Company: MFAN
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001055160-25-000004
Chunk: 431

Company: MFA FINANCIAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 431
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 to Securitized debt, at carrying value70.3 64.3 82.3 88.4 95.6 122.5 129.8 122.4 Stockholders’ Equity including fair value adjustments to Residential whole loans and Securitized debt held at carrying value (Economic book value)$1,421.8 $1,476.5 $1,463.7 $1,462.2 $1,484.9 $1,410.7 $1,541.3 $1,632.1 GAAP book value per common share$13.39 $13.77 $13.80 $13.80 $13.98 $13.48 $14.42 $15.15 Economic book value per common share$13.93 $14.46 $14.34 $14.32 $14.57 $13.84 $15.12 $16.02 Number of shares of common stock outstanding102.1 102.1 102.1 102.1 101.9 101.9 101.9 101.9 

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our consolidated financial statements include the accounts of all of our subsidiaries.  The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements, giving due consideration to materiality.  Actual results could differ from these estimates.

Our accounting policies are described in Note 2 to the consolidated financial statements, included under Item 8 of this Annual Report on Form 10-K.  Management believes the policies which more significantly rely on estimates and judgments to be as follows:

Fair Value Measurements - Residential Whole Loans

GAAP requires the categorization of fair value measurements into three broad levels that form a hierarchy.  The following describes the valuation methodologies used for our financial instrument investments categorized as level 3 in the valuation hierarchy, which require the most significant estimates and judgments to be made.

 We determine the fair value of our residential whole loans after considering valuations obtained from third-parties that specialize in providing valuations of residential mortgage loans.  The valuation approach applied generally depends on whether the loan is considered performing or non-performing at the date the valuation is performed.  For performing loans, estimates of fair value are derived using a discounted cash