$MFA-PB

MFA FINANCIAL, INC.

CIK:0001055160|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest Income:
Residential whole loans	$ 140,951	$ 154,568	$ 284,042	$ 305,878
Securities, at fair value	52,770	28,778	98,523	53,448
Other interest-earning assets	481	528	972	926
Cash and cash equivalent investments	2,572	4,470	5,163	8,597
Interest Income	196,774	188,344	388,700	368,849
Interest Expense:
Asset-backed and other collateralized financing arrangements	133,234	122,523	261,045	240,954
Other interest expense	4,969	4,545	9,894	9,082
Interest Expense	138,203	127,068	270,939	250,036
Net Interest Income	58,571	61,276	117,761	118,813
Reversal/(Provision) for Credit Losses on Residential Whole Loans	62	(791)	304	(936)
Reversal/(Provision) for Credit Losses on Other Assets	0	0	0	0
Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses	58,633	60,485	118,065	117,877
Other Income/(Loss), net:
Net gain/(loss) on residential whole loans measured at fair value through earnings	(45,480)	23,799	(84,613)	74,449
Impairment and other net gain/(loss) on securities and other portfolio investments	(3,850)	6,645	(42,120)	27,824
Net gain/(loss) on real estate owned	(1,491)	(2,911)	(4,472)	(4,419)
Net gain/(loss) on derivatives	44,625	(18,251)	76,686	(49,306)
Net gain/(loss) on securitized debt measured at fair value through earnings	25,268	(7,105)	45,113	(29,036)
Lima One mortgage banking income	8,367	6,087	16,027	11,524
Net realized gain/(loss) on residential whole loans held at carrying value	0	(343)	0	(882)
Other, net	2,246	4,329	7,179	6,608
Other Income/(Loss), net	29,685	12,250	13,800	36,762
Operating and Other Expense:
Compensation and benefits	17,992	19,308	40,151	42,565
Other general and administrative expense	13,162	10,621	25,316	20,912
Loan servicing, financing and other related costs	10,066	8,584	19,984	15,836
Amortization of intangible assets	300	800	600	1,600
Operating and Other Expense	41,520	39,313	86,051	80,913
Income/(loss) before income taxes	46,798	33,422	45,814	73,726
Provision for/(benefit from) income taxes	0	238	0	(634)
Net Income/(Loss)	46,798	33,184	45,814	74,360
Less Preferred Stock Dividend Requirement	10,559	10,560	20,983	18,779
Net Income/(Loss) Available to Common Stock and Participating Securities	$ 36,239	$ 22,624	$ 24,831	$ 55,581
Basic Earnings/(Loss) per Common Share (in dollars per share)	$ 0.35	$ 0.22	$ 0.23	$ 0.53
Diluted Earnings/(Loss) per Common Share (in dollars per share)	$ 0.34	$ 0.21	$ 0.23	$ 0.52

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows From Operating Activities:
Net income/(loss)	$ 45,814	$ 74,360
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Net (gain)/loss on residential whole loans	65,057	(90,122)
Impairment and other net (gain)/loss on securities and other portfolio investments, net	42,120	(27,831)
Net (gain)/loss on real estate owned	4,519	4,442
Accretion of purchase discounts and amortization of purchase premiums on residential whole loans and securities	6,115	(1,187)
Provision/(reversal of provision) for credit losses on residential whole loans and other assets	(304)	936
Net (gain)/loss on derivatives	(66,846)	60,233
Net (gain)/loss on securitized debt measured at fair value through earnings	(50,197)	22,287
Net margin received/(paid) for derivatives	52,236	(95,452)
Net other non-cash (gains)/losses included in net income	33,299	42,685
(Increase)/decrease in other assets	25,932	30,003
Increase/(decrease) in other liabilities	42,118	3,540
Net cash provided by/(used in) operating activities	199,863	23,894
Cash Flows From Investing Activities:
Purchases and origination of residential whole loans, loan related investments and capitalized advances	(1,406,408)	(1,351,673)
Proceeds from sales of residential whole loans	184,356	137,032
Principal payments on residential whole loans and loan related investments	1,123,736	1,230,027
Purchases of securities	(1,107,187)	(461,825)
Proceeds from sales of securities and other assets	1,561	2,617
Principal payments on securities	276,793	128,593
Proceeds from sales of real estate owned	57,103	46,640
Other investing activities	(43,481)	(13,463)
Net cash provided by/(used in) investing activities	(913,527)	(282,052)
Cash Flows From Financing Activities:
Principal payments on financing agreements with mark-to-market collateral provisions	(1,408,544)	(1,099,127)
Proceeds from borrowings under financing agreements with mark-to-market collateral provisions	2,260,776	1,594,942
Principal payments on other collateralized financing agreements	(1,698,737)	(881,267)
Proceeds from borrowings under other collateralized financing agreements	1,604,520	705,835
Payments made for other collateralized financing agreement related costs	(8,117)	(4,119)
Payments made for settlements and unwinds of Swaps	(6,223)	(17,174)
Proceeds from issuance of preferred stock, net of expenses	5,259	0
Proceeds from issuances of common stock, net of expenses	(19)	(40)
Payments made for the repurchase of common stock	(14,159)	(5,189)
Dividends paid on preferred stock	(20,983)	(18,779)
Dividends paid on common stock and dividend equivalents	(76,555)	(73,281)
Net cash provided by/(used in) financing activities	637,218	201,801
Net increase/(decrease) in cash, cash equivalents and restricted cash	(76,446)	(56,357)
Cash, cash equivalents and restricted cash at beginning of period	386,668	601,312
Cash, cash equivalents and restricted cash at end of period	310,222	544,955
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	268,255	249,519
Non-cash Investing and Financing Activities:
Transfer from residential whole loans to real estate owned	46,988	55,734
Dividends and dividend equivalents declared and unpaid	37,570	37,510
Payable for unsettled investment purchases	0	0
Increase/(decrease) in right-of-use lease asset from lease modification	(32,581)	0
Increase/(decrease) in lease liability from lease modification	$ (36,509)	$ 0

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

Assets:

Residential whole loans, net ($7,765,065 and $7,717,007 held at fair value, respectively)

^[1],[2]

$ 8,767,868

$ 8,810,354

Securities, at fair value

^[2]

4,147,194

3,360,280

Cash and cash equivalents

141,193

213,211

Restricted cash

169,029

173,457

Other assets

^[2]

428,408

489,147

Total Assets

13,653,692

13,046,449

Liabilities:

Financing agreements ($5,812,397 and $5,956,057 held at fair value, respectively)

11,653,885

10,940,014

Other liabilities

223,719

278,740

Total Liabilities

11,877,604

11,218,754

Commitments and contingencies (See Note 9)

Stockholders’ Equity:

Common stock, $0.01 par value; 866,300 and 866,300 shares authorized, respectively; 101,088 and 101,663 shares issued and outstanding, respectively

1,011

1,017

Additional paid-in capital, in excess of par

3,718,716

3,718,350

Accumulated deficit

(1,945,991)

(1,895,541)

Accumulated other comprehensive income

2,155

3,675

Total Stockholders’ Equity

1,776,088

1,827,695

Total Liabilities and Stockholders’ Equity

13,653,692

13,046,449

Series B Preferred Stock

Stockholders’ Equity:

Preferred stock

Series C Preferred Stock

Stockholders’ Equity:

Preferred stock

$ 114

$ 113

[1]	Includes approximately $7.2 billion and $7.6 billion of Residential whole loans transferred to consolidated variable interest entities (“VIEs”) at June 30, 2026 and December 31, 2025, respectively. Such assets can be used only to settle the obligations of each respective VIE.
[2]	See Note 6 for information regarding the Company’s pledged assets.