Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 18

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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 — Operating and Other Expense$39,313 $41,600 $(2,287)Income/(loss) before income taxes$33,422 $40,304 $(6,882)Provision for/(benefit from) income taxes238 (872)1,110 Net Income/(Loss)$33,184 $41,176 $(7,992)Less Preferred Stock Dividend Requirement$10,560 $8,219 $2,341 Net Income/(Loss) Available to Common Stock and Participating Securities$22,624 $32,957 $(10,333)Basic Earnings/(Loss) per Common Share$0.22 $0.32 $(0.10)Diluted Earnings/(Loss) per Common Share$0.21 $0.31 $(0.10)

67  

General

For the second quarter of 2025, we had net income available to our common stock and participating securities of $22.6 million, or $0.22 per basic common share and $0.21 per diluted common share, compared to net income available to common stock and participating securities of $33.0 million, or $0.32 per basic common share and $0.31 per diluted common share, for the first quarter of 2025. The decrease in net income available to common stock and participating securities in the current period primarily reflects a decrease in Other income/(loss), net to $12.3 million for the current quarter compared to an Other income/(loss), net of $24.5 million in the immediately prior quarter, as well as a $2.3 million increase in preferred stock dividends paid as a result of the higher floating rate payable on our Series C preferred stock, partially offset by lower Compensation and benefits expenses and higher net interest income.

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.