Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 33

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 33
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 value repurchase agreements9,322 (2,207)7,115 REO financing agreements(27)(54)(81)Convertible Senior Notes(3,158)— (3,158)8.875% Senior Notes320 — 320 9.00% Senior Notes1,800 — 1,800 Total net change in expense of interest-bearing liabilities$(1,534)$(4,515)$(6,049)Net change in net interest income$4,837 $4,886 $9,723 

Interest Income

Interest income on our Securities, at fair value portfolio for the three months ended March 31, 2025 increased by $11.7 million to $24.7 million from $13.0 million for the three months ended March 31, 2024. This increase primarily reflects an increase in the average amortized cost of the portfolio of $908.6 million from purchases of Agency MBS, partially offset by a decrease in the net yield on our Securities, at fair value portfolio to 6.07% for the three months ended March 31, 2025, compared to 7.24% for the three months ended March 31, 2024.

Interest income on our residential whole loans for the three months ended March 31, 2025 decreased by $6.4 million, or 4.0%, to $151.3 million, compared to $157.7 million for the three months ended March 31, 2024.  This decrease primarily reflects a $0.6 billion decrease in the average balance of this portfolio to $8.9 billion for the three months ended March 31, 2025 from $9.5 billion for the three months ended March 31, 2024, partially offset by an increase in the yield to 6.77% for the three months ended March 31, 2025 from 6.63% for the three months ended March 31, 2024.

Interest Expense

Our interest expense for the three months ended March 31, 2025 decreased by $6.0 million, or 4.7%, to $123.0 million, from $129.0 million for the three months ended March 31, 2024.  This decrease primarily reflects a decrease in the average balance of, and rates, on our financing agreements on residential whole loans, lower financing rates on our securities repurchase agreements, and