Mfa Financial, Inc. · NYSE:MFA
Mfa Financial — Q2 2025 Earnings Presentation
20 slides from Mfa Financial's earnings presentation, Aug 6, 2025
Slide 1: Earnings Presentation Second Quarter 2025
Earnings Presentation SECOND QUARTER 2025
Slide 2: Forward-looking statements
Q3 2022 Financial Snapshot Forward-looking statements When used in this presentation or other written or oral communications, statements that are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “s
Slide 3: Q2 Financial Highlights
Q3 2022 Financial Snapshot Q2 Financial Highlights Hybrid mortgage REIT with extensive experience in managing residential mortgage assets through economic cycles GAAP Book Value Economic Book Value1 Total Economic Return2 Recourse Leverage3 Metrics $13.12 $13.69 1.5% 1.8x Key per common share per co
Slide 4: Q2 Portfolio Highlights
Q3 2022 Financial Snapshot Q2 Portfolio Highlights Q2 Portfolio Activity Investment Portfolio at June 307 Acquired $876M of residential mortgage loans and securities, growing investment portfolio to $10.8B Purchased $503M of Non-QM loans, including from two new originator relationships Other Mul
Slide 5: Q2 Liability Highlights
Q2 Liability Highlights Liability Activity Loan Funding Sources All Liabilities $10.0 Overall leverage rose to 5.2x while recourse leverage remained 1.8x 2% 15% 13% Agency $9.0 Effective cost of funds remained stable at 4.68% 24% 21% Repo 1% $3.2B MTM Issued our 18th Non-QM securitization in M
Slide 6: Q2 Lima One Highlights
Q3 2022 Financial Snapshot Q2 Lima One Highlights Single-family Transitional New Construction Loans New Rehab Loans New Bridge Loans Average Coupon $72M $63M $32M 10.2% for Q2 originations Total Origination Volume6 $217M Single-family Rental Loans Originated Rental Loans Sold Gain-on-sale Income Ave
Slide 7: Q2 Loan Portfolio Credit Metrics
Q3 2022 Financial Snapshot Q2 Loan Portfolio Credit Metrics LTV by Loan Product Type9 LTV Distribution9 State Concentration10 68% $2.5B 64% $2.4B $2.0B 60% 59% CA 59% 29% $1.5B Other 44% 50% $0.4B $0.1B $0.1B FL 15% NY TX Non-QM Loans SFR Loans Single-family Multifamily Legacy Total <50% 50-60% 60-7
Slide 8: Q2 Loan Portfolio Statistics
Q3 2022 Financial Snapshot Q2 Loan Portfolio Statistics Non-QM Single-family Single-family Multifamily Legacy RPL/NPL Loans Rental Loans Transitional Loans Transitional Loans Loans Q2 2025 Highlights Portfolio Statistics as of June 30, 2025 Non-QM Loans: UPB $4.88B $1.32B $886M $765M $1.16B Acqu
Slide 9: Q2 Agency MBS
Q3 2022 Financial Snapshot Q2 Agency MBS Portfolio Statistics As of June 30, 2025 Highlights Current face $1.74B Added $131M of Agency MBS Fair value $1.75B Purchases consisted primarily of low pay-up (premium to TBA price) pools that provide Coupon 5.58% some prepayment protection Quarterly yie
Slide 10: Appendix
Appendix 10with Houses James Casebere, Landscape (Dutchess County, NY) #2, 2010 (detail)
Slide 11: MFA Overview
MFA Overview MFA Financial, Inc. (NYSE: MFA) is an internally managed real estate investment trust (REIT) that invests in U.S. residential mortgage loans and mortgage-backed securities MFA focuses primarily on mortgage subsectors in which it tries to avoid direct competition with banks and gover
Slide 12: Lima One: Leading Nationwide BPL Originator and Servicer
Lima One: Leading Nationwide BPL Originator and Servicer Fully Integrated BPL Platform Product Offerings Lima One is an industry-leading business purpose lender wholly-owned by MFA and Lima One offers a diverse selection of both short-term and long-term financing headquartered in Greenville, S.C
Slide 13: Select Financial Metrics
Select Financial Metrics Asset Yield Net Interest Spread GAAP vs. Economic Book Value 6.79% 6.71% 6.66% 7.0% 6.46% 6.52% 2.5% $15 2.16% 2.18% 6.0% 1.99% 1.98% 2.0% 1.84% $12 5.0% 1.5% $9 4.0% 3.0% 1.0% $6 2.0% 0.5% $3 1.0% 0.0% 0.0% $- Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024
Slide 14: MFA Securitizations Outstanding
MFA Securitizations Outstanding Weighted Average Coupon Original Collateral Current Collateral Original UPB Outstanding Balance of WAC of Underlying Securitization Name Loan Product Type Settlement Date Bonds Sold ($M) (WAC) of Outstanding Bonds Callable Date UPB ($M)16 UPB ($M)16 Sold (%)17 Bonds S
Slide 15: Supplemental Loan Portfolio Data
Q3 2022 Financial Snapshot Supplemental Loan Portfolio Data Non-QM Loans Single-family Rental Loans Single-family Transitional Loans Multifamily Transitional Loans Legacy RPL/NPL Product Type Origination Year Product Type Origination Year Resolution Status18 Non-Performing 4% 2024- Pre- Full Doc 202
Slide 16: Reconciliation of GAAP net income to non-GAAP Distributable earnings
Reconciliation of GAAP net income to non-GAAP Distributable earnings “Distributable earnings” is a non-GAAP financial measure of our operating performance, within the meaning of Regulation G and Item 10(e) of Regulation S-K, as promulgated by the Securities and Exchange Commission. Distributable ear
Slide 17: Reconciliation of GAAP Book Value to Economic Book Value
Reconciliation of GAAP Book Value to Economic Book Value “Economic book value” is a non-GAAP financial measure of our financial position. To calculate our Economic book value, our portfolios of Residential whole loans and securitized debt held at carrying value are adjusted to their fair value, rath
Slide 18: Book Value and Economic Book Value Rollforward
Book Value and Economic Book Value Rollforward GAAP Economic Book value per common share as of 3/31/25 $13.28 $13.84 Net income available to common shareholders 0.22 0.22 Common stock dividends declared (0.36) (0.36) Fair value changes attributable to residential mortgage securities and other (0.02)
Slide 19: GAAP Segment Reporting
GAAP Segment Reporting (Dollars in millions) Mortgage- Related Assets Lima One Corporate Totald Three months ended June 30, 2025 Interest Income $126.0 $59.8 $2.5 $188.31 Interest Expense 84.4 38.1 4.5 127.01 Net Interest Income/(Expense) $41.6 $21.7 $(2.0) $61.31 (Provision)/Reversal of Provision f
Slide 20: Endnotes
Endnotes 1) Economic book value is a non-GAAP financial measure. Refer to slide 17 for further information regarding the calculation of this measure and a reconciliation to GAAP book value. 2) Total economic return is calculated as the quarterly change in Economic Book Value (EBV) plus common divide