v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At March 31, 2026, the Company’s reportable segments include (i) mortgage-related assets and (ii) Lima One. The Corporate column in the table below primarily consists of corporate cash and related interest income, investments in loan originators and related economics, general and administrative expenses not directly attributable to Lima One, interest expense on unsecured senior notes (see Note 6), securitization issuance costs, and preferred stock dividends. The Company’s segments are managed by its “chief operating decision maker” or “CODM” as defined under GAAP; the Company’s CODM is its Chief Executive Officer. The CODM utilizes the segment reporting as part of their analysis of relative segment performance in deciding where to focus resources to enhance the Company’s future performance.

The following tables summarize segment financial information, which in total reconciles to the same data for the Company as a whole:

(In Thousands)
Mortgage-Related AssetsLima OneCorporateTotal
Three months ended March 31, 2026
Interest Income$148,188 $42,137 $1,601 $191,926 
Interest Expense101,262 26,906 4,568 132,736 
Net Interest Income/(Expense)$46,926 $15,231 $(2,967)$59,190 
Reversal/(Provision) for Credit Losses on Residential Whole Loans242 — — 242 
Reversal/(Provision) for Credit Losses on Other Assets— — — — 
Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses$47,168 $15,231 $(2,967)$59,432 
Net gain/(loss) on residential whole loans measured at fair value through earnings$(24,237)$(10,524)$— $(34,761)
Impairment and other net gain/(loss) on securities and other portfolio investments(38,688)13 405 (38,270)
Net gain/(loss) on real estate owned383 (3,364)— (2,981)
Net gain/(loss) on derivatives used for risk management purposes28,064 2,662 — 30,726 
Net gain/(loss) on securitized debt measured at fair value through earnings16,134 3,711 — 19,845 
Lima One mortgage banking income— 7,660 — 7,660 
Net realized gain/(loss) on residential whole loans held at carrying value— — — — 
Other, net929 (2,901)3,868 1,896 
Other Income/(Loss), net$(17,415)$(2,743)$4,273 $(15,885)
Compensation and benefits$— $8,882 $13,277 $22,159 
Other general and administrative expense— 4,313 7,841 12,154 
Loan servicing, financing and other related costs3,609 2,354 3,955 9,918 
Amortization of intangible assets— 300 — 300 
Income/(loss) before income taxes$26,144 $(3,361)$(23,767)$(984)
Provision for/(benefit from) income taxes— — — — 
Net Income/(Loss)$26,144 $(3,361)$(23,767)$(984)
Less Preferred Stock Dividend Requirement$— $— $10,424 $10,424 
Net Income/(Loss) Available to Common Stock and Participating Securities$26,144 $(3,361)$(34,191)$(11,408)
(In Thousands)
Mortgage-Related AssetsLima OneCorporateTotal
Three months ended March 31, 2025
Interest Income$112,767 $65,272 $2,466 $180,505 
Interest Expense77,361 41,070 4,537 122,968 
Net Interest Income/(Expense)$35,406 $24,202 $(2,071)$57,537 
Reversal/(Provision) for Credit Losses on Residential Whole Loans
(145)— — (145)
Provision for Credit Losses on Other Assets— — — — 
Net Interest Income/(Expense) after Reversal/(Provision) for Credit Losses$35,261 $24,202 $(2,071)$57,392 
Net gain/(loss) on residential whole loans measured at fair value through earnings$48,663 $5,717 $— $54,380 
Impairment and other net gain/(loss) on securities and other portfolio investments20,435 (9)753 21,179 
Net gain/(loss) on real estate owned69 (1,577)— (1,508)
Net gain/(loss) on derivatives used for risk management purposes(25,562)(5,493)— (31,055)
Net gain/(loss) on securitized debt measured at fair value through earnings(17,149)(4,782)— (21,931)
Lima One mortgage banking income— 5,437 — 5,437 
Net realized gain/(loss) on residential whole loans held at carrying value(539)— — (539)
Other, net(745)(1,996)1,290 (1,451)
Other Income/(Loss), net$25,172 $(2,703)$2,043 $24,512 
Compensation and benefits$— $9,793 $13,464 $23,257 
Other general and administrative expense8 4,376 5,907 10,291 
Loan servicing, financing and other related costs4,243 1,148 1,861 7,252 
Amortization of intangible assets— 800 — 800 
Income/(loss) before income taxes$56,182 $5,382 $(21,260)$40,304 
Provision for/(benefit from) income taxes— — (872)(872)
Net Income/(Loss)
$56,182 $5,382 $(20,388)$41,176 
Less Preferred Stock Dividend Requirement$— $— $8,219 $8,219 
Net Income/(Loss) Available to Common Stock and Participating Securities$56,182 $5,382 $(28,607)$32,957 
(In Thousands)
Mortgage-Related AssetsLima OneCorporateTotal
March 31, 2026
Total Assets$10,507,268 $2,469,863 $252,440 $13,229,571 
December 31, 2025
Total Assets$10,128,088 $2,632,740 $285,621 $13,046,449 

Lima One Segment

The Lima One segment includes the stand-alone mortgage origination and servicing business of Lima One, including related goodwill, intangible assets, and direct expenses, plus Lima One-related residential whole loans and REO (defined as both those owned by Lima One on the acquisition date and those originated by Lima One since the acquisition date) and the economics related thereto (including any related taxes and the economics of associated financing and hedging instruments), all as recorded under GAAP. Associated financing economics are equal to the results of direct financings of Lima One-related residential whole loans and
REO plus allocations of the results of financings which include Lima One related residential whole loans and REO as part of their collateral, based on the relative carrying values of the financed assets. Associated hedging economics are equal to allocations of the Company’s overall hedging results based on the relative estimated duration of each asset class hedged and the relative fair values of assets within each asset class.

Mortgage-Related Assets Segment

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