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v3.25.2

Segment Reporting | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Segment Reporting | Note 3 — Segment Reporting Public companies are required to disclose certain information about their reportable operating segments, which are defined as significant components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the chief operating decision maker (“CODM”) in assessing performance of the segment and in deciding how to allocate resources to an individual segment. The structure of the Company’s reportable segments is determined based on the financial information used by the Company’s CODM to assess performance and allocate resources. The Company’s CODM is its Chief Executive Officer. The two reportable segments that the Company conducts its business through are investments in RMBS and investments in Servicing Related Assets, which are the primary revenue generating assets of the Company. Activities that are not directly attributable or not allocated to any of the reportable segments are reported under the “All Other” category as a reconciling item to the Company’s consolidated financial statements. The activities within the “All Other” category consists of certain corporate level expenses including general and administrative expenses, compensation and benefits and management fees paid to affiliate prior to Internalization. The Company’s segments align with its primary business operations and how the CODM reviews its operating results. The primary measure of profitability used to evaluate segment performance and allocate resources is comprehensive income (loss). Analysis of the information presented in the tables below is presented to the CODM on a regular basis to assess segment profitability as well as to identify risks and opportunities to determine resource allocation. The accounting principles applied at the operating segment level in determining comprehensive income (loss) are the same as those applied at the consolidated financial statement level. Compensation and benefits as well as general and administrative expenses are allocated to the reportable segments using a reasonable allocation key that takes into account the activities giving rise to such expenses. Summary financial data with respect to the Company’s reportable segments is given below, together with the data for the Company as a whole (dollars in thousands):
|  | Servicing Related Assets |  |  | RMBS |  |  | All Other |  |  | Total |
Income Statement |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 26 |  |  | $ | 14,787 |  |  | $ | - |  |  | $ | 14,813 |
Interest expense |  |  | 322 |  |  |  | 11,850 |  |  |  | - |  |  |  | 12,172 |
Net interest income (expense) |  |  | (296 | ) |  |  | 2,937 |  |  |  | - |  |  |  | 2,641 |
Servicing fee income |  |  | 10,933 |  |  |  | - |  |  |  | - |  |  |  | 10,933 |
Servicing costs |  |  | 1,952 |  |  |  | - |  |  |  | - |  |  |  | 1,952 |
Net servicing income |  |  | 8,981 |  |  |  | - |  |  |  | - |  |  |  | 8,981 |
Other expense (A) |  |  | (2,902 | ) |  |  | (2,683 | ) |  |  | - |  |  |  | (5,585 | )
Other operating expenses (B) |  |  | (923 | ) |  |  | (644 | ) |  |  | (1,788 | ) |  |  | (3,355 | )
Provision for corporate business taxes |  |  | (1,121 | ) |  |  | - |  |  |  | - |  |  |  | (1,121 | )
Net other comprehensive loss |  |  | - |  |  |  | 320 |  |  |  | - |  |  |  | 320 |
Comprehensive income (loss) |  | $ | 3,739 |  |  | $ | (70 | ) |  | $ | (1,788 | ) |  | $ | 1,881 |
Three Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | - |  |  | $ | 13,677 |  |  | $ | - |  |  | $ | 13,677 |
Interest expense |  |  | 164 |  |  |  | 13,346 |  |  |  | - |  |  |  | 13,510 |
Net interest income (expense) |  |  | (164 | ) |  |  | 331 |  |  |  | - |  |  |  | 167 |
Servicing fee income |  |  | 12,349 |  |  |  | - |  |  |  | - |  |  |  | 12,349 |
Servicing costs |  |  | 3,455 |  |  |  | - |  |  |  | - |  |  |  | 3,455 |
Net servicing income |  |  | 8,894 |  |  |  | - |  |  |  | - |  |  |  | 8,894 |
Other income (expense) (A) |  |  | (2,869 | ) |  |  | 387 |  |  |  | - |  |  |  | (2,482 | )
Other operating expenses (B) |  |  | (949 | ) |  |  | (157 | ) |  |  | (4,025 | ) |  |  | (5,131 | )
Provision for corporate business taxes |  |  | (664 | ) |  |  | - |  |  |  | - |  |  |  | (664 | )
Net other comprehensive loss |  |  | - |  |  |  | (3,734 | ) |  |  | - |  |  |  | (3,734 | )
Comprehensive income (loss) |  | $ | 4,248 |  |  | $ | (3,173 | ) |  | $ | (4,025 | ) |  | $ | (2,950 | )
Six Months Ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 26 |  |  | $ | 29,588 |  |  | $ | - |  |  | $ | 29,614 |
Interest expense |  |  | 1,086 |  |  |  | 23,721 |  |  |  | - |  |  |  | 24,807 |
Net interest income (expense) |  |  | (1,060 | ) |  |  | 5,867 |  |  |  | - |  |  |  | 4,807 |
Servicing fee income |  |  | 21,906 |  |  |  | - |  |  |  | - |  |  |  | 21,906 |
Servicing costs |  |  | 4,497 |  |  |  | - |  |  |  | - |  |  |  | 4,497 |
Net servicing income |  |  | 17,409 |  |  |  | - |  |  |  | - |  |  |  | 17,409 |
Other expense (A) |  |  | (8,720 | ) |  |  | (10,509 | ) |  |  | - |  |  |  | (19,229 | )
Other operating expenses (B) |  |  | (1,757 | ) |  |  | (1,431 | ) |  |  | (3,936 | ) |  |  | (7,124 | )
Provision for corporate business taxes |  |  | (1,294 | ) |  |  | - |  |  |  | - |  |  |  | (1,294 | )
Net other comprehensive income |  |  | - |  |  |  | 7,170 |  |  |  | - |  |  |  | 7,170 |
Comprehensive income (loss) |  | $ | 4,578 |  |  | $ | 1,097 |  |  | $ | (3,936 | ) |  | $ | 1,739 |
Six Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 6 |  |  | $ | 26,412 |  |  | $ | - |  |  | $ | 26,418 |
Interest expense |  |  | 931 |  |  |  | 26,227 |  |  |  | - |  |  |  | 27,158 |
Net interest income (expense) |  |  | (925 | ) |  |  | 185 |  |  |  | - |  |  |  | (740 | )
Servicing fee income |  |  | 25,240 |  |  |  | - |  |  |  | - |  |  |  | 25,240 |
Servicing costs |  |  | 6,089 |  |  |  | - |  |  |  | - |  |  |  | 6,089 |
Net servicing income |  |  | 19,151 |  |  |  | - |  |  |  | - |  |  |  | 19,151 |
Other income (expense) (A) |  |  | (7,107 | ) |  |  | 11,623 |  |  |  | - |  |  |  | 4,516 |
Other operating expenses (B) |  |  | (1,773 | ) |  |  | (315 | ) |  |  | (6,632 | ) |  |  | (8,720 | )
Provision for corporate business taxes |  |  | (1,367 | ) |  |  | - |  |  |  | - |  |  |  | (1,367 | )
Net other comprehensive loss |  |  | - |  |  |  | (10,330 | ) |  |  | - |  |  |  | (10,330 | )
Comprehensive income (loss) |  | $ | 7,979 |  |  | $ | 1,163 |  |  | $ | (6,632 | ) |  | $ | 2,510 |
(A) | Included in other income (expense) are realized and unrealized gains (losses) on Servicing Related Assets, RMBS and derivatives.
(B) | Included in other operating expenses are general and administrative expenses, compensation and benefits and management fee to affiliate.
|  | Servicing Related Assets |  |  | RMBS |  |  | All Other |  |  | Total |
Balance Sheet |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |
Investments |  | $ | 224,601 |  |  | $ | 1,152,443 |  |  | $ | - |  |  | $ | 1,377,044 |
Other assets |  |  | 27,828 |  |  |  | 27,370 |  |  |  | 58,417 |  |  |  | 113,615 |
Total assets |  |  | 252,429 |  |  |  | 1,179,813 |  |  |  | 58,417 |  |  |  | 1,490,659 |
Debt |  |  | 149,381 |  |  |  | 1,072,294 |  |  |  | - |  |  |  | 1,221,675 |
Other liabilities |  |  | 2,966 |  |  |  | 24,566 |  |  |  | 9,039 |  |  |  | 36,571 |
Total liabilities |  |  | 152,347 |  |  |  | 1,096,860 |  |  |  | 9,039 |  |  |  | 1,258,246 |
Net Assets |  | $ | 100,082 |  |  | $ | 82,953 |  |  | $ | 49,378 |  |  | $ | 232,413 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Investments |  | $ | 233,658 |  |  | $ | 1,122,420 |  |  | $ | - |  |  | $ | 1,356,078 |
Other assets |  |  | 28,874 |  |  |  | 59,159 |  |  |  | 47,064 |  |  |  | 135,097 |
Total assets |  |  | 262,532 |  |  |  | 1,181,579 |  |  |  | 47,064 |  |  |  | 1,491,175 |
Debt |  |  | 151,226 |  |  |  | 1,077,257 |  |  |  | - |  |  |  | 1,228,483 |
Other liabilities |  |  | 4,290 |  |  |  | 15,010 |  |  |  | 9,770 |  |  |  | 29,070 |
Total liabilities |  |  | 155,516 |  |  |  | 1,092,267 |  |  |  | 9,770 |  |  |  | 1,257,553 |
Net Assets |  | $ | 107,016 |  |  | $ | 89,312 |  |  | $ | 37,294 |  |  | $ | 233,622 |

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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 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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