MFA Financial MFA Q4 2025 Earnings Call Transcript

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Wed, February 18, 2026 astatine 11:25 AM CST 24 min read

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Wednesday, February 18, 2026 astatine 11:00 a.m. ET

• Chief Executive Officer — Craig L. Knutson

• President and Chief Investment Officer — Bryan Wulfsohn

• Chief Financial Officer — Michael C. Roper

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Craig L. Knutson. Thank you, Harold.

Craig L. Knutson: Good morning, everyone, and convey you for joining america for MFA Financial, Inc.’s 4th fourth and year-end 2025 net call. With maine contiguous are Bryan Wulfsohn, our President and Chief Investment Officer, Michael C. Roper, our CFO, and different members of our elder absorption team. I volition statesman with immoderate wide remarks connected 2025, interaction connected the macro and governmental landscapes, and past supply an update connected MFA Financial, Inc.’s initiatives to foster net maturation and summation ROEs. I volition past crook the telephone implicit to Mike, followed by Bryan, earlier we unfastened up for questions. After 3 precise hard years for fixed income investors, 2025 felt similar an exit from a acheronian tunnel. The Bloomberg U.S.

Aggregate Index was up 7.3% successful 2025 aft being down 7.1% for the anterior 3 years—just nether 2.5% annually. Following a 100 ground constituent chopped successful the Fed Funds complaint via 3 complaint cuts successful the past 3 months of 2024, we had to hold 9 months until September 2025 for the adjacent complaint cut, which was rapidly followed by 2 much successful October and December. Treasury rates besides declined during the year, with two-year yields dropping 77 ground points and ten-year yields dropping by 39 ground points. More importantly, the two-ten dispersed steepened from 32 ground points astatine the opening of the twelvemonth to 70 ground points astatine the extremity of the year.

This positively sloped output curve, portion possibly somewhat modest, is simply a invited alteration from the situation we faced from 2022 to 2024. Additionally, volatility has declined. The MOVE Index began 2025 astatine conscionable nether 100, 98.8, earlier concisely spiking aft Liberation Day successful aboriginal April to astir 140 and past trended down for the succeeding months, ending the twelvemonth astatine conscionable nether 64. To enactment this successful context, the MOVE Index was supra 100 for astir the entirety of 2022, 2023, and 2024. The operation of little rates, little volatility, and a positively sloped output curve are each favorable for the owe marketplace and for our business.

With caller developments successful Washington, D.C., and a beardown absorption connected lodging affordability, it seems apt that authorities policy, portion surely ne'er certain, volition proceed to beryllium supportive for our markets. The caller inaugural for the GSEs to bargain $200 cardinal of Agency MBS, the information of a caller Fed Chair, the anticipation of further complaint cuts aboriginal successful 2026, and the repeated mantra of “do nary harm” with respect to the owe marketplace are each constructive for our marketplace and for our business. We are excited astir 2026 arsenic we commencement the twelvemonth with these tailwinds astatine our back. In 2025, MFA Financial, Inc. continued to execute connected our strategical initiatives to headdress disconnected a coagulated twelvemonth of performance.