Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 18

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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,044 (3,792)Amortization of intangible assets800 800 — Operating and Other Expense$41,600 $39,858 $1,742 Income/(loss) before income taxes$40,304 $3,438 $36,866 Provision for/(benefit from) income taxes(872)(2,471)1,599 Net Income/(Loss)$41,176 $5,909 $35,267 Less Preferred Stock Dividend Requirement$8,219 $8,219 $— Net Income/(Loss) Available to Common Stock and Participating Securities$32,957 $(2,310)$35,267 Basic Earnings/(Loss) per Common Share$0.32 $(0.02)$0.34 Diluted Earnings/(Loss) per Common Share$0.31 $(0.02)$0.33 

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General

For the first quarter of 2025, we had net income available to our common stock and participating securities of $33.0 million, or $0.32 per basic common share and $0.31 per diluted common share, compared to net loss available to common stock and participating securities of $(2.3) million, or $(0.02) per basic and diluted common share, for the fourth quarter of 2024. The increase in net income available to common stock and participating securities in the current period primarily reflects an increase in Other income/(loss), net of $24.5 million for the current quarter compared to an Other income/(loss), net of $(7.1) million in the immediately prior quarter, as well as higher Net Interest Income, partially offset by higher Operating and Other Expense and a lower benefit from income taxes.

Net Interest Income

Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities.  Net interest income depends primarily upon the volume of interest-earning assets and interest-bearing liabilities and the corresponding interest rates earned or paid.  Our net interest income varies primarily as a result of changes in interest rates, the slope of the yield curve (i.e., the differential between long-term and short-term interest rates), borrowing costs (i.e., our interest expense), the level of loan delinquencies, which may result in changes in the amount of non-accrual loans, and prepayment speeds on our investments.  Interest rates and CPRs (which measure