Debt Securities (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Schedule of Investments In Debt Securities and Beneficial Interests |
The following table presents information regarding the Company’s investments in debt securities: | | | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | As of December 31, 2025 | | Basis(1) | | Gross unrealized gains | | Gross unrealized losses | | Fair value | Commercial mortgage-backed securities, at fair value | $ | 273,421 | | | $ | 596 | | | $ | (234) | | | $ | 273,783 | | | RMBS available-for-sale, at fair value | 48,810 | | | 648 | | | (218) | | | 49,240 | | Debt securities held-to-maturity at amortized cost, net of allowance for credit losses of $0 | 41,528 | | | — | | | (1,210) | | | 40,318 | | Investment in beneficial interests at amortized cost, net of allowance for credit losses of $0 | 99,179 | | | 9,327 | | | (42,257) | | | 66,249 | | | Residential mortgage-backed securities | 189,517 | | | 9,975 | | | (43,685) | | | 155,807 | | | | | | | | | | | Total debt securities | $ | 462,938 | | | $ | 10,571 | | | $ | (43,919) | | | $ | 429,590 | |
(1)Basis amount is net of amortized discount, principal paydowns and interest receivable on CMBS, RMBS AFS and HTM before any fair value adjustment.
| | | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | As of December 31, 2024 | | Basis(1) | | Gross unrealized gains | | Gross unrealized losses | | Fair value | Commercial mortgage-backed securities, at fair value | $ | 245,540 | | | $ | 1,074 | | | $ | — | | | $ | 246,614 | | | RMBS available-for-sale, at fair value | 68,226 | | | 273 | | | (6,330) | | | 62,169 | | Debt securities held-to-maturity at amortized cost, net of allowance for credit losses of $0 | 46,043 | | | 8 | | | (2,104) | | | 43,947 | | Investment in beneficial interests at amortized cost, net of allowance for credit losses of $9,082 | 89,704 | | | 1,001 | | | (23,661) | | | 67,044 | | | Residential mortgage-backed securities | 203,973 | | | 1,282 | | | (32,095) | | | 173,160 | | | | | | | | | | | Total debt securities | $ | 449,513 | | | $ | 2,356 | | | $ | (32,095) | | | $ | 419,774 | |
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| Schedule of Debt Securities, Available-For-Sale, Unrealized Losses and Gains Position, Fair Value |
The following table presents a breakdown of the Company’s gross unrealized gains and losses on its investments in RMBS AFS grouped by due date:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | As of December 31, 2025 | | Step-up date(s)(1) | | Basis(2) | | Gross unrealized gains | | Gross unrealized losses | | Fair value | | RMBS due March 2060 | n/a | | $ | 3,916 | | | $ | 67 | | | $ | — | | | $ | 3,983 | | RMBS due January 2061(3) | n/a | | 5,268 | | | — | | | (68) | | | 5,200 | | | RMBS due June 2061 | n/a | | 8,833 | | | 154 | | | — | | | 8,987 | | RMBS due October 2061(3) | April 2029 | | 5,389 | | | — | | | (77) | | | 5,312 | | RMBS due March 2062(3) | May 2029 | | 5,789 | | | — | | | (73) | | | 5,716 | | | RMBS due July 2062 | February 2030 | | 8,915 | | | 256 | | | — | | | 9,171 | | | RMBS due October 2062 | October 2026 | | 4,389 | | | 32 | | | — | | | 4,421 | | | RMBS due May 2063 | July 2030 | | 6,311 | | | 139 | | | — | | | 6,450 | | | RMBS Available-for-Sale, at Fair Value | | $ | 48,810 | | | $ | 648 | | | $ | (218) | | | $ | 49,240 | |
(1)When applicable, the step-up date is the date at which the coupon interest rate on the security increases. (2)Basis amount is net of any realized amortized costs, accrued interest and principal paydowns or additional investment into security. (3)These securities have been in an unrealized loss position for 12 months or longer. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | As of December 31, 2024 | | Step-up date(s)(1) | | Basis(2) | | Gross unrealized gains | | Gross unrealized losses | | Fair value | RMBS due March 2060(3) | February 2025 | | $ | 3,825 | | | $ | — | | | $ | (362) | | | $ | 3,463 | | RMBS due December 2060(3) | July 2029 | | 7,521 | | | — | | | (3,133) | | | 4,388 | | RMBS due January 2061(3) | n/a | | 4,886 | | | — | | | (384) | | | 4,502 | | RMBS due June 2061(3) | January 2025/February 2025 | | 8,674 | | | — | | | (762) | | | 7,912 | | RMBS due October 2061(3) | April 2029 | | 6,015 | | | — | | | (371) | | | 5,644 | | RMBS due March 2062(3) | May 2029 | | 9,397 | | | — | | | (585) | | | 8,812 | | RMBS due July 2062(3) | February 2030 | | 12,081 | | | — | | | (733) | | | 11,348 | | | RMBS due October 2062 | October 2026 | | 4,673 | | | 221 | | | — | | | 4,894 | | | RMBS due May 2063 | July 2030 | | 11,154 | | | 52 | | | — | | | 11,206 | | | RMBS Available-for-Sale, at Fair Value | | $ | 68,226 | | | $ | 273 | | | $ | (6,330) | | | $ | 62,169 | |
(1)When applicable, the step-up date is the date at which the coupon interest rate on the security increases. (2)Basis amount is net of any realized amortized costs, accrued interest and principal paydowns or additional investment into security. (3)These securities have been in an unrealized loss position for 12 months or longer. |
| Schedule of Securities Accretable Interest Income |
The following table presents accretable interest income on debt securities and accretable yield on beneficial interests recognized for the years ended December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | ($ in thousands) | | | Year ended December 31, | | | | | | | | 2025 | | 2024 | | | | Interest income on CMBS | | | | | $ | 16,585 | | | $ | 4,476 | | | | | Interest income on RMBS AFS and HTM | | | | | 5,530 | | | 7,611 | | | | | RMBS Beneficial interests | | | | | 6,540 | | | 5,178 | | | | | | | | | $ | 28,655 | | | $ | 17,265 | | | |
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| Schedule of Allowance For Credit Losses on Beneficial Interests |
The following table presents the activity in the allowance for expected credit losses for beneficial interests: | | | | | | | | | | | | | | | | | | ($ in thousands) | | | Year ended December 31, | | | | | | | | 2025 | | 2024 | | | | Allowance for expected credit losses, beginning balance | | | | | $ | (9,082) | | | $ | (6,880) | | | | | Credit loss expense | | | | | (388) | | | — | | | | | Reclassification to non-credit discount from the allowance for changes in payment expectations | | | | | 2,467 | | | 1,773 | | | | | Net change in the allowance for credit losses | | | | | 7,003 | | | (3,975) | | | | | Allowance for expected credit losses, ending balance | | | | | $ | — | | | $ | (9,082) | | | |
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