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SEGMENTS | 3 Months Ended
--- | ---
Mar. 31, 2024
Segment Reporting [Abstract] |
SEGMENTS |
17. SEGMENTS
The Company operates in three reportable segments further described in the Description of Business Note. The accounting policies applied to the segments are the same as those described in the summary of significant accounting policies, with the exception of allocations between segments related to net interest income and other comprehensive income (loss), which are reflected in Other income (loss), and allocations between segments related to investment balances, which are presented net of associated financings in Total Assets. These allocations are made to reflect the economic hedging relationship between investments within different operating segments. Activities that are not directly attributable or not allocated to any of the three current operating segments (such as investments in commercial mortgage-backed securities, preferred stock dividends and corporate existence costs) are reported under Corporate and Other as reconciling items to the Company’s consolidated financial statements. The tables below summarize the result of operations and total assets by segment that are provided to the Chief Operating Decision Maker (CODM), which is the Company’s Operating Committee. Comprehensive income is the measure of segment profit or loss that is determined in accordance with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements and is a key determinant of the Company’s economic return (computed as the change in stockholders’ equity attributable to common shareholders plus common stock dividends declared divided by the prior period’s stockholders’ equity attributable to common shareholders), a measure which is used by the CODM to evaluate segment results and is one of the factors considered in determining capital allocation among the segments. The following tables present the reportable operating segments related to the Company’s results of operations for the three months ended March 31, 2024 and 2023:
Three Months Ended March 31, 2024
| Agency | Resi-credit | MSR | Corporate & Other | Consolidated
| (dollars in thousands)
Interest income | $ | 781,926 |  | $ | 309,008 |  | $ | — |  | $ | 3,554 |  | $ | 1,094,488 |
Interest expense | 846,771 |  | 251,862 |  | — |  | 2,306 |  | 1,100,939 |
Net interest income | (64,845) |  | 57,146 |  | — |  | 1,248 |  | (6,451) |
Servicing and related income | — |  | — |  | 115,084 |  | — |  | 115,084 |
Servicing and related expense | — |  | — |  | 12,216 |  | — |  | 12,216 |
Net servicing income | — |  | — |  | 102,868 |  | — |  | 102,868 |
Other income (loss) | 300,952 |  | 105,366 |  | (870) |  | 936 |  | 406,384 |
Less: Total general and administrative expenses | 15,588 |  | 12,674 |  | 8,594 |  | 1,714 |  | 38,570 |
Income (loss) before income taxes | 220,519 |  | 149,838 |  | 93,404 |  | 470 |  | 464,231 |
Income taxes | 607 |  | (1,679) |  | 149 |  | (20) |  | (943) |
Net income (loss) | 219,912 |  | 151,517 |  | 93,255 |  | 490 |  | 465,174 |
Less: Net income (loss) attributable to noncontrolling interest | — |  | 2,282 |  | — |  | — |  | 2,282 |
Net income (loss) attributable to Annaly | 219,912 |  | 149,235 |  | 93,255 |  | 490 |  | 462,892 |
Dividends on preferred stock | — |  | — |  | — |  | 37,061 |  | 37,061 |
Net income (loss) available (related) to common stockholders | 219,912 |  | 149,235 |  | 93,255 |  | (36,571) |  | 425,831 |
Unrealized gains (losses) on available-for-sale securities | (281,869) |  | — |  | — |  | — |  | (281,869) |
Reclassification adjustment for net (gains) losses included in net income (loss) | 335,351 |  | — |  | — |  | — |  | 335,351 |
Other comprehensive income (loss) | 53,482 |  | — |  | — |  | — |  | 53,482 |
Comprehensive income (loss) | 273,394 |  | 151,517 |  | 93,255 |  | 490 |  | 518,656 |
Comprehensive income (loss) attributable to noncontrolling interests | — |  | 2,282 |  | — |  | — |  | 2,282 |
Comprehensive income (loss) attributable to Annaly | $ | 273,394 |  | $ | 149,235 |  | $ | 93,255 |  | $ | 490 |  | $ | 516,374 |
Noncash investing and financing activities: |
Receivable for unsettled trades | 907,634 |  | 5,000 |  | 28,732 |  | — |  | 941,366 |
Payable for unsettled trades | 2,430,956 |  | — |  | 125,842 |  | — |  | 2,556,798 |
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment | 53,482 |  | — |  | — |  | — |  | 53,482 |
Dividends declared, not yet paid | — |  | — |  | — |  | 325,286 |  | 325,286 |
Total assets |
Total assets | $ | 66,485,685 |  | $ | 21,525,612 |  | $ | 3,209,074 |  | $ | 263,175 |  | $ | 91,483,546 |
Three Months Ended March 31, 2023
| Agency | Resi-credit | MSR | Corporate & Other | Consolidated
| (dollars in thousands)
Interest income | $ | 607,387 |  | $ | 200,976 |  | $ | — |  | $ | 9,887 |  | $ | 818,250 |
Interest expense | 651,684 |  | 141,501 |  | — |  | 5,602 |  | 798,787 |
Net interest income | (44,297) |  | 59,475 |  | — |  | 4,285 |  | 19,463 |
Servicing and related income | — |  | — |  | 84,273 |  | — |  | 84,273 |
Servicing and related expense | — |  | — |  | 7,880 |  | — |  | 7,880 |
Net servicing income | — |  | — |  | 76,393 |  | — |  | 76,393 |
Other income (loss) | (945,023) |  | 37,776 |  | 28,234 |  | (4,310) |  | (883,323) |
Less: Total general and administrative expenses | 14,140 |  | 12,678 |  | 7,370 |  | 6,640 |  | 40,828 |
Income (loss) before income taxes | (1,003,460) |  | 84,573 |  | 97,257 |  | (6,665) |  | (828,295) |
Income taxes | (219) |  | 7,376 |  | 3,759 |  | 117 |  | 11,033 |
Net income (loss) | (1,003,241) |  | 77,197 |  | 93,498 |  | (6,782) |  | (839,328) |
Less: Net income (loss) attributable to noncontrolling interest | — |  | 4,928 |  | — |  | — |  | 4,928 |
Net income (loss) attributable to Annaly | (1,003,241) |  | 72,269 |  | 93,498 |  | (6,782) |  | (844,256) |
Dividends on preferred stock | — |  | — |  | — |  | 31,875 |  | 31,875 |
Net income (loss) available (related) to common stockholders | (1,003,241) |  | 72,269 |  | 93,498 |  | (38,657) |  | (876,131) |
Unrealized gains (losses) on available-for-sale securities | 675,374 |  | — |  | — |  | — |  | 675,374 |
Reclassification adjustment for net (gains) losses included in net income (loss) | 482,908 |  | — |  | — |  | — |  | 482,908 |
Other comprehensive income (loss) | 1,158,282 |  | — |  | — |  | — |  | 1,158,282 |
Comprehensive income (loss) | 155,041 |  | 77,197 |  | 93,498 |  | (6,782) |  | 318,954 |
Comprehensive income (loss) attributable to noncontrolling interests | — |  | 4,928 |  | — |  | — |  | 4,928 |
Comprehensive income (loss) attributable to Annaly | $ | 155,041 |  | $ | 72,269 |  | $ | 93,498 |  | $ | (6,782) |  | $ | 314,026 |
Noncash investing and financing activities: |
Receivable for unsettled trades | 669,048 |  | — |  | 10,048 |  | — |  | 679,096 |
Payable for unsettled trades | 3,234,611 |  | 578 |  | 23,845 |  | — |  | 3,259,034 |
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment | 1,158,282 |  | — |  | — |  | — |  | 1,158,282 |
Dividends declared, not yet paid | — |  | — |  | — |  | 321,023 |  | 321,023 |
Total assets |
Total assets | $ | 68,858,366 |  | $ | 15,313,440 |  | $ | 2,012,405 |  | $ | 647,806 |  | $ | 86,832,017 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -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 2: http://www.xbrl.org/2003/role/disclosureRef -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 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -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 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -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 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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