MFA Financial Reports $41.2 Million Net Income and Increases Dividend to $0.36 per Share

MFA Financial, Inc. reported a net income of $41.2 million for the first quarter of 2025, translating to earnings of $0.32 per basic share, a significant increase from the $23.2 million, or $0.14 per share, recorded in the same period last year. The company's total interest income rose to $180.5 million, up from $176.8 million year-over-year, driven primarily by a 25% increase in interest income from securities, which reached $24.7 million. This growth was partially offset by a decline in interest income from residential whole loans, which fell to $151.3 million from $157.7 million, reflecting a decrease in the average balance of the loan portfolio.

Compared to the previous quarter, MFA Financial's net interest income increased by $6.7 million to $57.5 million, attributed to a reduction in interest expenses, which decreased to $123.0 million from $127.5 million. The company also recorded a reversal of provision for credit losses on residential whole loans of $0.1 million, an improvement from a provision of $0.4 million in the prior quarter. Other income, which includes net gains on residential whole loans measured at fair value, significantly improved to $24.5 million from a loss of $7.1 million in the previous quarter, primarily due to a recovery in the fair value of residential whole loans.

MFA Financial's total assets stood at approximately $11.5 billion as of March 31, 2025, with residential whole loans and REO comprising $8.9 billion, or 76% of total assets. The company has continued to focus on its residential mortgage asset portfolio, which includes a mix of Non-QM loans, transitional loans, and legacy re-performing/non-performing loans. The company also reported a total of $1.8 billion in securities at fair value, including Agency MBS and CRT securities.

Strategically, MFA Financial has been enhancing its operations through its subsidiary, Lima One, which originated $213 million in business purpose loans during the quarter. The company has also made significant investments in technology and personnel to support growth. The board of directors increased the common stock dividend to $0.36 per share, reflecting confidence in the company's earnings potential. Looking ahead, MFA Financial remains focused on managing interest rate risk and credit risk while pursuing opportunities for growth in its mortgage asset portfolio.