v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
Note 3 — Segment Reporting


Public companies are required to disclose certain information about their reportable operating segments, which are defined as significant components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the chief operating decision maker (“CODM”) in assessing performance of the segment and in deciding how to allocate resources to an individual segment. The structure of the Company’s reportable segments is determined based on the financial information used by the Company’s CODM to assess performance and allocate resources. The Company’s CODM is its Chief Executive Officer.



The two reportable segments that the Company conducts its business through are investments in RMBS and investments in Servicing Related Assets, which are the primary revenue generating assets of the Company. Activities that are not directly attributable or not allocated to any of the reportable segments are reported under the “All Other” category as a reconciling item to the Company’s consolidated financial statements. The activities within the “All Other” category consists of certain corporate level expenses including general and administrative expenses and compensation and benefits. The Company’s segments align with its primary business operations and how the CODM reviews its operating results. The primary measure of profitability used to evaluate segment performance and allocate resources is comprehensive income (loss). Analysis of the information presented in the tables below is presented to the CODM on a regular basis to assess segment profitability as well as to identify risks and opportunities to determine resource allocation.


The accounting principles applied at the operating segment level in determining comprehensive income (loss) are the same as those applied at the consolidated financial statement level. Compensation and benefits as well as general and administrative expenses are allocated to the reportable segments using a reasonable allocation key that takes into account the activities giving rise to such expenses.


Summary financial data with respect to the Company’s reportable segments is given below, together with the data for the Company as a whole (dollars in thousands):

 
Servicing
Related Assets
    
RMBS
    
All Other
    
Total
  
Income Statement
                        
Three Months Ended June 30, 2026
                        
Interest income
  
$
53
    
$
14,687
    
$
-
    
$
14,740
  
Interest expense
    
252
      
9,752
      
-
      
10,004
  
Net interest income (expense)
    
(199
)
    
4,935
      
-
      
4,736
  
Servicing fee income
    
9,692
      
-
      
-
      
9,692
  
Servicing costs
    
2,319
      
-
      
-
      
2,319
  
Net servicing income
    
7,373
      
-
      
-
      
7,373
  
Other income (expense) (A)
   
(5,542
)
    
1,311
      
-
      
(4,231
)
Other operating expenses (B)
    
(1,074
)
    
(720
)
    
(2,223
)
    
(4,017
)
Provision for corporate business taxes
     (67 )     -       -       (67 )
Net other comprehensive income
     -       502       -       502  
Comprehensive income (loss)
  
$
491
    
$
6,028
    
$
(2,223
)
  
$
4,296
  
                                 
Three Months Ended June 30, 2025
                                
Interest income
  
$
26
    
$
14,787
    
$
-
    
$
14,813
  
Interest expense
    
322
      
11,850
      
-
      
12,172
  
Net interest income (expense)
   
(296
)
    
2,937
      
-
      
2,641
  
Servicing fee income
    
10,933
      
-
      
-
      
10,933
  
Servicing costs
    
1,952
      
-
      
-
      
1,952
  
Net servicing income
    
8,981
      
-
      
-
      
8,981
  
Other expense (A)
    
(2,902
)
    
(2,683
)
    
-
      
(5,585
)
Other operating expenses (B)
    
(923
)
    
(644
)
    
(1,788
)
    
(3,355
)
Provision for corporate business taxes
     (1,121 )     -       -       (1,121 )
Net other comprehensive income (loss)
    -       320       -       320  
Comprehensive income (loss)
  
$
3,739
    
$
(70
)
  
$
(1,788
)
  
$
1,881
  
                                 
Six Months Ended June 30, 2026
                                
Interest income
  
$
105
    
$
30,485
    
$
-
    
$
30,590
  
Interest expense
    
849
      
20,549
      
-
      
21,398
  
Net interest income (expense)
    
(744
)
    
9,936
      
-
      
9,192
  
Servicing fee income
    
19,911
      
-
      
-
      
19,911
  
Servicing costs
    
4,608
      
-
      
-
      
4,608
  
Net servicing income
    
15,303
      
-
      
-
      
15,303
  
Other expense (A)
    
(7,199
)
    
(4,778
)
    
-
      
(11,977
)
Other operating expenses (B)
    
(1,908
)
    
(1,417
)
    
(3,964
)
    
(7,289
)
Provision for corporate business taxes
    
(1,006
)
    
-
      
-
      
(1,006
)
Net other comprehensive loss
    
-
      
(1,940
)
    
-
      
(1,940
)
Comprehensive income (loss)
   $ 4,446     $ 1,801     $ (3,964 )   $ 2,283  
                                 
Six Months Ended June 30, 2025
                                
Interest income
  
$
26
    
$
29,588
    
$
-
    
$
29,614
  
Interest expense
    
1,086
      
23,721
      
-
      
24,807
  
Net interest income (expense)
    
(1,060
)
    
5,867
      
-
      
4,807
  
Servicing fee income
    
21,906
      
-
      
-
      
21,906
  
Servicing costs
    
4,497
      
-
      
-
      
4,497
  
Net servicing income
    
17,409
      
-
      
-
      
17,409
  
Other expense (A)
    
(8,720
)
    
(10,509
)
    
-
      
(19,229
)
Other operating expenses (B)
    
(1,757
)
    
(1,431
)
    
(3,936
)
    
(7,124
)
Provision for corporate business taxes
    
(1,294
)
    
-
      
-
      
(1,294
)
Net other comprehensive income (loss)
    
-
      
7,170
      
-
      
7,170
  
Comprehensive income (loss)
   $ 4,578     $ 1,097     $ (3,936 )   $ 1,739  

(A)
Included in other income (expense) are realized and unrealized gains (losses) on Servicing Related Assets, RMBS and derivatives and credit loss and impairment on other asset.
(B)
Included in other operating expenses are general and administrative expenses and compensation and benefits.

   
Servicing
Related Assets
     RMBS     All Other
     Total  
Balance Sheet
                        
June 30, 2026
                        
Investments
  
$
211,105
    
$
1,079,802
    
$
-
    
$
1,290,907
  
Other assets
    
21,075
      
33,131
      
52,431
      
106,637
  
Total assets
    
232,180
      
1,112,933
      
52,431
      
1,397,544
  
Debt
    
140,648
      
1,008,738
      
-
      
1,149,386
  
Other liabilities
    
1,507
      
10,150
      
7,577
      
19,234
  
Total liabilities
    
142,155
      
1,018,888
      
7,577
      
1,168,620
  
Net Assets
  
$
90,025
    
$
94,045
    
$
44,854
    
$
228,924
  

December 31, 2025
                        
Investments
  
$
214,831
    
$
1,213,851
    
$
-
    
$
1,428,682
  
Other assets
    
28,904
      
27,293
      
55,677
      
111,874
  
Total assets
    
243,735
      
1,241,144
      
55,677
      
1,540,556
  
Debt
    
145,191
      
1,137,200
      
-
      
1,282,391
  
Other liabilities
    
2,575
      
9,504
      
7,554
      
19,633
  
Total liabilities
    
147,766
      
1,146,704
      
7,554
      
1,302,024
  
Net Assets
  
$
95,969
    
$
94,440
    
$
48,123
    
$
238,532