Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 33

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 33
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88% for the nine months ended September 30, 2024.

Interest income on our residential whole loans for the nine months ended September 30, 2025 decreased by $21.6 million, or 4.5%, to $459.2 million, compared to $480.8 million for the nine months ended September 30, 2024. This decrease primarily reflects a $0.5 billion decrease in the average balance of this portfolio to $9.0 billion for the nine months ended September 30, 2025 from $9.5 billion for the nine months ended September 30, 2024. 

Interest income on our cash and other interest earning assets for the nine months ended September 30, 2025 decreased by $9.2 million to $14.3 million, compared to $23.5 million for the nine months ended September 30, 2024. This decrease primarily reflects a $37.6 million decrease in the average balance of other interest earning assets as well as a decrease in the yield earned on our cash and cash equivalents to 3.36% for the nine months ended September 30, 2025 from 4.26% for the nine months ended September 30, 2024.

Interest Expense

Our interest expense for the nine months ended September 30, 2025 decreased by $14.7 million, or 3.7%, to $379.0 million, from $393.7 million for the nine months ended September 30, 2024.  This decrease primarily reflects a decrease in the average balances of, and rates, on our residential whole loans financing agreements, lower financing rates on our securities repurchase agreements, and $5.5 million of lower interest expense related to our 6.25% convertible senior notes which matured and were paid in full in June 2024, partially offset by higher average balances of, and rates on, our securitized debt, higher average balances of our securities repurchase agreements and $2.5 million of higher interest expense related to our 9.00% and 8.875% senior notes issued in April and January 2024, respectively.

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

For the nine months ended September 30, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $1.2 million compared to a reversal of provision for credit losses of $3