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Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
At September 30, 2023, the Company’s reportable segments include (i) mortgage-related assets and (ii) Lima One. The Corporate column in the table below primarily consists of corporate cash and related interest income, investments in loan originators and related economics, general and administrative expenses not directly attributable to Lima One, interest expense on unsecured convertible senior notes (see Note 6), securitization issuance costs, and preferred stock dividends.

The following tables summarize segment financial information, which in total reconciles to the same data for the Company as a whole:
(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
Three months ended September 30, 2023
Interest Income$94,855 $61,101 $3,209 $159,165 
Interest Expense64,785 44,303 3,936 113,024 
Net Interest Income/(Expense)$30,070 $16,798 $(727)$46,141 
Reversal of Provision for Credit Losses on Residential Whole Loans1,258 — — 1,258 
Net Interest Income/(Expense) after Provision for Credit Losses$31,328 $16,798 $(727)$47,399 
Net loss on residential whole loans measured at fair value through earnings$(99,500)$(33,394)$— $(132,894)
Impairment and other net loss on securities and other portfolio investments(13,439)— (722)(14,161)
Net gain on real estate owned
2,062 347 — 2,409 
Net gain on derivatives used for risk management purposes25,310 9,550 — 34,860 
Net gain on securitized debt measured at fair value through earnings25,345 11,086 — 36,431 
Lima One - origination, servicing and other fee income— 12,109 — 12,109 
Other, net515 684 655 1,854 
Total Other (Loss)/Income, net$(59,707)$382 $(67)$(59,392)
Compensation and benefits$— $12,010 $12,041 $24,051 
General and administrative expenses— 4,664 5,941 10,605 
Loan servicing, financing, and other related costs5,032 699 3,258 8,989 
Amortization of intangible assets— 800 — 800 
Net (Loss)/Income$(33,411)$(993)$(22,034)$(56,438)
Less Preferred Stock Dividend Requirement$— $— $8,219 $8,219 
Net (Loss)/Income Available to Common Stock and Participating Securities$(33,411)$(993)$(30,253)$(64,657)
(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
Three months ended September 30, 2022
Interest Income$90,406 $31,883 $1,583 123,872 
Interest Expense47,780 19,856 3,943 71,579 
Net Interest Income/(Expense)$42,626 $12,027 $(2,360)$52,293 
Provision for Credit Losses on Residential Whole Loans$(520)$(68)$— (588)
Net Interest Income/(Expense) after Provision for Credit Losses$42,106 $11,959 $(2,360)$51,705 
Net loss on residential whole loans measured at fair value through earnings$(226,894)$(64,924)$— $(291,818)
Impairment and other net loss on securities and other portfolio investments1,620 — (2,031)(411)
Net gain on real estate owned
3,861 — — 3,861 
Net gain on derivatives used for risk management purposes86,944 24,872 — 111,816 
Net gain on securitized debt measured at fair value through earnings79,471 19,387 — 98,858 
Lima One - origination, servicing and other fee income— 12,372 — 12,372 
Other, net282 35 814 1,131 
Total Other (Loss)/Income, net$(54,716)$(8,258)$(1,217)$(64,191)
Compensation and benefits$— $11,170 $9,893 $21,063 
General and administrative expenses— 3,756 5,056 8,812 
Loan servicing, financing, and other related costs6,063 280 5,014 11,357 
Amortization of intangible assets— 1,300 — 1,300 
Net Loss$(18,673)$(12,805)$(23,540)$(55,018)
Less Preferred Stock Dividend Requirement$— $— $8,218 $8,218 
Net Loss Available to Common Stock and Participating Securities$(18,673)$(12,805)$(31,758)$(63,236)
(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
Nine months ended September 30, 2023
Interest Income$269,586 $156,930 $9,204 $435,720 
Interest Expense180,802 113,050 11,853 305,705 
Net Interest Income/(Expense)$88,784 $43,880 $(2,649)$130,015 
Reversal of Provision for Credit Losses on Residential Whole Loans
663 314 — 977 
Net Interest Income/(Expense) after (Provision)/Reversal of Provision for Credit Losses$89,447 $44,194 $(2,649)$130,992 
Net loss on residential whole loans measured at fair value through earnings
$(101,449)$(32,974)$— $(134,423)
Impairment and other net loss on securities and other portfolio investments(14,205)— (1,594)(15,799)
Net gain on real estate owned
8,479 25 — 8,504 
Net gain on derivatives used for risk management purposes54,130 19,973 — 74,103 
Net loss on securitized debt measured at fair value through earnings9,412 2,688 — 12,100 
Lima One - origination, servicing and other fee income— 32,562 — 32,562 
Other, net6,535 2,131 1,856 10,522 
Total Other (Loss)/Income, net
$(37,098)$24,405 $262 $(12,431)
Compensation and benefits$— $32,952 $33,500 $66,452 
General and administrative expenses— 11,858 20,307 32,165 
Loan servicing, financing, and other related costs15,146 1,049 9,931 26,126 
Amortization of intangible assets— 3,400 — 3,400 
Net Income/(Loss)$37,203 $19,340 $(66,125)$(9,582)
Less Preferred Stock Dividend Requirement$— $— $24,656 $24,656 
Net Income/(Loss) Available to Common Stock and Participating Securities$37,203 $19,340 $(90,781)$(34,238)
(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
Nine months ended September 30, 2022
Interest Income$263,960 $73,736 $1,846 $339,542 
Interest Expense120,678 39,128 11,811 171,617 
Net Interest Income/(Expense)$143,282 $34,608 $(9,965)$167,925 
Reversal of Provision/(Provision) for Credit Losses on Residential Whole Loans1,211 (105)— 1,106 
Provision for Credit Losses on Other Assets— — (28,579)(28,579)
Net Interest Income/(Expense) after Reversal of Provision/(Provision) for Credit Losses$144,493 $34,503 $(38,544)$140,452 
Net loss on residential whole loans measured at fair value through earnings$(657,223)$(140,711)$— $(797,934)
Impairment and other net gain on securities and other portfolio investments(2,764)— (13,395)(16,159)
Net gain on real estate owned19,745 32 — 19,777 
Net gain on derivatives used for risk management purposes217,340 36,381 — 253,721 
Net gain on securitized debt measured at fair value through earnings202,016 45,532 — 247,548 
Lima One - origination, servicing and other fee income— 37,539 — 37,539 
Other, net4,198 64 3,091 7,353 
Total Other Income, net$(216,688)$(21,163)$(10,304)$(248,155)
Compensation and benefits$— $29,650 $30,029 $59,679 
General and administrative expenses— 10,509 17,507 28,016 
Loan servicing, financing, and other related costs19,508 839 14,646 34,993 
Amortization of intangible assets— 7,900 — 7,900 
Net Loss$(91,703)$(35,558)$(111,030)$(238,291)
Less Preferred Stock Dividend Requirement$— $— $24,656 $24,656 
Net Loss Available to Common Stock and Participating Securities$(91,703)$(35,558)$(135,686)$(262,947)
    

(Dollars in Thousands)Mortgage-Related AssetsLima OneCorporateTotal
September 30, 2023
Total Assets$6,174,062 $3,572,079 $358,659 $10,104,800 
December 31, 2022
Total Assets$6,065,557 $2,618,695 $428,153 $9,112,405 


Lima One Segment

On July 1, 2021, the Company completed the acquisition of Lima One Holdings, LLC, the parent company of Lima One Capital, LLC (collectively, “Lima One”), a leading originator and servicer of business purpose loans.

The Lima One segment includes the stand-alone mortgage origination and servicing business of Lima One, including related goodwill, intangible assets, and direct expenses, plus Lima One-related residential whole loans and REO (defined as both those owned by Lima One on the acquisition date and those originated by Lima One since the acquisition date) and the economics related thereto (including any related taxes and the economics of associated financing and hedging instruments), all
as recorded under GAAP. Associated financing economics are equal to the results of direct financings of Lima One-related residential whole loans and REO plus allocations of the results of financings which include Lima One related residential whole loans and REO as part of their collateral, based on the relative carrying values of the financed assets. Associated hedging economics are equal to allocations of the Company’s overall hedging results based on the relative estimated duration of each asset class hedged and the relative fair values of assets within each asset class.

Mortgage-Related Assets Segment
This segment is comprised of the remainder of the Company’s investments (including any related taxes and the economics of associated financing and hedging instruments).