NEW YORK–(BUSINESS WIRE)–MFA Financial, Inc. (NYSE:MFA) today provided its financial results for the fourth quarter and full year ended December 31, 2025:
Fourth Quarter 2025 Financial Results:
- MFA generated GAAP net income to common stockholders and participating securities for the fourth quarter of $43.6 million, or $0.42 per basic and diluted common share.
- Distributable earnings, a non-GAAP financial measure, were $27.8 million, or $0.27 per basic common share. MFA paid a regular cash dividend of $0.36 per common share on January 30, 2026.
- GAAP book value at December 31, 2025 was $13.20 per common share. Economic book value, a non-GAAP financial measure, was $13.75 per common share.
- Total economic return was 3.1% for the fourth quarter.
- MFA closed the quarter with unrestricted cash of $213.2 million.
Full Year 2025 Highlights:
- GAAP net income to common stockholders and participating securities was $136.5 million, or $1.31 per basic common share and $1.30 per diluted common share, up from $86.4 million, or $0.83 per basic common share and $0.82 per diluted common share, in 2024.
- Distributable earnings, a non-GAAP financial measure, were $104.0 million, or $1.00 per common share in 2025. MFA paid quarterly dividends of $0.36 per common share throughout 2025, totaling $1.44 per share.
- Total economic return was 9.0% for 2025.
- Loan acquisition activity of $2.7 billion during 2025 included $1.8 billion of Non-QM loans, $655.7 million of Single-family transitional loans (including draws), $235.4 million of Single-family rental (SFR) loans and $14.8 million of draws on previously originated Multifamily transitional loans.
- MFA completed five securitizations in 2025 collateralized by $1.8 billion unpaid principal balance (UPB) of Non-QM loans.
- 60+ day delinquencies (measured as a percentage of UPB) for MFA’s residential loan portfolio declined to 7.1% at December 31, 2025 from 7.5% at December 31, 2024.
- MFA purchased $2.1 billion of Agency MBS throughout 2025.
- Net interest income rose to $231.1 million from $202.7 million in 2024.
- Lima One mortgage banking income totaled $22.8 million.
- MFA repurchased 1,026,117 shares of common stock during 2025.
“We continued to execute on our strategic initiatives during the fourth quarter,” said Craig Knutson, MFA’s Chief Executive Officer. “We acquired $1.2 billion of Agency MBS and $443 million of Non-QM loans, and Lima One originated $226 million of new business purpose loans. We deployed approximately $100 million of excess cash on our balance sheet into our target asset classes. In addition, we continued to reduce operating expenses, resolve non-performing loans, grow the Lima One sales force and repurchase our common stock at accretive levels. These efforts resulted in a total economic return of 3.1% for the quarter and 9.0% for the year.”
Reflecting on the year, Bryan Wulfsohn, President and Chief Investment Officer, added: “We made approximately $4.8 billion of investments in our target asset classes throughout 2025. We significantly grew our Non-QM loan and Agency MBS portfolios, and we profitably sold $219 million of newly-originated rental term loans to third-party investors. Although our Distributable earnings this year were weighed down by credit losses realized on certain legacy business purpose loans, we believe our investment portfolio is well-positioned to deliver strong returns moving forward.”
Q4 2025 Portfolio Activity
- MFA’s residential investment portfolio rose to $12.3 billion at December 31, 2025 from $11.2 billion at September 30, 2025.
- MFA added $1.2 billion of Agency MBS during the quarter, bringing its Agency MBS position to $3.3 billion.
- Non-QM loan acquisitions totaled $443.5 million, bringing MFA’s Non-QM portfolio to $5.3 billion at December 31, 2025.
- Lima One funded $145.3 million of new business purpose loans with a maximum loan amount of $226.4 million. Further, $69.5 million of draws were funded on previously originated Transitional loans. Lima One generated $5.7 million of mortgage banking income.
- Portfolio runoff was $735.0 million. Asset dispositions included $45.4 million of newly-originated SFR loans, $24.6 million of credit risk transfer (CRT) securities and $4.0 million of delinquent Transitional loans. MFA also sold 114 REO properties in the fourth quarter for aggregate net proceeds of $22.4 million.
- 60+ day delinquencies (measured as a percentage of UPB) for MFA’s residential loan portfolio increased to 7.1% at December 31, 2025 from 6.8% at September 30, 2025.
- MFA completed one loan securitization during the quarter collateralized by $445.9 million UPB of Non-QM loans, bringing its total securitized debt to approximately $6.3 billion.
- MFA added a net $706.9 million of new interest rate hedges, maintaining the estimated net effective duration of its investment portfolio at 0.98 years.
- MFA’s Debt/Net Equity Ratio was 6.0x while recourse leverage was 2.5x at December 31, 2025.
New Stock Repurchase Program
MFA also announced today that its Board of Directors has authorized a new $200 million stock repurchase program for the Company’s common stock, which will be in effect through the end of 2028. The new program supersedes the Company’s prior repurchase program, which expired at the end of 2025.
The new stock repurchase program does not require the purchase of any minimum number of shares. The timing and extent to which MFA repurchases its shares will depend upon, among other things, market conditions, share price, liquidity, regulatory requirements and other factors, and repurchases may be commenced or suspended at any time without prior notice. Acquisitions under the stock repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means, in accordance with applicable securities laws (including, in MFA’s discretion, through the use of one or more plans adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended).
Webcast
MFA Financial, Inc. plans to host a live audio webcast of its investor conference call on Wednesday, February 18, 2026, at 11:00 a.m. (Eastern Time) to discuss its fourth quarter 2025 financial results. The live audio webcast will be accessible to the general public over the internet at http://www.mfafinancial.com. Earnings presentation materials will be posted on the MFA website prior to the conference call and an audio replay will be available on the website following the call.
About MFA Financial, Inc.
MFA Financial, Inc. (NYSE: MFA) is a leading specialty finance company that invests in residential mortgage loans, residential mortgage-backed securities and other real estate assets. Through its wholly-owned subsidiary, Lima One Capital, MFA also originates and services business purpose loans for real estate investors. MFA has distributed over $5 billion in dividends to stockholders since its initial public offering in 1998. MFA is an internally-managed, publicly-traded real estate investment trust.
The following tables present MFA’s asset allocation as of December 31, 2025, and the yield on average interest-earning assets, average cost of funds, impact of net Swap carry and net interest rate spread for the various asset types.
Table 1 – Asset Allocation
|
At December 31, 2025 |
|
Non-QM |
|
Single-family |
|
Single-family |
|
Multifamily |
|
Legacy |
|
Agency |
|
Other, |
|
Total |
||||||||||||||||
|
(Dollars in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Asset Amount |
|
$ |
5,345 |
|
|
$ |
1,234 |
|
|
$ |
717 |
|
|
$ |
490 |
|
|
$ |
973 |
|
|
$ |
3,303 |
|
|
$ |
706 |
|
|
$ |
12,768 |
|
|
Financing Agreements with Non-mark-to-market Collateral Provisions |
|
|
— |
|
|
|
(7 |
) |
|
|
(47 |
) |
|
|
(28 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(82 |
) |
|
Financing Agreements with Mark-to-market Collateral Provisions |
|
|
(537 |
) |
|
|
(263 |
) |
|
|
(198 |
) |
|
|
(189 |
) |
|
|
(79 |
) |
|
|
(2,938 |
) |
|
|
(109 |
) |
|
|
(4,313 |
) |
|
Securitized Debt |
|
|
(4,204 |
) |
|
|
(788 |
) |
|
|
(367 |
) |
|
|
(159 |
) |
|
|
(812 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
(6,336 |
) |
|
Senior Notes and Other secured financing |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(209 |
) |
|
|
(209 |
) |
|
Net Equity Allocated |
|
$ |
604 |
|
|
$ |
176 |
|
|
$ |
105 |
|
|
$ |
114 |
|
|
$ |
82 |
|
|
$ |
365 |
|
|
$ |
382 |
|
|
$ |
1,828 |
|
|
Debt/Net Equity Ratio (2) |
|
7.8x |
|
6.0x |
|
5.8x |
|
3.3x |
|
10.9x |
|
8.0x |
|
|
|
6.0x |
||||||||||||||||
| (1) |
Includes $213.2 million of cash and cash equivalents, $173.5 million of restricted cash, $57.1 million of other securities, $51.0 million of Other loans and $20.2 million of capital contributions made to loan origination partners, as well as other assets and other liabilities. |
|
| (2) |
Total Debt/Net Equity ratio represents the sum of borrowings under our financing agreements as a multiple of net equity allocated. |
|
Table 2 – Net Interest Spread
|
|
|
For the Three-Month Period Ended |
||||
|
|
|
December 31, 2025 |
|
September 30, 2025 |
|
December 31, 2024 |
|
Non-QM Loans |
|
|
|
|
|
|
|
Net Yield (1) |
|
5.96% |
|
5.95% |
|
5.63% |
|
Cost of Funding (2) |
|
(5.13)% |
|
(5.21)% |
|
(5.12)% |
|
Impact of net Swap carry (3) |
|
0.49% |
|
0.62% |
|
1.36% |
|
Net Interest Spread |
|
1.32% |
|
1.36% |
|
1.87% |
|
Business Purpose Loans |
|
|
|
|
|
|
|
Net Yield (1) |
|
7.50% |
|
7.88% |
|
7.73% |
|
Cost of Funding (2) |
|
(5.82)% |
|
(6.03)% |
|
(6.39)% |
|
Impact of net Swap carry (3) |
|
0.44% |
|
0.49% |
|
0.80% |
|
Net Interest Spread |
|
2.12% |
|
2.34% |
|
2.14% |
|
Legacy RPL/NPL Loans |
|
|
|
|
|
|
|
Net Yield (1) |
|
7.42% |
|
8.55% |
|
7.52% |
|
Cost of Funding (2) |
|
(4.29)% |
|
(4.32)% |
|
(4.23)% |
|
Impact of net Swap carry (3) |
|
0.48% |
|
0.52% |
|
0.19% |
|
Net Interest Spread |
|
3.61% |
|
4.75% |
|
3.48% |
|
Total Residential Whole Loans |
|
|
|
|
|
|
|
Net Yield (1) |
|
6.53% |
|
6.81% |
|
6.65% |
|
Cost of Funding (2) |
|
(5.23)% |
|
(5.36)% |
|
(5.51)% |
|
Impact of net Swap carry (3) |
|
0.48% |
|
0.58% |
|
1.01% |
|
Net Interest Spread |
|
1.78% |
|
2.03% |
|
2.15% |
|
Securities, at fair value |
|
|
|
|
|
|
|
Net Yield (1) |
|
5.56% |
|
5.79% |
|
6.05% |
|
Cost of Funding (2) |
|
(4.18)% |
|
(4.50)% |
|
(5.02)% |
|
Impact of net Swap carry (3) |
|
0.79% |
|
1.05% |
|
1.68% |
|
Net Interest Spread |
|
2.17% |
|
2.34% |
|
2.71% |
|
Total Balance Sheet |
|
|
|
|
|
|
|
Net Yield (1) |
|
6.20% |
|
6.50% |
|
6.64% |
|
Cost of Funding (2) |
|
(5.05)% |
|
(5.29)% |
|
(5.78)% |
|
Impact of net Swap carry (3) |
|
0.54% |
|
0.65% |
|
1.24% |
|
Net Interest Spread |
|
1.69% |
|
1.86% |
|
2.10% |
| (1) |
Reflects annualized interest income divided by average amortized cost. Excludes servicing costs. |
|
| (2) |
Reflects annualized interest expense divided by average balance of agreements with mark-to-market collateral provisions (repurchase agreements), agreements with non-mark-to-market collateral provisions, and securitized debt. |
|
| (3) |
Reflects the difference between Swap interest income received and Swap interest expense paid on our Swaps. While we have not elected hedge accounting treatment for Swaps, and, accordingly, net Swap carry is not presented in interest expense in our consolidated statement of operations, we believe it is appropriate to allocate net Swap carry by asset class to reflect the economic impact of our Swaps on the net interest spread shown in the table above. |
|
The following table presents the activity for our residential mortgage asset portfolio for the three months ended December 31, 2025:
Table 3 – Investment Portfolio Activity Q4 2025
|
(In Millions) |
|
September 30, |
|
Runoff (1) |
|
Acquisitions & |
|
Other (3) |
|
December 31, |
|
Change |
|||||||||
|
Residential whole loans and REO |
|
$ |
8,952 |
|
$ |
(618 |
) |
|
$ |
658 |
|
$ |
(47 |
) |
|
$ |
8,945 |
|
$ |
(7 |
) |
|
Securities, at fair value |
|
|
2,260 |
|
|
(117 |
) |
|
|
1,228 |
|
|
(11 |
) |
|
|
3,360 |
|
|
1,100 |
|
|
Total |
|
$ |
11,212 |
|
$ |
(735 |
) |
|
$ |
1,886 |
|
$ |
(58 |
) |
|
$ |
12,305 |
|
$ |
1,093 |
|
| (1) |
Primarily includes principal repayments and sales of REO. |
|
| (2) |
Includes draws on previously originated Transitional loans. |
|
| (3) |
Primarily includes loan sales, changes in fair value and changes in the allowance for credit losses. |
|
The following tables present information on our investments in residential whole loans:
Table 4 – Portfolio Composition/Residential Whole Loans
|
|
|
Held at Carrying Value |
|
Held at Fair Value |
|
Total |
||||||||||||||||
|
(Dollars in Thousands) |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||
|
Non-QM loans |
|
$ |
593,213 |
|
|
$ |
722,392 |
|
|
$ |
4,753,480 |
|
$ |
3,568,694 |
|
$ |
5,346,693 |
|
|
$ |
4,291,086 |
|
|
Business purpose loans: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Single-family rental loans |
|
$ |
88,112 |
|
|
$ |
108,203 |
|
|
$ |
1,147,234 |
|
$ |
1,248,197 |
|
$ |
1,235,346 |
|
|
$ |
1,356,400 |
|
|
Single-family transitional loans (1) |
|
|
7,051 |
|
|
|
22,430 |
|
|
|
711,294 |
|
|
1,078,425 |
|
|
718,345 |
|
|
|
1,100,855 |
|
|
Multifamily transitional loans |
|
|
— |
|
|
|
— |
|
|
|
489,637 |
|
|
938,926 |
|
|
489,637 |
|
|
|
938,926 |
|
|
Total Business purpose loans |
|
$ |
95,163 |
|
|
$ |
130,633 |
|
|
$ |
2,348,165 |
|
$ |
3,265,548 |
|
$ |
2,443,328 |
|
|
$ |
3,396,181 |
|
|
Legacy RPL/NPL loans |
|
|
414,676 |
|
|
|
457,654 |
|
|
|
564,340 |
|
|
624,895 |
|
|
979,016 |
|
|
|
1,082,549 |
|
|
Other loans |
|
|
— |
|
|
|
— |
|
|
|
51,022 |
|
|
52,073 |
|
|
51,022 |
|
|
|
52,073 |
|
|
Allowance for Credit Losses |
|
|
(9,705 |
) |
|
|
(10,665 |
) |
|
|
— |
|
|
— |
|
|
(9,705 |
) |
|
|
(10,665 |
) |
|
Total Residential whole loans |
|
$ |
1,093,347 |
|
|
$ |
1,300,014 |
|
|
$ |
7,717,007 |
|
$ |
7,511,210 |
|
$ |
8,810,354 |
|
|
$ |
8,811,224 |
|
|
Number of loans |
|
|
4,941 |
|
|
|
5,582 |
|
|
|
18,824 |
|
|
18,588 |
|
|
23,765 |
|
|
|
24,170 |
|
| (1) |
Includes $300.2 million and $442.4 million of loans collateralized by new construction projects at origination as of December 31, 2025 and December 31, 2024, respectively. |
|
Table 5 – Yields and Average Balances/Residential Whole Loans
|
|
|
For the Three-Month Period Ended |
||||||||||||||||||||||
|
|
|
December 31, 2025 |
|
September 30, 2025 |
|
December 31, 2024 |
||||||||||||||||||
|
(Dollars in Thousands) |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
|
Average |
||||||
|
Non-QM loans |
|
$ |
79,960 |
|
$ |
5,369,775 |
|
5.96% |
|
$ |
76,742 |
|
$ |
5,162,278 |
|
5.95% |
|
$ |
62,885 |
|
$ |
4,464,657 |
|
5.63% |
|
Business purpose loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Single-family rental loans |
|
$ |
19,611 |
|
$ |
1,265,698 |
|
6.20% |
|
$ |
21,636 |
|
$ |
1,302,703 |
|
6.64% |
|
$ |
23,124 |
|
$ |
1,474,552 |
|
6.27% |
|
Single-family transitional loans |
|
|
17,398 |
|
|
768,729 |
|
9.05% |
|
|
18,991 |
|
|
835,895 |
|
9.09% |
|
|
26,733 |
|
|
1,125,631 |
|
9.50% |
|
Multifamily transitional loans |
|
|
12,123 |
|
|
586,047 |
|
8.27% |
|
|
15,356 |
|
|
704,298 |
|
8.72% |
|
|
20,474 |
|
|
1,040,093 |
|
7.87% |
|
Total business purpose loans |
|
$ |
49,132 |
|
$ |
2,620,474 |
|
7.50% |
|
$ |
55,983 |
|
$ |
2,842,896 |
|
7.88% |
|
$ |
70,331 |
|
$ |
3,640,276 |
|
7.73% |
|
Legacy RPL/NPL loans |
|
|
16,933 |
|
|
912,422 |
|
7.42% |
|
|
20,086 |
|
|
939,653 |
|
8.55% |
|
|
19,085 |
|
|
1,014,917 |
|
7.52% |
|
Other loans |
|
|
418 |
|
|
61,696 |
|
2.71% |
|
|
479 |
|
|
62,786 |
|
3.05% |
|
|
467 |
|
|
66,186 |
|
2.82% |
|
Total Residential whole loans |
|
$ |
146,443 |
|
$ |
8,964,367 |
|
6.53% |
|
$ |
153,290 |
|
$ |
9,007,613 |
|
6.81% |
|
$ |
152,768 |
|
$ |
9,186,036 |
|
6.65% |
Table 6 – Credit-related Metrics/Residential Whole Loans
|
December 31, 2025 |
|||||||||||||||||||||||||||||||||
|
|
|
Asset |
|
Fair |
|
Unpaid |
|
Weighted |
|
Weighted |
|
Weighted |
|
Weighted |
|
Aging by UPB |
|
60+ |
|
60+ |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Past Due Days |
|
|
||||||||||||||||||||
|
(Dollars In Thousands) |
|
|
|
|
|
|
|
|
Current |
|
30-59 |
|
60-89 |
|
90+ |
|
|
||||||||||||||||
|
Non-QM loans |
|
$ |
5,344,968 |
|
$ |
5,332,533 |
|
$ |
5,322,321 |
|
6.74% |
|
337 |
|
64% |
|
738 |
|
$ |
4,929,485 |
|
$ |
170,509 |
|
$ |
47,154 |
|
$ |
175,173 |
|
4.2% |
|
64% |
|
Business purpose loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Single-family rental |
|
$ |
1,234,428 |
|
$ |
1,237,464 |
|
$ |
1,246,745 |
|
6.34% |
|
311 |
|
66% |
|
740 |
|
$ |
1,193,041 |
|
$ |
22,309 |
|
$ |
4,165 |
|
$ |
27,230 |
|
2.5% |
|
68% |
|
Single-family transitional (5) |
|
717,303 |
|
|
717,702 |
|
|
732,059 |
|
10.31% |
|
6 |
|
69% |
|
750 |
|
|
599,798 |
|
|
48,180 |
|
|
2,535 |
|
|
81,546 |
|
11.5% |
|
83% |
|
|
Multifamily transitional (5) |
|
489,637 |
|
|
489,637 |
|
|
531,804 |
|
10.17% |
|
1 |
|
64% |
|
749 |
|
|
399,686 |
|
|
44,523 |
|
|
32,905 |
|
|
54,690 |
|
16.5% |
|
68% |
|
|
Total business purpose loans |
|
$ |
2,441,368 |
|
$ |
2,444,803 |
|
$ |
2,510,608 |
|
8.31% |
|
|
|
66% |
|
|
|
$ |
2,192,525 |
|
$ |
115,012 |
|
$ |
39,605 |
|
$ |
163,466 |
|
8.1% |
|
|
|
Legacy RPL/NPL loans |
|
|
972,996 |
|
|
992,120 |
|
|
1,097,698 |
|
5.09% |
|
245 |
|
54% |
|
646 |
|
|
757,826 |
|
|
125,621 |
|
|
47,620 |
|
|
166,631 |
|
19.5% |
|
60% |
|
Other loans |
|
|
51,022 |
|
|
51,022 |
|
|
59,283 |
|
3.43% |
|
308 |
|
63% |
|
757 |
|
|
59,283 |
|
|
— |
|
|
— |
|
|
— |
|
—% |
|
—% |
|
Residential whole loans, total or weighted average |
$ |
8,810,354 |
|
$ |
8,820,478 |
|
$ |
8,989,910 |
|
6.98% |
|
|
|
64% |
|
|
|
$ |
7,939,119 |
|
$ |
411,142 |
|
$ |
134,379 |
|
$ |
505,270 |
|
7.1% |
|
|
|
| (1) |
Weighted average is calculated based on the interest bearing principal balance of each loan within the related category. For loans acquired with servicing rights released by the seller, interest rates included in the calculation do not reflect loan servicing fees. For loans acquired with servicing rights retained by the seller, interest rates included in the calculation are net of servicing fees. |
|
| (2) |
For the quarter ended December 31, 2025, the gross coupon was 6.88% for Non-QM loans, 6.37% for Single-family rental loans, 10.32% for Single-family transitional loans, 10.18% for Multifamily transitional loans, and 5.10% for Legacy RPL/NPL loans. |
|
| (3) |
LTV represents the ratio of the total unpaid principal balance of the loan to the estimated value of the collateral securing the related loan as of the most recent date available, which may be the origination date. Excluded from the calculation of weighted average are certain low value loans secured by vacant lots, for which the LTV ratio is not meaningful. |
|
| (4) |
Excludes loans for which no Fair Isaac Corporation (“FICO”) score is available. |
|
| (5) |
For Single-family and Multifamily transitional loans, the LTV presented is the ratio of the maximum unpaid principal balance of the loan, including unfunded commitments, to the estimated “after repaired” value of the collateral securing the related loan, where available. At December 31, 2025, for certain Single-family and Multifamily Transitional loans totaling $270.9 million and $121.1 million, respectively, an after repaired valuation was not available. For these loans, the weighted average LTV is calculated based on the current unpaid principal balance and the as-is value of the collateral securing the related loan. |
|
Table 7 – Shock Table
The information presented in the following “Shock Table” projects the potential impact of sudden parallel changes in interest rates on our portfolio, including the impact of Swaps and securitized debt and other fixed rate debt, based on the assets in our investment portfolio as of December 31, 2025. All changes in value are measured as the percentage change from the projected portfolio value under the base interest rate scenario as of December 31, 2025.
|
Change in Interest Rates |
|
Percentage Change in Net Portfolio |
|
Percentage Change in Total |
|
+100 Basis Point Increase |
|
(1.35)% |
|
(9.58)% |
|
+ 50 Basis Point Increase |
|
(0.58)% |
|
(4.15)% |
|
Actual as of December 31, 2025 |
|
—% |
|
—% |
|
– 50 Basis Point Decrease |
|
0.40% |
|
2.85% |
|
-100 Basis Point Decrease |
|
0.62% |
|
4.42% |
|
MFA FINANCIAL, INC. |
||||||||
|
(In Thousands, Except Per Share Amounts) |
|
December 31, |
|
December 31, |
||||
|
|
|
|
|
|
||||
|
Assets: |
|
|
|
|
||||
|
Residential whole loans, net ($7,717,007 and $7,511,210 held at fair value, respectively) (1) |
|
$ |
8,810,354 |
|
|
$ |
8,811,224 |
|
|
Securities, at fair value |
|
|
3,360,280 |
|
|
|
1,537,513 |
|
|
Cash and cash equivalents |
|
|
213,211 |
|
|
|
338,931 |
|
|
Restricted cash |
|
|
173,457 |
|
|
|
262,381 |
|
|
Other assets |
|
|
489,147 |
|
|
|
459,555 |
|
|
Total Assets |
|
$ |
13,046,449 |
|
|
$ |
11,409,604 |
|
|
|
|
|
|
|
||||
|
Liabilities: |
|
|
|
|
||||
|
Financing agreements ($5,956,057 and $5,516,005 held at fair value, respectively) |
|
$ |
10,940,014 |
|
|
$ |
9,155,461 |
|
|
Other liabilities |
|
|
278,740 |
|
|
|
412,351 |
|
|
Total Liabilities |
|
$ |
11,218,754 |
|
|
$ |
9,567,812 |
|
|
|
|
|
|
|
||||
|
Stockholders’ Equity: |
|
|
|
|
||||
|
Preferred stock, $0.01 par value; 7.5% Series B cumulative redeemable; 12,050 and 8,050 shares authorized, respectively; 8,125 and 8,000 shares issued and outstanding, respectively ($203,132 and $200,000 aggregate liquidation preference, respectively) |
|
$ |
81 |
|
|
$ |
80 |
|
|
Preferred stock, $0.01 par value; 6.5% Series C fixed-to-floating rate cumulative redeemable; 16,650 and 12,650 shares authorized, respectively; 11,286 and 11,000 shares issued and outstanding, respectively ($282,148 and $275,000 aggregate liquidation preference, respectively) |
|
|
113 |
|
|
|
110 |
|
|
Common stock, $0.01 par value; 866,300 and 874,300 shares authorized, respectively; 101,663 and 102,083 shares issued and outstanding, respectively |
|
|
1,017 |
|
|
|
1,021 |
|
|
Additional paid-in capital, in excess of par |
|
|
3,718,350 |
|
|
|
3,711,046 |
|
|
Accumulated deficit |
|
|
(1,895,541 |
) |
|
|
(1,879,941 |
) |
|
Accumulated other comprehensive income |
|
|
3,675 |
|
|
|
9,476 |
|
|
Total Stockholders’ Equity |
|
$ |
1,827,695 |
|
|
$ |
1,841,792 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
13,046,449 |
|
|
$ |
11,409,604 |
|
| (1) |
Includes approximately $7.6 billion and $6.9 billion of Residential whole loans transferred to consolidated variable interest entities (“VIEs”) at December 31, 2025 and December 31, 2024, respectively. Such assets can be used only to settle the obligations of each respective VIE. |
|
|
MFA FINANCIAL, INC. |
||||||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
(In Thousands, Except Per Share Amounts) |
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
||||||||
|
Interest Income: |
|
|
|
|
|
|
|
|
||||||||
|
Residential whole loans |
|
$ |
146,443 |
|
|
$ |
152,768 |
|
|
$ |
605,611 |
|
|
$ |
633,556 |
|
|
Securities, at fair value |
|
|
40,102 |
|
|
|
19,746 |
|
|
|
121,258 |
|
|
|
61,110 |
|
|
Other interest-earning assets |
|
|
523 |
|
|
|
717 |
|
|
|
1,964 |
|
|
|
7,058 |
|
|
Cash and cash equivalent investments |
|
|
3,356 |
|
|
|
5,097 |
|
|
|
16,231 |
|
|
|
22,241 |
|
|
Interest Income |
|
$ |
190,424 |
|
|
$ |
178,328 |
|
|
$ |
745,064 |
|
|
$ |
723,965 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest Expense: |
|
|
|
|
|
|
|
|
||||||||
|
Asset-backed and other collateralized financing arrangements |
|
$ |
130,192 |
|
|
$ |
122,996 |
|
|
$ |
495,549 |
|
|
$ |
500,026 |
|
|
Other interest expense |
|
|
4,751 |
|
|
|
4,530 |
|
|
|
18,431 |
|
|
|
21,208 |
|
|
Interest Expense |
|
$ |
134,943 |
|
|
$ |
127,526 |
|
|
$ |
513,980 |
|
|
$ |
521,234 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Interest Income |
|
$ |
55,481 |
|
|
$ |
50,802 |
|
|
$ |
231,084 |
|
|
$ |
202,731 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reversal/(Provision) for Credit Losses on Residential Whole Loans |
|
$ |
276 |
|
|
$ |
(398 |
) |
|
$ |
(936 |
) |
|
$ |
3,084 |
|
|
Reversal/(Provision) for Credit Losses on Other Assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,135 |
) |
|
Net Interest Income after Reversal/(Provision) for Credit Losses |
|
$ |
55,757 |
|
|
$ |
50,404 |
|
|
$ |
230,148 |
|
|
$ |
204,680 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income/(Loss), net: |
|
|
|
|
|
|
|
|
||||||||
|
Net gain/(loss) on residential whole loans measured at fair value through earnings |
|
$ |
4,405 |
|
|
$ |
(102,339 |
) |
|
$ |
133,689 |
|
|
$ |
45,994 |
|
|
Impairment and other net gain/(loss) on securities and other portfolio investments |
|
|
15,715 |
|
|
|
(26,179 |
) |
|
|
61,543 |
|
|
|
(10,869 |
) |
|
Net gain/(loss) on real estate owned |
|
|
(2,641 |
) |
|
|
24 |
|
|
|
(6,760 |
) |
|
|
3,136 |
|
|
Net gain/(loss) on derivatives used for risk management purposes |
|
|
13,562 |
|
|
|
69,293 |
|
|
|
(35,544 |
) |
|
|
78,503 |
|
|
Net gain/(loss) on securitized debt measured at fair value through earnings |
|
|
(1,534 |
) |
|
|
43,564 |
|
|
|
(55,216 |
) |
|
|
(64,813 |
) |
|
Lima One mortgage banking income |
|
|
5,730 |
|
|
|
8,477 |
|
|
|
22,848 |
|
|
|
32,944 |
|
|
Net realized gain/(loss) on residential whole loans held at carrying value |
|
|
— |
|
|
|
— |
|
|
|
(882 |
) |
|
|
418 |
|
|
Other, net |
|
|
(2,003 |
) |
|
|
52 |
|
|
|
(18,723 |
) |
|
|
115 |
|
|
Other Income/(Loss), net |
|
$ |
33,234 |
|
|
$ |
(7,108 |
) |
|
$ |
100,955 |
|
|
$ |
85,428 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating and Other Expense: |
|
|
|
|
|
|
|
|
||||||||
|
Compensation and benefits |
|
$ |
16,919 |
|
|
$ |
18,021 |
|
|
$ |
77,669 |
|
|
$ |
87,654 |
|
|
Other general and administrative expense |
|
|
10,059 |
|
|
|
9,993 |
|
|
|
41,740 |
|
|
|
44,254 |
|
|
Loan servicing, financing and other related costs |
|
|
7,394 |
|
|
|
11,044 |
|
|
|
33,446 |
|
|
|
35,306 |
|
|
Amortization of intangible assets |
|
|
300 |
|
|
|
800 |
|
|
|
2,200 |
|
|
|
3,200 |
|
|
Operating and Other Expense |
|
$ |
34,672 |
|
|
$ |
39,858 |
|
|
$ |
155,055 |
|
|
$ |
170,414 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income/(loss) before income taxes |
|
$ |
54,319 |
|
|
$ |
3,438 |
|
|
$ |
176,048 |
|
|
$ |
119,694 |
|
|
Provision for/(benefit from) income taxes |
|
$ |
— |
|
|
$ |
(2,471 |
) |
|
$ |
(735 |
) |
|
$ |
443 |
|
|
Net Income/(Loss) |
|
$ |
54,319 |
|
|
$ |
5,909 |
|
|
$ |
176,783 |
|
|
$ |
119,251 |
|
|
Less Preferred Stock Dividend Requirement |
|
$ |
10,705 |
|
|
$ |
8,219 |
|
|
$ |
40,318 |
|
|
$ |
32,875 |
|
|
Net Income/(Loss) Available to Common Stock and Participating Securities |
|
$ |
43,614 |
|
|
$ |
(2,310 |
) |
|
$ |
136,465 |
|
|
$ |
86,376 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic Earnings/(Loss) per Common Share |
|
$ |
0.42 |
|
|
$ |
(0.02 |
) |
|
$ |
1.31 |
|
|
$ |
0.83 |
|
|
Diluted Earnings/(Loss) per Common Share |
|
$ |
0.42 |
|
|
$ |
(0.02 |
) |
|
$ |
1.30 |
|
|
$ |
0.82 |
|
Segment Reporting
At December 31, 2025, the Company’s reportable segments include (i) mortgage-related assets and (ii) Lima One.
Contacts
INVESTOR CONTACT:
[email protected]
212-207-6488
www.mfafinancial.com
MEDIA CONTACT:
H/Advisors Abernathy
Sydney Isaacs
713-343-0427
