Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 182

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 182
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 or the second quarter of 2025.

Other Income/(Loss), net

For the third quarter of 2025, Other Income/(Loss), net was $31.0 million, compared to Other Income/(Loss), net of $12.3 million for the second quarter of 2025.  The components of Other Income/(Loss), net for the third quarter of 2025 and second quarter of 2025 are summarized in the table below:

Three Months Ended(In Thousands)September 30, 2025June 30, 2025Net gain/(loss) on residential whole loans measured at fair value through earnings41,293 $33,611 Impairment and other net gain/(loss) on securities and other portfolio investments18,004 6,645 Net gain/(loss) on real estate owned300 (2,911)Net gain/(loss) on derivatives used for risk management purposes200 (18,251)Net gain/(loss) on securitized debt measured at fair value through earnings(24,646)(7,105)Lima One mortgage banking income5,594 6,087 Net realized gain/(loss) on residential whole loans held at carrying value— (343)Other, net(9,786)(5,483)Other Income/(Loss), net$30,959 $12,250 

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 decreased by $1.1 million to $18.2 million for the third quarter of 2025, compared to $19.3 million for the second quarter of 2025, primarily as a result of the inclusion of severance expenses in the second quarter of 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 $10.8 million for the third quarter of 2025 remained relatively consistent when compared to $10.6 million for the second quarter of 2025.

Loan servicing and other related operating expenses are composed of non-recoverable advances, upfront costs