Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 17

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 17
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 second quarter of 2025. The increase in net income available to common stock and participating securities in the current period compared to the prior period primarily reflects an $18.7 million increase to Other income/(loss), net, partially offset by a $4.5 million decrease to 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.  Interest rates and CPRs (which measure the amount of unscheduled principal prepayment on a bond or loan as a percentage of its unpaid balance) vary according to the type of investment, conditions in the financial markets and other factors, none of which can be predicted with any certainty.

The changes in average interest-earning assets and average interest-bearing liabilities and their related yields and costs are discussed in greater detail below under “Interest Income” and “Interest Expense.”

For the third quarter of 2025, our net interest spread and margin (including the impact of net Swap carry) were 1.86% and 2.57%, respectively, compared to a net interest spread and margin (including the impact of net Swap carry) of 1.98% and 2.73%, respectively, for the second quarter of 2025. Our net interest income decreased by $4.5 million and was $56.8 million for the third quarter of 2025, compared to $61.3 million for the second quarter of 2025. For the third quarter of 2025, net interest income, which does not include the benefit of net Swap carry, includes lower net interest income from our securities portfolio of $3.0 million, compared to the second quarter of 2025, primarily due to a decrease in interest income from lower yield on our securities portfolio and higher average balances of our securities repurchase agreements, partially offset by an increase in income from higher average balances of our securities portfolio. Net interest income for the third quarter of 2025 also includes lower net interest income