Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 179

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 179
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 $9.0 billion for the second quarter of 2025 from the first quarter of 2025.

71  

Interest Expense

Our interest expense for the second quarter of 2025 increased by $4.1 million, or 3.3%, to $127.1 million, from $123.0 million for the first quarter of 2025. This increase primarily reflects an increase in the average balance of our securities repurchase agreements and financing agreements on residential whole loans, as well as an increase in the average balance of, and rates on, our securitized debt, partially offset by lower rates on our financing agreements on residential whole loans.

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

For the second quarter of 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.8 million compared to a provision for credit losses of $0.1 million for the first quarter of 2025. The provision recorded in the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value.

Provision for Credit Losses on Other Assets

We had no provision for credit losses on Other Assets for the second quarter of 2025 or the first quarter of 2025.

Other Income/(Loss), net

For the second quarter of 2025, Other Income/(Loss), net was $12.3 million, compared to Other Income/(Loss), net of $24.5 million for the first quarter of 2025.  The components of Other Income/(Loss), net for the second quarter of 2025 and first quarter of 2025 are summarized in the table below:

Three Months Ended(In Thousands)June 30, 2025March 31, 2025Net gain/(loss) on residential whole loans measured at fair value through earnings33,611 $54,380 Impairment and other net gain/(loss) on securities and other portfolio investments6,645 21,179 Net gain/(loss) on real estate owned(2,911)(1,508)Net gain/(loss) on derivatives used for risk management purposes(18,251)(31,055)Net gain/(loss) on securitized debt measured at fair value through earnings(7,105)(21,931)Lima One mortgage banking income6,087 5,437 Net realized gain/(loss) on residential whole loans held at carrying value(343