Company: MFAN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001055160-25-000018
Chunk: 177

Company: MFA FINANCIAL, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 177
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 Swap carry)$72,790 1.86 %$76,795 1.98 %Net interest-earning assets/net interest margin (7)$1,766,747 2.57 %$1,790,026 2.73 %

(1)Yields presented throughout this Quarterly Report on Form 10-Q are calculated using average amortized cost data for residential whole loans and securities, which excludes unrealized gains and losses.  For GAAP reporting purposes, securities purchases and sales are reported on the trade date.  Average amortized cost data used to determine yields is calculated based on the settlement date of the associated purchase or sale as interest income is not earned on purchased assets and continues to be earned on sold assets until settlement date.  

(2)Includes average interest-earning cash, cash equivalents and restricted cash.  

(3)Includes both securitized debt, at carrying value, and securitized debt, at fair value.

(4)Collateralized financing agreements include the following: mark-to-market asset based financing and non-mark-to-market asset based financing.  For additional information, see Note 6, included under Item 1 of this Quarterly Report on Form 10-Q.  

(5)Net interest rate spread reflects the difference between the yield on average interest-earning assets and average cost of funds.

(6)Reflects the impact of positive or negative net Swap carry.  Positive net Swap carry results when income from the receive leg of a Swap is greater than the expense on the pay leg.  Negative net Swap carry results when income from the receive leg is less than the expense on the pay leg.

(7)Net interest margin reflects annualized net interest income (including net Swap carry) divided by average interest-earning assets.

69  

Rate/Volume Analysis

The following table presents the extent to which changes in interest rates (yield/cost) and changes in the volume (average balance) of interest-earning assets and interest-bearing liabilities have affected our interest income and interest expense during the periods indicated.  Information is provided in each category with respect to: (i) the changes attributable to changes in volume (changes in average balance multiplied by prior rate); (ii) the changes attributable to changes in rate (changes in rate multiplied by prior average balance); and (iii) the net change.  The changes attributable to the combined impact of volume and rate have been allocated proportionately, based on absolute values, to the changes due to rate and volume.