Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 245

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 245
---
2025 and 2024, respectively.(3)Includes $10.6 million of loans that were assessed for credit losses based on a collateral dependent methodology as of March 31, 2024.Estimates of credit losses under credit losses on financial instruments (“CECL”) are highly sensitive to changes in assumptions and current economic conditions have increased the difficulty of accurately forecasting future conditions.The carrying value of Residential whole loans on nonaccrual status as of March 31, 2025 and December 31, 2024 was $627.0 million and $638.3 million, respectively.  During the three months ended March 31, 2025, the Company recognized $2.8 million of interest income on loans on nonaccrual status, including $1.8 million on its portfolio of loans which were non-performing at acquisition. At March 31, 2025 and December 31, 2024, there were approximately $32.6 million and $38.7 million, respectively, of loans held at carrying value on nonaccrual status that did not have an associated allowance for credit losses because they were determined to be collateral dependent and the estimated fair value of the related collateral exceeded the carrying value of each loan, respectively.  During the three months ended March 31, 2025, the Company granted two loan modifications in its carrying value loan portfolio, both with term extensions, and one of them including an interest rate reduction. The combined increase in average life for the loans with term extensions was 196 months. The interest rate reduction was 1.25%. As of March 31, 2025, the carrying value of these loans was approximately $0.16 million.  As of March 31, 2025, these loans were not greater than 30 days delinquent. During the past 12 months, the Company has granted four loan modifications in its carrying value loan portfolio which gave borrowers term extensions, with one of them including an interest rate reduction. The average increase in weighted average life was 131 months, and the interest rate reduction was 1.25%.  As of March 31, 2025, the carrying value of these loans was approximately $0.26 million. As of March 31, 2025, these loans were not greater than 30 days delinquent.

19  

Table of ContentsMFA FINANCIAL, INC.NOTES TO THE UNAUDITED CONSOLIDATED FIN