Discontinued Operations and Assets and Liabilities Held for Sale

In the fourth quarter of 2023, the Company’s board of directors (the “Board”) approved a plan to strategically shift the

Company’s core focus to LMM commercial real estate lending and small business loans, which contemplates the

disposition of assets and liabilities of the Company’s Residential Mortgage Banking segment. Accordingly, the then

Residential Mortgage Banking segment met the criteria to be classified as held for sale on the consolidated balance

sheets, presented as discontinued operations on the consolidated statements of operations, and excluded from continuing

operations for all periods presented. In the second and fourth quarters of 2024, the Company sold $4.7 billion and

$2.9 billion of residential mortgage servicing rights for net proceeds of $61.8 million and $47.4 million, respectively, as

part of the Company’s disposition of its Residential Mortgage Banking segment. In the first quarter of 2025, the

Company sold $4.2 billion of residential mortgage servicing rights for net proceeds of $9.8 million. The Company

completed the disposition of its Residential Mortgage Banking segment effective on June 30, 2025 through the sale of all

of the issued and outstanding equity of GMFS, LLC. The aggregate consideration consists of approximately $3.5 million

paid at closing, as adjusted for closing and other costs related to the disposition and subject to customary post-closing

adjustments, plus certain deferred payments related to the sale of MSRs and an earnout opportunity not to exceed

$5.5 million in the approximately 30 months after closing based on the performance of the sold business.

The table below presents the operating results of the Residential Mortgage Banking segment presented as discontinued


	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2026	2025	2026	2025
Interest income	$—	$2,575	$—	$4,693
Interest expense	—	(2,491)	—	(4,515)
Net interest income	$—	$84	$—	$178
Non-interest income
Residential mortgage banking activities	—	10,540	—	20,955
Net realized gain (loss) on financial instruments	—	—	—	9,832
Net unrealized gain (loss) on financial instruments	—	—	—	(8,952)
Servicing income, net of amortization and impairment	—	343	—	1,776
Other income	—	4	—	8
Total non-interest income	$—	$10,887	$—	$23,619
Non-interest expense
Employee compensation and benefits	—	(2,792)	—	(6,353)
Variable expenses on residential mortgage banking activities	—	(7,180)	—	(13,599)
Professional fees	—	(276)	—	(824)
Loan servicing expense	—	(2,274)	—	(3,702)
Other operating expenses	—	(2,006)	—	(3,470)
Total non-interest expense	$—	$(14,528)	$—	$(27,948)
Loss from discontinued operations before income tax benefit	—	(3,557)	—	(4,151)
Loss from disposal of discontinued operations before income tax benefit	—	(3,010)	—	(3,010)
Net loss from discontinued operations before income tax benefit	$—	$(6,567)	$—	$(7,161)
Income tax benefit	—	1,641	—	1,790
Net loss from discontinued operations	$—	$(4,926)	$—	$(5,371)