| Schedule of Effective Income Tax Rate Reconciliation |
The following table reconciles our GAAP net income (loss) to estimated REIT taxable income for the three and nine months ended September 30, 2026 and September 30, 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | GAAP net income (loss) | | $ | (323,746) | | | $ | 159,259 | | | $ | (263,781) | | | $ | 110,983 | | | Book to tax differences: | | | | | | | | | | ARMOUR TRS Inc. (income) loss | | 64 | | | (94) | | | (18) | | | (289) | | | | | | | | | | | | Gain (Loss) on Agency Securities, trading, net | | 1,165,185 | | | (177,108) | | | 1,390,404 | | | (401,910) | | | Gain (Loss) on U.S. Treasury Securities, net | | 18,227 | | | (6,197) | | | 39,329 | | | 9,596 | | | Changes in interest rate contracts | | (757,419) | | | 101,641 | | | (875,489) | | | 491,547 | | | | | | | | | | | | Amortization of deferred hedging costs | | (13,914) | | | (18,437) | | | (48,718) | | | (52,132) | | | Amortization of deferred Treasury Future gains | | 2,881 | | | 1,981 | | | 3,167 | | | 7,558 | | | Other | | 838 | | | 113 | | | 945 | | | 242 | | | Estimated REIT taxable income | | $ | 92,116 | | | $ | 61,158 | | | $ | 245,839 | | | $ | 165,595 | |
|