MFA FINANCIAL, INC.MFA

MFA FINANCIAL, INC. Earnings Per Share Disclosure

10-KFiled Feb 20, 20262 min read
EPS Calculation
 
The following table presents a reconciliation of the earnings/(loss) and shares used in calculating basic and diluted earnings/(loss) per share for the years ended December 31, 2025, 2024 and 2023:
 
 For the Year Ended December 31,
(In Thousands, Except Per Share Amounts)202520242023
Basic Earnings/(Loss) per Share:   
Net income/(loss) to common stockholders$176,783 $119,251 $80,164 
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) attributable to common stockholders - basic$135,684 $85,923 $47,289 
Basic weighted average common shares outstanding103,554 103,489 102,215 
Basic Earnings/(Loss) per Share$1.31 $0.83 $0.46 
Diluted Earnings/(Loss) per Share:
Net income/(loss) to common stockholders - basic$135,684 $85,923 $47,289 
Dividends, dividend equivalents and undistributed earnings allocated to participating securities— — — 
Interest expense on Convertible Senior Notes— — — 
Net income/(loss) attributable to common stockholders - diluted$135,684 $85,923 $47,289 
Basic weighted average common shares outstanding103,554 103,489 102,215 
Unvested and vested restricted stock units427 1,613 1,363 
Effect of assumed conversion of Convertible Senior Notes to common shares— — — 
Diluted weighted average common shares outstanding (1)
103,981 105,102 103,578 
Diluted Earnings/(Loss) per Share$1.30 $0.82 $0.46 
(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. These equity instruments reflect RSUs (based on current estimate of expected share settlement amount) with a weighted average grant date fair value of $10.32 and $10.94, respectively. These equity instruments may have a dilutive impact on future EPS.  
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.

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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