Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 34

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 34
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)1.06 %1.85 %Net Interest Spread2.84 %3.21 %

(1)Reflects annualized interest income on Residential whole loans divided by average amortized cost of Residential whole loans.  Excludes servicing costs. 

(2)Reflects annualized interest expense divided by average balance of agreements with mark-to-market collateral provisions (repurchase agreements), agreements with non-mark-to-market collateral provisions, and securitized debt.  

(3)Reflects the difference between Swap interest income received and Swap interest expense paid on our Swaps. While we have not elected hedge accounting treatment for Swaps and, accordingly, net Swap carry is not presented in interest expense in our consolidated statement of operations, we believe it is appropriate to allocate net Swap carry by asset class to reflect the economic impact of our Swaps on the net interest spread shown in the table above.

Interest Income

Interest income on our Securities, at fair value portfolio for the six months ended June 30, 2025 increased by $26.8 million to $53.4 million from $26.6 million for the six months ended June 30, 2024. This increase includes $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full during the quarter, and overall primarily reflects an increase in the average amortized cost of the portfolio of $939.1 million from purchases of Agency MBS, partially offset by a decrease in the net yield on our Securities, at fair value portfolio to 6.34% for the six months ended June 30, 2025, compared to 7.13% for the six months ended June 30, 2024.

Interest income on our residential whole loans for the six months ended June 30, 2025 decreased by $17.5 million, or 5.4%, to $305.9 million, compared to $323.4 million for the six months ended June 30, 2024.  This decrease primarily reflects a $0.6 billion decrease in the average balance of this portfolio to $9.0 billion for the six months ended June 30, 2025 from $9.5 billion for the six months ended June 30, 2024.

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Interest Expense

Our interest expense for the six months ended June 30, 2025 decreased by $12.3 million, or 4.7%, to $250.0 million, from $