Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 168

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 168
---
 credit losses on Other Assets for the first quarter of 2025 or the fourth quarter of 2024.

68  

Other Income/(Loss), net

For the first quarter of 2025, Other Income/(Loss), net was $24.5 million, compared to Other Income/(Loss), net of $(7.1) million for the fourth quarter of 2024.  The components of Other Income/(Loss), net for the first quarter of 2025 and fourth quarter of 2024 are summarized in the table below:

Three Months Ended(In Thousands)March 31, 2025December 31, 2024Net gain/(loss) on residential whole loans measured at fair value through earnings54,380 $(102,339)Impairment and other net gain/(loss) on securities and other portfolio investments21,179 (26,179)Net gain/(loss) on real estate owned(1,508)24 Net gain/(loss) on derivatives used for risk management purposes(31,055)69,293 Net gain/(loss) on securitized debt measured at fair value through earnings(21,931)43,564 Lima One mortgage banking income5,437 8,477 Net realized gain/(loss) on residential whole loans held at carrying value(539)— Other, net(1,451)52 Other Income/(Loss), net$24,512 $(7,108)

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 increased by $5.2 million to $23.3 million for the first quarter of 2025, compared to $18.0 million for the fourth quarter of 2024, primarily driven by the accelerated recognition of stock-based compensation in the first quarter of 2025 related to awards made to retirement eligible employees in January 2025.  

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 of $10.3 million for the first quarter of 2025 were relatively unchanged when compared to $