Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 25

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 25
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(2)Reflects annualized interest expense divided by average balance of repurchase agreements.  Cost of funding shown in the table above includes the impact of the net carry (the difference between swap interest income received and swap interest expense paid) on our Swaps that is allocated to the financing of our Securities, at fair value.  For the quarter ended March 31, 2025, this decreased the overall funding cost by 108 basis points. For the quarter ended December 31, 2024, this decreased the overall funding cost by 168 basis points. For the quarter ended September 30, 2024, this decreased the overall funding cost by 171 basis points. For the quarter ended June 30, 2024, this decreased the overall funding cost by 190 basis points. For the quarter ended March 31, 2024, this decreased the overall funding cost by 179 basis points.

Interest Income

Interest income on our Securities, at fair value portfolio for the first quarter of 2025 increased by $4.9 million, or 25%, to $24.7 million, compared to $19.7 million for the fourth quarter of 2024. This increase primarily reflects a $321.1 million increase in the average balance of this portfolio to $1.6 billion for the first quarter of 2025 from the fourth quarter of 2024.

Interest income on our residential whole loans for the first quarter of 2025 decreased by $1.5 million, or 1.0%, to $151.3 million, compared to $152.8 million for the fourth quarter of 2024.  This decrease primarily reflects a $241.0 million decrease in the average balance of this portfolio to $8.9 billion for the first quarter of 2025 from the fourth quarter of 2024, partially offset by an increase in the yield to 6.77% for the first quarter of 2025 from 6.65% for the fourth quarter of 2024. 

Interest Expense

Our interest expense for the first quarter of 2025 decreased by $4.6 million, or 3.6%, to $123.0 million, from $127.5 million for the fourth quarter of 2024. This decrease primarily reflects a decrease in the average balance of, and rates on, our financing agreements on residential whole loans as well as a decrease in the rates on our securities repurchase agreements, partially offset by higher average balance of