Distressed and Other Residential Mortgage Loans, At Fair Value

Certain of the Company’s acquired residential mortgage loans, including distressed residential mortgage loans, non-QM loans and second mortgages, are presented at fair value on its condensed consolidated balance sheets as a result of a fair value election made at the time of acquisition. Subsequent changes in fair value are reported in current period earnings and presented in net gain (loss) on distressed and other residential mortgage loans at fair value on the Company’s condensed consolidated statements of operations.

The Company’s distressed and other residential mortgage loans at fair value consist of the following as of March 31, 2019 and December 31, 2018, respectively (dollar amounts in thousands):



	Principal		Premium/(Discount)			Unrealized Gains/(Losses)		Carrying Value
March 31, 2019	$	927,196	$	(63,569	)	$	11,939	$	875,566
December 31, 2018	788,372		(54,905		)	4,056		737,523

As of March 31, 2019, the Company is committed to purchase $0.3 million of second mortgages from originators.

The following table presents the components of net gain (loss) on distressed and other residential mortgage loans at fair value for the three months ended March 31, 2019 and 2018, respectively (dollar amounts in thousands):



	March 31, 2019		March 31, 2018
Net realized gain on payoff and sale of loans	$	3,127	$	40
Net unrealized gains (losses)	7,883		(206		)

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of distressed and other residential mortgage loans at fair value as of March 31, 2019 and December 31, 2018, respectively, are as follows:



	March 31, 2019		December 31, 2018
California	27.8	%	27.9	%
Florida	9.8	%	9.0	%
Texas	5.1	%	4.2	%
New York	5.0	%	5.1	%

The following table presents the fair value and aggregate unpaid principal balance of the Company's distressed and other residential mortgage loans at fair value greater than 90 days past due and in non-accrual status as of March 31, 2019 and December 31, 2018, respectively (dollar amounts in thousands):



	Fair Value		Unpaid Principal Balance
March 31, 2019	$	49,284	$	60,858
December 31, 2018	60,117		75,167

Distressed and other residential mortgage loans with a fair value of approximately $677.6 million and $626.2 million at March 31, 2019 and December 31, 2018, respectively, are pledged as collateral for master repurchase agreements (see Note 12).