Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 18

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 18
---
 from our residential whole loan portfolio of $1.3 million, compared to the second quarter of 2025, primarily due to an increase in interest expense from higher average balances of, and rates on, our securitized debt as well as a decrease in interest income from lower yield on our residential whole loan portfolio, partially offset by a decrease in interest expense from lower average balances of our residential whole loan financing agreements. 

68  

Analysis of Net Interest Income

The following table sets forth certain information about the average balances of our assets and liabilities and their related yields and costs for the three months ended September 30, 2025 and June 30, 2025.  Average yields are derived by dividing annualized interest income by the average amortized cost of the related assets, and average costs are derived by dividing annualized interest expense by the average balance of the related liabilities, for the periods shown.  The yields and costs may include premium amortization and discount accretion which are considered adjustments to interest income or expense.

 Three Months Ended September 30, 2025Three Months Ended June 30, 2025 Average Balance InterestAverage Yield/CostAverage Balance InterestAverage Yield/Cost(Dollars in Thousands)  Assets:Interest-earning assets (1):Residential whole loans$9,007,613 $153,290 6.81 %$9,030,301 $154,568 6.85 %Securities, at fair value1,914,726 27,708 5.79 1,744,884 28,778 6.60 Cash and cash equivalents (2)509,538 4,278 3.36 527,071 4,470 3.39 Other interest-earning assets7,350 515 28.06 7,435 528 28.41 Total interest-earning assets11,439,227 185,791 6.50 11,309,691 188,344 6.66 Liabilities:Interest-bearing liabilities:Securitized debt (3)$6,021,807 $77,022 5.12 %$5,906,258 $74,775 5.06 %Collateralized financing agreements (4)3,463,727 47,381 5.35 3,429,344 47,748 5.51 Other secured