Principal-Only Stripped Mortgage-Backed Securities

3 Months Ended

Mar. 31, 2026

Note 8— Principal-Only Stripped Mortgage-Backed Securities

Following is a summary of activity in the Company’s investment in principal-only stripped MBS:


	Quarter ended March 31,
	2026		2025

	(in thousands)
Balance at beginning of quarter	$	722,528	$	825,865
Repayments		(58,069)		(37,738)
Changes in fair value included in income arising from:
Accrual of purchase discounts		(5,185)		11,335
Valuation adjustments		(39)		18,134
		(5,224)		29,469
Balance at end of quarter	$	659,235	$	817,596

Following is a summary of the Company’s investment in principal-only stripped MBS:


	March 31,		December 31,
	2026		2025

	(in thousands)
Principal balance	$	810,281	$	868,350
Unearned discount		(156,567)		(151,382)
Cumulative valuation change		5,521		5,560
Fair value	$	659,235	$	722,528
Fair value of principal-only stripped mortgage-backed securities pledged to secure Assets sold under agreements to repurchase	$	659,235	$	722,528

All of the Company’s principal-only stripped MBS have remaining contractual maturities of over ten years.