v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Cash Flows From Operating Activities:      
Net income $ 230,499 $ 176,065 $ 126,104
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
(Accretion) Amortization of investment discounts/premiums, net (24,671) 4,862 16,347
Accretion of deferred financing costs, debt issuance costs, and Securitized debt discounts/premiums, net 18,575 13,833 31,818
Net unrealized (gains) losses on derivatives (10,371) (2,963) 6,411
Proceeds (payments) for derivative settlements 0 14,517 (20,509)
Margin (paid) received on derivatives (69,943) (10,249) 70,415
Net unrealized (gains) losses on financial instruments at fair value (81,733) (10,811) (34,373)
Net realized losses (gains) on sales of investments 23,192 5,219 31,234
Other investment (gains) losses (5,733) (9,543) (1,091)
Net increase in provision for credit losses 15,705 9,869 11,371
Amortization of intangibles and depreciation expenses 7,183 321 0
Gain on origination and sale of loans, net 1,228 0 0
(Gain) loss on extinguishment of debt (2,142) 0 (3,875)
Equity-based compensation expense 9,694 10,095 9,552
Non-cash imputed compensation related to business acquisition 1,364 10,296 0
Direct loan origination costs, net (1,037,559) 0 0
Sales, settlements and proceeds from sale of loans held-for-sale 671,589 0 0
Fair Value adjustment on mortgage loans held-for-sale (7,798) 0 0
Changes in operating assets:      
(Increase) decrease in accrued interest receivable, net 6,613 (4,429) (15,192)
Decrease (increase) in other assets 11,759 (14,516) (15,235)
Changes in operating liabilities:      
(Decrease) increase in accounts payable and other liabilities (5,610) 9,546 (7,285)
Increase in accrued interest payable, net (719) 3,562 7,577
Net cash (used in) provided by operating activities (248,879) 205,673 213,269
Cash Flows From Investing Activities:      
Payments on purchases of investment in MSR financing receivables (38,221) 0 0
Net cash (used in) provided by investing activities (1,657,053) 178,221 551,752
Cash Flows From Financing Activities:      
Proceeds from secured financing agreements 54,499,327 30,010,782 29,073,443
Payments on secured financing agreements (51,767,585) (29,612,712) (30,090,242)
Payments on repurchase of common stock 0 0 (33,101)
Proceeds on issuance of common stock 0 0 73,777
Proceeds from securitized debt borrowings, collateralized by Loans held for investment 1,011,244 340,098 2,186,058
Payments on securitized debt borrowings, collateralized by Loans held for investment (1,543,330) (1,170,575) (1,767,286)
Payments on securitized debt borrowings, collateralized by Non-Agency RMBS (17) (98) (53)
Net proceeds from issuance of unsecured debt 115,494 134,179 0
Common dividends paid (122,702) (119,080) (195,219)
Preferred dividends paid (86,031) (104,174) (55,313)
Net cash provided by (used in) financing activities 2,106,400 (521,580) (807,937)
Net increase (decrease) in cash, cash equivalents and restricted cash 200,468 (137,686) (42,916)
Cash, cash equivalents and restricted cash at beginning of period 83,998 221,684 264,600
Cash, cash equivalents and restricted cash at end of period 284,465 83,998 221,684
Supplemental disclosure of cash flow information:      
Interest received 799,367 761,385 774,059
Interest paid 534,788 479,241 470,147
Income taxes paid 3,530 49 102
Change in fair value of contingent earn-out liability 2,147 15,800 0
Non-cash investing activities:      
Payable for investments purchased 3,267 454,730 158,892
Net change in unrealized gain (loss) on available-for sale securities (13,154) (26,219) (44,990)
Non-Cash Consideration paid for HomeXpress 27,460 0 0
Non-cash financing activities:      
Dividends declared, not yet paid 34,891 34,265 54,552
HomeXpress Mortgage Corp      
Cash Flows From Investing Activities:      
Payments to acquire businesses (183,034) 0 0
Palisades Group      
Cash Flows From Investing Activities:      
Payments to acquire businesses 0 (29,112) 0
Agency MBS portfolio      
Cash Flows From Investing Activities:      
Purchases (4,226,074) (1,070,444) (2,085)
Sales 1,156,327 569,391 313,094
Principal payments 192,597 77,278 901
Non-agency RMBS Portfolio      
Cash Flows From Investing Activities:      
Purchases 0 (96,159) (3,954)
Sales 165,042 0 0
Principal payments 92,187 74,069 83,724
Loans held for investment      
Cash Flows From Investing Activities:      
Sales 154,934 0 2,611
Principal payments 1,470,573 1,309,841 1,417,648
Purchases $ (441,383) $ (656,643) $ (1,260,187)

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