MFA FINANCIAL, INC.
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
MFA$6.21-5.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001055160-25-000013
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001055160-25-000018
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 207 previous paragraphs and 202 current paragraphs.
144 unchanged; 52 reworded; 6 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
During the third quarter of 2025, fixed-income market conditions were mixed as investors reacted to evolving macroeconomic data and changing monetary policy expectations. In September 2025, the Federal Reserve reduced the Federal Funds rate by 25 basis points, and reinforced market expectations for further rate reductions in the near term. Fixed-income markets delivered positive returns, with the Bloomberg US Aggregate Index returning 2.03% for the third quarter. During the quarter, we were able to add $1.2 billion of our target assets at attractive yields. These additions included approximately $452.8 million of Non-QM loans, approximately $225.9 million of funded originations of Business purpose loans and draws on existing Transitional loans by Lima One, and approximately $472.8 million of Agency MBS. Given the increased clarity on the projected path of interest rates, lower market volatility, and the increased liquidity of our portfolio, we expect to increase the pace of asset acquisitions in the near term. During the quarter, we executed two securitizations and issued $672.8 million of securitized debt. During the quarter, we made further progress reducing portfolio delinquencies, resolving $222.8 million of previously delinquent loans and reduced overall 60+ day delinquency from 7.5% at the start of the year to 6.8% at September 30, 2025.
Current report
(1)Excludes an allowance for credit losses of $1.9 million at September 30, 2025.
Current report
(2)Excludes an allowance for credit losses of $2.2 million at September 30, 2025.
Current report
(3)Excludes an allowance for credit losses of $6.0 million at September 30, 2025.
Current report
Interest income on our cash and other interest earning assets for the nine months ended September 30, 2025 decreased by $9.2 million to $14.3 million, compared to $23.5 million for the nine months ended September 30, 2024. This decrease primarily reflects a $37.6 million decrease in the average balance of other interest earning assets as well as a decrease in the yield earned on our cash and cash equivalents to 3.36% for the nine months ended September 30, 2025 from 4.26% for the nine months ended September 30, 2024.
Current report
On August 15, 2025, we entered into a distribution agreement pursuant to the terms of which we may, from time to time, offer and sell shares of our Series B Preferred Stock and/or our 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 (or the “Preferred Stock ATM Program”). We sold an aggregate of approximately 195,000 shares of preferred stock through the Preferred Stock ATM Program during the three months ended September 30, 2025 for gross sales proceeds of approximately $4.5 million. As of September 30, 2025, approximately $96 million remained available under the current authorization for the Preferred Stock ATM Program.
Removed paragraphs (11)
Previous report
During the second quarter of 2025, fixed-income markets saw significant volatility driven by a combination of substantial changes to U.S. trade policy, rising geopolitical risks, a downgrade of U.S. sovereign debt, increasing expectations of deficit spending and inflation, and several other significant macroeconomic developments. Despite these challenges, fixed-income markets delivered positive returns by quarter-end with the Bloomberg US Aggregate Index returning 1.21% for the second quarter, and the 10-year Treasury rate effectively unchanged from the beginning of the quarter. During the quarter, we were able to add $876 million of our target assets at attractive yields. These additions included approximately $503 million of Non-QM loans, approximately $242 million of funded originations of Business purpose loans and draws on existing Transitional loans by Lima One, and approximately $131 million of Agency MBS. During the quarter, we executed one securitization and issued $291 million of securitized debt.
Previous report
Agency MBS securities and $55.0 million of MSR-related assets were repaid in full. The net yield on our Securities, at fair value was 6.60% for the three months ended June 30, 2025, compared to 6.07% for the three months ended March 31, 2025.
Previous report
(1)Excludes an allowance for credit losses of $1.4 million at June 30, 2025.
Previous report
(2)Excludes an allowance for credit losses of $2.0 million at June 30, 2025.
Previous report
(3)Excludes an allowance for credit losses of $6.5 million at June 30, 2025.
Previous report
Regulation
Previous report
The Consumer Financial Protection Bureau (or the CFPB) has broad authority over a wide range of consumer financial products and services, including mortgage lending and servicing. One portion of the Dodd-Frank Act, the Mortgage Reform and Anti-Predatory Lending Act (or Mortgage Reform Act), contains underwriting and servicing standards for the mortgage industry, restrictions on compensation for mortgage loan originators, and various other requirements related to mortgage origination and servicing. In addition, the Dodd-Frank Act grants enforcement authority and broad discretionary regulatory authority to the CFPB to prohibit or condition terms, acts or practices relating to residential mortgage loans that the CFPB finds abusive, unfair, deceptive or predatory, as well as to take other actions that the CFPB finds are necessary or proper to ensure responsible affordable mortgage credit remains available to consumers. The Dodd-Frank Act also affects the securitization of mortgages (and other assets) with requirements for risk retention by securitizers and requirements for regulating rating agencies.
Previous report
Numerous regulations have been issued pursuant to the Dodd-Frank Act, including regulations regarding mortgage loan servicing, underwriting and loan originator compensation, and others could be issued in the future. As a result, we are unable to fully predict at this time how the Dodd-Frank Act, as well as other laws or regulations that may be adopted in the future, will affect our business, results of operations and financial condition, or the environment for repurchase financing and other forms of borrowing, the investing environment for Agency MBS, Non-Agency MBS and/or residential mortgage loans, the securitization industry, and the derivative investing environment (particularly Swaps, inclusive of interest rate swap agreements and ERIS swap futures). We believe that the Dodd-Frank Act and the regulations promulgated thereunder are likely to continue to increase the economic and compliance costs for participants in the mortgage and securitization industries, including us.
Previous report
In addition, certain court rulings may call into question the CFPB’s authority and other rules promulgated during CFPB’s self-funding structure. For example, in October 2022, the Fifth Circuit Court of Appeals issued an opinion in Community Financial Services Association of America, et al. v. Consumer Financial Protection Bureau, et al., concluding that the CFPB’s funding structure unconstitutionally violates the Appropriations Clause of the U.S. Constitution, and vacated the payday lending rule that was the subject of challenge. On May 16, 2024, the Supreme Court reversed the Fifth Circuit's decision in the Community Financial case and upheld the CFPB’s funding mechanism as constitutionally permissible. However, future litigation and court rulings may still cast uncertainty on the CFPB’s authority and funding mechanism. Any such uncertainty could adversely impact the cash flow on mortgage loans.
Previous report
The Federal Housing Finance Agency (or FHFA) and both houses of Congress have discussed and considered various measures intended to restructure the U.S. housing finance system and the operations of Fannie Mae and Freddie Mac. Congress may continue to consider legislation that would significantly reform the country’s mortgage finance system, including, among other things, eliminating Freddie Mac and Fannie Mae and replacing them with a single new MBS insurance agency. Many details remain unsettled, including the scope and costs of the agencies’ guarantee and their affordable housing mission, some of which could be addressed even in the absence of large-scale reform.
Previous report
While the likelihood of enactment of major mortgage finance system reform in the short term remains uncertain, it is possible that the adoption of any such reforms could adversely affect the types of assets we can buy, the costs of these assets and our business operations. A reduction in the ability of mortgage loan originators to access Fannie Mae and Freddie Mac to sell their mortgage loans may adversely affect the mortgage markets generally and adversely affect the ability of mortgagors to refinance their mortgage loans. In addition, any decline in the value of securities issued by Fannie Mae and Freddie Mac may affect the value of our Agency MBS and Residential whole loans in general.
Reworded paragraphs (52)
Previous wording
These forward-looking statements include information about possible or assumed future results with respect to our business, financial condition, liquidity, results of operations, plans and objectives. Among the important factors that could cause our actual results to differ materially from those projected in any forward-looking statements that we make are: general economic developments and trends, including the current tensions in international trade, and the performance of the labor, housing, real estate, mortgage finance and broader financial markets; inflation, increases in interest rates and changes in the market (i.e., fair) value of our residential whole loans, MBS, securitized debt and other assets, as well as changes in the value of our liabilities accounted for at fair value through earnings; the effectiveness of hedging transactions; changes in the prepayment rates on residential mortgage assets, an increase of which could result in a reduction of the yield on certain investments in our portfolio and could require us to reinvest the proceeds received by us as a result of such prepayments in investments with lower coupons, while a decrease in which could result in an increase in the interest rate duration of certain investments in our portfolio making their valuation more sensitive to changes in interest rates and could result in lower forecasted cash flows; credit risks underlying our assets, including changes in the default rates and management’s assumptions regarding default rates and loss severities on the mortgage loans in our residential whole loan portfolio; our ability to borrow to finance our assets and the terms, including the cost, maturity and other terms, of any such borrowings; implementation of or changes in government regulations or programs affecting our business (including as a result of the current U.S. Presidential administration); our estimates regarding taxable income the actual amount of which is dependent on a number of factors, including, but not limited to, changes in the amount of interest income and financing costs, the method elected by us to accrete the market discount on residential whole loans and the extent of prepayments, realized losses and changes in the composition of our residential whole loan portfolios that may occur during the applicable tax period, including gain or loss on any MBS disposals and whole loan modifications, foreclosures and liquidations; the timing and amount of distributions to stockholders, which are declared and paid at the discretion of our Board and will depend on, among other things, our taxable income, our financial results and overall financial condition and liquidity, maintenance of our REIT qualification and such other factors as the Board deems relevant; our ability to maintain our qualification as a REIT for federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended (or the “Investment Company…
Excerpt shortened here; the source contains the full paragraph.
Current wording
These forward-looking statements include information about possible or assumed future results with respect to our business, financial condition, liquidity, results of operations, plans and objectives. Among the important factors that could cause our actual results to differ materially from those projected in any forward-looking statements that we make are: general economic developments and trends, including the current tensions in international trade, the U.S. government shutdown, and the performance of the labor, housing, real estate, mortgage finance and broader financial markets; inflation, increases in interest rates and changes in the market (i.e., fair) value of our residential whole loans, MBS, securitized debt and other assets, as well as changes in the value of our liabilities accounted for at fair value through earnings; the effectiveness of hedging transactions; changes in the prepayment rates on residential mortgage assets, an increase of which could result in a reduction of the yield on certain investments in our portfolio and could require us to reinvest the proceeds received by us as a result of such prepayments in investments with lower coupons, while a decrease in which could result in an increase in the interest rate duration of certain investments in our portfolio making their valuation more sensitive to changes in interest rates and could result in lower forecasted cash flows; credit risks underlying our assets, including changes in the default rates and management’s assumptions regarding default rates and loss severities on the mortgage loans in our residential whole loan portfolio; our ability to borrow to finance our assets and the terms, including the cost, maturity and other terms, of any such borrowings; implementation of or changes in government regulations or programs affecting our business (including as a result of the current U.S. Presidential administration); our estimates regarding taxable income the actual amount of which is dependent on a number of factors, including, but not limited to, changes in the amount of interest income and financing costs, the method elected by us to accrete the market discount on residential whole loans and the extent of prepayments, realized losses and changes in the composition of our residential whole loan portfolios that may occur during the applicable tax period, including gain or loss on any MBS disposals and whole loan modifications, foreclosures and liquidations; the timing and amount of distributions to stockholders, which are declared and paid at the discretion of our Board and will depend on, among other things, our taxable income, our financial results and overall financial condition and liquidity, maintenance of our REIT qualification and such other factors as the Board deems relevant; our ability to maintain our qualification as a REIT for federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amend…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
At June 30, 2025, we had total assets of approximately $11.7 billion, of which $8.8 billion, or 76%, represented residential whole loans. Our residential whole loans include primarily: (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 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” 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”) 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”). In addition, at June 30, 2025, we had approximately $1.8 billion, or 16%, of total assets invested in investments in securities, including Agency MBS, CRT securities and Non-Agency MBS.
Current wording
At September 30, 2025, we had total assets of approximately $12.1 billion, of which $8.8 billion, or 73%, represented residential whole loans. Our residential whole loans include primarily: (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 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” 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”) 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”). In addition, at September 30, 2025, we had approximately $2.3 billion, or 19%, of total assets invested in investments in securities, including Agency MBS, CRT securities and Non-Agency MBS.
Previous wording
CPR levels are impacted by, among other things, conditions in the housing market, new regulations, government and private sector initiatives, interest rates, availability of credit to home borrowers, underwriting standards and the economy in general. In particular, CPR presents the annualized constant rate of principal repayment in excess of scheduled principal amortization. CPRs on our residential mortgage securities and whole loans may differ significantly. For the three months ended June 30, 2025, the average CPRs on certain of our loan portfolios were: 15.3% for Non-QM loans, 9.7% for Single-family rental loans, and 8.7% for Legacy RPL/NPL loans. In addition, for the three months ended June 30, 2025, the repayment rate (which includes both scheduled and unscheduled repayments of principal) was 69.8% for our Single-family transitional loans and 39.9% for our Multifamily transitional loans.
Current wording
CPR levels are impacted by, among other things, conditions in the housing market, new regulations, government and private sector initiatives, interest rates, availability of credit to home borrowers, underwriting standards and the economy in general. In particular, CPR presents the annualized constant rate of principal repayment in excess of scheduled principal amortization. CPRs on our residential mortgage securities and whole loans may differ significantly. For the three months ended September 30, 2025, the average CPRs on certain of our loan portfolios were: 13.3% for Non-QM loans, 12.2% for Single-family rental loans, and 9.4% for Legacy RPL/NPL loans. In addition, for the three months ended September 30, 2025, the repayment rate (which includes both scheduled and unscheduled repayments of principal) was 70.0% for our Single-family transitional loans and 44.6% for our Multifamily transitional loans.
Previous wording
During the quarter, we generated GAAP earnings per share (or EPS) of $0.22 per basic common share and Distributable earnings, a non-GAAP financial measure that excludes the impact of fair value changes and certain other items, of $0.24 per basic common share. At June 30, 2025, our GAAP book value was $13.12 and our Economic book value, a non-GAAP financial measure of our financial position that adjusts GAAP book value by the amount of unrealized mark-to-market gains or losses on our residential whole loans and securitized debt held at carrying value, was $13.69 per common share, each representing decreases of 1% as compared to March 31, 2025.
Current wording
During the quarter, we generated GAAP earnings per share (or EPS) of $0.36 per basic common share and Distributable earnings, a non-GAAP financial measure that excludes the impact of fair value changes and certain other items, of $0.20 per basic common share. At September 30, 2025, our GAAP book value was $13.13 and our Economic book value, a non-GAAP financial measure of our financial position that adjusts GAAP book value by the amount of unrealized mark-to-market gains or losses on our residential whole loans and securitized debt held at carrying value, was $13.69 per common share, each relatively unchanged when compared to June 30, 2025.
Previous wording
For the quarter, our Lima One subsidiary originated Business purpose loans with a maximum unpaid principal balance of $217 million, an increase from the $213 million originated in the first quarter of 2025. We continued to make progress augmenting Lima One’s sales force and enhancing Lima One’s technology platform. During the quarter, Lima One sold recently originated Single-family rental loans with an unpaid principal balance of $37.4 million to third parties and realized gains of $1.1 million.
Current wording
For the quarter, our Lima One subsidiary originated Business purpose loans with a maximum unpaid principal balance of $260 million, an increase from the $217 million originated in the second quarter of 2025. We continued to make progress augmenting Lima One’s sales force and made key hires to Lima One’s leadership team in strategic growth areas. During the quarter, Lima One sold recently originated Single-family rental loans with an unpaid principal balance of $65.1 million to third parties and realized gains of $1.6 million.
Previous wording
Second quarter 2025 portfolio activity and impact on financial results
Current wording
Third quarter 2025 portfolio activity and impact on financial results
Previous wording
At June 30, 2025, our residential mortgage asset portfolio, which includes residential whole loans and REO, and Securities, at fair value, was approximately $10.8 billion, compared to $10.7 billion at March 31, 2025.
Current wording
At September 30, 2025, our residential mortgage asset portfolio, which includes residential whole loans and REO, and Securities, at fair value, was approximately $11.2 billion, compared to $10.8 billion at June 30, 2025.
Previous wording
At June 30, 2025, our total recorded investment in residential whole loans and REO was $9.0 billion, or 83.0% of our residential mortgage asset portfolio. Of this amount, $4.8 billion are Non-QM loans, $1.3 billion are Single-family rental loans, $0.9 billion are Single-family transitional loans, $0.7 billion are Multifamily transitional loans and $1.0 billion are Legacy RPL/NPL loans. Loan acquisition activity of $744.8 million for the three months ended June 30, 2025 included $187.5 million of Single-family transitional loans (including draws), $503.0 million of Non-QM loans, $49.5 million of Single-family rental loans and $4.7 million of Multifamily transitional loans (including draws). For the three months ended June 30, 2025, we recognized approximately $154.6 million of residential whole loan interest income on our consolidated statements of operations, representing an effective yield of 6.85%, with Single-family transitional loans generating an effective yield of 9.79%, Multifamily transitional loans generating an effective yield of 8.39%, Single-family rental loans generating an effective yield of 6.45%, Non-QM loans generating an effective yield of 5.79% and Legacy RPL/NPL loans generating an effective yield of 8.69%. Since the second quarter of 2021 we have elected the fair value option for all loan acquisitions, and 86% of our total loan portfolio is measured at fair value through earnings. Included in earnings in Other Income/(Loss), net are net gains/(losses) on these loans of $33.6 million for the three months ended June 30, 2025. At June 30, 2025 and March 31, 2025, we had REO with an aggregate carrying value of $135.8 million and $130.6 million, respectively, which is included in Other assets on our consolidated balance sheets.
Current wording
At September 30, 2025, our total recorded investment in residential whole loans and REO was $9.0 billion, or 79.8% of our residential mortgage asset portfolio. Of this amount, $5.1 billion are Non-QM loans, $1.2 billion are Single-family rental loans, $0.8 billion are Single-family transitional loans, $0.6 billion are Multifamily transitional loans and $1.0 billion are Legacy RPL/NPL loans. Loan acquisition activity of $678.7 million for the three months ended September 30, 2025 included $162.9 million of Single-family transitional loans (including draws), $452.8 million of Non-QM loans, $60.6 million of Single-family rental loans and $2.4 million of Multifamily transitional loans (including draws). For the three months ended September 30, 2025, we recognized approximately $153.3 million of residential whole loan interest income on our consolidated statements of operations, representing an effective yield of 6.81%, with Single-family transitional loans generating an effective yield of 9.09%, Multifamily transitional loans generating an effective yield of 8.72%, Single-family rental loans generating an effective yield of 6.64%, Non-QM loans generating an effective yield of 5.95% and Legacy RPL/NPL loans generating an effective yield of 8.55%. Since the second quarter of 2021 we have elected the fair value option for all loan acquisitions, and 87% of our total loan portfolio is measured at fair value through earnings. Included in earnings in Other Income/(Loss), net are net gains/(losses) on these loans of $41.3 million for the three months ended September 30, 2025. At September 30, 2025 and June 30, 2025, we had REO with an aggregate carrying value of $138.1 million and $135.8 million, respectively, which is included in Other assets on our consolidated balance sheets.
Previous wording
At June 30, 2025, we held $1.8 billion of Securities, at fair value, including $1.7 billion of Agency MBS, $61.2 million of CRT securities and $22.5 million of Non-Agency MBS. For the three months ended June 30, 2025, we purchased $131.1 million of
Current wording
At September 30, 2025, we held $2.3 billion of Securities, at fair value, including $2.2 billion of Agency MBS, $61.2 million of CRT securities and $22.4 million of Non-Agency MBS. For the three months ended September 30, 2025, we purchased $472.8 million of Agency MBS securities. The net yield on our Securities, at fair value was 5.79% for the three months ended September 30, 2025, compared to 6.60% for the three months ended June 30, 2025.
Previous wording
For the three months ended June 30, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.8 million. The total allowance for credit losses recorded on residential whole loans held at carrying value at June 30, 2025 was $9.9 million.
Current wording
For the three months ended September 30, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.3 million. The total allowance for credit losses recorded on residential whole loans held at carrying value at September 30, 2025 was $10.1 million.
Previous wording
During the second quarter of 2025, we completed one securitization collateralized by $318.4 million UPB of Non-QM loans. This securitization provided longer term, non-recourse, non-mark-to-market financing. During the quarter, interest rates exhibited significant volatility, and the yield curve steepened, as shorter duration rates ended the quarter lower while rates for longer maturities ended higher. The net impact of interest rate fluctuations resulted in net mark-to-market gains on the GAAP value of our investment portfolio. We continue to closely follow the actions of the Federal Reserve regarding the path and timing of changes in interest rates and the impact such rate changes would be expected to have on levels of inflation, the overall economic environment and our business.
Current wording
During the third quarter of 2025, we completed two securitizations collateralized by $721.5 million UPB of Non-QM loans. This securitization provided longer term, non-recourse, non-mark-to-market financing. During the quarter, interest rates exhibited continued volatility and the yield curve steepened, as shorter duration rates declined more than longer maturities. The net impact of interest rate fluctuations resulted in net mark-to-market gains on the GAAP value of our investment portfolio. We continue to closely follow the actions of the Federal Reserve regarding the path and timing of changes in interest rates and the impact such rate changes would be expected to have on levels of inflation, the overall economic environment and our business.
Previous wording
Our GAAP book value per common share was $13.12 as of June 30, 2025 and was $13.28 as of March 31, 2025. Economic book value per common share, a non-GAAP financial measure, was $13.69 as of June 30, 2025, a decrease from $13.84 as of March 31, 2025. The decreases in GAAP book value and Economic book value during the second quarter of 2025 primarily reflect dividends declared on our common stock in excess of GAAP comprehensive income. For additional information regarding the calculation of Economic book value per share, including a reconciliation to GAAP book value per share, refer to “Reconciliation of GAAP and Non-GAAP Financial Measures” below.
Current wording
Our GAAP book value per common share was $13.13 as of September 30, 2025 and was $13.12 as of June 30, 2025. Economic book value per common share, a non-GAAP financial measure, was $13.69 as of September 30, 2025, flat from $13.69 as of June 30, 2025. GAAP book value and Economic book value during the third quarter of 2025 were relatively unchanged, as dividends declared on our common stock matched our GAAP comprehensive income. For additional information regarding the calculation of Economic book value per share, including a reconciliation to GAAP book value per share, refer to “Reconciliation of GAAP and Non-GAAP Financial Measures” below.
Previous wording
(1)Includes $275.7 million of cash and cash equivalents, $269.2 million of restricted cash, $51.5 million of Other loans and $20.2 million of capital contributions made to loan origination partners, as well as other assets and other liabilities.
Current wording
(1)Includes $305.2 million of cash and cash equivalents, $231.8 million of restricted cash, $51.9 million of Other loans and $20.2 million of capital contributions made to loan origination partners, as well as other assets and other liabilities.
Previous wording
Our Transitional loans contain various contractual extension features, typically ranging from three to twenty-four months subject to certain conditions, generally including our consent. Transitional loans are generally only extended if the loan is current and in compliance with various other loan terms. Given the short duration of our Transitional loans, maturity extensions are a regular occurrence, irrespective of market conditions. At June 30, 2025, approximately 37% of our Multifamily transitional loans and 29% of our Single-family transitional loans held as of period end had been extended.
Current wording
Our Transitional loans contain various contractual extension features, typically ranging from three to twenty-four months subject to certain conditions, generally including our consent. Transitional loans are generally only extended if the loan is current and in compliance with various other loan terms. Given the short duration of our Transitional loans, maturity extensions are a regular occurrence, irrespective of market conditions. At September 30, 2025, approximately 57% of our Multifamily transitional loans and 31% of our Single-family transitional loans held as of period end had been extended.
Previous wording
We estimate that for the six months ended June 30, 2025, our REIT taxable income was approximately $70.7 million.
Current wording
We estimate that for the nine months ended September 30, 2025, our REIT taxable income was approximately $95.7 million.
Previous wording
We estimate that for the six months ended June 30, 2025, our net TRS taxable income (loss) will be $(43.3) million. Net income or loss generated by our TRS subsidiaries is included in consolidated GAAP net income, but may not be included in REIT taxable income in the same period. REIT taxable income generally does not include taxable income of the TRS unless and until it is distributed to the REIT. For example, because our securitization transactions that are treated as a sale for tax purposes are undertaken by a domestic TRS, any gain or loss recognized on the sale is not included in our REIT taxable income until it is distributed by the TRS. Similarly, the income earned from loans, securities, REO and other investments held by our domestic TRS is excluded from REIT taxable income until it is distributed by the TRS. Net income of our foreign domiciled TRS subsidiaries is included in REIT taxable income as if distributed to the REIT in the taxable year it is earned by the foreign domiciled TRS. A TRS may carry forward its net taxable losses indefinitely as net operating losses to offset up to 80% of its taxable income in future tax years, but REIT taxable income generally does not include the net taxable loss of a TRS unless the TRS liquidates for tax purposes.
Current wording
We estimate that for the nine months ended September 30, 2025, our net TRS taxable income (loss) will be $(50.0) million. Net income or loss generated by our TRS subsidiaries is included in consolidated GAAP net income, but may not be included in REIT taxable income in the same period. REIT taxable income generally does not include taxable income of the TRS unless and until it is distributed to the REIT. For example, because our securitization transactions that are treated as a sale for tax purposes are undertaken by a domestic TRS, any gain or loss recognized on the sale is not included in our REIT taxable income until it is distributed by the TRS. Similarly, the income earned from loans, securities, REO and other investments held by our domestic TRS is excluded from REIT taxable income until it is distributed by the TRS. Net income of our foreign domiciled TRS subsidiaries is included in REIT taxable income as if distributed to the REIT in the taxable year it is earned by the foreign domiciled TRS. A TRS may carry forward its net taxable losses indefinitely as net operating losses to offset up to 80% of its taxable income in future tax years, but REIT taxable income generally does not include the net taxable loss of a TRS unless the TRS liquidates for tax purposes.
Previous wording
For the second quarter of 2025, we had net income available to our common stock and participating securities of $22.6 million, or $0.22 per basic common share and $0.21 per diluted common share, compared to net income available to common stock and participating securities of $33.0 million, or $0.32 per basic common share and $0.31 per diluted common share, for the first quarter of 2025. The decrease in net income available to common stock and participating securities in the current period primarily reflects a decrease in Other income/(loss), net to $12.3 million for the current quarter compared to an Other income/(loss), net of $24.5 million in the immediately prior quarter, as well as a $2.3 million increase in preferred stock dividends paid as a result of the higher floating rate payable on our Series C preferred stock, partially offset by lower Compensation and benefits expenses and higher net interest income.
Current wording
For the third quarter of 2025, we had net income available to our common stock and participating securities of $37.3 million, or $0.36 per basic common share and $0.35 per diluted common share, compared to net income available to common stock and participating securities of $22.6 million, or $0.22 per basic common share and $0.21 per diluted common share, for the second quarter of 2025. The increase in net income available to common stock and participating securities in the current period compared to the prior period primarily reflects an $18.7 million increase to Other income/(loss), net, partially offset by a $4.5 million decrease to net interest income.
Previous wording
For the second quarter of 2025, our net interest spread and margin (including the impact of net Swap carry) were 1.98% and 2.73%, respectively, compared to a net interest spread and margin (including the impact of net Swap carry) of 1.84% and 2.63%, respectively, for the first quarter of 2025. Our net interest income increased by $3.7 million and was $61.3 million for the second quarter of 2025, compared to $57.5 million for the first quarter of 2025. For the second quarter of 2025, net interest income, which does not include the benefit of net Swap carry, includes higher net interest income from our Securities, at fair value portfolio of $2.4 million, compared to the first quarter of 2025, primarily due to an increase in interest income from a higher yield on, and average balances of, our securities portfolio, partially offset by an increase in expense from higher average balances of our securities repurchase agreements. Net interest income for the second quarter of 2025 also includes higher net interest income from our residential whole loan portfolio of $0.9 million, compared to the first quarter of 2025, primarily due to an increase in interest income from a higher yield on, and average balances of, our residential whole loan portfolio, partially offset by an increase in interest expense from higher average balances of our residential whole loan financing agreements and our securitized debt. In addition, the second quarter of 2025 had higher interest income of approximately $0.5 million from cash and cash equivalents and other interest earnings assets, as compared to the first quarter of 2025.
Current wording
For the third quarter of 2025, our net interest spread and margin (including the impact of net Swap carry) were 1.86% and 2.57%, respectively, compared to a net interest spread and margin (including the impact of net Swap carry) of 1.98% and 2.73%, respectively, for the second quarter of 2025. Our net interest income decreased by $4.5 million and was $56.8 million for the third quarter of 2025, compared to $61.3 million for the second quarter of 2025. For the third quarter of 2025, net interest income, which does not include the benefit of net Swap carry, includes lower net interest income from our securities portfolio of $3.0 million, compared to the second quarter of 2025, primarily due to a decrease in interest income from lower yield on our securities portfolio and higher average balances of our securities repurchase agreements, partially offset by an increase in income from higher average balances of our securities portfolio. Net interest income for the third quarter of 2025 also includes lower net interest income from our residential whole loan portfolio of $1.3 million, compared to the second quarter of 2025, primarily due to an increase in interest expense from higher average balances of, and rates on, our securitized debt as well as a decrease in interest income from lower yield on our residential whole loan portfolio, partially offset by a decrease in interest expense from lower average balances of our residential whole loan financing agreements.
Previous wording
Interest income on our residential whole loans for the second quarter of 2025 increased by $3.3 million, or 2.2%, to $154.6 million, compared to $151.3 million for the first quarter of 2025. This increase primarily reflects an increase in the yield to 6.85% for the second quarter of 2025 from 6.77% for the first quarter of 2025, and a $85.3 million increase in the average balance of this portfolio to $9.0 billion for the second quarter of 2025 from the first quarter of 2025.
Current wording
Interest income on our residential whole loans for the third quarter of 2025 decreased by $1.3 million, or 0.8%, to $153.3 million, compared to $154.6 million for the second quarter of 2025. This decrease primarily reflects a decrease in the yield to 6.81% for the third quarter of 2025 from 6.85% for the second quarter of 2025.
Previous wording
Interest income on our Securities, at fair value portfolio for the second quarter of 2025 increased by $4.1 million, or 17%, to $28.8 million, compared to $24.7 million for the first quarter of 2025. This increase includes $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full during the quarter, and overall reflects an increase in the yield to 6.60% for the second quarter of 2025 from 6.07% for the first quarter of 2025, and a $118.9 million increase in the average balance of this portfolio to $1.7 billion for the second quarter of 2025 from the first quarter of 2025.
Current wording
Interest income on our Securities, at fair value portfolio for the third quarter of 2025 decreased by $1.1 million, or 4%, to $27.7 million, compared to $28.8 million for the second quarter of 2025. This decrease reflects a decrease in the yield to 5.79% for the third quarter of 2025 from 6.60% for the second quarter of 2025, with the second quarter of 2025 including $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full, partially offset by a $169.8 million increase in the average balance of this portfolio to $1.9 billion for the third quarter of 2025 from the second quarter of 2025.
Previous wording
Our interest expense for the second quarter of 2025 increased by $4.1 million, or 3.3%, to $127.1 million, from $123.0 million for the first quarter of 2025. This increase primarily reflects an increase in the average balance of our securities repurchase agreements and financing agreements on residential whole loans, as well as an increase in the average balance of, and rates on, our securitized debt, partially offset by lower rates on our financing agreements on residential whole loans.
Current wording
Our interest expense for the third quarter of 2025 increased by $1.9 million, or 1.5%, to $129.0 million, from $127.1 million for the second quarter of 2025. This increase primarily reflects an increase in the average balance of our securities repurchase agreements and securitized debt, as well as an increase in the rate on our securitized debt, partially offset by lower average balance of, and rates on, residential whole loan financing agreements.
Previous wording
For the second quarter of 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.8 million compared to a provision for credit losses of $0.1 million for the first quarter of 2025. The provision recorded in the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value.
Current wording
For the third quarter of 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.3 million compared to a provision for credit losses of $0.8 million for the second quarter of 2025. The provision recorded in the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value.
Previous wording
We had no provision for credit losses on Other Assets for the second quarter of 2025 or the first quarter of 2025.
Current wording
We had no provision for credit losses on Other Assets for the third quarter of 2025 or the second quarter of 2025.
Previous wording
For the second quarter of 2025, Other Income/(Loss), net was $12.3 million, compared to Other Income/(Loss), net of $24.5 million for the first quarter of 2025. The components of Other Income/(Loss), net for the second quarter of 2025 and first quarter of 2025 are summarized in the table below:
Current wording
For the third quarter of 2025, Other Income/(Loss), net was $31.0 million, compared to Other Income/(Loss), net of $12.3 million for the second quarter of 2025. The components of Other Income/(Loss), net for the third quarter of 2025 and second quarter of 2025 are summarized in the table below:
Previous wording
Compensation and benefits expenses are composed of salaries, annual bonus, stock-based awards, long-term incentives, Lima One sales commissions, related payroll taxes, medical insurance, 401(k) matching and other benefits expenses. Compensation and benefits expense decreased by $3.9 million to $19.3 million for the second quarter of 2025, compared to $23.3 million for the first quarter of 2025, primarily as a result of the inclusion of accelerated recognition of stock-based compensation in the first quarter of 2025 related to awards made to retirement eligible employees in January 2025, as well as inclusion in the first quarter of 2025 of 2024 year-end bonus related expenses, and a reduction in the 2025 year-end bonus accrual, partially offset by higher expense recognition from the accrual of severance costs.
Current wording
Compensation and benefits expenses are composed of salaries, annual bonus, stock-based awards, long-term incentives, Lima One sales commissions, related payroll taxes, medical insurance, 401(k) matching and other benefits expenses. Compensation and benefits expense decreased by $1.1 million to $18.2 million for the third quarter of 2025, compared to $19.3 million for the second quarter of 2025, primarily as a result of the inclusion of severance expenses in the second quarter of 2025.
Previous wording
Other general and administrative expenses are comprised of leasing and other office expenses, professional fees, insurance costs, board of directors fees, and miscellaneous expenses. Other general and administrative expenses of $10.6 million for the second quarter of 2025 were higher when compared to $10.3 million for the first quarter of 2025, primarily driven by rental expenses for the new Lima One headquarters and an increase as a result of the waiver of certain expenses in the first quarter of 2025, partially offset by lower expenses at Lima One and lower professional fees at our corporate offices.
Current wording
Other general and administrative expenses are comprised of leasing and other office expenses, professional fees, insurance costs, board of directors fees, and miscellaneous expenses. Other general and administrative expenses of $10.8 million for the third quarter of 2025 remained relatively consistent when compared to $10.6 million for the second quarter of 2025.
Previous wording
Loan servicing and other related operating expenses are composed of non-recoverable advances, upfront costs on securitization and other fees related to our residential whole loan activities. The current period expenses are relatively consistent with the prior year period.
Current wording
Loan servicing and other related operating expenses are composed of non-recoverable advances, upfront costs on securitization and other fees related to our residential whole loan activities. These expenses increased compared to the prior quarter period by approximately $1.6 million, or 19.0%, primarily due to higher expenses recognized on upfront costs associated with two securitizations entered into in this quarter, compared to one in the prior quarter.
Previous wording
Six Month Period Ended June 30, 2025 Compared to the Six Month Period Ended June 30, 2024
Current wording
Nine Month Period Ended September 30, 2025 Compared to the Nine Month Period Ended September 30, 2024
Previous wording
The following table summarizes the changes in our results of operations for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
The following table summarizes the changes in our results of operations for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous wording
For the six months ended June 30, 2025, we had net income available to our common stock and participating securities of $55.6 million, or $0.53 per basic common share and $0.52 per diluted common share, compared to a net income available to our common stock and participating securities of $48.7 million, or $0.47 per basic and $0.46 per diluted common share, for the six months ended June 30, 2024. The net income available to common stock and participating securities in the current period increased from the prior period primarily as a result of higher net interest income of $17.5 million and lower Operating and Other Expenses of $6.5 million, partially offset by a decrease in Other Income/(Loss), net of $15.5 million, as well as a $2.3 million increase in preferred stock dividends paid as a result of the higher floating rate payable on our Series C preferred stock.
Current wording
For the nine months ended September 30, 2025, we had net income available to our common stock and participating securities of $92.9 million, or $0.89 per basic common share and $0.87 per diluted common share, compared to a net income available to our common stock and participating securities of $88.7 million, or $0.85 per basic and $0.83 per diluted common share, for the nine months ended September 30, 2024. The net income available to common stock and participating securities in the current period increased from the prior period primarily as a result of $23.7 million higher net interest income and $10.2 million lower operating and other expenses, partially offset by a decrease of $24.8 million in Other income/(loss), net, as well as a $5.0 million increase in preferred stock dividends paid as a result of the higher floating rate payable on our Series C preferred stock.
Previous wording
For the six months ended June 30, 2025, our net interest spread and margin were 1.91% and 2.68%, respectively, compared to a net interest spread and margin of 2.11% and 2.95%, respectively, for the six months ended June 30, 2024. Our net interest income increased by $17.5 million, or 17.3%, to $118.8 million for the six months ended June 30, 2025 compared to net interest income of $101.3 million for the six months ended June 30, 2024. For the six months ended June 30, 2025, net interest income, which does not include the benefit of net Swap carry, includes higher net interest from our securities portfolio of $11.5 million compared to the six months ended June 30, 2024, primarily due to higher interest income from an increase in average balance of securities, partially offset by higher interest expense from an increase in average balances of securities repurchase agreements. Net interest income for the six months ended June 30, 2025 also includes higher net interest income from our residential whole loan portfolio of $6.9 million compared to the six months ended June 30, 2024, primarily due to a decrease in interest expense as a result of lower average balances of, and rates on, our financing agreements on our residential whole loan portfolio, partially offset by an increase in interest expense from average balances of, and rates on, our securitized debt and a decrease in interest income from lower average balances of our residential whole loan portfolio. In addition, the six months ended June 30, 2025 had lower interest income from cash and cash equivalents and other interest earnings assets of $4.1 million when compared to the six months ended June 30, 2024, as well as lower interest expense from our senior notes of $3.1 million.
Current wording
For the nine months ended September 30, 2025, our net interest spread and margin were 1.89% and 2.64%, respectively, compared to a net interest spread and margin of 2.14% and 2.96%, respectively, for the nine months ended September 30, 2024. Our net interest income increased by $23.7 million, or 15.6%, to $175.6 million for the nine months ended September 30, 2025 compared to net interest income of $151.9 million for the nine months ended September 30, 2024. For the nine months ended September 30, 2025, net interest income, which does not include the benefit of net Swap carry, includes higher net interest from our securities portfolio of $16.2 million compared to the nine months ended September 30, 2024, primarily due to an increase in interest income from higher average balances of our securities portfolio, partially offset by an increase in interest expense from higher average balances of securities repurchase agreements. Net interest income for the nine months ended September 30, 2025 also includes higher net interest income from our residential whole loan portfolio of $13.1 million compared to the nine months ended September 30, 2024, primarily due to a decrease in interest expense as a result of lower average balances of, and rates on, our residential whole loan financing agreements, partially offset by an increase in interest expense from average balances of, and rates on, our securitized debt and a decrease in interest income from lower average balances of our residential whole loan portfolio. In addition, the nine months ended September 30, 2025 had $9.2 million lower interest income from other interest earnings assets and cash and cash equivalents when compared to the nine months ended September 30, 2024, as well as $3.0 million lower interest expense from our senior notes.
Previous wording
The following table sets forth certain information about the average balances of our assets and liabilities and their related yields and costs for the six months ended June 30, 2025 and 2024. Average yields are derived by dividing annualized interest income by the average amortized cost of the related assets, and average costs are derived by dividing annualized interest expense by the daily average balance of the related liabilities, for the periods shown. The yields and costs may include premium amortization and discount accretion which are considered adjustments to interest income or expense.
Current wording
The following table sets forth certain information about the average balances of our assets and liabilities and their related yields and costs for the nine months ended September 30, 2025 and 2024. Average yields are derived by dividing annualized interest income by the average amortized cost of the related assets, and average costs are derived by dividing annualized interest expense by the daily average balance of the related liabilities, for the periods shown. The yields and costs may include premium amortization and discount accretion which are considered adjustments to interest income or expense.
Previous wording
Interest income on our Securities, at fair value portfolio for the six months ended June 30, 2025 increased by $26.8 million to $53.4 million from $26.6 million for the six months ended June 30, 2024. This increase includes $2.6 million of accelerated discount accretion for MSR-related assets that were repaid in full during the quarter, and overall primarily reflects an increase in the average amortized cost of the portfolio of $939.1 million from purchases of Agency MBS, partially offset by a decrease in the net yield on our Securities, at fair value portfolio to 6.34% for the six months ended June 30, 2025, compared to 7.13% for the six months ended June 30, 2024.
Current wording
Interest income on our Securities, at fair value portfolio for the nine months ended September 30, 2025 increased by $39.8 million to $81.2 million from $41.4 million for the nine months ended September 30, 2024. This increase primarily reflects an increase in the average amortized cost of the portfolio of $961.5 million from purchases of Agency MBS, partially offset by a decrease in the net yield on our Securities, at fair value portfolio to 6.14% for the nine months ended September 30, 2025, compared to 6.88% for the nine months ended September 30, 2024.
Previous wording
Interest income on our residential whole loans for the six months ended June 30, 2025 decreased by $17.5 million, or 5.4%, to $305.9 million, compared to $323.4 million for the six months ended June 30, 2024. This decrease primarily reflects a $0.6 billion decrease in the average balance of this portfolio to $9.0 billion for the six months ended June 30, 2025 from $9.5 billion for the six months ended June 30, 2024.
Current wording
Interest income on our residential whole loans for the nine months ended September 30, 2025 decreased by $21.6 million, or 4.5%, to $459.2 million, compared to $480.8 million for the nine months ended September 30, 2024. This decrease primarily reflects a $0.5 billion decrease in the average balance of this portfolio to $9.0 billion for the nine months ended September 30, 2025 from $9.5 billion for the nine months ended September 30, 2024.
Previous wording
Our interest expense for the six months ended June 30, 2025 decreased by $12.3 million, or 4.7%, to $250.0 million, from $262.4 million for the six months ended June 30, 2024. This decrease primarily reflects a decrease in the average balances of, and rates, on our financing agreements on residential whole loans, $5.5 million of lower interest expense related to our 6.25% convertible senior notes which matured and were paid in full in June 2024, and lower financing rates on our securities repurchase agreements, partially offset by higher average balances of, and rates on, our securitized debt, higher average balances of our securities repurchase agreements and $2.5 million of higher interest expense related to our 9.00% and 8.875% senior notes issued in April and January 2024, respectively.
Current wording
Our interest expense for the nine months ended September 30, 2025 decreased by $14.7 million, or 3.7%, to $379.0 million, from $393.7 million for the nine months ended September 30, 2024. This decrease primarily reflects a decrease in the average balances of, and rates, on our residential whole loans financing agreements, lower financing rates on our securities repurchase agreements, and $5.5 million of lower interest expense related to our 6.25% convertible senior notes which matured and were paid in full in June 2024, partially offset by higher average balances of, and rates on, our securitized debt, higher average balances of our securities repurchase agreements and $2.5 million of higher interest expense related to our 9.00% and 8.875% senior notes issued in April and January 2024, respectively.
Previous wording
For the six months ended June 30, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $0.9 million compared to a reversal of provision for credit losses of $1.5 million for the six months ended June 30, 2024. The provision for the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value. The reversal of provision for the prior period primarily reflects the run-off of loans held at carrying value and minor changes to modeling assumptions.
Current wording
For the nine months ended September 30, 2025, we recorded a provision for credit losses on residential whole loans held at carrying value of $1.2 million compared to a reversal of provision for credit losses of $3.5 million for the nine months ended September 30, 2024. The provision for the current period primarily reflects minor changes to modeling assumptions, partially offset by the run-off of loans held at carrying value. The reversal of provision for the prior period primarily reflects the run-off of loans held at carrying value and minor changes to modeling assumptions.
Previous wording
For the six months ended June 30, 2025, we had no provision for credit losses on Other Assets. For the six months ended June 30, 2024, we recorded a provision for credit losses on Other Assets of $1.1 million, related to an uncollectible receivable from an unrelated third party servicer.
Current wording
For the nine months ended September 30, 2025, we had no provision for credit losses on Other Assets. For the nine months ended September 30, 2024, we recorded a provision for credit losses on Other Assets of $1.1 million, related to an uncollectible receivable from an unrelated third party servicer.
Previous wording
For the six months ended June 30, 2025, Other Income/(Loss), net was $36.8 million, compared to an Other Income/(Loss), net of $52.3 million for the six months ended June 30, 2024. The components of Other Income/(Loss), net for the six months ended June 30, 2025 and 2024 are summarized in the table below:
Current wording
For the nine months ended September 30, 2025, Other Income/(Loss), net was $67.7 million, compared to an Other Income/(Loss), net of $92.5 million for the nine months ended September 30, 2024. The components of Other Income/(Loss), net for the nine months ended September 30, 2025 and 2024 are summarized in the table below:
Previous wording
Compensation and benefits expenses are composed of salaries, annual bonus, stock-based awards, long-term incentives, Lima One sales commissions, related payroll taxes, medical insurance, 401(k) matching and other benefits expenses. Compensation and benefits expense decreased by $4.7 million to $42.6 million for the six months ended June 30, 2025, compared to $47.2 million for the six months ended June 30, 2024, primarily driven by a reduction in Lima One sales commissions and salary expenses, lower accrual for cash bonus expense, and lower expense recognition from stock-based awards, partially offset by higher expense recognition from the accrual of severance costs.
Current wording
Compensation and benefits expenses are composed of salaries, annual bonus, stock-based awards, long-term incentives, Lima One sales commissions, related payroll taxes, medical insurance, 401(k) matching and other benefits expenses. Compensation and benefits expense decreased by $8.9 million to $60.8 million for the nine months ended September 30, 2025, compared to $69.6 million for the nine months ended September 30, 2024, primarily driven by lower expense recognition from cash bonus and stock-based awards, a reduction in Lima One sales commissions and salary expenses, and lower accrual of severance costs.
Previous wording
Other general and administrative expenses are comprised of leasing and other office expenses, professional fees, insurance costs, board of directors fees, and miscellaneous expenses. Other general and administrative expenses decreased by $1.9 million to $20.9 million for the six months ended June 30, 2025, compared to $22.8 million for the six months ended June 30, 2024, primarily as a result of lower costs associated with IT infrastructure, industry conferences and related travel expenses, lower professional fees, and the waiver of certain expenses in the first quarter of 2025, partially offset by higher rental expenses for the new Lima One headquarters.
Current wording
Other general and administrative expenses are comprised of leasing and other office expenses, professional fees, insurance costs, board of directors fees, and miscellaneous expenses. Other general and administrative expenses decreased by $2.6 million to $31.7 million for the nine months ended September 30, 2025, compared to $34.3 million for the nine months ended September 30, 2024, primarily as a result of lower expense recognized on the disposal of fixed assets at Lima One, as well as lower costs associated with IT infrastructure, industry conferences and related travel expenses, and lower professional fees, partially offset by higher rental expense for the new Lima One headquarters.
Showing the first 40 of 52 pairs. Open the source sections for the rest.