Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 184

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 184
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5, net interest income, which does not include the benefit of net Swap carry, includes higher net interest from our securities portfolio of $11.5 million compared to the six months ended June 30, 2024, primarily due to higher interest income from an increase in average balance of securities, partially offset by higher interest expense from an increase in average balances of securities repurchase agreements. Net interest income for the six months ended June 30, 2025 also includes higher net interest income from our residential whole loan portfolio of $6.9 million compared to the six months ended June 30, 2024, primarily due to a decrease in interest expense as a result of lower average balances of, and rates on, our financing agreements on our residential whole loan portfolio, partially offset by an increase in interest expense from average balances of, and rates on, our securitized debt and a decrease in interest income from lower average balances of our residential whole loan portfolio. In addition, the six months ended June 30, 2025 had lower interest income from cash and cash equivalents and other interest earnings assets of $4.1 million when compared to the six months ended June 30, 2024, as well as lower interest expense from our senior notes of $3.1 million.

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Analysis of Net Interest Income

The following table sets forth certain information about the average balances of our assets and liabilities and their related yields and costs for the six months ended June 30, 2025 and 2024.  Average yields are derived by dividing annualized interest income by the average amortized cost of the related assets, and average costs are derived by dividing annualized interest expense by the daily average balance of the related liabilities, for the periods shown.  The yields and costs may include premium amortization and discount accretion which are considered adjustments to interest income or expense. 

 Six Months Ended June 30, 20252024 Average BalanceInterestAverage Yield/CostAverage Balance InterestAverage Yield/Cost(Dollars in Thousands) Assets:      Interest-earning assets (1):      Residential whole loans$8,987,891 $305,878 6.81 %$9,545,277 $323,382 6.78 %Securities, at fair value1,685,760 53,448 6.34 746,688 26,621 7.13 Cash and cash equivalents (2)