v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At June 30, 2026, the Company's reportable segments include (i) Investment Portfolio and (ii) Residential Origination.

Residential Origination segment

The Residential Origination segment consists of the stand-alone mortgage origination business of HomeXpress that originates Non-QM residential mortgage loans (both consumer loans and Investor Loans), and other Non-Agency and Agency mortgage loan products. This segment includes the related goodwill and intangible assets, operating revenues and expenses, and certain assets directly associated with the origination platform, including HomeXpress-related residential whole loans and real estate owned.

Investment Portfolio Segment

The Investment Portfolio segment consists of the Company’s investments and third-party advisory services activities, and includes its investments in financial assets including (i) residential mortgage loans and properties, (ii) real estate-related securities, (iii) consumer loans, (iv) MSR-related investments and (v) certain ancillary investments and equity method investments, as well as associated financing, hedging, and various allocable expenses. Prior to the fourth quarter of 2025, these activities comprised the Company’s single reportable segment.
Chief Operating Decision Maker and Performance Measures

The Company's segment reporting aligns with the information reviewed by the Company’s CODM for purposes of performance assessment and resource allocation. The Company identifies its CODM as the Chief Executive Officer. The CODM evaluates performance and makes investment and operating decisions based on each segment's contribution to net income. This measure is also used in the Company’s annual budgeting and forecasting process and in assessing budget-to-actual variances when allocating capital and personnel to the segments throughout the year.

Basis of Presentation and Recast of Prior Period

The segment information presented below reflects the Company's current reportable segment structure.

The Company completed its acquisition of HomeXpress on October 1, 2025, which resulted in the establishment of the Residential Origination segment. As a result, no revenues or expenses are presented for the Residential Origination segment for the three and six months ended June 30, 2025. Accordingly, the segment results for the three and six months ended June 30, 2026 are not directly comparable to those of the prior year period.

Segment Results

The following tables present, for each reportable segment, revenues, the measure of segment profit or loss, and significant segment expenses that are regularly reviewed by the CODM. Segment results are prepared on the same basis as the Company’s consolidated financial statements and are reconciled to consolidated amounts below:
For the Quarter Ended
June 30, 2026
(dollars in thousands)
Investment PortfolioResidential OriginationTotal
Net Interest Income:
Interest income
$206,910 $14,715 $221,625 
Interest expense
140,205 10,911 151,116 
Net interest income66,705 3,804 70,509 
Increase in provision for credit losses7,192 — 7,192 
Other income (losses):
Net unrealized gains (losses) on derivatives15,398 — 15,398 
Realized gains (losses) on derivatives9,527 — 9,527 
Periodic interest on derivatives, net2,061 — 2,061 
Net gains (losses) on derivatives26,986 — 26,986 
Investment management and advisory fees6,540 — 6,540 
Interest income from investment in MSR financing receivables, net838 — 838 
Net unrealized gains (losses) on financial instruments at fair value(43,386)— (43,386)
Net realized gains (losses) on sales of investments(9,623)— (9,623)
Gains (losses) on extinguishment of debt(2,748)— (2,748)
Other investment gains (losses)1,229 — 1,229 
Gain on origination and sale of loans, net(68)22,278 22,210 
Total other income (losses)(20,232)22,278 2,046 
Other expenses:
Compensation and benefits13,223 11,879 25,102 
General and administrative expenses9,027 2,452 11,479 
Servicing and asset manager fees4,431 — 4,431 
Depreciation, amortization, and impairment of intangible assets644 3,432 4,076 
Transaction expenses3,207 — 3,207 
Total other expenses30,532 17,763 48,295 
Income (loss) before income taxes8,749 8,319 17,068 
Income tax (benefit) expense47 (348)(301)
Net income (loss)8,702 8,667 17,369 
Dividends on preferred stock21,381 — 21,381 
Net income (loss) available to common shareholders$(12,679)$8,667 $(4,012)
For the Quarter Ended
June 30, 2025
(dollars in thousands)
Investment PortfolioResidential OriginationTotal
Net Interest Income:
Interest income
$201,297 $— $201,297 
Interest expense
135,287 — 135,287 
Net interest income66,010 — 66,010 
Increase in provision for credit losses4,409 — 4,409 
Other income (losses):
Net unrealized gains (losses) on derivatives(2,554)— (2,554)
Realized gains (losses) on derivatives(17,954)— (17,954)
Periodic interest on derivatives, net5,067 — 5,067 
Net gains (losses) on derivatives(15,441)— (15,441)
Investment management and advisory fees8,810 — 8,810 
Interest income from investment in MSR financing receivables, net— — — 
Net unrealized gains (losses) on financial instruments at fair value6,971 — 6,971 
Net realized gains (losses) on sales of investments(1,915)— (1,915)
Gains (losses) on extinguishment of debt— — — 
Other investment gains (losses)2,953 — 2,953 
Gain on origination and sale of loans, net— — — 
Total other income (losses)1,378 — 1,378 
Other expenses:
Compensation and benefits11,660 — 11,660 
General and administrative expenses6,815 — 6,815 
Servicing and asset manager fees7,306 — 7,306 
Depreciation, amortization, and impairment of intangible assets949 — 949 
Transaction expenses390 — 390 
Total other expenses27,120 — 27,120 
Income (loss) before income taxes35,859 — 35,859 
Income tax (benefit) expense409 — 409 
Net income (loss)35,450 — 35,450 
Dividends on preferred stock21,426 — 21,426 
Net income (loss) available to common shareholders$14,024 $— $14,024 
For the Six Months Ended
June 30, 2026
(dollars in thousands)
Investment PortfolioResidential OriginationTotal
Net Interest Income:
Interest income
$412,255 $28,665 $440,920 
Interest expense
274,372 21,036 295,408 
Net interest income137,883 7,629 145,512 
Increase in provision for credit losses10,016 — 10,016 
Other income (losses):
Net unrealized gains (losses) on derivatives33,548 — 33,548 
Realized gains (losses) on derivatives12,397 — 12,397 
Periodic interest on derivatives, net3,895 — 3,895 
Net gains (losses) on derivatives49,840 — 49,840 
Investment management and advisory fees13,704 — 13,704 
Interest income from investment in MSR financing receivables, net3,149 — 3,149 
Net unrealized gains (losses) on financial instruments at fair value(80,923)— (80,923)
Net realized gains (losses) on sales of investments(50,051)— (50,051)
Gains (losses) on extinguishment of debt(41,605)— (41,605)
Other investment gains (losses)320 — 320 
Gain on origination and sale of loans, net(68)43,663 43,595 
Total other income (losses)(105,634)43,663 (61,971)
Other expenses:
Compensation and benefits28,289 23,519 51,808 
General and administrative expenses19,062 4,578 23,640 
Servicing and asset manager fees9,953 — 9,953 
Depreciation, amortization, and impairment of intangible assets6,866 6,859 13,725 
Transaction expenses3,305 — 3,305 
Total other expenses67,475 34,956 102,431 
Income (loss) before income taxes(45,242)16,336 (28,906)
Income tax (benefit) expense(2,059)(306)(2,365)
Net income (loss)(43,183)16,642 (26,541)
Dividends on preferred stock42,478 — 42,478 
Net income (loss) available to common shareholders$(85,661)$16,642 $(69,019)
For the Six Months Ended
June 30, 2025
(dollars in thousands)
Investment PortfolioResidential OriginationTotal
Net Interest Income:
Interest income
$391,914 $— $391,914 
Interest expense
256,684 — 256,684 
Net interest income135,230 — 135,230 
Increase in provision for credit losses7,796 — 7,796 
Other income (losses):
Net unrealized gains (losses) on derivatives(9,024)— (9,024)
Realized gains (losses) on derivatives(17,872)— (17,872)
Periodic interest on derivatives, net9,202 — 9,202 
Net gains (losses) on derivatives(17,694)— (17,694)
Investment management and advisory fees17,745 — 17,745 
Interest income from investment in MSR financing receivables, net— — — 
Net unrealized gains (losses) on financial instruments at fair value135,866 — 135,866 
Net realized gains (losses) on sales of investments(1,915)— (1,915)
Gains (losses) on extinguishment of debt2,122 — 2,122 
Other investment gains (losses)2,536 — 2,536 
Gain on origination and sale of loans, net— — — 
Total other income (losses)138,660 — 138,660 
Other expenses:
Compensation and benefits24,745 — 24,745 
General and administrative expenses13,721 — 13,721 
Servicing and asset manager fees14,737 — 14,737 
Depreciation, amortization, and impairment of intangible assets1,902 — 1,902 
Transaction expenses6,077 — 6,077 
Total other expenses61,182 — 61,182 
Income (loss) before income taxes204,912 — 204,912 
Income tax (benefit) expense2,165 — 2,165 
Net income (loss)202,747 — 202,747 
Dividends on preferred stock42,783 — 42,783 
Net income (loss) available to common shareholders$159,964 $— $159,964 

Gain on origination and sale of loans, net

The following table presents the components of gain on origination and sale of loans, net by reportable segment, including the elimination of intersegment activity related to transfers of loans held for sale between the Company's Residential Origination and Investment Portfolio segments.
For the Quarter Ended
June 30, 2026
(dollars in thousands)
Investment PortfolioResidential OriginationEliminationTotal
Premium from loan sales$— $30,978 $(10,069)$20,909 
Mark to market changes on LHFS6,050 937 — 6,987 
Unrealized gains from hedging derivative instruments4,144 (1,028)— 3,116 
Unrealized gains from IRLC— (103)— (103)
Periodic interest on derivatives, net97 — — 97 
Realized gains from hedging instruments, net— 2,364 — 2,364 
Provision for loan repurchase reserves— (683)— (683)
Loan origination income, net(10,069)(2,918)10,069 (2,918)
Direct loan origination costs, net(290)(7,269)— (7,559)
Gain on origination and sale of loans, net$(68)$22,278 $— $22,210 

For the Six Months Ended
June 30, 2026
(dollars in thousands)
Investment PortfolioResidential OriginationEliminationTotal
Premium from loan sales$— $66,225 $(10,069)$56,156 
Mark to market changes on LHFS6,050 (7,348)— (1,298)
Unrealized gains from hedging derivative instruments4,144 125 — 4,269 
Unrealized gains from IRLC— 200 — 200 
Periodic interest on derivatives, net97 — — 97 
Realized gains from hedging instruments, net— 2,476 — 2,476 
Benefit (provision) for loan repurchase reserves— (756)— (756)
Loan origination income, net(10,069)(4,125)10,069 (4,125)
Direct loan origination costs, net(290)(13,135)— (13,424)
Gain on origination and sale of loans, net$(68)$43,662 $— $43,595 

Segment Assets

The CODM reviews total assets by segment in evaluating performance and allocating resources. Segment assets are presented on the same basis as the Company’s consolidated financial statements and are reconciled to consolidated total assets below.
As of
June 30, 2026
(dollars in thousands)
Investment PortfolioResidential OriginationTotal
Total assets$14,971,433 $1,073,614 $16,045,048 
Total stockholders’ equity$2,118,667 $296,959 $2,415,626 

As of
December 31, 2025
(dollars in thousands)
Investment PortfolioResidential OriginationTotal
Total assets$14,676,908 $1,131,634 $15,808,542 
Total stockholders’ equity$2,292,377 $280,317 $2,572,694