v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Disclosure Segment Reporting
An operating segment is defined as a component of an entity that (i) engages in business activities from which revenues are recognized and expenses incurred, (ii) has discrete financial information available, and (iii) is evaluated on a regular basis by the Chief Operating Decision Maker (the "CODM") for decision-making purposes, including investment and operating decisions, such as capital and resource allocation decisions; and communicates results, strategy, and other relevant information to the Board of Directors and shareholders. The Company's CODM is, collectively, its Chief Executive Officer and President and its Co-Chief Investment Officers.
The Company has determined that it has two reportable segments, the Investment Portfolio Segment and the Longbridge Segment. The Company’s CODM assesses each segment’s performance and makes investment and operating decisions, based on each segment's contribution of net income, among other metrics.
As discussed in Note 1, the Investment Portfolio Segment includes a diverse array of the Company's financial assets, as well as associated financing, hedging, and various allocable expenses. The Longbridge Segment is primarily focused on the origination and servicing of, and investment in, reverse mortgage loans, including associated financial assets, financing, hedging, and allocated expenses.
Income and expense items that are not directly allocable to either segment are included in Corporate/Other as reconciling items to the Company's consolidated financial statements. These unallocable items include: (i) all income and expense items related to the Company's Unsecured borrowings, at fair value and preferred stock outstanding, including any hedges related thereto; (ii) management and incentive fees; (iii) income tax expense (benefit); (iv) certain compensation and benefits expenses and various other expenses; and (v) interest income (expense) on cash margin.
The following tables present the Company's results of operations by reportable segment for the three-month periods ended March 31, 2026 and 2025, and various reconciling items to the Company's results of operations overall. Other segment expenses may include professional, administrative and custody fees, technology- and data-related expenses, marketing expenses, licensing fees, rent and miscellaneous office expenses, and non-cash equity compensation.
Three-Month Period Ended March 31, 2026
(In thousands)Investment Portfolio SegmentLongbridge Segment
Corporate/ Other
Total
Interest income$107,182 $40,980 $1,341 $149,503 
Total other income (loss)(1)
7,484 87,038 15,492 110,014 
Significant expenses:
Interest expense(48,079)(28,779)(11,391)(88,249)
Base management fee to affiliate (net of fee rebates)— — (7,101)(7,101)
Incentive fee to affiliate— — (19,222)(19,222)
Investment and transaction related expenses—Servicing expense(1,754)(6,046)— (7,800)
Investment and transaction related expenses—Other(2,273)(9,754)— (12,027)
Compensation and benefits(2,574)(17,919)(1,313)(21,806)
Other expenses— (8,045)(4,372)(12,417)
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities
59,986 57,475 (26,566)90,895 
Income tax expense (benefit)— — 966 966 
Earnings (losses) from investments in unconsolidated entities17,564 — — 17,564 
Net Income (Loss)77,550 57,475 (27,532)107,493 
Net income (loss) attributable to non-controlling interests1,175 — 1,002 2,177 
Dividends on preferred stock— — 5,883 5,883 
Issuance costs of redeemed preferred stock— — 3,966 3,966 
Net Income (Loss) Attributable to Common Stockholders$76,375 $57,475 $(38,383)$95,467 
Non-cash items:
Amortization and depreciation expense$— $102 $— $102 
(1)Included in the Longbridge segment is $17.0 million of other income received pursuant to a settlement agreement executed between Longbridge and a third party.
Three-Month Period Ended March 31, 2025
(In thousands)Investment Portfolio
Segment		Longbridge Segment
Corporate/ Other
Total
Interest income$93,347 $20,852 $1,714 $115,913 
Total other income (loss)12,391 26,331 928 39,650 
Significant expenses:
Interest expense(51,563)(16,612)(4,481)(72,656)
Base management fee to affiliate (net of fee rebates)— — (6,092)(6,092)
Incentive fee to affiliate— — (4,533)(4,533)
Investment and transaction related expenses—Servicing expense(1,563)(5,456)— (7,019)
Investment and transaction related expenses—Other(1,254)(5,354)— (6,608)
Compensation and benefits(2,259)(13,760)(923)(16,942)
Other expenses— (6,996)(3,793)(10,789)
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities
49,099 (995)(17,180)30,924 
Income tax expense (benefit)— — (96)(96)
Earnings (losses) from investments in unconsolidated entities8,304 — — 8,304 
Net Income (Loss)57,403 (995)(17,084)39,324 
Net income (loss) attributable to non-controlling interests316 — 324 640 
Dividends on preferred stock— — 7,035 7,035 
Net Income (Loss) Attributable to Common Stockholders$57,087 $(995)$(24,443)$31,649 
Non-cash items
Amortization and depreciation expense $— $303 $— $303 
The following tables present the Company's balance sheet by reportable segment as of March 31, 2026 and December 31, 2025 which reconciles to the Company's financial position overall.
March 31, 2026
(In thousands)Investment Portfolio
Segment		Longbridge
Segment
Corporate/ Other
Total
Total Assets$6,629,411 $13,446,416 $157,269 $20,233,096 
Total Liabilities4,423,137 13,077,884 774,087 18,275,108 
Total Equity2,206,274 368,532 (616,818)1,957,988 
December 31, 2025
(In thousands)Investment Portfolio
Segment		Longbridge
Segment
Corporate/ Other
Total
Total Assets$6,382,070 $12,782,482 $188,358 $19,352,910 
Total Liabilities4,228,911 12,500,150 752,694 17,481,755 
Total Equity2,153,159 282,332 (564,336)1,871,155