MFA Financial, Inc. Announces Third Quarter 2026 Financial Results

At September 30, 2026

Non-QM loans

Single-family rental loans

Single-family transitional loans

Multifamily transitional loans

Seasoned RPL/NPL loans

Agency MBS

Other,

net (1)

Total

(Dollars in Millions)

Asset Amount

$

5,760

$

1,057

$

678

$

263

$

880

$

3,923

$

585

$

13,146

Net Receivable/(Payable) for Unsettled Transactions

—

—

—

—

—

(10

)

—

(10

)

Financing Agreements with Non-mark-to-market Collateral Provisions

—

(9

)

(47

)

(3

)

—

—

—

(59

)

Financing Agreements with Mark-to-market Collateral Provisions

(1,029

)

(75

)

(323

)

(194

)

(46

)

(3,523

)

(112

)

(5,302

)

Securitized Debt

(4,109

)

(862

)

(198

)

—

(740

)

—

(31

)

(5,940

)

Senior Notes and Other secured financing

—

—

—

—

—

—

(219

)

(219

)

Net Equity Allocated

$

622

$

111

$

110

$

66

$

94

$

390

$

223

$

1,616

Debt/Net Equity Ratio (2)

8.3x

8.5x

5.2x

3.0x

8.4x

9.1x

7.1x

(1)

Includes $119.5 million of cash and cash equivalents, $207.3 million of restricted cash, $54.4 million of other securities, $44.7 million of Other loans and $21.1 million of capital contributions made to loan origination partners, as well as other assets and other liabilities.

(2)

Total Debt/Net Equity ratio represents the sum of borrowings under our financing agreements as a multiple of net equity allocated.

For the Three-Month Period Ended

September 30, 2026

June 30, 2026

September 30, 2025

Non-QM Loans

Net Yield (1)

5.86

%

5.79

%

5.95

%

Cost of Funding (2)

(5.14

)%

(5.09

)%

(5.21

)%

Impact of net Swap carry (3)

0.29

%

0.28

%

0.62

%

Net Interest Spread

1.01

%

0.98

%

1.36

%

Business Purpose Loans

Net Yield (1)

7.50

%

7.24

%

7.91

%

Cost of Funding (2)

(5.40

)%

(5.42

)%

(6.03

)%

Impact of net Swap carry (3)

0.24

%

0.29

%

0.49

%

Net Interest Spread

2.34

%

2.11

%

2.37

%

Seasoned RPL/NPL Loans

Net Yield (1)

7.52

%

7.74

%

8.55

%

Cost of Funding (2)

(4.06

)%

(4.26

)%

(4.32

)%

Impact of net Swap carry (3)

0.29

%

0.36

%

0.52

%

Net Interest Spread

3.75

%

3.84

%

4.75

%

Total Residential Whole Loans

Net Yield (1)

6.39

%

6.33

%

6.82

%

Cost of Funding (2)

(5.08

)%

(5.08

)%

(5.36

)%

Impact of net Swap carry (3)

0.28

%

0.29

%

0.58

%

Net Interest Spread

1.59

%

1.54

%

2.04

%

Securities, at fair value

Net Yield (1)

5.41

%

5.41

%

5.79

%

Cost of Funding (2)

(3.81

)%

(3.78

)%

(4.50

)%

Impact of net Swap carry (3)

0.62

%

0.57

%

1.05

%

Net Interest Spread

2.22

%

2.20

%

2.34

%

Total Balance Sheet

Net Yield (1)

6.01

%

5.98

%

6.50

%

Cost of Funding (2)

(4.76

)%

(4.77

)%

(5.29

)%

Impact of net Swap carry (3)

0.38

%

0.37

%

0.65

%

Net Interest Spread

1.63

%

1.58

%

1.86

%

(1)

Reflects annualized interest income divided by average amortized cost. Excludes servicing costs.

(2)

Reflects annualized interest expense divided by average balance of agreements with mark-to-market collateral provisions (repurchase agreements), agreements with non-mark-to-market collateral provisions, and securitized debt.

(3)

Reflects the difference between Swap interest income received and Swap interest expense paid on our Swaps. While we have not elected hedge accounting treatment for Swaps, and, accordingly, net Swap carry is not presented in interest expense in our consolidated statement of operations, we believe it is appropriate to allocate net Swap carry by asset class to reflect the economic impact of our Swaps on the net interest spread shown in the table above.

(In Millions)

June 30,
2026

Runoff (1)

Acquisitions & Originations (2)

Other (3)

September 30,
2026

Change

Residential whole loans and REO

$

8,896

$

(534

)

$

735

$

(283

)

$

8,814

$

(82

)

Securities, at fair value

4,147

(80

)

884

(973

)

3,978

(169

)

Total

$

13,043

$

(614

)

$

1,619

$

(1,256

)

$

12,792

$

(251

)

(1)

Primarily includes principal repayments and sales of REO.

(2)

Includes draws on previously originated Transitional loans.

(3)

Primarily includes sales of residential whole loans and securities, changes in fair value and changes in the allowance for credit losses.

Held at Carrying Value

Held at Fair Value

Total

(Dollars in Thousands)

September 30,
2026

December 31,
2025

September 30,
2026

December 31,
2025

September 30,
2026

December 31,
2025

Non-QM loans

$

502,529

$

593,213

$

5,259,245

$

4,753,480

$

5,761,774

$

5,346,693

Business purpose loans:

Single-family rental loans

$

72,058

$

88,112

$

986,036

$

1,147,234

$

1,058,094

$

1,235,346

Single-family transitional loans (1)

6,013

7,051

672,444

711,294

678,457

718,345

Multifamily transitional loans

—

—

263,448

489,637

263,448

489,637

Total Business purpose loans

$

78,071

$

95,163

$

1,921,928

$

2,348,165

$

1,999,999

$

2,443,328

Seasoned RPL/NPL loans

384,963

414,676

500,355

564,340

885,318

979,016

Other loans

—

—

44,738

51,022

44,738

51,022

Allowance for Credit Losses

(7,953

)

(9,705

)

—

—

(7,953

)

(9,705

)

Total Residential whole loans

$

957,610

$

1,093,347

$

7,726,266

$

7,717,007

$

8,683,876

$

8,810,354

Number of loans

4,506

4,941

18,778

18,824

23,284

23,765

(1)

Includes $348.4 million and $300.2 million of loans collateralized by new construction projects at origination as of September 30, 2026 and December 31, 2025, respectively.

For the Three-Month Period Ended

September 30, 2026

June 30, 2026

September 30, 2025

(Dollars in Thousands)

Interest

Average Balance

Average Yield

Interest

Average Balance

Average Yield

Interest

Average Balance

Average Yield

Non-QM loans

$

87,245

$

5,959,103

5.86

%

$

83,019

$

5,735,430

5.79

%

$

76,742

$

5,162,278

5.95

%

Business purpose loans:

Single-family rental loans

$

17,892

$

1,143,035

6.26

%

$

18,190

$

1,199,977

6.06

%

$

21,637

$

1,302,703

6.64

%

Single-family transitional loans

15,771

683,932

9.22

%

16,168

683,649

9.46

%

19,155

835,895

9.17

%

Multifamily transitional loans

6,877

334,267

8.23

%

7,056

405,227

6.97

%

15,402

704,298

8.75

%

Total business purpose loans

$

40,540

$

2,161,234

7.50

%

$

41,414

$

2,288,853

7.24

%

$

56,194

$

2,842,896

7.91

%

Seasoned RPL/NPL loans

15,850

843,368

7.52

%

16,748

865,419

7.74

%

20,086

939,653

8.55

%

Other loans

430

59,166

2.90

%

443

59,903

2.96

%

479

62,786

3.05

%

Total Residential whole loans

$

144,065

$

9,022,871

6.39

%

$

141,624

$

8,949,605

6.33

%

$

153,501

$

9,007,613

6.82

%

Aging by UPB

Past Due Days

(Dollars In Thousands)

Asset Amount

Fair Value

Unpaid Principal Balance (“UPB”)

Weighted Average Coupon (1) (2)

Weighted Average Term to Maturity (Months)

Weighted Average LTV Ratio (3)

Weighted Average Original FICO (4)

Current

30-59

60-89

90+

60+

DQ

%

60+

LTV

(5)

Non-QM loans

$

5,760,356

$

5,736,465

$

5,905,880

6.71

%

336

64

%

741

$

5,513,287

$

130,656

$

54,963

$

206,974

4.4

%

67

%

Business purpose loans:

Single-family rental

$

1,057,222

$

1,057,305

$

1,105,465

6.34

%

302

65

%

740

$

1,049,963

$

24,563

$

2,686

$

28,253

2.8

%

64

%

Single-family transitional (5)

678,052

678,325

692,847

9.93

%

7

68

%

756

597,146

21,141

3,966

70,594

10.8

%

84

%

Multifamily transitional (5)

263,448

263,448

298,916

10.04

%

1

95

%

751

211,256

16,887

8,755

62,018

23.7

%

156

%

Total business purpose loans

$

1,998,722

$

1,999,078

$

2,097,228

8.07

%

70

%

$

1,858,365

$

62,591

$

15,407

$

160,865

8.4

%

Seasoned RPL/NPL loans

880,060

880,365

1,016,119

5.08

%

239

52

%

646

747,447

97,192

39,152

132,328

16.9

%

58

%

Other loans

44,738

44,738

56,643

3.44

%

299

62

%

758

56,275

—

368

—

0.6

%

61

%

Residential whole loans, total or weighted average

$

8,683,876

$

8,660,646

$

9,075,870

6.84

%

64

%

$

8,175,374

$

290,439

$

109,890

$

500,167

6.7

%

Weighted average is calculated based on the interest-bearing principal balance of each loan within the related category. For loans acquired with servicing rights released by the seller, interest rates included in the calculation do not reflect loan servicing fees. For loans acquired with servicing rights retained by the seller, interest rates included in the calculation are net of servicing fees. Certain Transitional Loans contain contractual features which increase the loan’s interest rate following an event of default. The weighted average coupon presented is calculated based on each loan’s coupon rate without regard to post-default rate adjustments.

(2)

For the quarter ended September 30, 2026, the gross coupon was 6.83% for Non-QM loans, 6.37% for Single-family rental loans, 9.94% for Single-family transitional loans, 10.06% for Multifamily transitional loans, and 5.09% for Seasoned RPL/NPL loans.

(3)

LTV represents the ratio of the total unpaid principal balance of the loan to the estimated value of the collateral securing the related loan as of the most recent date available, which may be the origination date. Excluded from the calculation of weighted average are certain low value loans secured by vacant lots, for which the LTV ratio is not meaningful.

(4)

Excludes loans for which no Fair Isaac Corporation (“FICO”) score is available.

(5)

For Single-family and Multifamily transitional loans that are less than 90 days delinquent, the LTV presented is generally the ratio of the maximum unpaid principal balance of the loan, including unfunded commitments, to the estimated “after repaired” value of the collateral securing the related loan, as of the most recent date available, which may be the origination date. For Single-family and Multifamily transitional loans that are 90 or more days delinquent, as well as certain performing loans for which an after repaired valuation was not available, the LTV presented is the ratio of the current unpaid principal balance of the loan to the estimated as-is value of the collateral securing the related loan as of the most recent date available, which may be the origination date.

Change in Interest Rates

Percentage Change in Net Portfolio Value

Percentage Change in Total Stockholders' Equity

+100 Basis Point Increase

(1.25

)%

(10.87

)%

+ 50 Basis Point Increase

(0.58

)%

(5.09

)%

Actual as of September 30, 2026

—

%

—

%

- 50 Basis Point Decrease

0.50

%

4.41

%

-100 Basis Point Decrease

0.93

%

8.12

%

MFA FINANCIAL, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Per Share Amounts)

September 30, 2026

December 31, 2025

(Unaudited)

Assets:

Residential whole loans, net ($7,726,266 and $7,717,007 held at fair value, respectively) (1)

$

8,683,876

$

8,810,354

Securities, at fair value

3,977,565

3,360,280

Cash and cash equivalents

119,548

213,211

Restricted cash

207,318

173,457

Other assets

552,981

489,147

Total Assets

$

13,541,288

$

13,046,449

Liabilities:

Financing agreements ($5,545,908 and $5,956,057 held at fair value, respectively)

$

11,520,131

$

10,940,014

Other liabilities

405,448

278,740

Total Liabilities

$

11,925,579

$

11,218,754

Stockholders’ Equity:

Preferred stock, $0.01 par value; 7.5% Series B cumulative redeemable; 12,050 and 12,050 shares authorized, respectively; 8,296 and 8,125 shares issued and outstanding, respectively ($207,402 and $203,132 aggregate liquidation preference, respectively)

$

83

$

81

Preferred stock, $0.01 par value; 6.5% Series C fixed-to-floating rate cumulative redeemable; 16,650 and 16,650 shares authorized, respectively; 11,386 and 11,286 shares issued and outstanding, respectively ($284,648 and $282,148 aggregate liquidation preference, respectively)

114

113

Common stock, $0.01 par value; 866,300 and 866,300 shares authorized, respectively; 101,041 and 101,663 shares issued and outstanding, respectively

1,010

1,017

Additional paid-in capital, in excess of par

3,720,085

3,718,350

Accumulated deficit

(2,106,827

)

(1,895,541

)

Accumulated other comprehensive income

1,244

3,675

Total Stockholders’ Equity

$

1,615,709

$

1,827,695

Total Liabilities and Stockholders’ Equity

$

13,541,288

$

13,046,449

(1)

Includes approximately $6.9 billion and $7.6 billion of Residential whole loans transferred to consolidated variable interest entities (“VIEs”) at September 30, 2026 and December 31, 2025, respectively. Such assets can be used only to settle the obligations of each respective VIE.

MFA FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In Thousands, Except Per Share Amounts)

2026

2025

2026

2025

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Interest Income:

Residential whole loans

$

144,065

$

153,501

$

429,130

$

460,490

Securities, at fair value

57,050

27,708

155,573

81,156

Other interest-earning assets

469

515

1,441

1,441

Cash and cash equivalent investments

2,323

4,278

7,486

12,875

Interest Income

$

203,907

$

186,002

$

593,630

$

555,962

Interest Expense:

Asset-backed and other collateralized financing arrangements

$

137,441

$

124,403

$

398,486

$

365,357

Other interest expense

5,062

4,598

14,956

13,680

Interest Expense

$

142,503

$

129,001

$

413,442

$

379,037

Net Interest Income

$

61,404

$

57,001

$

180,188

$

176,925

Reversal/(Provision) for Credit Losses on Residential Whole Loans

$

(45

)

$

(276

)

$

259

$

(1,212

)

Reversal/(Provision) for Credit Losses on Other Assets

—

—

—

—

Net Interest Income after Reversal/(Provision) for Credit Losses

$

61,359

$

56,725

$

180,447

$

175,713

Other Income/(Loss), net:

Net gain/(loss) on residential whole loans measured at fair value through earnings

$

(203,991

)

$

31,241

$

(288,605

)

$

105,690

Impairment and other net gain/(loss) on securities and other portfolio investments

(223,303

)

18,004

(265,423

)

45,828

Net gain/(loss) on real estate owned

(2,788

)

300

(7,260

)

(4,119

)

Net gain/(loss) on derivatives

158,845

200

235,532

(49,106

)

Net gain/(loss) on securitized debt measured at fair value through earnings

115,540

(24,646

)

160,653

(53,682

)

Lima One mortgage banking income

7,418

5,383

22,422

15,796

Net realized gain/(loss) on residential whole loans held at carrying value

—

—

—

(882

)

Other, net

2,409

266

9,588

6,874

Other Income/(Loss), net

$

(145,870

)

$

30,748

$

(133,093

)

$

66,399

Operating and Other Expense:

Compensation and benefits

$

15,892

$

18,185

$

56,043

$

60,750

Other general and administrative expense

7,742

10,769

33,058

31,681

Loan servicing, financing and other related costs

3,445

10,216

23,429

26,052

Amortization of intangible assets

100

300

700

1,900

Operating and Other Expense

$

27,179

$

39,470

$

113,230

$

120,383

Income/(loss) before income taxes

$

(111,690

)

$

48,003

$

(65,876

)

$

121,729

Provision for/(benefit from) income taxes

$

—

$

(101

)

$

—

$

(735

)

Net Income/(Loss)

$

(111,690

)

$

48,104

$

(65,876

)

$

122,464

Less Preferred Stock Dividend Requirement

$

10,682

$

10,834

$

31,665

$

29,613

Net Income/(Loss) Available to Common Stock and Participating Securities

$

(122,372

)

$

37,270

$

(97,541

)

$

92,851

Basic Earnings/(Loss) per Common Share

$

(1.19

)

$

0.36

$

(0.95

)

$

0.89

Diluted Earnings/(Loss) per Common Share

$

(1.19

)

$

0.35

$

(0.95

)

$

0.87

(In Thousands)

Mortgage-Related Assets

Lima One

Corporate

Total

Three months ended September 30, 2026

Interest Income

$

163,073

$

39,457

$

1,377

$

203,907

Interest Expense

113,973

23,945

4,585

142,503

Net Interest Income/(Expense)

$

49,100

$

15,512

$

(3,208

)

$

61,404

Reversal/(Provision) for Credit Losses on Residential Whole Loans

(45

)

—

—

(45

)

Reversal/(Provision) for Credit Losses on Other Assets

—

—

—

—

Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses

$

49,055

$

15,512

$

(3,208

)

$

61,359

Net gain/(loss) on residential whole loans measured at fair value through earnings

$

(157,729

)

$

(46,262

)

$

—

$

(203,991

)

Impairment and other net gain/(loss) on securities and other portfolio investments

(223,345

)

42

—

(223,303

)

Net gain on real estate owned

478

(3,266

)

—

(2,788

)

Net gain/(loss) on derivatives

144,175

14,670

—

158,845

Net gain/(loss) on securitized debt measured at fair value through earnings

92,940

22,600

—

115,540

Lima One mortgage banking income

—

7,418

—

7,418

Net realized gain/(loss) on residential whole loans held at carrying value

—

—

—

—

Other, net

329

1,044

1,036

2,409

Other Income/(Loss), net

$

(143,152

)

$

(3,754

)

$

1,036

$

(145,870

)

Compensation and benefits

$

—

$

8,486

$

7,406

$

15,892

Other general and administrative expense

—

4,071

3,671

7,742

Loan servicing, financing and other related costs

92

1,568

1,785

3,445

Amortization of intangible assets

—

100

—

100

Income/(loss) before income taxes

$

(94,189

)

$

(2,467

)

$

(15,034

)

$

(111,690

)

Provision for/(benefit from) income taxes

—

—

—

—

Net Income/(Loss)

$

(94,189

)

$

(2,467

)

$

(15,034

)

$

(111,690

)

Less Preferred Stock Dividend Requirement

$

—

$

—

$

10,682

$

10,682

Net Income/(Loss) Available to Common Stock and Participating Securities

$

(94,189

)

$

(2,467

)

$

(25,716

)

$

(122,372

)