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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Net interest income:    
Interest income [1] $ 219,295 $ 190,616
Interest expense [2] 144,293 121,397
Net interest income 75,002 69,219
Increase in provision for credit losses 2,824 3,387
Other income (losses):    
Net unrealized gains (losses) on derivatives 18,150 (6,469)
Realized gains on derivatives 2,870 82
Periodic interest on derivatives, net 1,834 4,135
Net gains (losses) on derivatives 22,854 (2,252)
Investment management and advisory fees 7,165 8,936
Interest income from investment in MSR financing receivables [3] 2,311 0
Net unrealized gains (losses) on financial instruments at fair value (37,536) 128,895
Net realized losses on sales of investments (40,428) 0
Gains (losses) on extinguishment of debt (38,858) 2,122
Other investment losses (910) (417)
Gain on origination and sale of loans, net 21,385 0
Total other income (losses) (64,017) 137,284
Other expenses:    
Compensation and benefits [4] 26,706 13,085
General and administrative expenses 12,161 6,907
Servicing and asset manager fees 5,522 7,431
Depreciation, amortization, and impairment expense 9,649 951
Transaction expenses 98 5,688
Total other expenses 54,136 34,062
Income (loss) before income taxes (45,974) 169,052
Income tax (benefit) expense (2,064) 1,755
Net income (loss) (43,910) 167,297
Dividends on preferred stock 21,097 21,357
Net income (loss) available to common shareholders $ (65,007) $ 145,940
Net income (loss) per share available to common shareholders:    
Basic (in dollars per share) $ (0.78) $ 1.79
Diluted (in dollars per share) $ (0.78) $ 1.77
Weighted average number of common shares outstanding:    
Basic (in shares) 83,661,145 81,350,497
Diluted (in shares) 83,661,145 82,394,218
[1] Includes interest income of consolidated VIEs of $129,069 and $144,402 for the quarters ended March 31, 2026 and 2025 respectively. See Note 10 for further discussion.
[2] Includes interest expense of consolidated VIEs of $63,879 and $69,651 for the quarters ended March 31, 2026 and 2025, respectively. See Note 10 for further discussion.
[3] Includes interest income from investment in MSR financing receivables of a consolidated VIE of $1,395 for the quarter ended March 31, 2026. The Company did not hold any interests in MSR financing receivables for the quarter ended March 31, 2025. See Note 10 for further discussion.
[4] Includes a related-party, non-cash imputed compensation expense from the Palisades Acquisition of $341 during both quarters ended March 31, 2026 and 2025.

Source

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