MFA Financial Reports Q3 2024 Financials

TL;DR

MFA Financial's Q3 2024 10-Q shows their capital structure with preferred stocks and senior notes.

AI Summary

MFA Financial, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial position, including its real estate investment trust (REIT) operations. Key financial instruments and liabilities, such as various series of preferred stock and senior notes, are listed, indicating the company's capital structure and ongoing financial obligations.

Why It Matters

This filing provides insight into MFA Financial's financial health and its exposure to real estate and debt markets, which can impact investors and the broader financial sector.

Risk Assessment

Risk Level: medium — The company operates in the real estate investment trust sector, which is sensitive to interest rate changes and market volatility.

Key Players & Entities

• MFA FINANCIAL, INC. (company) — Filer
• 20240930 (date) — Period of Report
• 2122076400 (dollar_amount) — Business Phone
• A7.50SeriesBCumulativeRedeemablePreferredStockMember (company) — Preferred Stock Series
• A6.50SeriesCCumulativeRedeemablePreferredStockMember (company) — Preferred Stock Series
• A8.875SeniorNotesDue2029Member (company) — Senior Notes Series

FAQ

Key Financial Figures

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

Filing Documents

• mfa-20240930.htm (10-Q) — 4755KB
• exhibit311certificationofc.htm (EX-31.1) — 14KB
• exhibit312certificationofc.htm (EX-31.2) — 14KB
• exhibit321certificationofc.htm (EX-32.1) — 7KB
• exhibit322certificationofc.htm (EX-32.2) — 7KB
• 0001055160-24-000023.txt ( ) — 22430KB
• mfa-20240930.xsd (EX-101.SCH) — 121KB
• mfa-20240930_cal.xml (EX-101.CAL) — 118KB
• mfa-20240930_def.xml (EX-101.DEF) — 769KB
• mfa-20240930_lab.xml (EX-101.LAB) — 1073KB
• mfa-20240930_pre.xml (EX-101.PRE) — 976KB
• mfa-20240930_htm.xml (XML) — 5090KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of September 3 0 , 202 4 (Unaudited) and December 31, 20 23 3 Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30 , 202 4 and September 30 , 20 2 3 4 Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) for the Three and N ine Months Ended September 30 , 202 4 and September 30 , 202 3 5 Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three and Nine Months Ended September 30 , 202 4 and September 30 , 202 3 6 Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30 , 202 4 and September 30 , 202 3 8 Notes to the Unaudited Consolidated Financial Statements 9 Note 1. Organization 9 Note 2. Summary of Significant Accounting Policies 9 Note 3. Residential Whole Loans 18 Note 4. Securities, at Fair Value 26 Note 5. Other Assets 29 Note 6. Financing Agreements 34 Note 7. Other Liabilities 39 Note 8. Income Taxes 39 Note 9. Commitments and Contingencies 41 Note 10. Stockholders' Equity 42 Note 11. EPS Calculation 46 Note 12. Equity Compensation and Other Benefit Plans 46 Note 13. Fair Value of Financial Instruments 48 Note 14. Use of Special Purpose Entities and Variable Interest Entities 55 Note 15. Segment Reporting 57 Note 16. Subsequent Events 61 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 62 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 91 Item 4.

Controls and Procedures

Controls and Procedures 95

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 95 Item 1A.

Risk Factors

Risk Factors 95 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 96 Item 3. Defaults Upon Senior Securities 96 Item 4. Mine Safety Disclosures 96 Item 5. Other Information 96 Item 6. Exhibits 96

Signatures

Signatures 98 2 Table of Contents MFA FINANCIAL, INC. CONSOLIDATED BALANCE SHEETS (In Thousands Except Per Share Amounts) September 30, 2024 December 31, 2023 (Unaudited) Assets: Residential whole loans, net ($ 7,674,741 and $ 7,511,508 held at fair value, respectively) (1)(2) $ 9,027,371 $ 9,041,292 Securities, at fair value (2) 1,140,036 746,090 Cash and cash equivalents 305,560 318,000 Restricted cash 197,348 170,211 Other assets (2) 489,531 497,097 Total Assets $ 11,159,846 $ 10,772,690 Liabilities: Financing agreements ($ 5,097,002 and $ 4,633,660 held at fair value, respectively) $ 8,922,502 $ 8,536,745 Other liabilities 356,876 336,030 Total Liabilities $ 9,279,378 $ 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; 102,083 and 101,916 shares issued and outstanding, respectively 1,021 1,019 Additional paid-in capital, in excess of par 3,709,534 3,698,767 Accumulated deficit ( 1,840,399 ) ( 1,817,759 ) Accumulated other comprehensive income 10,122 17,698 Total Stockholders' Equity $ 1,880,468 $ 1,899,915 Total Liabilities and Stockholders' Equity $ 11,159,846 $ 10,772,690 (1) Includes approximately $ 6.3 billion and $ 5.7 billion of Residential whole loans transferred to consolidated variable interest entities ("VIEs") at September 30, 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

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