Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2026

The following tables present the reportable operating segments related to the Company’s results of operations for the three and six months ended June 30, 2026 and 2025 (in thousands).


	Three Months Ended June 30, 2026
	Loans and Securities		Arc Home (1) (2)		Other		Total

Interest income	$	123,746	$	—	$	409	$	124,155
Interest expense	101,346		—		2,566		103,912
Total Net Interest Income	22,400		—		(2,157)		20,243





Total Other Income/(Loss)	2,874		—		—		2,874


Management fee to affiliate	—		—		2,311		2,311
Non-investment related expenses	—		—		2,306		2,306
Investment related expenses	4,220		—		—		4,220
Transaction related expenses	95		—		(3)		92
Total Expenses	4,315		—		4,614		8,929

Income/(loss) before equity in earnings/(loss) from affiliates	20,959		—		(6,771)		14,188

Equity in earnings/(loss) from affiliates	(446)		715		—		269
Income/(loss) before income taxes	20,513		715		(6,771)		14,457

Income tax expense	188		—		—		188
Net Income/(Loss)	20,325		715		(6,771)		14,269

Dividends on preferred stock	—		—		5,177		5,177

Net Income/(Loss) Available to Common Stockholders	$	20,325	$	715	$	(11,948)	$	9,092


	Three Months Ended June 30, 2025
	Loans and Securities		Arc Home (1) (2)		Other		Total

Interest income	$	109,986	$	—	$	879	$	110,865
Interest expense	90,568		—		2,545		93,113
Total Net Interest Income	19,418		—		(1,666)		17,752





Total Other Income/(Loss)	(2,713)		—		—		(2,713)


Management fee to affiliate	—		—		2,301		2,301
Non-investment related expenses	—		—		2,507		2,507
Investment related expenses	3,473		—		—		3,473
Transaction related expenses	3,018		—		—		3,018
Total Expenses	6,491		—		4,808		11,299

Income/(loss) before equity in earnings/(loss) from affiliates	10,214		—		(6,474)		3,740

Equity in earnings/(loss) from affiliates	268		(37)		—		231
Income/(loss) before income taxes	10,482		(37)		(6,474)		3,971

Income tax expense	26		—		—		26
Net Income/(Loss)	10,456		(37)		(6,474)		3,945

Dividends on preferred stock	—		—		5,321		5,321

Net Income/(Loss) Available to Common Stockholders	$	10,456	$	(37)	$	(11,795)	$	(1,376)


	Six Months Ended June 30, 2026
	Loans and Securities		Arc Home (1) (2)		Other		Total

Interest income	$	253,159	$	—	$	804	$	253,963
Interest expense	207,951		—		5,126		213,077
Total Net Interest Income	45,208		—		(4,322)		40,886





Total Other Income/(Loss)	(13,302)		—		—		(13,302)


Management fee to affiliate	—		—		4,630		4,630
Non-investment related expenses	—		—		4,962		4,962
Investment related expenses	8,518		—		—		8,518
Transaction related expenses	469		—		197		666
Total Expenses	8,987		—		9,789		18,776

Income/(loss) before equity in earnings/(loss) from affiliates	22,919		—		(14,111)		8,808

Equity in earnings/(loss) from affiliates	(758)		3,027		—		2,269
Income/(loss) before income taxes	22,161		3,027		(14,111)		11,077

Income tax expense	370		—		—		370
Net Income/(Loss)	21,791		3,027		(14,111)		10,707

Dividends on preferred stock	—		—		10,330		10,330

Net Income/(Loss) Available to Common Stockholders	$	21,791	$	3,027	$	(24,441)	$	377


	Six Months Ended June 30, 2025
	Loans and Securities		Arc Home (1) (2)		Other		Total

Interest income	$	218,038	$	—	$	1,957	$	219,995
Interest expense	178,309		—		5,085		183,394
Total Net Interest Income	39,729		—		(3,128)		36,601





Total Other Income/(Loss)	(1,164)		—		—		(1,164)


Management fee to affiliate	—		—		4,628		4,628
Non-investment related expenses	—		—		5,787		5,787
Investment related expenses	6,883		—		—		6,883
Transaction related expenses	4,079		—		—		4,079
Total Expenses	10,962		—		10,415		21,377

Income/(loss) before equity in earnings/(loss) from affiliates	27,603		—		(13,543)		14,060

Equity in earnings/(loss) from affiliates	77		1,339		—		1,416
Income/(loss) before income taxes	27,680		1,339		(13,543)		15,476

Income tax expense	54		—		—		54
Net Income/(Loss)	27,626		1,339		(13,543)		15,422

Dividends on preferred stock	—		—		10,625		10,625

Net Income/(Loss) Available to Common Stockholders	$	27,626	$	1,339	$	(24,168)	$	4,797

(1)Net Income/(loss) recognized by AG Arc does not include the Company's portion of gains or losses recorded by Arc Home in connection with the sale of residential mortgage loans to the Company. Refer to Note 10 for more information on this accounting policy.

(2)During the three months ended June 30, 2026, the Company recorded an unrealized gain/(loss) on its investment in AG Arc of $(0.3) million. During the three months ended June 30, 2025, the Company did not record any unrealized gain/(loss) during the period. For the six months ended June 30, 2026 and 2025, the Company recorded an unrealized gain/(loss) on its investment in AG Arc of $0.9 million and $1.4 million, respectively.

The following table presents the Company's assets, liabilities, and stockholders' equity by reportable segment as of June 30, 2026 and December 31, 2025, which reconciles to the total assets, liabilities, and stockholders' equity of the Company on a consolidated basis (in thousands).


	Loans and Securities		Arc Home		Other		Total
June 30, 2026
Total Assets	$	7,825,705	$	46,435	$	63,444	$	7,935,584
Total Liabilities	7,278,814		—		110,766		7,389,580
Total Stockholders' Equity	546,891		46,435		(47,322)		546,004

December 31, 2025
Total Assets	$	8,600,220	$	50,016	$	61,294	$	8,711,530
Total Liabilities	8,039,534		—		111,262		8,150,796
Total Stockholders' Equity	560,686		50,016		(49,968)		560,734

- Definition

Tabular disclosure of segment reporting. Includes, but is not limited to, reconciliation of reportable segment amount to corresponding consolidated total.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-34

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26A

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 25
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-25

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

+ Details