Exhibit 99.1

MFA

FINANCIAL, INC.

One Vanderbilt Ave

New York, New York 10017

MFA Financial, Inc. Announces Second Quarter 2021 Financial Results

Asset acquisitions exceed run-off for the first time since COVID onset

Book value stability despite a volatile market for mortgages

16% increase in net interest income over first quarter 2021

Second quarter dividend to common shareholders increased by 33%

NEW YORK - MFA Financial, Inc. (NYSE:MFA) today provided its financial results for the second quarter ended June 30, 2021.

Second Quarter 2021 financial results update:

Commenting on the second quarter 2021 results, Craig Knutson, MFA’s CEO and President said, “MFA had a very solid second quarter of 2021, as our portfolio performed well and our ongoing efforts to use securitizations to term out and lower our funding costs drove financial results. We earned $0.13 per common share in the second quarter, and produced a total economic return of 2.6%. We increased net interest income by 16% versus Q1 2021. I am also happy to report that our portfolio acquisitions in the second quarter of 2021 exceeded runoff for the first time since the onset of COVID. Through our stock repurchase program, we purchased 5.7 million shares during the second quarter at an average price of $4.19 or approximately 82% of economic book value. Finally, on July 1, 2021, we completed the acquisition of Lima One Capital, a leading nationwide originator and servicer of business purpose loans (BPLs). With the acquisition of Lima One, we expect to materially enhance our capability to purchase and service BPLs, which include fix and flip, single family and other rental and multifamily loans. MFA has purchased over $1 billion of BPLs from Lima One since 2017, and we are excited to add the Lima One team to the MFA family.”

Mr. Knutson added, “Our second quarter results were driven by strong portfolio performance, with lower loan balances and improving mortgage credit leading to a release of CECL reserves of $8.9 million. On the liability side, we continue to execute on our plan to reduce funding costs through securitizations. We completed a Non-QM securitization in April 2021 and a re-lever of a re-performing and non-performing loan securitization in June 2021. These transactions deliver a meaningful benefit by terming out non-mark-to-market financing while significantly reducing borrowing costs and also generating more liquidity. Our income statement demonstrates the impact of these transactions, as our interest expense decreased by 15%.”

Mr. Knutson continued, “We also took advantage of a strong housing market to continue to reduce our REO portfolio, selling 139 properties for aggregate proceeds of $38.0 million and generating $3.9 million of gains.”

Q2 2021 Portfolio Activity

MFA’s residential mortgage investment portfolio increased by $299.0 million during the second quarter, as loan purchase activity exceeded portfolio run-off. Loan acquisitions were more than triple the prior quarter, with $373.6 million of Non-QM loans, $308.1 million of Agency eligible investor loans, and $175.2 million of Business Purpose loans purchased during the quarter.

At June 30, 2021, our investments in residential whole loans totaled $5.6 billion. Of this amount, $3.8 billion are Purchased Performing Loans, $581.0 million are Purchased Credit Deteriorated Loans and $1.2 billion are Purchased Non-performing Loans. During the quarter, we recognized approximately $69.0 million of Interest Income on residential whole loans in our consolidated statements of operations, representing a yield of 5.48%. Purchased Performing Loans generated a yield of 4.45%, Purchased Credit Deteriorated Loans generated a yield of 7.17% and Purchased Non-performing Loans generated a yield of 7.98%. Overall loan portfolio yields were 45 bps higher than the prior quarter primarily due to higher interest income recognized on Purchased Credit Deteriorated Loans and Purchased Non-performing Loans. Overall delinquency rates across our residential whole loan portfolio continue to moderate. The amount of Non-QM loans that were 60 or more days delinquent, measured as a percentage of the unpaid principal balance, decreased during the quarter and was 7.8% at June 30, 2021, compared to 8.0% at March 31, 2021. In addition, the amount of Purchased Credit Deteriorated loans that were 90 or more days delinquent, measured as a percentage of the unpaid principal balance, decreased during the quarter and was 18.0% at June 30, 2021, compared to 19.0% at March 31, 2021. Delinquency levels for our Rehabilitation loans decreased from the prior quarter, with loans that were 60 or more days delinquent totaling $120.4 million, compared to $149.2 million at March 31, 2021. The percentage amount of Purchased Non-performing Loans that were 90 or more days delinquent decreased to 43.7% at June 30, 2021 from 46.0% at March 31, 2021.

For the second quarter, a reversal of the provision for credit losses of $8.9 million was recorded on residential whole loans held at carrying value, primarily reflecting lower loan balances and adjustments to certain macro-economic assumptions used in our credit loss forecasts. The total allowance for credit losses recorded on residential whole loans held at carrying value at June 30, 2021 was $54.3 million. In addition, as of June 30, 2021, reserves for credit losses totaling approximately $512,000 were recorded related to undrawn commitments on loans held at carrying value.

Our Purchased Non-performing Loans and certain of our Purchased Performing Loans are measured at fair value as a result of the election of the fair option at acquisition, with changes in the fair value and other non-interest related income from these loans recorded in Other income, net each period. For the second quarter, net gains of $6.0 million were recorded, primarily reflecting unrealized fair value changes in the underlying loans.

In addition, as of the end of the quarter, we held approximately $205 million of REO properties, which decreased from $220 million as of the end of the first quarter as foreclosure activity remains muted, while asset sales continued. MFA’s proactive asset management team continues to take advantage of current market conditions and has been able to shorten liquidation timelines and increase property sale proceeds, leading to improved outcomes and better returns.

At the end of the second quarter, MFA held approximately $303 million of Securities, at fair value, including $196.5 million of MSR-related assets and $106.3 million of CRT securities.

General and Administrative and other expenses

For the three months ended June 30, 2021, MFA’s costs for compensation and benefits and other general and administrative expenses were $16.8 million, or an annualized 2.66% of average stockholders’ equity for the quarter ended June 30, 2021. Expenses this quarter included the impact of annual equity awards to non-employee directors, professional services costs related to the Lima One acquisition and a catch-up adjustment to increase the incentive compensation accrual.

Stock Repurchase Program

On November 2, 2020, MFA’s Board of Directors authorized a share repurchase program under which MFA may repurchase up to $250 million of its common stock through the end of 2022. Under this program during the second quarter (in the period permitted under the program), the Company repurchased 5,659,551 shares of common stock at an average price of $4.19 per share. For the period from January 1, 2021 through June 30, 2021, the Company purchased 11,606,229 shares of common stock at an average price of $4.14 per share. As of June 30, 2021, the Company was permitted to purchase an additional $117.7 million of its common stock.

MFA expects to fund the share repurchases from current cash balances and future investment portfolio run-off. The Company currently has approximately 440.9 million shares of common stock outstanding.

The following table presents MFA’s asset allocation as of June 30, 2021, and the second quarter 2021 yield on average interest-earning assets, average cost of funds and net interest rate spread for the various asset types.

Table 1 - Asset Allocation

The following table presents the activity for our residential mortgage asset portfolio for the three months ended June 30, 2021:

Table 2 - Investment Portfolio Activity Q2 2021

The following tables present information on our investments in residential whole loans.

Residential Whole Loans at June 30, 2021 and December 31, 2020:

Table 3 - Portfolio composition

Table 4 - Yields and average balances

Table 5 - Net Interest Spread

Table 6 - Allowance for Credit Losses

The following table presents a roll-forward of the allowance for credit losses on the Company’s Residential Whole Loans, at Carrying Value:

Table 7 - Credit related metrics/Residential Whole Loans at Carrying Value

June 30, 2021

December 31, 2020

Table 8 - LTV 90+ Days Delinquencies

The following table presents certain information regarding the Company’s Residential whole loans that are 90 days or more delinquent:

Table 9 - Net gain/(loss) on residential whole loans measured at fair value through earnings

Webcast

MFA Financial, Inc. plans to host a live audio webcast of its investor conference call on Thursday, August 5, 2021, at 10:00 a.m. (Eastern Time) to discuss its second quarter 2021 financial results. The live audio webcast will be accessible to the general public over the internet at http://www.mfafinancial.com through the “Webcasts & Presentations” link on MFA’s home page. To listen to the conference call over the internet, please go to the MFA website at least 15 minutes before the call to register and to download and install any needed audio software. Earnings presentation materials will be posted on the MFA website prior to the conference call and an audio replay will be available on the website following the call.

Cautionary Language Regarding Forward-Looking Statements

When used in this press release or other written or oral communications, statements which are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “could,” “would,” “may,” the negative of these words or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. 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.  Statements regarding the following subjects, among others, may be forward-looking: risks related to the COVID-19 pandemic, including the pandemic’s effect on the general economy and our business, financial position and results of operations (including, among other potential effects, increased delinquencies and greater than expected losses in our whole loan portfolio); changes in interest rates and the market (i.e., fair) value of MFA’s residential whole loans, MBS and other assets; 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 MFA’s portfolio and could require MFA to reinvest the proceeds received by it 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 MFA’s portfolio making their valuation more sensitive to changes in interest rates and could result in lower forecasted cash flows; credit risks underlying MFA’s assets, including changes in the default rates and management’s assumptions regarding default rates on the mortgage loans in MFA’s residential whole loan portfolio; MFA’s ability to borrow to finance its 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 MFA’s business; MFA’s 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 MFA to accrete the market discount on residential whole loans and the extent of prepayments, realized losses and changes in the composition of MFA’s 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 MFA’s Board and will depend on, among other things, MFA’s taxable income, its financial results and overall financial condition and liquidity, maintenance of its REIT qualification and such other factors as MFA’s Board deems relevant; MFA’s ability to maintain its qualification as a REIT for federal income tax purposes; MFA’s ability to maintain its exemption from registration under the Investment Company Act of 1940, as amended (or the “Investment Company Act”), including statements regarding the concept release issued by the Securities and Exchange Commission (“SEC”) relating to interpretive issues under the Investment Company Act with respect to the status under the Investment Company Act of certain companies that are engaged in the business of acquiring mortgages and mortgage-related interests; MFA’s ability to continue growing its residential whole loan portfolio, which is dependent on, among other things, the supply of loans offered for sale in the market; expected returns on MFA’s investments in nonperforming residential whole loans (“NPLs”), which are affected by, among other things, the length of time required to foreclose upon, sell, liquidate or otherwise reach a resolution of the property underlying the NPL, home price values, amounts advanced to carry the asset (e.g., taxes, insurance, maintenance expenses, etc. on the underlying property) and the amount ultimately realized upon resolution of the asset; targeted or expected returns on MFA’s investments in recently-originated loans, the performance of which is, similar to MFA’s other mortgage loan investments, subject to, among other things, differences in prepayment risk, credit risk and financing cost associated with such investments; risks associated with MFA’s investments in MSR-related assets, including servicing, regulatory and economic risks, risks associated with our investments in loan originators, risks associated with investing in real estate assets, including changes in business conditions and the general economy and risks associated with the integration of MFA’s recently-completed acquisition of Lima One Holdings, LLC, and the ongoing operation thereof (including, without limitation, unanticipated expenditures relating to or liabilities arising from the transaction and/or the inability to obtain, or delays in obtaining, expected benefits from the transaction). These and other risks, uncertainties and factors, including those described in the annual, quarterly and current reports that MFA files with the SEC, could cause MFA’s actual results to differ materially from those projected in any forward-looking statements it makes. All forward-looking statements are based on beliefs, assumptions and expectations of MFA’s future performance, taking into account all information currently available. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect MFA. Except as required by law, MFA is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

MFA FINANCIAL, INC.

CONSOLIDATED BALANCE SHEETS

(1) Includes approximately $2.3 billion and $1.8 billion of Residential whole loans transferred to consolidated variable interest entities (“VIEs”) at June 30, 2021 and December 31, 2020, respectively. Such assets can be used only to settle the obligations of each respective VIE.

MFA FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Reconciliation of GAAP Book Value per Common Share to non-GAAP Economic Book Value per Common Share

“Economic book value” is a non-GAAP financial measure of our financial position. To calculate our Economic book value, our portfolios of Residential whole loans at carrying value are adjusted to their fair value, rather than the carrying value that is required to be reported under the GAAP accounting model applied to these loans. This adjustment is also reflected in our end of period stockholders’ equity in the table below. Management considers that Economic book value provides investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value changes for all of our residential mortgage assets, irrespective of the accounting model applied for GAAP reporting purposes. Economic book value does not represent and should not be considered as a substitute for Stockholders’ Equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies.

The following table provides a reconciliation of our GAAP book value per common share to our non-GAAP Economic book value per common share for the quarterly periods below: