Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 192

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 192
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2025, Other Income/(Loss), net was $67.7 million, compared to an Other Income/(Loss), net of $92.5 million for the nine months ended September 30, 2024.  The components of Other Income/(Loss), net for the nine months ended September 30, 2025 and 2024 are summarized in the table below:

Nine Months Ended September 30,(In Thousands)20252024Net gain/(loss) on residential whole loans measured at fair value through earnings$129,284 $148,333 Impairment and other net gain/(loss) on securities and other portfolio investments45,828 15,310 Net gain/(loss) on real estate owned(4,119)3,112 Net gain/(loss) on derivatives used for risk management purposes(49,106)9,210 Net gain/(loss) on securitized debt measured at fair value through earnings(53,682)(108,377)Lima One mortgage banking income17,118 24,468 Net realized gain/(loss) on residential whole loans held at carrying value(882)418 Other, net(16,720)61 Other Income/(Loss), net$67,721 $92,535 

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 $8.9 million to $60.8 million for the nine months ended September 30, 2025, compared to $69.6 million for the nine months ended September 30, 2024, primarily driven by lower expense recognition from cash bonus and stock-based awards, a reduction in Lima One sales commissions and salary expenses, and lower accrual of severance costs.

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 decreased by $2.6 million to $31.7 million for the nine months ended September 30, 2025, compared to $34.3 million for the nine months ended September 30, 2024, primarily as a