MFA Financial, Inc. (NYSE: MFA) has released its financial results for the fourth quarter and full year ended December 31, 2025. Here are the key highlights and changes since the last period:
Fourth Quarter 2025: GAAP net income to common stockholders and participating securities was $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. GAAP book value at December 31, 2025, stood at $13.20 per common share, while economic book value, a non-GAAP financial measure, was $13.75 per common share. Total economic return for the quarter was 3.1%. * MFA closed the quarter with unrestricted cash of $213.2 million.
Full Year 2025: 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 in 2024. Distributable earnings for the full year were $104.0 million, or $1.00 per common share. * Total economic return for 2025 was 9.0%.
Loan Acquisition and Portfolio Activity: Loan acquisition activity in 2025 included $2.7 billion, with specific segments such as non-QM loans, single-family transitional loans, and single-family rental loans contributing significantly. MFA saw a decline in 60+ day delinquencies for its residential loan portfolio to 7.1% at December 31, 2025, from 7.5% at December 31, 2024. * The company purchased $2.1 billion of agency MBS throughout 2025.
Financial Metrics: 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.
New Initiatives: * MFA announced a new $200 million stock repurchase program for its common stock, which will be in effect through the end of 2028.
Asset Allocation and Net Interest Spread: MFA's asset allocation as of December 31, 2025, indicated a total debt/net equity ratio of 6.0x. The net interest spread for various asset types showed changes in net yield, cost of funding, and net interest spread compared to the previous periods.
Residential Mortgage Asset Portfolio: The company's residential investment portfolio rose to $12.3 billion at December 31, 2025, from $11.2 billion at September 30, 2025. The total residential whole loans at December 31, 2025, amounted to $8,810.4 million, with specific changes in yields and average balances compared to previous periods.
Credit-Related Metrics: * Non-QM loans showed a 60+ day delinquency rate of 4.2% at December 31, 2025, compared to 4.5% at September 30, 2025.
These figures and metrics provide a detailed insight into MFA Financial, Inc.'s performance and strategic initiatives during the specified periods. Following these announcements, the company's shares moved 1.92%, and are now trading at a price of $10.10. For the full picture, make sure to review MFA FINANCIAL, INC.'s 8-K report.
