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Item 8. Financial Statements and Supplementary Data

2026-02-20 compared with 2025-02-20 · 339 added, 386 removed, 1811 unchanged (29% of the section changed)

22 unchanged sentences

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate.

(1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Assessment of the valuation of residential whole loans, at fair value

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A high degree of audit effort, including specialized skills and knowledge, was involved in determining certain of the estimate assumptions, including the forecasted prepayment, default and loss given default rates, property appraised value, and discount rate, which are not readily observable in the market and subject to significant measurement uncertainty.

The evaluation of the assumptions to determine the valuation of residential whole loans, at fair value, required subjective and complex auditor judgement as the assumptions used were sensitive to variation, such that minor changes in home prices and/or credit quality of the borrower can cause significant changes in the estimate.

The evaluation of the methodologies and certain assumptions to determine the valuation of residential whole loans, at fair value, required subjective and complex auditor judgment as the assumptions used were sensitive to variation, such that minor changes in home prices and/or credit quality of the borrower can cause significant changes in the estimate.

The following are the primary procedures we performed to address this critical audit matter.

2 unchanged sentences

We involved valuation professionals with specialized skills and knowledge who assisted in evaluating the Company’s internal controls specific to the assessment of the third-party developed valuation techniques and models.

We re-performed and assessed the Company’s comparison of fair value estimates of residential whole loans obtained from third-parties that specialize in the valuation of residential mortgage loans.

We involved valuation professionals with specialized skills and knowledge, who assisted in:

• evaluating that the methodology used by the Company in determining the property appraised value and residential whole loan fair value is in accordance with U.S.

• evaluating that the methodologies used by the Company in determining the property appraised value and residential whole loan fair value is in accordance with U.S.

• evaluating the methodology and assumptions used to determine the property appraised value used by the Company for a sample of residential whole loans at fair value

• evaluating the assumptions used to determine the residential whole loan fair value used by the Company by comparing them to market research and relevant industry practices

• developing a fair value estimate for a sample of non-performing residential whole loans at fair value using the evaluated property appraised value, estimated time to liquidate the loan, expected liquidation costs, and home price index assumptions used by the Company and publicly available external market data collectively with independently developed valuation models and/or inputs and comparing the results of our estimate of fair value to the Company’s fair value estimate and

• developing an independent fair value estimate for a sample of performing residential whole loans at fair value based on independently developed valuation models and/or inputs and comparing the results of our estimate of fair value to the Company’s fair value estimate.

• evaluating certain assumptions used to determine the residential whole loan fair value used by the Company by comparing them to market research and relevant industry practices

• developing a fair value estimate for a selection of non-performing residential whole loans at fair value using the evaluated property appraised value, estimated time to liquidate the loan, expected liquidation costs, and home price index assumptions used by the Company and publicly available external market data collectively with independently developed valuation models and/or inputs and comparing the results of our estimate of fair value to the Company’s fair value estimate and

• developing an independent fair value estimate for a selection of performing residential whole loans at fair value based on independently developed valuation models and/or inputs and comparing the results of our estimate of fair value to the Company’s fair value estimate.

We have served as the Company’s auditor since 2011.

22 unchanged sentences

7.5 % Series B cumulative redeemable;

8,050 shares authorized;

8,000 shares issued and outstanding ($ 200,000 aggregate liquidation preference)

12,050 and 8,050 shares authorized, respectively;

8,125 and 8,000 shares issued and outstanding, respectively ($ 203,132 and $ 200,000 aggregate liquidation preference, respectively)

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)

16,650 and 12,650 shares authorized, respectively;

11,286 and 11,000 shares issued and outstanding, respectively ($ 282,148 and $ 275,000 aggregate liquidation preference, respectively)

Common stock, $ 0.01 par value;

874,300 and 874,300 shares authorized;

102,083 and 101,916 shares issued

and outstanding, respectively

866,300 and 874,300 shares authorized, respectively;

101,663 and 102,083 shares issued and outstanding, respectively

Additional paid-in capital, in excess of par 3,718,350 3,711,046

56 unchanged sentences

Unrealized gains/(losses) on securities available-for-sale ( 5,575 ) 1,764 ( 2,873 )

Reclassification adjustment for securities sales included in net income ( 9,986 ) ( 770 ) —

Reclassification adjustment for securities sales included in net income/(loss)

( 226 ) ( 9,986 ) ( 770 )

Changes in fair value of financing agreements at fair value due to changes in instrument-specific credit risk — — —

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Balance at December 31, 2024 8,000 $ 80 11,000 $ 110 102,083 $ 1,021 $ 3,711,046 $ ( 1,879,941 ) $ 9,476 $ 1,841,792

Net income — — — — — — — 119,251 — 119,251

Net income/(Loss) — — — — — — — 176,783 — 176,783

Issuance of preferred stock, net of expenses 125 1 286 3 — — 9,307 — — 9,311

Issuance of common stock, net of expenses

22 unchanged sentences

Balance at December 31, 2023 8,000 $ 80 11,000 $ 110 101,916 $ 1,019 $ 3,698,767 $ ( 1,817,759 ) $ 17,698 $ 1,899,915

Net income — — — — — — — 80,164 — 80,164

Net Income/(Loss) — — — — — — — 119,251 — 119,251

Issuance of common stock, net of expenses — — — — 298 3 ( 79 ) — — ( 76 )

23 unchanged sentences

Balance at December 31, 2022 8,000 $ 80 11,000 $ 110 101,802 $ 1,018 $ 3,684,291 $ ( 1,717,991 ) $ 21,341 $ 1,988,849

Net loss — — — — — — — ( 231,581 ) — ( 231,581 )

Net Income/(Loss) — — — — — — — 80,164 — 80,164

Issuance of common stock, net of expenses — — — — 172 1 ( 7 ) — — ( 6 )

11 unchanged sentences

Change in unrealized losses on securities, net — — — — — — — — ( 3,643 ) ( 3,643 )

Changes in fair value of financing agreements at fair value due to changes in instrument-specific credit risk — — — — — — — — 1,255 1,255

Balance at December 31, 2023 8,000 $ 80 11,000 $ 110 101,916 $ 1,019 $ 3,698,767 $ ( 1,817,759 ) $ 17,698 $ 1,899,915

9 unchanged sentences

Net income/(loss) $ 176,783 $ 119,251 $ 80,164

Adjustments to reconcile net income/(loss) to net cash provided by operating activities:

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

Net (gain)/loss on residential whole loans ( 138,840 ) ( 54,227 ) ( 87,379 )

Impairment and other net (gain)/loss on securities and other portfolio investments, net ( 61,543 ) 9,190 ( 7,058 )

Net gain on real estate owned ( 2,729 ) ( 9,512 ) ( 24,473 )

Net (gain)/loss on real estate owned 6,887 ( 2,729 ) ( 9,512 )

Accretion of purchase discounts and amortization of purchase premiums on residential whole loans and securities 1,228 ( 5,492 ) ( 18,968 )

27 unchanged sentences

Payments made for settlements and unwinds of Swaps ( 27,278 ) ( 27,530 ) —

Proceeds from issuance of preferred stock, net of expenses 9,311 — —

Proceeds from issuances of common stock, net of expenses ( 68 ) ( 81 ) ( 7 )

14 unchanged sentences

Payable for unsettled investment purchases $ — $ 63,094 $ 103,654

Deconsolidation of securitized Agency eligible investor loans and related debt $ — $ — $ 490,952

The accompanying notes are an integral part of the consolidated financial statements.

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(a) Basis of Presentation and Consolidation

On April 4, 2022, the Company effected a one-for-four reverse stock split of its issued and outstanding shares of common stock (the “Reverse Stock Split”).

Accordingly, all share and per share data included in these consolidated financial statements and notes thereto have been adjusted retroactively to reflect the impact of the Reverse Stock Split .

The accompanying consolidated financial statements of the Company have been prepared on the accrual basis of accounting in accordance with U.S.

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impairment, valuation allowances and loss allowances on residential whole loans (see Note 3), certain securities designated as available-for-sale (“AFS”) (see Note 4), certain Other assets (see Note 5), valuation of Securities, at fair value (see Notes 4 and 13), income recognition and valuation of residential whole loans (see Notes 3 and 13), valuation of financing agreements (Notes 6 and 13), and valuation of derivative instruments (see Notes 5(e) and 13).

In addition, estimates are used in the determination of taxable income used in the assessment of REIT compliance and contingent liabilities for related taxes, penalties and interest (see Note 8).

In addition, estimates are used in the determination of taxable income used in the assessment of REIT compliance and contingent liabilities for related taxes, penalties and interest (see Note 8), and litigation liability (Note 9(e)).

Actual results could differ from those estimates.

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The Company’s residential whole loans pledged as collateral against financing agreements are included in the consolidated balance sheets with amounts pledged disclosed in Note 6.

Effective January 1, 2024, purchases and sales of residential whole loans are recorded on the settlement date.

As of December 31, 2023, approximately $ 103.7 million of purchased residential whole loans, at fair value were recorded on the consolidated balance sheet and settled after period-end.

Purchases and sales of residential whole loans are recorded on the settlement date.

The Company’s residential whole loans are primarily comprised of:

(i) loans to finance (or refinance) one-to-four family residential properties that are not considered to meet the definition of a “Qualified Mortgage” in accordance with guidelines adopted by the Consumer Financial Protection Bureau (“Non-QM loans”), (ii) business purpose loans primarily originated by Lima One, to finance (or refinance) non-owner occupied one-to-four family residential properties that are rented to one or more tenants (“Single-family rental loans”), (iii) short-term business purpose loans primarily originated by Lima One, collateralized by residential properties made to non-occupant borrowers that generally intend to rehabilitate or construct residential housing and then refinance or sell the properties (“Single-family transitional loans”), (iv) short-term business purpose loans primarily originated by Lima One, collateralized by multifamily properties, typically with a loan balance below $ 10 million, made to non-occupant borrowers that generally intend to moderately rehabilitate or stabilize and then refinance or sell the properties (“Multifamily transitional loans”,

MFA FINANCIAL, INC.

1 unchanged sentence

December 31, 2025

properties made to non-occupant borrowers that generally intend to rehabilitate or construct residential housing and then refinance or sell the properties (“Single-family transitional loans”), (iii) short-term business purpose loans collateralized by multifamily properties, typically with a loan balance below $ 10 million, made to non-occupant borrowers that generally intend to moderately rehabilitate or stabilize and then refinance or sell the properties (“Multifamily transitional loans”) (collectively with Single-family transitional loans, “Transitional loans”, also sometimes referred to as “Rehabilitation loans” or “Fix and Flip loans”), (iv) business purpose loans to finance (or refinance) non-owner occupied one-to-four family residential properties that are rented to one or more tenants (“Single-family rental loans” and, collectively with Transitional loans, “Business purpose loans”), (v) loans primarily secured by residential real estate that were generally either non-performing or re-performing at acquisition (“Legacy RPL/NPL loans”) and (vi) loans on investor properties that conform to the standards for purchase by a federally chartered corporation, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”) (“Agency eligible investor loans”, which are included in “Other loans”).

collectively with Single-family transitional loans, “Transitional loans”, also sometimes referred to as “Rehabilitation loans” or “Fix and Flip loans” and, collectively with Single-family rental loans, “Business purpose loans”), (v) loans primarily secured by residential real estate that were generally either non-performing or re-performing at acquisition (“Legacy RPL/NPL loans”) and (vi) loans on investor properties that conform to the standards for purchase by a federally chartered corporation, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”) (“Agency eligible investor loans”, which are included in “Other loans”).

Residential whole loans are initially recorded at their purchase price (or amount funded for originated loans).

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The Company may apply qualitative adjustments to these results as further described in Note 3.

For certain loans where foreclosure has been deemed to be probable, loss estimates are based on whether the value of the

For certain loans where foreclosure has been deemed to be probable, loss estimates are based on whether the value of the underlying collateral is sufficient to recover the carrying value of the loan.

This methodology has not changed significantly from the calculation of the allowance for credit losses in prior periods, although certain modeling factors have been refined over time and the data utilized has, in some cases, been updated to better align with actual and expected loss experiences.

MFA FINANCIAL, INC.

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December 31, 2025

underlying collateral is sufficient to recover the carrying value of the loan.

Certain Legacy RPL/NPL loans acquired by the Company for which the Company did not elect the fair value option are accounted for as credit deteriorated as they have experienced a deterioration in credit quality since origination and prior to our purchase and were acquired at discounted prices that reflect, in part, the impaired credit history of the borrower.

purchase and were acquired at discounted prices that reflect, in part, the impaired credit history of the borrower.

Substantially all of these loans have previously experienced payment delinquencies and the amount owed may exceed the value of the property pledged as collateral.

11 unchanged sentences

The Company determines the fair value of its residential whole loans held at fair value after considering portfolio valuations obtained from third-parties that specialize in providing valuations of residential mortgage loans and trading activity observed in the marketplace.

Subsequent changes in fair value are reported in current period earnings and presented in Net (loss)/gain on residential whole loans measured at fair value through earnings on the Company’s consolidated statements of operations.

Subsequent changes in fair value are reported in current period earnings and presented in Net gain/(loss) on residential whole loans measured at fair value through earnings on the Company’s consolidated statements of operations.

Interest income is recorded on these loans based on their yield and is presented as part of interest income in the Company’s consolidated statements of operations.

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The Company has invested in term notes that are issued by special purpose vehicles (“SPV”) that have acquired rights to receive cash flows representing the servicing fees and/or excess servicing spread associated with certain MSRs.

The Company considers payment of principal and interest on these term notes to be largely dependent on the cash flows generated by the underlying MSRs as this impacts the cash flows available to the SPV that issued the term notes.

Credit risk borne by the holders of the term notes is also mitigated by structural credit support in the form of over-collateralization.

Credit support is also provided by a corporate guarantee from the ultimate parent or sponsor of the SPV that is intended to provide for payment of interest and principal

MFA FINANCIAL, INC.

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December 31, 2025

considers payment of principal and interest on these term notes to be largely dependent on the cash flows generated by the underlying MSRs as this impacts the cash flows available to the SPV that issued the term notes.

Credit risk borne by the holders of the term notes is also mitigated by structural credit support in the form of over-collateralization.

Credit support is also provided by a corporate guarantee from the ultimate parent or sponsor of the SPV that is intended to provide for payment of interest and principal to the holders of the term notes if cash flows generated by the underlying MSRs are insufficient.

to the holders of the term notes if cash flows generated by the underlying MSRs are insufficient.

During the second quarter of 2025, the term notes backed by MSR collateral were repaid in full.

Securities that the Company generally intends to hold until maturity, but that it may sell from time to time as part of the overall management of its business, are designated as AFS.

13 unchanged sentences

Allowance for Credit Losses

When the fair value of an AFS security is less than its amortized cost at the balance sheet date, the security is considered impaired.

When the fair value of an AFS security is less than its amortized cost basis at the balance sheet date, the security is considered impaired.

The Company assesses its impaired securities, as well as securities for which a credit loss allowance had been previously recorded, on at least a quarterly basis and determines whether any changes to the allowance for credit losses are required.

If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the impaired security before its anticipated recovery, then the Company must recognize a write-down through charges to earnings equal to the entire difference between the investment’s amortized cost and its fair value at the balance sheet date.

If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the impaired security before its anticipated recovery, then the Company must recognize a write down through charges to earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date.

If the Company does not expect to sell an impaired security, only the portion of the impairment related to credit losses is recognized through a loss allowance charged to earnings with the remainder recognized through AOCI on the Company’s consolidated balance sheets.

3 unchanged sentences

As a result, the timing and amount of losses constitute material estimates that are susceptible to significant change (see Note 4).

Balance Sheet Presentation

The Company’s securities pledged as collateral against financing agreements and derivatives are included on the consolidated balance sheets with the fair value of the securities pledged disclosed in Notes 6 and 5, respectively.

Purchases and sales of securities are recorded on the trade date.

MFA FINANCIAL, INC.

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December 31, 2025

Balance Sheet Presentation

The Company’s securities pledged as collateral against financing agreements and interest rate swap agreements (“Swaps”) are included on the consolidated balance sheets with the fair value of the securities pledged disclosed in Notes 6 and 5, respectively.

Purchases and sales of securities are recorded on the trade date.

(d) Cash and Cash Equivalents

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(e) Restricted Cash

Restricted cash primarily represents the Company’s cash collections held in connection with certain of the Company’s financing agreements, Swaps, consolidated securitization trusts and/or loan servicing activities that are not available to the Company for general corporate purposes.

Restricted cash may be applied against amounts due to financing agreements, Swap counterparties and/or trust obligations or may be returned to the Company when the related collateral requirements are exceeded or at the maturity of financing agreements, Swaps and/or securitizations.

Restricted cash primarily represents the Company’s cash collections held in connection with certain of the Company’s financing agreements, derivative financial instruments, consolidated securitization trusts and/or loan servicing activities that are not available to the Company for general corporate purposes.

Restricted cash may be applied against amounts due to financing agreements, derivative financial instrument counterparties and/or trust obligations or may be returned to the Company when the related collateral requirements are exceeded or at the maturity of financing agreements, Swaps and/or securitizations.

The Company had aggregate restricted cash of $ 173.5 million and $ 262.4 million at December 31, 2025 and December 31, 2024, respectively (see Notes 5(e), 6 and 13).

(f) Goodwill & Intangible Assets

At December 31, 2024 and December 31, 2023, the Company had goodwill of $ 61.1 million, which represents the excess of the fair value of consideration paid over the fair value of net assets acquired in connection with the acquisition of Lima One, and other intangible assets of $ 4.8 million and $ 8.0 million, respectively (net of amortization), primarily comprised of customer relationships, non-competition agreements (fully amortized as of June 30, 2022), trademarks and trade names, and internally developed software recognized as part of the acquisition of Lima One (see Note 5(b)).

At December 31, 2025 and December 31, 2024, the Company had goodwill of $ 61.1 million, which represents the excess of the fair value of consideration paid over the fair value of net assets acquired in connection with the acquisition of Lima One, and other intangible assets of $ 2.6 million and $ 4.8 million, respectively (net of amortization), primarily comprised of customer relationships (fully amortized as of June 30, 2025), non-competition agreements (fully amortized as of June 30, 2022), trademarks and trade names, and internally developed software recognized as part of the acquisition of Lima One (see Note 5(b)).

The intangible assets are amortized over their expected useful lives, which ranged from one to ten years at acquisition.

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Therefore, each property is measured at fair value at acquisition and then depreciated over the expected useful life.

The amounts reported in the balance sheet at any given period represent the amortized cost of the property until there is a planned sale, at which point the carrying value would be updated to fair value less estimated selling costs.

The amounts reported in the balance sheet at any given period represent the amortized cost basis of the property until there is a planned sale, at which point the carrying value would be updated to fair value less estimated selling costs.

(h) Leases and Depreciation

The Company records its operating lease liabilities and operating lease right-of-use assets on its consolidated balance sheets.

MFA FINANCIAL, INC.

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December 31, 2025

(h) Leases and Depreciation

The Company records its operating lease liabilities and operating lease right-of-use assets on its consolidated balance sheets.

The operating lease liabilities are equal to the present value of the remaining fixed lease payments (excluding real estate tax and operating expense escalations) discounted at the Company’s estimated incremental borrowing rate at the date of lease commencement, and the operating lease right-of-use assets are equal to the operating lease liabilities adjusted for lease incentives and initial direct costs.

commencement, and the operating lease right-of-use assets are equal to the operating lease liabilities adjusted for lease incentives and initial direct costs.

As lease payments are made, the operating lease liabilities are reduced to the present value of the remaining lease payments and the operating lease right-of-use assets are reduced by the difference between the lease expense (straight-lined over the lease term) and the theoretical interest expense amount (calculated using the incremental borrowing rate at the date of lease commencement).

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Under its repurchase agreements and other forms of collateralized financing, the Company pledges its assets as collateral to secure the borrowing, in an amount which is equal to a specified percentage of the fair value of the pledged collateral, while the Company retains beneficial ownership of the pledged collateral.

At the maturity of a repurchase financing, unless the repurchase financing is renewed with the same counterparty, the Company is required to repay the loan including any accrued

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

interest and concurrently receives back its pledged collateral from the lender.

At the maturity of a repurchase financing, unless the repurchase financing is renewed with the same counterparty, the Company is required to repay the loan including any accrued interest and concurrently receives back its pledged collateral from the lender.

With the consent of the lender, the Company may renew a repurchase financing at the then prevailing financing terms.

1 unchanged sentence

The Company also may make margin calls on counterparties when collateral values increase.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Should a counterparty decide not to renew a financing arrangement at maturity, the Company must either refinance elsewhere or be in a position to satisfy the obligation.

18 unchanged sentences

(n) Comprehensive Income/(Loss)

The Company’s comprehensive income/(loss) available to common stock and participating securities includes net income, the change in net unrealized gains/(losses) on its AFS securities and derivative hedging instruments (to the extent that such changes are not recorded in earnings), adjusted by realized net gains/(losses) reclassified out of AOCI for sold AFS securities and terminated hedging relationships, as well as the portion of unrealized gains/(losses) on its financing agreements held at fair value related to

MFA FINANCIAL, INC.

1 unchanged sentence

December 31, 2025

instrument-specific credit risk, and is reduced by dividends declared on the Company’s preferred stock and issuance costs of redeemed preferred stock.

(o) Derivative Financial Instruments

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The objective of the Company’s risk management strategy is to reduce fluctuations in net book value over a range of interest rate scenarios.

The Company has entered into Swaps that are not designated as hedges for accounting purposes.

The Company has entered into interest rate swap agreements and ERIS swap futures (collectively, “Swaps”) that are not designated as hedges for accounting purposes.

Changes in the fair value of the Company’s Swaps not designated in hedging transactions are recorded in Other Income/(Loss), net on the Company’s consolidated statements of operations.

To Be Announced (“TBA”) Securities

During 2021 and 2022, the Company entered into transactions to take short positions in TBA securities in connection with the management of interest rate and other market risks associated with purchases of Agency eligible investor loans.

As the Company did not intend to physically settle its transactions in TBA securities, they were required to be accounted for as derivative financial instruments.

The Company did not apply hedge accounting to its TBA securities.

Accordingly, TBA securities were recorded on the Company’s balance sheets at fair value, with realized and unrealized changes in fair value each period recorded in Other Income/(Loss), net in the Company’s consolidated statements of operations.

(p) Fair Value Measurements and the Fair Value Option for Financial Assets and Financial Liabilities

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In determining the accounting treatment to be applied to these transactions, the Company concluded that the entities used to facilitate these transactions are VIEs and that they should be consolidated.

If the Company had determined that

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

consolidation was not required, it would have then assessed whether the transfers of the underlying assets would qualify as sales or should be accounted for as secured financings under GAAP (see Note 14).

If the Company had determined that consolidation was not required, it would have then assessed whether the transfers of the underlying assets would qualify as sales or should be accounted for as secured financings under GAAP (see Note 14).

The Company also includes on its consolidated balance sheets certain financial assets and liabilities that are acquired/issued by trusts and/or other special purpose entities that have been evaluated as being required to be consolidated by the Company under the applicable accounting guidance.

1 unchanged sentence

Each of these VIEs own a commercial property upon which the Company has foreclosed, as further described in Note 5.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

(r) Offering Costs Related to Issuance and Redemption of Preferred Stock

1 unchanged sentence

On redemption of preferred stock, any excess of the fair value of the consideration transferred to the holders of the preferred stock over the carrying amount of the preferred stock in the Company’s consolidated balance sheets is included in the determination of Net Income Available to Common Stock and Participating Securities in the calculation of EPS.

( s ) Contingencies

Lima One had reached an agreement, or was in the process of reaching an agreement, on certain state and local governmental incentives, in connection with its agreement to lease new office space for its headquarters in Greenville, SC based on certain anticipated capital expenditures and anticipated job creation.

However, this lease agreement was terminated prior to commencement and primarily all of the incentives will, therefore, require renegotiation.

These incentives were generally recognized when there was reasonable assurance that the incentive would be received and that the Company would comply with the conditions specified in the related agreement.

These incentives were expected to have commitment terms of up to ten years and may be subject to clawback if the commitments are not fulfilled.

No material amounts related to any incentives have been recognized through December 31, 2024.

(t) New Accounting Standards and Interpretations

(s) New Accounting Standards and Interpretations

As of December 31, 2025, there were no new accounting standards or interpretations adopted by the Company that had a material effect on its consolidated financial statements in 2025.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

The amendment improves income tax disclosure requirements by requiring public business entities, on an annual basis, to provide disclosure of defined categories in the income tax rate reconciliation, as well as disclosure of income taxes paid, disaggregated by jurisdiction.

As of December 31, 2025, the Company has adopted ASU 2023-09 using a retrospective approach and included the required disclosures in the notes to the financial statements for income taxes.

The Company has enhanced its income tax disclosures included in Note 8, Income Taxes, to comply with the requirements.

The adoption did not have a material impact on the Company’s financial statements.

Residential Whole Loans

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Starting in the second quarter of 2021, the Company elected the fair value option for all loan acquisitions, including loans originated by Lima One subsequent to its acquisition by the Company.

Prior to the second quarter of 2021, the fair value option was typically elected only for loans that were 60 days or more days delinquent at purchase.

Prior to the second quarter of 2021, the fair value option was typically elected only for loans that were 60 or more days delinquent at purchase.

The following table presents the components of the Company’s Residential whole loans, and the accounting model designated at December 31, 2025 and 2024:

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(Dollars in Thousands) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024

Non-QM loans $ 593,213 $ 722,392 $ 4,753,480 $ 3,568,694 $ 5,346,693 $ 4,291,086

Business purpose loans:

Single-family rental loans (1)

$ 88,112 $ 108,203 $ 1,147,234 $ 1,248,197 $ 1,235,346 $ 1,356,400

Single-family transitional loans (2) (3)

1 unchanged sentence

Multifamily transitional loans — — 489,637 938,926 489,637 938,926

Single-family rental loans (2)

108,203 172,213 1,248,197 1,462,583 1,356,400 1,634,796

Total Business purpose loans $ 95,163 $ 130,633 $ 2,348,165 $ 3,265,548 $ 2,443,328 $ 3,396,181

Non-QM loans 722,392 843,884 3,568,694 2,961,693 4,291,086 3,805,577

Legacy RPL/NPL loans 414,676 457,654 564,340 624,895 979,016 1,082,549

3 unchanged sentences

Number of loans 4,941 5,582 18,824 18,588 23,765 24,170

(1) No loans were held for sale as of December 31, 2025 and December 31, 2024.

There were no gains/(losses) on held-for-sale loans for the year ended December 31, 2025.

For the year ended December 31, 2024, the Company recorded a $ 0.5 million gain on these loans resulting from their sale, which were held-for-sale as of December 31, 2023.

(2) Includes $ 300.2 million and $ 442.4 million of loans collateralized by new construction projects at origination as of December 31, 2025 and December 31, 2024, respectively.

(2) As of December 31, 2024, no loans were held-for-sale and as of December 31, 2023, $ 13.6 million of held-for sale loans were included in the carrying value.

For the year ended December 31, 2024, the Company recorded a $ 0.5 million gain on these loans resulting from their sale.

(3) No loans were held-for-sale as of December 31, 2025 and December 31, 2024.

For the three months ended March 31, 2025, the Company recorded a $ 0.5 million loss on these loans resulting from the adjustment of their carrying value to the lower of cost or market.

For the three months ended June 30, 2025, the Company recorded a $ 0.3 million loss on these loans resulting from their sale.

There were no gains/(losses) on held-for-sale loans for the three months ended September 30, 2025.

There were no gains/(losses) on held-for-sale loans for the three months ended December 31, 2025.

There were no gains/(losses) on held-for-sale loans for the twelve months ended December 31, 2024.

MFA FINANCIAL, INC.

1 unchanged sentence

December 31, 2025

The following tables presents additional information regarding the Company’s Residential whole loans:

The following tables present additional information regarding the Company’s Residential whole loans:

December 31, 2025

Unpaid Principal Balance (“UPB”)

Weighted Average Coupon (1)

Weighted Average Term to Maturity (Months)

Weighted Average LTV Ratio (2)

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)

2 unchanged sentences

(Dollars In Thousands) Current 30-59 60-89 90+

Non-QM loans $ 5,344,968 $ 5,332,533 $ 5,322,321 6.74 % 337 64 % 738 $ 4,929,485 $ 170,509 $ 47,154 $ 175,173 4.2 %

Business purpose loans:

Single-family rental $ 1,234,428 $ 1,237,464 $ 1,246,745 6.34 % 311 66 % 740 $ 1,193,041 $ 22,309 $ 4,165 $ 27,230 2.5 %

Single-family transitional (5)

2 unchanged sentences

489,637 489,637 531,804 10.17 % 1 64 % 749 399,686 44,523 32,905 54,690 16.5 %

Single-family rental 1,356,034 1,355,965 1,416,705 6.36 % 321 68 % 739 1,346,312 15,661 5,445 49,287 3.9

Total business purpose loans $ 2,441,368 $ 2,444,803 $ 2,510,608 8.31 % 66 % $ 2,192,525 $ 115,012 $ 39,605 $ 163,466 8.1 %

$ 3,394,426 $ 3,394,591 $ 3,500,300 8.43 % 67 % $ 3,174,103 $ 69,869 $ 21,409 $ 234,919 7.3

Non-QM loans 4,288,961 4,258,298 4,408,660 6.50 % 339 64 % 735 4,114,436 124,765 50,619 118,840 3.8

Legacy RPL/NPL loans 972,996 992,120 1,097,698 5.09 % 245 54 % 646 757,826 125,621 47,620 166,631 19.5 %

2 unchanged sentences

December 31, 2024

Unpaid Principal Balance (“UPB”)

Weighted Average Coupon (1)

Weighted Average Term to Maturity (Months)

Weighted Average LTV Ratio (2)

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)

2 unchanged sentences

(Dollars In Thousands) Current 30-59 60-89 90+

Non-QM loans $ 4,288,961 $ 4,258,298 $ 4,408,660 6.50 % 339 64 % 735 $ 4,114,436 $ 124,765 $ 50,619 $ 118,840 3.8 %

Business purpose loans:

Single-family rental $ 1,356,034 $ 1,355,965 $ 1,416,705 6.36 % 321 68 % 739 $ 1,346,312 $ 15,661 $ 5,445 $ 49,287 3.9 %

Single-family transitional (5)

2 unchanged sentences

938,926 938,926 976,964 9.17 % 6 64 % 751 870,525 20,815 — 85,624 8.8 %

Single-family rental 1,630,442 1,628,734 1,729,923 6.30 % 320 70 % 738 1,636,810 12,543 12,314 68,256 4.7

Total Business purpose loans $ 3,394,426 $ 3,394,591 $ 3,500,300 8.43 % 67 % $ 3,174,103 $ 69,869 $ 21,409 $ 234,919 7.3 %

$ 3,989,351 $ 3,988,746 $ 4,098,044 7.99 % 67 % $ 3,823,971 $ 73,567 $ 38,932 $ 161,574 4.9

Non-QM loans (5)

3,700,052 3,644,261 3,934,798 5.78 % 344 65 % 735 3,732,327 98,017 29,587 74,867 2.7

Legacy RPL/NPL loans 1,075,764 1,090,991 1,222,258 5.15 % 253 55 % 647 831,844 129,081 45,074 216,259 21.4 %

4 unchanged sentences

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 December 31, 2025, the gross coupon was 6.88 % for Non-QM loans, 6.37 % for Single-family rental loans, 10.32 % for Single-family transitional loans, 10.18 % for Multifamily transitional loans, and 5.10 % for Legacy RPL/NPL loans.

For the quarter ended December 31, 2024, the gross coupon was 6.65 % for Non-QM loans, 6.39 % for Single-family rental loans, 10.45 % for Single-family transitional loans, 9.18 % for Multifamily transitional loans, and 5.16 % for Legacy 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.

4 unchanged sentences

For these loans, the weighted average LTV is calculated based on the current unpaid principal balance and the as-is value of the collateral securing the related loan.

(5) Excluded from the table above are approximately $ 103.7 million of Residential whole loans, at fair value for which the closing of the purchase transaction had not occurred as of December 31, 2023.

MFA FINANCIAL, INC.

3 unchanged sentences

During 2025, Residential whole loans with an unpaid principal balance of $ 274.5 million were sold, realizing losses, before the impact of economic hedging and the reversal of previously recognized unrealized losses, of $ 14.0 million.

Upon sale, the Company reversed $ 47.1 million of previously recognized unrealized losses, resulting in a net gain on sale of $ 5.1 million.

Upon sale, the Company reversed $ 8.2 million of previously recognized unrealized losses, resulting in a net loss on sale of $ 5.8 million during the year.

During 2024, Non-QM loans with an unpaid principal balance of $ 692.8 million were sold, realizing losses, before the impact of economic hedging gains and the reversal of previously recognized unrealized losses, of $ 42.0 million.

4 unchanged sentences

(In Thousands)

Single-family transitional loans (1)(2)

Single-family rental loans

Non-QM loans Single-family rental loans Single-family transitional loans (1)

Legacy RPL/NPL loans (2)

Allowance for credit losses at December 31, 2024 $ 2,125 $ 366 $ 1,389 $ 6,785 $ 10,665

$ 2,587 $ 4,355 $ 1,871 $ 11,638 $ 20,451

Current provision/(reversal) ( 197 ) 614 ( 88 ) ( 184 ) 145

( 472 ) 228 ( 190 ) ( 26 ) ( 460 )

Write-offs — — ( 436 ) ( 180 ) ( 616 )

Allowance for credit losses at March 31, 2025 $ 1,928 $ 980 $ 865 $ 6,421 $ 10,194

$ 1,699 $ 4,642 $ 1,681 $ 11,590 $ 19,612

Current provision/(reversal) 87 ( 43 ) 669 78 791

1 unchanged sentence

Allowance for credit losses at June 30, 2025 $ 2,015 $ 937 $ 512 $ 6,485 $ 9,949

$ 1,301 $ 609 $ 1,355 $ 10,006 $ 13,271

Current provision/(reversal) 205 ( 78 ) 548 ( 399 ) 276

1 unchanged sentence

Allowance for credit losses at September 30, 2025 $ 2,182 $ 829 $ 1,060 $ 6,012 $ 10,083

$ 1,168 $ 375 $ 1,742 $ 7,372 $ 10,657

Current provision/(reversal) ( 457 ) 90 ( 18 ) 109 ( 276 )

1 unchanged sentence

Allowance for credit losses at December 31, 2025 $ 1,725 $ 918 $ 1,042 $ 6,020 $ 9,705

$ 1,389 $ 366 $ 2,125 $ 6,785 $ 10,665

Year Ended December 31, 2024

(Dollars In Thousands) Single-family transitional loans (1)(2)

Single-family rental loans

(Dollars In Thousands) Non-QM loans Single-family rental loans

Single-family transitional loans (1)

Legacy RPL/NPL loans (2)

Allowance for credit losses at December 31, 2023 $ 1,871 $ 4,355 $ 2,587 $ 11,638 $ 20,451

$ 5,223 $ 1,277 $ 7,359 $ 21,455 $ 35,314

Current provision 406 514 ( 214 ) ( 391 ) 315

Current provision/(reversal) ( 190 ) 228 ( 472 ) ( 26 ) ( 460 )

Write-offs — 59 ( 416 ) ( 22 ) ( 379 )

Allowance for credit losses at March 31, 2024 $ 1,681 $ 4,642 $ 1,699 $ 11,590 $ 19,612

$ 3,626 $ 1,340 $ 7,145 $ 20,951 $ 33,062

Current provision/(reversal) ( 326 ) 978 ( 317 ) ( 1,414 ) ( 1,079 )

1 unchanged sentence

Allowance for credit losses at June 30, 2024 $ 1,355 $ 609 $ 1,301 $ 10,006 $ 13,271

$ 2,840 $ 1,237 $ 6,706 $ 20,252 $ 31,035

Current provision/(reversal) 387 205 48 ( 2,582 ) ( 1,942 )

1 unchanged sentence

Allowance for credit losses at September 30, 2024 $ 1,742 $ 375 $ 1,168 $ 7,372 $ 10,657

$ 2,518 $ 1,331 $ 4,079 $ 20,629 $ 28,557

Current provision/(reversal) 383 184 379 ( 548 ) 398

1 unchanged sentence

Allowance for credit losses at December 31, 2024 $ 2,125 $ 366 $ 1,389 $ 6,785 $ 10,665

$ 2,587 $ 4,355 $ 1,871 $ 11,638 $ 20,451

(1) In connection with Single-family transitional loans at carrying value, the Company had unfunded commitments of $ 1.6 million and $ 2.5 million as of December 31, 2024 and 2023, respectively, with an allowance for credit losses of $ 0 and $ 0 at December 31, 2024 and 2023, respectively.

Such allowance is included in “Other liabilities” in the Company’s consolidated balance sheets (see Note 7).

(1) Includes $ 3.8 million and $ 14.7 million of loans that were assessed for credit losses based on a collateral dependent methodology as of December 31, 2025 and 2024, respectively.

(2) Includes $ 28.4 million and $ 34.2 million of loans that were assessed for credit losses based on a collateral dependent methodology as of December 31, 2025 and 2024, respectively.

Estimates of credit losses under credit losses on financial instruments (“ CECL”) are highly sensitive to changes in assumptions, and current economic conditions have increased the difficulty of accurately forecasting future conditions.

MFA FINANCIAL, INC.

1 unchanged sentence

December 31, 2025

Prior to December 31, 2023, the Company’s estimates of expected losses that form the basis of the Allowance for Credit Losses included certain qualitative adjustments which had the effect of increasing expected loss estimates.

These qualitative adjustments were determined based on a variety of factors, including differences between the Company’s loan portfolio and the loan portfolios represented by data available in regulatory filings of certain banks that are considered to have similar loan portfolios (available proxy data), and differences between current (and expected future) market conditions in comparison to market conditions that occurred in historical periods.

Such differences included uncertainty with respect to any residual impact of the COVID-19 pandemic, anticipated inflation and increasing market interest rates, and heightened political uncertainty.

The Company’s estimates of credit losses reflected the Company’s expectation that the performance of its portfolio might experience higher delinquencies and defaults compared to the performance in historical periods of portfolios included in the available proxy data.

During 2023, the Company eliminated its qualitative adjustment and made updates to certain of its modeling assumptions which, in addition to a reduction in loan balances subject to allowances, caused a reduction in the overall allowance.

Estimates of credit losses under credit losses on financial instruments (“ CECL”) are highly sensitive to changes in assumptions and current economic conditions have increased the difficulty of accurately forecasting future conditions.

The carrying value of Residential whole loans on nonaccrual status as of December 31, 2025 and December 31, 2024 was $ 579.9 million and $ 638.3 million, respectively.

1 unchanged sentence

At December 31, 2025 and December 31, 2024, there were approximately $ 25.7 million and $ 38.7 million, respectively, of loans held at carrying value on nonaccrual status that did not have an associated allowance for credit losses because they were determined to be collateral dependent and the estimated fair value of the related collateral exceeded the carrying value of each loan, respectively.

During the year ended December 31, 2024, the Company granted three loan modifications in its carrying value loan portfolio which gave borrowers term extensions.

The average increase in weighted average life was 31 months.

As of December 31, 2024, the carrying value of these loans were approximately $ 0.2 million.

As of December 31, 2024, one of these modifications was delinquent for more than 90 days.

During the year ended December 31, 2025, the Company granted six loan modifications in its carrying value loan portfolio which gave borrowers term extensions, with one of them including an interest rate reduction.

The average increase in weighted average life was 58 months, and the interest rate reduction was 1.25 %.

As of December 31, 2025, the carrying value of these loans was approximately $ 0.55 million.

As of December 31, 2025, two of these modifications were delinquent for more than 120 days.

During the years ended December 31, 2024 and 2023, the Company granted three and four loan modifications in its carrying value loan portfolio, respectively, which gave borrowers term extensions.

The following table presents certain additional credit-related information regarding our Residential whole loans, at carrying value:

1 unchanged sentence

(Dollars In Thousands) 2025 - 2022 2021 Prior Total

Business purpose loans

LTV <= 80% (1)

2 unchanged sentences

— — 6,901 6,901

Total Business purpose loans

$ — $ 6,708 $ 17,964 $ 105,961 $ 130,633

Total Non-QM loans $ — $ 35,782 $ 557,431 $ 593,213

Twelve Months Ended December 31, 2025 Gross write-offs $ — $ — $ 38 $ 38

Business purpose loans

LTV <= 80% (1)

2 unchanged sentences

— — 2,149 2,149

Total Non-QM loans

$ — $ 40,090 $ 159,282 $ 523,020 $ 722,392

Total Business purpose loans $ — $ 5,684 $ 89,479 $ 95,163

Twelve Months Ended December 31, 2025 Gross write-offs $ — $ 31 $ 1,458 $ 1,489

5 unchanged sentences

Total Legacy RPL/NPL loans $ — $ — $ 414,676 $ 414,676

$ — $ — $ — $ 457,654 $ 457,654

Twelve Months Ended December 31, 2025 Gross write-offs $ — $ — $ 369 $ 369

4 unchanged sentences

Total Residential whole loans, at carrying value $ — $ 41,466 $ 1,061,586 $ 1,103,052

$ — $ 46,798 $ 177,246 $ 1,086,635 $ 1,310,679

Twelve Months Ended December 31, 2025 Total Gross write-offs $ — $ 31 $ 1,865 $ 1,896

3 unchanged sentences

Excluded from the calculation of weighted average LTV are certain low value loans secured by vacant lots, for which the LTV is not meaningful.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

The following table presents vintage information regarding our Residential whole loans, at fair value:

2 unchanged sentences

2025 2024 2023 2022 2021 Prior Total

Non-QM loans $ 1,636,561 $ 935,187 $ 536,892 $ 522,677 $ 1,093,462 $ 28,701 $ 4,753,480

Single-family rental loans 68,443 39,714 214,193 489,218 329,194 6,472 1,147,234

Single-family transitional loans 363,991 208,235 112,698 22,185 4,185 — 711,294

Multifamily transitional loans — 62,635 198,847 151,417 76,738 — 489,637

Single-family rental loans 93,459 241,114 540,650 365,128 7,709 137 1,248,197

Non-QM loans 1,085,020 687,051 578,230 1,185,343 226 32,824 3,568,694

Legacy RPL/NPL loans — — — — — 564,340 564,340

1 unchanged sentence

Total Residential whole loans, at fair value $ 2,068,995 $ 1,245,771 $ 1,062,630 $ 1,185,497 $ 1,554,601 $ 599,513 $ 7,717,007

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

The following table presents realized credit losses, net of recoveries, on liquidated residential whole loans or residential whole loans that were transferred to REO, recognized in Other, net:

2 unchanged sentences

2025 2024 2023

Non-QM loans $ ( 1,156 ) $ ( 65 ) $ 962

Single-family rental loans ( 12,454 ) ( 2,347 ) 214

Single-family transitional loans ( 5,405 ) ( 2,775 ) 462

Multifamily transitional loans ( 6,724 ) ( 5,465 ) 46

Single-family rental loans ( 2,347 ) 214 342

Non-QM loans ( 65 ) 962 72

Legacy RPL/NPL loans ( 858 ) ( 858 ) ( 2,491 )

1 unchanged sentence

Total Residential whole loans $ ( 26,597 ) $ ( 11,510 ) $ ( 807 )

( 11,510 ) ( 807 ) ( 1,991 )

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

The following tables present certain information regarding the LTVs of the Company’s Residential whole loans that are 60 days or more delinquent:

1 unchanged sentence

(Dollars In Thousands) Carrying Value / Fair Value UPB LTV (1)

Non-QM loans $ 218,793 $ 222,327 64 %

Business purpose loans:

Single-family rental loans $ 29,967 $ 31,395 68 %

Single-family transitional loans 70,821 84,081 83 %

Multifamily transitional loans 54,884 87,595 68 %

Single-family rental loans 42,995 54,732 99 %

Total Business purpose loans $ 155,672 $ 203,071

Non-QM loans 166,299 169,459 66 %

Legacy RPL/NPL loans 197,511 214,251 60 %

3 unchanged sentences

(Dollars In Thousands) Carrying Value / Fair Value UPB LTV (1)

Non-QM loans $ 166,299 $ 169,459 66 %

Business purpose loans:

Single-family rental loans $ 42,995 $ 54,732 99 %

Single-family transitional loans 109,221 115,972 79 %

Multifamily transitional loans 56,970 85,624 79 %

Single-family rental loans 65,659 80,570 109 %

Total Business purpose loans $ 209,186 $ 256,328

Non-QM loans 102,252 104,454 64 %

Legacy RPL/NPL loans 240,356 261,333 63 %

5 unchanged sentences

Excluded from the calculation of weighted average LTV are certain low value loans secured by vacant lots, for which the LTV ratio is not meaningful.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

The following tables present the components of interest income on the Company’s Residential whole loans:

2 unchanged sentences

(In Thousands) 2025 2024 2023 2025 2024 2023 2025 2024 2023

Non-QM loans 37,074 43,227 47,471 255,159 192,735 145,856 292,233 235,962 193,327

Business purpose loans:

Single-family rental loans $ 6,914 $ 8,864 $ 11,167 $ 78,476 $ 95,258 $ 82,974 $ 85,390 $ 104,122 $ 94,141

Single-family transitional loans 4,129 1,230 1,346 81,805 112,249 82,377 85,934 113,479 83,723

$ 1,230 $ 1,346 $ 7,810 $ 112,249 $ 82,377 $ 67,714 $ 113,479 $ 83,723 $ 75,524

Multifamily transitional loans — — — 64,741 94,443 65,706 64,741 94,443 65,706

— — — 94,443 65,706 — 94,443 65,706 —

Single-family rental loans

8,864 11,167 15,314 95,258 82,974 53,661 104,122 94,141 68,975

Total Business purpose loans $ 11,043 $ 10,094 $ 12,513 $ 225,022 $ 301,950 $ 231,057 $ 236,065 $ 312,044 $ 243,570

$ 10,094 $ 12,513 $ 23,124 $ 301,950 $ 231,057 $ 121,375 $ 312,044 $ 243,570 $ 144,499

$ 43,227 $ 47,471 $ 51,359 $ 192,735 $ 145,856 $ 98,384 $ 235,962 $ 193,327 $ 149,743

Legacy RPL/NPL loans 28,210 31,241 34,150 47,264 52,298 62,464 75,474 83,539 96,614

$ 31,241 $ 34,150 $ 38,100 $ 52,298 $ 62,464 $ 78,520 $ 83,539 $ 96,614 $ 116,620

$ — $ — $ — $ 2,011 $ 4,372 $ 30,361 $ 2,011 $ 4,372 $ 30,361

Other loans — — — 1,839 2,011 4,372 1,839 2,011 4,372

Total Residential whole loans $ 76,327 $ 84,562 $ 94,134 $ 529,284 $ 548,994 $ 443,749 $ 605,611 $ 633,556 $ 537,883

$ 84,562 $ 94,134 $ 112,583 $ 548,994 $ 443,749 $ 328,640 $ 633,556 $ 537,883 $ 441,223

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

The following table presents the components of Net gain/(loss) on residential whole loans measured at fair value through earnings :

1 unchanged sentence

(In Thousands) 2025 2024 2023

Non-QM loans $ 119,716 $ 65,717 $ 56,871

Business purpose loans:

Single-family rental loans $ 50,136 $ 29,359 $ 17,117

Single-family transitional loans ( 19,033 ) ( 2,031 ) 468

Multifamily transitional loans ( 19,569 ) ( 35,890 ) 5,807

Single-family rental loans

29,359 17,117 ( 133,663 )

Total Business purpose loans $ 11,534 $ ( 8,562 ) $ 23,392

Non-QM loans 65,717 56,871 ( 399,216 )

Legacy RPL/NPL loans ( 1,031 ) ( 10,830 ) 7,841

1 unchanged sentence

Total Residential whole loans $ 133,689 $ 45,994 $ 89,850

$ 45,994 $ 89,850 $ ( 866,762 )

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Securities, at Fair Value

3 unchanged sentences

December 31, 2025

(Dollars in Thousands) Current

Face Weighted

Price Weighted

Value Weighted

(Months) CPR (1)

(Dollars in Thousands) Current Face Weighted Average Purchase Price Weighted Average Market Price Fair Value Weighted Average Loan Age (Months) CPR (1)

30-Year Fixed Rate:

9 unchanged sentences

December 31, 2024

(Dollars in Thousands) Current

Face Weighted

Price Weighted

Value Weighted

(Months) CPR (1)

(Dollars in Thousands) Current Face Weighted Average Purchase Price Weighted Average Market Price Fair Value Weighted Average Loan Age (Months) CPR (1)

30-Year Fixed Rate:

10 unchanged sentences

Term Notes Backed by MSR Collateral

At December 31, 2024 and 2023, the Company had $ 54.6 million and $ 79.9 million, respectively, of term notes issued by SPVs that have acquired rights to receive cash flows representing the servicing fees and/or excess servicing spread associated with certain MSRs.

Payment of principal and interest on these term notes is considered to be largely dependent on cash flows generated by the underlying MSRs, as this impacts the cash flows available to the SPV that issued the term notes.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

At December 31, 2024, these term notes had an amortized cost of $ 50.6 million, gross unrealized gains of approximately $ 3.9 million, a weighted average yield of 14.0 % and a weighted average term to maturity of 0.83 years.

At December 31, 2023, the term notes had an amortized cost of $ 74.2 million, gross unrealized gains of approximately $ 5.7 million, a weighted average yield of 17.0 % and a weighted average term to maturity of 1.84 years.

The issuer of the notes had a one -time option to extend the maturity of the notes for an additional two years , subject to satisfaction of certain conditions, which was exercised in October 2023.

The coupon stepped up by 0.75 % at the time of the extension.

During the second quarter of 2025, the Term Notes Backed by MSR Collateral were repaid in full.

At December 31, 2024, the Company had $ 54.6 million of term notes issued by SPVs that had acquired rights to receive cash flows representing the servicing fees and/or excess servicing spread associated with certain MSRs.

Payment of principal and interest on these term notes was considered to be largely dependent on cash flows generated by the underlying MSRs, as this impacts the cash flows available to the SPV that issued the term notes.

CRT Securities

10 unchanged sentences

These securities were acquired on the de-consolidation of certain trusts that held previously securitized Agency Eligible investor loans.

The following tables present certain information about the Company’s Agency MBS and other Securities, at December 31, 2024 and 2023:

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

(In Thousands) Principal/ Current

Face Purchase

Premiums Accretable

Discounts Discount

as Credit Reserve (1)

Gross Amortized

Gain/(Loss) Fair

The following tables present certain information about the Company’s Agency MBS and other Securities:

December 31, 2025

(In Thousands) Principal/Current Face Purchase Premiums Accretable Purchase Discounts Discount Designated as Credit Reserve (1)

Gross Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gain/(Loss) Fair Value

Agency MBS $ 3,256,760 $ 13,996 $ ( 13,070 ) $ — $ 3,257,686 $ 45,539 $ ( 21 ) $ 45,518 $ 3,303,204

4 unchanged sentences

December 31, 2024

(In Thousands) Principal/ Current

Face Purchase

Premiums Accretable

Discounts Discount

as Credit Reserve (1)

Gross Amortized

Gain/(Loss) Fair Value

(In Thousands) Principal/Current Face Purchase Premiums Accretable Purchase Discounts Discount Designated as Credit Reserve (1)

Gross Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gain/(Loss) Fair Value

Agency MBS $ 1,403,891 $ 5,534 $ ( 3,525 ) $ — $ 1,405,900 $ 2,318 $ ( 15,583 ) $ ( 13,265 ) $ 1,392,635

7 unchanged sentences

Such securities had approximately $ 0.9 million gross unrealized gains and no gross unrealized losses at December 31, 2025.

Amounts disclosed at December 31, 2023 includes CRT securities with a fair value of $ 51.2 million for which the fair value option has been elected.

Amounts disclosed at December 31, 2024 include CRT securities with a fair value of $ 51.5 million for which the fair value option has been elected.

Such securities had gross unrealized gains of approximately $ 3.2 million and no gross unrealized losses at December 31, 2024.

3 unchanged sentences

Such securities had $ 0.5 million gross unrealized gains and $ 0.5 million gross unrealized losses at December 31, 2024.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

Sales of Residential Mortgage Securities

During the year ended December 31, 2024, the Company sold a CRT security for approximately $ 16.0 million, realizing a gain of $ 7.3 million.

During the year ended December 31, 2025, the Company sold an agency bond for approximately $ 18.2 million, realizing a gain of $ 0.7 million.

During the year ended December 31, 2025, the Company sold CRT securities for approximately $ 28.6 million, realizing gains of $ 1.6 million.

During the year ended December 31, 2024, the Company sold a CRT security for approximately $ 16.0 million, realizing gains of $ 7.3 million.

During the year ended December 31, 2024, the Company sold MSR securities for approximately $ 29.6 million, realizing gains of $ 2.7 million.

During the year ended December 31, 2023, the Company sold MSR securities for approximately $ 18.2 million, realizing gains of $ 908,000 .

During the year ended December 31, 2022, the Company sold CRT securities for approximately $ 15.7 million, realizing gains of $ 84,000 .

Impairment and Other Net Gain/(Loss) on Securities and Other Portfolio Investment s

The following table present the components of Impairment and other net gain/(loss) on securities and other portfolio investments for the years ended December 31, 2024, 2023 and 2022, which is presented in Other Income/(Loss), net in the consolidated statements of operations:

The following table presents the components of Impairment and other net gain/(loss) on securities and other portfolio investments, which is presented in Other Income/(Loss), net in the consolidated statements of operations:

For the Year Ended December 31,

2 unchanged sentences

Net realized gain/(loss) from the sale of securities 2,301 9,992 908

Impairment of securities — — —

Total Impairment and other net gain/(loss) on securities $ 59,205 $ ( 6,202 ) $ 8,249

4 unchanged sentences

Total Impairment and other net gain/(loss) on securities and other portfolio investments $ 61,543 $ ( 10,869 ) $ 6,225

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Unrealized Losses on Residential Mortgage Securities

3 unchanged sentences

Impact of AFS Securities on AOCI

The following table presents the impact of the Company’s AFS securities (whose changes in fair value are recorded through OCI) on its AOCI for the years ended December 31, 2024, 2023 and 2022:

The following table presents the impact of the Company’s AFS securities (whose changes in fair value are recorded through OCI) on its AOCI:

For the Year Ended December 31,

2 unchanged sentences

Unrealized gain on AFS securities at beginning of period $ 9,476 $ 17,698 $ 21,341

Unrealized gains/(losses) on securities available-for-sale

1,764 ( 2,873 ) ( 25,492 )

Unrealized gain/(loss) on securities available-for-sale ( 5,575 ) 1,764 ( 2,873 )

Reclassification adjustment for MBS sales included in net income ( 226 ) ( 9,986 ) ( 770 )

1 unchanged sentence

Balance at end of period $ 3,675 $ 9,476 $ 17,698

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

Interest Income on Securities, at Fair Value

17 unchanged sentences

(2) The effective yield adjustment is the difference between the net income calculated using the net yield less the current coupon yield.

The net yield may be based on management’s estimates of the amount and timing of future cash flows or in the instrument’s contractual cash flows, depending on the relevant accounting standards.

(3) Includes $ 7.8 million of accretion income recognized during the year ended December 31, 2022, due to the impact of the redemption at par of MSR-related assets that had been held at amortized cost basis below par due to an impairment charge recorded in the first quarter of 2020.

The net yield may be based on management’s estimates of the amount and timing of future cash flows or on the instrument’s contractual cash flows, depending on the relevant accounting standards.

(3) The effective yield adjustment for the year ended December 31, 2025 includes $ 2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full during the second quarter of 2025.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

The following table presents the components of the Company’s Other assets at December 31, 2025 and 2024:

13 unchanged sentences

(1) Net of aggregate accumulated amortization of $ 25.4 million and $ 23.2 million as of December 31, 2025 and 2024, respectively.

(2) An estimated incremental borrowing rate of 7.5 % was used in connection with the Company’s primary operating lease (see Notes 2 and 9).

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

(2) An estimated incremental borrowing rate of 7.5 % was used in connection with the Company’s primary operating lease, and an estimated incremental borrowing rate of 8.0 % was used in connection with Lima One’s headquarters lease (see Notes 2 and 9).

(a) Real Estate Owned and Commercial REO

The below table summarizes the aggregate carrying value of REO properties by loan source prior to foreclosure proceeding or from completion of a deed-in-lieu of foreclosure or similar legal agreement.

The following table summarizes the aggregate carrying value of REO properties by loan source prior to foreclosure proceeding or from completion of a deed-in-lieu of foreclosure or similar legal agreement.

(Dollars In Thousands)

December 31, 2025 December 31, 2024

Business purpose loans $ 71,090 $ 28,328

Non-QM loans $ 12,066 $ 1,278

Business purpose loans 80,822 71,090

Legacy RPL/NPL loans 42,147 58,486

3 unchanged sentences

In addition, formal foreclosure proceedings were in process with respect to $ 46.5 million of residential whole loans held at carrying value and $ 237.1 million of residential whole loans held at fair value at December 31, 2025.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

The following table presents the activity in the Company’s REO for the years ended December 31, 2025 and 2024:

3 unchanged sentences

Adjustments to record at lower of cost or fair value ( 12,581 ) ( 8,304 )

( 8,304 ) ( 4,867 )

Transfer from residential whole loans (1)

5 unchanged sentences

Number of properties 322 416

(1) The Company recognized $( 6.7 ) million and $ 0.4 million, respectively, on Residential whole loans in Other Income/(Loss), net associated with the transfer of loans to REO for the years ended December 31, 2024 and December 31, 2023.

(1) The Company recognized $( 4.1 ) million and $( 6.7 ) million of gains/(losses), respectively, on Residential whole loans in Other Income/(Loss), net associated with the transfer of loans to REO for the years ended December 31, 2025 and December 31, 2024.

(2) During the year ended December 31, 2025, the Company sold 399 REO properties for consideration of $ 95.8 million, realizing net gains of approximately $ 5.7 million.

2 unchanged sentences

Commercial REO

In December 2023, the Company received a 75 % interest in an entity which owns a newly constructed industrial property as part of the negotiated settlement of a delinquent commercial mortgage loan.

In the third quarter of 2024, the Company received 75 % and 49 % interests, respectively, in two additional VIEs through foreclosure of a multifamily property and a senior living facility underlying delinquent commercial mortgage loans.

In the third quarter of 2024, the Company received 75 % and 49 % interests, respectively, in two VIEs through foreclosure of a multifamily property and a senior living facility underlying delinquent commercial mortgage loans.

Each of these entities was determined to be a VIE but the Company was not determined to be the primary beneficiary;

as a result, the investments in the entities are considered equity method investments.

During 2024, the Company recorded a $ 0.1 million loss based on updated valuations of the property acquired in 2023, which the Company sold in December 2024.

Each entity accounts for its respective commercial REO property similarly to the manner in which the Company accounts for its residential REO.

The entities generally do not own any other significant assets or carry any significant liabilities, except that two entities contain properties encumbered by third-party financing.

The property acquired in 2023 was considered held-for-sale, while the properties foreclosed in 2024 are considered held-for-investment.

Each entity accounts for its respective commercial REO property (the “Commercial REO”) similarly to the manner in which the Company accounts for its residential REO.

The entities generally do not own any other significant assets or carry any significant liabilities, except that the two entities contain properties encumbered by third-party financing.

As of December 31, 2025, one property was considered held-for-investment and one property was considered held-for-sale.

( b ) Goodwill and Intangible Assets

1 unchanged sentence

In connection with the acquisition of Lima One, the Company identified and recorded goodwill of $ 61.1 million and finite-lived intangible assets totaling $ 28.0 million.

In 2024, the Company changed its annual goodwill impairment assessment date from November 30 to October 1.

No impairment has been recorded since the goodwill was initially recognized.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

For the Lima One reporting unit, through the most recent testing date (October 1, 2025), no impairment has been recorded since the goodwill was initially recognized as the estimated fair value of the reporting unit has consistently exceeded its carrying value.

Key assumptions used in the valuation included loan origination volume, expense levels, discount rates and capitalization multiples, all of which are subject to variability in the current market.

The amortization period for each of the finite lived intangible assets and the activity for the years ended December 31, 2025, 2024 and 2023 is summarized in the table below:

3 unchanged sentences

Internally Developed Software 2,800 ( 800 ) ( 800 ) ( 800 ) 400 5

Non-Compete Agreements 2,000 ( 2,000 ) — — — 1

Total Identified Intangibles $ 12,200 $ ( 4,200 ) $ ( 3,200 ) $ ( 2,200 ) $ 2,600

(1) Amortization is calculated on a straight-line basis over the amortization period, except for Customer Relationships, where amortization is calculated based on expected levels of customer attrition .

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

( c ) Capital Contributions Made to Loan Origination Partners

1 unchanged sentence

At December 31, 2025, the carrying value of these investments (including adjustments for impairments or mark-to-market changes) was $ 20.2 million, including $ 5.1 million of common equity (including partnership interests) and $ 15.1 million of preferred equity.

During the year ended December 31, 2024, there were no impairment charges recorded by the Company on its investment in loan origination partners.

During the year ended December 31, 2025 and 2024, there were no impairment charges recorded by the Company on its investment in loan origination partners.

During the year ended December 31, 2023, the Company recorded an impairment charge in earnings of $ 2.3 million against the carrying value of its investment in one loan origination partner.

In 2023, the Company sold a preferred equity interest in one loan origination partner, which was recorded at $ 6.6 million, and recorded a gain of $ 0.1 million.

During the year ended December 2022, the Company recorded an impairment charge against earnings of $ 28.6 million against the carrying value of its investment in one loan origination partner, bringing the net carrying value of this investment to zero as of June 30, 2022.

This impairment charge was recorded in Provision for credit losses on other assets in the consolidated statement of operations.

Further, for the year ended December 31, 2022, the Company recorded a valuation adjustment of $ 21.9 million against its investment in a loan origination partner that is accounted for at fair value through earnings.

Prior to December 31, 2024, the Company had elected to account for certain of these investments pursuant to the fair value option, where changes in estimated fair value were recorded on the statement of operations.

10 unchanged sentences

The commercial mortgage loans are first liens and bear variable interest rates.

The Company has received interests in three of the previously underlying properties, as further described above under “Commercial REO.”

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

The following table presents certain additional information about the Company’s commercial mortgage loans:

(Dollars In Thousands) Fair Value / Carrying Value UPB Weighted Average Coupon Weighted Average Term to Maturity (Months) UPB 60+ Days Delinquent Weighted Average LTV Ratio

(Dollars In Thousands) Fair Value / Carrying Value UPB Weighted Average Coupon (1)

Weighted Average Term to Maturity (Months) UPB 60+ Days Delinquent Weighted Average LTV Ratio

Commercial Loans - December 31, 2025 $ 6,079 $ 9,385 10.60 % 0 $ 9,385 189 %

Commercial Loans - December 31, 2024 $ 7,435 $ 9,385 11.48 % 0 $ 4,875 82 %

(1) Commercial 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.

(e) Derivative Instruments

The Company’s derivative instruments include Swaps, which are used to economically hedge the interest rate risk associated with certain borrowings.

The Company’s derivative instruments include both interest rate swap agreements and ERIS swap futures, which are used to economically hedge the interest rate risk associated with certain borrowings.

Pursuant to these arrangements, the Company agreed to pay a fixed rate of interest and receive a variable interest rate, generally based on the Secured Overnight Financing Rate (“SOFR”), on the notional amount of the Swap.

1 unchanged sentence

Variation margin payments on the Company’s Swaps are treated as a legal settlement of the exposure under the related Swap contract, the effect of which reduces what would have otherwise been reported as the fair value of the Swap, generally to zero.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

The following table presents the assets pledged as collateral against the Company’s Swaps:

7 unchanged sentences

December 31, 2025 December 31, 2024

Amount Weighted

Interest Rate Weighted

Average Variable

Interest Rate (2)

Amount Weighted

Interest Rate Weighted

Average Variable

Interest Rate (2)

Notional Amount (2) Weighted Average Fixed-Pay Interest Rate Weighted Average Variable Interest Rate (3)

(Dollars in Thousands)

Within 30 days $ — — % — % $ 450,000 1.16 % 4.49 %

450,000 1.16 % 4.49 % $ — — % — %

Over 30 days to 3 months — — — 100,000 1.65 4.49

7 unchanged sentences

Over 72 months 827,300 3.36 3.87 545,150 3.42 4.49

545,150 3.42 4.49 292,650 4.32 5.38

Total Swaps $ 4,480,500 2.74 % 3.87 % $ 3,313,750 2.20 % 4.49 %

(1) Each maturity category reflects contractual amortization and/or maturity of notional amounts.

(2) As of December 31, 2025, the aggregate notional amounts of Swaps include $ 2.1 billion of interest rate swap agreements and $ 2.4 billion of ERIS swap futures.

As of December 31, 2024, all aggregate notional amounts of Swaps were from interest rate swap agreements.

(3) Reflects the benchmark variable rate due from the counterparty at the date presented.

This rate adjusts daily based on SOFR.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

Impact of Derivative Instruments on Earnings

The following table present the components of Net gain/(loss) on derivatives used for risk management purposes for the years ended December 31, 2024, 2023 and 2022, which is presented in Other Income/(Loss), net in the consolidated statements of operations:

The following table presents the components of Net gain/(loss) on derivatives used for risk management purposes for the years ended December 31, 2025, 2024 and 2023, which is presented in Other Income/(Loss), net in the consolidated statements of operations:

For the Year Ended December 31,

(In Thousands) 2025 2024 2023

Income on swap variable receive leg $ 177,062 $ 158,554 $ 52,395

Expense on swap fixed pay leg ( 64,290 ) ( 51,400 ) ( 42,353 )

Income on Swaps variable receive leg $ 155,923 $ 177,062 $ 158,554

Expense on Swaps fixed pay leg ( 94,432 ) ( 64,290 ) ( 51,400 )

Unrealized mark-to-market gain/(loss) ( 65,612 ) 2,478 ( 91,696 )

2,478 ( 91,696 ) 208,712

Net price alignment expense on margin collateral received ( 4,145 ) ( 9,217 ) ( 11,697 )

Realized gain/(loss) on terminated Swaps ( 27,278 ) ( 27,530 ) —

( 27,530 ) — —

Net gain on TBA short positions — — —

Total Net gain/(loss) on derivatives used for risk management purposes $ ( 35,544 ) $ 78,503 $ 3,761

$ 78,503 $ 3,761 $ 255,179

MFA FINANCIAL, INC.

16 unchanged sentences

6,377,576 6,336,462 5.08 % See Note 14

Convertible senior notes Unsecured — — 6.84 %

Other secured financing (3)

23,908 23,908 6.47 % 54.4

8.875 % Senior Notes due 2029

19 unchanged sentences

Convertible senior notes Unsecured — — 6.84 %

8.875 % Senior Notes due 2029

115,000 111,270 9.83 % 49.5

9.00 % Senior Notes due 2029

75,000 72,390 9.91 % 55.5

Impact of net Swap carry ( 1.24 ) %

8 unchanged sentences

(2) Weighted average cost of funding reflects year-to-date interest expense (inclusive of the amortization of deferred financing costs) divided by average balance for the financing agreements.

The cost of funding for the total financing agreements includes the impact of the net carry (the difference between swap interest income received and swap interest expense paid) on the Company’s Swaps.

The cost of funding for the total financing agreements includes the impact of the net Swap carry (the difference between Swap interest income received and Swap interest expense paid) on the Company’s Swaps.

For the year ended December 31, 2025, this decreased the overall funding cost by 62 basis points, and for the year ended December 31, 2024, this decreased the overall funding cost by 124 basis points.

The Company does not allocate the impact of the net carry by type of financing agreement.

The Company does not allocate the impact of the net Swap carry by type of financing agreement.

(3) Up to $ 20 million of the unpaid principal balance is subject to a 60-day call period at the counterparty’s option.

MFA FINANCIAL, INC.

7 unchanged sentences

Agreements with mark-to-market collateral provisions Residential whole loans $ 585,625 $ 49,404 $ 216,134 $ 481,430 $ 1,332,593

$ 559,339 $ 47,011 $ 389,220 $ 326,014 $ 1,321,584

Agreements with mark-to-market collateral provisions Securities 2,980,762 — — — 2,980,762

1 unchanged sentence

Agreements with non-mark-to-market collateral provisions Residential whole loans 22,755 — 11,020 48,244 82,019

23,267 — 533,559 20,405 577,231

(1) $ 3.5 billion of the mark-to-market agreements (included in the 0-3 months category) can be terminated by either party.

2 unchanged sentences

The following table presents information with respect to the Company’s financing agreements with mark-to-market collateral provisions and associated assets pledged as collateral at December 31, 2025 and 2024:

(Dollars in Thousands) December 31,

2024 December 31,

(Dollars in Thousands) December 31, 2025 December 31, 2024

Mark-to-market financing agreements secured by residential whole loans (1)

12 unchanged sentences

(1) Includes an aggregate of $ 466.9 million and $ 394.9 million of mark-to-market financing collateralized by Non-Agency MBS with a fair value of $ 600.0 million and $ 506.6 million obtained in connection with the Company’s loan securitization transactions that are eliminated in consolidation as of December 31, 2025 and December 31, 2024, respectively.

(2) Haircut represents the percentage amount by which the collateral value is contractually required to exceed the loan amount.

(2) Haircut represents the percentage amount by which the collateral value is contractually required to exceed the amount borrowed.

The following table presents information with respect to the Company’s financing agreements with non-mark-to-market collateral provisions and associated assets pledged as collateral at December 31, 2025 and 2024:

(Dollars in Thousands) December 31,

2024 December 31,

(Dollars in Thousands) December 31, 2025 December 31, 2024

Non-mark-to-market financing secured by residential whole loans $ 82,016 $ 576,774

50 unchanged sentences

Counterparty Amount at Risk (1)

Weighted Average Months to Maturity

Percent of Stockholders’ Equity

Weighted Average Months to Maturity Percent of Stockholders’ Equity

(Dollars in Thousands)

Wells Fargo $ 134,564 3.3 7.36 %

Barclays 107,848 4.7 5.86

(1) The amount at risk reflects the difference between (a) the amount loaned to the Company through financing agreements, including interest payable, and (b) the cash and the fair value of the assets pledged by the Company as collateral, including accrued interest receivable on such assets.

6 unchanged sentences

Financing Agreements

(In Thousands) Securitized

Non-Mark-to-Market (1)

(In Thousands) Securitized Non-Mark-to-Market (1)

Mark-to-Market (1)

7 unchanged sentences

Financing Agreements

(In Thousands) Securitized

Non-Mark-to-Market (1)

Mark-to-Market (1)

(In Thousands) Securitized Non-Mark-to-Market (1)

Mark-to-Market (1) Total

Residential whole loans (2)

4 unchanged sentences

Total $ 6,913,710 $ 740,260 $ 2,516,502 $ 10,170,472

(1) An aggregate of $ 27.1 million and $ 36.4 million of accrued interest on those assets pledged against non-mark-to-market and mark-to-market financings agreements had also been pledged as of December 31, 2024 and 2023, respectively.

(1) An aggregate of $ 27.0 million and $ 27.1 million of accrued interest on those assets pledged against non-mark-to-market and mark-to-market financing agreements had also been pledged as of December 31, 2025 and 2024, respectively.

(2) Includes an aggregate of $ 466.9 million and $ 394.9 million of mark-to-market financing collateralized by Non-Agency MBS with a fair value of $ 600.0 million and $ 506.6 million obtained in connection with the Company’s loan securitization transactions that are eliminated in consolidation as of December 31, 2025 and December 31, 2024, respectively.

31 unchanged sentences

Given that a portion of the Company’s business is conducted through one or more TRS, the net taxable income earned by its domestic TRS, if any, is subject to corporate income taxation.

To maintain the Company’s REIT election, no more than 20% of the value of the Company’s assets at the end of each calendar quarter may consist of stock or securities in TRS.

To maintain the Company’s REIT election, no more than 20% (25% for taxable years beginning after December 31, 2025) of the value of the Company’s assets at the end of each calendar quarter may consist of stock or securities in TRS.

For purposes of the determination of U.S.

31 unchanged sentences

Federal — — 251

State — 48 29

Total deferred provision/(benefit)

1 unchanged sentence

$ ( 735 ) $ 443 $ 278

The following is a reconciliation of the statutory federal tax rate to the Company’s effective tax rate at December 31, 2024, 2023, and 2022:

As further described in Note 2(s), the Company has elected to retrospectively adopt the guidance in ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Taxes Disclosures, or ASU 2023-09.

The following is a reconciliation of the statutory federal tax rate to the Company’s effective tax rate for the years ended December 31, 2025, 2024, and 2023:

For the Year Ended

December 31, 2025 December 31, 2024 December 31, 2023

Federal statutory rate 21.0 % 21.0 % 21.0 %

Non-taxable REIT income (dividends paid deduction) ( 21.0 ) % ( 34.9 ) % 2.6 %

Other differences in taxable income/(loss) from GAAP

(Dollars in Thousands)

Amount Percentage Amount Percentage Amount Percentage

Federal statutory tax rate $ 36,970 21.0 % $ 25,136 21.0 % $ 16,893 21.0 %

State and local taxes, net of federal income tax effect (1)

246 0.1 % ( 26 ) — % ( 48 ) ( 0.1 ) %

State and local taxes — % — % — %

Change in valuation allowance on DTAs ( 11.8 ) % ( 9.5 ) % ( 10.1 ) %

Changes in valuation allowances 16,014 9.1 % ( 7,641 ) ( 6.4 ) % ( 7,706 ) ( 9.6 ) %

Nontaxable or nondeductible items

REIT GAAP income or loss not subject to federal income tax ( 26,714 ) ( 15.2 ) % ( 9,171 ) ( 7.7 ) % ( 16,123 ) ( 20.0 ) %

VIE income or loss ( 18,693 ) ( 10.6 ) % ( 1,124 ) ( 0.9 ) % 7,072 8.8 %

TRS permanent differences 280 0.2 % — — % 607 0.8 %

Basis difference in contributed assets to subsidiaries ( 8,307 ) ( 4.7 ) % ( 6,616 ) ( 5.5 ) % — — %

Other adjustments ( 531 ) ( 0.3 ) % ( 115 ) ( 0.2 ) % ( 417 ) ( 0.6 ) %

Effective tax rate $ ( 735 ) ( 0.4 ) % $ 443 0.3 % $ 278 0.3 %

(1) The jurisdictions that contribute to the majority (greater than 50%) of the tax effect in this category include California, Maine, Minnesota, New Jersey, and Pennsylvania for 2025.

No jurisdictions materially contributed to the majority (greater than 50%) of the net tax effect in this category for 2024 and 2023.

The amount of cash taxes paid by (refunded to) the Company by jurisdiction for the year ended:

For the Year Ended

(In Thousands)

December 31, 2025

Total cash taxes paid (refunded)

MFA FINANCIAL, INC.

6 unchanged sentences

The original term specified in this lease is approximately fifteen years with a termination date of December 2036 and an option to renew for an additional five years .

Additionally, in December 2024, Lima One executed a new office lease for its headquarters in Greenville, South Carolina.

Lima One moved into the new office space on July 15, 2025.

For the year ended December 31, 2025, the Company recorded an expense in connection with this lease of approximately $ 2.1 million.

The original term specified in this lease is approximately nine years with a termination date of December 2033 and two options to renew for an additional four years for the first extension and an additional five years for the second extension.

The Company recognized total lease expense of $ 8.6 million, $ 7.4 million and $ 6.7 million for the years ended December 31, 2025, 2024 and 2023, respectively, which is included in Other general and administrative expense on the Company’s consolidated statements of operations.

6 unchanged sentences

Total Lease Liability (Note 7)

Additionally, in December 2024, Lima One executed a lease agreement on new office space in Greenville, South Carolina for an 8.5 -year term.

The Company expects the average annual lease rental expense to be approximately $ 2.4 million, which is not included in the table above.

Lima One expects to relocate to the space in the latter half of 2025.

(b) Representations and Warranties in Connection with Loan Securitization and Other Loan Sale Transactions

8 unchanged sentences

In connection with one of its investments in a loan origination partner, the Company has guaranteed up to $ 51.0 million of such investee’s warehouse financing.

As of December 31, 2024, the Company has no t recorded a liability in connection with this guarantee.

As of December 31, 2025, the Company has no t recorded a loss in connection with this guarantee.

MFA FINANCIAL, INC.

1 unchanged sentence

December 31, 2025

(e) Litigation

The Company reserves for contingent liabilities when it is determined that a liability is probable and reasonably estimable.

Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, the Company will not incur material costs.

The Company is not presently named as a defendant in any material litigation arising outside the ordinary course of business.

However, the Company is from time to time involved in litigation arising in the course of its business activities.

During the year ended December 31, 2025, the Company recorded an aggregate litigation reserve totaling $ 1.2 million within Other Income/(Loss), net and estimates additional reasonably possible losses of up to $ 1.5 million.

Stockholders’ Equity

2 unchanged sentences

On April 15, 2013, the Company completed the issuance of 8.0 million shares of its Series B Preferred Stock with a par value of $ 0.01 per share, and a liquidation preference of $ 25.00 per share plus accrued and unpaid dividends, in an underwritten public offering.

On August 15, 2025, the Company filed an articles supplementary to the amended and restated articles of incorporation, which increased the number of authorized shares of Series B Preferred Stock to 12.1 million from 8.1 million.

Also on August 15, 2025, the Company entered into a distribution agreement pursuant to the terms of which the Company may, from time to time, offer and sell shares of its preferred stock having an aggregate gross sales price of up to $ 100.0 million.

During the year ended December 31, 2025, approximately 125,000 shares of Series B Preferred Stock were issued for gross proceeds of approximately $ 2.7 million.

The Company’s Series B Preferred Stock is entitled to receive a dividend at a rate of 7.50 % per year on the $ 25.00 liquidation preference before the Company’s common stock is paid any dividends and is senior to the Company’s common stock with respect to distributions upon liquidation, dissolution or winding up.

6 unchanged sentences

Year Declaration Date

Record Date Payment Date Dividend Per Share

Record Date Payment Date Annual Dividend Rate

Dividend Per Share

2025 November 20, 2025 December 4, 2025 December 31, 2025 7.50 % $ 0.46875

August 16, 2024 August 30, 2024 September 30, 2024 0.46875

August 21, 2025 September 4, 2025 September 30, 2025 7.50 0.46875

May 19, 2025 June 4, 2025 June 30, 2025 7.50 0.46875

1 unchanged sentence

2024 November 20, 2024 December 3, 2024 December 31, 2024 7.50 0.46875

August 17, 2023 September 5, 2023 September 29, 2023 0.46875

August 16, 2024 August 30, 2024 September 30, 2024 7.50 0.46875

May 21, 2024 June 5, 2024 June 28, 2024 7.50 0.46875

4 unchanged sentences

February 21, 2023 March 6, 2023 March 31, 2023 7.50 0.46875

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

6.50 % Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”)

2 unchanged sentences

The total net proceeds the Company received from the offering were approximately $ 266.0 million, after deducting offering expenses and the underwriting discount.

On August 15, 2025, the Company filed an articles supplementary to the amended and restated articles of incorporation, which increased the number of authorized shares of Series C Preferred Stock to 16.7 million from 12.7 million.

During the year ended December 31, 2025, approximately 286,000 shares of Series C Preferred Stock were issued for gross proceeds of approximately $ 6.9 million.

The Company’s Series C Preferred Stock is entitled to receive dividends (i) from and including the original issue date to, but excluding, March 31, 2025, at a fixed rate of 6.50 % per year on the $ 25.00 liquidation preference and (ii) from and after March 31, 2025, at a floating rate equal to three-month London Interbank Offered Rate (“LIBOR”) plus a spread of 5.345 % per year of the $ 25.00 per share liquidation preference before the Company’s common stock is paid any dividends, and is senior to the Company’s common stock with respect to distributions upon liquidation, dissolution or winding up.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

three-month LIBOR as the successor base rate and will include an additional spread adjustment of 0.26161 % per year based on recommendation from the Alternative Reference Rate Committee.

In light of the discontinuance of the publication of three-month LIBOR after June 2023, and pursuant to the Adjustable Interest Rate (LIBOR) Act and the Federal Reserve’s final rules promulgated thereunder, the three-month CME Term SOFR (Secured Overnight Financing Rate) has replaced three-month LIBOR as the successor base rate and includes an additional spread adjustment of 0.26161 % per year based on the recommendation from the Alternative Reference Rate Committee.

Dividends on the Series C Preferred Stock are payable quarterly in arrears on or about March 31, June 30, September 30 and December 31 of each year.

7 unchanged sentences

Year Declaration Date

Record Date Payment Date Dividend Per Share

Record Date Payment Date Annual Dividend Rate

Dividend Per Share

2025 November 20, 2025 December 4, 2025 December 31, 2025 9.60811 % $ 0.613850

August 16, 2024 August 30, 2024 September 30, 2024 0.40625

September 2, 2025 September 4, 2025 September 30, 2025 9.90226 0.639521

May 19, 2025 June 4, 2025 June 30, 2025 9.90578 0.619110

1 unchanged sentence

2024 November 20, 2024 December 3, 2024 December 31, 2024 6.50000 0.406250

August 17, 2023 September 5, 2023 September 29, 2023 0.40625

August 16, 2024 August 30, 2024 September 30, 2024 6.50000 0.406250

May 21, 2024 June 5, 2024 June 28, 2024 6.50000 0.406250

16 unchanged sentences

2024 December 11, 2024 December 31, 2024 January 31, 2025 0.35 (2)

September 20, 2023 October 2, 2023 October 31, 2023 0.35

September 12, 2024 September 27, 2024 October 31, 2024 0.35

June 11, 2024 June 28, 2024 July 31, 2024 0.35

1 unchanged sentence

2023 December 13, 2023 December 29, 2023 January 31, 2024 0.35 (3)

September 13, 2022 September 30, 2022 October 31, 2022 0.44

September 20, 2023 October 2, 2023 October 31, 2023 0.35

June 15, 2023 June 30, 2023 July 31, 2023 0.35

8 unchanged sentences

For more information see the Company’s 2024 Dividend Tax Information on its website.

(4) The $ 0.44 per share dividend declared on March 11, 2022, has been adjusted to reflect the Reverse Stock Split;

the amount actually paid in respect of such dividend was $ 0.11 per share, which was based on the pre-split number of shares held by stockholders at the record date for such dividend (March 22, 2022).

In general, the Company’s common stock dividends have been characterized as ordinary income to its stockholders for income tax purposes.

7 unchanged sentences

The Company’s DRSPP is designed to provide existing stockholders and new investors with a convenient and economical way to purchase shares of common stock through the automatic reinvestment of dividends and/or optional cash investments.

At December 31, 2024, approximately 2.0 million shares of common stock remained available for issuance pursuant to the DRSPP shelf registration statement.

During the years ended December 31, 2024, 2023 and 2022, the Company issued 0 , 6,666 and 80,027 shares of common stock through the DRSPP, raising net proceeds of approximately $ 0 , $ 74,000 and $ 1.2 million, respectively.

The DRSPP shelf registration statement expired by its terms on September 27, 2025.

During the years ended December 31, 2025, 2024 and 2023, the Company issued 0 , 0 and 6,666 shares of common stock through the DRSPP, raising net proceeds of approximately $ 0 , $ 0 and $ 74,000 , respectively.

From the inception of the DRSPP in September 2003 through December 31, 2025, the Company issued 8,848,219 shares pursuant to the DRSPP, raising net proceeds of $ 290.8 million.

(d) Preferred Stock At-the-Market Offering Program

On August 15, 2025, the Company entered into a distribution agreement pursuant to the terms of which the Company may, from time to time, offer and sell shares of its Series B Preferred Stock and/or its Series C Preferred Stock having an aggregate gross sales price of up to $ 100.0 million, through various sales agents in transactions deemed to be “at-the-market” offerings under federal securities laws (the “Preferred Stock ATM Program”).

The Company sold an aggregate of approximately 411,000 shares of

MFA FINANCIAL, INC.

1 unchanged sentence

December 31, 2025

(d) At-the-Market Offering Program

On February 29, 2024, the Company entered into a distribution agreement pursuant to the terms of which the Company may offer and sell shares of its common stock having an aggregate gross sales price of up to $ 300.0 million, from time to time, through various sales agents in transactions deemed to be “at-the-market” offerings under federal securities laws (the “ATM Program”).

The Company did not sell any shares of common stock through the ATM Program during the year ended December 31, 2024.

(e) Stock Repurchase Program

On February 29, 2024, the Company announced its Board had authorized a new $ 200 million stock repurchase program with respect to the Company’s common stock, which will be in effect through the end of 2025.

The Company’s prior stock repurchase program, which was adopted in March 2022, had authorized the repurchase of up to $ 250 million of common stock and expired on December 31, 2023, with approximately $ 202.5 million remaining available at the date of expiration.

preferred stock through the Preferred Stock ATM Program during the year ended December 31, 2025 for gross sales proceeds of approximately $ 9.5 million.

As of December 31, 2025, approximately $ 90.5 million remained available under the Preferred Stock ATM Program.

(e) Common Stock At-the-Market Offering Program

On August 15, 2025, the Company entered into a distribution agreement pursuant to the terms of which the Company may offer and sell shares of its common stock having an aggregate gross sales price of up to $ 300.0 million, from time to time, through various sales agents in transactions deemed to be “at-the-market” offerings under federal securities laws (the “Common Stock ATM Program”).

The prior distribution agreement entered into on February 29, 2024, which had substantially the same terms, was terminated.

The Company did not sell any shares of common stock through the Common Stock ATM Program during the years ended December 31, 2025 and 2024.

(f) Stock Repurchase Program

On February 29, 2024, the Company announced its Board had authorized a $ 200 million stock repurchase program with respect to the Company’s common stock, which was in effect through the end of 2025.

Approximately $ 190 million remained available for repurchase under the stock repurchase program upon its expiration.

On February 12, 2026, the Company’s Board authorized a new $ 200 million stock repurchase program with respect to the Company’s common stock, which will be in effect through December 31, 2028.

The stock repurchase program does not require the purchase of any minimum number of shares.

1 unchanged sentence

Acquisitions under the stock repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means, in accordance with applicable securities laws (including, in the Company’s discretion, through the use of one or more plans adopted under Rule 10b5-1 promulgated under the Exchange Act of 1934, as amended (the “Exchange Act”)).

The Company did not repurchase any shares of its common stock during the years ended December 31, 2024 and 2023.

During the year ended December 31, 2025, the Company repurchased 1,026,117 shares of its common stock through the stock repurchase program at an average cost of $ 9.76 per share and a total cost of approximately $ 10.0 million, net of fees and commissions paid to the sales agent of approximately $ 10,000 .

(f) Accumulated Other Comprehensive Income/(Loss)

The Company did not repurchase any shares of its common stock during the year ended December 31, 2024 and 2023.

MFA FINANCIAL, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

(g) Accumulated Other Comprehensive Income/(Loss)

The following tables present changes in the balances of each component of the Company’s AOCI:

For the Year Ended December 31, 2025

(In Thousands) Net Unrealized Gain/(Loss) on AFS Securities

Net Unrealized Gain/(Loss) on Financing Agreements (1)

(In Thousands) Net Unrealized Gain/(Loss)

on AFS Securities Net Unrealized Gain/(Loss) on Financing Agreements (1)

Balance at beginning of period $ 9,476 $ — $ 9,476

1 unchanged sentence

Amounts reclassified from AOCI ( 226 ) — ( 226 )

( 9,986 ) — ( 9,986 )

Net OCI during the period (2)

2 unchanged sentences

For the Year Ended December 31, 2024

(In Thousands) Net Unrealized Gain/(Loss) on AFS Securities

Net Unrealized Gain/(Loss) on Financing Agreements (1)

(In Thousands) Net Unrealized Gain/(Loss) on AFS Securities Net Unrealized Gain/(Loss) on Financing Agreements (1)

Balance at beginning of period $ 17,698 $ — $ 17,698

1 unchanged sentence

Amounts reclassified from AOCI ( 9,986 ) — ( 9,986 )

( 770 ) — ( 770 )

Net OCI during the period (2)

2 unchanged sentences

For the Year Ended December 31, 2023

(In Thousands) Net Unrealized Gain/(Loss) on AFS Securities

Net Unrealized Gain/(Loss) on Financing Agreements (1)

(In Thousands) Net Unrealized Gain/(Loss) on AFS Securities Net Unrealized Gain/(Loss) on Financing Agreements (1)

Balance at beginning of period $ 21,341 $ — $ 21,341

15 unchanged sentences

Net income/(loss) to common stockholders $ 176,783 $ 119,251 $ 80,164

$ 119,251 $ 80,164 $ ( 231,581 )

Dividends declared on preferred stock ( 40,318 ) ( 32,875 ) ( 32,875 )

Dividends, dividend equivalents and undistributed earnings allocated to participating securities ( 781 ) ( 453 ) —

Net income/(loss) to common stockholders - basic

$ 85,923 $ 47,289 $ ( 265,083 )

Net income/(loss) attributable to common stockholders - basic $ 135,684 $ 85,923 $ 47,289

Basic weighted average common shares outstanding 103,554 103,489 102,215

Basic Earnings/(Loss) per Share $ 1.31 $ 0.83 $ 0.46

$ 0.83 $ 0.46 $ ( 2.57 )

Diluted Earnings/(Loss) per Share:

Net income/(loss) to common stockholders - basic $ 135,684 $ 85,923 $ 47,289

$ 85,923 $ 47,289 $ ( 265,083 )

Dividends, dividend equivalents and undistributed earnings allocated to participating securities — — —

Interest expense on Convertible Senior Notes — — —

Net income/(loss) to common stockholders - diluted

$ 85,923 $ 47,289 $ ( 265,083 )

Net income/(loss) attributable to common stockholders - diluted $ 135,684 $ 85,923 $ 47,289

Basic weighted average common shares outstanding 103,554 103,489 102,215

4 unchanged sentences

Diluted Earnings/(Loss) per Share $ 1.30 $ 0.82 $ 0.46

$ 0.82 $ 0.46 $ ( 2.57 )

(1) At December 31, 2025 and 2024, the Company had approximately 1,013,000 and 324,000 equity instruments outstanding that were excluded from the calculation of diluted EPS for the years ended December 31, 2025 and 2024, respectively, as they were determined to be anti-dilutive.

1 unchanged sentence

These equity instruments may have a dilutive impact on future EPS.

During the year ended December 31, 2024, the Convertible Senior Notes were determined to be anti-dilutive and were excluded from the calculation of diluted EPS under the “if-converted” method.

During the years ended December 31, 2024 and 2023, the Convertible Senior Notes were determined to be anti-dilutive and were excluded from the calculation of diluted EPS under the “if-converted” method.

Under this method, the periodic interest expense for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether the conversion option is in or out of the money) are included in the denominator for the purpose of calculating diluted EPS.

1 unchanged sentence

(a) Equity Compensation Plan

In accordance with the terms of the Company’s Equity Plan, which was approved by the Company’s stockholders on June 6, 2023 (and which amended and restated the Company’s 2020 Equity Compensation Plan), directors, officers and employees of the Company and any of its subsidiaries and other persons expected to provide significant services for the Company and any of its subsidiaries are eligible to receive grants of stock options (“Options”), restricted stock, RSUs, dividend equivalent rights and other stock-based awards under the Equity Plan.

In accordance with the terms of the Company’s Equity Plan, which was approved by the Company’s stockholders on June 3, 2025 (and which amended and restated the Company’s Equity Compensation Plan, which had been most recently approved in June 2023), directors, officers and employees of the Company and any of its subsidiaries and other persons expected to provide significant services for the Company and any of its subsidiaries are eligible to receive grants of stock options (“Options”), restricted stock, RSUs, dividend equivalent rights and other stock-based awards under the Equity Plan.

Subject to certain exceptions, stock-based awards relating to a maximum of 13.2 million shares of common stock may be granted under the Equity Plan;

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In determining the fair value for 1,300,017 of these awards granted in 2025, the Company applied:

(i) a weighted average volatility estimate of approximately 35.55 %, which was determined considering historic volatility in the price of the Company’s and its peer group companies common stock over the three-year period prior to the grant date and the implied volatility of certain exchange-traded options on the Company’s and peer group companies’ common stock at the grant date;

(i) a weighted average volatility estimate of approximately 34.73 %, which was determined considering historic volatility in the price of the Company’s and its peer group companies common stock over the three-year period prior to the grant date and the implied volatility of certain exchange-traded options on the Company’s and its peer group companies’ common stock at the grant date;

and (ii) a weighted average risk-free rate of 4.20 % based on the continuously compounded constant maturity treasury rate corresponding to a maturity commensurate with the expected vesting term of the awards, respectively.

5 unchanged sentences

In determining the fair value for 1,255,486 of these awards granted in 2024, the Company applied:

(i) a weighted average volatility estimate of approximately 56 %, which was determined considering historic volatility in the price of the Company’s and its peer group companies common stock over the three-year period prior to the grant date and the implied volatility of certain exchange-traded options on the Company’s and peer group companies’ common stock at the grant date;

(i) a weighted average volatility estimate of approximately 35.55 %, which was determined considering historic volatility in the price of the Company’s and its peer group companies common stock over the three-year period prior to the grant date and the implied volatility of certain exchange-traded options on the Company’s and its peer group companies’ common stock at the grant date;

and (ii) a weighted average risk-free rate of 3.91 % based on the continuously compounded constant maturity treasury rate corresponding to a maturity commensurate with the expected vesting term of the awards, respectively.

5 unchanged sentences

In determining the fair value for 1,517,675 of these awards granted in 2023, the Company applied:

(i) a weighted average volatility estimate of approximately 50 %, which was determined considering historic volatility in the price of the Company’s and its peer group companies’ common stock over the three-year period prior to the grant date and the implied volatility of certain exchange-traded options on the Company’s and peer group companies’ common stock at the grant date;

(i) a weighted average volatility estimate of approximately 56 %, which was determined considering historic volatility in the price of the Company’s and its peer group companies’ common stock over the three-year period prior to the grant date and the implied volatility of certain exchange-traded options on the Company’s and its peer group companies’ common stock at the grant date;

and (ii) a weighted average risk-free rate of 4.12 % based on the continuously compounded constant maturity treasury rate corresponding to a maturity commensurate with the expected vesting term of the awards, respectively.

The weighted average grant date fair value for the remaining 90,388 awards with a service condition only was estimated based on the closing price of the Company’s common stock at the grant date of $ 11.23 .

All of the 381,397 RSUs with market and service conditions granted in 2022 are subject to a one-year post-vesting holding requirement.

All of the 997,383 RSUs granted in 2023, the vesting of which is subject to both market and service conditions, are also subject to a one-year post-vesting holding requirement prior to settlement.

To account for the estimated loss of value due to this holding restriction, a discount for lack of marketability is applied after the payout value is determined.

1 unchanged sentence

Restricted Stock

The Company did not grant any shares of restricted common stock during the years ended December 31, 2025, 2024 and 2023.

At December 31, 2025, 2024 and 2023, the Company did no t have any unvested shares of restricted common stock outstanding, and no restricted shares vested during the years ended December 31, 2025 and 2024, respectively.

2 unchanged sentences

Dividend equivalents may be granted as a separate instrument or may be a right associated with the grant of another award (e.g., an RSU) under the Equity Plan, and they are paid typically in cash or other consideration at such times and in accordance with such rules, as the Compensation Committee of the Board shall determine in its discretion.

Dividend equivalent payments are generally charged to Stockholders’ Equity when common stock dividends are declared to the extent that

MFA FINANCIAL, INC.

1 unchanged sentence

December 31, 2025

such equivalents are expected to vest.

The Company made dividend equivalent payments associated with RSU awards of approximately $ 2.4 million, $ 463,000 , and $ 659,000 during the years ended December 31, 2024, 2023 and 2022, respectively.

In addition, no dividend equivalents rights awarded as separate instruments were granted during the years ended December 31, 2024, 2023 and 2022.

equivalent payments are generally charged to Stockholders’ Equity when common stock dividends are declared to the extent that such equivalents are expected to vest.

The Company made dividend equivalent payments associated with RSU awards of approximately $ 3.9 million, $ 2.4 million, and $ 463,000 during the years ended December 31, 2025, 2024 and 2023, respectively.

In addition, no dividend equivalent rights awarded as separate instruments were granted during the years ended December 31, 2025, 2024 and 2023.

Expense Recognized for Equity-Based Compensation Instruments

34 unchanged sentences

Subject to certain restrictions, all of the Company’s employees are eligible to make tax-deferred contributions to the Savings Plan subject to limitations under applicable law.

Participant’s accounts are self-directed and the Company bears the costs of administering the Savings Plan.

Participants’ accounts are self-directed and the Company bears the costs of administering the Savings Plan.

The Company matches 100 % of the first 3 % of eligible compensation deferred by employees and 50 % of the next 2 %, subject to a maximum as provided by the Code.

23 unchanged sentences

Residential Mortgage Securities

In determining the fair value of the Company’s other residential mortgage securities, management considers a number of observable market data points, including prices obtained from pricing services and brokers as well as dialogue with market participants.

In determining the fair value of the Company’s residential mortgage securities, management considers a number of observable market data points, including prices obtained from pricing services and brokers as well as dialogue with market participants.

Valuations of TBA securities positions are based on executed levels for positions entered into and subsequently rolled forward, as well as prices obtained from pricing services for outstanding positions at each reporting date.

64 unchanged sentences

Changes in fair value recorded in Net gain/(loss) on residential whole loans measured at fair value through earnings 150,122 96,353

96,353 114,478

Repayments ( 2,251,708 ) ( 1,962,039 )

Loan sales and repurchases ( 285,368 ) ( 683,407 )

( 683,407 ) ( 108,657 )

Transfer to REO ( 94,874 ) ( 82,006 )

7 unchanged sentences

Payment of principal ( 262,210 ) ( 400,770 )

Change in unrealized losses

Changes in unrealized losses — —

Balance at end of period $ 48,245 $ 284,843

6 unchanged sentences

Payment of principal ( 188,236 ) ( 286,504 )

Changes in unrealized losses — —

Balance at end of period $ 61,068 $ 19,782

32 unchanged sentences

$ 618 $ 21 $ 8,500

(1) Excludes approximately $ 14.7 million of Residential whole loans, at fair value, with a UPB of $ 15.9 million, which were marked-to-market, but not based on a model at December 31, 2023 and approximately $ 103.7 million of Residential whole loans, at fair value for which the closing of the purchase transaction had not occurred as of that period end.

(1) Excludes approximately $ 44.9 million of Residential whole loans, at fair value, with a UPB of $ 78.2 million, which were marked-to-market, but not based on a model, at December 31, 2024.

(2) Amounts are weighted based on the fair value of the underlying loan.

16 unchanged sentences

Residential whole loans 2 51,022 51,022 52,073 52,073

2 52,073 52,073 55,779 55,779

Securities, at fair value 2 3,360,280 3,360,280 1,537,513 1,537,513

6 unchanged sentences

Securitized debt 2 6,336,462 6,290,788 5,794,977 5,724,702

2 5,794,977 5,724,702 4,750,805 4,655,195

Convertible senior notes 2 — — 208,989 209,065

Other secured financing 3 23,908 23,908 — —

8.875 % Senior Notes

2 unchanged sentences

2 72,858 75,338 72,390 75,218

(1) Carrying value of securitized debt, Convertible Senior Notes, 8.875 % Senior Notes, 9.00 % Senior Notes, and certain repurchase agreements is net of associated debt issuance costs.

(1) Carrying value of securitized debt, 8.875 % Senior Notes, 9.00 % Senior Notes, and certain repurchase agreements is net of associated debt issuance costs.

Other Assets Measured at Fair Value on a Nonrecurring Basis

The Company holds REO at the lower of the current carrying amount or fair value less estimated selling costs.

During the years ended December 31, 2024 and 2023, the Company recorded REO with an aggregate estimated fair value, less estimated cost to sell, of $ 103.7 million and $ 84.7 million, respectively, at the time of foreclosure.

In addition, at December 31, 2023, the Company held one property which is considered Commercial REO (see Note 5) which is accounted for similarly and had an estimated fair value, less estimated cost to sell, of $ 34.2 million upon acquisition, of which the Company’s 75 % interest was $ 25.7 million.

In the first quarter of 2024, this Commercial REO property’s estimated fair value, less estimated cost to sell, was updated to $ 33.3 million, of which the Company’s 75 % interest was $ 25.0 million.

In the second quarter of 2024, this Commercial REO property’s estimated fair value, less estimated cost to sell, was updated to $ 33.1 million, of which the Company’s 75 % interest was $ 24.8 million.

Further, during the third quarter of 2024, the Company recognized at fair value two properties considered Commercial REO (see Note 5) at $ 28.4 million and $ 40.0 million, of which the Company’s 75 % and 49 % interests were $ 10.3 million and $ 8.2 million (net of related third-party financing), respectively.

The Company holds REO and Commercial REO (see Note 5) at the lower of the current carrying amount or fair value less estimated selling costs.

The Company classifies fair value measurements of REO as Level 3 in the fair value hierarchy.

REO - During the years ended December 31, 2025 and 2024, the Company recorded REO with an aggregate estimated fair value, less estimated cost to sell, of $ 107.1 million and $ 103.7 million, respectively, at the time of foreclosure.

During the year ended December 31, 2025, the Company reclassified three REO properties originally classified as held for investment to held for sale status and marked them down to their estimated fair value, less estimated cost to sell, of $ 10.4 million.

Commercial REO - During the year ended December 31, 2025, the Company did not record any new Commercial REO, but recorded valuation adjustments on existing Commercial REO totaling $( 1.5 ) million.

During the year ended December 31, 2024, the Company recognized at fair value two properties considered Commercial REO at $ 28.4 million and $ 40.0 million, of which the Company’s 75 % and 49 % interests were $ 10.3 million and $ 4.9 million (net of related third-party financing), respectively.

During the year ended December 31, 2024, the Company recorded valuation adjustments on Commercial REO totaling $( 0.7 ) million.

The Company determined to sell certain residential whole loans in the fourth quarter of 2023.

21 unchanged sentences

Outstanding amount of Senior Bonds, at carrying value (1)

$ 489,718 $ 583,597

Outstanding amount of Senior Bonds, at fair value $ 5,846,744 $ 5,211,380

Outstanding amount of Senior Bonds, total $ 6,336,462 $ 5,794,977

Weighted average fixed rate for Senior Bonds issued 5.02 % (2) 4.51 % (2)

Weighted average contractual maturity of Senior Bonds 36 years (2) 36 years (2)

Weighted average rate for Senior Bonds issued (2) (3)

5.07 % 5.02 %

Weighted average contractual maturity of Senior Bonds (3)

37 years 36 years

Face amount of Senior Support Certificates received by the Company (4)

2 unchanged sentences

(1) Net of $ 0.9 million and $ 1.1 million of deferred financing costs at December 31, 2025 and 2024, respectively.

(2) At December 31, 2024 and 2023, $ 4.2 billion and $ 3.4 billion, respectively, of Senior Bonds sold in securitization transactions contained a contractual coupon step-up feature whereby the coupon increases by either 100 , 150 , or 300 basis points or more at defined dates ranging from 30 months, up to 48 months from issuance if the bond is not redeemed before such date.

(2) At December 31, 2025, 99.6 % and 0.4 % of Senior Bonds had a fixed and variable rate, respectively.

At December 31, 2024, all Senior Bonds had a fixed rate.

(3) At December 31, 2025 and 2024, $ 4.7 billion and $ 4.2 billion, respectively, of Senior Bonds sold in securitization transactions contained a contractual coupon step-up feature whereby the coupon increases by either 100 , 150 , or 300 basis points at defined dates ranging from 30 months, up to 48 months from issuance if the bond is not redeemed before such date.

(4) Provides credit support to the Senior Bonds sold to third-party investors in the securitization transactions.

22 unchanged sentences

For more information on the Company’s investments in securities, see Note 4.

The Company also has interests in certain entities which are deemed to be VIEs which hold commercial property (see Note 5).

The Company also has interests in certain entities which are deemed to be VIEs that hold commercial property (see Note 5).

The Company’s maximum exposure to loss with respect to these entities is their carrying value, which aggregated $ 19.9 million at December 31, 2025.

In addition, as a result of the sale of certain redemption rights in 2022, the SPE’s that held previously securitized Agency eligible investor loans were deconsolidated from the Company’s financial statements, as the Company concluded that it was no longer the primary beneficiary of those SPE’s.

This resulted in the de-recognition of Agency eligible investor loans with an unpaid principal balance of $ 598.0 million and of securitized debt with an unpaid principal balance of $ 567.2 million.

All of the loans and debt were held at fair value.

Accordingly, no significant additional gains or losses were recorded on de-recognition.

Residential Whole Loans and REO (including Residential Whole Loans and REO transferred to consolidated VIEs)

76 unchanged sentences

Net Interest Income/(Expense) $ 121,151 $ 58,238 $ ( 2,910 ) $ 176,479

Reversal of Provision/(Provision) for Credit Losses on Residential Whole Loans 2,842 ( 196 ) — 2,646

Provision for Credit Losses on Other Assets

— — ( 28,579 ) ( 28,579 )

Net Interest Income/(Expense) after Reversal of Provision/(Provision) for Credit Losses $ 191,628 $ 45,830 $ ( 39,815 ) $ 197,643

Reversal/(Provision) for Credit Losses on Residential Whole Loans 8,539 314 — 8,853

Reversal/(Provision) for Credit Losses on Other Assets — — — —

Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses $ 129,690 $ 58,552 $ ( 2,910 ) $ 185,332

Net gain/(loss) on residential whole loans measured at fair value through earnings $ 69,486 $ 20,364 $ — $ 89,850

Impairment and other net gain on securities and other portfolio investments ( 3,146 ) — ( 21,921 ) ( 25,067 )

Net gain on real estate owned 25,348 31 — 25,379

Impairment and other net gain/(loss) on securities and other portfolio investments 8,073 — ( 1,848 ) 6,225

Net gain/(loss) on real estate owned 9,274 118 — 9,392

Net gain/(loss) on derivatives used for risk management purposes 839 2,922 — 3,761

Net gain on securitized debt measured at fair value through earnings 231,176 59,463 — 290,639

Net gain/(loss) on securitized debt measured at fair value through earnings ( 66,969 ) ( 32,620 ) — ( 99,589 )

Lima One mortgage banking income — 43,384 — 43,384

— 46,745 — 46,745

Net realized gain/(loss) on residential whole loans held at carrying value ( 1,240 ) — — ( 1,240 )

Other, net 7,960 2,284 1,087 11,331

Total Other Income/(Loss), net

$ ( 254,407 ) $ 7,260 $ ( 18,117 ) $ ( 265,264 )

Other Income/(Loss), net $ 27,423 $ 36,452 $ ( 761 ) $ 63,114

Compensation and benefits $ — $ 44,827 $ 40,972 $ 85,799

General and administrative expenses — 13,931 22,058 35,989

Other general and administrative expense 214 17,537 26,118 43,869

Loan servicing, financing and other related costs 20,100 1,515 12,521 34,136

3 unchanged sentences

Net Income/(Loss) $ 136,799 $ 26,925 $ ( 83,560 ) $ 80,164

$ ( 88,163 ) $ ( 10,415 ) $ ( 133,003 ) $ ( 231,581 )

Less Preferred Stock Dividend Requirement $ — $ — $ 32,875 $ 32,875

15 unchanged sentences

This segment is comprised of the remainder of the Company’s investments (including any related taxes and the economics of associated financing and hedging instruments).

Subsequent Events

In February 2026, the Company entered into an agreement with the landlord for the current corporate headquarters to accelerate the contractual expiration of its lease to November 30, 2026.

In addition, the Company has reached an agreement in principle to enter into a ten-year lease for new corporate headquarters space located in New York City.

While the Company is still evaluating the financial statement impact of these agreements, the Company currently expects to modify the right-of-use assets and lease obligations, recognize a gain of approximately $ 1 - 2 million, and recognize accelerated depreciation expense in 2026 related to the remaining undepreciated tenant improvements at the current corporate headquarters totaling approximately $ 7 million.

Additionally, the Company expects to recognize a new right-of-use asset and lease liability and recognize lower rental expense at the expected new corporate headquarters.

The Company expects that in the aggregate, once complete, these actions will result in run-rate annual expense savings of approximately $ 4 million per year over the next ten years .

Schedule IV - Mortgage Loans on Real Estate

December 31, 2025

Asset Type Number Interest

Rate Maturity

Date Range Balance Sheet Reported Amount Principal Amount of Loans Subject to Delinquent Principal or Interest

Asset Type Number Interest Rate

Maturity Date Range

Balance Sheet Reported Amount Principal Amount of Loans Subject to Delinquent Principal or Interest

(Dollars in Thousands)

26 unchanged sentences

Purchases and originations

Premium amortization/discount accretion, net 2,250

Reversal of provision for loan loss 959

3 unchanged sentences

Loan sales and repurchases ( 287,982 )

Premium amortization/discount accretion, net ( 7,441 )

Impairment on carrying value loans

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data