Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 163

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 163
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31, 2025.

For the three months ended June 30, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.8 million. The total allowance for credit losses recorded on residential whole loans held at carrying value at June 30, 2025 was $9.9 million.  

During the second quarter of 2025, we completed one securitization collateralized by $318.4 million UPB of Non-QM loans.  This securitization provided longer term, non-recourse, non-mark-to-market financing. During the quarter, interest rates exhibited significant volatility, and the yield curve steepened, as shorter duration rates ended the quarter lower while rates for longer maturities ended higher.  The net impact of interest rate fluctuations resulted in net mark-to-market gains on the GAAP value of our investment portfolio.  We continue to closely follow the actions of the Federal Reserve regarding the path and timing of changes in interest rates and the impact such rate changes would be expected to have on levels of inflation, the overall economic environment and our business. 

Our GAAP book value per common share was $13.12 as of June 30, 2025 and was $13.28 as of March 31, 2025. Economic book value per common share, a non-GAAP financial measure, was $13.69 as of June 30, 2025, a decrease from $13.84 as of March 31, 2025. The decreases in GAAP book value and Economic book value during the second quarter of 2025 primarily reflect dividends declared on our common stock in excess of GAAP comprehensive income. For additional information regarding the calculation of Economic book value per share, including a reconciliation to GAAP book value per share, refer to “Reconciliation of GAAP and Non-GAAP Financial Measures” below. 

For more information regarding market factors which impact our portfolio, see Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and Item 3. “Quantitative and Qualitative Disclosures About Market Risk” of this Quarterly Report on Form 10-Q.

Information About Our Assets

The table below presents certain information about our asset allocation at June 30, 2025:

ASSET ALLOCATION

(Dollars in Millions)Non-QM loansSingle-family rental loansSingle-family