Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 271

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 271
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 REIT election, no more than 20% of the value of the Company’s assets at the end of each calendar quarter may consist of stock or securities in TRS. For purposes of the determination of U.S. federal and state income taxes, the Company’s subsidiaries that elected to be treated as TRS record current or deferred income taxes based on differences (both permanent and timing) between the determination of their taxable income and net income under GAAP.Based on its analysis of any potentially uncertain tax positions, the Company concluded that it does not have any material uncertain tax positions that meet the relevant recognition or measurement criteria as of March 31, 2025, December 31, 2024 or March 31, 2024.  As of the date of this filing, the Company’s tax returns for tax years 2021 through 2023 are open to examination.

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Table of ContentsMFA FINANCIAL, INC.NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSMARCH 31, 2025

The tax effects of temporary differences that give rise to significant portions of net deferred tax assets (“DTAs”) recorded at the Company’s domestic TRS entities at March 31, 2025 and December 31, 2024 are presented in the following table:(In Thousands)March 31, 2025December 31, 2024Deferred tax assets (DTAs):Net operating loss and tax credit carryforwards$94,092 $89,910 Unrealized mark-to-market, impairments and loss provisions20,146 18,004 Other realized / unrealized treatment differences(44,152)(45,234)Total deferred tax assets70,086 62,680 Less: valuation allowance(70,086)(62,680)Net deferred tax assets$— $— Realization of the Company’s DTAs at March 31, 2025 is dependent on several factors, including generating sufficient taxable income to utilize net operating loss (“NOL”) carryforwards and generating sufficient capital gains in future periods prior to the expiration of capital loss carryforwards.  The Company determines the extent to which realization of the deferred assets is not expected to be more likely than not and establishes a valuation allowance accordingly.No net deferred tax benefit was recorded by the Company for the three months ended March 31, 2025 and 2024, related to the net taxable losses in TRS entities, since a valuation allowance for