MFA Financial, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>MFA Financial, Inc. filed its Q1 2024 10-Q report, detailing financial positions and key debt instruments.</b>

AI Summary

MFA FINANCIAL, INC. (MFAO) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. MFA Financial, Inc. reported its Q1 2024 results on May 6, 2024. The filing details financial data for the period ending March 31, 2024. Key financial instruments mentioned include Series B and Series C Cumulative Redeemable Preferred Stock. Senior Notes due in 2029, with coupon rates of 8.875% and 9.00%, are also listed. The company's fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking MFA FINANCIAL, INC., this filing contains several important signals. This filing provides investors with the latest financial performance and capital structure of MFA Financial, Inc. for the first quarter of 2024. Understanding the details of preferred stock and senior notes is crucial for assessing the company's financial health and risk profile.

Risk Assessment

Risk Level: medium — MFA FINANCIAL, INC. shows moderate risk based on this filing. The company's financial structure includes significant amounts of preferred stock and senior notes, which represent fixed obligations and potential financial risk if market conditions or company performance deteriorate.

Analyst Insight

Investors should review the detailed balance sheet and debt schedules to understand MFA Financial's leverage and interest rate sensitivity.

Key Numbers

• 2024-03-31 — Conformed Period of Report (10-Q Filing)
• 2024-05-06 — Filed As Of Date (10-Q Filing)
• 6798 — Standard Industrial Classification (Real Estate Investment Trusts)
• 133974868 — IRS Number (MFA Financial, Inc.)
• 2024-01-01 — Quarter Start Date (Q1 2024)
• 2024-03-31 — Quarter End Date (Q1 2024)

Key Players & Entities

• MFA FINANCIAL, INC. (company) — Filer
• 2024-03-31 (date) — Conformed Period of Report
• 2024-05-06 (date) — Filed as of date
• 350 PARK AVENUE (address) — Business Address Street 1
• NEW YORK (location) — Business Address City
• MD (location) — State of Incorporation
• 2122076400 (phone) — Business Phone
• MFA MORTGAGE INVESTMENTS (company) — Former Company Name

FAQ

Key Dates

• 2024-03-31: Quarter End Date — End of reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a snapshot of the company's financial performance and position during the quarter.)

Cumulative Redeemable Preferred Stock

A class of stock that pays a fixed dividend and has a redemption feature, with dividends accumulating if not paid. (Represents a significant financial obligation for MFA Financial and impacts its capital structure.)

Senior Notes

Debt instruments that have a higher priority claim on assets than subordinated debt or equity in the event of bankruptcy. (Indicates the company's use of debt financing and its associated interest rate risk and repayment obligations.)

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share MFA New York Stock Exchange

Filing Documents

• mfa-20240331.htm (10-Q) — 3939KB
• exhibit311certificationofc.htm (EX-31.1) — 14KB
• exhibit312certificationofc.htm (EX-31.2) — 14KB
• exhibit321certificationofc.htm (EX-32.1) — 7KB
• exhibit322certificationofc.htm (EX-32.2) — 8KB
• 0001055160-24-000012.txt (&nbsp;) — 19515KB
• mfa-20240331.xsd (EX-101.SCH) — 118KB
• mfa-20240331_cal.xml (EX-101.CAL) — 118KB
• mfa-20240331_def.xml (EX-101.DEF) — 699KB
• mfa-20240331_lab.xml (EX-101.LAB) — 1055KB
• mfa-20240331_pre.xml (EX-101.PRE) — 908KB
• mfa-20240331_htm.xml (XML) — 4272KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of March 31 , 202 4 (Unaudited) and December 31, 20 23 1 Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31 , 202 4 and March 31 , 20 2 3 2 Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) for the Three Months Ended March 31 , 202 4 and March 31 , 202 3 3 Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three Months Ended March 31 , 202 4 and March 31 , 202 3 4 Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31 , 202 4 and March 31 , 202 3 5 Notes to the Unaudited Consolidated Financial Statements 6 Note 1. Organization 6 Note 2. Summary of Significant Accounting Policies 6 Note 3. Residential Whole Loans 15 Note 4. Securities, at Fair Value 20 Note 5. Other Assets 24 Note 6. Financing Agreements 28 Note 7. Other Liabilities 33 Note 8. Income Taxes 33 Note 9. Commitments and Contingencies 35 Note 10. Stockholders' Equity 36 Note 11. EPS Calculation 40 Note 12. Equity Compensation and Other Benefit Plans 40 Note 13. Fair Value of Financial Instruments 42 Note 14. Use of Special Purpose Entities and Variable Interest Entities 50 Note 15. Segment Reporting 52 Note 16. Subsequent Events 54 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 55 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 83 Item 4.

Controls and Procedures

Controls and Procedures 87

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 87 Item 1A.

Risk Factors

Risk Factors 87 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 88 Item 3. Defaults Upon Senior Securities 88 Item 4. Mine Safety Disclosures 88 Item 5. Other Information 88 Item 6. Exhibits 89

Signatures

Signatures 90 Table of Contents MFA FINANCIAL, INC. CONSOLIDATED BALANCE SHEETS (In Thousands Except Per Share Amounts) March 31, 2024 December 31, 2023 (Unaudited) Assets: Residential whole loans, net ($ 7,653,907 and $ 7,511,508 held at fair value, respectively) (1)(2) $ 9,118,665 $ 9,041,292 Securities, at fair value (2) 736,950 746,090 Cash and cash equivalents 306,266 318,000 Restricted cash 222,905 170,211 Other assets (2) 489,344 497,097 Total Assets $ 10,874,130 $ 10,772,690 Liabilities: Financing agreements ($ 4,641,438 and $ 4,633,660 held at fair value, respectively) $ 8,685,916 $ 8,536,745 Other liabilities 304,027 336,030 Total Liabilities $ 8,989,943 $ 8,872,775 Commitments and contingencies (See Note 9) Stockholders' Equity: Preferred stock, $ 0.01 par value; 7.5 % Series B cumulative redeemable; 8,050 shares authorized; 8,000 shares issued and outstanding ($ 200,000 aggregate liquidation preference) $ 80 $ 80 Preferred stock, $ 0.01 par value; 6.5 % Series C fixed-to-floating rate cumulative redeemable; 12,650 shares authorized; 11,000 shares issued and outstanding ($ 275,000 aggregate liquidation preference) 110 110 Common stock, $ 0.01 par value; 874,300 and 874,300 shares authorized; 102,082 and 101,916 shares issued and outstanding, respectively 1,021 1,019 Additional paid-in capital, in excess of par 3,703,242 3,698,767 Accumulated deficit ( 1,839,792 ) ( 1,817,759 ) Accumulated other comprehensive income 19,526 17,698 Total Stockholders' Equity $ 1,884,187 $ 1,899,915 Total Liabilities and Stockholders' Equity $ 10,874,130 $ 10,772,690 (1) Includes approximately $ 5.7 billion and $ 5.7 billion of Residential whole loans transferred to consolidated variable interest entities ("VIEs") at March 31, 2024 and December 31, 2023, 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. The accompanying

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