Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 167

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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 cost by 171 basis points. For the quarter ended June 30, 2024, this decreased the overall funding cost by 190 basis points. For the quarter ended March 31, 2024, this decreased the overall funding cost by 179 basis points.

Interest Income

Interest income on our Securities, at fair value portfolio for the first quarter of 2025 increased by $4.9 million, or 25%, to $24.7 million, compared to $19.7 million for the fourth quarter of 2024. This increase primarily reflects a $321.1 million increase in the average balance of this portfolio to $1.6 billion for the first quarter of 2025 from the fourth quarter of 2024.

Interest income on our residential whole loans for the first quarter of 2025 decreased by $1.5 million, or 1.0%, to $151.3 million, compared to $152.8 million for the fourth quarter of 2024.  This decrease primarily reflects a $241.0 million decrease in the average balance of this portfolio to $8.9 billion for the first quarter of 2025 from the fourth quarter of 2024, partially offset by an increase in the yield to 6.77% for the first quarter of 2025 from 6.65% for the fourth quarter of 2024. 

Interest Expense

Our interest expense for the first quarter of 2025 decreased by $4.6 million, or 3.6%, to $123.0 million, from $127.5 million for the fourth quarter of 2024. This decrease primarily reflects a decrease in the average balance of, and rates on, our financing agreements on residential whole loans as well as a decrease in the rates on our securities repurchase agreements, partially offset by higher average balance of our securities repurchase agreements and higher average balance of, and rates on, our securitized debt. 

Provision for Credit Losses on Residential Whole Loans Held at Carrying Value

For the first quarter of 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.1 million compared to a provision for credit losses of $0.4 million for the fourth quarter of 2024. The provision recorded in the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value.

Provision for Credit Losses on Other Assets

We had no provision for