole loan portfolio and higher average balances of and rates on our securitized debt. Net interest income for the first quarter of 2025 also includes higher net interest income from our Securities, at fair value portfolio of $3.4 million, compared to the fourth quarter of 2024, primarily due to higher average balances of our securities portfolio and lower rates on securities repurchase agreements, partially offset by higher average balances of our securities repurchase agreements. In addition, the first quarter of 2025 had lower interest income of approximately $1.3 million from cash and cash equivalents and other interest earnings assets, as compared to the fourth quarter of 2024.

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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 March 31, 2025 and December 31, 2024.  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 expense by the average balance of the related liabilities, for the periods shown.  The yields and costs may include premium amortization and discount accretion which are considered adjustments to interest income or expense.

 Three Months Ended March 31, 2025Three Months Ended December 31, 2024 Average Balance InterestAverage Yield/CostAverage Balance InterestAverage Yield/Cost(Dollars in Thousands)  Assets:Interest-earning assets (1):Residential whole loans$8,945,010 $151,310 6.77 %$9,186,036 $152,768 6.65 %Securities, at fair